Complete management note

Redwanul islam…….. APEE, RU. Page 1 of 14
Q1: What is Industry ?
Economic activities associated with the procurement (আহরণ) or extraction
(নিষ্কাশি) of raw materials and converting them into finished products which reach
the final customer is known as an industry.
Q2: Explain Classification / Types of Industries.[2014]
There are various types of industries. These are mentioned as follows:
1. Primary Industry:
Primary industry is concerned with production(উৎপাদন সঙ্গে সংশ্লিষ্ট) of goods with
the help of nature. It is a nature-oriented industry, which requires very little
human effort. E.g. Agriculture, farming, forestry, fishing, horticulture, etc.
2. Genetic Industry:
Genetic industries are engaged(শ্লনঙ্গ াশ্লিত) in re-production and multiplication
(সংখ্যাবৃশ্লি)of certain spices of plants and animals with the object of sale. E.g.
plant nurseries, cattle rearing, poultry, cattle breeding, etc.
3. Extractive Industry (নিষ্কাশি নশল্প):
Extractive industry is concerned with extraction (নিষ্কাশি এর সাথে জড়িত) or
drawing (উত্তোলন ) out goods from the soil, air or water. E.g. mining industry, oil
industry, etc.
4. Manufacturing Industry:
Manufacturing industries are engaged in transforming raw material into finished
product with the help of machines and manpower. E.g. textiles, chemicals, sugar
industry, paper industry, etc.
5. Construction Industry:
Construction industries take up (গ্রহণ করা) the work of construction of buildings,
bridges, roads, dams, canals, etc.
6. Service Industry:
In modern times service sector plays an important role in the development of the
nation and therefore it is named as service industry. E.g. Hotel industry, tourism
industry, entertainment industry, etc.

Q3: What is commerce?[2015]
Commerce is a branch of business. It is concerned with the exchange of goods
and services. Commerce is the activity of buying and selling of goods and
services, especially on a large scale.
Q4: What are the functions and importance of commerce?
Or, State the hindrances removed by commerce.[2015]
The main function of commerce is to remove the following hindrances:
1. Hindrance(অন্তরায়) of person:
This hindrance refers to the lack of contact between producers and consumers.
The producer is faced with the problem of finding the buyers who need the goods
and who are able and willing to buy such goods.
The consumer does not know the source of supply of goods.Commerce removes
this hindrance by means of trade.
2. Hindrance of place:
A major problem faced by producers is to send their goods to distant places
without loss through theft, pilferage (শ্ল িঁ চঙ্গক চু শ্লর), damage, etc. Commerce solves this
problem by means of transport, packing and insurance.
3. Hindrance of time:
In modern industry goods are produced on a large-scale in anticipation (প্রত্যাশা
অনুযায়ী) of demand. Therefore, it becomes necessary to store the goods until they
are sold. This problem is solved by warehousing or storage (গুদামজাত্ করা ও স্টাররজ).
4. Hindrance of exchange:
Buying and selling of goods between persons living in different places requires a
common medium of payment. Money serves as common medium of payment.
Banks help to remove this obstacle in the process of exchange by making and
collecting payments on behalf of their clients.
5. Hindrance of Risk:
During transportation and storage, there are several possibilities of loss or damage
of goods. There also exist risks of theft, burglary deterioration(চুররর পত্ন), fire, etc.
Insurance helps to remove the hindrance of risks by compensating businessmen
for financial loss. It plays a vital role in the development of trade and commerce.

Q5: What is Genetic Industry (স্জরনটিক রশল্প)?[2015]
Genetic industries are those industries which are engaged in re-production and
multiplication of species of plants and animals with the sole objective of sale.
This industries are engaged in activities such as animal breeding, cattle breeding
etc. Animal husbandry is one type of Genetic Industry.
Q6: Difference between commerce & industry. [2014]
BASIS FOR
COMPARISON
INDUSTRY COMMERCE
Meaning Industry is an economic
activity, concerned with the
procurement and processing
of raw materials into
finished products, that
reaches the customer.
Commerce is a business
activity, wherein exchange
for goods and services for
value, is done on a large
scale.
Capital Required High Comparatively low
Involves Conversion of resources into
useful goods.
Activities essential for
facilitating the buying and
selling of goods.
Represent Production part of business
activities.
Distribution part of
business activities.
Risk High Comparatively low
Q7: What is a sole proprietorship (একক মারিকানা)?
A sole proprietorship is a form of business organization that is owned by one
person. The owner is referred to as a sole proprietor.
Q8: What are the Characteristics of sole proprietorship?
The main features of sole proprietorship form of business can be listed as follows:
1) One Man Ownership.
2) No Separate Business Entity.
3) No Separation between Ownership and Management.
4) Unlimited Liability.

5) All Profits or Losses to the Proprietor.
6) One-man control.
7) Free from govt. regulations.
Q9: What are the Advantages & Disadvantages of Sole proprietorship ?
Advantages of a Sole Proprietorship is given below:
1. A sole proprietor has complete control and decision-making power over
the business.
2. Sale or transfer can take place at the discretion (রিচক্ষণত্া) of the sole
proprietor.
3. No corporate tax payments.
4. Minimal legal (সংরক্ষপ্ত আইনগত্) costs to forming a sole proprietorship.
5. Few formal business requirements.
Disadvantages of a Sole Proprietorship is given below:
1. Unlimited liability: This is the major drawback (অসুরিধা) of a sole
proprietorship.
2. Limited financial resources: A sole proprietorship can provide only limited
finance from his sources.
3. Limited managerial ability: There is always limitation on the managerial
ability of one person. He cannot handle the various departments of the
business with much efficiency as the experts can.
4. Limited opportunities of employees
5. Monotony and hard work.
Q10: What is a Business Partnership? [CT]
A Partnership business is a legal relationship formed by the agreement between
two or more individuals to carry on a business as co-owners.
Q11: What Is the Meaning of "Partnership Deed (অংশ়ীদাররত্ব দরিি) "?
A partnership deed also known as a partnership agreement, is a document that
outlines in detail the rights and responsibilities of all parties to a business
operation. It has the force of law and is designed to guide the partners in the
conduct of the business.

Q12: What are the essential contents of a Partnership Deed ?
A partnership deed generally contains the following important deed:
i. Names and addresses of the firm and each partners
ii. Capital contribution by the each partner
iii. Profit sharing ratio among the partners
iv. Interest on capital, if any to be paid to partner
v. Drawings and interest on drawings, whether permissible or not
vi. Loans and advances by partners to the firm
vii. Nature of business to be carried on and the locally where business is to set
up.
Q13. Write down The main Features of Partnership.
The essential features and characteristics of a partnership are:
1. Agreement: The partnership arises out of an agreement between two or more
persons.
2. Profit sharing: There should be an agreement among the partners to share the
profits of the business.
3. Lawful business: The business to be carried on by a partnership must always
be lawful.
4. Membership: There must be at least two persons to form a partnership. The
maximum number is 20. But in case of banking business the maximum is 10
members.
5. Unlimited liability: The liability of every partner is unlimited, joint and several.
6. Principal-agent relationship: Every partner is an agent of the firm. He can act
on behalf of the firm.
7. Non-transferability of shares: A partner cannot transfer his share of interest to
others without the consent (সম্মরত্) of the other partners.

Q14: Discuss the Advantages and Disadvantages of Partnership
Business.[CT]
Advantages of Partnership Firm:
1.Easy Formation : Registration is not compulsory in the case of Partnership
firm. It can be formed without any legal formality and expenses.
2.Larger Resources : Due the more number of members the partnership firm has
larger resources for the business operations as compared to sole proprietorship.
3.Flexibility in operation: Due to the limited number of partners there is
flexibility in the operations of business or change any operations any time by
mutual consent.
4.Better Management : Business of a partnership firm is very well managed by
all the partners as they take interest in the business.
5.Sharing of Risk : In partnership every partner bears the risks individually as it
is easier compared to sole proprietorship.
Disadvantages of partnership Firm:
1.Instability : A partnership firm does not exist for an indefinite period of time.
2.Unlimited Liability : Liability of every partner in a partnership firm is
unlimited as any of the partners may be called upon (প্ররত্ আহ্বান জানান)to pay all the
debts even from its personal properties.
3.Lack of Harmony : According partnership agreement every partner has equal
rights. Some situations might occur in which one or the other partner will not
agree on the same thing.
4.Limited Capital : Due to the restriction on the maximum number of members,
a limited amount of capital can be raised.
5.No legal status: A partnership firm does not have a legal status like a Joint
Stock Company.
Q15: What is Business?[2016]
Business is an economic activity, which is related with continuous and regular
production and distribution of goods and services for satisfying human wants.
Lewis Henry defines business as, "Human activity directed towards producing or
acquiring wealth through buying and selling of goods."

Q16: Discuss the social responsibility of business?
Social responsibility is an ethical or ideological (আদশশগত্) theory that an entity
whether it is a government, corporation, organization or individual has a
responsibility to society. Social responsibility is a very vast term and means many
things.
Society and Business are inter-dependent. There is a clear conviction (দৃঢ় রিশ্বাস)
within sections of the public that business has an obligation towards the society.
Better environment for business would be conducive (সহাযক) for future success of
the Organization. Socially responsible behavior creates a positive public image
for Business. Social involvement of business would foster (উত্সারহত্ করা) a
harmonious and healthy relationship between society and business to the mutual
benefit of both.
The existence of a business totally depends on the society. it becomes the
responsibility of business to give something back to the society.
Q17: Discuss the different Types of business structures.[2013,2012]
Types of business structures is following below:
Sole Proprietorship: A sole proprietorship is a simple type of business structure
that is owned and operated by the same person. Sole proprietorships are the most
common form of business structure. This type of business is simple to form and
operate and flexibility of management.
General Partnership: A General Partnership is composed of 2 or more persons
(usually not a married couple) who agree to contribute money, labor, or skill to a
business. Each partner shares the profits, losses, and management of the business.
Limited Partnership: A Limited Partnership is composed of one or more general
partners and one or more limited partners. The general partners manage the
business and share fully in its profits and losses.
Limited Liability Partnership (LLP): A Limited Liability Partnership (LLP) is
similar to a General Partnership except that normally a partner doesn’t have
personal liability for the negligence of another partner. This business structure is
used most by professionals, such as accountants and lawyers.
Limited Liability Limited Partnership (LLLP): A Limited Liability Limited
Partnership is a Limited Partnership that chooses to become an LLLP by
including a statement to that effect in its certificate of limited partnership.

Q18: The main objective of the business is to earn profit. Why?[2012]
Profit making should be the primary objective of the business because of the
following reasons:
Profit is regarded as the main source of growth for business because it provides
finance for expansion (সম্প্রসারণ) and diversification (বিরচত্রত্া). The business can be
continued when there is a fair profit.
Profit is essential for the survival of the business because the existence of business
can’t be seen in the absence of profit.
Profit helps in fulfilling (পররপূণ শ করার) various social goals because a business is
expected to serve various sections of the society.
Profit is regarded as a good measure of efficiency of the organization.
Due to this reason, it has been rightly observed that profit is the acid test of the
business unit. It is regarded as an index of business success.
Q19:What are the Inter-relationship among Industry, Trade & Commerce?
[2013,2012]
Business is divided into two categories: industry and commerce. Commerce is
again sub-divided into trade and aids to trade. Practically all of them are closely
related to each other.
Industry and commerce are closely related to each other. Industry cannot exist
without commerce and commerce cannot exist without industry. Because every
producer has to find his market for his products to sell. But the producer has no
direct connection with the buyers or consumers. Hence, industry needs
commerce.
BUSINESS
INDUSTRY COMMERCE
TARDE AIDS TO TRADE
TRADE

Commerce is concerned with the sale, transfer or exchange of goods and services.
Hence commerce needs industry for the production of goods and services.
It includes all those activities that are involved in buying, selling, transporting the
goods.
Trade includes sale, transfer or exchange of goods. If there were no trade, the
producers would have to find customers for their products. Therefore without
trade there would be little need for commerce.
In conclusion, we can say that industry, trade and commerce are inter-related with
each other. Industry is concerned with production of goods and services and
commerce arranges its sales; but the actual operation of sales is in the hands of
trade. So they cannot work independently.
Q20: Difference between trade & commerce.
BASIS FOR
COMPARISON
TRADE COMMERCE
Meaning Trade means the exchange of
goods and services between
two or more parties in
consideration of money .
Commerce is a business
activity, wherein
exchange for goods and
services for value, is
done on a large scale.
Type of Activity Social Activity Business activity
Frequency of
Transactions
Isolated Regular
Link Between buyer and seller Between producer and
consumer
Capital requirement More Less
Q21: What is company?[CT]
A company is an association (সরমরত্) of persons who invests money towards a
common stock, for carrying on a business and shares the profits & losses of the
business.

Q22: What are the chief Features of a company.[CT]
The following are the major features of a company:
1) It is an artificial person.
2) It has a separate legal entity.
3) It has limited liability.
4) It has perpetual succession (রচরস্থায়ী উত্তরারধকার).
5) It has a common seal.
6) It can possess (স্ াগদখি করা) property in its own name.
Q23: Difference Between Partnership Firm and Company.[CT]
BASIS FOR
COMPARISON
PARTNERSHIP FIRM COMPANY
Meaning When two or more persons
agree to carry on a business
and share the profits & losses
mutually, it is known as a
Partnership firm.
A company is an
association of persons
who invests money
towards a common stock,
for carrying on a business
and shares the profits &
losses of the business.
How it is created Partnership firm is created by
mutual agreement between
the partners.
The company is created
by incorporation under the
Companies Act.
Registration Voluntary Obligatory
Minimum number of
persons
Two Two in case of private
company and Seven in
case of public company.
Maximum number of
persons
100 partners 50 in case of a private
company and a public
company can have
unlimited number of
members.
Liability Unlimited Limited
Management of the
concern
Partners itself. Directors
Law A partnership firm is
regulated by the Partnership
Act, 1932.
A company is regulated
and controlled by the
Companies Act.

Q24: Discuss in brief the advantages & disadvantages of company.
Advantages of a company include that:
1) liability for shareholders (অংশ়ীদার) is limited
2) it's easy to transfer ownership by selling shares to another party
3) shareholders (often family members) can be employed by the company
4) the company can trade anywhere
5) taxation rates can be more favourable
6) you'll have access to a wider capital and skills base.
Disadvantages of a company include that:
1) the company can be expensive to establish, maintain and wind up (গুটারনা)
2) the reporting requirements can be complex
3) financial affairs are public
4) if directors fail to meet their legal obligations (আইনগত্ িাধ্যিাধকত্া), they may
be held personally liable for the company's debts
5) profits distributed to shareholders are taxable.
Q25:Difference Between Pvt Ltd and Public Ltd Company.[CT]
BASIS FOR
COMPARISON
PUBLIC COMPANY PRIVATE COMPANY
Meaning The public company
refers to a company that
is listed on a recognised
stock exchange and
traded publicly.
A Private company is
one that is not listed on
a stock exchange and is
held privately by the
members.
members There must be at least
seven members to start
a public company.
the private company can
be started with
minimum two members.
directors A public company
should have at least
three directors .
Private Ltd. company
can have a minimum of
Two directors.
Transfer of shares the shareholders of a
public company can
freely transfer their
shares.
The transferability of
shares of a Pvt. Ltd.
company is completely
restricted.
Public subscription Allowed Not allowed

Q26: Discuss the Advantages of a Private Company over a Public Company.
The advantages of a private company over a public company is following below:
1. A private company is simpler to form than a public company. It needs two
directors while a public company needs seven.
2. It can start business immediately after incorporation (সংস্থা), no certificate to
commence (আরম্ভ) is required but in a public company it is necessary to have a
certificate to commence business (ব্যিসা শুরু).
3. As no outsiders are its shareholders it is not required, unlike a public company,
to hold a statutory meeting (সংরিরধিদ্ধ রমটিং).
4. Restriction on invitation to public, A private company cannot invite the public
to purchase its shares or debentures (ঋণস্ব়ীকারপত্র). A public company can do it.
5. A private company need not hold the Statutory Meeting or file the Statutory
Report. A public company can do it.
Q27: What is management?[2015,2013,2012]
Kreitner’s definition of management: ‘Management is a problem solving process
of effectively achieving (অজশরনর) organizational objectives through the efficient
use of scarce (দুিশ ) resources in a changing environment.’
Q28: Write down the main Functions of Management.[2013,2012]
In competitive days management become a typical job, a manager have to
perform different types of managerial job to achieve the goals of the organization.
The main branches of function of management are as follows:
1. Planning
2. Organizing
3. Leading : Leading involves directing, influencing and motivating employees
to perform essential tasks.
4. Staffing: Staffing is the process of recruiting (রনরযারগর) and selecting the right
person for the right job at the right time in the right place.
5. Controlling

Q29: Management is both the science and art, explain it why?[2014]
Management as a science:
Science refers to an organized and systematic body of knowledge acquired by
mankind though observation, experimentation and also based on some universal
principles, concepts, and theories. With the help of concept of science it can safely
be concluded that management is also a science because it is based upon certain
principle and concerned as a systematized body of knowledge, observation, test
and experiment is a science, however it is not exact as physics, chemistry,
biology, etc.
Since, it is concerned with human & human behavior; it can be called as social
science.
Management as an art:
Art is concerned with particle knowledge and personal skill for doing out the
desired results. In management, a manager should have practical knowledge &
skill. Otherwise his performance will be adversely affected.
Management is a way of doing a specific action while doing the function of an
art is to achieve the success in a given action.
According to George R. Terry, "Art is bringing about of a desired result through
application of skill." Thus, art has 5 essential features.
i. Practical Knowledge
ii. Personal Skill
iii. Concrete Result
iv. Constructive Skill
v. Improvement through practice
These 5 functions of art also belong to the management. Therefore, it can be
concluded that manager is an artist and management is bound to be an art.
Q30: State the figure head role of a manager. [2015]
In management, a manager should have practical knowledge & skill. Otherwise
his performance will be adversely affected. When a manager uses his
management skill then he must have practical knowledge for solving managerial
problem. A manager also has power to face the problem to find out the result,
which is only possible when he/she has constructive skills.

To improve the managerial skill, managerial work should be done on regular basis
because regularity and practice make the work effective. So, we can say that
manager is an artist since he/she posses the skill of getting the work done through
and with the people.
Q31: State the nature of management?[2014]
The nature of management can be described as follows:
Multidisciplinary (িহুমুখ়ী): Management is multidisciplinary because it includes
knowledge/information from various disciplines- economics, statistics, maths,
psychology, sociology etc.
Management is dynamic: Management has framed (কাঠাম ো গডা) certain
principles, which are flexible in nature and change with the changes in the
environment.
Relative, Not Absolute Principles: Management principles are relative, not
absolute, and they should be applied according to the need of the organization. A
particular management principle has different strengths in different conditions.
Management as Profession: Management has been regarded as a profession. It
has not achieved the status of a profession.
Management is Universal: Management is a universal phenomenon.
Q32: Discuss the Managerial Functions.[2016,2015]
Henri Fayol was the first to describe the four managerial functions when he was
the CEO of a large mining company. Fayol noted managers at all levels, must
perform each of the functions of:
Planning: Planning is the process used by managers to identify and select
appropriate goals and courses of action for an organization.
Organizing: In organizing, managers create the structure of working
relationships between organizational members that best allows them to work
together and achieve goals.
Leading: In leading, managers determine direction, state a clear vision for
employees to follow, and help employees understand the role they play in
attaining goals.
Controlling: In controlling, managers evaluate how well the organization is
achieving its goals and takes corrective action to improve performance.

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