XII-Commerce Study Material: Principles of Management, Financial Markets, and Corporate Governance

Comprehensive vocabulary flashcards covering management principles, financial and capital markets, stock exchange mechanisms, consumer protection, mercantile legislation, and company secretarial procedures.

Management

A goal-oriented art of getting things done with and through others. Defined by Peter F. Drucker as a multipurpose organ that manages a business, manages managers, and manages workers and work.

Span of Management

The number of subordinates who can be managed efficiently by a superior, influencing the complexities of the manager's job and shaping the configuration of the organization.

Authority

The right of a superior to give orders to his subordinates, contrasted with responsibility, which denotes the obligation for performance.

Planning

The primary function of management that involves deciding in advance what to do before taking action, associated with proverbs like 'Think Before you Act' or 'Look Before you Leap'.

Management by Exception (MBE)

A style of business management focusing on identifying and handling cases that deviate significantly from established norms, leaving routine matters to subordinates.

Key Result Areas (KRA)

Priority operational areas fixed on the basis of organizational objective premises, such as profitability, market standing, and innovation.

Spot Market (Cash Market)

A financial or commodity market where the delivery of the instrument or good and the payment of cash occurs immediately, completing settlement on the spot.

Debt Market

The financial market dedicated to trading in debt instruments such as Government Bonds or Securities and Corporate Debentures.

Factoring

An arrangement whereby a financial institution provides accommodation based on the assignment or sale of account receivables, collecting book debts on behalf of clients.

Mutual Funds

Financial institutions that provide facilities for channeling the savings of small investors into productive avenues of investment.

Over the Counter Exchange of India (OTCEI)

A securities exchange set up by a premier financial institution to allow nationwide trading across electronic counters, addressing specific challenges of investors and medium-sized companies.

National Stock Exchange of India Limited (NSEI)

A model stock exchange established in $1992$ designed to provide a nationwide, electronic screen-based, 'scripless' and 'floorless' trading system.

Certificate of Deposits (CD)

Short-term deposit instruments issued by banks and financial institutions to raise large sums of money in the money market.

Switching

The purchase of one security against the sale of another security carried out by the Reserve Bank of India (RBI) in the secondary market as part of open market operations.

Cut off Rate

The discount rate on $364$-day Treasury Bills that is quoted during auctions by participants and accepted by the authorities.

Remisier

An agent who acts on behalf of a stock exchange member, obtaining business for his principal in exchange for a commission.

Bull (Tejiwala)

An optimistic speculator who buys securities in anticipation of a future price rise, intending to sell them at higher prices later.

Bear (Mandiwala)

A pessimistic speculator who expects securities prices to fall in the future and sells at present to buy them back later at lower prices.

Stag

A cautious speculator, known as a premium hunter, who applies for shares in newly issuing companies with the expectation of selling allotted shares at a premium.

Lame Duck

A bear speculator who struggles to fulfill delivery commitments when securities prices rise contrary to expectations.

Dematerialization

The process by which physical share certificates are taken back by the company or registrar and destroyed, crediting an equivalent number in electronic form to the investor's Depository Participant account.

Poaching (Raiding)

A recruitment approach where an organization hires experienced employees from competing companies by offering superior financial and non-financial packages instead of training their own staff.

Unsolicited Applicants

Job seekers who voluntarily submit employment applications for vacancies that have not yet been formally advertised or notified by the organization.

Placement

The process of assigning a specific, suitable job role to a selected candidate, realizing the principle of placing the right person on the right job.

Stress Interview

An interview designed to evaluate a candidate's temperament and emotional balance by intentionally exposing them to irritating or stressful scenarios.

Achievement Test (Proficiency Test)

A selection examination that assesses a candidate's current mastery, acquired skill levels, and depth of knowledge in a specific subject area.

Vestibule Training

An off-the-job training method where employees practice on equipment in an artificially created replica of the actual work environment to avoid equipment damage or workflow disruption.

Mentoring

A one-to-one training process where an experienced senior professional shares accumulated knowledge, expertise, and guidance with an employee.

Marketing Mix

A set of four controllable variables propounded by Jerome McCarthy—product, price, place, and promotion—combined by a firm to satisfy consumer wants and earn profits.

Grading

The process of classifying standardized products into clearly defined categories based on predetermined quality or size standards.

Ambush Marketing

A promotional strategy where a company covertly connects its brand or product with an event in the consumer's mind without paying sponsorship fees.

Viral Marketing

A marketing technique where promotional messages are rapidly distributed from person to person through user sharing, spreading swiftly like a virus.

Niche Marketing

A strategy focusing marketing efforts entirely toward one well-defined target segment requiring specialized offerings.

Caveat Emptor

A Latin legal doctrine meaning 'let the buyer beware,' which cautions buyers that sellers are not liable if goods fail to fulfill expectations.

Caveat Venditor

A modern legal doctrine meaning 'let the seller beware,' imposing an implied warranty of merchantability and holding sellers accountable for the integrity of goods.

District Forum

A quasi-judicial consumer redressal body established by the State Government at the district level to entertain claims valued up to $\text{Rs. } 20\text{ lakhs}$.

State Commission

A state-level consumer council headed by a High Court Judge that entertains consumer complaints valued above $\text{Rs. } 20\text{ lakhs}$ and below $\text{Rs. } 1\text{ crore}$.

National Commission

An apex quasi-judicial consumer tribunal established under COPRA $1986$, headed by a Supreme Court Judge to entertain consumer claims exceeding $\text{Rs. } 1\text{ crore}$.

Corporate Governance

A comprehensive framework of policies, rules, and procedures governing corporate administration and strategic objective achievement.

VUCA

An acronym representing business environmental conditions characterized by Volatility, Uncertainty, Complexity, and Ambiguity.

Condition

A stipulation essential to the main purpose of a contract of sale; its violation repudiates and cancels the contract.

Warranty

A collateral stipulation subsidiary to the primary purpose of a contract of sale; its breach entitles the buyer only to damages, not contract cancellation.

Allonge

An additional slip of paper attached to a negotiable instrument to provide space for further endorsements when the original document is full.

Intrapreneur

An internal corporate innovator who operates within an existing enterprise, using company-mobilized capital to develop innovative concepts without assuming personal enterprise ownership risk.

Fabian Entrepreneur

A traditional, cautious entrepreneur who resists change and adapts to innovations only when non-adaptation poses a definitive threat of business collapse.

Drone Entrepreneur

An entrepreneur who strictly rejects modern methods or organizational changes, persisting exclusively with conventional practices despite incurring losses.

Bonus Shares

Shares distributed to existing equity shareholders on a pro-rata basis without cash consideration, financed by capitalizing company reserves and surpluses.

Right Shares

Preemptive shares offered on a pro-rata basis to existing equity shareholders through an official letter of offer prior to general public issue.

Key Managerial Personnel (KMP)

Core executive officers under Section $2(51)$ of the Companies Act $2013$, comprising the CEO, Managing Director, Company Secretary, Whole-time Director, and CFO.

Shadow Director

An individual who holds no formal appointment on the Board of Directors but exercises effective control, with the directors being accustomed to act in accordance with their directions.

Statutory Meeting

The mandatory first general meeting of a public company held within an interval of not less than $1\text{ month}$ and not more than $6\text{ months}$ from the commencement of business.

Special Resolution

A formal company resolution requiring a minimum $75\%$ voting majority, where affirmative votes cast must be at least three times the negative votes.