Category: Inter 1st Year

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 6th Lesson Rights and Responsibilities Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 6th Lesson Rights and Responsibilities

Long Answer Questions

Question 1.
Define Rights. Describe the Civil and Political Rights.
Answer:
Introduction:
Rights are the essential conditions for the development of the personality of individuals. They are upheld by the laws of the state. They are regarded as a power or privilege which the law invests in a person. They are treated as the sum total of the opportunities meant for enhancing one’s personality. Individuals can not achieve progress in the absence of the rights.

Definitions of Rights :
Political scientists have defined the term ‘Right’ in several ways. Some of their definitions are explained below :

1. Earnest Barker:
“Rights are the external conditions necessary for the development of the capacities of the personality of the individual.”

2. Beni Prasad:
“Rights are nothing more and nothing less than those social conditions which are necessary for the development of personality of individuals.”

3. Bosanquet:
“A right is a claim recognised by the society and enforced by the state.”

4. T.H. Green :
“Rights are those powers claimed and recognized as contributory to the common good.”

5. H.J. Laski :
“Rights are those conditions of social life without which no man can seek in general to be himself at his best.”

Civil Rights :
Civil rights aim at providing basic conditions for individuals to lead a happy and dignified social life. These rights are considered vital for a civilized society. Social life becomes impossible in their absence.

Individuals in a civilized society enjoy the following Civil rights. These are

1) Right to life :
This is the most important civil right. T.H. Green considered it as the most fundamental civil right. This right provides security to the individual’s life. Individuals can not lead their lives in the absence of this right. This right is based on the premise that the life of an individual is valuable not only to himself, but also to the society and the state as a whole. Hence it prescribes at large the state to extend protection to the life of individuals. However, it empowers the state to impose some reasonable restrictions upon the individuals. The state can insist any person to sacrifice his life for the sake of the nation. This right also includes the right of self-defence.

2) Right to liberty:
This right enables individuals to have freedom in various walks of life. It makes their lives worth living. It enables them to develop their personality in various spheres. It includes various freedoms such as freedom of movement, speech, expression, thought, residence etc.

3) Right to equality:
This right implies that individuals are equal before law. It forbids discrimination on the basis of one’s caste, colour, creed, education, region, race, religion, wealth etc. It enables equal treatment to all persons. It provides scope for uniform application of laws. It enables equal opportunities to all persons in social, economic and political fields.

4) Right to property:
This right enables every individual to acquire, enjoy, donate or inherit the property. It is essential to the individual for securing higher standards of living. This right is crucial for the growth of individual’s personality.

5) Right to family :
Family is a fundamental social institution. This right enables individuals to maintain family relations in society. Consequently, individuals will have freedom to marry persons of their choice. They will have choice to procreate children and rear their offspring. However, the state can impose certain restrictions upon this right keeping in view the national interests. For example, until recent times China imposed severe restrictions against their citizens in the size of their families. Recently it has made some amendments in this regard.

6) Right to religion :
This right allows the individuals to have freedom to practice, propagate and profess any religion of their choice. Every individual is at liberty to preach or practice the religious doctrines as they like. The secular states provide religious freedoms to their citizens.

7) Right to contract :
This right provides freedom to every individual to enter into contract or legal arrangements with others regarding his life, property and work. It regulates the two parties in carrying their contracts in letter and spirit. The state recognizes only those contracts which are helpful to the common well being of the people.

8) Right to education :
In the modem era education is regarded as vital to every individual. Uneducated and innocent individuals cannot play an active role in public affairs. Similarly, illiterate persons cannot fully make use of their abilities. Education and literacy enable the people to understand the problems of the society and policies of the government. This right guarantees a minimum level of education to every citizen in democratic states.

9) Right to form associations and unions :
This right enables individuals to form associations and unions for realising some specific objectives. Individuals may join, continue or keep away from the membership of associations according to their will and pleasure. The State is empowered to impose restrictions against those associations which ignore the welfare of the nation.

10) Right to constitutional remedies :
Civil rights are meaningless in the absence of this right. This right is essential to every individual for safeguarding his rights. This right empowers a person (who was deprived of his liberty due to the intervention or manhandling by others including the government) to seek justice and relief from the concerned judicial organizations. The affected individuals are authorised to approach an appropriate court for correcting such imbalance. In this regard the higher judicial organizations issue several writs and effectively check such tendencies. These writs are in the form of Habeas Corpus, Mandamus, Prohibition, Quo-warranto and Certiorari etc.

Political Rights :
Political rights are those rights which enable the individuals to participate in the political affairs of the state.

The following are the important political rights :
1) Right to vote :
Right to vote is the most important political right enjoyed by the citizens in modem democratic states. It serves as a powerful weapon for adult citizens in choosing their representatives to various legislative bodies. It makes them as real sovereign. All the citizens are entitled to this right without any discrimination based on creed, colour, language, race, region, religion, sex etc. However, persons such as aliens and minors are deprived of this right.

2) Right to contest in elections :
This right empowers the citizens to contest as candidates to various legislative bodies in the state. Especially this right enables those, who have political sagacity, enthusiasm and dynamic nature, to actively participate in the political dynamics of the state. As a result, it increases political enthusiasm among the citizens. Such an element is considered as a base of democratic polity.

3) Right to hold public offices :
This right provides opportunities to the citizens to hold various public offices for a definite period. It gives no scope for exclusion of citizens or conferring special privileges to some at the cost of others. This helps the citizens to exercise authority in a dignified manner.

4) Right to petition :
This right enables the citizens to forward petitions denoting their requirements or grievances. It is considered as a vital political right in the modem state. The citizens could be able to find solutions to their immediate or long pending issues by bringing them to the notice of the government through this right. It also helps the public authorities to know the grievances of the people and attend to them properly and promptly.

5) Right to criticism:
This right gives opportunity to the citizens to criticize the various public policies and programmes. It also enables them to highlight the omissions and commissions of the leaders, and administrative personnel at various levels. It also gives scope for the citizens to render positive and constructive criticism about the on goings in the government from time to time. Ultimately it keeps the administrative authorities and policy makers to be vigilant in discharging their obligations.

Question 2.
Identify the safeguards of Rights.
Answer:
Introduction: Rights are the essential conditions for the development of the personality of individuals. They are upheld by the laws of the state. Individuals cannot achieve progress in the absence of the Rights.

Definition:
1) T.H. Green :
“Rights are those powers claimed and recognized as contributory to the common good.”

2) H.J. Laski:
“Rights are those conditions of social life without which no man can seek in general to be himself at his best.”

Safeguards of Rights:
Individuals enjoy their rights only when they were fully protected or safeguarded by the State. In this regard, the following elements act as the safeguards of the rights.

1) Democratic Rule :
Democratic rule safeguards the rights of the people to a great extent. People can enjoy their rights perfectly in democratic states only. This system makes constitutional and legal provisions for safeguarding the right of the people.

2) Written and Rigid Constitution:
A written constitution clearly defines the powers and functions of the government. It also explains about the various limitations of governmental authority. Besides, a rigid constitution will guarantee the rights of the people by making it difficult for the rulers and legislators to make amendments on flimsy grounds.

3) Constitutional Incorporation :
Incorporation of fundamental rights in the constitution will prevent the encroachment of individual rights by the government. Such an arrangement protects the rights of the individuals to a great extent.

4) Separation of Powers:
The powers of the government should be separated among the three organs of the government. Such as measure would act as a check against other organ. Ultimately, it serves as a safeguard of individual liberty.

5) Decentralisation of Powers :
Individuals enjoy their rights, when powers are decentralised among the governmental institutions. This involves allocation of powers at various levels – national, provisional, local either on functional or territorial basis.

6) Rule of Law:
Rule of law implies equality before law. It also denotes equal application of laws to the citizens. It gives no scope for discrimination between citizens on the grounds of region, religion, caste, colour, community etc.

7) Independent and Impartial Judiciary :
Independent and impartial judiciary is another safeguard of rights. Judges in higher judicial bodies will deliver judgement with impartial and independent outlook. In the process of delivering justice, they issue certain writs for immediate protection of the rights.

8) Indepedent Press:
Independent and honest press is another essential safeguard of rights of individuals. Such agency will be able to disseminate news and views impartially and without fear or favour to anybody. In this regard the state should not try to threaten and silence the press. Then only individuals enjoy their rights to the maximum extent.

9) Social and Economic Equalities:
Social and economic equalities are necessary for enjoying one’s rights. People will be able to utilize their rights properly and positively when there are social and economic equalities in the state. These equalities include absence of casteism, communalism, linguism, wide spread economic inequalities, exploitation etc.

10) Eternal Vigilance:
Eternal vigilance is said to be the most important safeguard of rights of individuals. Individuals must be vigilant and cautious about the policies of the government. They should oppose the despotic tendencies of the government through democratic and constitutional methods. Under no circumstances they should allow the self seeking politicians to acquire power. Besides several other elements like judicial review, recall, strong opposition etc., are considered as the safeguards of rights.

Question 3.
Write an essay on Human Rights.
Answer:
Introduction :
Human rights are the amenities required for the basic existence of human beings. They are available to all persons irrespective of caste, creed, community, religion, region, language etc. The constitutional and ordinary laws in democratic states recognize these rights. The various governments in democratic states will take appropriate steps for providing human rights to their people.

Definitions:

1. “Human Rights are freedom to all irrespective of place, sex, religion language etc.” – United Nations Organization (U.N.O)
2. “The Rights which serve as the protective shield to the individuals whenever the state attempts to interfere with the civil liberties of individuals.” – Ronald Darwin
3. “Human Rights are the new standards of civilization.” – John Dowski

Origin and Growth of Human Rights :

1. The credit for showing interest on human rights and their application to human goes to Greek rulers. They recognised the need and importance of health and strength in the development of human personality.
2. Magna Carta sanctioned by King John of England in 1613 gave life to the Freedoms and independence of the people.
3. The cultural renaissance which shook the various countries in Europe gave strength and succor to the Civil rights movements.
4. John Locke of England popularised the doctrine of natural rights as a part of his proposal for the spread of human rights.
5. Rousseu of Switzerland mentioned several times about the importance of human rights in his concept of social contract. He declared that “Man has bom with free but every where he is in chains.”
6. John Stuart Mill, a prominent British political philosopher, propounded individualism. He stated that every individual is sovereign over himself, his body and mind and all organizations including the state shall not interfere in the affairs of Individuals.
7. The writings of above philosophers profoundly influenced the people across the globe. Several freedom movements such as bloodless revolution in England (1688), American declaration of Independence (1776), French Revolution (1789), Russian Revolution (1917). The Indian declaration of Independence (1947) etc., led to the creation of favourable atmosphere for the enjoyment of human rights.
8. After the establishment of United Nations Organization in 1945, the charter of U.N.O assigned priority and significance to the rights of human beings. The universal declaration of human rights came into force on December 10, 1948. Since then, that day is celebrated as the universal human rights day.

As a result, several covenants like international economic, social and cultural rights, International civil and political rights (1966) came into being. The above covenants made obligatory for the international community to provide favourable conditions for enjoying the various human rights by the people of the world. All the member states of the United Nations gave assurance to have full faith in the human rights. They assured their cooperation for observing and promoting human rights.

Violation of Human Rights:
Today in almost all the countries of the World, everywhere the violation of human rights is happening Poverty, Refugees, Separatist movements etc., are the main causes for violation of human rights.

Protection of Human Rights:
Every nation has the responsibility to protect the human rights. Governments as well as voluntary organizations play a key role in protection of human rights. Amnesty International and Asia watch are playing a prominent role in protecting the human rights.

Question 4.
”Rights and Responsibilities are inter related” Analyse.
Answer:
There is a close relationship between rights and responsibilities. The two are considered as the two sides of a same coin. Rights are incomplete in the absence of responsibilities. Rights imply responsibilities are entitled to rights. The two are inseparable. They are compared to the life and breath of living beings.

Essential conditions of social life :
Many political writers described that rights and responsibilities are the two essential conditions of social life. They are like the shield and soul of the people in the state. Every right will have a corresponding responsibility. Similarly, every responsibility has a corresponding right. The two propositions when put together will help to a great extent the individuals to lead a happy, honourable, harmonious and prosperous life in society. For instance, the right to religion allows every individual to embrace a religion of his choice.

It also enables him to preach, profess and propagate his religious beliefs in society. At the same time that person has a corresponding responsibility in religious matters. He has to avail this right to religion in consonance with the religious beliefs of his fellow citizens. He has the responsibility of not interfering in the religious matters of others under any circumstances.

Social Progress :
It is imperative that everyone should enjoy his rights in such a way that his activities contribute to social progress. He should be aware of his rights and perform his responsibilities in a judicious manner. His actions should always be carried on with the Ultimate aim of promoting social progress.

Another postulate regarding the affinity between rights and responsibilities relates to the order in the State. One should utilize his rights in such a way that his actions should in no way disrupt the peaceful atmosphere in the society. Similarly, he should abide by the rules and regulations imposed and implemented by the government authorities from time to time.

He should always carry as his activities in various spheres of life without affecting the rights of others in society. It implies that he must oblige and respect others in the enjoyment of their rights. He should not interfere in other affairs under any circumstances. This reveals the relationship between rights and responsibilities.

Rights and Responsibilities do not have separate or distinct ends. They are always present together like shadow and man.

One’s right automatically becomes other’s responsibility and vice versa. The two rights and responsibilities – together make a person as a good citizen.

Responsibilities lack meaning in the absence of rights. The reason is that there will be no responsibilities without rights. Similarly, there will be no rights without responsibilities. Hence, rights and responsibilities go hand in hand. Together the two concepts enable the peace, progress and harmony in human society.

Question 5.
Write an essay on National Commission on Human Rights.
Answer:
As per the U.N. Declaration of human rights, the government of India too steps for its implementation. In 1993, it appointed National Human Rights Commission and also passed Human Rights Act in 1998.

Composition:
National human rights commission is a multi-member body. It consists of four members, headed by the former chief justice of the supreme court. There will be a supreme court judge (or former Judge). A high court judge (or former high court chief justice) and two other members who actively participated in the human rights activities. The chairman of scheduled castes, scheduled tribes, minorities commission, chairperson of national women commission act as the ex-officio members of the commission. There will be a General Secretary having the status of Secretary general in the commission.

Appointment:
The chairman as well as members of the commission are appointed by the President of India.

Tenure :
The Chairman and members shall hold their office for five years or until the super annuation age of 70 years which ever is earlier.

Functions :
The following are some of the important Junctions of national human rights commission.

1. The national human rights commission makes enquiry into the cases of violation of human rights by the public authorities.
2. It enquires into the cases of human rights violation as permitted by the judicial organizations.
3. It reviews the various legislative measures in regard to the implementation of human rights.
4. It makes suggestions for averting terrorist operations affecting human rights.
5. It makes research into the matter of human rights.
6. It takes steps for creating awareness of human rights among the people.
7. It gives encouragement to voluntary organizations in the matters of preserving human rights.

Short Answer Questions

Question 1.
What are the features of Rights?
Answer:
Rights are the essential conditions for the development of the personality of individuals. They are upheld by the laws of the state. Individuals cannot achieve progress in the absence of rights.

Definition :
“Rights are those conditions of social life without which no man can seek in general to be himself at his best.”

Features of Rights :
Rights comprise the following features.
1) Rights are possible only in society:
Rights originate in society. They denote human social behaviour. They do not exist outside of the society.

2) Rights are social in nature :
Rights are the claims of individuals. These claims can be established only when the society or the state recognises and maintains them. So they are social in nature.

3) Rights are inherent in nature:
Rights are inherent in the social nature of men. The social contractualists stated that rights are inherent in nature. Their views are accepted to some extent in modem times.

4) Rights are enforced and protected by the state:
Rights are enforced and protected by the state. The various judicial organisations act as the custodians of the rights of individuals. In other words, rights are protected by the courts of law. Individuals enjoy several rights fully only in a democratic state.

5) Rights are not absolute :
Rights are not absolute. Society and state impose some restrictions on the enjoyment of rights by the individuals. These restrictions are meant for maintaining peace and other in the society. Further, rights are meant for contributing social welfare and security.

6) Every right has a corresponding responsibility :
Rights and responsibilities are interdependent. Every right has a corresponding responsibility. It is the responsibility of every individual to see that his neighbours also enjoy the same rights. Rights without responsibilities or responsibilities without rights cannot exist. Both are essential for leading a peaceful social life.

7) Rights are universal :
Rights are universal in nature. They are applicable to all. They are given to all without any discrimination.

8) Rights vary :
Rights vary from time to time according to the needs of the people. They also grow with the changes in time and conditions. Some rights which were not found in the past may exist now. The socio economic, political and cultural conditions will have an influence over the rights.

9) Rights precede the state :
Rights are the products of history. Rights originated in course of time. They were prevalent even before the origin of the state. However, they were guaranteed only after the origin of the state.

10) Rights are meant for common good :
Rights always exist and flourish as long as they are meant for common good. Only those rights which promote common good of the people are recognised by the society and the state. They are essential for leading a prosperous life by the individuals.

Question 2.
Explain Political Rights.
Answer:
Political rights are those rights which enable the individuals to participate in the political affairs of the state.

The following are the important political rights :
1) Right to vote :
Right to vote is the most important political right enjoyed by the citizens in modem democratic states. It serves as a powerful weapon for adult citizens in choosing their representatives to various legislative bodies. It makes them as real sovereign. All the citizens are entitled to this right without any discrimination based on creed, colour, language, race, region, religion, sex etc. However, persons such as aliens and minors are deprived of this right.

2) Right to contest in elections :
This right empowers the citizens to contest as candidates to various legislative bodies in the state. Especially this right enables those, who have political sagacity, enthusiasm and dynamic nature, to actively participate in the political dynamics of the state. As a result, it increases political enthusiasm among the citizens. Such an element is considered as a base of democratic polity.

3) Right to hold public offices :
This right provides opportunities to the citizens to hold various public offices for a definite period. It gives no scope for exclusion of citizens or conferring special privileges to some at the cost of others. This helps the citizens to exercise authority in a dignified manner.

4) Right to petition :
This right enables the citizens to forward petitions denoting their requirements or grievances. It is considered as a vital political right in the modem state. The citizens could be able to find solutions to their immediate or long pending issues by bringing them to the notice of the government through this right. It also helps the public authorities to know the grievances of the people and attend to them properly and promptly.

5) Right to criticism:
This right gives opportunity to the citizens to criticize the various public policies and programmes. It also enables them to highlight the omissions and commissions of the leaders, and administrative personnel at various levels. It also gives scope for the citizens to render positive and constructive criticism about the on goings in the government from time to time. Ultimately it keeps the administrative authorities and policy makers to be vigilant in discharging their obligations.

Question 3.
What are the features of Human Rights?
Answer:
Human rights are the amenities required for the basic existence of human beings. They are available to all persons irrespective of caste, creed, community, religion, region, language etc. The constitutional and ordinary laws in democratic states recognize these rights. The various governments in democratic states will take appropriate steps for providing human rights to their people.

Definition :
“Human rights are freedom to all irrespective of place, sex, religion, language etc.” – U.N.O.

Features of human rights :
There are some common features of human rights. They may be mentioned as follows :

• Human rights are enjoyed by all the people without discrimination.
• These rights are universal.
• They treat all people alike.
• They regard individuals basically as human beings.
• They encompass some fundamental principles of humanity.
• They have no geographical limitations.

Almost all members of the united nations organisation have affirmed to follow the human tights in theory.

Question 4.
Write the objectives and classification of Human Rights.
Answer:
Definition of human rights:
“Human Rights are Freedom to all irrespective of place, sex, religion, language etc. – U.N.O.

Objectives of human rights:
The following are the various objectives of human rights.

1. Provision of independence to the people against discrimination.
2. Freedom from poverty.
3. Freedom for availing the latent abilities of individuals.
4. Freedom from fear.
5. Freedom of protection.
6. Freedom from injustice.
7. Freedom of speech and expression.
8. Freedom of protection.
9. Freedom of association.
10. Freedom for carrying one’s activities on dignified lines.
11. Freedom against exploitation.

The united nations general assembly declared 1995 – 2005 as the International decade of human rights. The ultimate objective of human rights relates to the provision of human rights to all people of the world.

Classification of human rights:
Human rights are broadly classified into two categories (i) Civil and Political Rights (ii) Economic, social and cultural rights. In the first category, civil rights occupy a prominent position. Civil rights include several rights like right to life, liberty and security of individuals, freedom from slavery and torture, equality before law, protection against arbitrary custody etc.

They also assure the individual for a right to fair trial, right to own property, right to marriage etc. Besides they comprise several freedoms like freedom of speech, expression, association, assembly, movement, residence etc. Political rights include right to vote, right to contest as candidates in elections to various offices, right to assume power, right to criticise, right to petition etc.

The second category of human rights include several economic, social and cultural rights. Economic rights include right to work, right to equal payment of salaries to equal work, right to form and join in trade unions, right to adequate standard of living etc. Social rights include right to education, right to health, right to entertainment etc. Respecting the civilization, arts, culture etc., are included in the category of cultural rights.

Question 5.
Discuss the various types of Responsibilities.
Answr:
Responsibility is an obligation of an individual towards other individuals residing in the society. It is regarded as an obligation or duty towards others. The term ’Responsibility’ denotes what one is bound to do. Every individual must abide by certain rules of behaviour in society for his own good and for the good of others. These include some do’s and don’ts. Responsibilities are both positive and negative in nature.

Everyone in society must perform these responsibilities in the larger interests of society and state. Everyone must behave in such a way that promotes common good and social welfare. Responsibilities in turn contribute to the public good. They establish peace and order in society. Responsibilities always preceed rights.

Types of Responsibilities:
Responsibilities are broadly of two types: Moral and Legal.

i) Moral Responsibilities:
Moral responsibilities are those which bound the individuals together on moral grounds. They may not be upheld and supported by the laws of the state. They are based on the moral beliefs of the people. They are sanctioned by the community basing on some customs, traditions and usages. Any violation of moral responsibilities does not lead to punishment. Helping the needy and the sick is regarded as an example of moral responsibilities.

ii) Legal Responsibilities:
Legal Responsibilities are implemented through the courts and with the support of the statutory laws. They carry statutory significance. They are very clear and precise. They are compulsory and coercive in nature. So those who violate these responsibilities will be punished. Obeying the laws of the state, paying taxes, assisting the administrators in the maintenance of law and order etc., are some of the important legal responsibilities of a citizen.

Legal Responsibilities are further classified into positive and negative.

1) Positive Responsibilities:
When a citizen exercises his responsibilities to strengthen the social progress and welfare, they are known as positive responsibilities. Obedience to the laws of the state, defending the country, paying taxes etc., are some of the examples for positive aspects of legal responsibilities. These responsibilities aim at extending co-operation to the government in realizing the objectives of the state.

2) Negative Responsibilities :
When a citizen abstains from doing an activity as prohibited by the laws, it is said to be an example of negative responsibility. Negative respon-sibilities keep the people from not doing certain activities. The government, on behalf of the state, makes several regulations in this regard.

Question 6.
What are the features of Fundamental Rights?
Answer:
Fundamental rights are very essential for the development of the personality of the individuals. They are by and large incorporated in the constitution. Several factors like (i) democracy (ii) individual freedoms (iii) minority interests (iv) greater emphasis on human life, liberty and properties etc., are responsible for the incorporation of fundamental rights in the constitution.

Characteristics of Fundamental Rights :
Fundamental rights have the following characteristics.

• Fundamental Rights are definite, clear and specific.
• They are constitutional and legal in nature.
• They are coercive in nature.
• They are given to the citizens only.
• They vary from state to state.
• They are not absolute.
• They can be amended under certain conditions.

Very Short Answer Questions

Question 1.
Define Rights.
Answer:

1. “Rights are those powers claimed and recognized as contributory to the common good.” – T.H. Green
2. “Rights are those conditions of social life without which no man can seek in general to be himself at his best.” – H.J. Laski

Question 2.
Classify Rights. [A.P. 19, 15; T.S. Mar, 15]
Answer:
Rights are broadly classified into three categories namely, (i) Natural rights (ii) Moral rights and (iii) Legal rights.
Legal Rights intum classified into (i) Civil rights (ii) Political rights and (iii) Economic rights.

Question 3.
What are Civil Rights?
Answer:
Civil rights aim at providing basic conditions for individuals to lead a happy and dignified social life. These rights are considered vital for a civilized society. Social life becomes impossible in their absence. Right to life, Right to liberty, Right to equality etc., are some of the examples of civil rights.

Question 4.
Natural Rights.
Answer:
Natural rights are those rights which are enjoyed by men by birth. Men enjoyed these rights even before the origin of civilised society. The society and the state recognized and respected these rights. John Locke, who propounded the theory of natural rights, claimed that rights are pre-social and pre-political in nature. He cited the right to life, right to liberty and right to property as the basic natural rights. The state cannot deprive men of these rights.

Question 5.
Moral Rights. [A.P. 2018]
Answer:
Moral rights denote claims based on the ‘moral’ code of the community. These rights are morally prescribed to men in the society. The ethical or moral principles in the society act as the basis of the moral rights. Customs, traditions and usages are regarded as the basic source of these rights. Men enjoy these rights in a civil society. These rights are based on the moral conscience of the people. They don’t have legal support. However, they are backed by the society. So violation of these rights is not considered as a crime. Individuals could be punished for their violation. Moral rights are indefinite and vague. But they are popular in nature. The State cannot ignore these rights for a long time.

Question 6.
What are Political Rights?
Answer:
Political rights are those rights which enable the individuals to participate in the political affairs of the state. They help the citizens to manage the political affairs including the organization of the government. They empower the citizens in the political affairs of the state. Citizens can freely participate in the administration of the country. A unique feature of these rights is that they are enjoyed by the citizens only. Aliens do not possess these rights.

Right to vote, right to contest as candidates in elections, right to hold public offices, right to petition, right to criticize the government etc., are some examples of the political rights.

Question 7.
What are the objectives of Human Rights?
Answer:
The following are the various objectives of human rights.

1. Provision of independence to the people against discrimination.
2. Freedom from poverty.
3. Freedom for availing the latent abilities of individuals.
4. Freedom from fear.
5. Freedom of protection.
6. Freedom from injustice.
7. Freedom of speech and expression.
8. Freedom of protection.
9. Freedom of association.
10. Freedom for carrying one’s activities on dignified lines.
11. Freedom against exploitation.

Question 8.
How many types of Human Rights are there? Name them.
Answer:
Human rights are broadly classified into two categories :
(i) Civil and political rights (ii) Economic, social and cultural rights.

Question 9.
Significance of Human Rights.
Answer:
The United Nations reaffirmed that the people and governments of every state must strive for respecting individual freedoms and human rights. The concerned authorities and agencies of the United Nations held several international conferences and invited internationally acclaimed intellectuals, jurists and heads of states for eliciting their valuable opinions on extending human rights to every section of human communities throughout the world.

Question 10.
Classification of Responsibilities.
Answer:
Responsibilities are broadly classified into (i) Moral responsibilities (ii) Legal responsibilities. Legal responsibilities are further classified into (i) Positive responsibilities (ii) Negative responsibilities.

Question 11.
Moral Responsibilities.
Answer:
Moral Responsibilities :
Moral responsibilities are those which bound the individuals together on moral grounds. They may not be upheld and supported by the laws of the state. They are based on the moral beliefs of the people. They are sanctioned by the community basing on some customs, traditions and usages. Any violation of moral responsibilities does not lead to punishment. Helping the needy and the sick is regarded as an example of moral responsibilities.

 

Question 12.
Give some examples of Responsibilities.
Answer:
The following are some examples of Responsibilities :

1. Payment of Taxes
2. Cooperation in law and order matters
3. Honest exercise of Franchise etc.

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 5th Lesson Liberty and Equality Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 5th Lesson Liberty and Equality

Long Answer Questions

Question 1.
Define Liberty and describe various types of Liberty.
Answer:
Introduction :
The concept of Liberty is of great significance in the study of political science. Liberty is an essential condition without which man cannot develop his personality. It became a source of inspiration to the millions of people living all over the world.

Meaning:
The term liberty is derived from the Latin word “LIBER” which means free from restrictions.

Definitions :
Liberty is defined in many ways by different political thinkers. Some of them are cited below :

1. “Liberty means the absence of restraints”. – J.R. Seeley
2. “Liberty is the freedom of an individual to express without any external hindrance to his personality”. – G.D.H. Cole
3. “Liberty means the positive power of doing or enjoying something worth doing or enjoying”. – TH. Green
4. “Liberty is the eager maintenance of that atmosphere in which men have the opportunity to be at their best selves”. – H.J. Laski

Types of Liberty: Liberty is of different types. Some of them may be described in the following :

1. Natural liberty
2. Civil liberty
3. Economic liberty
4. Political liberty
5. National liberty.

1. Natural liberty:
Natural liberty is understood as uncontrolled freedom or absolute freedom. It is believed that natural liberty existed in the pre-social and pre-state human life. According to this concept there were no rules and regulations except the Liberty and Equalitys of nature in the past. All persons were free to do anything according to their will and capacity. But this type of liberty is not possible in civilised society, since liberty is a social condition. True liberty does not inconvenience others. Liberty is not a licence. Natural liberty is equal to anarchy. The weak cannot enjoy liberty without Liberty and Equality. Some writers imagined that this kind of liberty existed before the origin of state.

2. Civil liberty :
Civil liberty is also known as personal liberty. It relates to the individual’s freedom in his life as a member of the social organisation. It is enjoyed by the individuals in the society. Civil liberty is the essential pre-requisite to the existence and survival of human beings. It enables them to lead happy, honourable and civilised life in the state. So it is a must to every one. The state recognises the various freedoms of individuals. In this regard Gettle said thus “Civil liberty is the group of rights recognised and implemented by the state”. The constitution of the America and the India have in corporated civil liberty in the form of fundamental rights. Civil liberty is manifested in several rights. These include A) Right to Life B) Right to Work Q Right to Property D) Right to Religion E) Right to Speech, Expression, Assembly, Movement and Residence etc.

3. Economic liberty :
Economic liberty means the right of everyone to earn his livelihood. Laski described economic liberty as the security and opportunity to find reasonable significance in earning one’s daily bread. Economic liberty ensures everyone freedom from want and feari hunger and starvation, unemployment and insufficiency. Economic liberty denotes freedom from want or insecurity of economic nature. Without economic liberty democracy is meaningless. It will also be secured by adopting the following measures.

1. Provision of minimum wages.
2. Guarantee of the right to work.
3. Protecting the workers from unemployment, sickness and other types of insecurity.
4. Providing adequate leisure.
5. Giving representation to the workers in the management of the industries.

4. Political liberty:
Political liberty facilitates the citizens to take part in the political affairs of the state. Laski regarded political liberty as the power to be active in the affairs of the state. Gilchrist considered that political liberty is synonymous with democracy. Leacock described political liberty as constitutional liberty or liberty to choose one’s own government. Political liberty is confined to the citizens alone.

It is positive in nature. Political liberty provides several rights in political matters. These include (i) right to vote, (ii) right to contest as candidates in elections, (iii) right to hold public office, (iv) right to criticism etc. Laski emphasised that political liberty becomes real when there prevails (i) education (ii) honest and impartial press etc. Political liberty will be realized only in a democratic system.

5. National liberty :
National liberty implies the freedom and independence of the state. It also denotes the sovereignty of the state. Every state enjoys this liberty and remains free from the political domination of other states. This liberty is essential for the progress of nation in all spheres. It was manifested in several countries since ancient period; Many countries made efforts for securing this type of liberty.

The Greeks fought a war of independence against the Turks. Similarly the Indian masses under the leadership of Mahatma Gandhi waged a non-violent struggle to secure national freedom from the British rule. National liberty is veiy valuable. Great leaders like Thomas Jefferson emphasised the significance of national liberty.

Question 2.
What do you mean by Liberty? What are the safeguards of Liberty?
Answer:
Introduction:
The concept of Liberty is of great significance in the study of political science. Liberty is an essential condition without which man cannot develop his personality. It became a source of inspiration to the millions of the people living all over the world.

Meaning:
The term liberty is derived from the Latin word” LIBER” which means free from restrictions.

Definition:

1. “Liberty means the absence of restraints”. – J.R. Seeley
2. “Liberty means the positive power of doing or enjoying something worth doing or enjoying”. – T.H. Green

Safeguards of liberty:
Liberty is the most cherished ideal of human beings. Hence, it must be safeguarded in the larger interest of the society and state. In this context, the following safeguards of liberty are worth mentioning.

1. Democratic rule :
Democratic rule is considered as a heaven to liberty. Liberty flourishes only in a democratic state. The reason is that democratic state extends protection to individual’s liberties through various Liberty and Equalitys. It creates a conducive atmosphere for the individuals to enjoy their liberties freely and impartially. It makes the people to participate in the government process directly or indirectly.

It makes the people to participate in the governmental process directly or indirectly. It makes the government answerable to the people. It allows the people the right to change the government through public opinion or ballot when the government acts improperly.

2. Written and rigid constitution :
A written and rigid constitution is considered the most important safeguard of individual liberty. Such a constitution incorporates the various freedoms of individuals in several provisions. It acts as a custodian of people’s rights and liberties. It demarcates the spheres of governmental activity.

It mentions about the various measures to be taken in case of people’s freedoms are infringed or confiscated by others including governmental authorities. It also imposes restraints on the political parties by not allowing them to amend the constitutional provisions for furthering their partisan interests.

3. Independent judiciary :
An independent and impartial judiciary is another safeguard of individual liberty. The judiciary will uphold the constitution and keeps the government accountable to the people. It prescribes various safeguards for protecting the fundamental rights of citizens. The judges in higher courts will deliver justice to the people on fair, free and impartial manner. Prof. Laski, while recognizing this safeguard, stated that good governance depends upon the effective functioning of judiciary.

4. Rule of Liberty and Equality :
Rule of Liberty and Equality is another safeguard of liberty. It is prevalent in many states like Britan, India, United States etc. Rule of Liberty and Equality safeguards individual liberties in three ways. Firstly, it treats all individuals as equal. Secondly, it makes arrangement for the application and enforcement of uniform Liberty and Equalitys throughout the state. Thirdly, it exercises restraints on the executive against the use of arbitrary powers.

5. Fundamental rights :
Provision of fundamental rights will safeguard rights to a great extent. Citizens enjoy their liberties without restraints when these rights are enshrined in the constitution. Fundamental rights enable the citizens to develop their talents and realise their personality in various walks of life.

6. Economic equality:
Economic equality too acts as an important safeguard of individual liberties. It implies provision of adequate conditions for the people to come out of the evil j effects of hunger, poverty, and unemployment etc. Liberty becomes real when there exists economic equality. Economic equality presupposes economic justice. It is guaranteed by the state. Absence of glaring inequalities is a pre-condition of safeguarding liberty.

7. Decentralization of powers:
Liberty will be better safeguard through decentralisation of powers. Individuals could enjoy their liberties when the country is free from the centralization of governmental powers and authority. When the powers of the government are allocated among the union, state, and local governments, there arises no scope for despotism and infringement of individual liberties.

8. Freedom of press :
Some regarded freedom of press as a safeguard of individual liberty. Individuals could enjoy their liberties when the various agencies of press and other media have autonomy in their functioning. The press will be able to serve as an important agent for creating, consolidating and expressing public opinion. It, through its impartial editorials and honest presentation of news and views, will be able to safeguard individual liberties.

9. Strong opposition :
A strong opposition is a necessary condition for promoting individual liberty. The opposition will act as a watchdog of individual liberty. Whenever the party in power or persons at higher levels of government try to subvert or circumscribe the freedoms of individuals by their oppressive and despotic acts and activities through legislation and execution, the opposition will strongly resist such attempts. Itr by moving a no-confidence motion in the last resort, will uphold the liberties of the individuals.

10. Eternal vigilance :
The best safeguard to liberty is the spirit of the people. It is rightly said, “Eternal vigilance is the price of liberty”. People must be ready to fight for their liberty. They should have the courage even to rebel against the government whenever their liberty is curbed by it. In the words of Laski, “It is the proud spirit of the citizens, that is their most real safeguard”.

Question 3.
What do you mean by Equality ? What are its types?
Answer:
Meaning and explanation of Equality: The concept of Equality is of great significance in the study of political science. The term Equality’ became an important slogan and inspired the people of France, America, Russia and India during their struggle for freedom and independence.

The term “Equality” implies absolute equality of treatment.

In Political science, the term ‘Equality’ refers to a state which grants its citizens equality before the Liberty and Equality and equal opportunities to develop their personality. But it may be noted that individuals are not equal in many respects. While some of them are strong, some others may be weak. Similarly some are more intelligent than others. In this way, men differ in many respects. Hence, equality of treatment is not possible. In other words, it implies that State should grant to its citizens equality before Liberty and Equality and equal protection by Liberty and Equality.

Definitions :

1. “Equality means first of all the absence of special privilege. In the second place “It means that adequate opportunities are laid open to all”. – H.J. Laski
2. “Equality implies equal rights for all the people and abolition of special rights and privileges”. – Barker

Types of Equality :
There are many types of equality. They may be analysed in the following.

1. Natural equality:
This kind of equality existed in the “State of Nature”. It is based on the principle that nature has created everyone as equal. But natural equality exists no where in the world. Nature has not created all people with the same qualities. So by natural equality we generally mean the provision of equal opportunities to all. It implies the abolition of man-made and artificial inequalities.

2. Social equality :
Social equality stands for equality of status and absence of class distinctions and discrimination. It exists when no individual is made to suffer on account of his caste, class, colour, creed, race etc. For instance, the constitution of India does not reconize caste or class distinctions. In fact it has opposed the practice of untouchability. When all citizens enjoy social equality, there will be no discrimination against anyone on the grounds of caste, class, colour, creed, race and place of birth and legal rights. Social equality cannot be achieved only through Liberty and Equalitys. There must prevail a sentiment of equality among individuals. The following elements help in achieving and maintaining social equality.

1. Special privileges should not be allowed by the state to any citizen.
2. The government shall adopt and implement a uniform policy in the fields of education, employment, administration and legislation.
3. People must have a broad outlook with the qualities of tolerance, sacrifice, honesty etc., in social and religious affairs.
4. Citizens of a state should maintain harmonious relations with their fellow citizens.
5. People should not use their name of the caste, sect or religion at the time of forwarding petitions.
6. Inter caste marriages should be encouraged.

3. Economic equality :
This kind of equality is a precondition for the enjoyment of social, and political equalities. Its absence leads to several social and political problems. Economic equality does not mean equal distribution of social wealth among all the people. It only means the elimination of inequalities in wealth, income and property. The basic needs like food, shelter and clothing must be available to all. In the opinion of Laski, “Economic equality means the abolition of unfettered and irresponsible will in the industrial world”. In Barker’s view, “Economic equality is partly a matter of status and partly a matter of property and income”.

4. Political equality:
Political equality is an important kind of equality. It means that all citizens will have equal access to the avenues of authority. All of them possess the same political rights, an equal voice in government and equal right to hold public offices. It may be noted that political equality is enjoyed by the citizens only. It is not given to aliens and foreign nationals living in a state. Citizens have to utilise the opportunities given by political equality with great case, farsighted outlook and broad-mindedness.

Then only political equality brings the required fruits. Then only political equality brings the required fruits. Political equality prevails and flourishes when all citizens were provided with political rights like Right to vote, Right to contest elections, Right to make petitions and Right to criticism. That means political equality flourishes only in democratic countries.

5. International equality:
International equality means that all the states are treated equally irrespective of their geographical, economic or military composition. According to this element all nations of the world are equal whether they are large or small. For instance, the United Nations have extended equal dignity and status to all the nations in its Charter. International Equality reflects the traits of humanism. It emphasizes the peaceful settlement of disputes between the nations. Some cautioned about the occurrence of Third World War in the absence of respect to international Liberty and Equality. They expressed apprehensions thinking that human beings will go back to the stone ages.

Question 4.
Explain the relationship between Liberty and Equality.
Answer:
Liberty and Equality are important concepts in political science. They are closely related to each other. Both of them inspired the people of several countries during their struggle of independence against Foreign Rule.

Political philosophers have expressed two different opinions in regard to the relationship between Liberty and Equality. They agreed that both Liberty and Equality are important concepts in Political Science. However, some advanced the notion of affinity between the two. Others considered that the two are incompatible to each other.

The first school of thought includes political philosophers like Rousseau, Tawney, Laski and G.D.H. Cole. The second school of thought includes Lord Mathew Arnold, Lord Acton, De Toe quavilla and others. Let us analyse the argument of the two in the following paras.

Liberty and Equality are opposite :
The propounders of this school have expressed the view that liberty and equality are opposite in nature. Lord Acton said that the desire to have equality destroyed the possibility of full liberty. Whenever the government passes a Liberty and Equality to bring equality, Liberties of some people are restricted. Similarly, when all individuals are allowed freedom to acquire wealth, only a few talented persons will be able to receive the advantages. This leads to inequalities of wealth. When equality is maintained, liberties of some efficient persons will be curtailed.

Industrial revolution (1760-1840) symbolized this type of exploitation in society. It led to capitalism which is characterized by free and cutthroat competition. On the other hand, Socialist countries forced the people to practice the principles of duty, discipline and devotion towards the State. Such a policy will kill the initiative and incentive of the people. The supporters of this view argued that both the concepts will not go together. Unrestrained liberty will destroy equality. Nations can achieve the goal of either liberty or equality at a time. Both cannot be realized simultaneously. For instance, in communist states people enjoy equality but they were deprived of liberty.

Liberty and Equality are complementary :
It is said that liberty and equality are complementary to each other. The proponents of this school argued that liberty can be enjoyed by the people only with some degree of equality. A large measure of equality is essential for the enjoyment of liberty. Tawney, a support of this school of thought, pointed out that a large measure of equality is essential for the enjoyment of equality.

Polard, another supporter, hinted out that there is only one solution to the issue of liberty; it lies in equality. Indeed both the concepts have a common end, namely, the promotion of human personality and the spontaneous development of one’s capacities to the greatest heights.

It may be noted that the above two arguments are not completely real. The fact lies in between the two. Liberty and Equality are neither completely complementary not antithetical in nature. In this context, the real relationship between the two concepts may be explained as below.

Liberty is essential for equality:
a) Liberty does not mean absolute freedom. It has some limitations. It is available to all for achieving social welfare under certain conditions.

b) Liberty cannot be treated as the monopoly of a person or a group of persons.

c) Enjoyment of liberty by a person does not affect the same of others. If one recognizes this principle, he has to respect the principle of equality. It means that the fruits of liberty are found in the branches of the tree of equality. So, liberty and equality are complementary to each other. When liberty is extended to all the people on the principles of equality, the goal of liberty could be fulfilled in the true sense.

Equality is essential for Liberty: Equality does not mean identical treatment which is impossible in a civil society. It means equality under similar conditions. In a civil society, some persons may not have equal status with others. But it is necessary to provide some conditions and opportunities for the people to develop their status and personality. It may be said that when all people are equal, the fruits of liberty is available to all.

In this way liberty and equality are complementary to each other. These two concepts are so inter related that they have common objective. If liberty disregards equality, it would lead to anarchy and dictatorship. In the same way, if equality keeps itself away from liberty, it would lead to slavery. Both the ideals are essential for the betterment of the individual and the society.

Question 5.
Define the term Equality. Write about Social and Economic Equalities.
Answer:
Meaning and explanation of Equality:
The concept of Equality is of great significance in the study of political science. The term ‘Equality’ became an important slogan and inspired the people of France, America, Russia and India during their struggle for freedom and independence.

The term “Equality” implies absolute equality of treatment.
In Political science, the term ‘Equality’ refers to a state which grants its citizens equality before the Liberty and Equality and equal opportunities to develop the ir personality. But it may be noted that individuals are not equal in many respects. While some of them are strong, some others may be weak. Similarly some are more intelligent than others. In this way, men differ in many respects. Hence, equality of treatment is not possible. In other words, it implies that State should grant to its citizens equality before Liberty and Equality and equal protection by Liberty and Equality.

Definitions:

1. “Equality means first of all the absence of special privilege. In the second place “It means that adequate opportunities are laid open to all”. – H.J. Laski
2. “Equality implies equal rights for all the people and abolition of special rights and privileges”. – Barker

Types of Equality :
There are many types of equality. They may be analysed in the following.

1. Social Equality:
Social equality stands for equality of status and absence of class distinctions and discrimination. It exists when no individual is made to suffer on account of his caste, class, colour, creed, race etc. For instance, the constitution of India does not reconize caste or class distinctions. In fact it has opposed the practice of untouchability. When all citizens enjoy social equality, there will be no discrimination against anyone on the grounds of caste, class, colour, creed, race and place of birth and legal rights. Social equality cannot be achieved only through Liberty and Equalitys. There must prevail a sentiment of equality among individuals. The following elements help in achieving and maintaining social equality.

1. Special privileges should not be allowed by the state to any citizen.
2. The government shall adopt and implement a uniform policy in the fields of education, employment, administration and legislation.
3. People must have a broad outlook with the qualities of tolerance, sacrifice, honesty etc., in social and religious affairs.
4. Citizens of a state should maintain harmonious relations with their fellow citizens.
5. People should not use their name of the caste, sect or religion at the time of forwarding petitions.
6. Inter caste marriages should be encouraged.

2. Economic equality :
This kind of equality is a precondition for the enjoyment of social and political equalities. Its absence leads to several social and political problems. Economic equality does not mean equal distribution of social wealth among all the people. It only means the elimination of inequalities in wealth, income, and property. The basic needs like food, shelter and clothing must be available to all. In the opinion of Laski, “Economic equality means the abolition of unfettered and irresponsible will in the industrial world”. In Barker’s view, “Economic equality is partly a matter of status and partly a matter of property and income”.

Short Answer Questions

Question 1.
Define Liberty and describe any three types of Liberty. [A.P. Mar, 18]
Answer:
Introduction :
The concept of Liberty is of great significance in the study of political science. Liberty is an essential condition without which man cannot develop his personality. It became a source of inspiration to the millions of the people living all over the world.

Meaning:
The term liberty is derived from the Latin word “LIBER” which means free from restrictions.

Definitions :
Liberty is defined in many ways by different political thinkers. Some of them are cited below :

1. “Liberty means the absence of restraints”. – J.R. Seeley
2. “Liberty is the freedom of an individual to express without any external hindrance to his personality”. – G.D.H. Cole
3. “Liberty means the positive power of doing or enjoying something worth doing or enjoying”. – TH. Green
4. “Liberty is the eager maintenance of that atmosphere in which men have the opportunity to be at their best selves”. – H.J. Laski

Types of Liberty:
Liberty is of different types. Some of them may be described in the following :

1. Natural liberty
2. Civil liberty
3. Economic liberty
4. Political liberty
5. National liberty.

1. Natural liberty:
Natural liberty is understood as uncontrolled freedom or absolute freedom. It is believed that natural liberty existed in the pre-social and pre-state human life. According to this concept there were no rules and regulations except the Liberty and Equalitys of nature in the past. All persons were free to do anything according to their will and capacity. But this type of liberty is not possible in civilised society, since liberty is a social condition. True liberty does not inconvenience others. Liberty is not a licence. Natural liberty is equal to anarchy. The weak cannot enjoy liberty without Liberty and Equality. Some writers imagined that this kind of liberty existed before the origin of state.

2. Civil liberty :
Civil liberty is also known as personal liberty. It relates to the individual’s freedom in his life as a member of the social organisation. It is enjoyed by the individuals in the society. Civil liberty is the essential pre-requisite to the existence and survival of human beings. It enables them to lead happy, honourable and civilised life in the state. So it is a must to every one. The state recognises the various freedoms of individuals. In this regard Gettle said thus “Civil liberty is the group of rights recognised and implemented by the state”. The constitution of the America and the India have in corporated civil liberty in the form of fundamental rights. Civil liberty is manifested in several rights. These include A) Right to Life B) Right to Work Q Right to Property D) Right to Religion E) Right to Speech, Expression, Assembly, Movement and Residence etc.

3. Economic liberty :
Economic liberty means the right of every one to earn his livelihood. Laski described economic liberty as the security and opportunity to find reasonable significance in earning one’s daily bread. Economic liberty ensures everyone freedom from want and fear, hunger and starvation, unemployment and insufficiency. Economic liberty denotes freedom from want or insecurity of economic nature. Without economic liberty democracy is meaningless. It will also be secured by adopting the following measures.

1. Provision of minimum wages.
2. Guarantee of the right to work.
3. Protecting the workers from unemployment, sickness and other types of insecurity.
4. Providing adequate leisure.
5. Giving representation to the workers in the management of the industries.

Question 2.
Explain about any three safeguards of Liberty. [T.S. 2017]
Answer:
Introduction :
The concept of Liberty is of great significance in the study of political science. Liberty is an essential condition without which man cannot develop his personality. It became a source of inspiration to the millions of the people living all over the world.

Meaning:
The term liberty is derived from the Latin word” LIBER” which means free from restrictions.

Definition :

1. “Liberty means the absence of restraints”. – J.R. Seely
2. “Liberty means the positive power of doing or enjoying something worth doing or enjoying” – T.H. Green

Safeguards of liberty:
Liberty is the most cherished ideal of human beings. Hence, it must be safeguarded in the larger interest of the society and state. In this context, the following safeguards of liberty are worth mentioning.

1. Democratic rule :
Democratic rule is considered as a heaven to liberty. Liberty flourishes only in a democratic State. The reason is that democratic state extends protection to individual’s liberties through various Liberty and Equalitys. It creates a conducive atmosphere for the individuals to enjoy their liberties freely and impartially. It makes the people to participate in the government process directly or indirectly. It makes the people to participate in the governmental process directly or indirectly. It makes the government answerable to the people. It allows the people the right to change the government through public opinion or ballot when the government acts improperly.

2. Written and rigid constitution :
A written and rigid constitution is considered the most important safeguard of individual liberty. Such a constitution incorporates the various freedoms of individuals in several provisions. It acts as a custodian of people’s rights and liberties. It demarcates the spheres of governmental activity. It mentions about the various measures to be taken in case of people’s freedoms are infringed or confiscated by others including governmental authorities. It also imposes restraints on the political parties by not allowing them to amend the constitutional provisions for furthering their partisan interests.

3. Independent judiciary :
An independent and impartial judiciary is another safeguard of individual liberty. The judiciary will uphold the constitution and keeps the government accountable to the people. It prescribes various safeguards for protecting the fundamental rights of citizens. The judges in higher courts will deliver justice to the people on fair, free and impartial manner. Pro. Laski, while recognizing this safeguard, stated that good governance depends upon the effective functioning of judiciary.

Question 3.
What are the characteristics of Liberty?
Answer:
Meaning:
The term Liberty is derived from the Latin word “LIBER” which means free from restraints.

Definition :
“Liberty means the absence of restraints”. – J.R. Seely

Characteristics of Liberty:
The following are the important characteristics of Liberty.

1. Liberty is a dynamic concept. Its interpretation varies according to time, place and wishes of the people.
2. Liberty always opposes political subjugation, imprisonment and slavery.
3. It always aims at realizing the aspirations of the individuals.
4. Liberty always means absence of irrational restraints and presence of favourable conditions.
5. It is the product of rights.
6. It is essential for the realization of human personalities.
7. It is found only in democratic states.
8. It is manifest in the form of rights.
9. It does not mean license to do whatever a person wants. It is always subject to limitations.

Question 4.
Describe the different aspects of Liberty.
Answer:
Meaning:
The term Liberty is derived’from the Latin word “LIBER” which means free from restraints.

Definition :
“Liberty means the absence of restraints”.

Aspects of Liberty :
Liberty has two aspects – Negative and Positive.

1. Negative aspect:
Liberty, in its negative aspect, implies absence of restrictions. Individuals enjoy freedom only when there are no restraints on their freedoms. However, some considered this aspect as not realistic. They asserted that unrestrained liberty was possible in a pre-social state. It is neither feasible nor practicable for enjoying freedoms by the individuals in modem times.

2. Positive aspect:
Liberty in its positive aspects denotes a situation in which individual is free to do according to his wishes and allowing others the same in his case. To say in other words liberty is the power which should not cause harm to others. T.H. Green, an idealist philosopher, propounded this aspect of liberty. He stated thus “Liberty is the power of doing or enjoying something that is worth doing or worth enjoying in common with others”.

Question 5.
What do you mean by Civil Liberty?
Answer:
Civil liberty is also known as personal liberty. It relates to the individual’s freedom in his life as a member of the social organisation. It is enjoyed by the individuals in the society. Civil liberty is the essential pre-requisite to the existence and survival of human beings. It enables them to lead happy, honourable and civilised life in the state. So it is a must to every one. The state recognises the various freedoms of individuals. In this regard Gettle said thus “Civil liberty is the group of rights recognised and implemented by the state”. The constitution of the America and the India have in corporated civil liberty in the form of fundamental rights. Civil liberty is manifested in several rights. These include A) Right to Life B) Right to Work Q Right to Property D) Right to Religion E) Right to Speech, Expression, Assembly, Movement and Residence etc.

Question 6.
Point out two elements that threaten individual’s Liberties.
Answer:
Liberty is an essential condition without which man cannot develop his personality. Even though the liberty is safeguarded by several ways, there prevails some elements which threatens the Liberty of individuals in modem times. They are as follows :

1. Enhancement of state authority:
The modem democratic state, in the pretext of welfarism has assumed undefinable powers. As a result, it has been intruding into every activity of the people. Even its interference in family matters in the name of population correctives became common. So is the case in the sphere of economy, culture, arts, science etc. All this will lead to the encroachment of state into the public domain. This negated individual liberty to a great extent.

2. Too many Liberty and Equalitys :
In modem times people felt the government should come to their rescue for providing various amenities. This prompted the government to encroach into the sphere of individuals. In the process, too many Liberty and Equalitys have become the order of the day. Extension of Liberty and Equalitys gradually led to the curtailment of individual liberties.

3. Negative attitude :
In democracy, the government informs the people about its policies and responds to the public opinion. In the process there is eveiy possibility of distorting public opinion by the concerned persons on the government. We could notice this tendency in several states of the worlds including India.

4. Tyranny of majority :
Individual liberty is ressed by the tyranny of majority. The party in power, through its majority members support in the legislature, makes Liberty and Equalitys without considering the wishes and aspirations of the people. Such a situation will be dangerous to individual liberties. Citizens must not vote to such a party in power or the opposition as in Indian government in the coming elections.

Question 7.
What is meant by Equality?
Answer:
The concept of Equality is of great significance in the study of political science. The term ‘Equality’ became an important slogan and inspired the people of France, America, Russia and India during their struggle for freedom and independence.

The term “Equality” implies absolute equality of treatment. In political science the term Equality refers to a state which grants its citizens equality before the Liberty and Equality and equal opportunities to develop their personality.

Definitions:

1. “Equality means first of all the absence of special privilege. In the second place “It means that adequate opportunities are laid open to all”. – H.J. Laski
2. “Equality implies equal rights for all the people and abolition of special rights and privileges”. – Barker

Question 8.
Describe any three aspects of Equality.
Answer:
The concept of equality has mainly two aspects-Positive and Negative. Equality, in its positive aspect, means the provision of adequate opportunities for all. However, it does not mean simply identical treatment for all. Since individuals differ in their needs and capacities, they require different opportunities for their personal development. Individuals should be given such opportunities which will develop their overall personality. If the state provides adequate opportunities to all for developing the capacities, the concept of equality could be realised in practice.

Equality in its negative sense, means no discrimination on some artificial grounds based on caste, colour, creed, descent, domicile, religion, etc. Everyone should get his due share. He should be in a position to realize his best self. Laski says that “Whatever rights herein in another by virtue of his being a citizen must be herein, and to the same extent in me also”. Everyone should have an equal access to the avenues of their Liberties.

Question 9.
What is Equality? Explain any three types of equality. [A.P. 19, 15]
Answer:
Meaning and explanation of Equality:
The concept of Equality is of great significance in the study of political science. The term ‘Equality’ became an important slogan and inspired the people of France, America, Russia and India during their struggle for freedom and independence.

The term “Equality” implies absolute equality of treatment.

In Political science, the term ‘Equality’ refers to a state which grants its citizens equality before the Liberty and Equality and equal opportunities to develop their personality. But it may be noted that individuals are not equal in many respects. While some of them are strong, some others may be weak. Similarly some are more intelligent than others. In this way, men differ in many respects. Hence, equality of treatment is not possible. In other words, it implies that State should grant to its citizens equality before Liberty and Equality and equal protection by Liberty and Equality.

Definitions:

1. “Equality means first of all the absence of special privilege. In the second place “It means that adequate opportunities are laid open to all”. – H.J. Laski
2. “Equality implies equal rights for all the people and abolition of special rights and privileges”. – Barker

Types of equality :
There are many types of equality. They may be analysed in the following.

1. Natural equality:
This kind of equality existed in the “State of Nature”. It is based on the principle that nature has created everyone as equal. But natural equality exists no where in the world. Nature has not created all people with the same qualities. So by natural equality we generally mean the provision of equal opportunities to all. It implies the abolition of man-made and artificial inequalities.

2. Political equality:
Political equality is an important kind of equality. It means that all citizens will have equal access to the avenues of authority. All of them possess the same political rights, an equal voice in government and equal right to hold public offices. It may be noted that political equality is enjoyed by the citizens only. It is not given to aliens and foreign nationals living in a state. Citizens have to utilise the opportunities given by political equality with great case, farsighted outlook and broad-mindedness. Then only political equality brings the required fruits. Then only political equality brings the required fruits. Political equality prevails and flourishes when all citizens were provided with political rights like Right to vote, Right to contest elections, Right to make petitions and Right to criticism. That means political equality flourishes only in democratic countries.

3. International equality:
International equality means that all the states are treated equally irrespective of their geographical, economic or military composition. According to this element all nations of the world are equal whether they are large or small. For instance, the United Nations have extended equal dignity and status to all the nations in its Charter. International Equality reflects the traits of humanism. It emphasizes the peaceful settlement of disputes between the nations. Some cautioned about the occurrence of Third World War in the absence of respect to international Liberty and Equality. They expressed apprehensions thinking that human beings will go back to the stone ages.

Question 10.
Write about Political Equality.
Answer:
Political equality is an important kind of equality. It means that all citizens will have equal access to the avenues of authority. All of them possess the same political rights, an equal voice in government and equal right to hold public offices. It may be noted that political equality is enjoyed by the citizens only. It is not given to aliens and foreign nationals living in a state. Citizens have to utilise the opportunities given by political equality with great case, farsighted outlook and broad-mindedness.

Then only political equality brings the required fruits. Then only political equality brings the required fruits. Political equality prevails and flourishes when all citizens were provided with political rights like Right to vote, Right to contest elections, Right to make petitions and Right to criticism. That means political equality flourishes only in democratic countries.

Question 11.
Discuss the importance of Economic Equality.
Answer:
Economic equality is considered as the basis of social and political equalities. It serves as the main driving force behind all activities in the modern state. Economic equality means the elimination of vast inequalities in income, property and wealth. Earnest Barker viewed thus “Economic equality is purely a matter of status and partially a matter of property and income”. Lord Bryce viewed “Economic Equality” as The attempt to expunge all differences in wealth, allotting every man and women an equal share in the worldly goods”.

Prof. Laski held thus “Economic Equality implies the abolition of unfettered and irresponsible will in the industrial world”. At the same time, economic equality does not mean equal treatment and reward. It stands for opportunity to work and earn their livelihood to improve their economic status. This can be achieved only through individuals and government. Many socialist states have tried and partially succeeded in achieving economic equality.

Very Short Answer Questions

Question 1.
Give any two definitions of Liberty.
Answer:

1. “Liberty means the absence of restraints”. – J.R. Seeley
2. “Liberty is the freedom of an individual to express without any external hindrance to his personality”. – G.D.H. Cole

Question 2.
What do you know about positive aspect of Liberty?
Answer:
Positive aspect:
Liberty in its positive aspects denotes a situation in which individual is free to do according to his wishes and allowing others the same in his case. To say in other words liberty is the power which should not cause harm to others. T.H. Green, an idealist philosopher, propounded this aspect of liberty. He stated thus “Liberty is the power of doing or enjoying something that is worth doing or worth enjoying in common with others.

Question 3.
List out any four characteristics of Liberty.
Answer:
Characteristics of Liberty: The following are the important characteristics of Liberty.

1. Liberty is a dynamic concept. Its interpretation varies according to time, place and wishes of the people.
2. Liberty always opposes political subjugation, imprisonment and slavery.
3. It always aims at realizing the aspirations of the individuals.
4. Liberty always means absence of irrational restraints and presence of favourable conditions.
5. It is the product of rights.

Question 4.
Mention the names of four types of liberty.
Answer:
Liberty is of in the following types namely :

1. Natural liberty
2. Civil liberty
3. Economic liberty
4. Political liberty and
5. National liberty.

Question 5.
What is Civil Liberty?
Answer:
Civil liberty is also known as personal liberty. It is the essential pre requisite to the existence and survival of human beings. It enables them to lead happy, honourable and civilised life in the state. Civil liberty is manifested in several rights like A) Right to Life B) Right to Work C) Right to Property D) Right to Religion E) Right to Speech, Expression, Assembly, Movement and Residence etc.

Question 6.
Write about Political Liberty.
Answer:
Political liberty facilitates the citizens to take part in the political affairs of the state. Political liberty is confined to the citizens alone. Political liberty provides several rights like i) Right to vote ii) Right to contest as candidates in elections iii) Right to hold public offices iv) Right to criticism etc.

Question 7.
Is it possible to achieve complete Economic Liberty?
Answer:
It is possible to achieve complete economic liberty if the following measures are taken.

1. Provision of minimum wages.
2. Guarantee of the right to work.
3. Protecting the workers from unemployment, sickness and other types of insecurity.
4. Giving representation to the workers in the management of the industries.

Question 8.
What is Economic Liberty? [A.P. & T.S. Mar, 15]
Answer:
Economic liberty means the right of every one to earn his livelihood. Economic liberty ensures everyone freedom from want and fear, hunger and starvation, unemployment and insufficiency. It will be secured by adopting the following measures.

1. Provision of minimum wages.
2. Guarantee of the right to work.
3. Protecting the workers from unemployment, sickness and other types of insecurity.
4. Providing adequate leisure etc.

Question 9.
What do you know about National Liberty?
Answer:
National Liberty implies the Freedom and Independence of the state. It also denotes the sovereignty of the state. Every state enjoys this liberty and remains free from the political domination of other states. Ex: The Indian masses under the leadership of Mahatma Gandhi waged a non-violent struggle to secure National Freedom from the British Rule.

Question 10.
Mention any four safeguards of Liberty.
Answer:

1. Democratic rule
2. Written and rigid constitution
3. Independent judiciary
4. Rule of Liberty and Equality
5. Fundamental rights

Question 11.
Write about Independent-Judiciary as a safeguard of Liberty.
Answer:
Independent judiciary:
An independent and impartial judiciary is another safeguard of individual liberty. The judiciary will uphold the constitution and keeps the government accountable to the people. It prescribes various safeguards for protecting the fundamental rights of citizens. The judges in higher courts will deliver justice to the people on fair, free and impartial manner. Prof. Laski, while recognizing this safeguard, stated that good governance depends upon the effective functioning of judiciary.

Question 12.
What is Equality?
Answer:
According to H.J. Laski “Equality means first of all the absence of special privilege. In the second place “It means that adequate opportunities are laid open to all”.

Question 13.
Mention the different implications of Equality.
Answer:
The following are the major implications of equality. They are :
a) There should not be any special privileges to any individual or a group of individuals.

b) People must be provided with adequate opportunities to develop their personalities.

c) There should not be any discrimination among the people on the grounds of religion, caste, creed, colour, place of birth etc. However, some discrimination may be made on the basis of reasonable grounds i.e., protective discrimination.

Question 14.
What are the aspects of Equality?
Answer:
The concept of equality has mainly two aspects – Positive ad Negative. Equality in its positive aspect, means the provision of adequate opportunities for all. Equality in its negative sense, means no discrimination on some artificial grounds based on caste, colour, creed, descent, domicile, religion etc.

Question 15.
Write about any two features of Equality.
Answer:
The following are the essential features of equality.
1. Equality not given by nature :
Equality is not given by nature. Absolute equality is now here to be found. All individuals are bom in the same circumstances. Human beings are not like standard commodities which are coming out of a factory. Every individual has his own point of strength and weakness peculiar to his personality. No two individuals remain exactly like each other. Practically, individuals are not equal.

2. Equality not absolute:
Equality is not absolute. Absolute equality is neither possible nor desirable. In no movement in the history of the world did individuals claim to have absolute equality. So, equality does not mean uniformity and differences does not mean inequality.

Question 16.
Mention the different forms of Equality.
Answer:
Equality is of the different forms like

1. Natural equality
2. Social equality
3. Economic equality
4. Political equality and
5. International equality.

Question 17.
Explain Natural Equality.
Answer:
Natural equality:
This kind of equality existed in the “State of Nature”. It is based on the principle that nature has created everyone as equal. But natural equality exists no where in the world. Nature has not created all people with the same qualities. So by natural equality we generally mean the provision of equal opportunities to all. It implies the abolition of man-made and artificial inequalities.

Question 18.
What do you mean by Social Equality?
Answer:
Social equality stands for equality of status and absence of class distinctions and discriminations. It exists when no individual is made to suffer on account of his caste, class, colour, creed, race etc. In fact it has opposed the practice of untouchability.

Question 19.
What is meant by Political Equality?
Answer:
Political equality implies the provision of adequate conditions for the people in the political affairs of the state. It is enjoyed by the citizens only. It could be achieved by granting various political rights such as

1. Right to vote
2. Right to contest in elections
3. Right to hold public offices
4. Right to criticise the government etc.

Question 20.
Mention the measures adopted for achieving Economic Equality.
Answer:
The following measures are adopted for achieving Economic Equality.

1. Provision of adequate means of employment
2. Implementation of land reforms
3. Providing housing facilities to the poor
4. Provision of free education to the poor
5. Provision of minimum wages etc.

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 4th Lesson Law Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 4th Lesson Law

Long Answer Questions

Question 1.
Define Law. Explain its various sources.
(or)
Question 2.
What is meant by law? Discuss the various sources of law.
Answer:
Introduction :
Law is an important concept in the study of political science. It is an important feature of modem state. Law regulates the external behaviour of individuals. It determines and regulates the nature of individual’s activities.

Individual’s life, social order, political system, economic transactions, cultural activities etc., remain paralysed in the absence of laws.

It is due to the deterioration of legal system that public life, governmental organisations, and state activities were affected to a great extent in some contemporary states. Afghanistan, Iraq, Nigeria, Somalia, Soviet Union, Ukraine, Yemen, Palestine etc., are some examples of such states.

Meaning :
The term “Law” is derived from the Teutonic (German) word “Lag” which means “To Lay”, “To Set” or something fixed.

The second dimension is that the word “Law” had its roots in the Latin words “Jus and Jungere” which means bond or Tie.

Definitions:
Political thinkers defined law in different ways which are listed below :

1. “Law is the command of the sovereign”. – John Austin
2. “Law is the system of rights and obligations which the State enforces”. – T.H. Green
3. “Law is a general rule of external action enforced by the sovereign political authority”. – T.E. Holland
4. “Law is a body of rules which the State recognises and applies in the administration of Justice”. – John Salmond

Sources of Law :
Law is a product of history. It has passed through various stages of development. Several elements have contributed to its evolution. In Legal sense, the state is the main source of law. Professor T.E. Holland mentioned six sources of Law. They are

1. Customs
2. Religion
3. Judicial Decisions
4. Scientific Commentaries
5. Equity and
6. Legislature.

1) Customs, Practices, and Traditions:
These are one of the important sources of law. In primitive societies, there were no laws in written form. All disputes were settled in accordance with social customs and traditions. Customs regulated the social life in the early societies. Customs and traditions cannot be laws in political sense. But, when the State recognises certain traditions, they in turn become laws. For example, the laws relating to marriage, divorce etc., found in our Country are based on traditions, the common law of England.

2) Religion :
In ancient times customary laws and religious laws were intermixed. The religious teachers enjoyed unlimited powers in those times. Their decisions were treated on par with laws. The primitive men believed that the judgements of the religious teachers had divine sanction. The ancient Roman laws were merely the religious laws. The Hindu and Muslim laws derived inspiration mainly from religion.

3) Judicial Decisions/Adjudication/Judgement of the Courts :
The judgements of the judges also serve as a source of law. Generally, judges interpret laws, apply them to particular cases and deliver judgements. Their judgements become precedents and are usually followed by other judges in similar cases. In course of time such judgements acquire the status of law. In this way, judges add to the law of the country. There are many instances that new laws have evolved by way of interpretation. Many of the laws in Britain, America, and India have originated from the judgements of the Judges of the respective countries.

4) Scientific Commentaries :
These are the works of great Jurists. The views of the Jurists expressed in their works also act as and important source of law. The Jurists collect and compare the past customs and laws with those of the present. While doing so, they point out the defects in the existing laws and suggest ways for their improvement. The views of the Jurists however, do not become laws. But, they become laws when they are recognised by the courts. For example, the writings of Coke and Black Stone in the U.K. are held in high esteem. The same is the position of Story and Kent in America and the Vignaneswara and Apararka in India.

5) Equity:
Equity means fairness or justice. It is also a kind of Judge – made law. It is an informal method Of making a new law or altering an old law to new conditions. Some-times, the courts may be confronted with the disputes about which the law is silent. Under such situation, the Judge will give relief to the aggrieved party by using principles of social justice and humanism common-sense. In course of time, they acquire the status of law. In equity, Judge is adding to the law what is missing therein and creating a new one.

6) Legislature :
This is the most important and direct source of law. Most of the laws now-a-days are made by the legislatures. Hence, legislatures are regarded as “Law-Making Factories”. They frame new laws, amend the existing laws and if necessary, abolish old laws. The other sources of Law have been replaced by the legislature. This, however, does not mean that they have no role to play in influencing laws. While framing laws, the legislators bear in mind the customs, religious practices, judicial decisions etc.

Question 3.
Explain Maclver’s classification of Laws.
Answer:
Meaning :
The English word Law’ originates from the ancient Teutonic word ‘Lag’ which means “something that lies fixed or uniform”.

Definitions :

1. “Law is the command of the sovereign”. – John Austin
2. “Law is a general rule of external action enforced by the sovereign political authority”. – T.E. Holland

Classification of Law:
Many political philosophers gave their classifications on laws in different ways, of them the classification given by Maclver is mention worthy.

Law is mainly classified into two types namely i) Natural Law ii) Positive Law.
Law is further divided into National Law and International Law.
National Law is further grouped into constitutional law and ordinary law.
Ordinary Law is again classified into public law and private law.

Public Law is further divided into Administrative Law and general law. General law is divided into statutory law, case Law and common law.

The above classification of Law can be explained in the following points.

1) Natural Law :
Natural Law is also known as divine law. It is abstract. It is not created by any human agency. It is considered as the gift of nature based on metaphysical power. It refers to the use of reason to analyse human nature. It is written in the heart of human beings by the finger of God.

2) Positive Law :
Positive Law is created by the human Agency. It is also known as political law. It is framed on the basis of the existing social and political conditions. It is sanctioned by the Sovereign Political Authority. Violation of positive law leads to punishment.

Positive Law is further classified into two categories – A) National Law and B) International Law.

A) National Law :
National Law is also known as law of the state. It confines to the territorial limits of the state. It is enforced by the sovereign, is applicable to all the people in a state. It is enforced by the sovereign, is applicable to all the people in a state.

B) International Law :
International Law is one which regulates the cordial relations among various states. National Law is further divided into two categories
i) Constitutional Law and
ii) Ordinary Law.

i) Constitutional Law:
It is a basic law of any state. It defines the political system. All the basic principles of administration are included in this type. All other laws in the state are subservient to constitutional law. It is framed by the constituent assembly.

ii) Ordinary Law :
It determines the relation between the state, administration and people. These laws are framed by a group of officials authorised by law. Ordinary law is further divided into
A) Public law and
B) Private law.

A) Public Law :
It regulates the relation between people and state. These laws are formulated by state for society.

B) Private Law :
It regulates the relation between citizens. It protects the rights of citizens. It is also called civil law.

Public Law is further divided into i) Administrative Law and ii) General Law.

C) Administrative Law:
It regulates the administrative relations between the authorities and people. Administrative law brings discipline among the personnel in the government. Now it is implementing in France and India.

D) General Law :
It deals with the private affairs of individual in relation to the state. It covers the laws relating to marriage, divorce, contract etc. General Law is further classified into
i) Statutory law
ii) Common law.

i) Statutory Law:
Statutory law is the greater part of modem law. It is enacted by the Legislature of a state for the day to day administration. Ex : The Parliament in India, the Congress in United States, and Parliament in Britain formulate this type of law.

ii) Common Law :
Common law is a customary law. It is a product of customs and traditions which are popular among the people. The courts accept common law as a part of the legal system.

Question 4.
Explain the relationship between Law and Liberty.
Answer:
Law and Liberty are the two fundamental concepts in political science. These two concepts are interdependent. There is no unanimity of opinion among political philosophers in regard to the relation between Law and Liberty.

There are two different schools which gave contradictory opinions. One school of thought believed that Law and Liberty are antithetical to each other. The other school of thought believed that Law and Liberty are inter-related to each other. Let us explain the two versions.

i) Law and Liberty are Antithetical :
Individualists like J.S.Mill, Herbert Spencer, David Ricardo, Adam Smith believed that law always restricts the activities of human beings. The State is the principal agency which destroys individual’s liberties. It will not “allow the citizens to take active part in the affairs of State and Government. Similarly, it becomes a hurdle in performing the economic activities of the Nation. The recent liberalised economic policies in many countries changed the pace of their economies. These policies enabled the people to freely participate in economic activities. Therefore, individualists believed that state is a necessary evil institution. They stated that the Government is the best which governs the least. Therefore Law and Liberty are antithetical to each other.

ii) Law and Liberty are complementary :
The socialists and communists believed that Law and Liberty are complementary to each other. They regarded the State as a welfare agency. Law imposes restrictions essential for the social welfare. It is a fact that the capitalist class exploited the working class. The State shall eradicate the evils of exploitation by making necessary laws.

The idealists believed that State is a Moral Agency The State represents the general will of the community. Individuals will be free when they obey the laws of the State. Moussolini gave a slogan “Nothing against the State”. Law always protects the interests of the people. Therefore both the concepts of Law and Liberty are complementary to each other.

Short Answer Questions

Question 1.
Define Law and mention the features of law.
Answer:
Law is an important concept in the study of political science. It is an important feature of Modern State. Law regulates the external behaviour of individuals.

Meaning:
The term “Law” is derived from the Teutonic word “Lag” which means something fixed.

Features of Law :
The following are some important features of law.

1. Law comprises some rules and regulations which are approved by the Sovereign.
2. It is enforced by the State. It is valid because it is sanctioned by the State.
3. It is definite, precise and universal.
4. It reflects the will of the people.
5. Any violation of law leads to punishment.
6. Laws are compulsory and cohesive in nature.
7. Law aims at securing and promoting the individual and general welfare.
8. Law is dynamic as it goes on changing according to the needs of the people.

Question 2.
Discuss different kinds of law.
Answer:
Many political philosophers gave their classifications on laws in different ways. Of them the classification given by Maclver is mentioned worthy which can be explained in the following points.

1. Natural Law :
Natural law is also known as divine law. It is abstract. It is not created by any human agency. It is considered as the gift of nature, based on metaphysical power. It refers to the use of reason to analyse human nature. It is written in the heart of human beings by the finger of God.

2. Positive Law :
Positive law is created by the human agency. It is also known as political law. It is framed on the basis of the existing social and political conditions. It is sanctioned by the Sovereign Political Authority. Violation of positive law leads to punishment.

3. Constitutional Law:
It is a basic law of any state. It defines the political system. All the basic principles of administration are included in this type. All other laws in the State are subservient to constitutional law. It is framed by the constituent assembly.

4. Ordinary Law :
It determines the relation between the State, Administration and people. These laws are framed by a group of officials authorised by law.

5. Public Law :
It regulates the relation between people and state. These laws are formulated by State for Society.

6. Private Law :
It regulates the relation between citizens. It protects the rights of citizens. It also called civil law.

7. Administrative Law:
It regulates the administrative relations between the authorities and people. Administrative law brings discipline among the personnel in the government. Now it is implementing in France and India.

8. General Law:
It deals with the private affairs of individual in relation to the State. It covers the laws relating to Marriage, Divorce, Contract etc.

9. Statutory Law:
Statutory law is the greater part of modem law. It is enacted by the Legislature of a State for the day to day Administration.

10. Common Law :
Common law is o customary law. It is a product of customs and traditions which are popular among the people. The courts accept common law as a part of the legal system.

Question 3.
Write about any three sources of Law.
Answer:
Definitions:
The English word ‘Law’ originates from the ancient Teutonic word ‘Lag’ which means “something that lies fixed or uniform”. Political thinkers defined law in different ways which are listed below :

1. “Law is the command of the sovereign”. – John Austin
2. “Law is the system of rights and obligations which the State enforces”.- T.H. Green

Sources of Law:
1) Customs, Practices, and Traditions:
These are one of the important sources of law. In primitive societies, there were no laws in written form. All disputes were settled in accordance with social customs and traditions. Customs regulated the social life in the early societies. Customs and traditions cannot be laws in political sense. But, when the State recognises certain traditions, they in turn become laws. Ex: The laws relating to marriage, divorce etc., found in our Country are based on traditions, the common law of England.

2) Religion :
In ancient times customary laws and religious laws were intermixed. The religious teachers enjoyed unlimited powers in those times. Their decisions were treated on par with laws. The primitive men believed that the judgements of the religious teachers had divine sanction. The ancient Roman laws were merely the religious laws. The Hindu and Muslim laws derived inspiration mainly from religion.

3) Judicial Decisions / Adjudication / Judgement of the Courts :
The judgements of the judges also serve as a source of law. Generally, judges interpret laws, apply them to particular cases and deliver judgements. Their judgements become precedents and are usually followed by other judges in similar cases. In course of time such judgements ac- quire the status of law. In this way judges add to the law of the country. There are many instances that new laws have evolved by way of interpretation. Many of the laws in Britain, America and India have originated from the judgements of the Judges of the respective countries.

Question 4.
Distinguish between Law and Morality.
Answer:

Law	Morality
1) Law is concerned with the external behaviour of individuals.	1) Morality is concerned with the whole life of individuals.
2) Law is a concern of the State.	2) Morality is concerned with individual conscience.
3) Law is backed by the coercive power.	3) Public opinion and individual conscience lie behind morality.
4) Law is definite and precise.	4) Morality is vague and uncertain.
5) Law acts within the Territory of a State.	5) Moral principles are universal in Nature.
6) Law is enacted with a specific objective.	6) Moral principles are inherent in Society.
7) Laws are sanctioned by the Sovereign.	7) Moral principles are sanctioned by the society.
8) Law is the subject matter of political science.	8) Moral principles are the subject matter of ethics.
9) Violation of law leads to punishment.	9) Violation of moral principles does not leads to punishment.
10) There is a definite agency to make and implement the law.	10) There is no such agency in the case of moral principles.

Question 5.
“Law and Liberty are Antithetical” – Analyse this statement
Answer:
Individualists like J.S.Mill, Herbert spencer, David Ricardo, Adam Smith believed that law always restricts the activities of human beings. The state is the Principal Agency which destroys individual liberties. It will not allow the citizens to take active part in the affairs of State and Government. Similarly, it becomes a hurdle in performing the economic activities of the nation.

The recent liberalised economic policies in many countries changed the pace of their economies. These policies enabled the people to freely participate in economic activities. Therefore, individualists believed that state is a necessary evil institution. They stated that the Government is the best which governs the least. Therefore law and liberty are antithetical to each other.

Question 6.
How Law and Liberty are complementary?
Answer:
Law and Liberty are the two fundamental concepts in political science. These two concepts are interdependent. The socialists and communists believed that Law and Liberty are complementary to each other. They regarded the State a Welfare Agency. Law imposes restrictions essential for the social welfare. It is a fact that the capitalist class exploited the working class. The state shall eradicate the evils of exploitation by making necessary laws.

The idealists believed that state is a moral agency. The state represents the general will of the community. Individuals will be free when they obey the laws of the state. Mussolini gave a slogan “Nothing against the State”. Law always protects the interests of the people. Therefore both the concepts of law and liberty are complementary to each other.

Question 7.
In what way are law and morality related to each other?
Answer:
Law and morality are considered as the basic pillars of social institutions. The two elements play a vital role in the maintenance of peace, security and prosperity in society. They have different versions with common objective. They are interrelated and interdependent. Some political philosophers believed that law and morality are one and the same. In this context R. G. Gettle stated thus “Law and Morality were both identical. Both arise as a result of habits and experience in primitive social life when moral and social lives were not separate. Inspite of certain differences, Law and Morality are meant for common welfare. Both deal with individual as a moral agent of society. Ex : In ancient India the term “Dharma” denotes both law and morality. The Greek political philosophers identified the two as same.

Very Short Answer Questions

Question 1.
Explain the origin of the term “Law”. [A.P. 2019]
Answer:
The term “LAW’ is derived from the Teutonic route (German) “Lag” which means “To Lay”, “To Set” or something fixed. The second dimension is that the word “Law” had its roots in the Latin Words “Jus and Jungere” which mean bond or tie.

Question 2.
Write any two definitions of Law.
Answer:
Political thinkers defined law in different ways which are listed below.

1. “Law is the command of the Sovereign”. – John Austin
2. “Law is the system of Rights and obligations which the state enforces”. – T.H. Green

Question 3.
What are the features of Law?
Answer:
The following are some important features of law

1. It is enforced by the State.
2. It is definite, precise and universal.
3. It reflects the will of the people.
4. Laws are compulsory and cohesive in nature.
5. Any violation of law leads to punishment.

Question 4.
Define the term “Rule of Law”. [A.P. 19, 15; T.S. 17, 15]
Answer:
Rule of Law is an important type of administration of justice. It originated in England. It implies :

1. Legal Equality : All are equal before law.
2. No Arbitrary Action : Punishment is given only when an existing law is violated.
3. No Special Rights : No individual is above law and law does not recognise any special privileges.

Question 5.
What is Natural Law?
Answer:
Natural Law is also known as Divine Law. It is abstract. It is not created by any human agency. It is considered as the gift of nature, based on metaphysical power. It refers to the use of reason to analyse human nature. It is written in the heart of human beings by the finger of God.

Question 6.
What do you mean by Administrative Law?
Answer:
Administrative law plays an important role in the smooth functioning of administration. It regulates the administrative relations between the authorities and people. It helps the Government to bring reforms in the sphere of development and welfare programmes. Administrative law brings discipline among the personnel in the Government. Now it is implementing in France and India.

Question 7.
Write any three sources of Law. [T.S. 2017]
Answer:
Professor T.E. Holland mentioned six sources of law. They are

1. Customs
2. Religion
3. Judicial decisions
4. Scientific commentaries
5. Equity and
6. Legislature.

Question 8.
What is Constitutional Law? [A.P. Mar. 18]
Answer:
The basic law according to which the Government in a State is conducted is called constitutional law. It defines the political system. It is usually prepared by a body known as Constituent Assembly, formed only for that purpose. All other laws in the State are subordinate to this law. It also contains fundamental rights and fundamental duties.

Question 9.
Define Public Law.
Answer:
Public law regulates the relations between state and individuals. It explains the basic structure and functions of the State. It covers the basic rights of the individuals against the interference of the State. It must be followed by the citizens. Its violation leads to punishment.

Question 10.
Define the term Equity.
Answer:
Equity means fairness or justice. It is also a kind of Jude – Made law. It is an informal method of making a new law or altering an old law to new conditions. Sometimes, the courts may be confronted with the disputes about which the law is silent. Under such situation, the Judge will give relief to the aggrieved party by using principles of social justice and humanism common-sense. In course of time, they acquire the status of law. In equity Judge is adding to the law what is missing therein and creating a new one.

Question 11.
What do you mean by Scientific Commentaries?
Answer:
These are the works of great Jurists. The views of the Jurists expressed in their works also act as an important source of law. The Jurists collect and compare the past customs and laws with those of the present. While doing so, they point out the defects in the existing laws and suggest ways for thier improvement. The views of the Jurists however, do not become laws. But, they become laws when they are recognised by the courts. Ex : The writings of Coke and Black Stone in the U.K. are held in high esteem. The same is the position of Story and Kent in America and the Vignaneswara and Apararka in India.

Question 12.
What is the role of Legislature in law making Laws?
Answer:
This is the most important and direct soruce of law. Most of the laws now-a-days are made by the legislatures. Hence, legislatures are regarded as “Law-making Factories”. They frame new laws, amend the existing laws and if necessary, abolish old laws. The other sources of law have been replaced by the legislature. This, however, does not mean that they have no role to play influencing laws. While framing laws, the legislators bear in mind the customs, religious practices, judicial decisions etc.

Question 13.
What is meant by Statutory Law?
Answer:
Statutory law is an important part of modem law. it is enacted by the legislature of a state for the day to day administration. For instance, the Parliament in India, the Congress in United States and Parliament in Britain formulate this type of law.

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 3rd Lesson Nationalism Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 3rd Lesson Nationalism

Long Answer Questions

Question 1.
Define Nationality. Explain the Essential Elements of Nationality.
Answer:
Introduction :
The concepts of Nation and Nationality have become important components in the domain of International Relations and political science respectively. Both inspired the people of several countries with patriotic feeling prior to the two world wars.

The Events that took place in the erstwhile Soviet Union, ethnic Riots between Serbians and croatians in the former Yugo slavia, the unification of East and west Germanies, the peace talks between Israel and Palestine Liberation Organization (PLO) on West Asia etc., reflect the serious concern of the people for realising Nationality and Nation States.

Meaning :
The Word “Nation” is derived from a latin word “NATIO” which means “BORN” (BIRTH) or “Common Descent”.

Definitions :
1. R.G. Gettle:
“Nationality is a population having the common bonds of Race, Language, Religion, Traditions and History.

2. J.H. Rose :
“Nationality is a union of Hearts once made and never unmade”.

3. J.W. Garner:
“Nationality is a group or portion of population which is united by Racial and other bonds”.

Essential Elements of Nationality :

1) Purity of Race :
Racial purity helps in the formation and strengthening of the idea of Nationality. Race is a physical phenomenon. It depends on certain distinctions of skull, stature, hair, complexion etc. These distinctions serve as a cementing bond among the members of a group.

But we should remember that common race is not an indispensable factor in the growth of Nationality. Modem races are so mixed that none of them can claim to be pure. Pure races have disappeared because of wars and migrations. Racial purity is now a myth only.
Ex : Canada and United states have transformed into single nations inspite of their racial diversities in their respective populations. Similarly, Australia and Britain are two distinct Nations although they belong to one racial stock.

2) Common Language :
Language plays a key role in the promotion of nationality. The philosophers and scientists said that common language is essential for the development of nationality. Language is a medium to express all their feelings. It helps to express one’s ownselves to have cordial relations and to share the miseries and happiness in a group languages also promotes common feelings and traditions. Common language promotes the feeling of oneness and keeps the entire race on single track.

3) Common Religion:
Religion is one important factor to strengthen nationality. There are many instances when people of different nationalities with common religion remain citizens in the same state. For instance, the main reason for the partition of Indian subcontinent into India and Pakistan in 1947 lies in the religion.

4) Geographical Unity :
Geographical unity is necessary for the emergence of nationality. Nationality sentiments prevail and develop among the people living in a single geographical area. The people residing in such an area love, worship their country and make sacrifices for the sake of their motherland. People, who belong to one religion, converse the same language, same race living in a geographical area inculcate- and improve their nationality sentiments. The formation of Israel in 1946 was purely due to the feelings of the hitherto wandering Jewish people to live in a single geographical area. Hence their desire of live in a territory made them united- This ultimately transformed them as patriotic persons.

5) Common History :
Common History is considered as an important element of Na-tionality. It invokes an inspiration among the people and binds them together. Some historical incidents may give a chance to the people to develop national sentiments. Ex : Indians have learnt the lessons of Nationalism from the British legacy.

6) Common Culture:
Culture in its broad sense means a way of life. It is reflected through certain common elements like dress, customs, conventions, food habits, religious beliefs, ethical values etc. They easily develop into a single Nation. These elements bind the people together and hold together.

7) Common Political aspirations :
Nationality sentiments prevail and develop among the people having common political aspirations. The political ideas, conventions, and institutions which were formed due to the single political rule will have a considerable impact and influence over the people. For instance, the Swiss people love very much their direct democratic devices in political matters. Similarly the Americans express the feeling of worship towards their constitution. The British people also feel proud of their political and judicial institutions like rule of law, parliamentary democracy and judicial review etc.

8) Common Economic ties:
This element of nationality has been stressed by ‘Karl Marx’. Since then onwards the importance of this element has been increasing. The Russians have great regard for their economic system, eventhough there exist diversities. Their unflinching love for socialism inspired nationalism among them. They successfully repulsed the attacks of Germany during the Second World War. Thus the common economic ties made them united and integrated them into a nation.

Question 2.
Discuss the relation between Nation and Nationalism.
Answer:
Introduction :
The concepts of Nation and Nationalism have become important components in the domain of International Relations and political science respectively. Both inspired the people of several countries with patriotic feelings prior to the two world wars.

Meaning :
The word “Nation” and “Nationalism” are used as complementary to each other.

The word Nation is derived from a latin word “NATIO” which means “BORN” (BIRTH) or “Common descent”.

Nation:
“Nation is a Nationality which has organised itself into a political body, either independent or desiring to be independent”.

Nationalism :
“Nationalism is a state of mind in which the supreme loyalty of the individual is felt to be due to the Nation state.”

Relationship between “Nation” and “Nationalism”:

1. Nationalism is a psychological feeling prevailing in the minds of the people.
2. People through the feeling of Nationalism sacrifice all their interests for the sake of their Nation.
3. The strong desire of the people of a nationality to emerge as a nation state is nationalism.
4. The seeds of nationalism originated in the cultural renaissance of Europe in 16th century.
5. In French Revolution (1789) pushed the nationalism further in Europe and took to the great heights.
6. The Vienna congress (1815) further supported the cause of nationalism in Europe.
7. The Italian and German unifications boosted the cause of nationalism.
8. The American War of Independence (1774) was a great leap forward in spreading nationalism among the people.
9. The much publicized theory of Nation’s self-determination of Woodrow Wilson in 1917 was further generated hope among the people of the world to form Nation States.
10. The two world wars completed to redraft the European map with the formation of Nation-states.
11. The Freedom struggles and national aspiration of the people of the Asia, Africa, and Latin America are fulfilled with the formation of Nation states immediately after the end of II-World war.
12. The Indian national movement from 1885 to 1947 had fulfilled with the formation of India and Pakistan as an Independent States.

In this regard, we can understand that the feeling of nationalism when it acquires unity and independence. It becomes a Sovereign Nation.
There were some writers who treated the two terms as synonymous.

Question 3.
Write a short note on demand for National Self-Determination.
Answer:
The theory of National self-determination was advocated by the former president of the United States of America, Woodrow Wilson in 1917. It was much publicized and generated hope among the people of the world to form Nation states.

From then onwards, Demands for National self-determination has been raising in different parts of the world. The Right to national self determination has also asserted the national liberation movements in Asia and Africa, when they were struggling against colonial rule. Nationalist movements maintained that political independence would ensure dignity and recognition to the colonised people. They also helped the people by protecting their collective interests. Many Nationalist movements were inspired by the goal of bringing justice and prosperity to the nation.

However, it proved almost impossible to ensure that each cultural group, which claimed to be a distinct nation, could acheive political independence and statehood. As a result, migration of people, border wars and violence have continued to plague many countries in the region. Thus we have the paradoxical situation of nation-states which themselves had acheived independence through struggle now acting against minorities with in their own territories which claim the right to national self-determination. Virtually every state in the world today faces the dilemma of how to deal with the movements of national self-determination and raised doubts about the right to national self-determination.

More and More people began realising that the solution does not lie in creating new states but in making existing states more democratic and equal. That is in ensuring that people with different cultural and ethmic indentives live and co-exist as partners (arising) and equal citizens with in the country. This may be essential not only for resolving problems arising out of new claims for self-determination but also for building a strong and United State.

Question 4.
Write a short note on “Whether India is a Nation”?
(or)
Explain breifly whether India is a Nation.
Answer:
Many western and oriental writers described that India is indeed a Nation. There are strong reasons to justify that India is a nation.

1. Indians have a common history and culture.
2. They have demonstrated their distinct qualities of National integration on many occassions.
3. Indians have expressed their dedication to make unparalled and supreme sacrifices for the accomplishment of Independence.
4. They fought unitedly against the foreign yoke under the leadership of Mahatma Gandhi.
5. Although the people belong to different regions and provinces, they realised the basic fact that they are all first and fore most Indians. Then only, they owe indebtedness to their respective religions and languages.
6. Some common elements concerning national anthem, national heritage, culture constitution and the government inspire the nationalist feelings and inculcate the national integration among the people.
7. Indians demonstrated their distinct qualities of National integration on many occassions. During India’s Aggression by China and Pakistan, the Indians extended unequivocal support to the government.

Short Answer Questions

Question 1.
Briefly explain the essential elements of Nationality.
Answer:
Introduction :
The concepts of Nation and Nationality have become important components in the domain of International Relations and political science respectively. Both inspired the people of several countries with patriotic feeling prior to the two world wars.

The Events that took place in the erstwhile Soviet Union, ethnic Riots between Serbians and croatians in the former Yugo slavia, the unification of East and west Germanies, the peace talks between Israel and Palestine Liberation Organization (PLO) on West Asia etc., reflect the serious concern of the people for realising Nationality and Nation States.

Meaning :
The Word “Nation” is derived from a latin word “NATIO” which means “BORN” (BIRTH) or “Common Descent”.

Definitions :
1. R.G. Gettle:
“Nationality is a population having the common bonds of Race, Language, Religion, Traditions and History.

2. J.H. Rose :
“Nationality is a union of Hearts once made and never unmade”.

3. J.W. Garner:
“Nationality is a group or portion of population which is united by Racial and other bonds”.

Essential Elements of Nationality :

1) Purity of Race :
Racial purity helps in the formation and strengthening of the idea of Nationality. Race is a physical phenomenon. It depends on certain distinctions of skull, stature, hair, complexion etc. These distinctions serve as a cementing bond among the members of a group.

But we should remember that common race is not an indispensable factor in the growth of Nationality. Modem races are so mixed that none of them can claim to be pure. Pure races have disappeared because of wars and migrations. Racial purity is now a myth only.
Ex : Canada and United states have transformed into single nations inspite of their racial diversities in their respective populations. Similarly, Australia and Britain are two distinct Nations although they belong to one racial stock.

2) Common Language :
Language plays a key role in the promotion of nationality. The philosophers and scientists said that common language is essential for the development of nationality. Language is a medium to express all their feelings. It helps to express one’s ownselves to have cordial relations and to share the miseries and happiness in a group languages also promotes common feelings and traditions. Common language promotes the feeling of oneness and keeps the entire race on single track.

3) Common Religion:
Religion is one important factor to strengthen nationality. There are many instances when people of different nationalities with common religion remain citizens in the same state. For instance, the main reason for the partition of Indian subcontinent into India and Pakistan in 1947 lies in the religion.

4) Geographical Unity :
Geographical unity is necessary for the emergence of nationality. Nationality sentiments prevail and develop among the people living in a single geographical area. The people residing in such an area love, worship their country and make sacrifices for the sake of their motherland. People, who belong to one religion, converse the same language, same race living in a geographical area inculcate- and improve their nationality sentiments. The formation of Israel in 1946 was purely due to the feelings of the hitherto wandering Jewish people to live in a single geographical area. Hence their desire of live in a territory made them united- This ultimately transformed them as patriotic persons.

5) Common History :
Common History is considered as an important element of Na-tionality. It invokes an inspiration among the people and binds them together. Some historical incidents may give a chance to the people to develop national sentiments. Ex : Indians have learnt the lessons of Nationalism from the British legacy.

6) Common Culture:
Culture in its broad sense means a way of life. It is reflected through certain common elements like dress, customs, conventions, food habits, religious beliefs, ethical values etc. They easily develop into a single Nation. These elements bind the people together and hold together.

7) Common Political aspirations :
Nationality sentiments prevail and develop among the people having common political aspirations. The political ideas, conventions and institutions which were formed due to the single political rule will have a considerable impact and influence over the people. For instance, the Swiss people love very much their direct democratic devices in political matters. Similarly the Americans express the feeling of worship towards their constitution. The British people also feel proud of their political and judicial institutions like rule of law, parliamentary democracy and judicial review etc.

8) Common Economic ties:
This element of nationality has been stressed by ‘Karl Marx’. Since then onwards the importance of this element has been increasing. The Russians have great regard for their economic system, eventhough there exist diversities. Their unflinching love for socialism inspired nationalism among them. They successfully repulsed the attacks of Germany during the Second World War. Thus the common economic ties made them united and integrated them into a nation.

Question 2.
In what way do “Nation” and “State” differ from each other?
Answer:
Several Nation-States came into existence after the two world wars, on the basis of the principle of self-determination. The terms “Nation” and “State” were used synonymously. Even the political experts used both these words homogeneously and intermixingly as if both had same meaning. However, in practice both these terms are not same and identical.

Nation:
“Nation is a nationality which has organized itself into a political body either Independent or desiring to be independent”.

State :
“State is a people organized for law within definite territory”.

Differences:
The concepts of Nation and State differ from one another from the following points of view:

Nation	State
1) Nation is an independent political community or an integral part of a multi-national state.	1) State may consist of the people of the same nation or many nations.
2) Nation preceeds the state.	2) State follows the nation. The final form of a nation is the accomplishment of statehood.
3) Nation is historical and cultural in its evolution.	3) State is political and legal structure.
4) Nation is the community of people who exist together for a common goal and who were united by psychological feeling of oneness.	4) State is a people organised by law in a definite territory.
5) Nation is the culmination of a long coexistence of the people.	5) State need not be evolutionary in nature. It may come into existence either by unification of the smaller independent political communities or by partition.

Question 3.
Describe the various phases of Nationalism.
Answer:
Introduction :
Nationalism is an effective force in modern politics. Nationalism is a psychological feeling prevailing in the minds of the people. People through this feeling sacrifice all their interests for the sake of their nation.

Meaning :
Nationalism is a state of mind in which the supreme loyalty of the Individual is felt to be due to the Nation State.

Broadly speaking the term “Nationalism” is generally used to describe two phenomenon. They are mentioned as follows :

1. The attitude of the members of a Nation towards their national identity.
2. The action of the members of a Nation towards the goal of achieving self-determination.

Different (or) various phases of Nationalism :
According to Snyder, there are four phases of nationalism namely.

1) Integrative Nationalism (1815 – 71) :
During this period nationalism was a unifying force and found solid expression in the unification of Italy and Germany.

2) Disruptive Nationalism (1871-90) :
During this period, subject nationalities of Austria – Hungary and other multinational states clamoured for independence.

3) Aggressive Nationalism (1890-1945) :
During this period, Nationalism became virtually identical with aggressive imperialism. This led to the clash of opposing national interests in the form of two world wars.

4) Contemporary Nationalism :
During the early years of the contemporary period, political nationalism manifested in the form of revolts against European Masters. Nationalism indeed has become a slogan, A school of thought, a movement and a fight for certain political or sovereign objective in Afro-Asian and Latin American countries.

Question 4.
Describe the relative importance of”Nation” and “Nationality”.
Answer:
The concepts of Nation and Nationality laid formidable foundations to several modem political systems. These concepts promoted the bonds of unity, fraternity and integrity among the people of a particular country. The existence of the modem states is by and large, rooted in these zealous concepts.

The two concepts have similarity in their origin. Both the words were derived from a latin word “Natio” which means birth or descent. Some political writers like lord Bryce and Hayes described that people will form into a nation when they achieve political independence. Such a nation originates when people had sentiments.

A state emerges due to the influence of nationality and nation. Nationalism and nationality profoundly influenced the people of a nation in building their own states and moulding their economic prosperity. The concepts of the nation and nationality transformed the people of Europe, Afro-Asian and latin American countries into nation-states hence, these great ideals strengthened understanding and unity among the people.

Question 5.
What are the differences between Nation and Nationality? [A.P. Mar. 19, 18; T.S. Mar. 15]
Answer:
The concepts of Nation and Nationality laid formidable foundations to several modem political systems.

Nation :
“Nation is a nationality which has organised itself into a political body either independent or desiring to be independent”.

Nationality:
“Nationality is a population having the common bonds of race, language, religion, traditions and history”.

Differences between Nation and Nationality :

Nation	Nationality
1) Nation is a political concept.	1) Nationality is a psychological feeling.
2) Nation is always a politically organised state.	2) Nationality is always an unorganised and flexible feeling.
3) Nation is always independent.	3) Nationality is not independent.
4) There can’t be a nation without nationaltiy.	4) There can be nationality without a nation.
5) People who form into a nation should obey the laws of the state.	5) Untill the people of nationality form into a nation. There can’t be constitutional laws. But they oblige certain common rules in their best interests.

Question 6.
Write a short notes on National Self-Determination.
Answer:
The theory of national self-determination was advocated by the former president of the United States of America, Woodrow Wilson in 1917. From then onwards nationalism became a world-wide phenomenon. This principle implies that every nation should be organised as an independent political entity. It raises the question whether every nationality has the right to be a self governing or sovereign state.

Nations, unlike other social groups, seek the right to govern themselves and determine their future development. In making this claim, a nation seeks recognition and acceptance by the international community of its status as a distinct political entity or state. Quite often these claims come from the people who lived together in a given land for a long period having sense of common identity. Such claims of self-determination were frequently made in the 19th century in Europe. The nation of one culture – one state began to gain acceptability at that time. Subsequently, this idea was employed while reordering state boundaries after the first World war. The treaty of Versailles led to the formation of several small and newly independent states.

The Right to national self-determination has asserted the National liberation movements in Asia and Africa when they were struggling against colonial rule. Nationalist movements maintained that political independence would ensure dignity and recognition to the colonised people.

Question 7.
Is India a Nation State? Explain.
Answer:
It is interesting to know whether India is a Nation-State. Some say that India is a uni-national state. As against this some state that it is a Multi-National State. It is argued that India is a Uni-National State rather than a Multi-National State due to the following reasons.

1. It consists of people who possess the features of uni-national state like common history, common culture and traditions.
2. The Indians showed their spirit of National integration on many occassions after in-dependence.
3. They stood as one and extended support to their government when our country was faced with wars from Pakistan and China in 1962 and 1965 respectively.
4. They stood united under the leadership of Mahatma Gandhi throughout the freedom struggle against the British rule in India.
5. From the begining, our country won name and fame for its unity in diversity. Even- though the people of India belong to different regions, they are Indians first and Indians in the last resort i.e., they owe indebtedness to their respective religions and languages.
6. Some common elements concerning national anthem, national heritage, culture, constitution, national flag and the government inspire the nationalist feelings and inculcate the national integration among the people.
7. People celebrate all the national festivals with great enthusiasm and spirit.

Hence we may say that India is a nation state with the characteristic features of unity in diversity.

Very Short Answer Questions

Question 1.
What is meant by Nationality?
Answer:
Nationality is derived from the Latin word “Natio”. which means birth. It is a spiritual sentiment or feeling of oneness. This emotional feeling of oneness or unity is caused due to factors like common race, common language, common religion, common territory, common history and culture, common political aspirations etc. Nationality is not politically organised. There can be no nation without nationality.

Question 2.
Define Nation.
Answer:
Nation is derived from two Latin words – “Nates” and “Natio” which means birth. Lord Bryce defined it as “A Nation is a nationality which has organised itself into a political body, either independent or desiring to be independent. “It means that the people of country are called as a National if they are united by characteristics of nationality and have a strong desire for political independence or if they are politically free.

Question 3.
Write any two differences between Nation and State.
Answer:

Nation	State
1. Nation is an independent political community or an integral part of a Multi-National state.	1. State may consist of the people of the same Nation or many nations.
2. Nation is Historical and cultural in its evolution.	2. State is a political and Legal structure.

Question 4.
Mention any two connotations of Nationality.
Answer:

1. Nationality Refers to the legal status of citizens in a particular state. Here it refers to one’s status as a citizen of the state which he belongs to.
2. Nationality denotes a particular kind of feelings and sentiments that binds the people together. It differentiates such people from these of other Nationalities.

Question 5.
Mention any two essential elements of Nationality.
Answer:
Nationality is derived from the Latin word “Natio”. Which means birth. It is a spiritual sentiment or feeling or oneness. This emotional feeling of oneness or unity is caused due to factors like common race, common language, common religion, common territory, common history and culture, common political aspirations etc. Nationality is not politically organised. There can be no nation without nationality.

Question 6.
What is the importance of Nationalism?
Answer:
Nationalism is an effective force in modem politics and it played prominent role in the world Affairs. It’s importance can be analysed from the following points.

1. Nationalism inspired the people and created deep hatredness among the people.
2. It helped in liberalising the people from oppressive rule.
3. It became a deciding factor in the breakup of many empires and states.

Question 7.
Write any two merits of Nationalism.
Answer:

1. Nationalism made the people obey the government.
2. It helped in achieving the progress of a nation in a short period.

Question 8.
Mention any two de-merits of Nationalism.
Answer:

1. Nationalism makes the people extremely proud, Jealous and arrogant as was clear from the history of Germany and Italy.
2. It leads to unnecessary and unhealthy competition among the nations is economic matters.

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 2nd Lesson State Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 2nd Lesson State

Long Answer Questions

Question 1.
Define State and explain its essential elements.
Answer:
Introduction:
State is an important political organisation. The study of political science begins and ends with the state. The term state for the first time, was used by an Italian political thinker, Machiavlly in his famous book “The Prince” in 16th century.

Meaning :
The word state is derived from a Tuetonic word “status” which means political organisation.

Definitions:

1. “State is a people organised for law within a definite Territory” – Woodrow Wilson.
2. “State is a politically organised people of a definite Territory” – Bluntschlli.
3. “State is a territorial society divided into government and subjects claiming within its allotted physical area, a supremacy over all other institutions. – Harold. J. Lasld.

Essential elements of state:
State is the predominant and superior politico – social institution existing in the society. It consists of 4 essential elements. These elements of state may be explained in a detailed way in the following paragraphs.

1) Population :
Population is the fundamental and essential element of state. There can be no state without population. Plato, Aristotle, Rousseau and others considered this feature as an important one. The famous poet Sri. Gurajada Apparao also states that it is the people, rather than the land, that comprise the state. Political writers differ in their opinions regarding the exact size of population possessed by the state.

While Plato fixed 5,040, Rousseau fixed 10,000 to be an ideal population for a state. But today we can find the countries like China and India which have more than 100 crores of population on one hand and the countries like Andora, San Marino are having small number of people on the other hand is the modem world.

2) Territory:
Territory is another essential element of the state. It is necessary for the origin and existence of the state. There can be no state without territory. Every state must have more or less territory of its own. There is no unanimous opinion among the political writers regarding the size of territory of the state. Some preferred vast territory, where as others preferred small territory. But today we can find the countries like America and Canada having large territory on one hand, and the countries like Vatican, Monaco having very less territory on the other hand in the modem world.

3) Government:
Government is the third essential element of the state. There can be no state without government. State enforces its authority through the government. Government consists of 3 organs namely
Legislature – which makes laws
Executive – which implements laws and
Judiciary – which interpretes laws.

Government are of different kinds namely, Unitary, Federal, Parliamentary and Presidential governments. Governments are at different levels like Local, State level and National level.

4) Sovereignty:
Sovereignty is the most essential element of the state. It is spirit and soul of the state. There can be no state without sovereignty. It distinguishes the state from other associations and institutions. Sovereignty is the supreme political power of the state over citizens and subjects.

Question 2.
In what aspects do state and Government differ from each other? Explain.
Answer:
Introduction :
We often use the terms “State” and “Government” indiscriminately one for the other”. State means government in practice” said by H.J. Laski. “State means almost government machinery”.

Relationship between State and Government:
The relationship between state and government can be discussed as follows.
1) Both are established by individuals :
State and government are two important organizations established by Individuals. The two came into existence for protecting the people and for regulating the conditions between them.

2) Complementary :
State is the government for all practical purposes. Government carries on its activities in the name of the state whatever government does. It does in the name of the state. The Stuart king in England and Louis XIV in France viewed the state and government as complementary.

3) The will of the state expressed by the government:
Government is an important element of state. The collective will of the state is expressed and implemented through government. Government is described as the “Brain of state”. Laws which reflect the will of the state are formulated and given effect only by the government.

Differences between State and Government :
The following are the differences between state and government.

State	Government
1. State has four elements namely population, territory, government and sovereignty.	1. Government is one of the essential elements of the state.
2. State is a permanent organisation.	2. Government is a temporary organisation.
3. State consists of the whole body of people – The rulers and the ruled.	3. Government consists of only the rulers.
4. State has the sovereignty.	4. Government does not have sovereignty.
5. State is the master.	5. Government is the servant.
6. Membership of the state is compulsory.	6. Membership in government is not compulsory. to that of state is narrow.
7. All states are alike in the sense they possess the same four features (or) elements like Population, Territory, Government and Sovereignty.	7. Governments are different types, viz. Parliamentary – Presidential – Unitary – Federal, Democratic – Dictatorial etc.
8. Peoples are not entitled to revolt against the state.	8. People have the right to oppose and criti-cize the policies and programmes of the government.
9. The scope of state when compared to that of government is wider.	9. The scope of government when compared to that of state is narrow.

Question 3.
Explain the relationship and differences between State and Society.
Answer:
Introduction :
State and society are two important human organizations. Maclver described that blood relationship (kinship) created society and society in turn led to the state.

State :
State is a people organized for law within a definite territory.

Society :
Society is a group of men brought together by a system of common ideas, interests and aspirations.

Relationship between State and Society :
The relationship between state and society can be discussed as follows.

1) Common features:
State and society have some common features. The two sometimes include practically. The same persons most cases, a vast majority of the members of a society may be included in the same state.

2) Complementary:
State and society go hand in hand. They help each other. Social progress depends upon the progress of the state. The working of the state is influenced by social customs and traditions.

3) Synonymous :
State and society were considered as the same in the past. In the beginning the Greek Philosophers and later the Idealists viewed the city states and society as synonymous.

4) Inter related:
State regulates the external conduct of individuals in society through laws. It provides a broad frame work of social order. Society nourishes the state with economic, cultural, religious and humanitarian activities. Thus state and society cannot be completely separated as different entities.

Differences between State and Society:
Inspite of close relationship, state and society differ from one another. This may be informed through the following table.

State	Society
1. State is a political organization.	1. Society is a social organization.
2. State regulates only the external relation of men in society.	2. Society controls both internal and external activities of men in society.
3. State possess the power of compulsion. Disobedience to its laws leads to punishment.	3. Society does not possess the power of compulsion. Disobedience to its principles does not leads to any physical punishment.
4. State derives its strength mainly from laws.	4. Society derives its strength from customs, conventions and traditions.
5. State has definite territory.	5. Society has no definite territory.
6. State has the sovereignty.	6. Society has no sovereignty.
7. Membership of the state is compulsory.	7. Membership of the society is voluntary.
8. State is permanent.	8. Society is not permanent.
9. Laws of the state are uniform.	9. Rules of society are not uniform.
10. State came into existence after the origin of society.	10. Society is much older institution than the state.

Question 4.
Describe the relationship and differences between State and Association.
Answer:
Introduction :
The social nature of man finds expression in numerous groups and associations which satisfy his various needs in life. Man cannot live in isolation. He seeks the cooperation and help of others to fulfill his needs and to develop his personality.

Intimate social relationship for achieving certain ends or purposes gives rise to the formation of associations.

State :
State is people organized for law within a definite territory.

Association :
Association is a group of people united for a specific purpose or a limited number of purposes.

Relationship between State and Association :
The state and association are related in the following aspects.
1) Same membership :
Both the state and other associations consist of a group of same human beings. So the same individuals remain members of both the state and associations.

2) Common interests:
Both are created and organized for the pursuit of an interest or a group of interests. Promotion of common interests in the moving force behind all forms of associations including the state.

3) Organization:
Both are characterized by organizations and a well-knit framework for realizing their objectives. Both regulate the activities of members. Both view cooperation as the basis among the members.

4) Code of conduct:
Both have a code of conduct denoting some rules and regulations. The code of conduct keeps the members together. It ensures stability to the organization.

5) Executive :
Every state will have an executive agency known as the government. Similarly every association will have an executive council for implementing its decisions.

Differences between State and Association :
State and association differ from one another in the following matters.

State	Association
1. State is a political organization.	1. Association is a social organization.
2. State has definite territory.	2. Association has no definite territory.
3. State has the sovereignty.	3. Association has no sovereignty.
4. Membership of the state is compulsory.	4. Membership of the association is not compulsory.
5. State is permanent.	5. Association is not permanent.
6. State is superior to the associations.	6. Associations are inferior to the state.
7. The scope of state is wide.	7. The scope of association is limited.
8. State can interfere in the affairs of the associations.	8. Associations can’t interfere in the affairs of the state.
9. Laws of the state are uniform.	9. Rules of association are not uniform.
10. State strives for the welfare and progress of all the people.	10. Associations are meant for realising the interests of the members only.

Short Answer Questions

Question 1.
Explain any two essential elements of the State.
Answer:
Essential elements of state :
State is the predominant and superior politico-social institution existing in the society. It consists of 4 essential elements. These elements of state may be explained in a detailed way in the following paragraphs.

1) Population :
Population is the fundamental and essential element of state. There can be no state without population. Plato, Aristotle, Rousseau and others considered this feature as an important one. The famous poet Sri. Gurajada Apparao also states that it is the people, rather than the land, that comprise the state. Political writers differ in their opinions regarding the exact size of population possessed by the state.

While Plato fixed 5,040, Rousseau fixed 10,000 to be an ideal population for a state. But today we can find the countries like China and India which have more than 100 crores of population on one hand and the countries like Andora, San Marino are having small number of people on the other hand is the modem world.

2) Territory:
Territory is another essential element of the state. It is necessary for the origin and existence of the state. There can be no state without territory. Every state must have more or less territory of its own. There is no unanimous opinion among the political writers regarding the size of territory of the state. Some preferred vast territory, where as others preferred small territory. But today we can find the countries like America and Canada having large territory on one hand, and the countries like Vatican, Monaco having very less territory on the other hand in the modem world.

Question 2.
What are the other elements of State?
Answer:
Introduction:
State is an important political organization. It was established for regulating and improving the relations between individuals.

Definition :
“State is a people organised for law within a definite territory”. -Woodrow Wilson

Besides essential elements namely, population, territory, government and sovereignty, state will also have the other elements.

Other elements of the state :
1) International recognition :
It implies recognition of the sovereign status of a state by other states. This feature has gained currency due to the immerse technologlical and scientific advancements. The man of today is not only a member in his state but also a member of the entire world at large. Today majority of the countries of the world are joining in one or the other international associations to obtain certain benefits.

The United Nations Organisation is the best example for such associations. It’s membership is considered to be necessary for attaining perfect and complete statehood. Whenever a .new state comes into existence, it’s recognition by other states and by UN is considered as very essential.

2) Permanence :
State is a permanent institution. If the state surrenders to the other states during war or Aggression. It loses its significance but not the feature of permanence. Sometimes through the process of integration or disintegration, the states will change the form of their existence for instance. In 1990’s Soviet Union (Former USSR) got disintegrated and new 15 independent states came into being.

3) General obedience :
General obedience implies the supreme power of the state overall the individuals and institutions within its territorial limits. No person or association can deny the power or authority of the state. People can criticise the policies and programmes of the government but not the state. The obedience to the state is mandatory on the part of the people.

4) Popular will:
Willoughby stated that the will of the people is an important element of the stae. State continues to exist as long as it is supported by the majority of the people. The strong desire for protecting the state against invasions and internal revolutions is compulsory for the continuation of the state.

Question 3.
What do you know about Government and Sovereignly as the two essential elements of State?
Answer:
Government: Government is the third essential element of the state. There can be no state without government. State enforces its authority through the government. Government consists of 3 organs namely
Legislature – which makes laws
Executive – which implements laws and
Judiciary – which interpretes laws.

Government are of different kinds namely, Unitary, Federal, Parliamentary and Presidential governments. Governments are at different levels like Local, State level and National level.

Sovereignty :
Sovereignty is the most essential element of the state. It is spirit and soul of the state. There can be no state without sovereignty. It distinguishes the state from other associations and institutions. Sovereignty is the supreme political power of the state over citizens and subjects.

Question 4.
Describe the relationship between State and Society.
Answer:
Introduction : State and society are two important human organizations. Maclver described that blood relationship (kinship) created society and society in turn led to the state.

State :
State is a people organized for law within a definite territory.

Society :
Society is a group of men brought together by a system of common ideas, interests and aspirations.

Relationship between State and Society :
The relationship between state and society can be discussed as follows.

1) Common features:
State and society have some common features. The two sometimes include practically. The same persons most cases, a vast majority of the members of a society may be included in the same state.

2) Complementary:
State and society go hand in hand. They help each other. Social progress depends upon the progress of the state. The working of the state is influenced by social customs and traditions.

3) Synonymous :
State and society were considered as the same in the past. In the beginning the Greek Philosophers and later the Idealists viewed the city states and society as synonymous.

4) Inter-related:
State regulates the external conduct of individuals in society through laws. It provides a broad frame work of social order. Society nourishes the state with economic, cultural, religious and humanitarian activities. Thus state and society cannot be completely separated as different entities.

Question 5.
Point out the differences between State and Society. [A.P. Mar, 19, 15]
Answer:
Introduction :
State and society are two important human organizations. Maclver described that blood relationship (kinship) created society and society in turn led to the state.

State :
State is a people organized for law within a definite territory.

Society :
Society is a group of men brought together by a system of common ideas, interests and aspirations.

Differences between State and Society :
Inspite of close relationship, state and society differ from one another. This may be informed through the following table.

State	Society
1. State is a political organization.	1. Society is a social organization.
2. State regulates only the external relation of men in society.	2. Society controls both internal and external activities of men in society.
3. State has definite territory.	3. Society has no definite territory.
4. State has sovereignty.	4. Society has no sovereignty.
5. Membership of the state is compulsory.	5. Membership of the society is voluntary.
6. State is permanent.	6. Society is not permanent.
7. Laws of the state are uniform.	7. Rules of society are not uniform.
8. State came into existence after the origin of society.	8. Society is much older institution than the state.

Question 6.
What is the relationship between State and Association.
Answer:
Introduction :
The social nature of man finds expression in numerous groups and associations which satisfy his various needs in life. Man cannot live in isolation. He seeks the cooperation and help of others to fulfill his needs and to develop his personality.

State :
State is people organized for law within a definite territory.

Association :
Association is a group of people united for a specific purpose or a limited number of purposes.

Relationship between State and Association :
The state and association are related in the following aspects.

1) Same membership :
Both the state and other associations consist of a group of same human beings. So the same individuals remain members of both the state and associations.

2) Common interests:
Both are created and organized for the pursuit of an interest or a group of interests. Promotion of common interests in the moving force behind all forms of associations including the state.

3) Organization:
Both are characterized by organizations and a well-knit framework for realizing their objectives. Both regulate the activities of members. Both view cooperatiorf as the basis among the members.

4) Code of conduct:
Both have a code of conduct denoting some rules and regulations. The code of conduct keeps the members together. It ensures stability to the organization.

5) Executive :
Every state will have an executive agency known as the government. Similarly every association will have an executive council for implementing its decisions.

Question 7.
Mention the differences between State and Association.
Ansnswer:
Introduction :
The social nature of man finds expression in numerous groups and associations which satisfy his various needs in life. Man cannot live in isolation. He seeks the cooperation and help of others to fulfill his needs and to develop his personality.

State :
State is people organized for law within a definite territory.

Association :
Association is a group of people united for a specific purpose or a limited number of purposes.

Differences between State and Association :
State and association differ from one another in the following matters.

State	Association
1. State is a political organization.	1. Association is a social organization.
2. State has definite territory.	2. Association has no definite territory.
3. State has sovereignty.	3. Association has no sovereignty.
4. Membership of the state is compulsory.	4. Membership of the association is not compulsory.
5. State is permanent.	5. Association is not permanent.
6. State is superior to the associations.	6. Associations are inferior to the state.
7. Laws of the state are uniform.	7. Rules of association are not uniform.
8. State can interfere in the affairs of the associations.	8. Associations can’t interfere in the affairs of the state.

Question 8.
In what way are State and Government related?
(Or)
Explain the relationship between State and Government.
Answer:
Introduction :
We often use the terms “State” and “Government” indiscriminately one for the other”. State means government in practice” said by HJ. Laski. “State means almost government machinery”.

State :
State is a people organized for law within a definite territory.

Government:
Government is an instrument which fulfills aims and goals of the state

Relationship between State and Government:
The relationship between state and government can be discussed as follows.

1) Both are established by individuals :
State and government are two important organizations established by Individuals. The two came into existence for protecting the people and for regulating the conditions between them.

2) Complementary :
State is the government for all practical purposes. Government carries on its activities in the name of the state. Whatever government does. It does in the name of the state. The Stuart king in England and Louis XIV in France viewed the state and government as complementary.

3) The will of the state expressed by the government:
Government is an important element of state. The collective will of the state is expressed and implemented through government. Government is described as the “Brain of state”. Laws which reflect the will of the state are formulated and given effect only by the government.

Question 9.
Distinguish between State and Government.
Answer:
Introduction :
We often use the terms “State” and “Government” indiscriminately one for the other”. State means government in practice” said by H.J. Laski. “State means almost government machinery”.

State :
State is a people organized for law within a definite territory.

Government:
Government is an instrument which fulfills aims and goals of the state.

Differences between State and Government :
The following are the differences between state and government.

State	Government
1. State has four elements namely population, territory, government and sovereignty.	1. Government is one of the essential elements of the state.
2. State is a permanent organisation.	2. Government is a temporary organisation.
3. State consists of the whole body of people – The rulers and the ruled.	3. Government consists of only the rulers.
4. State has the sovereignty.	4. Government does not have sovereignty.
5. State is the master.	5. Government is the servant.
6. Membership of the state is compulsory.	6. Membership in government is not compulsory.
7. All states are alike in the sense they possess the same four features (or) elements like Population, Territory, Government and Sovereignty.	7. Governments are different types, viz. Parliamentary – Presidential – Unitary – Federal, Democratic – Dictatorial etc.

Very Short Answer Questions

Question 1.
Mention any two definitions of state.
Answer:

1. “State is a people organised for law within a definite Territory”. – Woodrow Wilson
2. “State is a politically organised people of a definite Territory”. – Bluntschlli.

Question 2.
How many essential elements does the State possess? What are they? [T.S. 2017]
Answer:
State consists of four essential elements. They are :

1. Population
2. Territory
3. Government and
4. Sovereignty.

Question 3.
What do you mean by ‘Government’? [T.S. Mar, 15]
Answer:
Government is the third essential element of the state. There can be no state without government. It is an instrument which fulfills aims and goals of the state.

Question 4.
How many other elements does the State possess? Name them.
Answer:
Besides Population, Territory, Government, and Sovereignty, state will also possess four other elements. They are :

1. International recognition
2. Permanence
3. General obedience and
4. Popular will.

Question 5.
What do you know about ‘Society’?
Answer:
The term “Society” refers to the interaction of complex norms among the people. It can be defined as a group of men brought together by a system of common ideas, interests, and aspirations. It is a voluntary association. It’s membership is optional. It originated much earlier than the state.

Question 6.
What do you mean by ‘Association’?
Answer:
Association is a group of people united for a specific purpose or a limited number of purposes. Associations are of various types viz., social, economic, political, cultural, religious etc. It’s membership is optional. A person can be a member of a numer of associations.

Question 7.
Write about the qualitative aspect of the population of a State.
Answer:
The qualitative aspect of the population is more important for a state. Aristotle rightly said that good citizens make a good state. If the people are committed, disciplined, hard working, honest and intelligent, then the state achieves rapid progress.

Question 8.
Does a state require International recognition?
Answer:
It implies recognition of the sovereign status of a state by other states. This feature has gained currency due to the immerse technologlical and scientific advancements. The man of today is not only a member in his state but also a member of the entire world at large. Today majority of the countries of the world are joining in one or the other international associations to obtain certain benefits.

The United Nations Organisation is the best example for such associations. It’s membership is considered to be necessary for attaining perfect and complete statehood. Whenever a new state comes into existence, it’s recognition by other states and by UN is considered as very essential.

Question 9.
Mention any two differences between State and Society.
Answer:

State	Society
1. State is a political organization.	1. Society is a social organization.
2. State regulates only the external relation of men in society.	2. Society controls both internal and external activities of men in society.

Question 10.
Write about any two differences between State and Government.
Answer:

State	Government
1. State has four elements namely population, territory, government and sovereignty.	1. Government is one of the essential elements of state.
2. State is the master.	2. Government is the servant.

Question 11.
How many organs of Government are there? Explain their functions briefly.
Answer:
Government is the third essential element of the state. It is an instrument which fulfills aims and goals of the state. Government consists of three organs viz.,
i) Legislature :
Law making organ. Ex : Parliament.

ii) Executive :
Law implementing organ. Ex : Council of Ministers.

iii) Judiciary:
Justice administering organ. Ex : Supreme court and High courts.

Question 12.
Mention any two differences between State and Association.
Answer:

State	Association
1. State is a political organization.	1. Association is a social organization.
2. State has sovereignty.	2. Association has no sovereignty.

Andhra Pradesh BIEAP AP Inter 1st Year Civics Study Material 1st Lesson Scope and Significance of Political Science Textbook Questions and Answers.

AP Inter 1st Year Civics Study Material 1st Lesson Scope and Significance of Political Science

Long Answer Questions

Question 1.
Define Political Science and explain its scope. [A.P. Mar, 17, 16, 15]
(or)
Explain the scope of Political Science.
Answer:
Introduction :
Political Science is a premier social science. It is mainly concerned with the study of the state in its relation to Society, Citizens, Associations, and the world at large. Aristotle is hailed as the Father of Political Science. He wrote the famous book “THE POLITICS”.

Origin of the word Politics :
Aristotle, the Father of Political Science used the term “POLITICS” for the first time in his famous book “POUTICS”. The term “POLITICS” is derived from a greek word “POLIS” and latin word “POLITICUS” which means the city state.

Definitions of Political Science :
Political Scientists gave various definitions on Political Science. They are as follows :
1. J.W. Gamer:
“Political Science begins and ends with the state”.

2. Stephen Leacock:
“Political Science deals with the government”.

3. David Easton :
“Political Science is concerned with the authoritative allocation of values for a society”.

Scope of Political Science :
The scope of Political Science means the subject matter covered by it or the topics which are included in its study. It may be explained in the following ways :

i) Study of man in Relation to the Society and State :
Aristotle stated that “Man is a Social Animal”. Man can satisfy his basic needs like food, clothing, shelter and protection in the society. Political Science explains the relationship beween man and society. It examines how man should adjust himself with the societys. It is imperative that the modem man should develop proper attitude towards the society. This is possible only when he identifies himself with the society.

Political Science is concerned with the perennial and central issue of establishing proper relationship between the state and the individuals. It deals with many topics of state activity, such as limitations of Political Authority and sphere of Individual Freedoms.

ii) Study of State :
Aristotle also stated that man is a Political Animal. State is a human and political institution. It came into existence for the sake of man and continue in existence for providing happy and prosperous life for man. Individuals became members of the state since, its inception. We can’t imagine the life of individuals outside of the state. Political Science studies the intimate Relationship between the state and the citizens. It also studies the Nature, Functions and Various theories of state authority.

It also comprises a study of the various activities of the state from that of ancient police state to the modem welfare state. Thus, Political Science deals with the Present, Past and FUture aspects of the state.

iii) Study of the Government :
Government is an important essential element of Modem State. It is an instrument which fulfills aims and goals of the state. There can be no state with out a government. Government formulates, expresses and implements the will of the state. Government consists of three organs namely Legislature, Executive and Judiciary. Legislature makes the laws, Executive implements the laws and Judiciary interpretes the laws. Political Science studies the meaning, forms, structure, nature and functions of the government. It also discusses the relationship among the various organs of the government. Hence, Political Science is treated as a science of government.

iv) Study of Associations and Institutions :
Associations and Institutions help the Individuals for their moral, religious, cultural, scientific and technological progress. These carry on their activities at local, regional, national and international levels. Individuals join as members in these Associations out of their interests or purposes. There prevails a great linkage between these voluntary Associations and Institutions. Associations and Institutions in Modem times play a significant role in the Formulation and Implementation of policies of the state and government. Voluntary bodies such as trade unions, peasant groups, professional bodies etc., will have a great impact on the state and government. Political Science explains the nature, structure and functions of the various Associations and Insti-tutions.

v) Study of Rights and Responsibilities:
Scope of Political Science includes the study of Rights and Responsibilities of citizens. Citizens in democratic states enjoy certain rights such as right to life, right to liberty, right to property etc. Political Science enumerates the definition, classification and different theories of Rights. Similarly, citizens will have some Responsibilities towards the state. These include paying taxes, obeying the laws etc. It explains the significance of Rights and Responsibilities of the citizens. Hence, Political Science examines the Realtionship between Rights and Responsibilities.

vi) Study of National and International Issues:
The scope of Political Science covers various issues of Modem state in relation with other states in matters of safeguarding Ter-ritorial integrity and Sovereignty. It studies the topics like Cold war, Balance of power, Disarmament, Detente etc. Modem states are not isolated. They depend upon other states in many spheres like importing raw materials, exporting finished goods, transport, technology, services and communications. This requires close relations among the states in international sphere. Political Science discusses not only the domestic policies of the state but also the issues of international dimensions. It covers a wide range of topics such as diplomacy, international politics, international law, international organisations etc.

vii) Study of Power:
The behaviouralists of 20th century regarded Political Science as a study of sharing and shaping of power. They pointed out that Political Science discusses how power is grabbed, manipulated anti perpetuated to have a control over the society. Morgenthau defined the power as “Man’s control over the Minds and Actions of other Men”.

viii) Study of Public Policy:
Modem Political Scientists like David Easton and Gabriel Almond argued that Political Science is a “Policy Science”. They considered Political Science as the study Of formulation, execution and evaluation of Public Policy, with the advent of Public Policy the scope of Political Science has further widened to include the dimensions of vital topics such as Industrial Policy, Agricultural Policy, Land Reform Policy, Education Policy, Population Policy etc. Public Policy of a Nation in the context of International Relations plays a crucial role in the formulation of diplomatic, economic, military and scientific strategies.

Conclusion:
The above contents show the wide range of subjects that come under the purview of Political Science.

Question 2.
Discuss the significance of the study of Political Science. [A.P. Mar. 19]
Answer:
The study of Political Science is very useful and valuable. It’s knowledge is indispensible to the rulers as well as the ruled. Its significance or importance is analysed as follows.

i) Information about the State :
The primary aim of studying Political Science is to inculcate knowledge of the state. It’s origin, nature, Structure and functions. Knowledge of the state is of great significance to every one. Solutions to various political issues are found only when we have a proper understanding of the political institutions.

ii) Knowledge of Government and Administration :
The Administrators, political leaders and diplomats who manipulate the affairs of the state require a sound knowledge of political science in order to perform their functions with efficiency. Political Science creates awareness about the organisation, control and coordination of Administrative machinery. It also covers the study of local self-governments like Gram Panchayats, Mandal Parishads, Zilla Parishads, Municipalities, Corporations etc.

iii) Provides information about Democratic values :
Political Science provides accurate information about the various political terms such as State, Government, Nation, Con-stitution, Democracy, Sovereignty, Law etc., which are used commonly. Political Science also provides a good knowledge and awareness about the Democratic values like Liberty, Equality, Fraternity, Justice and Rights.

iv) Makes Democracy Successful:
At present Democracy is in vogue in several coun-tries of the world. It is the best form of government. People in democracy elect their repre-sentatives and are ruled by them. If honest, selfless and committed representatives are not elected, the expectations of the people will not be fulfilled. Political Science explains the significance of Franchise. It educates the common men on the conditions essential for the successful functioning of democratic government.

v) Awareness about rights and responsibilities:
The study of Political Science makes people conscious of their rights and responsibilities. It also enables the citizens to be familiar with their rights and responsibilities and the interrelationship between the two. Its study makes the citizens to realize the fact that a proper exercise of rights and responsibilities is a must for leading civilised life.

vi) Teaches the Qualities of Good Citizenship :
Political Science impacts the best civic knowledge by explaining the qualities of good citizenship like cooperation, sacrifice, patriotism, obedience to the state and to the laws, farsightedness, social service etc. It trains the people to become ideal citizens.

vii) Knowledge about World Affairs:
The study of Political Science enriches individual’s knowledge on World Affairs. Political Science is useful for observing and understanding the contemporary world affairs. It stimulates right thinking, broad vision and universal understanding of various phenomena of international politics. It’s study is useful for proper’ analysis and solution of various National and International Issues.

viii) Provides knowledge about International Organizations :
A citizen of the present is not only a member of the state but also a member of the world at large. The study of Political Science promotes the spirit of internationalism. It provides a good knowledge about International Organizations like United Nations Organisation, SAARC, ASEAN, NAM, OPEC etc. It teaches about the need for harmonious relations among the nations.

ix) Develops Political Awareness :
The study of Political Science is of great impor-tance in the sense that it imports best political knowledge. It explains about the structure and functioning of different political institutions like State Government, Political parties, Occupational Associations. Hence the study of Political Science is the best training ground for knowing, following and practising the art of leadership.

x) Explains the need for Co-Operation and Toleration :
National Integration has become a crucial factor in several states. Many obstacles like communalism, linguism, sub-national regional and sub-regional feelings etc., have been threatening the national inte-gration in these states. In this context, the study of Political Science teaches about the need for adjustment, cooperation and toleration.

xi) Knowledge of Political Science is Indispensable :
The study of Political Science helps everyone to understand the mechanism and constitutional system of modem govern-ments. It creates awareness about the contemporary issues in national and international spheres. If creates awareness about Rights and Responsibilities. It’s study is essentially indispensable for the people in developing nations like India. As the majority people in these states are poor, ignorant, illiterate and sentimental in their out look. The study of Political Science inculcates a good political knowledge among them.

Aristotle regarded Political Science as the supreme science and the master of all social sciences.

Question 3.
Define Political Science and explain its nature.
Answe:
Political Science is a premier Social Science. It is mainly concerned with the study of the state in it’s relation with society, citizens, associations and the world at large. Aristotle is hailed as the Father of Political Science. He wrote famous book ‘THE POLITICS”. The term “politics” is derived from a greek word” “POLIS” and latin word “POLiTICUS” which means the city state.

Definition of Political Science:
Political Scientists gave various definitions on Political Science. They are as follows :
1. J.W. Gamer:
“Political Science begins and ends with the state”.

2. Stephen Leacock:
“Political Science deals with the government”.

Nature of Political Science:
There prevailed a controversy among the political scien-tists in regard to the nature of Political Science. Some viewed Political Science as a science others treated it as an art. Let us examine the two aspects (Science and Art) of Political Science.

i) Political Science is a SCIENCE :
According to political philosophers like Aristotle, Bluntschli, Hobbes, Montesque and others Political Science is considered as a science on the following grounds.

1. Political Science is studied in a systematic manner.
2. Experimentation is possible in politics. Principles are applied in the actual organisation of Political Institutions.
3. Political Science, like other sciences, has absolute and universal laws.
4. Predictions are easily applicable in politics.
5. Certain generally agreed principles can be incorporated into the study of Political Science.
6. Political Science, like other sciences, gives scope for establishing relationship be-tween cause and effect.

ii) Political Science is an ART :
According to political writers like Barker, J.S. Mill, Laski and others Political Science is considered as an ART on the following grounds.

1. Political Science has no absolute and universal laws like physical sciences.
2. The phenomena studied in Political Science are interpreted in various ways de-pending upon the context and situation. So it lacks uniformity in the interpretation of various concepts.
3. Political Science is not evolutionary in nature as its concepts are not developed in a steady, regular and continuous manner.
4. Scientific methods of observation and experimentation are not applicable in political science.
5. Complete objectivity and detachment are not found in the case of various phenom-ena in Political Science.
6. Political Science gives no scope for accuracy.

Short Answer Questions

Question 1.
Write about the traditional definitions of Political Science.
Answer:
Traditional definitions of Political Science may be classified under three sub catego-ries. They are mentioned as follows.
i) Political Science – A Study of the State :
Political philosophers like J.W.Gamer, R.G.Gettle, Appadovai and others defined Political Science as a study of the state.

1. J.W.Gamer:
“Political Science begins and ends with the state”.

2. R.G.GettIe :
“Political Science is a historical investigation of what the state has been, an analytical study of what the state is and a politico-ettical discussion of what the state should be”.

3. Appadorai:
“Political Science is concerned with the conditions essential for the existence and development of the state”.

ii) Political Science – A study of the Government:
Some political philosophers like Stephen Leacock, J.R.Seely and others defined Political Science as a study of the govern-ment.

1. Stephen Leacock :
“Political Science deals with the Government”.

2. J.R.Seely :
“Political Science investigates the phenomenon of the Government”.

iii) Political Science – A study of the State and the Government:
Political philoso-phers like Paul Janet, Gilchrist, Catlin and others defined political science as a study of the state and the government.

1. Paul Janet:
“Political Science is that part of social science which treats the founda-tions of state and the principles of the government”.

2. R.N.Gilchrist :
“Political Science is a study of foundations of the state and the government”.

3. Catlin :
“Political Science is a study of the political activities of individuals and various organs of government”.

Question 2.
What are the various modem definitions of Political Science?
Answer:
Modem definitions of Political Science can be classified into two sub-categories. They are discussed as follows..
i) Political Science – A study of power:
1. Lasswell and Kaplan :
“Political Science as an empirical discipline, is the study of shaping and sharing of power”.

2. William A.Robson :
“Political Science is primarily concerned with the power in society”.

ii) Political Science – A study of Allocation of values :
1. David Easton :
“Political Science is concerned with the authoritative allocation of values for a society”.

2. Hill Man :
“Politics is the Science of who gets what, when, and why”.

Question 3.
Explain about the nature of Political Science.
Answer:
Political Science is a premier Social Science. It is mainly concerned with the study of the state in it’s relation with society, citizens, associations and the world at large. Aristotle is hailed as the Father of Political Science. He wrote famous book ‘THE POLITICS”. The term “politics” is derived from a greek word” “POLIS” and latin word “POLiTICUS” which means the city state.

Definition of Political Science:
Political Scientists gave various definitions on Political Science. They are as follows :
1. J.W. Gamer:
“Political Science begins and ends with the state”.

2. Stephen Leacock:
“Political Science deals with the government”.

Nature of Political Science:
There prevailed a controversy among the political scien-tists in regard to the nature of Political Science. Some viewed Political Science as a science others treated it as an art. Let us examine the two aspects (Science and Art) of Political Science.

i) Political Science is a SCIENCE :
According to political philosophers like Aristotle, Bluntschli, Hobbes, Montesque and others Political Science is considered as a science on the following grounds.

1. Political Science is studied in a systematic manner.
2. Experimentation is possible in politics. Principles are applied in the actual organisation of Political Institutions.
3. Political Science, like other sciences, has absolute and universal laws.
4. Predictions are easily applicable in politics.
5. Certain generally agreed principles can be incorporated into the study of Political Science.
6. Political Science, like other sciences, gives scope for establishing relationship be-tween cause and effect.

ii) Political Science is an ART :
According to political writers like Barker, J.S. Mill, Laski and others Political Science is considered as an ART on the following grounds.

1. Political Science has no absolute and universal laws like physical sciences.
2. The phenomena studied in Political Science are interpreted in various ways de-pending upon the context and situation. So it lacks uniformity in the interpretation of various concepts.
3. Political Science is not evolutionary in nature as its concepts are not developed in a steady, regular and continuous manner.
4. Scientific methods of observation and experimentation are not applicable in political science.
5. Complete objectivity and detachment are not found in the case of various phenom-ena in Political Science.
6. Political Science gives no scope for accuracy.

Question 4.
Mention any three topics coverd under the scope of Political Science.
Answer:
i) Study of man in Relation to the Society and State:
Aristotle stated that “Man is a Social Animal”. Man can satisfy his basic needs like food, clothing, shelter and protection in the society. Political Science explains the relationship beween man and society. It exam- ines how man should adjust himself with the societys. It is imperative that the modem man should develop proper attitude towards the society. This is possible only when he identifies himself with the society.

Political Science is concerned with the perennial and central issue of establishing proper relationship between the state and the individuals. It deals with many topics of state activity, such as limitations of Political Authority and sphere of Individual Freedoms.

ii) Study of State :
Aristotle also stated that man is a Political Animal. State is a hu-man and political institution. It came into existence for the sake of man and continue in existence for providing happy and prosperous life for man. Individuals became members of the state since its inception. We can’t imagine the life of individuals outside of the state. Political Science studies the intimate Relationship between the state and the citizens. It also studies the Nature, Functions and Various theories of state authority.

It also comprises a study of the various activities of the state from that of ancient police state to the modem welfare state. Thus, Political Science deals with the Present, Past and Future aspects of the state.

iii) Study of Associations and Institutions :
Associations and Institutions help the Individuals for their moral, religious, cultural, scientific and technological progress. These cany on their activities at local, regional, national and international levels. Individuals join as members in these Associations out of their interests or purposes. There prevails a great link-age between these voluntary Associations and Institutions. Associations and Institutions in Modem times play a significant role in the Formulation and Implementation of policies of the state and government. Voluntary bodies such as trade unions, peasant groups, professional bodies etc., will have a great impact on the state and government. Political Science explains the nature, structure and functions of the various Associations and Institutions.

Question 5.
Describe the scope of Political Science in the sphere of Government.
Ansnswer:
Scope of Political Science includes the study of government. Some political scientists like Stephen Leacock and John Richard Seeley confined the scope of the discipline to the government alone. Political Science mainly studies about the government Government is an agency of the state. There can be no State without a government. The state realises its aims through the instrument of government. Government formulates, expresses and implements the will of the state. There must be some men or body of men who are authorised to issue orders on behalf of the state. They are known as the government.

Political Science studies the meaning, forms, structure, nature and functions of the government. It discusses the relationship among the various organs of the government. It makes a differentiation between the State and Government. While dealing with the government, Political Science narrates the classification of various governments as given by Aristotle, Leacock and others. Political Science discusses the various merits and demerits, essential conditions and manifold activities of the above governments. Hence, political Science is treated as a science of government.

Question 6.
”Political Science is a study of the present, past and future of the state”. Analyse this statement
Answer:
Political scientists like Gamer and Paul Janet viewed Political Science as a study of the affairs of the state. They conceived the state as a Political Institution. The state is indispensable for every individual. Political Science studies the intimate relationship between the state and the citizens. Political Science studies the state in present, in the past and in future.

i) Study of state in the Present :
Political Science deals with the state as it exists today. It explains the meaning, nature, purpose, growth and functioning of the state. It also deals with public opinion, political parties and pressure groups which seek to capture the political power or influence public policies.

ii) Study of state in the Past:
Political Science explains about the origin and transfor-mation of the state. It also discusses about the diverse political institutions that existed within the state. It studies various factors that influenced the origin and evolution of the state. This sort of historical study is possible only in political science.

iii) Study of State in Future :
Political Science tries to determine the principles and concepts of a model state. It lays down the conditions under which a perfect state is real-ized. Political Scientists conceive the future with a view to improve the standards of political institutions and their activities in the light of changing conditions.

On the whole, the scope of Political Science includes the study of various activities; of the state from that of ancient police state to the modem welfare state. Thus, Political Science deals with the present, past and future aspects of the state.

Very Short Answer Questions

Question 1.
Write about Ancient city states.
Answer:
Ancient Greece consisted of a large number of city states. They were small both in size and population. For example, Athens,Sparta, Corinth. Each city state had its own gov-ernment. The greeks based their political philosophy on the concept of city-state. The popu-lation of the city-state was divided into three groups : 1) Citizens 2) Aliens and 3) Slaves.

Question 2.
Give any two traditional definitions of Political Science.
Answer:
Political scientists gave various definitions on Political Science. They are as follows.

1. J.W.Gamer:
“Political Science begins and ends with the State”.

2. Stephen Leacock:
“Political Science deals with the Government”.

3. David Easton :
“Political Science is concerned with the authoritative allocation of values for a society”.

Question 3.
Write about any two modem definitions of Political Science.
Answer:
Modem definitions of Political Science can be classified into two sub-categories. They are discussed as follows..
i) Political Science – A study of power:
1. Lasswell and Kaplan :
“Political Science as an empirical discipline, is the study of shaping and sharing of power”.

2. William A.Robson :
“Political Science is primarily concerned with the power in society”.

ii) Political Science – A study of Allocation of values :
1. David Easton :
“Political Science is concerned with the authoritative allocation of values for a society”.

2. Hill Man :
“Politics is the Science of who gets what, when and why”.

Question 4.
How does Political Science teach the qualities of good citizenship?
Answer:
Political Science imparts the best civic knowledge by explaining the qualities of good citizenship like cooperation, sacrifice, patriotism, obedience to the state and to the laws, forsightedness, social service etc. It trains the people to become ideal citizens.

Question 5.
Justify the statement that Political Science in an Art.
Answer:
Political Science is an ART:
According to political writers like Barker, J.S. Mill, Laski and others Political Science is considered as an ART on the following grounds.

1. Political,Science has no absolute and universal laws like physical sciences.
2. The phenomena studied in Political Science are interpreted in various ways de pending upon the context and situation. So it lacks uniformity in the interpretation of various concepts.
3. Political Science is not evolutionary in nature as its concepts are not developed in a steady, regular and continuous manner.
4. Scientific methods of observation and experimentation are not applicable in political science.
5. Complete objectivity and detachment are not found in the case of various phenom-ena in Political Science.
6. Political Science gives no scope for accuracy.

Question 6.
On what grounds is Political Science considered as a Science?
Answer:
Political Science is a SCIENCE :
According to political philosophers like Aristotle, Bluntschli, Hobbes, Montesque and others Political Science is considered as a science on the following grounds.

1. Political Science is studied in a systematic manner.
2. Experimentation is possible in politics. Principles are applied in the actual organisation of Political Institutions.
3. Political Science, like other sciences, has absolute and universal laws.

Question 7.
Name any four topics covered under the scope of Political Science.
Answer:
The scope of Political Science comprises the following points.

1. Study of man in relation to the society and state.
2. Study of the state.
3. Study of the government.
4. Study of Associations and Institutions.

Question 8.
In what way is Political Science considered as a study of Government?
Answer:
Study of the Government: Government is an important essential element of Modem State. It is an instrument which fulfills aims and goals of the state. There can be no state with out a government. Government formulates, expresses and implements the will of the state. Government consists of three organs namely Legislature, Executive and Judiciary. Legislature makes the laws, Executive implements the laws and Judiciary interpretes the laws. Political Science studies the meaning, forms, structure, nature and functions of the government. It also discusses the relationship among the various organs of the government. Hence, Political Science is treated as a science of government.

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 12th Lesson Emerging Trends in Business

Essay Answer Questions

Question 1.
Define E – business and explain the scope of E – business.
Answer:
Ther term E-business refers to the integration of business tools based on ICT to improve the functioning of the company. “E-business” refers to the use of an online support for the relationship building between a company and clients. E – business was first used by IBM in 1997. It defined E – business as “the transformation of key business processes through the use of internet technologies”. E – business is defined as the application of information and communication technologies (ICT) which support all the activities and realms of business.

E-Business uses web based technology to improve relationships with customers. Implementing an E-business project necessarily involves the deployment of a network or web – interface connecting company specific services to the client.

Scope of E – Business :
E – business can be divided into following areas.
a) E – business within the organisation

b) Business to business (B2B) :
E – business refers to an exchange of products and services by one business and another.

c) Business to customer (B2C) :
E – business refers to an exchange of products and services from a business to a customer.

d) Customer to customer (C2C) :
E – business refers to C2C transactions are being facilitated by websites like quicker, olx, where customers offer their products online to be bought by other customers.

e) Customer to business (C2B) :
C2B transactions involve provision of project work by customers on internet to the needy companies.

Most of us are aware of buying products online through some sites like Flipkart, Jabong and Amazon. Almost everything from gym equipment to laptops, apparels to Jewelries are available online in this age of E-commerce. Even people are also buying services online. Business consultants, lawyers and doctors are offering their services or advices to their potential clients via internet.

Electronic business is a super set of business cases. E – commerce is one of the aspects of e – business. Some other important aspects of e – business, which are successfully carried through the internet, are e – auctioning, e – banking, e – directories, e – engineering, e – franchising, e – gambling, e – learning, e – mailing, e – marketing e – operational resource management, etc.

i) E-commerce :
Transacting or facilitating business through internet is called e-commerce. E-commerce is short for “Electronic commerce”.

ii) E – auctioning :
The internet enables people to participate in the auction without sacrificing their personal time. In e – auctioning the people who want to participate in the auction, visit the website with a click and go through the details.

iii) E-banking :
Electronic banking is one of the most successful online businesses. E-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an ATM.

iv) E-marketing :
Electronic marketing provides a worldwide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located.

v) E – trading :
E-trading is also known as “online trading” or e – broking. It is used for buying and selling stocks in stock exchanges.

Question 2.
Explain the benefits of E – business.
Answer:
E-business has many advantages which can be broadly classified into the following categories.
A) Benefits to Customer
B) Benefits to Organisation
C) Benefits to Society

A) Benefits to Customer:
i) Shopping at ease :
E – business enables customers to shop or do other transactions 24 hours a day, round the year from almost any location.

ii) Wide choice :
Customers will have more choices or more alternative products and services.

iii) Price savings :
E – business provides customers with less expensive products and services by allowing them to shop in many places and conduct quick comparisons.

iv) Exchange of information :
Allows customers to interact with other customers and exchange their opinions and experiences on products purchased.

B) Benefits to Organisation :
i) Reach beyond boundaries :
Extends the market place to national and international markets.

ii) Cost savings:
Reduces the cost of creating, processing, distributing, storing, and retrieving information. Allows reduced inventories and overheads.

iii) Competitive benefits :
Reduced processing time allows for customization of products and services for achieving competitive advantages.

iv) Earlier capital collection :
Reduces the time between the outlay of capital and the receipt of products and services.

C) Benefits to Society :
i) Environmental benefits :
Enables more individuals to work at home and to do less travelling for shopping, resulting in less traffic on the roads and lower air pollution.

ii) Public welfare :
Allows some merchandise to be sold at lower prices benefiting the poor ones.

iii) Availability of products :
Enables people in Third World countries and rural areas to enjoy produces and services which otherwise are not available to them.

Question 3.
Explain the opportunities of business enterprises in 21^st century.
Answer:
The following are the opportunities of business enterprises in 21^st century:

i) LPG :
The economic reforms initiated in the form of Liberalization, Privatization, and Globalization (LPG) have brought in structural changes which ultimately created favourable environment for business enterprises in India.

ii) Increase in size and diversification :
The 21^st century business enterprises are characterized with large-sized and highly diversified organisations. Companies are able to reduce their costs and thereby increase in profits.

iii) Increase in per capita income :
India has emerged as the fourth largest economy globally with a high growth rate with its improved per capita income. Per capita income is the measure of living standards of its people in a country. As India’s per capita income is increasing, the business opportunities are also increasing in India.

iv) Market economies:
The Indian economy being one of the largest economies in the world with a population of more than 1.2 billion is flourishing and attracting industrial, trade and service sectors all around the world.

v) E-Commerce – A gate way to global markets :
Business enterprises across the globe are discovering the benefits of electronic commerce.

vi) Technological advancements :
21^st century business enterprises are able to use ultramodern technology. With the advancement of technology, organisations are able to offer services.

vii) Expansion of financial services :
Banking insurance, debt and equity financing, micro finance sectors are helping the people to save money and to get liberal credit for their future needs.

viii) Automation of business processes :
Business Process Automotion (BPA) is the strategy that a business uses to automate processes in order to curtail costs. The objective of BPA is not only to automate business processes,but also to simplify and improve business workflows in terms of achieving greater efficiency, adapting to changing business needs and reducing potentiality human error.

ix) Growing mergers, acquisitions and foreign collaborations :
Mergers and acquisitions is a strategy of modern business enterprises for improving innovation, profitability, market share and stock prices. This helps in generating cost effectiveness.

x) Scope for international enterpreneurship :
In 21^st century, many organizations are globalizing their businesses in terms of manufacturing, service delivery, capital sourcing, or talent acquisition as a defensive strategy. Similarly these are discovering a new business opportunities in more than one country to create new products or services to suit to the diversified needs of the customers.

Question 4.
Explain the challenges of business enterprises in 21^st century.
Answer:
The following are the challenges of business enterprises in 21^st century:
1) Threat of technology :
Business organisations have to adopt themselves in tune with the changing technology and modernize their plant and equipment and processes, if not they will become outdated in the market.

2) Growing consumer awareness:
Growing consumer awareness about the products and services will continue to drive sustainability of business in 21st century. Businesses need to respond to consumer demand to gain customers and avoid losing their market share.

3) Challenges of globalization :
Globalization is leading to strategic challenges of mixed cultures and languages in the business environment.

4) Depleting natural resources:
Most of the manufacturing enterprises depend upon certain natural resources which is a key source of raw materials.

5) Economic recession :
Economic recession took place in the United States and Europe is slowly showing its affects on performance of business enterprises in other countries also.

6) Information challenges :
Information technology supported by a new world infra-structure of data communications and telecommunications i.e. use of internet, wireless, e-commerce as part of management tools and easing of technology transfer has posed a bigger challenge for 21^st century business enterprises.

7) The challenge of the environment :
Environmental degradation is one of the biggest challenges of business organisations facing today. Pollution and global warming are the challenges, which all countries are facing.

8) Corruption and bureaucratic hurdles :
Corruption is a very big hurdle for doing business. It is a barrier to the effective development of the private sector and poses business risks.

9) Changing regulatory frame work:
A changing regulatory environment is always of concern in certain industries. Two key areas of regulatory challenges are taxes and health care. The threat of increased costs due to new carbon taxes and presser to “go green” is another challenge.

10) Transparency and governance :
Corporate governance involves organizing and prioritizing a variety of interests. Modern companies are in surveillance of transparency and governance issues.

11) Corporate social responsibility:
The practical implementation of corporate social responsibility is facing lot of problems. Lack of understanding, inadequate trained personnel, coverage, etc. are a few hurdles of CSR programmes.

12) Foreign exchange risk :
Foreign exchange risk is another factor causing constant instability in the running of business organisation.

13) Security Issues:
Security threat to business has become more pronounced in 21^st century. With the proliferation of Electronic Commerce and the “Virtual Office”, threats are becoming everyday occurrence to business.

14) Human resource challenges:
One of the biggest challenges of 21^st century business is human resources – finding the right staff, training, and retaining them are concerns of the HR function.

Short Answer Questions

Question 1.
Explain the scope of E-business.
Answer:
The scope of E-business can be divided into following areas :
a) E-business within the organisation
b) Business to business (B2B) dealing
c) Business to customer (B2C) transactions
d) Customer to customer (C2C)
e) Customer to business (C2B)

The following a and b category E-business refers to an exchange of production and services by one business and another business from a business to a customer and c and d category E-business refers to transactions are being facilitated by websites where customers offer their products online, to be bought by other customers and provision of project work by customers on internet to the needy companies.

Some other important aspects of e – business, which are successfully carried through the internet, are e – auctioning, e – banking, e – directories, e – trading, etc. In the age of e – commerce almost everything from gym equipment to laptops are available online. Even people are also buying services online. Business consultants, lawyers and doctors are offering their services or advices to their potential clients via internet.

Question 2.
What are the benefits ofE – business to organizations?
Answer:
The following are the benefits of E-business to organizations.
i) Reach beyond boundaries:
Extends the market place to national and international markets.

ii) Cost savings :
Reduces the cost of creating, processing, distributing, storing and retrieving information. Allows reduced inventories and overheads.

iii) Competitive benefits:
Reduced processing time allows for customization of products and services for achieving competitive advantages.

iv) Earlier capital collection :
Reduces the time between the outlay of capital and the receipt of products and services.

Question 3.
What are the benefits ofE – business to customers?
Answer:
The following are the benefits of E – business to customers.
i) Shopping at ease:
E-business enables customers to shop or do other transactions 24 hours a day, round the year from almost any location.

ii) Wide choice :
Customers will have more choices or more alternative products and services.

iii) Price savings :
E-business provides customers with less expensive products and services.

iv) Exchange of information :
Allows customers to interact with other customers and exchange their opinions and experiences on products purchased.

Question 4.
Briefly outline the risks faced while involving in a E-business transaction.
Answer:
The following are the risks faced while involving in a E-business transaction.

1. Risk of the information being unauthorized altered while travelling the internet.
2. Risk related to confidentiality of personal information and banking information.
3. Risk relating to legal enforceability of transactions.
4. Risk of failure of electronic communications.
5. Risk to the management in controlling and clearing the E-commerce transactions.
6. Risks relating to technology like viruses and hacking.

Question 5.
What are the benefits of E-business to society?
Answer:
The following are the benefits of E-business to the society.

i) Environmental benefits:
Enables more individuals to work at home and to do less travelling for shopping, resulting in less traffic on the roads, and lower air pollution.

ii) Public welfare:
Allows some merchandise to be sold at lower prices benefiting the poor ones.

iii) Availability of products:
Enables people in Third World countries and rural areas to enjoy produces and services which otherwise are not available to them.

Very Short Answer Questions

Question 1.
business [May 17-T.S.]
Answer:
The term ‘E-business’ refers to the integration of business tools based on ICT to improve the functioning of the company. The term e-business was first used by IBM in 1997. It defined E-business as “the transformation of key business processes through the use of internet technologies”. E-business uses web based technology to improve relationship with customers.

Question 2.
E-banking [Mar. 2019, 15 -T.S.]
Answer:
Electronic banking is one of the most successful online businesses. E-banking allows customers to access their accounts and execute orders through use of website. Online banking allows the customers to get their money from an Automated Teller Machine (ATM), instead of walking up to the cash desk in the bank, can view their accounts, transfer funds and can pay bills. Eg. Net Banking.

Question 3.
E-marketing
Answer:
Electronic marketing provides a worldwide platform for buying and selling of goods without having any geographical barriers. The internet allows companies to react to individual customer demands immediately without any loss of time. It does not matter where the customer is located by e-mails, etc.

Question 4.
E-commerce
Answer:
Transacting or facilitating business through Internet is called E-commerce. E-commerce is short for “Electronic commerce”. A form of business transactions conducted electronically in E-commerce.

Question 5.
E – auctioning
Answer:
The internet enables people to participate in the auction without sacrificing their personal time. In E – auctioning the people, who want to participate in the auction, visit the website with a click and go through the details of goods offered.

Question 6.
E – trading [Mar. 17 – T.S.]
Answer:
E-trading is also known as “online trading” or E – broking. It is used for buying and selling stocks in stock exchanges.

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 11th Lesson Multi National Corporations (MNCs) Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 11th Lesson Multi National Corporations (MNCs)

Essay Answer Questions

Question 1.
Define MNC and explain its features.
Answer:
The word ‘Multinational’ consists of two words Multi and National. Multi means ‘many’ and national means “country or nation”. Therefore Multinational company means a company that operates in several countries.

Multinational companies are also known as Transnational corporations International corporations or Global corporations. They conduct business in two or more countries. These corporations possess huge capital resources, the latest technology along with worldwide goodwill.

Definition :
According to International Labour Organisations (ILO) report –
“An enterprise whose managerial headquarters are located in one country, while it carries out operations in a number of other countries as well.”

According to Neil. H. Jocoby “A multinational corporation owns and manages business in two or more countries.”

David E. Liliental, considering a wider parameter, defines the MNCs as “Corporations which have their home in one country but operate and live under the laws and customs of other countries as well.” For brevity, MNC refers to the business enterprise operating in more than one nation.

The essential feature of a MNC is that headquarters are located in home country and they carry operations in a number of other countries i.e. host countries.

Characteristics of MNCs:
a) Giant size :
The sales and assets of MNCs are quite large. Hence they earn supernormal profits.

b) Global operations :
MNCs carry production and marketing operations in different countries of the world. They possess all the infrastructural facilities.

c) Centralized control :
MNC has its headquarters in the home country. It exercises control over all branches and subsidiaries.

d) Dominant position and status :
MNCs carry on operations in bulk and cover many people. Hence they control the market and enjoy a dominant position and status in all operated countries.

e) Sophisticated technology :
Generally MNCs had advance technology so as to produce quality goods and services to the consumers.

f) Professional management:
MNCs employ professional trained managers to integrate and manage world wide operations to maximize profits.

g) International research and development :
MNCs internationalize their research and development operations in order to caputre the market of the host countries.

h) Easy entry :
MNCs can enter into any country easily with their huge capital, technology, and managerial skills.

i) Higher revenues :
MNCs generate huge revenues with their large size sales and benefits of large scale economies

Question 2.
Define MNC and explain the advantages of MNCs.
Answer:
The word Multinational consists of two words Multi and National. Mutli means many and national means “nations or countries”. Therefore Multinational company means a company that operates in several countries.

Multinational companies are also known as Transnational Corporations or International Corporations-or Global Corporations. They conduct business in two or more countries. These corporations possess huge capital resources, latest technology along with worldwide goodwill.

According to Neil. H. Jocoby “A multinational corporation owns and manages business in two or more countries.”

David E. Liliental, considering a wider parameter, defines the MNCs as.”Corporations which have their home in one country but operate and live under the laws and customs of other countries as well.” For brevity, MNC refers to the business enterprise operating in more than one nation.

The essential feature of a MNC is that headquarters are located in home country and they carry operations in a number of other countries i.e. host countries.

Advantages to Host Countries:
1) Provide Capital :
The MNCs provide required capital for the development of industries in under developing countries. The direct foreign investment is quite useful to the developing countries.

2) Transfer of Technology:
MNCs serve as vehicles for transfer of advanced technology to the developing countries.

3) Generate Employment :
MNCs create employment in various cadres and pay attractive salaries in the host countries.

4) Foreign Exchange :
MNCs enable the host countries to increase their exports and reduce the imports. It improves the position of balance of payments.

5) Managerial Revolution :
MNCs help to professionalise management in host countries. They employ modern management techniques and trained manager.

6) Break Monopoly :
MNCs encourage healthy competition and break domestic monopolies.

7) Growth of Domestic Business Firms:
MNCs encourage domestic suppliers, ancillary units, bankers, and other institutions to expand their activites.

8) Innovation :
MNCs bring out innovation in their production and distribution activities which are required to provide goods and services to needs of the consumers of the host country.

9) Better Standard of Living :
MNCs help to improve standard of living in host countries by providing superior products and services at a reasonable rate.

10) Improves Public Relations among Nations :
They encourage international brotherhood through international business.

Advantages to Home Countries :
1) Availability of resources:
MNCs procure the land, labour, materials at cheap rates and can supply goods and services at reasonable rates.

2) Develop exports :
MNCs encourage the export of several products. This will imporve their foreign exchange earnings.

3) Generate income :
They can earn huge income from dividends, licenising fees, royalty and profits from their operations. This will improve the home country’s income.

4) Provides employment:
MNCs provide employment to the people of home country, as managers, technicians and other staff members.

5) Make use expertise :
The MNCs make use the latest technical knowledge and expertise of managers of different countries to run their business.

Question 3.
Define MNC and explain the limitations of MNCs.
Answer:
The word Multinational consists of two words Multi and National. Mutli means many and national means “nations or countries”. Therefore Multinational company means a company that operates in several countries.

Multinational companies are also known as Transnational Corporations or International Corporations or Globed Corporations. They conduct business in two or more countries. These corporations possess huge capital resources, latest technology along with worldwide goodwill.

According to Neil. H. Jocoby “A multinational corporation owns and manages business in two or more countries.”

David E. Liliental, considering a wider parameter, defines the MNCs as “Corporations which have their home in one country but operate and live under the laws and customs of other countries as well.” For brevity, MNC refers to the business enterprise operating in more than one nation.

The essential feature of a MNC is that headquarters are located in home country and they carry operations in a number of other countries i.e. host countries.

Disadvantages of MNCs:
1) Monopolize the markets :
MNC may join hands with big business units in host country to monopolize the markets. This ultimately leads to concentration of economic power.

2) Disregard host countries’ priorities :
MNCs invest only in porfitable business and ignore priorties set by the host countries. This results in regional backwardness in the host country.

3) Imbalance in the foreign exchange remittances :
MNCs and their subsidiaries collect huge amounts in the form of dividend. This creates an imbalance in the foreign exchange remittances.

4) Transfer of outdated technology :
The MNCs transfer the outdated technology, which is unsuitable and absolute by charging higher rates.

5) Impose restrictions :
MNCs try to impose restrictions with host countries related to non transfer of technical knowlege, determination of price, etc. to discourage the exports.

6) Threat to sovereignty :
MNCs may interfere in the political affairs of the country and try to create internal disturbances.

7) Spread of foreign culture :
MNCs cause damage to the cultural values of the host countries. They spread the foreign culture and change the attitudes, desires and fashions of the people.

8) Depletion of natural resources:
MNCs cause rapid depletion of some of the natural resources in host countries.

9) Retard growth of employment :
MNCs try to provide employment to their own nations. This bias attitude of the MNCs may lead to unemployment in the host country.

10) Business strategies and practices :
MNCs dump harmful products, give deceptive advertisements attract the consumers to purchase outdated and unwanted goods.

Question 4.
What is globalisation and explain the necessity of Globalisation?
Answer:
Globalisation refers to the increasing integration of markets (exchange) and production, to include the mobility of resources (capital, labour, ‘organisation and knowledge’).

The world is moving away from self-contained national economies toward an interdependent, integrated global economic system. Globalisation refers to the shift toward a more integrated and interdependent world economy.

Globalization has two facets :

1. The globalization of markets
2. The globalization of production

1) Globalization of Markets:

• The globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace
• Falling trade barriers make it easier to sell internationally
• The tastes and preferences of consumers are converging on some global norm
• Firms help create the global market by offering the same basic products worldwide

2) Globalization of Production :

• The globalization of production refers to the sourcing of goods and services from locations around the globe to take advantages of national differences in the cost and quality of factors of production like land, labour and capital
• Companies compete more effectively by lowering their overall cost structure or improving the quality or functionality of their product offering

There are two macro factors that underlie the trend toward greater globalization :
1) Low Trade Barriers:
The decline in barriers to the free flow of goods, services and capital. Advanced countries made a commitment to lower barriers to trade and investment.

2) Technological change:
Technological change has made the globalization of markets a reality. Important advances have occurred in microprocessors, telecommunications, Internet and World Wide Web, transportation technology, etc.

Short Answer Questions

Question 1.
Explain the meaning of MNC.
Answer:
The word Multinational consists of two words Multi and National. Mutli means many and national means “nations or countries”. Therefore Multinational company means a company that operates in several countries.

Multinational companies are also known as Transnational Corporations or International Corporations or Global Corporations. They conduct business in two or more countries. These corporations possess huge capital resources, latest technology along with worldwide goodwill.

According to Neil. H. Jocoby “A multinational corporation owns and manages business in two or more countries.”

David E. Liliental, considering a wider parameter, defines the MNCs as “Corporations which have their home in one country but operate and live under the laws and customs of other countries as well.” For brevity, MNC refers to the business enterprise operating in more than one nation.

The essential feature of a MNC is that headquarters are located in home country and they carry operations in a number of other countries i.e. host countries.

Question 2.
List out the features of MNCs. [Mar. 2018 – A.P. & T.S.]
Answer:
a) Giant size :
The sales and assets of MNCs are quite large. Hence they earn supernormal profits.

b) Global operations :
MNCs carfy production and marketing operations in different countries of the world. They possess ail the infrastructural facilities.

c) Centralized control :
MNC has its headquarters in the home country. It exercises control over all branches and subsidiaries.

d) Dominant position and status:
MNCs carry on operations in bulk and cover many people. Hence they control the market and enjoy a .dominant position and status in all operated countries.

e) Sophisticated Technology :
Generally MNCs had advance technology so as to produce quality goods and services to the consumers.

f) Professional Management :
MNCs employs professional trained managers to integrate and manage world wide operations to maximize profits.

g) International research and development:
MNCs internationalize their research and development operations in order to caputre the market of the’host countries.

h) Easy entry :
MNCs can enter into any country easily with their huge capital, technology and managerial skills.

i) Higher revenues :
MNCs generate huge revenues with their large size sales and benefits of large scale economies.

Question 3.
State any four merits of MNCs to host country. [Mar. 2019 – A.P. Mar. 17 – T.S.]
Answer:
MNCs help the host country in the following ways.

1. The investment level, employment level and income level of the host country increases due to the operation of MNCs.
2. The industries of host country get latest technology from foreign countries through MNCs.
3. The host country’s business also gets management expertise from MNCs.
4. The domestic traders and market intermediaries of the host country gets increased business from the operation of MNCs.
5. MNCs break protectionalism, curb local monopolies, create competition among domestic companies and thus enhance their competitiveness.
6. Domestic industries can make use of R & D outcomes of MNCs.
7. The host country can reduce imports and increase exports due to goods produced by MNCs in the host country. This helps to improve balance of payment.
8. Level of industrial and economic development increases due to the growth of MNCs in the host country.

Question 4.
Explain any four merits of MNCs to home country. [Mar. 15 – T.S.]
Answer:
MNCs home country has the following advantages.

1. MNCs create opportunities for marketing the products produced in the home country throughout the world.
2. They create employment opportunities to the people of home country both at home and abroad.
3. It gives a boost to the industrial activities of home country.
4. MNCs help to maintain favourable balance of payment of the home country in the long run.
5. Home country can also get the benefit of foreign culture brought by MNCs.

Question 5.
Explain any four disadvantages to the host country. [Mar. 17, 15 – A.P.]
Answer:

1. MNCs may transfer technology which has become outdated in the home country.
2. As MNCs do not operate within the national autonomy, they may pose a threat to the economic and political sovereignty of host countries.
3. MNCs may kill the domestic industry by monopolising the host country’s market.
4. In order to make profit, MNCs may use natural resources of the home country indiscriminately and cause depletion of the resources.

Question 6.
State any four disadvantages to home country.
Answer:

1. MNCs may join hands with big business units in host country to monopolize the markets. This ultimately leads to concentration of economic power.
2. The MNCs transfer the outdated technology, which is unsuitable and absolute by charging higher rates.
3. MNCs may interfere in the political affairs of the country and try to create internal disturbances.
4. MNCs try to provide employment to their own nations. This bias attitude of the MNCs may lead to unemployment in the host country.

Very Short Answer Questions

Question 1.
Define Globalisation.
Answer:
The world is moving away from self contained national economies toward an interdependent integrated global economic system. Globalization refers to the shift toward a more integrated and interdependent world economy.

Globalisation has two facets :

1. The globalization of markets
2. The globalization of production

Question 2.
Define FDI.
Answer:
Foreign Direct Investment (FDI) is the control of production which takes place in one country (host country) by a firm based in another country (home). FDI is the defining feature of the MNC. Foreign direct investment (FDI) occurs when a firm invests resources in business activities outside its home country.

Question 3.
Define MNC. [May, 17 – A.P.]
Answer:
The word ‘Multinational’ consists of two words Multi and National. Multi means ‘many’ and national means “country or nation”. Therefore Multinational company means a company that operates in several countries.

Multinational companies are also known as Transnational corporations or International corporations or Global corporations. They conduct business in two or more countries. These corporations possess huge capital resources, latest technology along with world wide goodwill.

Examples of MNCs are :
Pepsi, Hyundai, Nike, Reebok, LG, Samsung and many more.

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 10th Lesson Micro, Small and Medium Enterprises (MSMEs) Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 10th Lesson Micro, Small and Medium Enterprises (MSMEs)

Essay Answer Questions

Question 1.
Define MSMEs and explain their significance. [Mar. 2019 – T.S.]
Answer:
The term (enterprise) has been defined under section 2(e) so as to mean ‘any industrial undertaking or a business concern or any other establishment, by whatever name called, engaged in the manufacture or production of goods, in any manner pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951 or engaged in providing or rendering of any service or services’.

In accordance with the provision of Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 the Micro, Small and Medium Enterprises (MSME) are classified in two classes. They are

1. Manufacturing enterprises
2. Service enterprises.

1) Manufacturing enterprises :
Manufacturing enterprises are those business enterprises which are engaged in the manufacturing or production of goods or commodities. More specifically, these enterprises involve in converting the raw material into finished products by using plant and machinery for creating value addition to the final products.

• A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
• A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
• A medium enterprise is an enterprise where in the investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore.

2) Service enterprises :
The enterprises involve in providing or rendering services are defined as below.

1. A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.
2. A small enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore.
3. A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

Significance of MSMEs:
MSMEs contribute nearly 8% of the country’s GDP, 45% of the manufacturing output and 40% of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. The Ministry of MSME has undertaken number of programmes to help and assist entrepreneurs and small businesses. Entrepreneurs who are planning to set up business, may contact National Institute for Entrepreneurship and Small Business Development (National Institute for Micro, Small and Medium Enterprises).

The significance of MSMEs can be understood from the following :
a) 90% of MSMEs in India are unregistered (out of which nearly 80% are sole proprietor firms)
b) 40% of exports in India are through MSME channel
c) 40% of employment opportunity in India is provided by MSME sector
d) MSMEs provide opportunities to the budding entrepreneurs by providing various channels of investment opportunity according to their class of investment.
e) MSMEs provide a good market for foreign companies to start venture capital businesses in India.

Question 2.
Discuss the privileges enjoyed by MSMEs.
Answer:
MSMED Act 2006 provides the following privileges to Micro, Small and Medium Enterprises.

1) Buyer’s Liability to Make Timely Payment for Goods and Service :
Section 15 envisages to ensure timely receipt of payment for their goods and services by micro and small enterprises. It casts an obligation upon the buyer of any goods or services, to make payment to the supplier, by the specified date as follows :
a) When there is an agreement in writing :
On or before the date agreed upon between them in writing. Further, in no case the period so agreed shall exceed 45 days from the day of acceptance.

b) When there is no agreement:
Before the appointed day, which means the day following immediately after the expiry of 15 days from the day of acceptance or day of deemed acceptance.

The terms ‘buyer’, ‘supplier’, day of acceptance’ have been defined in the Act, as under:

• Buyer’ means a person buying any goods or receiving any services from a supplier for consideration.
• Supplier’ means a micro or small enterprise.
• ‘Day of acceptance’ means the day of actual delivery of goods or rendering of services.

2) Interest for Delayed Payment by Buyer :
Where a buyer fails to make payment as required above, he shall be liable to pay interest on the outstanding amount. The interest shall be payable for the period of delay from the date immediately following the agreed date. The interest shall be payable at a rate three times the bank rate and compounded at monthly rests.

3) Reference of Disputes :
Any dispute relating to amount payable for any goods or services, and any interest thereon, may be referred by any party, to the Micro and Small Enterprises Facilitation Council, which shall conduct conciliation in the matter.

Short Answer Questions

Question 1.
Define Manufacturing enterprises as per MSMEs Act, 2006.
Answer:
Manufacturing enterprises are those business enterprises which are engaged in the manufacturing or production of goods or commodities. More specifically, these enterprises involve in converting the raw material into finished products by using plant and machinery for creating value addition to the final products. From the point of view of MSMEs, the manufacturing enterprises are defined in terms of investment made in plant and machinery.

• A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh.
• A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
• A medium enterprise is an enterprise where in the investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore.

Question 2.
Define Service enterprises as per MSMEs Act, 2006.
Answer:
These enterprises involve in providing or rendering services. Service sector may be defined in terms of investment made in equipment.

• A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.
• A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
• A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

Question 3.
Briefly explain the registration process of MSMEs. [May 17 – A.P.]
Answer:
The following are the registration requirements under the MSMED Act, 2006. As per the Act any person intending to establish-

• a micro or small enterprise, may, at his discretion.
• a medium enterprise engaged in providing or rendering of services may, at his discretion.
• a medium enterprise engaged in the manufacture or production of goods pertaining to any industry specified in the First Schedule to the Industries (Development and Regulation) Act, 1951, shall file the memorandum of micro, small or, as the case may be, of medium enterprise with authority specified by the State Government or the Central Government.

Very Short Answer Questions

Question 1.
Define Micro Enterprises. [May 17-T.S.]
Answer:
In case of manufacturing enterprises a micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh. In case of service enterprises a micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh.

Question 2.
Define Small Enterprieses. [Mar. 15- A.P.]
Answer:
In case of manufacturing enterprises small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore. In case of service enterprises, a small enterprise is an enterprise where the investment in equipment is more than Rs. 10 lakh but does not exceed Rs. 2 crore.

Question 3.
Define Medium Enterprises. [Mar. 17 – A.P.]
Answer:
In case of manufacturing enterprises a medium enterprise is an enterprise where in the investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore. In case of medium enterprises a medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore.

Question 4.
Define Manufacturing Enterprise. [(Mar. 2019 – A.P.) (Mar. 17 – T.S)]
Answer:
Manufacturing Enterprise :

1. Micro – Investment in plant and machinery does not exceed Rs. 25 lakh
2. Small – Investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore
3. Medium – Investment in plant and machinery is more than Rs. 5 crore but does not exceed Rs. 10 crore

Question 5.
Define Service Enterprise. [(Mar. 2019, 15 – T.S.) (Mar. 2018 – A.P. – T.S.)]
Answer:
Micro – Investment in equipment does not exceed Rs. 10 lakh
Small – Investment in equipment is more than Rs. 10 lakh but does not exceed Rs.2 crore
Medium – Investment in equipment is more than Rs. 2 crore but does not exceed Rs.5 crore

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 9th Lesson Sources of Business Finance-II Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 9th Lesson Sources of Business Finance-II

Essay Answer Questions

Question 1.
1. Explain various sources of business finance available to Indian businessmen.
Answer:
A businessman can raise funds from various sources. On the basis of the period, sources of finance can be categorized into three. They are

1. Long-term sources
2. Medium-term sources
3. Short-term sources

1) Long-term sources of finance :
It includes i) Equity shares and preference shares ii) Debentures iii) Retained earnings.

i) Equity Shares :
Equity shares are the most important source of raising long-term capital by a company. Equity shares, also known as ordinary shares and also known as ownership capital or owner’s funds. Equity shareholders do not get a fixed divident but are paid on the basis of earnings by the company. They enjoy the rewards as well as bear the risk of ownership. Their liability, however, is limited to the extent of capital contributed by them in the company.

Preferences shares :
The capital raised by issue of preference shares is called preference share capital’. In other words, as compared to the equity shareholders, the preference shareholders have a preferentail claim over dividend and repayment of capital. Preference shareholders generally do not enjoy any voting rights. A company can issue different types of preference shares by raising capital.

ii) Debentures:
Debentures are an important instrument for raising long-term debt capital. A company can raise funds through issue of debentures. It bears a fixed rate of interest. The debenture issued by a company is an aknowledgement that the company has borrowed a certain amount of money, which it promises to repay on a future date. ‘Debenture holders’ are, therefore, termed as ‘creditors of the company’.

iii) Retained Earnings :
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as ‘retained earnings’. It is a source of internal financing or self financing or ‘ploughing back of profits’.

2) Medium-term sources of finance :
It includes i) Public deposits ii) Loans, from banks iii) Lease financing

i) Public deposits:
The deposits that are raised by organisations directly from the public are known as ‘Public deposits’. Any person who is interested in depositing money in an organisation can do so by filling up a prescribed form. The organisation in return issues a deposit receipt as acknowledgement of the debt. Public deposits can take care of medium-term financial requirements of a business.

ii) Commercial Banks:
Commercial banks occupy a vital position as they provide funds for different purposes as well as for different time periods. Banks extend loans to firms of all sizes and in may ways, like, cash credits, overdrafts, term loans, purchase/discounting of bills, and issue of letter of credit.

iii) Lease Financing :
A lease is a contractual agreement whereby one party i.e. the owner of an asset grants the other party the right to use the asset in return for a periodic payment. In other words it is a renting of an asset for some specified period. The owner of the assets is called the “lessor” while the party that uses the assets is known as the ’lessee’. Lease finance is an important means for modernisation and diversification in the firm. Such financing is resorted to acquiring assets like computers and electronic equipment.

3) Short-term sources of finace :
It includes i) Bank credit ii) Trade credit iii) Installment credit iv) Advances v) C.P (Commercial Paper)

i) Bank credit :
Commercial banks extend the short-term financial assistance to business firms by means of bank credit. Bank credit may be provided in the following forms i) loans ii) cash credit iii) overdraft.

ii) Trade credit:
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.

iii) Installment credit:
This is another method by which the assets are purchases and possession of goods is taken immediately but the payment is made in installment over a pre-determined period of time. Generally, interest is charged on the unpaid price.

iv) Advances:
Some business organisations get advances from their customers and agents against orders and this source is short term source of finance for them.

v) Commercial Paper (CP) :
Commercial paper is an unsecured promissory note issued by a firm to raise funds for short period, varying from 90 days to 364 days. It is issued by one firm to other business firms, insurance, companies, pension funds and banks. The amount raised by CP is generally very large. As the debt is totally unsecured, the firms having good credit rating can issue the CP.

Question 2.
Discuss the main sources of finance available to companies for meeting long-term as well as short-term financial requirements.
Answer:
A businessman can raise funds from various sources. On the basis of period, sources of finance can be categorized into three. They are Q

1. Longterm sources
2. Mediumterm sources
3. Short-term sources

Long-term sources of finance :
It includes i) Equity shares and preference shares ii) Debentures iii) Retained earnings.

i) Equity Shares :
Equity shares are the most important source of raising long-term capital by a company. Equity shares, also known as ordinary shares and also known as ownership capital or owner’s funds. Equity shareholders do not get a fixed divident but are paid on the basis of earnings by the company. They enjoy the rewards as well as bear the risk of ownership. Their liability, however, is limited to the extent of capital contributed by them in the company.

Preferences shares :
The capital raised by issue of preference shares is called ‘preference share capital’. In other words, as compared to the equity shareholders, the preference shareholders have a preferentail claim over dividend and repayment of capital. Preference shareholders generally do not enjoy any voting rights. A company can issue different types of preference shares by raising capital.

ii) Debentures:
Debentures are an important instrument for raising long-term debt capital. A company can raise funds through issue of debentures. It bears a fixed rate of interest. The debenture issued by a company is an aknowledgement that the company has borrowed a certain amount of money, which it promises to repay on a future date. ‘Debenture holders’ are, therefore, termed as ‘creditors of the company’.

iii) Retained Earnings :
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as ‘retained earnings’. It is a source of internal financing or self financing or ‘ploughing back of profits’.

Short-term sources of finance :
It includes i) Bank credit ii) Trade credit iii) Installment credit iv) Advances v) C.P
(Commercial Paper)

i) Bank credit:
Commercial banks extend the short-term financial assistance to business firms by means of bank credit. Bank credit may be provided in the following forms i) loans ii) cash credit iii) overdraft.

ii) Trade credit:
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.

iii) Installment credit:
This is another method by which the assets are purchases and possession of goods is taken immediately but the payment is made in installment over a pre-determined period of time. Generally, interest is charged on the unpaid price.

iv) Advances:
Some business organisations get advances from their customers and agents against orders and this source is short term source of finance for them.

v) Commercial Paper (CP) :
Commercial paper is an unsecured promissory note issued by a firm to raise funds for short period, varying from 90 days to 364 days. It is issued by one firm to other business firms, insurance, companies, pension funds, and banks. The amount raised by CP is generally very large. As the debt is totally unsecured, the firms having good credit rating can issue the CP.

Question 3.
Write a comparative evolution of the various methods that are opend to meet the financial requirements of a business firm.
Answer:
A businessman can raise funds from various sources. On the basis of period, sources of finance can be categorized into three. They are

1. Long-term sources
2. Medium-term sources
3. Short-term sources

i) Long-term sources of finance :
It includes i) Equity shares and preference shares ii) Debentures iii) Retained earnings.

i) Equity Shares:
Equity shares are the most important source of raising long-term capital by a company. Equity shares, also known as ordinary shares and also known as ownership capital or owner’s funds. Equity shareholders do not get a fixed divident but are paid on the basis of earnings by the company. They enjoy the rewards as well as bear the risk of ownership. Their liability, however, is limited to the extent of capital contributed by them in the company.

Preferences shares :
The capital raised by issue of preference shares is called ‘preference share capital’. In other words, as compared to the equity shareholders, the preference shareholders have a preferentail claim over dividend and repayment of capital. Preference shareholders generally do not enjoy any voting rights. A company can issue different types of preference shares by raising capital.

ii) Debentures:
Debentures are an important instrument for raising long-term debt capital. A company can raise funds through issue of debentures. It bears a fixed rate of interest. The debenture issued by a company is an aknowledgement that the company has borrowed a certain amount of money, which it promises to repay on a future date. ‘Debenture holders’ are, therefore, termed as ‘creditors of the company’.

iii) Retained Earnings :
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as ’retained earnings’. It is a source of internal financing or self financing or ‘ploughing back of profits’.

2) Medium-term sources of finance :
It includes i) Public deposits ii) Loans from banks iii) Lease financing

i) Public deposits :
The deposits that are raised by organisations directly from the public are known as ‘public deposits’. Any person who is interested in depositing money in an organisation can do so by filling up a prescribed form. The organisation in return issues a deposit receipt as acknowledgement of the debt. Public deposits can take care of medium-term financial requirements of a business.

ii) Commercial Banks :
Commercial banks occupy a vital position as they provide funds for different purposes as well as for different time periods. Banks extend loans to firms of all sizes and in may ways, like, cash credits, overdrafts, term loans, purchase/discounting of bills, and issue of letter of credit.

iii) Lease Financing :
A lease is a contractual agreement whereby one party i.e. the owner of an asset grants the other party the right to use the asset in return for a periodic payment. In other words it is a renting of an asset for some specified period. The owner of the assets is called the “lessor” while the party that uses the assets is known as the ‘lessee’. Lease finance is an important means for modernisation and diversification in the firm. Such financing is resorted to acquiring assets like computers and electronic equipment.

3) Short-term sources of finance :
It includes i) Bank credit ii) Trade credit iii) Installment credit iv) Advances v) C.P (Commercial Paper)

i) Bank credit:
Commercial banks extend the short-term financial assistance to business firms by means of bank credit. Bank credit may be provided in the following forms i) loans ii) cash credit iii) overdraft.

ii) Trade credit:
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.

iii) Installment credit:
This is another method by which the assets are purchases and possession of goods is taken immediately but the payment is made in installment over a pre-determined period of time. Generally, interest is charged on the unpaid price.

iv) Advances:
Some business organisations get advances from their customers and agents against orders and this source is short term source of finance for them.

v) Commercial Paper (CP) :
Commercial paper is an unsecured promissory note issued by a firm to raise funds for short period, varying from 90 days to 364 days. It is issued by one firm to other business firms, insurance, companies, pension funds and banks. The amount raised by CP is generally very large. As the debt is totally unsecured, the firms having good credit rating can issue the CP.

Question 4.
What do you mean by Specialized Financial Institutions? Why are these needed?
Answer:
Specialised financial institutions are the institutions which have been set up to serve the increasing financial needs of commerce and trade in the area of venture capital, credit rating and leasing, etc.

1) IFCI Venture Capital Funds Ltd. (IVCF):
Formerly known as Risk Capital and Technology Finance Corporation Ltd. (RCTC), is a subsidiary of IFCI Ltd. It was promoted with the objective of broadening entrepreneurial base in the country by facilitating funding to ventures involving innovative product or process or. technology.

2) ICICI Venture Funds Ltd :
Formerly known as Technology Development and Information Company of India Limited (TDICI), was founded in 1988 as a joint venture with the UTI. Subsequently, it became a fully owned subsidiary of ICICI. It is a technology venture finance company, set up to sanction project finance for new technology ventures. The industrial units assisted by it are in the fields of computer, chemicals, drugs, diagnostics, engineering, etc.

3) Tourism Finance Corporation of India Ltd (TFCI) :
TFCI is a specialised financial institution set up by the Government of India for promotion and growth of tourist industry in the country. Apart from conventional tourism projects, it provides financial assistance for non-conventional tourism projects like amusement parks, ropeways, car rental services, ferries, etc.

Question 5.
Critically examine the advantages and disadvantages of raising funds by issuing shares of different types.
Answer:
Joint stock companies’ capital is divided into number of equal parts known as shares. A company can issue different types of shares to get funds from the investors to suit their requirement. Under the Companies Act 1956 a company can issue only two types of shares.

1. Preference shares
2. Equity shares.

1) Preference shares :
As compared to the equity shareholders, the preference shareholders have a preferential claim over divided and repayment of capital. Preference shares resemble debentures as they bear fixed rate of return. Preference shares have some characteristics of both equity shares and debentures. Preference shareholders generally do not enjoy any voting rights.

Merits or Advantages:

• Preference shares provide reasonably steady income in the form of fixed rate of return and safety of investment.
• Preference shares are useful for those investors who want to get fixed rate of return with comparatively low risk.
• It is a superior security over equity shares.
• Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.
• Preference capital does not create any sort of charge against the assets of a company.

Limitations:

• Preference shares are not suitable for those investors who are willing to take risk and are interested in higher returns.
• Preference capital dilutes the claims of equity shareholders over assets of the company.
• The rate of dividend on preference shares in generally higher than the rate of interest on debentures.

2) Equity shares :
Equity shares are the most important source of raising long-term capital by a company. Equity shares, also known as ordinary shares represent the ownership of a company and thus the capital raised by issue of such shares is known as ownership capital or owner’s funds. Equity shareholders do not get a fixed dividend but are paid on the basis of earnings by the company. Their liabilities, however, is limited to the extent of capital contributed by them in the company. They have a right to participate in the management of a company.

Merits:

• Equity shares do not create any obligation to pay a fixed rate of dividend.
• Equity shares can be issued without creating any charge over the assets of the company.
• It s a permanent source of capital and the company need not repay it except under liquidation.
• Equity shareholders are the real owners of the company who have the voting rights.

Limitations:

• Investors who want steady income may not prefer equity shares as equity shares get fluctuating returns.
• The cost of equity shares is generally more as compared to the cost of raising funds through other sources:
• Issue of additional equity shares dilutes the voting power, and earnings of existing equity shareholders.
• More legal formalities and procedural delays are involved while raising funds through issue of equity shares.

Short Answer Questions

Question 1.
What are the sources of Short-term finance?
Answer:
The short-term loans and credits are raised by a firm for meetings its working capital requirements. There are generally for short-period not exceeding accounting period, i.e. one year. The main sources of short-term funds are as follows.
1) Bank credit :
Commercial banks extend the short-term financial assistance to business firms by means of bank credit. Bank credit may be provided in the form of loans and cash credit, overdraft, etc.

2) Trade credit:
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Trade credit is commonly used by business organisations as a source of short-term financing.

3) Installment credit:
This is another method by which the assets are purchases and possession of goods is taken immediately but the payment is made in installment over a pre-determined period of time.

4) Advances :
Some business organisations get advances from their customers and agents against orders and this source is short term source of finance.

5) Commercial paper :
Commercial paper emerged as a source of short term finance in our country in the early nineties. Commercial paper is an unsecured promissory note issued by a firm to raise funds for a short period, varying from 90 days to 364 days. It is issued by one firm to other business firms, insurance companies, pension funds and banks.

Question 2.
What are the sources of Long-term finance?
Answer:
The sources of long-term finance are i) Issue of shares ii) Issue of debentures iii) Retained earnings.

i) Issue of shares:
The capital obtained by issue of shares is known as ‘share capital’. The capital of a company is divided into small units called ‘shares’. Each share has its nominal value. There are two types of shares normally issued by a company. These are ‘equity shares’ and ‘preference shares’. The money raised by issue of equity shares is called ‘equity share capital’ while the money raised by issue of preference share is called ‘preference share capital’. It is important method of raising long-term finance.

ii) Issue of debentures:
Debentures are an important instrument for raising long-term debt capital. A company can raise funds through issue of debentures. It bears a fixed rate of interest. The debenture issued by a company is an acknowledgment that the company has borrowed a certain amount of money, which it promises to repay on a future date. ‘Debenture holders’ are, therefore, termed as ‘creditors of the company’.

iii) Retained Earnings :
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as ‘retained earnings’. It is a source of internal financing or self financing or ‘ploughing back of profits’.

Question 3.
What are the sources of Medium-term finance?
Answer:
The sources of Medium-term finance are

1. Public deposits
2. Loans from Banks
3. Lease Financing

i) Public deposits :
Industries receive deposits from the public. These deposits are called public deposits. The period of public deposits used to be short (i.e for three years). So public deposits have been a very important source for working capital requirements.

ii) Loans from Banks :
Commercial banks occupy a vital position as they provide funds for different purposes and for different periods. They extend loan facility in the form of cash credit, overdraft, term loans and purchasing discounting bill of exchange. The borrower is required to provide some security or to create a charge on the assets of the firm before a loan is sanctioned.

iii) Lease Financing :
A lease is a contractual obligation whereby the lessor or owner grants the lessee the right to use the asset in return for a periodic payment known as lease rent. At the end of the lease period the asset goes back to the lessor. Lease financing is an Important means for modernisation and diversification in the firm. Such R&smcing is resorted to in acquiring assets like computers and electronic equipment.

Question 4.
Discuss the need for specialized financial institutions.
Answer:
Specialised financial institutions are the institutions which have been set up to serve the increasing financial needs of commerce and trade in the area of venture capital, credit rating and leasing, etc.
1) IFCI Venture Capital Funds Ltd. (TVCF) :
Formerly known as Risk Capital and Technology Finance Corporation Ltd. (RCTC), is a subsidiary of IFCI Ltd. It was promoted with the objective of broadening entrepreneurial base in the country by facilitating funding to ventures involving innovative product or process or technology.

2) ICICI Venture Funds Ltd :
Formerly known as Technology Development and Information Company of India Limited (TDICI), was founded in 1988 as a joint venture with the UTI. Subsequently, it became a fully owned subsidiary of ICICI. It is a technology venture finance company, set up to sanction project finance for new technology ventures. The industrial units assisted by it are in the fields of computer, chemicals, drugs, diagnostics, engineering, etc.

3) Tourism Finance Corporation of India Ltd (TFCI) :
TFCI is a specialised financial institution set up by the Government of India for promotion and growth of tourist industry in the country. Apart from conventional tourism projects, it provides financial assistance for non-conventional tourism projects like amusement parks, ropeways, car rental services, ferries, etc.

Question 5.
Explain the advantages and disadvantages of equity source of Finance. [Mar. 2019. 17 – A.P.]
Answer:
Advantages of equity source of Fiance :

1. Equity shares do not create any obligation to pay a fixed rate of dividend.
2. Equity shares can be issued without creating any charge over the assets of the company.
3. It is a permanent source of capital and the company need not repay it except under liquidation.
4. Equity shareholders are the real owners of the company who have the voting rights.
5. In case of profits, equity shareholders are the real gainers by way of increased dividends and appreciation in the value of shares.

Limitations:

• Investors who want steady income may not prefer equity shares as equity shares get fluctuating returns.
• The cost of equity shares is generally more as compared to the cost of raising funds through other sources.
• Issue of additional equity shares dilutes the voting power, and earnings of existing equity shareholders.
• More legal formalities and procedural delays are involved while raising funds through issue of equity shares.

Question 6.
Differentiate between the Equity shares and Preference shares. [Mar. 2019; May 17 -T.S.]
Answer:

Basis of difference	Preference Shares	Equity Shares
1) Choice to issue these shares	It is not compulsory to issue these shares.	It is compulsory to issue these shares.
2) Payment of dividend	Dividend is paid before paying dividend on equity shares.	Dividend is paid after paying dividend on preference shares.
3) Return of captial	In case of winding up capital is repaid before the payment of equity share capital.	in case of winding up capital is refunded after the payment of preference share capital.
4) Voting rights	Limited voting -rights.	Absolute voting rights.
5) Rate of dividend	Rate of dividend prefixed and precommunicated.	Dividend rate is not fixed and it is rcommended by the Board of Directors.
6) Speculation	No scope for speculation.	Scope for speculation.
7) Trading on equity	Enable the company to trade on equity.	Company cannot take advantage of trading on equity.
8) Risk	Less risk.	High risk.
9) Bonus shares	Bonus shares are not offered to preference shareholders.	Bonus shares are offered to equity shareholders.
10) Participation in management	The preference shareholders have no right to participate in the management.	The equity shareholders as owners of the company can participate in the manage­ment.

Question 7.
Differentiate betwene a Share and a Debenture. [Mar. 2019, 18, 17 – A.P. & T.S.; May 17; Mar. ’15 – A.P.; May 17 – T.S.]
Answer:

Shares	Debentures
1) A share is a part of owned capital.	A debenture is an acknowledgement of a debt.
2) A share carries voting rights.	A debenture does not carry voting rights.
3) Shareholders are paid dividend.	Debenture holders are paid interest.
4) Dividends on share is appropriation of profits.	Interest on debenture is a charge against profit.
5) Rate of dividends depends upon the profits.	The rate of interest is fixed.
6) Shareholders have control over the company.	Debenture holders have no control over the company.
7) Captial is repaid only at the time of  liquidation.	Debentures are repaid after the expiry of specified period.
8) Shareholders have no charge on the assets of the company.	They have charge on the assets of the company.
9) Shareholders have no priority over debentures in the repayment of capital.	They have priority over shareholders in the repayment of capital.
10) Shareholders can attend the meetings.	They have no right to in the meetings of the company.
11) Payment of dividend is not an obligation.	Payment of interest is an obligation of the company.
12) Lucrative to adventurous investors.	Lucrative to cautious investors.

Very Short Answer Questions

Question 1.
Business finance
Answer:
The rquirements of funds by business firm to accomplish its various activities is called business finance. Finance is considered as the life blood of any organisation. The success of an industry depends on the availability of adequate finance. Finance is also labeled as capital of a company.

Question 2.
Bank loan
Answer:
A loan is a direct advance made in lumpsum against some security. A specified amount is sanctioned by the bankers to the customer. The loan amount is paid in cash or credited to customers a/c. The customer has to pay interest on the amount from the date of sanctioning the loan.

Question 3.
Debentures
Answer:
Debentures are an important instrument for raising long term debt capital. A company can raise funds through issue of debentures. It bears a fixed rate of interest. The debentures issued by a company is an acknowledgement that the company has borrowed a certain amount of money which it promises to repay on a future date. ‘Debenture holders’ are therefore, termed as ‘creditors of the company’.

Question 4.
Trade credit
Answer:
Trade credit is the credit extended by one trader to another for the purchase of goods and services. Trade credit facilitates the purchase of supplies without immediate payment. Such credit appears in the records of the buyer of goods as ‘sundry creditors’ or ‘accounts payable’.

Question 5.
Equity share [Mar. 2018, 15 -A.P.]
Answer:
According to Companies Act, 1956, shares which are not preference shares are equity shares. Equity shares are earlier known as ordinary shares. These are so called because they do not have any special right in payment of dividend and repayment of capital earlier all equity shareholders had equal voting rights. But the recent amendment in the Companies Act 2000, permits companies to issue equity shares with differential voting rights. Equity capital need not be refunded during the life time of the company. Equity shares facilitate the company to get the benefits of leverage.

Question 6.
Preference share [Mar. 2018 – T.S.; Mar. 17 – A.P. & T.S.]
Answer:
As per Section 85 of the Indian Companies Act 1956, preference shares are those shares which carry special rights in respect of dividends and also repayment of capital at the time of winding up. The rate of dividend on these shares are fixed.

Preference shareholders arerpaid dividends when the company makes profits.

If nothing is mentioned in the Articles of Association, preference means preference as to both the payment of dividend and repayment of capital.

Preference shareholders have no voting rights. Hence they have no voice in the management. Investors who prefer a constant rate of return and less risk purchase preference shares.

Question 7.
Retained earnings [Mar. 15; May, 17 – T.S.]
Answer:
Retained earnings is also known as “Ploughing back of profits”. Retained earnings refers to the reinvestment of undistributed profits. It is a very good source of business finance. A part of profit is transferred to the reserves every year. After a few years, it becomes a large amount which is then employed for modernisaton and expansion of business.

As per Indian Companies Act, 1956, Companies are required to transfer a part of their profits to reserve.

Question 8.
Deferred shares
Answer:
The rights of the deferred shareholders with regard to payment of dividend and repayment of capital are deferred (postponed). Deferred shareholders rank last so far as payment of dividend and return of capital is concerned. These shares are generally small in denomination. These shareholders try to manage the company with economy and efficiency.

These shares are issued to the promoters of the company. So these shares are also called promoters shares or management shares. When the company prospers, the deferred shareholders get dividend.

According to Companies Act 1956, no public company or which is subsidiary of a public company cannot issue deferred shares.

Question 9.
State Financial Corporation
Answer:
The State Financial Corporation was established by the Government of India in 1951 with a view to provide financial assitance to small and medium scale industries which are beyond the scope of Industrial Finance Corporation of India. Its share capital is subscribed by respective state governments, RBI, LIC and commercial banks.

Question 10.
Commercial Banks
Answer:
Commercial banks occupy a vital position as they provide funds f or different purposes as well as for different time periods. Banks extend loans to firms of all size and in many ways, like, cash credits, overdrafts, term loans, purchase/discounting of bills and issue of letter of credit.

Question 11.
Financial Institutions
Answer:
Banks provide funds for different purposes. Another important source of rasing finance is from the finanical institutions like Industrial Finance Corporation of India, Industrial Development Bank of India, Industrial Credit and Investment Corporation of India. Such institutions provide long term and mediun terms on easy installments to big industrial and business houses.

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 8th Lesson Sources of Business Finance-I Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 8th Lesson Sources of Business Finance-I

Essay Answer Questions

Question 1.
What is business finance? Explain its need and significance in the business organizations. [Mar. 2018, 17, 15 – A.P. & T.S.; May 17 – A.P. & T.S.]
Answer:
Finance is considered as the life blood of any organisation. The requirements of funds by business firm to accomplish its various activities is called business finance. According to B.O. Wheeler “Finance is that business activity which is concerned with the acquisition and conservation of capital funds in meeting the financial needs and overall objectives of a business enterprise.”

Need and significance in the business finance:
1) For fixed capital requirement of business :
In order to start business, finance is required to purchase fixed assets like land and buildings, plant and machinery, furniture and fixture, etc.

2) For working capital requirement of business :
Working capital is utilised for holding current assets such as purchase of material, payment of wages, transporta¬tion charges, etc.

3) For expansion and growth of business :
Finance is required to increase produc¬tion, to install more machines to set up a R & D centre etc.

4) For diversification :
Business finance is needed to start new activity in business. Entering into new business and new lines of activities is known as diversification.

5) For Survival :
Business finance is required to carry out the various business operations in continuity. Without the required finance, organisations cannot survive for long.

6) For liabilities :
To meet liabilities of business, be it long-term or short, a business requires sufficient finance, e.g. for payment of loan installments, creditors, etc.

7) For payment of expenses :
Business finance is needed for paying salaries, wages, taxes, advertisements and other expenses like rents, etc.

Question 2.
What are the various factors that determine the selection of sources of finance? [Mar. 2019 – T.S. Mar. 17 – A.P.]
Answer:
Financial needs of business are of different types-long term, short term, fixed and fluctuating. Therefore, business firms resort to different types of sources for raising funds.

i) Cost :
The fact of cost is of two types i) cost of procurement of funds ii) cost of utilising funds. These cost factors deciding about the source of funds will be utilised by an organisation.

ii) Financial strength and stability of operations:
In the choice of source of funds for business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount.

iii) Form of organisation and legal status :
The form of unit organisation and status influences the choice of a source for raising money.
Ex : A partnership firm cannot raise money by issue of equity shares.

iv) Factor of time period :
Business units should plan according to the time period for which the funds are required. Ex : Short term need purposes depend upon by the business unit through trade creditors for long term finance sources such as issue of shares and debentures.

v) Risk profile factor:
Business should evaluate each of the source of finance in terms of the risk involved Ex: Issued equity shares, these are to be repaid only at the time of winding up and dividends are not paid if the profits are not available. There is little risk involved. On the other hand a loan is to be repaid as per schedule and the interest is to be paid whether the firm earns profit or not.

vi) Control:
A particular source of fund may affect the control and power of the owners on the management of a firm. As equity shareholders enjoy voting rights, financial institutions may take control of the assets or impose conditions as part of the loan agreement.

vii) Effect on credit worthiness :
Depending on certain sources of finance may affect the credit worthiness in the market. Ex: Issue of secured debentures may affect the interests of the creditors and they may not be willing to extend further loans to the company.

viii) Flexibility and ease :
Another aspect affecting the choice of a source of finance is the flexibility and ease of obtaining funds. Restrictive provisions, detailed investigation and documentation in case of borrowings from banks and financial institutions for example may be the reason that business organisations may not prefer it, if other options are readily available.

ix) Tax benefits :
Various sources may also be weighed in terms of their tax benefits. Tax is not deducted on dividend of preference shares. Interest paid on loans and debentures is tax deductible. In order to take advantages of tax benefits firms may issue debentures to take loans.

Short Answer Questions

Question 1.
What are the various types of capital required for business enterprises?
Answer:
Nature of Business Fiances :
Whether it be manufacturing or trading concern business finance is required which is called initial capital. The amount of capital required depends upon the nature and size of business. It consists of owner’s contribution and borrowing from different sources.

On the basis of the purpose of financial requirements of a business, business finance may be classified into two types.

1) Fixed capital:
The capital which is used to acquire fixed assets such as land and buildings, plant and machinery, etc. is called the “Fixed Capital”. These assets remain with the business for a long period. Capital required by the business concern to meet its long term needs is known as fixed capital. It is permanently kept in the business. It cannot be easily realised.

2) Working capital:
The capital required by a business organisation to run its day- to¬day operations such as payment of wages, salaries, electricity bills, purchase of raw-material, etc. is called working capital. The capital used in current assets is called working capital.

Current assets are those which can be converted into cash within a period of one year. Therefore it is also called circulating or revolving capital.

The working capital of the business concern depends on the nature of the business, size of business, production policy, etc.

Question 2.
Explain the classification of sources of finance.
Answer:
A brief explanation of classifications and the sources of finance is given below.

1) On the basis of period:
On the basis of period, sources of funds can be categorized into 1) Long term 2) Medium-term finance 3) Short-term finance. The long-term sources fulfil the financial requirements of an enterprise for a period exceeding five years. Such financing is generally required for the acquisition of fixed assets. Where the funds are required for a period more than one year but less than five years, medium-term sources of finance are used. Short term funds are those which are required for short duration i.e. a period not exceeding one year.
Ex : Trade credit, Bank Overdrafts, etc.

2) On the basis of ownership :
On the basis of ownership, the sources can be classified into owner’s funds and borrowed funds. Owner’s funds are those which are provided by the owners which include issue of equity shares and retained earnings. Borrowed funds refer to the funds raised through loans or borrowings. The sources include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits, and trade credit.

3) On the basis of generation :
Sources of finances can be generated from internal or from external sources. Internal sources of funds are those that are generated from within the business. Ex : Retained earnings, depreciation of funds, etc. External sources of funds include those sources that lie outside an organisation. E.g: Shares, debentures, public deposits, etc.

Very Short Answer Questions

Question 1.
Business finance:
Answer:
The term finance means money for funds. Financing means making money available when it is needed. It refers to money required for business purposes. Finance is the life blood of every organisation. The prosperity of a business unit mainly depends upon the availability of finance.

Question 2.
Fixed Capital [Mar. 2019 – A.P. m Mar. 2018, 17 – T.S. ; May 17 – A.P.]
Answer:
The capital which is used to acquire fixed assets such as land and buildings, plant and machinery, etc. is called “Fixed Capital”. These assets remain with the business for a long period. These items are not purchased for sale. In other words, capital required by the business concern to meet its long term needs is known as ‘Fixed capital’. It is permanently kept in the business. It cannot be easily realised.

Question 3.
Working Capital: [Mar. 2019; May 17 – T.S.]
Answer:
The capital required by a business organisation to run its day- to-day operation such as payment of wages, salaries, electricity bills, purchase of raw-material, etc. is called “Working Capital”. The capital used in current assets is also called “Working capital”.

Current assets are those which can be converted into cash within a period of one year. Therefore it is also called circulating or revolving capital.

The working capital of the business concern depends on the naturee of the business, size of the business, production policy, etc.

Question 4.
Long – term finance :
Answer:
The capital required for long period are termed as long term finance. This is usually required for period between 7 years to 20 years. This type of capital is used to acquire fixed assets such as land and buildings, plant and machinery, for working capital and also for expansion and modernization of the business. Long term finance can be raised through issue of shares, issues of debentures, loan from banks and other financial institutions, retained earnings, etc.

Depending upon the need any one of the above sources can be conveniently used to procure long term capital or finance.

Question 5.
Short – term finance :
Answer:
Funds raised for a period not exceeding one year is called short-term capital or short-term finance. This type of finance is used to meet day-to-day operating expenses of business such as purchase of raw materials, wages, salaries, etc. The amount of funds required depends upon nature of business, time gap between order and delivery of stocks, operating cycle and the volume of business.

It can be raised through Trade credit, Bank Credit, Advances from Customers, Bank Loans, Retained earnings and Bills of Exchange.

Question 6.
Internal sources of finance :
Answer:
Internal sources of funds are those which are generated from within the business. E.g.: Ploughing back of profits, retained earnings, collection of receivables disposing of surplus inventories, and depreciation of funds, etc.

Question 7.
External sources of finance :
Answer:
External sources of funds include those sources that lie outside an organisation, such as shares, debentures, public deposits, borrowing from commercial banks and financial institutions, suppliers, lenders, and investors.

Andhra Pradesh BIEAP AP Inter 1st Year Commerce Study Material 7th Lesson Formation of a Company Textbook Questions and Answers.

AP Inter 1st Year Commerce Study Material 7th Lesson Formation of a Company

Essay Answer Questions

Question 1.
Discuss the procedure to form a company.
Answer:
A Joint Stock Company requires a number of legal formalities to be complied with before it is brought into existence. Formation means the establishment of a company by fulfilling all formalities. The important steps to be taken by the company for formation are shown in the following chart.

1) Promotion :
Promotion is the first stage in the formation of a company. It involves identification of business opportunity or idea, detailed investigation, assembling the requirements, and financing proposition. Promotion is the process of organization and planning the finance of business enterprise under the corporate firm.

2) Incorporation or Registration :
A company being an artificial person comes into existence only after its registration with the Registrar of Companies. It is the legal process through which an enterprise obtains recognition as a separate legal entity. Private or public limited companies must file all the necessary documents with the Registrar to obtain the Incorporation Certificate. With this certificate the company gets a separate legal entity. For this purpose a number of steps have to be taken for registration.

3) Capital subscription :
After incorporation of a company the next step will be to raise the capital. A public company cannot commence business unless the minimum subscription as stated in the prospectus is subscribed. If a company does not receive 90 percent of the issue amount from the public as subscription within 120 days, it has to refund the amount to the applicant as per the guidelines of Securities Exchange Board of India (SEBI) guidelines within 10 days.

4) Commencement of business:
A public company has to file the following certificates, to get the certificate of commencement.

• A declaration that a prospectus or statement in lieu of prospectus has been filed
• A declaration that directors have taken up their qualification shares and paid them.
• A declaration that minimum subscription amount has been allotted and collected.
• A statutory declaration by the Secretary of the company or a Director that all the formalities relating to commencement of business are duly complied with.

A scrutiny is made by the Registrar with all the documents and issues a “Certificate of commencement of business”. The process of company formation comes to an end with the issue of this certificate.

Question 2.
Describe various steps involved in promoting a company.
Answer:
Promotion is the first stage in the formation of a company. It involves identification of a business opprotunity or idea, analysis of its prospects, gathering the relevant information and taking steps to implement it. Promotion is considered as putting an idea into practice.

Definition:
“Promotion is the process of organizing and planning the finance of a business enterprise under the corporate form.” – L.H. Haney

“Promotion starts with the conception of the idea from which the business is to evolve and continue down to the point at which the business is fully ready to begin operation as a going concern.” – Guthmann and Dougal

To be successful the idea of business must be exposed and investigation chart given the stages of promotion.

1) Discovery of an idea :
The success of business depends on the selection of a business line. The promoter has to form an idea about the type of business and its prospects. The promoter should analyse the strengths and weaknesses of the proposed idea, and develop the idea with the help of technical experts.

2) Detailed investigation :
At this stage various factors relating to the proposed unit are to be studied from the pratical point of view. To find out the strong and weak points of the idea a detailed investigation is conducted. The promoter shall estimate demand for the product, and then thinks of arranging finance and also considers the availability of workers, plant and machinery, raw materials, and cost of production. For this purpose technical experts, financial consultants, etc. are consulted.

3) Assembling requirements :
After making sure that proposed business is feasible and profitable the promoters make arrangements to assemble the requirements like directors appointment, selecting the place for unit, contacting the suppliers of raw materials purchasing of plant and machinery, etc.

4) Financing proposition :
The promoter decides about the capital structure of the company. In this process, he determines how much share capital will be issued, type of shares and debentures to be issued, and the nature of loans to be borrowed from financial institutions or banks for a long period.

Question 3.
Explain the process involved in Incorporation of a company.
Answer:
A company being an artificial person comes into an existence through incorporation. A Joint Stock Company whether private or public limited must be registered with the Registrar of Companies. It is called incorporation. For that purpose the joint stock companies must file all the necessary documents with the Registrar to obtain the Incorporation Certificate. With this certificate the company gets a status of legal entity.

A number of steps have to be taken up before getting a company registered.

1) Application for approval of name :
For approval, an application is to be submitted to the Registrar of Companies of the state and obtain the approval name. A company may adopt any name which is not prohibited under the Emblems and Names Act, 1950. The Registrar is expected to approve the name within 14 days of the receipt of application.

2) Preparation of Memorandum of Association (MoA) :
MoA is the constitution of company which describes its objects, scope and the relationship with outside world. This main document must be carefully drafted, stamped and signed by seven members in case of a public company and two members in case of a private company. As per the new amendment of the Act, 1950 one member is enough to sign on MoA in case of private company.

3) Preparation of Articles of Association (AoA) :
This is the second document which contains rules and regulations relating to the internal management and also the capital structure of the business. A public limited company may not require to file its own Articles of Association. However, it may adopt model clauses prescribed in Table A, Schedule I of the Act. A private company is required to submit its articles and duly signed by the signatories.

4) Preparation of other documents :
At the time of incorporation of a company the following documents are to be prepared and submitted to the Registrar of Companies.

• Consent of the first directors
• Promoters should execute a power of attorney in favour of one of the promoters or an advocate who is to carry out the formalities required for registration.
• When the location of the registered office is finalized, prior to incorporation, the notice of it is to be filed. If not, within 30 days of its registration it is to be submitted.
• When a company by its Articles appoints any person to act as Director, Manager, Secretary their particulars have to be filed within 30 days along with MoA and AoA of the company.

5) Statutory declaration :
A declaration that all the requirement under, the Companies Act, 1950 have been complied with in Form no. 1 is to be filed with the Registrar.

6) Payment of registration fee :
If the prescribed fees has to be paid towards registration of company.

7) Incorporation certificate :
The Registrar is satisfied with all requirements under the Companies Act, 1950, issues a certificate called “Certificate of Incorporation. With the receipt of this certificate, the company gets its recognition as a corporate body.

Question 4.
What is Memorandum of Association? Explain its clauses.
Answer:
The Memorandum of Association is the most important main document of the company. It is constitution and charter of the company. It provides the foundation on which the company structure is built. It defines the scope of the company’s activities as well as its relation with the outside of the company. The contents of the MoA cannot be altered at the option of directors or even the shareholder. It is to be altered only with Government’s and court approval in many cases. The purpose of the memorandum is to enable the shareholders, creditors, and those who deal with the company to know what is the permitted range of activities of the enterprise.

The memorandum has to be divided into paragraphs consecutively numbered and has to be printed. It should be signed by seven members in case of public company and by two members in case of private company.

Memorandum of association contains the following clauses :

1) Name clause :
The name of the company should be specified in this clause. A company can choose any name it likes, however it should fulfil the following conditions.

• The proposed name should not be identical or similar to the name of existing company.
• The proposed name should not convey any connection or link with a government department or local authority.
• The name of the public company should end with the word ‘Limited’, while that of private company should contain the word ’Private limited1.
• The proposed name should not be objectionable under the provisions of Emblems and Names Act, 1950.

The name of the company must appear on the outside of every office, or place of business, in one of the local languages and on all cheques, bills, letters, notices and other official publications, etc. of the company.

2) Situation Clause :
Every company will have a registered office. This clause should specify the place and the state in which registered office is located. It is necessary to determine the legal jurisdiction and to make correspondence. If the registered office is not confirmed on the date of incorporation, it should communicate the address to the registrar within 30 days of its incorporation. The purpose of stating the registered office is that all communications, notices, circular, etc. are sent to the registered office.

3) Objects Clause:
It is the most important clause in the memorandum of association. It defines powers of the company and the scope of its activites. A company is not authorised to do any business outside the purview of the objects clause. The objects of the company must be legal and very clearly defined. It contains main objects and other objects. Great care should be taken in drafting this clause.

4) Liability Clause :
It contains the nature of liability of its members. It means that the liability of a member is limited to the nominal value of shares held by him. The sharholders are not liable for the debts of the company. A company registered with unlimited liability is not required to give this clause in memorandum.

5) Capital Clause :
It contains the capital structure of the company. The amount of capital required by the company is stated in this clause. This is called Authorised capital or Registered capital. The capital is divided into small units called ‘Shares’. The company must mention the number and kinds of shares issued and the value of each share. Company is not authorised to issue shares over and above authorised capital.

6) Subscription or Association Clause :
This clause contains the names of signatories to the memorandum. The memorandum must be signed by at least seven persons in case of public limited company and by at least two persons in case of a private limited company. Each subscriber must take at least one share in the company. The subscribers declare that they agree to incorporate the company and agree to take the shares stated against their names. The signatures of the subscribers are attested by at least one witness each.

Question 5.
What is Articles of Association and also explain its contents.
Answer:
The Articles of Association of a company are its bye-laws or rules and regulations that govern the internal management of the company and the conduct of the business. It determines the relationship between the company and its members as well as among the members themselves. Articles of Association determine the powers of the directors and officers of the company. It must be printed, divided into paragraphs, numbered consecutively and signed by each subscriber of the memorandum and filed with the Registrar.

The contents of Articles of Association:

The Articles of Association is the document which contains the rules and regulations to be followed for the purpose of internal management of the company. It generally contains the following.

1. Rules and regulations.
2. Rules of preliminary contracts.
3. Provisions regarding use of common seal.
4. Procedure of issuing share capital, number and value of shares, issue of shares, , calls on shares, lien on members’ shares, etc.
5. Procedure for transfer and forfeiture’ of shares.
6. Procedure for issue of debentures and stocks.
7. Procedure for alteration of capital
8. Provisions regarding conducting the general meetings, special meetings, voting, proxies, etc. resolutions.
9. Rules regarding appointment of Directors and their remuneration.
10. Provisions relating dividends and reserves.
11. Preparation of Accounts and Audit, and method of appropriation of profits.
12. Winding-up procedure
13. Maintenance of Bank Accounts.

These bye-laws are very useful in inter management of the company.

Question 6.
What is prospectus? Explain the contents of prospectus.
Answer:
A private company can start its business immediately after receiving the Certificate of Incorporation. Whereas a public company has to raise the necessary capital from the public. In that connection the company have to invite the public to subscribe for shares in their company. This invitation to the public is known as “Prospectus”.

Definition :
As per Section 2(36) of the Companies Act, 1956, a prospectus is defined as “Any document described for issued as propectus and includes any notice, circular, advertisement or other document inviting deposits from the public or inviting offers from the public for purchase of any shares in, or debentures of a body corporate”.

Any advertisement offering shares or debentures of the company for sale to the public is called’Prospectus’.

Contents of Prospectus:
Every prospectus should disclose the matter as specified in Part -1 of Schedule-II to the Compnies Act. Some of the contents which every prospectus must include are

1. Name and full address of the company.
2. The particulars of the signatories to the memorandum of association and the number of shares taken up by them.
3. Name, addresses, and occupations of members of the Board of Directors.
4. The minimum subscription amount fixed by the promoters.
5. The details of property acquired if any.
6. The time of opening of the subscription list.
7. The capital structure of the company, and particulars of issue.
8. The amount payable on application, allotment, and calls.
9. Basis for the issue price
10. The particulars of preferential treatment given to any person for subscribing shares or debentures.
11. The addresses of the underwriters if any.
12. Particulars about reserves and surpluses.
13. The amount of preliminary expenses.
14. The name and address of Auditor.
15. Particulars regarding voting rights at the meetings of the company.
16. Management perception of risk factors.
17. ‘Disclosure of investors’ grievances and redressal system.

Short Answer Questions

Question 1.
What are different types of promoters?
Answer:
The following are different types of promoters.
1) Professional promoters :
The professional promoters are specialized promoters. Specialized promotion is their whole time occupation.

2) Accidental promoters :
They are not specialists in company formation. They promote own firms as entrepreneurs.

3) Financial promoters :
These are the promoters who float new enterprises during favourable conditions in the securities market.

4) Technical promoters :
This type of promoters promote new enterprises on the basis of their specialised knowledge and training in technical fields.

5) Institutional promoters :
These are promoters who provide technical, managerial and financial assistance for the promotion of a company.

Question 2.
Discuss the differences between Memorandum of Association and Articles of Association.
Answer:
Differences between Memorandum of Association and Articles of Association :

Memorandum of Association	Articles of Association
1) Nature : Memorandum is the charter of the company. It defines the objects and scope of the company.	It is a subsidiary document and contains the rules and regulations for the internal management of the company.
2) Scope : It defines the relationship between the company and the outsiders.	If defines the relationship between and its members and also the relationship among the members themselves.
3) Contents : It contains the objects and powers of the company.	It lays down the rules by which those objects are achieved.
4) Filing : At the time of incorporation, filing of memorandum is compulsory.	The filing of articles is optional. A public company need not file it. It can adopt rules stated in Table – A.
5) Status : Memorandum is sub-ordinate to Companies Act.	Articles of Association is subordinate to both Memorandum and Companies Act.
6) Alteration : It can be altered only under special circumstances with the prior approval of and central govt, court.	It can be altered by passing special resolution of the shareholders. In some cases only the approval of the cental govt, required.
7) Legal effects: The legal effects are more harsh on memorandum. Companies Act regulated it.	The legal effects are less on articles. The shareholders can modify the Articles and ratify it.

Question 3.
Explain the functions of promoters. [May 17 – T.S.]
Answer:
Promoter is the person who assembles the men, money and the materials into a going concern. Promoters are those who take various steps in setting up a business organisation. Promoter is mainly concerned with the promotion of a business venture. Discovery, investigation, assembling and financing, etc. are performed by the promoter.

Functions:

• A promoter conceives an idea for the setting up of a business.
• Promoter makes preliminary investigation and ensures the future prospects of business.
• Promoter brings together various individuals who agree to associate with him and share the business responsiblities.
• He prepares various documents and gets the company incorporated.
• Promoter raises the required finances and gets the company going.

Very Short Answer Questions

Question 1.
Define Promotion.
Answer:
Promotion means undertaking such a step, which would persuade a large number of people to come together for achieving a common goal through the company form of organisation. According to L.H. Haney, “Promotion may be defined as the process of organising and planning the finance of a business enterprise under the corporate form”.

Question 2.
Define MOA.
Answer:
According to Lord Cairns, “Memorandum of Association of a company is charter and defines the limitation of the powers of a company. It contains the fundamental conditions upon which alone the company is allowed to be incorporated”. The Memorandum of Association is the constitution of the company. It is the charter of the company. It provides the foundation on which the company structure is built. It defines the scope of the company’s activities as well as its relation with the outside world.

Question 3.
Minimum Subscription :
Answer:
The minimum amount of capital to be collected by a public limited company before its allotment of shares is known as “minimum subscription”. A public limited company cannot start business unless a minimum subscription as stated in the prospectus has been subscribed. It is fixed by taking into account the following requirements.

• Amount required for the purchase of property.
• Amount required for working capital.
• Amount required for payment of preliminary expenses.
• Amount required for any other expenditure for the formation of company.

Question 4.
Statement in lieu of prospectus :
Answer:
If the public company does not raise its capital by the public issue of shares, then it need not publish a prospectus. In such a company capital may be collected privately and shares may be allotted by the mutal agreement of a few people. Such public company having a share capital, and not issuing prospectus must prepare a statement in lieu of the prospectus and file it with the Registrar of Companies.

Question 5.
Criminal liability for misstatements in Prospectus:
Answer:
In case of Mis-statements or Misrepresentation in Prospectus, it gives rise to impose civil or criminal liability to pay compensation to the persons, who subscribed the shares relying on such false information in the prospectus and also criminal libaility to pay a fine up to Rs. 5000/- or imprisonment up to 2 years or both.

Question 6.
Certificate of commencement of business:
Answer:
A public limited company cannot commence its business unless it received a certificate of business commencement. This certificate is not compulsory for private limited company. It means private company can commence its business without the certificate of business commencement. The Registrar of Companies issues this certificate only when all the legal documents are submitted. Further, the registrar issues this certificate only on the confirmation of collection minimum subscription.

Question 7.
Prsopectus.
Answer:
A prospectus is a document which invites the public to promote funds to the company by way of subscribing to its shares and debentures. The history, nature, and profitability of the company is depicted in the prospectus.