Maharashtra HSC Organisation of Commerce and Management key terms

An economic activity in which goods or services are produced and exchanged with the aim of earning profit through the satisfaction of human wants.

That part of business activity concerned with the production, extraction, processing, or manufacture of goods, including the rearing of animals and generation of power.

The branch of business activity that removes hindrances of place, time, exchange, and knowledge by moving goods from producers to consumers.

Support services such as transport, banking, insurance, warehousing, and advertising that assist the smooth flow of goods and remove hindrances in trade.

The buying and selling of goods and services with the object of earning profit, classified as internal or external depending on whether it stays within one country.

The excess of revenue earned over the costs incurred in running a business, serving as reward for risk-taking and a measure of business success.

A business owned, financed, and managed by a single individual who bears all risks and receives all profits, with unlimited personal liability.

A voluntary association of two or more persons who agree to carry on a lawful business and share its profits, governed by an agreement among the partners.

An artificial legal person created by incorporation, having a separate name, perpetual succession, and capital divided into transferable shares held by members.

A rule under which a member's financial obligation is restricted to the unpaid amount on shares held or the amount guaranteed, so personal assets stay protected.

A condition in which the owner or partner is personally answerable for all business debts, so private property may be used to settle obligations.

The feature by which a company continues to exist despite the death, insolvency, or exit of members, since it is separate from its owners.

A voluntary association of persons formed to promote common economic interests, run on democratic control and service motive rather than profit maximisation.

A business owned and managed wholly or partly by government, set up to provide essential goods or services and promote public welfare.

The process of getting things done through others by planning, organising, staffing, directing, and controlling resources to achieve stated organisational goals efficiently.

General guidelines framed by study and observation that guide managers in handling situations, distinct from rigid rules and applied with flexibility.

The principle that total work should be split into small specialised tasks so each person performs a limited activity repeatedly and gains efficiency.

The principle that every subordinate should receive orders from and report to only one superior, avoiding confusion and conflicting instructions.

Deciding in advance what to do, how to do it, when to do it, and who will do it, thereby bridging the gap between present position and desired future.

The process of identifying a problem, developing alternative courses of action, evaluating them, and selecting the best option for implementation.

The framework of duties, authority, and relationships that determines how tasks are divided, grouped, and coordinated within an enterprise.

The number of subordinates that a superior can effectively supervise and control, which may be narrow or wide depending on the work.

The managerial function of estimating manpower needs, recruiting, selecting, placing, training, and appraising people to fill positions in the organisation.

Searching for and attracting prospective candidates in sufficient numbers so that the right persons can be selected for vacant jobs.

The function of instructing, guiding, supervising, and motivating subordinates so they work willingly towards achieving organisational objectives.

The ability of a manager to influence the behaviour and actions of subordinates so that they strive willingly towards group goals.

The inner drive that energises and sustains behaviour, pushing a person to act in a desired manner to satisfy needs and achieve goals.

The orderly synchronisation of efforts and activities of different departments so that they work together without conflict towards common goals.

The process of comparing actual performance with planned standards, finding deviations, and taking corrective action to keep activities on track.

The sum of internal and external factors such as economic, social, legal, and technological forces that influence the working of a business.

The process of identifying opportunities, arranging resources, and bearing risk to create and run a new business venture for profit.

The set of controllable elements, commonly product, price, place, and promotion, blended by a firm to influence demand in its target market.

The practice of giving a product a distinctive name or symbol so buyers can identify it and distinguish it from competing products.

Measures, including law and redressal machinery, that safeguard buyers against unfair trade practices, defective goods, and misleading claims.

The funds required for meeting day-to-day operating expenses such as wages, raw material, and bills, usually recovered within a short period.

Funds invested in long-term assets like land, buildings, and machinery that are used repeatedly and not converted into cash quickly.

The activity of planning, raising, and managing money needed by an enterprise for starting, running, and expanding its operations.

A trader who buys goods in large quantities from producers and sells them in smaller lots to retailers, linking manufacture with retail trade.

A trader who buys goods from wholesalers and sells them in small quantities directly to final consumers for their personal use.