Define the term Bank.

The word Bank has been derived from Banque which means a bench. Mahajan and Sahukar used to lend money to people while sitting on a bench and accepts deposits from public and grants loan to industry and trade.

According to Indian Banking Companies Act, 1949, a bank is an institution accepting deposits for the purpose of lending or investing deposit from public repayable on demand or otherwise, withdrawal by cheque, drafts, order or otherwise.

According to Walter Leaf, a Bank is a person or corporation which holds itself out to receive from public deposits payable on demand by cheque.

What is the future of warehousing ?

Technological advances and faster, more reliable transportation that make it possible for companies to operate with much smaller inventories are transforming the nature of warehousing. To serve in today's competitive market place, tradition inventory storehouses are making radical changes to become effective supply chain partners.

For example, one significant trend is increased use of cross docking, an approach whereby products received at a warehouse are immediately shipped out without ever being put into storage. With computerized information systems, warehouses can pre-assign a shipping door for each inbound carton.
When the shipment arrives, a receiving dock employee can quickly apply a bar-coded-shipping label that includes destination data, and place the carton directly on an outbound vehicle. Cross docking is even changing the configuration of the warehouse.
Although traditional warehouses are square, with truck doors on one side and rail doors on the other, combination storage/cross dock warehouses took more like a modified U with storage at either end and cross-docking areas in the center.
Goods are received through the cross-dock area and moved directly to shipping doors or, if necessary, to short-term storage, which minimizes the distance goods have to travel within the warehouse.

With more and more companies eliminating inventory, warehouses are performing fewer storage functions. Instead, they are growing adept at keeping products moving quickly and accurately.
This requires sophisticated computer information systems to minimize storage costs and time while maximizing quality service to warehouse customers.
The best warehouses are therefore reinventing their role as supply chain partners by becoming expertly managed "flow through" centers.


How the evolution of Life Insurance business has taken place ? Also give the profile of packages offered by LIC.

Life insurance in its modern form is a western concept. Although, it has been taking shape for the last 300 years, it came to India with the arrival of the Europeans. The first life insurance company was established in India in 1818 as Oriental Life Insurance Company mainly to provide for widows of Europeans.
The companies that followed mainly catered to Europeans and charged extra premium on Indian lives. The first Indian company insuring Indian lives at standard rates was Bombay Mutual Life Insurance Company, which was formed in 1870.
This was the year also when the first Insurance Act was passed by the British Parliament. The years subsequent to the Swadeshi Movement saw the emergence of several insurance companies. At the end of the year 1955 there were 245 insurance and provident societies.
All the companies were nationalized in 1956 and brought under one umbrella—the Life Insurance Corporation of India (LIC) which enjoyed a monopoly of the life insurance business till near the end of 2000.
By setting up the Insurance Regulatory Development Authority in April, 2000 the government of India effectively ended LIC's monopoly and opened the doors for private insurance companies.

A profile of packages offered by LIC :

1. Jeevan Mitra : Double benefit Endowment Assurance Policy with additional insurance cover equal to the sum assured in the event of death before maturity.

2. Jeevan Sathi : A joint life insurance for couples. Assured sum, immediately payable in the event of death of one of the partners, to the survival partner who need not pay further premiums. The policy is kept alive and will continue to earn bonuses declared on the basis of yearly valuations.
Once again, the basic sum assured with bonuses is payable to the surviving partner on the date of maturity or to the nominee in the event of death of the surviving partner before the date of the maturity. If both partners survive the selected term, the basic sum assured with bonus is paid on the date of maturity.

3. Money Back Policies: Suitable for those who periodically need lumpsum payments. It provides risk cover and lumpsum payments.

4. Jeevan Surabhi: An improved version of Money Back Policy (MBF). Provides increasing life insurance cover with lumpsum payments at short intervals and limited premium paying term.

5. Bima Sandesh : Low-premium term assurance plan. Premium is paid only on survival.

6. Jeevan Kishore : (Exclusive plan for children aged 7 and above), Jeevan Sukanya (ideal scheme for the girls aged 1-12), Jeevan Griha (specially designed for those who need a house) and Jeevan Akshay are the pension plans.


What are the various types of warehouses ? Explain.

Types of Warehouses : There are various types of warehouses :

1. Private Warehouses : These are the warehouses owned by the traders or producers. In these warehouses they keep their own products and do not allow anybody else to keep their goods. Hence they are called private warehouses.

2. Public Warehouses : These warehouses are owned by private companies and government agencies. These godowns are large size and used by all persons such as traders, farmers, exporters, importers and government agencies. These godowns are located in the commerical centres of big cities. Their main objective is to make earning by providing storing facilities.
Once the goods are stored in the godown, warehouse receipt is issued to the owner of goods. After making the payment of godown charges goods are returned.

3. Bonded Warehouses : These are public warehouses which are licensed by the Government to accept imported goods for storage before payment of customs duty by their importers. When the importer finds that he cannot conveniently make payment of customs duty on the goods imported by him, he can request the customs authorities for storage of goods in the bonded warehouse till the customs duty is paid.
These warehouses are located very near to the ports. The management of these warehouses is responsible to see that the goods are not released till the duty on them is paid. The goods which are so stored are often known as goods in a bond meaning thereby that till the import duty is paid these are not be released. By storing the goods in these warehouses, the importer is able to conveniently arrange for payment of import duty and get the goods released as and when and in whatever quantity required.
Bonded warehouses may be owned privately or by the dock authorities. But in any case these warehouses have to work under the very close supervision of the customs authorities.

4. Duty paid Warehouses : These warehouses are located near the ports but are outside the dock bonds. They are constructed by Port Trust Authorities. We have such warehouses in Mumbai. When duty is paid on imported goods the importer can take the goods away into the domestic market.
But it may sometimes so happen that the importer may not be able to arrange for transportation of these goods immediately. In such case, the importer may keep the goods in duty-paid warehouses until they are transported. For this facility, the Port Trust Authorities charge a specified rent.

5. Commercial Warehouses : Some individuals or firms get built warehouses to provide storage facilities on rental basis. Such warehouses are constructed at commercial and industrial centres. These warehouses are maintained properly.
Power arrangements are made for the preservation of goods stored there. These warehouses may be insured and are run according to the rules and regulations of the government.

6. Cold Storage Warehouses : Some perishable goods such as vegetable, milk, eggs, fruits, etc. require to be stored for long without getting spoiled.
Cold storage warehouses offer the facility of storing such goods. These warehouses require cold temperature so that perishable goods can be stored long.

7. Co-operative Warehouses : These warehouses are run by co-operative societies to provide warehousing facilities in rural areas. Factories in co-operative sector have their own storage faculty, for instance, most of the sugar factories in Maharashtra have their own storage facilities.

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Describe significance of communication.

Communication is as vital to the efficient functioning of an organisation as the circulation of blood in the human body. With communication management is impossible. The effectiveness of a manager depends largely upon his ability to understand his subordinates and to make himself understood by them. Communication is the link that unites superior and subordinates and brings about mutual understanding among them.

In recent years, the importance of communication in industry has increased on account of the following factors :

1. Large size of organization : Modern organization are large in size and employ a large number of people to realize their objectives. When the number of persons working together is large, cooperation and coordination between them become more difficult.
A formal and effective communication system is required to ensure mutual co-operation and co-ordination.

2. Technological advancement : Rapid changes in technology is a distinctive feature of modern industry. A large enterprise has to adopt latest technology to survive and grow. New technology is generally resisted by the workers.
A sound system of persuasive and educative communication is required to overcome the resistance to change. With the help of communication, management can remove the misgivings and rumours prevailing among the workers in relation to technological changes.

3. Growth of trade union movement: In almost all the industries, workers have organized themselves into powerful trade unions. In order to ensure industrial peace, management must maintain cordial relations with the trade union leaders.
A two-way communication between management and unions is very helpful in developing mutual understanding and cooperation between the two.

4. Emphasis on human relations : Employer-employees relationship is no longer considered as master-servant relationship. Workers are treated as partners in industry rather than a commodity. Management must understand the needs, aspirations, feelings and value system of employees in order to manage them effectively. Two way communication is a very effective means of understanding and managing human behaviour.

5. Public relations : A modern business enterprise is conscious of its responsibilities to the society. It seeks to create and maintain a favourable image of itself among the various social groups. It can do so by keeping the different segments of society informed about its social obligations.

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What do you mean by Life Insurance ? Explain the method of obtaining Life Insurance Policy.

Life insurance is a contract between a person and the Life Insurance Corporation. According to the contract of insurance a specified sum of money is payable by the Life Insurance Corporation on the death of the insured or after the expiry of the policy period, whichever is earlier subject to the payment of the premiums, whenever due, the amount of the premium is determined on the basis of the amount of the policy, the period of the policy and periodicity of the premium, whether monthly, quarterly, half yearly or annually.

There is an element of investment in the life insurance, because the amount of the policy is received in both the case i.e., on the death of the insured or at the expiry of the policy. Life insurance is not a contract of indemnity because it is impossible to compensate the deceased policy holder.

Method of obtaining Life Insurance Policy:

1. Proposal form : The prospective policy holder has to fill in this proposal form, necessary information like, name, address, profession, status of health, family history etc. All the material information are disclosed. Insurance is the contract of good faith, so all the statements made must be true and factual.

2. Medical examination : The proposer is medically examined by the doctor of the corporation.

3. Proof of the age : The proposer has to give satisfactory documentary proof of age.

4. Premium : The policy holders have to pay the insurance premium, which may be monthly, quarterly, half-yearly or annually. A grace period of 15 to 30 days is allowed. Premium is payable in advance. If the premium is not paid the policy is cancelled but may be renewed.

5. Risk : After the receipt of the first premium the risk starts and continues, so far the premium are paid on due dates.

6. Acceptance of the proposal : If every thing is satisfactory, the proposal is accepted. Finally insurance policy is sent with all the terms and conditions to the insured.