Correspondence

CORRESPONDENCE Letters are usually classified as
1. Private for correspondence between the friends and relative.
2. Commercial or business for correspondence between traders , bankers , financiers, merchants, manufacturers and agents.
3. Official
For correspondence between and national and local public bodies and their correspondence concerning the government and its various form of administration.
BUSINESS LETTERS
It refers to the letters entering into business transactions. Modern businessman has to write a large number of letters. The larger the business the greater is the volume of correspondence.
MECHANICAL PARTS OF BUSINESS LETTER —
A business letter consist of following parts:
1. HEADING
It is sort of advertisement and that is why they are set up in a very attractive ,manner. The heading is printed at the top pf a letter paper. It should be compact and well arranged. It should consist of printed names and address of individual firms company or corporation sending the letter. The telephone number, telegraphic address, codes used, date and reference number are also given with the letter head.
2. INSIDE ADDRESS
It is the name and address of the party which is being address. It should be exactly the same as the outside address on the envelope. The name of the person or the firm used is an inside address must have proper courtesy titles. The common prefix for a man is Mr. if a person hold a degree or a title it must be added to his name such as Dr. Khan., if a person holds a university degree, it will precedes his designation as Mr. Raus-UL- Hasan M.Com, M.A, S.E.S.
3. SALUTATION
This is the compliment or greeting preceding the body of the letter. It would always be in harmony with the personal relations of the writer except in care of official letters which invariably have Sir for situation. The most common forms of salutation in a commercial letter are Dear Sir when addressing one gentle man, Dear Sirs for a firm or company.
4. THE BODY OF THE LETTER
The entire letter is to be divided into suitable paragraph which ius not only the question of appearance but giving the reader breathing times. Each paragraph should contain one topic. The correspondent should commence a new paragraph whenever he switches on a new topic. The introductory paragraph should be very carefully written. In subsequent paragraphs the discussion should continue dealing with the main subject matter of the letter. The last paragraph should be written in good spirit.
5. COMPLEMENTARY CLOSE
It consist of words of respects like “ Yours faithfully” , yours sincerely etc.
6. SIGNATURE
The writer of the letter has to put down his signature in ink just below the complimentary close. A letter without signature is unauthentic.
7. DIRECTORS AND STENOGRAPHER’S INITIAL
These initials are usually placed in the lower left hand corner of the letter. These are put down with a view to hold the persons responsible. The usual method of writing is thus;
AS/HK
The letters AS indicates the initials of the person and HK of the typist.
8. POST SCRIPTS OR PS
If due to some after thoughts the writer wants to add something after the completion of the letter he puts down PS and after that writes down what ever he wants. PS should also be signed by the writer.
9. ENCLOSURES
If the letter is sent along with the documents, it should be indicated by writing about the enclosures on the left hand at the bottom corner of the letter paper.
ARRANGEMENT OF THE BUSINESS LETTER
(1) Heading
(2) Inside Address (Place and Date)
(3) Salutation
(4) Body of the Letter
First Para ——————————————————————————–
Second Para ——————————————————————————-
Third Para ——————————————————————————–
(5) Complimentary Close
(6) Signature
(7) Enclosures
(8) Stenographer’s Initials
(9) Post Script
CHARACTERISTICS OF BUSINESS LETTERS
A good business letter is the one which achieves the object for which is being written. Some of the essentials to make a business letter effective are given below:
1. CLEARNESS
It must be so lucid that the subject is clear, even at rapid reading. As it is not possible for the busy business man to give much time on reading. This can be achieved only when the writer understating the subject and has command on language.
2. ACCURACY OF STATEMENT
Whatever is written must be correct. There should not be any incorrect statement. Special care is to be taken in writing amounts.
3. COMPLETENESS
It should be complete in all respects so that no information is e.g. order for goods must give quality, price, mode of carriage, methods of payment etc.
4. COURTESY
All correspondent are o be treated ad gentlemen. It does not mean humility. What is required is honest , frank and straight, forward statement of facts worded in polite and courteous language. Special care is to be taken when drafting dunning letters of complaint.
5. BREVITY OR CONCISENESS
The letter should be as short as possible in view clearness, completeness and courtesy. Brevity should not be at the expense of completeness. There is no place for flowery language in business letter.
6. SOURCEFULLNESS
The letter must be effective convincing and impressive. These are the days of competition and many times it depends on a letter that business is created and goods sold.
7. NEATNESS AND DISPLAY
The letter must be clearly written or typed, properly folded and put into proper size envelope.
8. ORIGINALITY
Age long phrases are not to be copies but the writer should try to be original so that he is able to assert his individuality. American writers and businessmen has been first to discard old and ancient ways. A letter is written in original fashion will soon attract the attention among thousands in stereotyped manner.
9. UNITY
Clearness of letter depends to great extent on its unity or oneness. One thought should naturally follow another and each sentences must show proper arrangement.
VARIOUS TYPES OF LETTER
Wanted accurate typist preferably knowing shorthand at salary of Rs.250/- per month. Hand written application with testimonial to be addressed to CIBA (Pakistan) Ltd., P.O.Box no. 63.-“Dwan dated 27th December, 1974”.
The manager,
CIBA (PAK) Ltd.,
P.O.Box No. 163,
Karachi.
Sir,
In response to your advertisement in dawn of 27th December, 1974, I wish to apply for the post
of typist advertised by you.
I passed the intermediate commerce examination in 1969 from the board of secondary education,
Lahore getting distinction in the steno-typing and was placed in the second division.
I was employed by M/s. Ali Automobiles, Ltd., Lahore in1970 as a steno-typist which company I
have been serving since then.
I easily type 50 words per minute quite easily neatly and accurately and my speed in shorthand
is 120 words per minute. I am drawing Rs. 175/- per month and my relation with my present employers are quite happy. But they are unable to offer me attractive prospects that are why I am applying for the post.
I am young man of 25 years of age and posses a robust health. I have active and sober habits.
I enclose two copies of testimonial. I am also pleased to refer you my present employers.
I shall be glad to come for interview when convenient to you.
You’re respectfully,
Mohammad Ali.
Encl :2
Habib Vila,
Lawrence road,
Lahore,
January 1,1973.
Statement of qualification and experience
NAME……………………………………….Mohammad Ali
AGE AND HEALTH…………………………….25 years and posses a robust health
EDUCATIONAL QUALIFICATION…………………Passed high school examination from government model school, Lahore in 1968, with commerce and typewriting as optional course, passed intermediate examination of Punjab board in second in the year 1070 with shorthand and typewriting as optional object.
EXPERIENCE…………………………Since 1970 I am working as a stenographer with m/s Ali automobiles Ltd. Lahore.
PRESENT SALARY AND REASON FOR LEAVING JOB ……………….. Drawing a salary of Rs.2700/- per month and have very good relations with employers. Leaving the service for better future prospects.
REFERENCE ……………………………. Reference may be made to M/S ALI automobiles Ltd.Lahore.
APPOINTMENTS
CIBA (PAKISTAN) LTD .chemists and druggists

I.I Chundrigar road,
Karachi.
25th January ,1975.

MR.Mohammad Ali
Habib Vila
Lawrence road,
Lahore.
Dear sir,
We have your application of 1s t January,1975 for the post of stenographer. We are glad to
inform you that we have decided to appoint you as stenographer in our firm on a salary of Rs.350/- per month. Please let us know by return post when we may except you to join us.

Your’s Faithfully,
CIBA Pak Ltd.

PAKISTAN CHEMICAL INDUSTRIES

5, New Queens Road,
Karachi
January

Hassan ahmed Chemicals,
Purani anarkali’
Lahore.
Dear sir,
Having some prospects of concluding substantial business with the firm mentioned on the
slip attached below, who have given us your reference, we write this letter. As the firm in question had no previous business dealings with us , we are not aware of their financial status ,business conduct and the reputation of the persons controlling the firm.
We shall be pleased to learn if you deem them worthy of a credit upto Rs.10,000.
We thank you in advance for any information with which you can favour us as to the
solidity of the firm and we assure that the information supplied b you will be kept strictly confidential and we would be glade to place ourselves at your service in similar matters.

Yours faithfully ,
Pakistan chemical industries.

REPLY
Dear sirs,
Today we received your enquiry about the standing and financial position of messes. Noorani
&Co, of your city. We are glad to say that we can give you nothing but favorable reply as we have dealt with the team to last five years and have never experienced any difficulty in recovering our dues . they have considerable amount of capital and have never known to have sufficient losses .
We shall have a no hesitation in according them the credit mentioned by you .however this is
without obligation on your part and hope this information will serve your purposes .

Yours faithfully
Ahmed Chemicals

ORDER LETTER
EASTERN CARPET HOUSE CARPETS &DARI MERCHANTS

|M.A |Jinnah Road,
Lahore.
20th January,1975

Modern Carpet and Dari house ,
Carpets & |Dari Merchants ,
M.A Jinnah Road ,
Karachi.
Dear sirs,
We thank you for quotations dated January 4,1975 and shall be glad if you will send us by good train as early as possible the following :- Carpet as per sample No .213_ _ 20’X15’_ _ _4 pieces Carpet as per sample No .312_ _ 20’X20’_ _ _3 pieces Please send us the Railway Receipt properly endorsed in our favor and drawn up our bankers Habib Bank Ltd . Abdullah Hoaroon Road Branch for the invoice value after deducting 2% cash discount .
We trust this will receive your immediate attention as we are much short of stock at present
and have large outstanding orders .
Yours faithfully
Eastern Carpet House
DIAMOND SILK HOUSE
Silk Merchants
Cloth Market , M.A Jinnah Road ,
Karachi.
The Chief commercial Manager,
Pakistan Western Railway ,
Lahore.
Dear sirs,
We took delivery this morning of ten bales of cloth consigned to us by Massrs. lyallpur, silk mills Ltd,lyallpur ,as per R/P No.42072 dated January 5,0976.two of the bales bore distinct evidence of having been tempered with in transit . we noted down this fact on the Railway Receipt while surrendering it to the |Railway authorities at Karachi.
We find that hundred yards of printed silk has been removed from both the bales . our
estimate of damage is Rs . 1,000/_ .we are enclosing a copy of the invoice and the certificates given by the Staten |Master ,Karachi ,in whose presence we opened the bales .
We request you to please accept our claim promptly.
Your faithfully | Diamond silk House.
MOHD . RAIZ MOHD SHAFI
EXPOTETERS &IMP[OTERS
32, I .J chundrigar Road, Karachi.
Messrs .Ramzan Bros.,
5,M.A Jinnah Road ,
Lahore.
Dear sirs,
We have to bring to your notice a change in the constitution of our firm . Mr.fazal raza, our valued partner has been serving from ill health for the last 12 months an d he find him selves unable to take up the responsibilities of an active business carrier. He has , therefore decided to retrieve from business from the 1st march 1975. we are really very sorry to lose his valuable partnership but consideration of health do not permit us to force him to continue shouldering the responsibility. We are , how ever , glad to inform you that we have arrange to take Mr. Muhammad Shafi who is the man of wide experience and fixed well for a business like yours. Further more his inclusion into business will enable us too continue the present policy of business to cause a large increase also.
In order to settle all matters in connection with the old account we have reconciled accounts on the 20th instant and shall be glad if you will please forward us a cheque of Rs. 59/- only for the amount due on you.
Hoping to receive your immediate attention.

Yours faithfully
Mohd. Shafi.

Salesmanship

INTRODUCTION AND DEFINITION Advertising and salesman are two aspects of the marketing goods and services. Salesmanship is the basis of all trade, the first and last object of which is to market goods and services to the mutual profit and tasting satisfaction of buyers and the sellers. This service is essential for the producer. The distribution of goods as personal or impersonal of assisting the prospective customer to buy a commodity or service. As salesman has to sell ideas; ideas of beauty, of health, of economy, of prosperity, of service etc. the salesman therefore must know not only the details of his commodity but also know human nature so as to lend his customer to accept his ideas.
QUALITIES OF A GOOD SALESMAN
1. EDUCATION
He should be an educated person, and should have studied the subject of salesmanship so as to know certain essential connected with this field.
2. COURTESY
He should respect to his customers, and should not become angry even if his customer gives the lowest offer.
3. LOYALTY
He should show the customer that he is the well wisher of the customer and wants to give him the article which is best suitable for him.
4. ATTENTIVENESS
He should attend to his customer in a nice way and should show the articles which he needs.
5. TACT
He should have the tact to attract customers either by calling or by his motions and should be able to show the goods tactfully which his customer needs.
6. HONESTY
He should be honest with his customer and should make the customer known the prices which are reasonable.
7. IMAGINATION
He should have the capability to imagine the things which his customers want.
8. POLITENESS
He should be polite with his customer and should talk with him such a way so as to show that he is his well-wisher.
9. CHEERFULNESS
He should have a smiling face and should never make his customer fearful. Cheerfulness makes the customer friend of salesman.
10. PATIENCE
A salesman should always be patient and should always think in term of progress.
11. CHARACTER
He should have a sound moral character and should not commit such fruits with male and female customers which may dis-name his organization i.e he should not be corrupted.
12. BEHAVIOUR
He should think that customer are his masters, which is usually thought of by a good and reputed salesman.
13. PERSONALITY
He should have attractive personality because it helps him in convincing the customers and affecting sales.

Co-Operative Society

INTRODUCTION Co-operative society is voluntary association of small producers or consumers for their mutual benefits. It is formed for producing and supplying goods in accordance with the needs and requirements of the member who compose it. The members form and carry on the business of co-operative societies themselves. They are the owners, workers and mangers of the society. They have democratic control over its organization and management. It is formed for the purpose of achieving economic, social and educative benefits. Profit making is not the man aim of such organizations. Its aim is to eliminate the services of middlemen. It brings benefits for the welfare of the members with the help of applying the principals of all for each and each for all into practice. Its success depends on how much mutual co-operation in between the members has been developed.
CHARACTERISTICS OF CO-OPERATIVE SOCIETY:
The following are the main features of the Co-operative society:-
1. OBJECT
Its main aim is to bring mutual benefit to the members who compose it. Money making is not the main aim of the Co-operative Society. The Society looks after the welfare of the members. It aims producing and supplying goods to meet requirement of the members.
2. CAPITAL
It collects capital from the members. The members purchase shares in the cooperative society and provide necessary capital to it. The cooperate society is divided into fix number of shares. To become a member of the society one must purchase at least one share.
3. MEMBERSHIP
There must be at least 15 members in a cooperative society. But one cannot become a member of the society unless he attains the age of maturity.
4. DEMOCRATIC PRINCIPLE
The cooperate society is based on the principle of democracy. Every member enjoys rights. Everyone has got only one vote. Policies of the society can be criticized by the members. So the members have a democratic control over the affairs of the society.
5. TRANSFERABILITY OF SHARE
The shares of the cooperative society can be transferred to the members of the society. They cannot be transferred to nonmember.
6. DIVISION OF PROFIT
Although it is not the main idea of the cooperative society to earn profit at any cost yet it often earns a handsome profit. The profit of the society is distributed to the members on the paid up capital but the profits of the consumers cooperative society are distributed in proportion to their total purchases during the trading period.
7. ENTITY
The cooperative society has a separate artificial entity. Thus its entity is independent of the members.
ADVANTAGES OF COOPERATIVE SOCIETY
1. ELIMINATION OF MIDDLEMAN
The consumers get their requirements direct from the producers or they supply their own requirements. hence the cooperative society eliminated middleman and makes the goods available to the consumers at cheaper rate.
2. ECONOMY
Certain economies can be enjoyed by the members of cooperative society in the field of production an distribution. The society has not to bother from marketing the goods. the members are its regular customers and it need not advertise its good in the market.
3.CAPTURE MARKET
The cooperative society sells goods at a cheaper rate. hence it can easily attract a good number of customers.
4. NO SURPLUS STOCK
The society has got regular customers so it has not to keep any surplus stock in hand.
5. SAVING OF MANAGEMENT EXPENSE
Sometimes the members render free services to manage the affairs of the society. They do not demand any remuneration.
6. EDUCATIVE VALUE
The members are able to learn the principles of cooperation. They learn how to render services for the mutual benefits of themselves. They learn about economic and social aspects of human life.
7. PROVISION FOR THE MAINTENANCE OF THE POOR
Poor people accumulate and invest their small saving in the society which brings for them a better standard of living particularly it increases the income of agriculturists and the people who have been engaged in small and cottage industry.
8. SOCIAL BENEFITS
It develops self-confidence and self -reliance among the general people. They learn the principal ‘Self-help is the best help’. At the same time it develops them a sense of cooperation and sacrifices.
9. PROVISION FOR EMPLOYMENT
It solves unemployment problems of the under developed countries. People find employment in small and cottage industries to earn their livelihood.
10. INTEGRATION
Under this system of production and distribution a complete integration between the manufacturers wholesalers and the retailers is possible.
11. EQUAL DISTRIBUTION OF WEALTH
Under the system of production and distribution wealth cannot be concentrated in few hands. Equal distribution of wealth takes place under this system.
12. EQUAL STATUS
There is no master servant relationship in between the members of cooperative society. All are the owners managers, and workers of the cooperative society.
DISADVANTAGES OF COOPERATIVE SOCIETY
1. LACK OF CAPITAL
It suffers from lack of capital because it is an organization of poor people. They cannot afford large amount of capital so they cannot afford to expand the size of the business.
2. LACK OF INTEREST
As the market for the products of cooperative society has been guaranteed so the organizers and managers do not pay keen interest in the management of cooperative society.
3. LACK OF EFFICIENT PERSON
It fails to accommodate men of talent, skills and initiative because it requires free services from them. Such people may not be interested to join the cooperative society.
4. LACK OF COOPERATION
It requires cooperation and selflessness and other facilities which are rarely found in the general people. There is no scarcity of mean minded people living within individuals of the society. The society remains for its success.
5. UN-EDUCATION
Most of the members of the cooperative society are uneducated and unskilled. So the management of the society may fall in the clutches of selfish people.
6. FREQUENT CHANGE IN DEMAND OF GOODS
The cooperative society cannot be carried on successively in the fields where the demand for goods changes frequently.

Chamber of Commerce

Introduction Chamber of commerce and industry is a voluntary non-trading association of persons who are directly or indirectly connected with commerce and industry. Its purpose is to promote trade and business and protect the business interest of its members. Thus, only the businessmen, industrialists, bankers and professional men like accountants, auditors are entitled to be members of the Chamber of Commerce. The Chamber of Commerce is organized on regional basis. The businessmen of a particular area form such organization e.g. Karachi Chamber of Commerce, Lahore Chamber of Commerce, Peshawar Chamber of Commerce.
Chamber of Commerce may be formed under Companies Ordinance as a Joint Stock Company or under Trade Union Act. Usually, the liability of the members is limited by guarantee. The members pay an annual fee to the Chamber of Commerce. Generally Chamber of Commerce and Industry is governed by a board of directors and a president. The board appoints a secretary who is responsible for discharging all the work of the organization. He formulates the program, holds the meeting and manages the office.
Functions of Chamber of Commerce
1. It helps to develop trade and industry of a country and looks after and protects their interest.
2. It collects all sorts of information concerning commerce and industry and maintains numerous records which are necessary in connection therein.
3. It issues reports and Journals at regular intervals full of information regarding commerce and industry for its own members as well as for the general public.
4. Advisory services on labour practices and disputes are provided.
5. It helps the members in recovering debts.
6. It provides trade reference information about financial status of its members.
7. It protects trademarks and patterns and thereby encourages the cause of national commerce and industry.
8. It acts as arbitrator in case there is any dispute between businessmen.
9. It helps the exporters and importers by furnishing information of various natures in connection with import and export.
10. It issues export certificate and certificates of origin which are very common instruments in international commerce.
11. It advances commercial and technical education in the country.
12. Nowadays, an active part is played by the Chamber in influencing economic policy of the government. It examines the budget every year and suggests appropriated modification in the tax proposals.
13. It invites the attention of the government and public on matters affecting trade, commerce and industry of the country.

Middlemen and Their Different Kinds

INTRODUCTION “ A business concern that is specialized in rendering services immediately involved in the purchase or sale of the goods in the process of distribution is known as middle man.”

There term middle man included all those who operates between producer and consumers. They function in buying and selling if the commodity. The wholesalers and retailers are middleman dealing in the ordinary function of buying and selling. There are other such as brokers. Commission agents, dealers and merchants who assist the buyers ans sellers in the market.
KINDS OF MIDDLEMEN
Some of the middle men are explained as follow
1. BROKER
A broker is an agent involved to buying and selling on behalf of principal for a commission. He does not hold any stock nor deals with his own name. his function is only to negotiate and make contract of sales and purchases on behalf of others. He is paid for his labour called as brokerage. There are different classes of brokers. They are produce broker, stock broker, insurance broker and ship broker.
2. FACTOR
He is an agent whose function is to receive goods from his principal for sale in commission. He can sell goods in his own name, pledge goods in his own possession receive payments and gives receipts. He is liable on contract of sale he enters into on behalf of his principal. A factor is also called a consignment broker.
3. COMMISSION AGENT
He acts on behalf of foreign importer. His function is to buy goods on behalf of client abroad and to dispatch them in accordance with the instructions. He receives a commission for his service.
4. UNDERWRITER
They enter into agreement with promoters of newly started company which have not been taken up by the public. For this guarantee they are paid commission known as underwritten commission.
5.DEL CREDERE AGENT
He is an agent who in consideration for extra remuneration called del credere commission. Guarantees to his principal that the third person with whom he enters into contracts shall perform their obligation. Thus such an agent guarantees to his principal that he will only sell to person who will pay for what they buy and if the buyer does not pay, he will pay.
6. TRAVELLING AGENT
Sometimes wholesalers appoints number of agents who goes from place to place , show catalogues, price lists etc. to retailers , book orders and forward them to their principals who executes them. They receive their commission in return of their service.
7. SELLING AGENT
Sometimes wholesalers and manufactures appoints certain shop-keepers in different parts of the country as their selling agents. These agents receive commission on all sales in addition to the expenses which they have incurred on behalf of principal.
8. AUCTIONEERS
An auctioneer is an agent who sells goods by auction ie to the highest bidder in public competition. He has no authority to hold the goods sold and can deliver the goods only on receipt of price. He is the agent of the vender.
9. FORWARDING AGENT
This is the type of agent who is engaged in forwarding the goods to there destination on certain charges.
10. CLEARING AGENT
This agent is involved in clearing the imports on behalf of their principal. The duties include taking the delivery of the goods from the ship and attending to custom formalities for certain commission.
DISTINCTION BETWEEN FACTOR AND BROKER
Factor
1. He has the possession of goods or documents which entitle him to the possession.
2. He carries out the trade with his name.
3. He is himself liable in respect of the contract of sale.
4. He receives payment from the customer and gives him discharge.
5. He has lion in respect on goods in respect of his commission. Broker
Broker
1. He has no possession of the goods which he sells.
2. He brings together both the parties to a transaction. The sale is made in the name of the principal.
3. He is not liable in respect of such contracts.
4. He does not receive payment of the value of the goods from the customer and cannot give his discharge.
5. He has lien on goods.

Importance of Advertising

DEFINITION “Advertising is an art of providing market information through the various media of communication such as magazines, newspapers, television, radio etc. at the expense of the company for the purpose of increasing or maintaining effective demand and making easy the sale specific goods and services.”

PURPOSE OF ADVERTISING
The purpose of advertising is:
1) to enable the public to know the features and uses of the products and overcome traditions and prejudice that may reduce competition.
2) to make easy and increase the sale of present products, to maintain consumer’s awareness, to bring it equal with advertisement of competing firms and to reduce the amount of personal sales efforts required to receive an order.
3) to introduce a new product model of service in the market.
MEDIA OF ADVERTISING
Media means the source in which the advertisement appears. It is a singular as well as plural term. Various types of advertising media are explained as under:-
A. RADIO
Today radio has become very important and can be utilized for advertising the goods which are sold either within the country or all. Today’s commercial services of radio Pakistan are becoming very popular day by day .but life of this advertisement is very short .
B. MAGAZINES
Magazines can be used for the products which are sold out all over the country .this type of advertisement is not flexible as changes cannot be made in the advertisement copy easily it is becomes the copy of the advertisement is to be submitted to the advertising company 4 to 5 weeks earlier.
C. NEWSPAPERS
These newspapers which are daily or weekly are used for advertising the goods of local businessman . a newspaper has a very short life as it is destroyed usually after a period of 24 hours .
D. MEAN SIGNS
It means advertisement through bulbs . this type of advertisement media is becoming popular day by day in big cities of Pakistan like Karachi ,Lahore and Rawalpindi.
E. ADVERTISING BY POST
Small firms advertise their products through letters ,postcards ,catalogue etc.
F. ADVERTISING BY TELEVISION
This type of advertisement delivered through a television is a combination of spoken words and visual presentation of products and their benefits .
G. DIRECT MAIL
It is widely used and includes postcards ,letters, catalogues, folders, booklets etc. they have variability of coverage .large and small business both can use it. basis of this kind of advertising is mailing list .this list which has the names of the persons to whom the letters are sent is compiled from time to time from many sources . It needs utmost care and up to datedness. This list can be made extremely selective regarding geographical and consumer interest .It is costly because of printing. Postage ,typing and packing.
H. CAR CARDS
They are used in street cars , buses , subways and rail road cars where they may be seen by people on the way to shopping trips etc. They are effective for all i.e national ,regional and local advertising .They are flexible and reached the people to whom the magazines don’t reach.
I. PACKAGES ,LABELS AND INSERTS
Advertising copy on package must be brief and should have pictures and brand name , qualities , companies name etc. Some are bottles and some are board packages.
J. WINDOW DRESSING
Usually big shop decorates there windows of shop so as to attract customers. This is also one of the media of advertising. The window is dressed in such a way that it may attract attention of the buyers.
K. SAMPLING
Some firms distribute there products free of cost so as to advertise its product to secure sales volume in future.
ADVANTAGES OF ADVERTISING
1. It creates demand for a new article by arousing interest of the public.
2. It increase the sales volume of establish articles constantly keeping the selling points afresh in minds of the customer.
3. It educates the general public about new use or uses of a product.
4. It reduces competition.
5. It creates goodwill by continues reminder to the public about the trademarks etc.
6. It increases additional sales by encouraging present customers in using the articles more frequently and in increased quantities.
7. It facilitates the job of the salesman and dealers by introduction the products to the public.
8. It reduces prices as the production volume increases, which in turn reduces the overhead expense.
9. It insures better quality, improving the quality of goods to have better appeals to the customer.
10. It increases the employment because production increases.
DISADVANTAGES OF ADVERTISING
1. It results sometimes in exaggeration ( over-valuation) and misrepresentation. Such advertisement misleads the public and loses the confidence of the public in the enterprises.
2. It expands the market for the articles of luxury and comfort, because the goods which are needed to meet primary needs of life are not usually advertised.
3. It causes economic loss due to rapid changes in style creation of new objects of consumption and changes in style are waste and determinate to human good.
4. Advertising is impersonal and cannot answer the question asked for by the buyers.
5. It results in monopoly through brands.
IS ADVERTISING A WASTE?
It is not a waste at all. It is an aid to business expansion. Advertisement help buyers who usually do not know or are really aware of the existence of the seller. It expands the sellers market by spreading information about the product. Some people say the advertising increase the cost of production which is to be borne by the customer. It is completely wrong. It creates new demands of commodities and the service which lead t a production on large scale and when the production increases the cost of advertising is not waste but brings gain in the business.
DIFFERENCE BETWEEN ADVERTISEMENT AND PUBLICITY
ADVERTISING
1. Some definite message is communicated.
2. It is paid form of publicity.
3. It is non personal.
4. Its sponsor is known.
PUBLICITY
1. It is generally done in form of news, articles, features written in newspaper.
2. No direct payment is involved.
3. It may be personal.
4. Its sponsor is not always known.

Labour Saving Devices

INTRODUCTION There was a time when business used to be small and the total number of employees used to be quite a few. The office appliances were regarded merely as luxury. With the expansion of business, there has been a great development in the use of office appliances and labor saving devices, which have been introduced to save time and manpower. These machines can do the job more speedily, accurately and at lower cost. In fact, they have become a necessity for smooth and efficient working of the office. Labor saving devices can be classified into the following three groups:
A. General Machines
B. Communication Machines
C. Accounting Machines
A. GENERAL MACHINES
1. TYPEWRITER
It is a common machine and is used in each and every office, as time and labor saving devices. Through this machine, many letters and documents can be typed with speed and neatness. It can prepare more copies in no time. As the industry advanced and requirements increased the improvement in typewriting machines have also been made. Noiseless typewriters are used where typists work near executives and other clerks as noise is likely to cause disturbance. Electric power is also used for operating typewriters. Electric machines require less human exercise and can type more copies than the ordinary machines of typewriter. This is more liked by a typist as he gets less tired and maintains his output better than he does by an ordinary machine. Electric typewriters are more expensive and cannot be used in small offices.
2. DICTATING MACHINES
There are a number of dictating machines but they are all based on same principles on which the gramophone works. These machines record the dictation given by the office executive who can be transcribed by the audio typists and thus, the presence of stenographer is not necessary. These machines however, usually consist of three machines the actual dictating machine, the transcriber and the shaver. The first is used by the person for dictating. The second on e is used by the typist an the third machine is used fo9r shaving of the dictated matter. This machine is most useful for secretaries, partners, managers and others who rare subject to frequent interruption. With special attachment, the dictating machine can be connected so as to record telephone, messages and by the use of microphones, it can also be used for recording speeches.
3. DUPLICATORS
When 100 of copies are required the duplicating machines are used. Each class of machine has its advantages and in selecting a machine for use in particular office, these advantages should be be Given consideration. A variety of duplicators are in use nowadays and few of them are given below;
A) SPIRIT DUPLICATOR
These duplicators can reproduce typewriting, hand-writing or drawings in a variety of colors. A master copy is prepared on a sheet or art paper by means of hectograph carbon paper. This is the only type of machine which can reproduce in several colors in one run. According to the quality of paper and carbon paper used, 100 to 250 copies can be made.
B) STENCIL DUPLICATOR
These duplicators can reproduce type writing .the stencil is out either on typewriting or by writing or drawing with a special pen. Up to 4,000 copies can be obtained and stencils can be stored and re –used if carefully handled and protected.
C) OFF SET LITHO DUPLICATOR
These duplicators can re-produce typewriting, hand writing and drawing. As in the case of stencil, different colors can be reproduced on the finished copy. Up to 50,000 copies can be obtained from the machine.
D) TYPESET DUPLICATOR
These machines are in fact, small printing press of letter press type. It is a sloe method and it also requires some skills to do job. Up to 500,000 copies may be printed.
4) ADDRESSING MACHINE
This machine is bit different from the duplicators .these machines are generally used for addressing the envelope to the regular clients or for the preparations of labels. These machines are adaptable enough to take the wide variety of other work in the office .These machine are operated by electric power.
In this machine, addresses are embossed on metal plates or are stenciled on specially prepared fiber material. These plates are placed alphabetically or in any other manner. When the actual addressing work is t be done, these plate are placed and passed through the machine, and the address are printed on the envelopes.
5) CASH HANDLING MACHINE
The work of the cash department can be helped considerably by machines for handling coins. There are machine for sorting out coins of different denominations from a mixed heap of coins and appliances are also available for counting them. There are also machines for giving change quickly. As no mental calculation is necessary, a great saving of time is affected by such a machine where the number of transactions is very large.
6) CASH CHECKING MACHINE
There are number of appliances which may be used to check automatically the receipts of cashiers. They are usually known as cash registers. Some of them also have arrangement for adding up the receipts so that at any time the machine shows the total cash that should be in be the cash drawer attached to the machine. Some are also so constructed as to issue the receipts to customers while keeping the record for the office.
7) FRANKING AND STAMP FIXING MACHINE
Franking machine saves a good deal of time in scaling the letters and in getting ready for the mail. This machine makes an impression on the envelopes showing in red ink the amount of the postage and the place of origin and date of posting. No postal stamps need to be used. The machine have matters attached to them and they are locked and sealed by the postal authorities to frank up the amount after which the machine gets automatically locked. Some of these machines also have an automatic envelope scaling device. Some business houses have the stamps affixing machine which are fed with postage stamps, and there are devices to cut the stamps off, to moisten and affix them and to count them.
TIME RECORDING MACHINE
These machine records the time of arrival and departure of the employees of he office. These type of machine is used in the office where payment are made on the basis of time spent on the job. This machine is like a clock and when the employee enters the office he cuts card in the machine which prints the time. Similarly when he goes out, further he cuts the card in the machine and departure time is printed on the card.
B) COMMUNICATION DEVICES
1) TELEPHONE
The use of telephone is so common and all its importance is so well known that it does not need further explanation. It is maintained by high business houses internally and externally. Internal system enables the executives of same organization to talk to each other on telephone whenever they need so. External systems enables them to talk outside parties. Every city is linked by telephone system so that through trunk call any one may have talk anywhere in the country with the required person.
2. RADIO-TELEPHONY
It is a system which link by telephone mobile vehicles in city or may be in an area. This system is in advance countries. Under this system mobile units such as cars, vans, etc can control each other on radio-telephony through the central station located in the city.
3. PUBLIC ADDRESSING SYSTEMS
In big factories, shops and offices this system is a useful means to give instructions to all of the employees or only those particularly concerned with any special instruction. This system has an advantage of quick communication of message to the concerned persons but it has also the disadvantage of distributing all of the employees while instructions are concerned with any particulars employee.
C. ACCOUNTING MACHINES
1. ADDING MACHINES
After typewriter, adding machine in perhaps the most commonly used machine in office routine working. Adding machine is basis for all further calculations. These machines are of two type: listing and non-listing. These machines have following advantages:
1. Cross-casting is much further faster. Most clerks, unless they are very highly skilled, cannot add horizontally with the same speed as they can add vertically.
2. Selected items can be added from different documents or from scattered positions in one document.
3. Less skill and concentration are required by the clerk.
4. With the aid of adding machines, junior clerks can add with speed and accuracy equal to or exceeding that of a skilled clerk.
2. CALCULATING MACHINES
In a large business there is a lot of calculation work, in order to asses the position. In calculation various forms such as addition, subtraction, multiplication and division are involved. There is likelihood of accounting mistakes, and takes more time in corrections. Keeping in view both the important factors time as well as accuracy nowadays the calculation work is carried on through calculation machines. With the help of calculating machines addition, subtraction, multiplication or division can easily be made with accuracy and without loss of time. Apart form this with the help of said machine the problems of exchange, discount etc. can be solved with great accuracy. It does not require any special training to operate the machine, the mistakes can only occur when the machine in question is not properly handled or when out of order.
3. POSTING MACHINES
Posting means the transfer of amounts from original entries to the appropriate ledger accounts. Accuracy of entries and easy to read are the most important requirements of this function. These machines play an important role in maintaining the accuracy.
4. ELECTRONIC COMPUTERS
The computers operate at the fastest speed which ever is thinkable by human mind, because these machines do not depend on mechanical movements but on electronic pulses with duration of about one millionth of a second. Computers are able to perform the following functions:-
1. Receive a programme of orders representing the routing to be carried out, store this and refer to it as may be required.
2. Take in original information through one or more input channels and store it for reference as required by the programme.
3. Perform any arithmetical calculation as and when required by the programme.
4. Store the result of any calculation for further reference and accumulate totals as required by the programme.
5. Select any information from the store, arrange it in any required sequence and discharge it through one or more output channels to be printed punched into cards or paper tape, or recorded on.
Apart from computer speed, the principal characteristic of electronic computers is their flexibility as would appear from the following:-
1. They can be made to carry out any electrical operation only by feeding in the appropriate orders.
2. They can proceed from one kind of operation to another automatically.
3. They can automatically select alternative courses of action according to the nature of the date received or the results of previous operation.

Inflow and Outflow of Paper

Introduction Correspondence is of great importance in modern times. Almost each business transaction involves exchange of papers of different kinds and other material, letters orders samples, cheques drafts, bills , government instruction through circulars and official letters invoices and so on. It is therefore imperative that the correspondence department must be vigilant and efficient in disposal off the letters and maintaining the accurate and complete records of all the papers concerning the commercial transactions.
The correspondence in commercials office had been divided into two categories.
1. Inflow or inward correspondence.
2. Outflow or outward correspondence. Inflow and outflow of papers are guided by the individual requirements and environment or business location and the type of business. They are discussed as below.
INFLOW OF PAPER
1. OPENING OF LETTER
This letters are usually opened in the presence of the general manger of some responsible officer who by quick glance over each letter assertions whether it deals with matters of routine or required any special notice to be taken. He is particularly watchful of letters which contain a discordant note or complain. Care has to be taken to see that the contents of the letters are properly emptied before the outside covers are thrown away. If the letters is addressed by human name or is marked privateer it is not opened but is handed over to the person concerned. Remittances received are sent to the cashier for entry in cash book. All the cheques received are crossed and endorsed before being sent to the bank for collection and credit to account.
2. STAMPING AND SORTING THE LETTER
The letters are then sorted out and marked with the date and time of their receipt noted on each of them; this is done with a view to prevent laziness and irresponsibility on the part of the staff in dealing with the letters. They are then sorted out bin batched according to their nature and each is handed over the person entrusted with the dealing letters of that type. Sometimes each letters is impressed with an identification mark indicating the department which it belongs to. The officers are thus enabled to ensue that prompt action is taken on all the letters by each department and filing is up to date and correct. The letters may also then be numbered for quick reference in the office n, if a numerical system of reference is maintained.
3. ENTRY IN LETTER RECEIVED BOOKS
The letters received are briefly recorded in a let ter received book. It records a date of receipt the name of the sender, and the subject of the letter , the departments to which they have been handed over , the manner of their disposal and the reference through which they have been disposed off.
4. PREPARATION OF REPLIES
The concern department then deals with the letters take any action necessary upon them and draft replies which are forward to officers, for correction and approval, along with the letter to which they are replies. When the draft is approved the officer sends it to the typist and also initials in the last column of the letters received book to indicate that the letter has been dealt with. Officers my also dictate letter to the typist who may take them down in shorthand and then final letter to be dispatched.
OUTFLOW OF PAPER
It means all those letters invoices, documents etc which are being sent from the office. The outflow paper includes the replies of the letters received by the office as well as the original correspondence done by the office. The outflow correspondence passes through the following stages.
1. REPLY OF LETTER RECEIVED
The outgoing letters must be prepared with promptness and accuracy and they must be politely worded. They have been described as the silent ambassadors of the business concerns and as such they must have an up to date finish to capture the imagination of the reader. A typewritten letter makes a better impression on the addresses than a hand written letter, since the former is better to look and can be read more easily.
2. THE COPYING OF LETTERS
It is very essential to have a copy of the letter sent on record for future reference. In case of any dispute this copy would be quite helpful in settling the same. The copy can be obtained by a carbon, press copying machine and in many other ways.
3. THE DUPLICATING OF LETTERS
The circular letters are to be sent to a large number of firms. In such cases hundreds of copies of the same letter are needed. When these copies are prepared by the help of a machine the same is known as duplicating machines in use which help in the preparation of these copies.
4. FILING OF LETTERS
The letters received and the replies of the letters sent or a copy of the original letter is to be then filed properly. The files are to be arranged in a systematic manner so that the previous correspondence when required may be found out quickly and easily.
5. DISPATCH OF LETTERS
The work of sending the letters away from the office is given over to a dispatch clerk. In sending away the letters, he must be very prompt and must also look to the postal requirements in connection with letters which are to be sent through the post office. Neat folding of letters, seeing that the letters are properly addressed and accompanied by the relative enclosures, and making sure that all letters are properly signed by the officers concerned, are matters which the dispatch clerk must look to. He is also required to send away all the telegrams from the office.
6. ENTRY IN A POSTAGE BOOK
A brief record of all the outflow of papers is kept in a postage book which also serves the purpose of a letter outward book. The dispatch clerk is usually given an advance which he uses to buy postage stamps of various denominations. He uses the postage book to maintain an account of the money advanced to him the postage stamps used by him in dispatching letters.
7. USE OF PEON BOOK
Some letters are to be sent to the local businessman. These letters are not sent through post but through a peon duty entered in a peon book. The dispatch clerk before sending letters will sort out all those letters separately which are to be send to the local businessman. He will then make entries of all such letters in the peon book and hand over the same to the peon who will personally deliver these letters to the addresses concerned and obtain their signatures to the peon book maintains a complete record of all the letters sent locally.

Indexing

Introduction Index is simply a list arranged alphabetically showing the required reference. An index to file may be set out in the form of a bound or loose leaf book whereas a separate page or group of pages is allotted to every letter of the alphabet, the field no. being entered against each name. Thus indexing is a system through which the location of the records may be found easily. It may be placed near to the records or may be kept apart from the records or the records themselves may be so arranged as to be self indexing eg . 1 index of a book (apart from the records) and 2. Telephone directory (self- indexing).
Indexing Equipment
VERTICAL CARD INDEX
There are number of card in it and each card deals with one item of the index. On the top edge of the card, reference heading is written. On the remaining part of the card, the location of the item is written, where the self- indexing system is in use, the remaining part of the card contains the record itself. These cards are arranged vertically in a drawer or tray in such a way that they can be used very conveniently for reference to make the function or finding the reference more easily, tabbed guide cards may be inserted at required intervals.
STRIP INDEX
It is consisted of frame into which strips of shout paper or card can be fitted in any required order and subsequently withdrawn and rearranged whenever changes are to be made. Each strip is devoted on one item of not more than two or three lines. Frames can be made up in various forms to suit different purposes; they can be fixed to the wall made up in book form or where a large number is necessary arranged on a rotary stand which is easily turned to give reference to any desired portion of the index.
VISIBLE CARD INDEX
This is an index which offers the ready visibility of the strip index and also the additional record space provided by the vertical card index. It consists of series of cards, arranged so as to overlap leaving a strip of each card exposed. This exposed edge is used for the reference heading, the remaining part of the card is readily available for record purpose. The trays in which these cards are kept are fitted with devices which enable the cards to be held in position and yet permit individual cards to be written upon withdrawn replaced or rearranged as may bar required. The trays of cards are usually kept in cabinet but as in the case of the strip index frames can be arranged in book form when they make an easily portable record.
VISIBLE BOOKS
Overlapping visible index records can also be kept in book form. A viable book consist of a loose leaf binder in which paper pages are arranged in a similar formation the cards in visible card index.
WHEEL INDEX
This is a form of vertical card index in which the cards are arranged about the circumference of wheel set in a cabinet or desk. Thousand of such cards can be attached to one wheel and as many as six wheels set up within the reach of one clerk seated at his desk.
STAGGED CARD INDEX
This is an arrangement of the vertical card index which has been developed to give easier reference to headings. Cards are arranged in groups and overlapped so that the reference headings on the cutaway concern of a whole group can be seen at once. This system of indexing is sometimes applied to ledger cards to facilitate the extraction of accounts for posting.
SLOTTE CARDS
The cards are punched with holes along one or more edge, each hole represents a classification or figure in code number. Written information is recorded by hand or typewriting in the centre of the card. The information in term of which it is required to deselected or sort can be recorded along the edge of card by cutting the appropriate holes into slots. Once they have been prepared the card may be filed in trays in any order. To select the card for a particular classification batch of several hundred cards is removed from the tray and a long needle is passed through the holes representing the class required. When the needle is lifted the cards which have been slotted at these holes fall out so separate themselves from the remainder.

Filing

Introduction A system of arranging o r preserving documents received and copies of letters issued in a proper way is known as filing system. Such a preservation of all the letters and documents enables the businessman to have ready reference as and when needed. Business concerned, big or small, carry correspondence wit a number of customers or clients. Such correspondence forms a permanents record of what has happened between the businessman and the customer. Reference of the previous correspondence is to be made for carrying any business activity and also forming new policies to make a business a successful one. There fore a copy of incoming and outgoing letters is to be preserved and arranged in a systematic way so that they may be easily available with out any lose of time. This whole process is known as Filling.
Essentials of A Good Filing System
For an efficient filling system it is necessary to have the following qualities:
1. Simplicity
The filling system should be quite easy and simple so that every one in the office and use it with out any technical knowledge. It would be so simple that even an inexperienced employee can use it.
2.Safety
The preservation of the letters is the foremost object of filling system. The letter should be kept in a lock or other device to prevent unauthorized persons to approach the correspondence
3. Elasticity
With the development of business some times it becomes necessary to alter the filling system. Therefore it is essential that filling system should be elastic
4.Minimum space
The space occupied by a filling system should be as small as possible
5.Cheapness and Economy
To avoid any financial pressure the system of filling should be cheap and economical in proportion to the size of business.
6.Rapidity of Reference
Filling of letters should be easy in order to trace the required letter with out any loss of time
7.Suitability
Again the system of filling must suit the requirements of the business in connection with which it is used.The requirements of each business house vary according to the nature and extent of its business and the actual system of filling best suited to it varies accordingly.
8.Rapidity of Filling
The system should be such that the papers could be filled rapidly with out any loss o time
9.Accessibility
The records should be kept in a place and in a manner easily accessible to all. otherwise there is bound to be a waste of time in making references.
Various Systems of Filling Letters
1. Wire Filling
2. Pigeon Hole Filling System
3. Flat or Horizontal Filling System
4. Vertical or Upright Filling System
1. Wire Filling
In this system of filling a hard and thick steel wire is used. The wire is fixed on a small round wooden base and has a sharp point. in this thick wire all the letters are pushed and the wire is hung. it is usually used in small business houses.
2.Pigeon Hole Filling System
This system requires a wooden almirah containing 24 compartments like pigeon holes. There is usually a shutter in the front of the almirah to protect the letters. each compartment is labeled with one letter of alphabet. the last compartment bears the label of X,Y and Z. this is very old system of filling letters.
3. Flat or Horizontal Filling System
In this system in an iron almirah, the card board files are flatly, or horizontally kept in a number of holes duly alpha bated . this is a very popular and scientific system of filling letters. this system is a great advancement over pigeon hole system. It is known as flat filling system because of the fact that the letters filled under it are kept in a flat position files are specially designed for use in this system and their different makes are available in the market. The available files can be grouped into the following classes
i.The Cardboard File
It is a primitive form of filling. under this system either the cardboard covers or drawers of specially made cabinets are used, as files .the letters are put upon the cardboard and fastened with the help of a clip.
ii.The Box File
This is also not in much use. Here wooden boxes are used as files .the letters are kept flat inside the box in an alphabetic or numerical order. It is used in very small business houses .
iii.The Arch Files
This is the most popular form of flat files. A businessman generally keeps a number of flat files according to the volume of correspondence and the system and the system of classification he adopts. If the volume is small , one file may be sufficient ,but if it is large one file may be used for containing the correspondence of a single individual and there will be as many files as correspondents . the letters are arranged date wise. these files may be kept just like books or hung on the walls, or they may be kept in shape of drawers fitted in a cabinet.
iv.The Shannon Files
The Shannon file is the best known system of flat filling .this form consists of a filling cabinet containing many compartments in accordance with the requirements of the business .each drawers contains index sheets below which the letters are filled.
SPECIAL FEATURES OF A HORIZONTAL FILLING SYSTEM
Whatever the make of the flat files, they possess the following special features which should be carefully noted
1. The files keep the letters in a flat position and contain a device for fastening the letter s
2. Each file consist of alphabetical index cards which are made of loose stiff sheets .
3. The letter are placed date wise, with the latest letter date on the top.
4 All the letters contained in the file are carefully fattened together.
5 The file may be hang on the wall , or kept in the shape of the drawer in a cabinet or made to stand like a book.
6 When a file is full , the letter are removed to be transferred in binding cases.
ADVANTAGES OF HORIZONTAL FILLING SYSTEM
1 The letter filed cannot get out of order or cannot be misplaced or lost as they are fixed on the arches.
2 If at any time , the letter of a particular correspondent is to be removed , it can be done without disturbing the order of other letters.
3 A file drawer may be dropped accidently, but there is no fear of mixing the letters.
DISADVANTAGES OF A HORIZONTAL FILLING SYSTEM
1 Since the letters are fastened together , inconvenience is felt filling or taking out a letter.
2 The relative slowness is getting access to the letters as they have to be re-shuffled and turned forward and backward to find the required letter is inconvenient.
3 It is absolutely necessary to punch the papers , which makes the system time consuming.
4 Trouble is involved in re –organizing the cabinet to maintain an increasing volume of correspondence.
4. VERTICAL OR UPRIGHT FILLING SYSTEM
A still further advancement the art of filling letters is the vertical filling system . It is the most leading method of filling suited to a large concern having innumerable correspondence . The system is called vertical because the letters are kept in a vertical position . It requires a cabinet with deep drawers , folders and guide cards . In this system the letters remain unfastened.
WORKING OF THE VERTICAL SYSTEM
The following are the things which are needed for the proper maintenance of the vertical filling system.
1.FILLING CABINET
This cabinet contains drawers which are made of wood or steel . The requirement of drawer depends upon the volume of correspondence and nature of the business. Cabinets with locks also provide safety.
2. FOLDER
A folder is made of strong paper and is folded in the middle so that the letters can be easily arranged in it. They are usually placed date wise. On the projection edge of the folder is written the correspondent’s name, subject etc.
3. GUIDE CARDS
Small groups are made in each drawer by sheets having in a tab. These tabs are marked alphabetically, geographically or numerically. The folder are kept behind them according to the mark on the tab.
4. ARRANGEMENT OF THE FOLDERS IN THE DRAWERS
The folders containing the correspondence are arranged in the drawers either alphabetically, geographically or numerically. The most common is the numerical arrangement , but sometimes alphabetical arrangement is also preferred thus they may be arranged in the following order:-
a. NUMERICAL ARRANGEMENT
Each folder is giving a certain number which is put down on the raised portion of its back. If a folder holds the letter of the single correspondents then all the papers will also carry the same number as that of the folder. If a folder contains documents related to more than one correspondents then the decimal system will be applied e.g if the folder carries a no. 53 then the correspondents will be numbered as 53-1, 53-2 etc. folders are bearing numbers like 10, 20, 50 and so on inserted in the proper places so that they indicate the position of the various folder of different numbers.
b. ALPHABETICAL ARRANGEMENT
In this folder contains the name of the correspondents on the raised back portion and not the number. Each guide card indicate the initial letters of the correspondents e.g. the letters to and from Mubarak Ali, Mahmud Ahmed etc will be placed together and their position will be indicate by the guide card bearing the letter ‘M’. The folders are arranged one after the another according to the first vowel occurring in the correspondents name. t he advantage of this system is that it does not need a separate index but it posses the disadvantage of causing conclusion between the customers bearing same names.
c. GEOGRAPHICAL ARRANGEMENT
This is merely a variation of either the alphabetical or numerical systems adopted geographically to meet the requirements of a particular business. One may allot each drawer for correspondence in each province, and guide cards may be put indicating each town. Traders having flourishing foreign trade and big merchants usually adopt this arrangements.
d. SUBJECT ARRANGEMENT
Where the subjects are of more importance than the name of correspondents it is useful to file all papers behind alphabetically arranged subjects guides using tabbed folders for sub- divisions of the subject or individual correspondents.
5. ABSENT OR OUT GUIDES
These are cards with ruled columns. When a folder is removed for reference the filing clerk puts an out guide in its place and enters in the ruled columns the particulars of the folder removed.
ADVANTAGES OF THE VERTICAL FILING SYSTEM
1. SPEED OF LOCATION
Speed of location is possible as the system combines admirably with the visible system of indexing. They can be traced out quickly without must effort.
2. CONVENIENCE AND CHEAPNESS
The vertical filing system has the advantages of handling a large volume of correspondence more conveniently and cheaply.
3. EASY REMOVAL OF DOCUMENTS
Access to the folders and to the documents is simple and that is why the removal of documents is easy.
4. FLEXIBILITY
This system is more adaptable in increasing the correspondence.
5. TIME SAVER
The papers need not be punched under this system, therefore it is a time in this respect.
6. NO FEAR OF MIXING
Since the correspondence of one individual is quite separate from others, therefore there is no fear of mixing up of the correspondence.
DISADVANTAGES OF VERTICAL FILING SYSTEM
1. DANGER OF LOSING
Since the letter are left lose in the vertical system therefore, there is danger of losing them.
2. INSECURITY
This system has no security and in case a letter is dropped, it upsets the whole order.
3. LARGE SPACE
This system requires a large space as compared to the flat files.

Finance

Introduction It is necessary for a businessman to plan financial aspect in the early stage of starting any new business and it should not be left to chance. From the starting and to any later expansion in the firm’s business, finance plays a very important role in purchasing aspects and to meet the expenses if necessary for carrying on the business affairs. The financial needs of business are assessed by the size and the nature of work. For a large business, financial needs are high as compared to a small business. For example, the joint stock companies require large amount of funds whereas sole proprietorship and the partnership business require small amount of funds. Finance can be obtained through two major resources owners’ capital and borrowed money. The requirements of funds depend upon utilization that is how much funds will be needed for circulating and fixed capital. The capital credit obtained from any financial institution is known as borrowed money. Funds which are required to purchase any asset and to meet the expenses from the initial stages to the extension of any business is known as finance.
Kinds of Finance
Long Term Finance
Long term finance is that part of capital which is required by a business enterprise to finance its blocked or fixed assets such as land buildings, machinery and other appliances of permanent nature. In the established undertakings, it is required for extending the scale production and for the renewal and replacement of the fixed assets, or for taking the advantages of new discoveries. Thus, it is needed for considerable period of time, usually for 10 or more years and hence it involves a high cost due to higher amount of interest.
SOURCES OF LONG TERM FINANCE:
The following are the various sources of obtaining long term finance.
1. SHARES
The initial capital is obtained by a new concern by floating shares. Shares represent equal portion into which the capital of a company is divided. Shares may be issued directly by the company or through the under writers. Selling of shares is the most important method of securing fixed capital and the contributors are the general public.
2. BONDS AND DEBENTURES
To raise sufficient capital and to draw the attraction of those people who don’t find interest in investment, debentures are issued b y a company. Debenture is a promissory note for the repayment of money borrowed and the payment of interest at fixed rates. The contributor is again the general public.
3. GOVERNMENT LOANS
The state aid in the form of guarantee of dividend of new companies, taking of securities, plays a definite role in the financing of industries. In our country, industrial-finance Corporation was established to give long term loans.
4. FINANCING INSTITUTIONS
In Pakistan there are the following institutions from which different industries can take their finance for long periods:
A- PICIC
This corporation aims at stimulating promotion of new industries, the expansion of the existing ones and the furnishing of the technical know-how as to increase production.
B- IDBP
This bank was setup to provide credit and other facilities for the development of industries. Other institutions are NDFC, BEL, investment trusts, insurance companies and commercial banks.
5. PUBLIC DEPOSITS
An enterprise can raise finance by the acceptance of deposits from the public directly for fixed terms and at fixed rate of interest. This method is however, dangerous and has declined in importance in recent years.
6. PLOUGHING BANK OF EARNINGS
This is very easy method of financing and is available to only Established enterprises.re-investment of a part of the profits is an ideal means of financing, expansion and improvements.
Short Term Finance
A common problem of every business is financing day –to –day operations. Normally business finances these items out of the receipts from sales, but some times the firms financing is needed. It is required for pour hasting raw materials, additional inventory etc. for meeting purposes’ .it is required for short period ,generally foe one year .it is needs because of the fact that the stock is to kept ready before it is actually consumed.
Sources of Short Term Finance
The main sources of obtaining short–term loans are as following:
1. Commercial Bank
Finances are acquired from banks by means of loans, discounts overdrafts etc. they provide short term finance in the shape of discounting bills, granting loans and accepting bills on behalf of their customers.
2. Commercial Credit House
These institutions provide short term finance against mortgage of property or promissory notes.
3.Proprietor‘s Personals Funds
This is an important source of financing a small business. The proprietors themselves supply the capital of the business from their own pockets. But in large scale undertakings, this source is insufficient.
4. Borrowings from Friends and Relatives
Sometimes business is also finance by taking loans from friends and relatives. Finance from this source is very limited and uncertain.
5. Public Deposits
Some units accept deposits from the public from short period on attractive rates of interest and utilize the funds for their currents financial requirements.
6. Indigenous Bankers
There are large number of money lenders i.e. Mahajan, Sahukar, Shroff in the country who provide considerable sums for the business, though at a high rate of interest.
7. Land Mortgagment
The financial institutions give loans on short–terms to he business man or industrialists on the security of land and bearable.
8. Foreign Exchange Banks
These banks also provide short term funds. They mainly provide finance to the foreign business undertaking of their nationality.
9. Unsecured Loans
This type of financing includes:
A) Promissory Notes
They are the legal instruments used in advancing banks loans. It is the major source of the short–term finance.
B) Commercial Drafts
A draft is an instruments made by one person ordering the second person to pay a sun of money to a specified individual on sight or at a future date. Secured loans: There are times when short term financing may be accompanied by collaterals, which gives the lender the right to seize certain property if the borrower does not replay the loan.
10. Secured Loans
There are times when short term financing may be accompanied by collaterals, which gives the lender the right to seize certain property if the borrower does not repay the load.

Retail Trade

INTRODUCTION It fulfills the requirements of the final consumer by placing the goods at his disposal for final consumption. it is the link between the wholesaler and final consumers. The retailers provide an opportunity of choices to final consumers amongst the variety of product kept by the retailer. He can also buy the goods in small quantities nearest to his door in accordance with his requirements
FUNCTION OF RETAILERS
1. the retailers supply goods at the very door of consumers. The consumer need not to go far to purchase the good because retailers are situated at very little distance. He may bring the goods with himself or he may leave them with the retailers to be delivered at his place as soon as possible.
2. the greatest advantage of retailer is the stored goods and sell them in small quantities when the consumer requires. He thus relieves the consumers from the necessity of storing goods which may of them cannot do for the lack of resources.
3. he tries to study the taste of the consumers and keeps the goods likely be in demand. He again keep wholesale merchants in touch with changing fashion and tastes and thus enables those goods to be produced which are really in demand.
4. he keeps the large variety of goods manufactured by different manufacturer with a view to enable his consumer good choice and selection.
5. if the customer is dissatisfied by the good the retailers quite willingly makes good the complain.
6. he adopts diverse methods for reaching the customers. His beautiful display and scientific advertisement are very educative.
SMALL SCALE RETAILING
1. HOUSE TO HOUSE RETAILERS
They are those who wander house to house selling their goods. Hawker and peddlers go into street, and different parts of the city in an effect to sell their goods. These person requires little capital and need no shop.
2. PART-TIME RETAILERS
They are not regular retailers. They only sell goods from door to door in their spare time. they sometimes deal only in the seasonal goods and as soon as the season is over they stop selling the goods.
3. ORDINARY SHOPKEEPERS
A large volume of retail trade is conducted by ordinary shopkeepers. They may be divided into small and big according to their scale of operations. Small shopkeepers require little capital and are established in lanes , unimportant streets. Big shopkeepers commands considerable capital and make shop in the most frequent areas in the heart of the city. Shop may be general or specialized. A general shop is the one where numerous varieties of goods of every day use are sold. A specialized shop on the other hand, is specialized in the sale of certain articles only for example fountain pens, jewelers shop.
LARGE SCALE RETAILING
Now days, as the production of goods is done on large scale , the flow of good in the market is huge and varied. The distribution is also to be done on large scale. The flow of good in market is huge and varied. The distribution is also on large scale so as to reap the higher profits avoiding competition from small organization. When retailers purchase goods on large scale they save much as they can get many advantages from the wholesalers and manufacturers. Beside they can accumulate variety of commodities and thus attract the buyers. The large scale retailers are discussed as follows;
1. DEPARTMENTAL STORES
Such stores requires investment of huge capital and involves considerable risk. The special features of this store is that they try to sell almost every considerable commodity of commerce, almost from an apple to an airplane. The store is divided into number of departments , suitated into the same roof, each department specializing in commodities of the nature. That is why it is known as the departmental store. it is thus an combination of large number of specialized shops, under unitary control. An attempt is thus made to supply to the customer all that he requires from this very place so that he may not require to visit any other shop.
ADVANTAGES
The advantages of running a departmental stores are as follow;
1. The central side of departmental store gives it more advantages over a small scale retail store.
2. It provides efficient service to the customers like saving of time, car parking, telephone etc.
3. Such stores often create a demand for a commodity. A customer is sometimes induced to purchase other things also when finds them nicely placed in various section of store.
4. The price in departmental stores are less than in retailers shops because of the economy of large scale buying.
5. One department advertises for the other department.
DISADVANTAGES
1. The elaborated service provided by the store tends to increase overhead expenses.
2. The location of such stores ia sway from population residential areas. It is difficult for the large scale retailers enterprises ie departmental store to take away the share of profit of the small retailers because they are located in central parts of the city and the people living in the suburbs and the other parts may not be served.
2. MULTIPLE SHOP/ CHAIN STORE
Sometimes the manufacturer himself wants to eliminate all the intermediateries and reach consumers directly. This he does by opening multiple shops. Shops are opened in various parts of big cities and in all important cities in province or country. These shops are mean to sell only those goods in which the producer or manufacturer is interested. The range of commodities kept and sold is thus very narrow. The advantages accruing as a result of specialization are those of economy in buying together with speedy and larger turn over at lower price eg BATA shoe manufacturing company whose multiple shops are spread all over the big cities of Pakistan.
ADVANTAGES
The multiple shop system enjoys all the advantages which normally accrue to large scale enterprise namely , economies of buying in larger quantities, centralized and highly sufficient control and experts advertising of firm’s special lines. In addition to these there are the following advantages particular to multiple shops;
1. Shortages of stock at any branch may be made up by transfer from one branch to another.
2. A speedy turnover of stock is attain and be accentuated by studying sales figures to discover which of the goods are slow moving and then concentrating advertising effort on these items only.
3. As a result of speedy turnover, multiple shops are able to run their business at slightly lower cost than the other types.
4. As sales are made on cash basis , there are no bad debts and no expense of maintaining a large clerical staff.
5. The multiple stop benefits also from the fact that numerous branches can cater easily and efficiently for customers at comparatively short distance from their residence. The total number of its customers is larger than that of a single store or departmental store.
6. Each branch in itself is an advertisement for other branches and so long as the goods sold are of good quality in relation to the price, there is no limit to the number of branches that an efficient concern my control
LIMITATION
Multiple shops suffer two limitation. Firstly they have to meet heavy expenses. Much of the difference between their buying and selling prices is absorbed by high rents of big promises in busy streets, with rules proportionately higher and by provision for writing off the initial cost of new shop fronts and new equipment and by the maintenance of poorly paying branches in places where the trade is not enough. Secondly many managers and staff do not, without constant supervision, take the same interest in their duties as the proprietors would be.
3. MAIL ORDER BUSINESS
In mail order business goods are sold and delivered through the post and not across the counter. From buyers point of view, it may be describe as shopping by post. Payment is made by several methods, varying with the type of stores and customers standing. If the customer has an account, the goods are charged against it. If he is unknown the goods are supplied either on “ cash with order” basis or the goods are sent through the post office on cash on delivery basis. In later case the VPP( value payable post) system is utilized.
ADVANTAGES
1. Expenses and expensive shop, fronts etc. Are eliminated.
2. The sales in direct touch with the buyers and therefore it is generally to know the demands of customers more easily.
3. Advertising may be more effectively carried out since the results may be checked up with fair accuracy.
4. The actual selling is reduced to routine the work being performed by low grade workers and hence cheaper labour.
The sales appeal may be designed by experts and is not dependent upon the capacity of individual salesman. The customer buys sitting at his home and therefore saves himself from botherations of different types.
DISADVANTAGES
1. The small retailer is still able to compete with mail order house in most lines and ho has “convincing appeal” in his varied shook.
2. All retail shops have the advantage of enabling customer to see and examine goods but mail order business may not provide the facility to their customer’s ordinal.
3. Heavy expenses on advertising increase the cost to the customer as compared with normal retailers.
4. Publicity through advertisement also include quality of goods; the wordings of advertisement often create confusion and also sometimes mislead the customer.
5. The sales appeal is stereotyped and may not be easily altered.
6. It is not easy to find causes of failure to affect sales nor is it easy to get the orders.