CBSE Class 12 Accountancy Sure Shot Questions Worksheet Set 01

1 MARK QUESTIONS (To be answered in one word or one sentence)

COMPANY ACCOUNTS – REDEMPTION OF DEBENTURES

Question. Out of the following in which situation companies do not require creation of Debenture Redemption Reserve
(a) When debentures are issued with a maturity period of 18 months or less.
(b) When infrastructure companies issue debentures.
(c) When financial companies issue debentures.
(d) conversion of debentures into shares
Answer : C

Question. A Ltd. had ₹10,00,000 9% debentures due for redemption on 1.10.12 at a premium of 5%. The company had a Debenture Redemption Reserve of ₹1,64,000. How much Debenture Redemption Reserve needs to be created?
(a) ₹ 86,000
(b) ₹ 96,000
(c) ₹ 54,000
(d) ₹ 76,000
Answer : A

Question. Debentures can be redeemed out of
(a) Capital
(b) Surplus Funds
(c) Profits
(d) All of the above
Answer : D

Question. Where is Debenture Redemption Reserve transferred once all debentures are redeemed?
(a) Capital Reserve
(b) General Reserve
(c) Securities Premium Reserve
(d) P&L A/c
Answer : B

Question. P Ltd. redeemed its 360 9% Debentures of ₹100 each which were issued at a premium of 5% by Converting them into equity shares of ₹10 each issued at a discount of 10%. How many shares will be issued for conversion?
(a) 4,200
(b) 4,500
(c) 4,800
(d) 5,000
Answer : A

EXPECTED (SURE SHORT) QUESTIONS WEIGHTAGE-WISE

Unit-1st Nature and Significance of Management 

Question. In order to be successful an organization must change its goals according to the needs to the environment. Which characteristic of management is highlighted in the statement?
Answer: It is a dynamic function.

Question. Managerial activities are performed in all types of organizations in all departments at all levels. Which management character is highlighted here?
Answer: it is all pervasive

Question. Your grandfather has retired where he is responsible for implementing the plans developed by the top management at which level of management was he working? State one more function of this level of management.
Answer: Middle level management (Write any one function of this level).

Question. Your grandfather has retired as a Director of manufacturing company. At which level of management was he working?
Answer: Top level of management

Question. The following is not an objective of management
(a) Earning profits
(b) growth of the organization
(c) Providing employment
(d) policy making
Answer: (d) policy making

Question. There are different Business Objectives and Economic Objectives are one among them. Explain these economic objectives.
Answer: Organizational Objectives: - These are related with the expectations of business and businessperson inside the business. These are as follows
1. Survival: - Means continuance of business in long term.
2. Profit: - Means total of incomes should be more than, total of expenses.
3. Growth: - Means increase of branches-sales-no. Of customers

Question. ―Management is multidimensional‖. Discuss.
Answer: Management is multidimensional because:
Management of people
Management of work
Management of operations.

Question. State any three functions of Top level management.
Answer: Functions: - (1) Determining organizational objective-policies (2) assembling Resources, approving budgets, controlling overall performance and (3) Appointment and guidance of middle level managers.

Question. ―Success of an organization largely depends upon its management‖ Explain any five reasons to justify the statement.
Answer: importance of management are:

Unit-2 – Principles of Management 

IMPORTANT QUESTIONS

Question. ―The Principles of Management are different from those used in pure Science‖. Write anyone difference.
Answer: management principles are very flexible whereas pure science principles are rigid.

Question. Why it is said that the management principles are universal?
Answer: because they can be applied to all types of organizations irrespective to their size and nature.

Question. Name the foremen who arranges all the resources input and setup to start the work smoothly?
Answer: Gang boss.

Question. What is meant by principles of management?
Answer: these are the statements of fundamental truths which act as guidelines for taking managerial actions and effect relationship.

Question. Give the meaning of mental revolution as suggested by Taylor.
Answer: change in mental attitudes towards each other

Question. Distinguish between Time study And Fatigue studies
Answer: Difference:-
Time study
This study is done by stop watch, for finding out:-
(i) Standard time required for a specific work.
(ii) Number of required workers to perform a job and estimated labor cost.
(iii) Efficient and inefficient workers.
Standard time is set by taking average of time taken for a same work, by various workers.

Fatigue study
This study is done, for finding out:-
(i) Number/frequency of rest intervals.
(ii) Duration of rest intervals
(iii) Workers feel fatigue/tiredness, by continue working. This tiredness decreases their efficiency. For regaining the energy, it is necessary to give then sufficient rest intervals.

Question. Explain any two techniques of Taylor‘s Scientific Management.
Answer: Techniques of Taylor‘s:
1. Functional foremanship/specialization :-
Division of factory in two departments – (a) Planning department, and (b) Production department. In each department 4 specialist foremen should be appointed for supervision and guiding each and every worker.

• Planning Department/In charge = He will be overall supervisor of all the work before production means planning.
• Production Department/In charge = He will be overall supervisor of all the work during production.

2. Differential wages rate system :-
In this system wages are paid at different rates to efficient and inefficient workers.

• Efficient worker = Who produces standard quantity of units in fixed duration.
• Inefficient worker = Who does not produce standard quantity of units in fixed duration.

Example:
Standard output per day = 20 Units per worker.
Per unit wages rate = Rs.5 (for standard or more output) and Rs.4 (for less output then standard)

• Mr. A produced 20 units: A's wages = 20 Units x Rs.5 = Rs. 100
• Mr. B produced 18 units: B's wages = 18 Units x Rs.4 = Rs. 72
• Difference in output = 20 – 18 = 02 Units but Difference in wages = Rs. 100 – Rs. 72 = Rs.28

This system will motivate inefficient worker for getting efficiency and motivate efficient worker for maintaining efficiency.

Question. Explain the following principles of Fayol with example. (a) Unity of Command (b) Unity of Direction(c) scalar chain (d) Espirit De corps
Answer: Fayol principles:

Unit/Chapter – 3 - Business Environment 

Question. Govt. of India is seriously thinking to allow oil marketing public sector undertaking to fix their own price for petrol and diesel. Which economic reform is the reason of this change in government‘s policy?
Answer: Liberalization

Question. Just after declaration of Lok Sabha Elections 2009 results, the Bombay stock exchange‘s price index (Sensex) rose by 2100 points in a day. Identify the environmental factor which led to this rise.
Answer: Political Environment

Question. State any two impacts of change of government policy on business and industry.
Answer: (i) Increasing competition. (ii) Rapidly Changing Technological Environment.

Question. ―The understanding of business environment helps the managers to identify ‗Threats‘.‖ What is meant by ‗threats‘ here?
Answer: Threats refer to the external environment trends and changes that will hinder a firm‘s performance

Question. ―Business environment includes both ‗specific and general forces.‘ List any four specific forces.
Answer: Suppliers, investors, customers and competitors

Question. Explain the impact of changes in economic policy on the business.
Answer:
i) increase competition
ii) More demanding customers
iii) Rapidly changing technological environment
iv) Necessity for change

Question. Explain the importance of business environment.
Answer:
(a) Identification of Opportunities (positive changes) and first mover advantage:-
By studying business environment, a business can know expected positive changes in its favor, in advance and can take first advantage then other competitors. Ex. TATA NANO Car. First of all.

(b) Identification of threats and warning signals:-
By studying business environment, a business can know expected negative changes in its adverse, in advance and can make arrangement to remove the negative effect. Ex. Bajaj started producing bikes with scooters.

(c) Helpful in tapping (assembling) resources:-
By studying business environment, changes in demand of output can be known in advance. For production of changed output, required inputs may be arranged in advance.

(d) Helpful in coping (adjustment) with rapid changes:-
For survival with being fittest, two things are possible by study of business environment:-
---Timely estimation of expected positive and negative changes.
---Ready for adjustment for future changes, in advance.

Question. Identify the type of dimension of environment to which the following are Related:-
i) Banks reducing interest rates on housing loans.
ii) An increasing number of working women.
iii) Booking of air tickets through internet.
iv) Alcohol beverages are prohibited to be advertised on ‗Door Darshan‘.
v) The project of Nano car reestablished in Gujarat is indicated by which factor of environment
Answer:
(i) Economic Environment,
(ii) Social Environment,
(iii) Technological Environment,
(iv) Legal Environment,
(v) Political Environment

Chapter/Unit – 4th Planning 

Question. Define planning.
Answer: Planning refers to thinking in advance what to do, how to do, when to do. And whom to do it.

Question. Define strategy.
Answer: A strategy is a comprehensive plan to achieve the organizational objectives.

Question. Write one difference between Policies & Procedure.
Answer: Policy are organization own way of tackling the problem whereas procedure are step by step way of doing a job

Question. ―No Smoking in the work shop‖ This statement is related to which types of plan.
Answer: Rules

Question. Planning function of management is conducted at which level of management.
Answer: At all the three levels

Question. ―Planning is mental exercise ―how?
Answer: Planning is a mental exercise:
i) It requires application of the mind involving foresight, intelligent imagination and sound judgment
ii) It is basically an intellectual activity of thinking rather than doing, because planning determines the action to be taken
iii) Planning requires logical and systematic thinking rather than guess work.

Question. Explain briefly importance of planning.
Answer: Importance of planning are:-

Question. Explain the limitations of Planning.
Answer: Limitations of planning are:-

Chapter/Unit – 5th Organizing

QUESTIONS:-

Question. How informal organization is created?
Answer: It is created due to friendly and social interaction of employees

Question. Name the function of management which coordinates the physical, financial and human resources and establishes productive relations among them for achievement of specific goals.
Answer: Organising function

Question. What is meant by organizational structure?
Answer: It is specific pattern of relationships which is created during organizing process OR it is a network of job positions, responsibilities and authority of different level.

Question. What is the objectives of decentralization?
Answer: To disperse authority to the lowest level.

Question. The no. of subordinates that can be effectively by a superior refers to which aspect of management?
Answer: Span of management

Question. What is functional organization structure? Write two advantages of this structure.
Answer:
Meaning of Functional Structure: When activities and jobs are grouped on the basis of functions (Finance, Purchases, Research, Production, Marketing, Human Resource) and departments are related to specific function then it is called functional structure. Department heads are responsible to general manager.

ADVANTAGES:
1. Benefit of functional specialization: - In this structure, each department has to perform a specific function only. A worker does similar tasks within a department many times. Each department is headed by a manager who is expert in that specific function. So all these things create functional specialization.

2. Effective control and coordination:-All members of specific department perform only one function so it is easy to co ordinate and control their activities by an expert of specific function.

Question. How accountability related to authority? Explain.
Answer:
Authority
- Right to command.
- Can be delegated.
- Arises from formal position
- Flows downward from superior to subordinate.

Accountability
- Answerability for outcome of the assigned task.
- Cannot be delegated at all.
- Arises from responsibility.
- Flows upward from subordinate to superior

Question. State three steps in the process of organizing.
Answer:

Question. Distinguish between ‗Formal‘ and ‗Informal‘ organisation (any four points)
Answer:

Question. What is meant by―Divisional structure‖ of an organisation? Explain any two advantages and two limitations of it.
Answer:
Meaning of Divisional Structure:-
When jobs and activities related to one product are grouped under one department, it is called divisional structure. Every department is operated as multi-functional unit because all necessary functions are performed in one product division. Each department or division is headed by a product manager and he is responsible for profit or loss of the division.

Advantages of Divisional Structure:-
1. Product specialization: - It creates specialization in a particular product because all activities related to one product are grouped in one department.
2. Greater accountability: - Each division is called a profit center. Each division is accountable for its own profit of loss. So in this structure performance measurement and fixing responsibility for poor result is easier.
3. Flexibility: - Because each unit is independent and its activities and decisions do not affect other departments so it provides flexibility.

Disadvantages of Divisional Structure:-
1. Departmental conflicts:-Conflicts may be raised among different departments in respect to allocation of funds and resources. Each department tries to maximize its own profit at the cost of the other departments.
2. Increase in costs:-Each division has to maintain its own facilities, equipments and personal. Functions are repeated/duplicated in each division. So cost are increased.
3. Ignores organizational interest: - Each divisional head are provided authority and freedom for whole division. So heads focuses on their own product without thinking rest of the organization and its objectives

Unit/Chapter-6th – Staffing 

Question. Explain the meaning of ‗Staffing‘.
Answer: It is a process of providing competent and trained manpower to an organization. Another words, it refers to filling and keeping filled the vacant posts with people.

Question. Name the method of training suitable for plumbers, electriation, and iron workers.
Answer: Apprenticeship

Question. Give one advantage of Job Rotation training.
Answer: This enables the trainee to gain a broader understanding of all parts of the business and how the organisation as a whole functions.

Question. State one objective of Preliminary screening.
Answer: This interview is conducted to check the confidence level of the candidates.

Question. What do you mean by on the Job Training?
Answer: When the employee s are trained while they are performing the job, then it is known as ‗On the Job Training‘

Question. Explain any three types of selection Test.
Answer:

Question. Write the difference between training and Development.
Answer:

Question. Describe briefly the steps involved in the process of staffing.
Answer: Steps of Staffing Process:-

Question. Explain in brief merits and limitation of external sources of recruitment.
Answer:
Meaning of Recruitment: - Recruitment means informing, inviting and motivating eligible candidates through various means/sources, about vacant posts. It is a positive process because there is no rejection in it.

Merits:-
1. Availability of Latest qualified and trained personnel.
2. Wider choice for organization.
3. Availability of fresh talent and new blood to the organization.
4. Creation of competitive spirit in the existing employees.
5. Only source for a new organization.
6. Avoiding negative effect of frequent transfers.

Demerits:-
1. Dissatisfaction in existing employees.
2. Lengthy / time consuming process.
3. Costly process.
4. Existing efficient employees will not be inspired motivated.
5. Overstaffed department cannot be balanced.

Question. Explain the process of Selection.
Answer: Steps of Selection Process:-

Unit-7-Directing 

Question. ―a goal leader does not wait for opportunities but creates them ―this statement is related to which quality of a good leader?
Answer: initiative

Question. What is supervision?
Answer: It refers to observing, guiding and watching the employees while they are performing the job.

Question. Give two examples of monetary incentives.
Answer: I) recognition, assignment of challenging job.

Question. Which pattern of communication indicates one source of information?
Answer: Wheel pattern

Question. Name the communication barriers in which a message is understood differently due to different state of mind of sender and receiver.
Answer: Psychological barrier

Question. Directing is the least important function of management. Do you agree? Give reasons to support your answer
Answer: No, I don‘t agree because of the following reasons
i) Directing initiate‘s action
ii) Integrates employees efforts
iii) Means of motivation

Question. Briefly explain the features of directing.
Answer: Features of directing are:
1. Directing initiate action:
The other functions of management prepare a setting For action, but directing initiates action in the organization.

2. Directing in a pervasive function or management:-
Every manager from top Executive to supervisor performs the function of directing.

3. Means of motivation –
It motivates the subordinates to work efficiently and To contribute their maximum efforts towards the achievement of organizational goals.

Question. Briefly explain the style of leadership.
Answer:
i) Autocratic leadership; it exercise complete control over the subordinates. He centralizes power in himself and takes all the decisions without consulting the subordinates.
ii) Democratic leadership; in this style, it takes decision in consultation and participation of the employees. He delegates and decentralizes the authority.
iii) Free-rein Leadership; it involves complete delegation of authority so that subordinates themselves take decisions. In this style leader avoids power.

Question. Explain the monetary or financial incentives of motivation.
Answer: Financial or Monetary Incentives: - These incentives can be measured and expressed in terms of money.

Question. Explain barriers to effective communication.
Answer:

Unit-8-Controling 

Question. On which function of management is controlling dependent?
Answer: planning

Question. In controlling, why is actual performance is compared with standards?
Answer: It is compared to find out the deviation between actual and desired results

Question. Standards are set in quantitative as well as in qualitative terms, identify the type of standards when it is set in terms of ‗cost to be incurred‘?
Answer: Quantitative standards

Question. Give the meaning of ‗deviation ‗used in control function of management?
Answer: It means the difference between standard performance and actual performance.

Question. When is a corrective action required in controlling?
Answer: When deviations go beyond the acceptable range, especially in the key results areas the immediate corrective action is required in controlling.

Question. What should be done while ‗taking corrective actions‘ in the process of controlling when especially in the important areas deviation go beyond the acceptable range?
Answer: It demands immediate managerial attention.

Question. Planning is looking ahead and controlling is looking back. Comment.
Answer: Planning is looking ahead as plans are prepared for future and are based on forecasts about future conditions. While controlling is looking back as it measures and compares actual performance with standard performance.

-- However, planning is also looking back as plans are formulated in the ligh5t of the problems that were identified in the past.

Question. Explain controlling as a function of management. How are controlling and planning related?
Answer: Relationship between Planning and Controlling / ‘Planning is meaningless without controlling and controlling is blind without planning’:
(i) Controlling is based on standards. Standards are set under planning function. Planning provides eyes to controlling.
(ii) Planning is meaningful when objectives are achieved. By controlling deviations are removed and objectives are achieved, so controlling make planning meaningful.
(iii) Planning is forward looking because it decides future actions, it is also backward looking because past experiences of controlling are used in planning.
(iv) Controlling is backward looking because it analysis what has already done, it is also forward looking because corrective actions are taken in respect of future.
(v) Both planning and controlling are backward looking as well as forward looking functions.

Question. Explain the controlling process.
Answer: Controlling process (involves Setting performance standards, Measurement of actual performance, Comparing actual performance with standards, Analyzing deviations, and Taking corrective action).

Unit-9-Financial management 

Question. WHAT IS THE PRIMARY OBJECTIVE OF FINANCIAL MANAGEMENT?
Answer: to maximize owner‘s wealth of the company.

Question. ‗Cost of debt‘ is lower than the ‗cost of equity share capital‘. Give reasons why even the company can‘t work only with the debt. ?
Answer: because a company cannot be formed without equity share capital.

Question. What does higher business risk indicate?
Answer: it indicates the inability of a company to meet the fixed operating costs such as salary, rent, etc.

Question. What is financial leverage?
Answer: It is the proportion of debt in the overall capital.

Question. Shubham purchases goods on 1 month credit and sells goods in 3 month credit. How much working capital is needed?
Answer: Shubham will require more working capital as he avails strict credit policy of 1 month, while he follows liberal credit policy of 2.5 months.

Question. Explain the concept and the objective of financial management?
Answer:
- To ensure availability of funds whenever needed.
- To ensure effective utilization.
- To ensure safety of funds

Question. What is meant by capital structure? What are the factors to be kept in mind while determining the capital structure of the company?
Answer:
- Cost of debt
- Cost of equity
- Risk considerations
- Tax rate
- Stock market conditions
- Regulatory framework

Question. You are a fiancé manager of a newly established company, the directors have asked you to determine the amount of fixed capital requirement for the company. Explain any four factors that you will consider while determining the fixed capital requirement for the company.
Answer:
- Nature of business
- Scale of operation
- Growth prospects
- Diversification
- Choice of technique
- Financing alternatives
- Technology up gradation

Question. Explain any 4 factors which affect the working capital requirements of a business.
Answer:
- Nature of business
- Business cycle
- Scale of operations
- Production cycle
- Growth prospects
- Credit allowed
- Credit availed
- Availability of raw materials

Unit-10-Financial markets 

Question. What is the main function of financial market?
Answer: the main function of financial market is allocative function.

Question. Give the meaning of capital market
Answer: it means facilities and institutional arrangement through which medium and long term funds are raised and invested.

Question. What is the maturity period of a treasury bill?
Answer: 14 to 364 days.

Question. Who can become depository participants?
Answer: as per SEBI guidelines, any financial institution, and share brokers, banks, etc.

Question. State any 1 developmental function of SEBI.
Answer: Conducting research and publishing information useful to all market participants.

Question. Explain any 3 functions of financial market.
Answer:
i) Mobilization of savings; Financial market is a link between savers and investors.
ii) Provides liquidity to financial assets; in financial market, financial assets can be purchased and sold easily.
iii) Facilitates price discovery; Prices of the financial assets depend upon the demand and supply factors.

Question. Explain the instruments of money market. (Any Three)
Answer:
i) Call money; the money borrowed for a short period which is generally one day. Mostly banks uses call money.
ii) Treasury Bill; It is issued by RBI on behalf of Government of India. This bill enable Govt to get short term borrowings as these bills are sold to banks and general public.
iii) Certificate Of Deposits; It is a time or deposit which can be sold in the sec Market. Only a bank can issue C.D. it is a bearer certificate or document of titles.

Question. Explain the method of floatation of securities in primary market.
Answer:
i) Public issue through prospectus; under this method, company issues a prospectus to inform and attract general public.
ii) Offer for Sale; under this method, new securities are offered to general public but, not directly by the company but by an intermediaries who buys whole lot of securities from company.
iii) Private Placement; Under this method, the securities are sold by the company to an intermediary at a fixed price and in second step intermediaries sell these securities not to general public but to selected clients at higher price such as UTI, LIC, etc.
iv) Right issues; this is the issue of new shares to existing shareholders. It is called Right Issue because it is the pre-emptive right of shareholders that company must offer them the new issue before subscribing to outsiders.
v) e-IPOs; It is the new method of issuing securities through online system of stock exchange.

Unit-11-Marketing management

Question. Why is marketing called a social process?
Answer: Marketing is a process of exchange of goods and services from producers to consumers for money or for something that satisfies the needs of customer.

Question. Out of marketing and selling, which concept has a wider scope?
Answer: Marketing has a wider scope.

Question. Define ‗Promotion Mix ‗as an element of ‗marketing mix‘.
Answer: Promotion mix refers to all the de3cisions or tools which a business performs to motivate and persuade people to buy their products.

Question. State the meaning of ‗product identification‘ function of packaging.
Answer: With the help of packaging the products can be identified easily.

Question. ―Dettol soap free with derma cool talc‖ Which sales promotion technique is highlighted here?
Answer: Product Combinations.

Question. Explain the role of marketing in a firm.
Answer: Role of marketing. Marketing plays an 8important role in achieving the objectives of an organization, whether it is a profit making or nonprofit organization. It helps in the economic development of the nation.

Question. Though branding adds to the cost, it provides several advantages to the consumers. In the light of the statement, state any three advantages of branding to customers.
Answer:
i) helps in product identification. Branding helps the customers to identify the products easily as brand gives satisfaction to the customer so he does not make a close inspection every time.
ii) Status symbol. Use of branded products provide status and prestige to customers and it boosts their confidence level.
iii) Ensures quality. Branding provides quality assurance to customers so they can buy branded goods with no doubts.

Question. Discuss the role of ‗sales promotion‘ as an element of promotion mix.
Answer: Merits of sales promotion are;
i) Attention value: - by providing extra incentive to customers to make the purchase, sales promotion activities attract attention of the people.
ii) Supplement to other promotional measures: - Sales promotion is usually undertaken to supplement personal selling and advertising effort and to increase the overall effectiveness of promotional efforts.
iii) Useful in new product launch: - sales promotion tools are very effective in introducing new product in the market. It stimulates people to try new products launches in the market.

Question. The elements of marketing mix are popularly known as 4 PS of marketing. Explain briefly these elements of marketing mix.
Answer:
i) Product; it refers to anything of value that is offered to the market for sale.
ii) Price; It is the amount of money, which the customers have to pay to the seller in lieu of the product or services provided.
iii) Place; It is a physical distribution mix includes activities that are involved in transferring the ownership to the customers and to make the product available at the right place and at the right time.

Question. ‗Pricing of a product is an important and effective competitive weapon in marketing which depends upon various factors‘. Explain any 3 such factors.
Answer:
i). Utility of demand; while fixing the price, a firm should consider the utility and demand of the product.
ii). Extent of competition in the market; When a firm does not face any competition, then it enjoys complete freedom in fixing the prices.
iii). Govt. and legal regulations; to protect the interest of general public against unfair trade practices.

Question. ‗Advertising misleads customers and increases the cost of production‘. Do you agree with this statement? Give reasons to support your answer.
Answer: No, we don‘t agree with this statement.
i). Encourages the sales of inferior goods; the objection of sale of inferior goods is not correct because inferiority or superiority of a product depends upon the economic value of customers.
ii). Adds to cost; advertising has been severely criticized on the basis of its unnecessarily increases in the price of the product.
iii). some advertisement s are bad in taste; sometimes it uses bad languages to promote the product or convey wrong messages. These are called offensive advertisements.
iv). Advertisement confuses rather than help; It confuses the customers because there are so many advertisements in which each brand claiming to be better than each other.

Unit-12-Consumer protection 

Question. What is the purpose of enacting the Consumer Protection Act 1986?
Answer: To protect or promote the interest of the consumers through speedy and inexpensive redressal of their grievances.

Question. What is the aim of the prevention of Food Adulteration Act?
Answer: This act aims to check adulteration of food articles.

Question. Give any one responsibility of the consumer in addition to obtain a cash memo while purchasing edible oil.
Answer: Consumer should look for AgmarK.

Question. Name any two parties who can file a complaint under the Consumer Protection Act 1986 on behalf of a consumer.
Answer: Central or state Govt.

Question. Who can file the complaint under the Consumer Protection Act 1986?
Answer: Any consumers, on behalf of numerous consumers.

Question. State any four responsibilities of a consumer while purchasing goods and services.
Answer: Quality conscious
I. Cash memo
II. Honesty
III. Awareness of rights.

Question. Explain the redressal mechanism available to the customers under The CP act 1986?
Answer:
- District Forum; it consists of a president and 2 other members. President can be retired or working judge of district court. They are appointed by state govt. The complaints can be filed up to 20 Lakhs.
- State commission; it consists of a president and 2 other members. President can be retired or working judge of high court. They are appointed by state govt. The complaints can be filed up to 1 crore.
- National commission; it consists of a president and 2 other members. President can be retired or working judge of Supreme Court. They are appointed by state govt. The complaints can be filed exceeds 1 crore.

Question. Explain the following consumer rights:
• Right to safety
• Right to seek redressal
• Right to information
Answer:
- Right to safety; According to this Right, the consumers have the right to be protected against the marketing of goods and services which are hazardous to life and property.
- Right to seek redressal; According to this right, the consumer has the right to get compensation against unfair trade practices.
- Right to information; According to this right, the consumer has the right to get information about the quality, quantity, purity, standard and price of goods or services so as to protect himself against the abusive and unfair trade practices.