COMMERCE A LEVEL(FORM SIX) NOTES – THE BUSINESS OFFICE

THE BUSINESS OFFICE

1. Office is the concrete proof of the instance of a commercial enterprise.Commercial office and its branches are identified with the business they transact. In case of banking and insurance enterprises, office is the only visible embodiment of the business which is carried on”.

1. It receives information from internal and external sources.

1. Handling incoming and outgoing mail.
2. Developing office systems, procedures and methods.
3. Maintenance of records ( filling and indexing).
4. Designing and procuring at office forms stationery etc.
5. Recruiting and training of office staff.
6. Maintenance of furniture, machines, appliances.
7. Preparation of statements, reports etc.
8. Maintaining of accounts and other financial records.
9. Preparing up to date information for the whole firm.
10. Handling telephone calls and inquires.
11. Arranging the data in a quickly accessible form for use.
12. Safeguarding the assets.
13. Keeping a prompt and accurate handling of inquiries, orders.
14. Maintaining efficient flow of work in the office.

1. What is an office? What are the functions of an office?

2. What is an office? Bring out its importance.

3. “Office work is unproductive clerical work” explain.

4. The office is a co- ordinating factor. Explain

5. The office is the nerve centre of an organization. Explain

6. What are the functions of modern office? Explain its organization and Management.

7. An office may be regarded as a place where the central mechanism for an organization is located comment on this statement and explain the importance of modern office.

8. No organization worth the name can exist without an efficient office” comment on this statement and bring out clearly the functions of modern office.

9. The office is to a business, what the mainspring is to a watch explain.
10. What is the relationship of office with other departments in the business firm?
11. Office does not produce any article for sale therefore, office work is relatively unimportant” do you agree? Give reasons for your answer.

1. LOCATION OF OFFICE BUILDING

1. OPEN/LAND SCAPE OFFICE

2. PARTITIONED/PRIVATE/CELL/TRADITIONAL OFFICE

1. Discuss the importance of office layout what factors would you take into account while laying an office?

2. What do you understand by an “open office” what are its merits and demerits.

3. You have been asked by your employer to choose an office location. What factors would you consider in doing so?

4. Discuss the merits and demerits of an open office as compared to separate office rooms.

5. Define office layout and its objectives. On what principles office layout should be based.

6. “layout is very important for office operations” explain.

7. What are the merits of own office building?

8. What points should be taken into consideration when arranging an office accommodation and layout? Describe them briefly.

9. What is meant by office accommodation? What factors influence office location?
10. What are factors that determine the size of office?

1. Location

2. Premises of the office

3. Layout

4. Furniture

5. Stationery and equipment

6. Office staff

7. Functional division of labour

1. Proper light
2. Ventilation
3. Interior decoration
4. Furnishing
5. Office furniture
6. Freedom from Noise and dust
7. Safety
8. Sanitary arrangements
9. Security
10. Secrecy

1. VENTILATION

1. INTERIOR DECORATION AND FURNISHING

1. Movements of machines.
2. Movements and conversation of clerks, peons, visitors etc.
3. Cracking doors.
4. Calling bells, telephone bells.
5. Shifting of furniture from one place to another.

1. Carpets or rubber mats spread on the floor will reduce the sounds caused by the movements of the clerks and other people.
2. Below the office machines which create noise in operation, felt pads can be placed which reduce the noise.
3. Calling bells can be replaced with buzzers
4. Banging or cracking doors should be fitted with rubber or left stops to reduce sound. Proper oiling of the hinges of the door will also reduce noise. Automatic door springs, rubber pads, etc can be fitted.
5. Telephones may be kept in sound- proof booths to reduce the sound.
6. Clerks must be instructed to maintain calmness.
7. When the office is fee from the noise calmness prevails, clerks will automatically be discouraged to make sounds by talk or gossip.
8. Workers must be engaged fully during the office hours so that they don’t waste their time over idle gossip.

1. Street sounds
2. Noisy industrial process etc the sound seldom inter the office through the open windows and doors

1. As far as possible the location of the office should be away from the noise creating places
2. Doors and windows may be kept closed
3. Walls of the office should be made at sound-proof materials

1. Slip on floor.
2. Fall on stair case.
3. Leakage of electric wire.

1. A first- aid box be provided and must be under the custody of a trained person it must placed at a visible and convenient.
2. Place.
3. Five precautions methods. Fire extinguishers must be provided and the staff be trained to use them.
4. Fluorescent lamps and fans must be checked periodically. All the electrical fittings must be checked and tested to confirm the absence of leakage.
5. Files should not be placed on the top of almirah, because when taking one file, others may fall down.
6. There should be regular inspection of machines, equipments e.t.c.
7. Smoking should not be allowed within the office premises.

1. Office must be cleaned everyday.
2. There must be special cleaning, at least once a week, so as to keep clean the filing cabinet, cupboard, shelves, furniture, equipment etc.
3. The room should not only be clean but fee from bad odour and infection.
4. Office should be sprayed often with disinfectant.
5. Waste paper and other waste materials must be placed in a waste-box and disposed of daily in the evening hours, preferably after the office hour.
6. Daily after cleaning the floor of the office, the furniture should also be dusted.
7. Air purifiers must be used which must be replaced in time.
8. A sufficient number of spittoons should be provided in every building at convenient places.
9. Effective arrangement should be to provide a sufficient supply of wholesome drinking water at suitable places.
10. Adequate cloak rooms, toilets and washing facilities should be provided at convenient palace.
11. Neat and clean canteens under the combined management of employers employees, must be arranged to supply quality food to staff interior decoration may be done in pleasing colours, inside the canteen.
12. Office should have provision for rooms where workers may go and rest during rest intervals.

1. Discuss the consideration you will take into account while planning for office lighting, ventilation and efficiency of work.

2. Discuss, the various factors which influence the physical environment f an office.

3. Describe the importance of proper ligh
   ting and ventilation from the point of view of efficiency of office work.

4. Discuss the impact of noise in relation to clerical work and the ways in which it can be reduced.

5. “Interior decoration is now an important part of office environment”. Discuss

6. What are different types of artificial lighting used in modern office.

7. A scooter manufacturing company employing 3,000 factory workers and 500 office employee is contemplating the moving of its operation from Madurai city to suburban meluri.The question has been raised whether the company should maintain its office in Madurai city or whether to house the office in the same building as the manufacturing operations in meluri. There is prestige factor to be considered in having a Madurai city address.Discuss in the order of their importance, the factors to be considered in locating the office in suburban or in Madurai city.

1. Suitability. To suit particular job or jobs.
2. Cost. Should be within the financial ability of an enterprise.
3. Comfort. Tables and chairs should make the worker not feel fatigue.
4. Durability. Furniture to be durable enough for longer business uses. Metal furniture probably last longer than ordinary wooden furniture.
5. Design of the furniture should match with the actual work to be done.
6. Appearance of the furniture should pleasing enough to impress the workers and visitors.
7. Hygiene. How easy it is to clean and to clean the floor under earth it.
8. Space saving. Furniture should occupy a minimum space.
9. Portable easy to carry the furniture from the space.
10. Fire risk. Again metal furniture is better fire risk than wooden.
11. Safety. Plate glass topped furniture may not be safe in use.
12. Supervision. To work being done in office should be over looked due to structure of furniture.

1. Suitability

2. Comfort

3. Design

4. Durability

5. Weight

6. Space saving

7. Cost

8. Hygiene

9. Usefulness

1. Appearance

1. Multi- purpose uses

1. Executive furniture

1. Desks

1. What are different types of furniture in an office?

2. What are the factors to be considered when selecting furniture for a business.
3. Discuss the principles of selection in the furniture layout.

1. Uniformity, standardization, simplification of work can be maintained.
2. Labour savings. Work performed by a machine requires very few staff and thus there is labour saving and reduction of salaries and wages due to fewer workers needed.
3. Facilitate control. From the management point of view greater control is possible and much more information is available.
4. Reduce overtime. When the office is mechanized, or greater amount of overtime is also reduced.
5. Prestigious. The product of machines is more presentable.
6. Reduces fraud. They assist in avoiding errors and frauds.
7. Economical. Cost per unit of job done by machines usually works out to be less than that done manually e.g. computer is more economical than working with hands.
8. Relieves monotony many jobs in the office are repetitive in nature. Clerks instructed with the task of doing jobs get tired, both physically and mentally, if such jobs are done through the help of machines operated by skilled office staff, the same work becomes pleasant and interesting.
9. Saving in time. Use of the machines in the offices quickens the pace of office work and thus saves time.
10. Satisfactory services t customers. Prompt replies to inquiries, delivery of goods in time, preparation of correct invoices, keeping of accurate and up to date accounts etc are all essential to build up goodwill for the concern. Mechanical devices are helpful in doing all this and much more speed accurately and neatly. Thus, customers get satisfactory services.

1. Telephone

2. Dictaphone

3. Combination of telephone plus

4. Ipsophone

5. Auto abstract

6. Stenographic machine/shorthand machine

7. Duplicating machine

8. Paper shredders

1. On the basis of operation or function on performed by the form, as function performed by the forms, as for instance, purchase form, material requisition form, application form. Etc

2. On the basis of use of forms

3. On the basis of copy

1. Discuss the need for and importance of stationery and supplies in office work.

2. Describe the complete plan of stationery control.

3. Forms are the basic tools of all office works discuss the statement.

4. Forms are foundations of clerical system explain.

5. Why is control of forms desirable?

6. What are the advantages to be driven from the use of office forms?

1. Wh
   at factors would you take into account in deciding whether to go for the purchase of labour-saving devices for office?
2. Describe the important labour-saving devices for smooth running of the office work.
3. What are the objects of introducing office machine? State the relative advantages
4. In selecting a machine, what are the points to be considered?
5. State the criteria for the selection of office machines?
6. What are the uses of computer?
7. What are the benefits obtained from the use of computer and show its limitations.
8. What are the advantages and disadvantages of office machines?
9. Explain the uses of a computer and how it helps in the modern business.
10. What is office furniture? Discuss the main components of office furniture.
11. Discuss the factors which influence the choice of office equipment.
12. Discuss the importance of the records of equipment, machines and stationery.

1. These records ensure the proper use of all assets of the firm.
2. These records prevent the theft or misuse of some items are missing the appropriate action can be taken to locate them without delay.
3. The records help to find out the correct value of assets of the company.
4. These are needed to ensure the expenditure incurred on these items.
5. These avoid the wastage or inappropriate use of stationery.

1. Verification.

2. Justification.

3. Classification.

4. Information.

5. Elasticity.

6. Reasonable cost

1. Creation stage

2. Storage stage

3. Retrieval stage

4. Disposition stage

1. Simplicity

2. Accuracy

3. Economy

4. Usefulness

1. information function

2. administrative function

3. library function

4. Historical function

1. Period of storage

2. Storage space.

3. Arrangements in storage.

4. Determining equipments need.

5. System of classification.

6. Training.

1. Centralized filing system

1. It is simple to operate. It is easy to file documents.
2. It facilitate easy references of documents as they are filed in chronological ( date- wise) order.
3. It is flexible system.
4. It can keep letters in proper order with the help of spring fastening device.
5. The letters can be referred without moving them from the file. Thus, risk of being lost is maintained.

1. It is unsuitable where the volume of records is very high
2. To take out any proper , other papers have to be dislocated as the paper are kept in the order in which they are received.
3. When a large number of papers are stored in one file, their location becomes somewhat difficult.
4. This system is less flexible and takes more time as compared to vertical system.

1. Vertical filing allows ready reference of papers and documents. The heading of each folder is visible from the extended edge of the back- sheet.
2. It is really adoptable. The folders can be arranged according to any classification such as alphabetical numerical and subject-wise.
3. It is economical compared to the horizontal equipment as it can accommodate more papers.
4. It provides ample scope for expansion while installing this type of equipment adequate provision for expansion of the number of folders can be made in the drawers.

1. Vertical filing is not as fast as the other methods of filing such as visible card filing and rotary card filing.
2. There is always a possibility of folders shipping down the drawers. This may lead to unnecessary wear and tears of various folders.

4. Lateral filing.

5. Open shelf filing

6. Visible card filing

1. Alphabetical classification

1. Training is not needed for the clerks to perform the filling.
2. It is easy and convenient to group papers by names of persons, firm, products etc.
3. Direct filing is possible without the help of an index. It is self-index.
4. Files can be located immediately.
5. Number of files can be reduced or introduced without disturbing the classification.

1. In large systems it takes longer time to find papers.
2. Mistakes creep in under common names i.e when there are several persons having the same name.
3. There is also difficult if the names are mis-spelt.
4. For large organizations, papers may be reasonably be filed under different headings.
5. It is difficult to forecast space requirements for different letters of the alphabet.

2. Numerical classification

1. Accuracy in filling system is greater.
2. Reference is made by numbers.
3. They have unlimited possibilities for expansion. New documents are added to the file as they arise.
4. If files are misplaced, it can be noticed promptly.
5. It is easy to operate, numbered files can easily be located and arranged serially in comparison to alphabetical index.
6. The filling index may be used for other purposes ( for example a mailing list) as well.

1. Transposition of figures causes mis-filing.
2. A separate index must be provided.
3. It takes time for a new employee to fully understand the system.
4. Filing and finding is indirect.
5. It takes longer to file material as it involves two operations i.e the recording of paper number on the card index and the filing of the document.

3. The alphabetical- numerical or alpha- numerical classification

1. It has all the advantages of the alphabetical and numerical classification.
2. I t is an elastic classification.
3. It facilitates quick reference.
4. Geographical classification.

1. It is simple to operate.
2. Statistical data can be collected easily.
3. Suitable for companies that have several branches spread over different parts of the world or a country. For example, oil companies and commercial banks.
4. Convenience of reference where the location is known.
5. Direct access for filling purposes.

1. Possibility of error where knowledge of geography is weak
2. Geographical location on must be known in addition to correspondent’s name
3. Index necessary for occasional reference

5. Subjectwise classification

1. All documents referring to a particular subject or matter are kept together in one place.
2. The files can easily be expanded or contracted by simply adding or subtracting old ones.

1. Determining the of divisions is difficult and requires someone with a knowledge of the business and its files.
2. Determining under which subject heading it should be filed requires a trained and careful employee.

1. Useful if dates are known.
2. If provides for unlimited scope of expansion.

1. It is not always suitable.
2. Incoming letters might become separate from outgoing ones.

1. The number of files and documents that need to be retained.
2. Simple in use and easy to explain to a new employee. It should be the one could take up after a brief explanation e.g Alphabetical filing.
3. There must be room for expansion and capacity to accommodate new files without the need to change the existing documents( i.e. their sequence order).
4. There must be easy reference and minimum possibility of misfiling.
5. A document need not have more than one file or filed under different subjects.
6. The cost of keeping files must be minimum. Filling classifications have different equipment and maintenance costs of keeping them.

1. Indexing is an essential part of a good filing system as it is a guide.
2. It provides a ready reference.
3. It facilitate easy location of files.
4. Even if the files are arranged in self- indexing method index will further speed the work.
5. It possesses minimum information.

1. It must be simple to operate and use
2. It must be economical in terms of money, space and effort
3. It should be flexible to allow for expansion
4. It should allow for speed
5. It should be suitable for the particular business
6. It should have locking arrangement

1. Bound book index

2. Vowel index

1. It is a permanent record.
2. It is safe, because it will not be lost.
3. It is always in the register itself and no time is spent in searching the index.

1. In the book index, the names of persons are written, as and when occurred. So it takes much time to search a name. there are many pages allotted to the same letter. But vowel index is an advantage.
2. The system is in elastic.
3. The names of the persons, who are no dealing with the firm have to be truck off
   .

1. Index of dead files can easily be removed.
2. The system is elastic.
3. Complete information can be had.
4. Additional information can be written or typed easily.
5. It save time and material.
6. It is very economical.
7. The dispatch of monthly statements and trade circulars is easy.

1. It is possible that cars, are torn quickly by constant use.
2. Equipments are needed to keep the cards, therefore this system is expensive.
3. There is possibility of cards being misplaced, when they are inserted or taken out.
4. For small firms it is a mere waste.

1. Any type of ruling can be adopted for the cards.
2. Insertion or removal of cards is easy.
3. It is capable of being expanded.
4. Location of card is easily.
5. Rearrangement of car as is possible.
6. The system ensures quick and accurate references.
7. Foldable card can also be used.

1. It is complex and elaborate.
2. There is the danger of the cards being lost or misplaced.
3. It is not suitable for small firms.
4. It requires special equipment and specialized clerks.

5. Visible card index

1. It is compact and requires less space.
2. As it is visible, there will be speed in work.
3. It is useful to management as it provides quick information.
4. It helps management in controlling purchases, sales e.t.c
5. It gives a list of customers easily visible to the eyes on the frame and requires less expense and minimum effort.

6. Wheel index

7. Strip index

1. The type and the extent of information needed.
2. Cost of equipment in each system.
3. Cost of labour in each system.
4. The requirement of space required for each system.
5. The frequency of adding or deleting.
6. The purpose of keeping an index.

1. Saves space and weight-bulky files are replaced by compact cartons of films.
2. Documents can be sent abroad. Micro-filming reduces cost of postage if information has to be sent by expensive air-mail.
3. There is little risk of misplacing there is no possibilities of records on micro-film to be misfiled as it would be with lose papers in a folder.
4. A film is more durable than paper and provides a much move permanent record film is more wear- resistant than paper.
5. Film can be enlarged on to paper, thus providing quick and accurate duplicate copies of the original documents.
6. There is saving in filing equipment as well as floor space.

1. Relatively slow because the film has to be viewed through the reader ( a machine with projects the film on to a screen).
2. No indexing is possible and thus location of a particular frame may be difficult causing delay and frustration.
3. Micro-filmed information cannot be altered which is a disadvantage because sometimes it is necessary to make corrections or make insertions to the stored information.
4. There is great loss in case of one film I lost as one film will be keeping so many documents.
5. In case of poor processing with stale chemicals, the film may be unreadable.

1. Instruction for filing

2. Classifying

3. Indexing

4. Cross reference

5. Filling

6. Follow up

7. Issue of the file for reference.

8. Disposal of dead files

In office the filing department should transfer the inactive files into the central room but when the paper has become dead, it should be
destroyed according to the instructions of the officer responsible for retention of records.