Assignment - A

1. Discuss the nature and dynamism of business environment. What factors trigger changes in the business environment?

 

 

2. Elaborate upon the major components of internal environment of a business firm?

 

3. Explain the main objectives as incorporated in various five-year plans of India.

 

 

4. ‘Social responsibility is a luxury which a few business organizations can afford’. Do you agree or disagree? Give arguments in support of your answer.

5. Write short answers to any three of the following: -
6. Factors effecting technological environment of business

 

 

2. Economic Liberalization

 

3. Horizontal and vertical integration

 

7. Special Economic Zones (SEZs)

 

8. Explain the regulatory role of the government in an economy. Is government intervention in the economy desirable?

8. Explain the role and functions of WTO and discuss its importance in promoting international trade.

 

Business Environment

 

Case Study -

Dumping is the process exporting goods at a price lower than what a good company can fetch in its domestic market. For eg. A baker sells a loaf of bread for Rs.100, but because there are no buyers in India she exports the loaf of bread to another country for Rs. 90.This will be called as dumping by that country. The retail price includes the profit margin of the seller. The loaf in the previous example may have been produced for Rs. 80 with the profit marging being Rs. 20 a loaf. This baker cuts down on his profits when he exports the loaf for Rs. 90. Exporters dump products when they cannot sell products in their domestic market even after slashing costs. This happens when domestic demand is very low as is the case with China, which is flooding the world with its cheap steel.

                                                                                                                                                                                                                                                   The prices are already down. One of the reasons is that China accounts for half of the world's steel capacity of 1600 million tonnes (MT) per year and a slowdown has meant that even low -priced is not being bought domestically. In order to reduce excess capacity China recently announced a 1.8 million job cut in the coal and steel sector.    

                                                                                                                                                                                                                                                                                                                                                                                         Yes, China exported 112MT of steel in 2015. This is 25% more than India's total production of steel. Most of the countries to which China exports its steel say that the country is dumping the product causing adverse impact on their domestic industry. Tata Steel, which has begun the process of selling its UK operations, said one of its businesses in Europe was affected due to cheap Chinese imports flooding the continent.

 

Q.1. What is dumping process.

 2. Why did China recently announced a 1.8 million job cut in the coal and steel sector.?

 

Q.3. When does exporter's dump their products.

 

A

 

SECTION C

 

QUESTION 1

 

MFN stands for

                       

1. Most favoured Nation

 

2. Most fugitive nation

 

3. None of the above

 

4. All of the above

 

QUESTION 2

 

A period of rising prices and unemployement but little growth in consumer demand and business activity is known as

                       

1. Stagflation

 

2. Inflation

 

3. Competition

 

4. None of the above

 

QUESTION 3

 

An increase in supply of currency or credit relative to the availability of goods and services resulting in higher prices

                       

1. Competition

 

2. Stagflation

 

3. Inflation

 

4. All of the above

 

QUESTION 4

 

Economic Factors impacting business includes

                       

1. "Tarriffs, Quotas etc"

 

2. Political risks

 

3. Acts of God

 

4. None of the above

 

QUESTION 5

 

Geological and ecological factors include

                       

1. General Agreement on Tarrifs and Trades

 

2. Topograhical factors

 

3. Inflation of white Goods

 

4. Both (a) and (b)

 

QUESTION 6

 

"Use of economic theory , mathematical and statastical tools to forecast economic relations"

                       

1. Economic Luck

 

2. Economic Efficiency

 

3. Econometric Methods

 

4. Decision Science

 

QUESTION 7

 

Which of the following are Brown Goods

                       

1. "Refrigerator, Washing Machines"

 

2. "Radio , Transistors, televisons"

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 8

 

Markets with small number of large firms producing the bulk of its output

                       

1. Monopoly

 

2. Oligopoly

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 9

 

MRTP act was replaced by this act

                       

1. The consumer Protection Act

 

2. SEBI Act

 

3. Sick Industrial Companies Act

 

4. The Competition Act

 

QUESTION 10

 

"Act which authorizes the Government to protect and improve environmental quality, control and reduce pollution”

                       

1. "Environmental Protection Act,1986"

 

2. MRTP Act

 

3. The consumer Protection Act

 

4. SEBI Act

 

QUESTION 11

 

The rate at which RBI lends money to commercial banks

                       

1. Repo rate

 

2. Reverse Repo rate

 

3. Cash reserve ratio

 

4. Bank Rate

 

QUESTION 12

 

Rate at which RBI borrows money from banks

                       

1. Repo rate

 

2. Reverse Repo rate

 

3. Cash reserve ratio

 

4. Bank Rate

 

QUESTION 13

 

Industrial Policy is about

                       

1. Controlling prics

 

2. Controlling Quantity

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 14

 

Market which has only one seller of a particular good or service

                       

1. Monopoly

 

2. Oligopoly

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 15

 

FEMA stands for

                       

1. Foreign Exchange Multinational Act

 

2. Foreign Exchange Managrial Ability

 

3. Foreign Exchange Management act

 

4. None of the above

 

QUESTION 16

 

The act which regulates relations between workers and employers for direct negotiations is known as

                       

1. "The Industrial Disputes Act, 1947"

 

2. International Labour Organization

 

3. None of the above

 

4. All of the above

 

QUESTION 17

 

Socio-Cultural Environment includes

                       

1. Life-Style Changes

 

2. Devaluation

 

3. Consumer Activism

 

4. Both (a) and (b)

 

QUESTION 18

 

FERA Stands for

                       

1. Foreign Exchange Regulation Act

 

2. Foreign Exchange Registration Act

 

3. Funding Exchange Regulation Act

 

4. None of the above

 

QUESTION 19

 

RBI can restrict the following

                       

1. Transfer of foreign security by Indian Resident and NRI

 

2. Transfer of Immovable property

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 20

 

Business on internet is known as

                       

1. FMCG

 

2. Black Market

 

3. E-Biz School

 

4. E-Commerce

 

QUESTION 21

 

"Those who are willing to take risk in starting new business, pursuing opportunities and being innovative are known as"

                       

1. Brain Drain

 

2. Budget Line

 

3. Entrepreneurs

 

4. Decision Science

 

QUESTION 22

 

Attaching a brand mark or brand name to a product in order to distinguish it from other product variants

                       

1. Capitalism

 

2. Consumer Sovereignty

 

3. Common Economy

 

4. Branding

 

QUESTION 23

 

Imperfect Competition can be divided into three main categories

                       

1. Monopoly and Monopsony

 

2. Oligopoly and Oligopsony

 

3. Monopolistic Competition

 

4. All of the above

 

QUESTION 24

 

The objectives of Fiscal Policy are

                       

1. Development of country

 

2. Provide Employment

 

3. None of the above

 

4. Both (a) and (b)

 

QUESTION 25

 

Goal of NAFTA is to

                       

1. Eliminate barriers to trade and investment between three countries

 

2. Eliminate barriers to trade and investment between all the countries of the world

 

3. Eliminate barriers to trade and investment between tribes

 

4. None of the above

 

QUESTION 26

 

A systematic record of all economic transactions between the residents of reporting country and residents of foreign countries is known as

                       

1. Balance of Trade

 

2. Balance of Payments

 

3. Both (a) and (b)

 

4. None of the above

 

QUESTION 27

 

SAARC Agreement establishes a framework for

                       

1. The exchange of trade concessions among the member states

 

2. Eliminate barriers to trade and investment between three countries

 

3. Accelerate Economic Growth

 

4. All of the above

 

QUESTION 28

 

TRIMs stands for

                       

1. Trade Related Investment Measures

 

2. Trade Related Improvement Measures

 

3. Trade Related Initiation Measures

 

4. None of the above

 

QUESTION 29

 

The term refers to a corporation's initiatives to assess and take responsibility for the company's effects on environmental and social wellbeing

                       

1. Business Cycle

 

2. Trend analysis

 

3. Corporate Social Responsibility

 

4. Expropriation Risk

 

QUESTION 30

 

The most useful information derived from a break-even chart is the

                       

1. Amount of sales revenue needed to cover enterprise fixed costs

 

2. Amount of sales revenue needed to cover enterprise variable costs

 

3. Volume or output level at which the enterprise break-evens

 

4. Relationship between revenue and costs at various levels of an activity

 

QUESTION 31

 

Competition Act was passed in the year

                       

1. 1947

 

2. 1956

 

3. 2002

 

4. None of the above

 

QUESTION 32

 

The objective of cash discount is

                       

1. to extend the goodwill of a firm

 

2. to reduce the price of a product

 

3. to encourage the customers to make prompt payment

 

4. to increase the number of customers

 

QUESTION 33

 

Opportunity cost is a term which describes

                       

1. a bargain price for a factor of production

 

2. costs related to an optimum level of production

 

3. variable costs

 

4. cost of one product in terms of production of others forgone

 

QUESTION 34

 

Income which individuals have at their disposal after the payment of personal Tax is known as

                       

1. Gross National Product

 

2. Net National Product

 

3. Disposable Income

 

4. Personal Income

 

QUESTION 35

 

GSTP establishes a framework for

                       

1. Trade Related Investment Measures

 

2. Exchange of trade concessions among the members of the group

 

3. Accelerate Economic Growth

 

4. Incorrect

 

QUESTION 36

 

The objective of India Trade Promotion Organization is to

                       

1. Promote exports and imports

 

2. Upgradation of technology through the medium of fairs held in India and abroad

 

3. Assist Indian companies in product development

 

4. All of the above

 

QUESTION 37

 

National Centre for Trade promotion was established to

                       

1. "Provide the latest trade, business and economic information to helpIndian and foreign organizations"

 

2. Exchange of trade concessions among the members of the group

 

3. Bargain price for a factor of production

 

4. Issue Policies to the exporters

 

QUESTION 38

 

The main factors of micro-environment are

                       

1. Suppliers

 

2. Customers

 

3. Marketing Intermediaries

 

4. All of the above

 

QUESTION 39

 

Number of units of the product which must be soldnto earn enough revenue to cover all the expenses-both fixed and variable is known as

                       

1. Forecasting

 

2. Break-Even Point

 

3. Fixed Costs

 

4. Contribution Margin

 

QUESTION 40

 

The objectives of Information Technology Act are

                       

1. To legalise digital signature

 

2. Store data electronicallly

 

3. To stop computer crime

 

4. All of the above

 

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