Business Environment

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 the 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: -
Factors effecting technological environment of business

Economic Liberalization

Horizontal and vertical integration

Special Economic Zones (SEZs)

TRIPS & TRIMS 

6. How technological change effects business? Discuss with suitable examples. 

7. 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.
SECTION B

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.

Q. 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.

SECTION C

QUESTION 1

MFN stands for
        
Most favoured Nation

Most fugitive nation

None of the above

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
        
Stagflation

Inflation

Competition

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
        
Competition

Stagflation

Inflation

All of the above

QUESTION 4

Economic Factors impacting business includes
        
"Tarriffs, Quotas etc"

Political risks

Acts of God

None of the above

QUESTION 5

Geological and ecological factors include
        
General Agreement on Tarrifs and Trades

Topograhical factors

Inflation of white Goods

Both (a) and (b)

QUESTION 6

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

Economic Efficiency

Econometric Methods

Decision Science

QUESTION 7

Which of the following are Brown Goods
        
"Refrigerator, Washing Machines"

"Radio , Transistors, televisons"

Both (a) and (b)

None of the above

QUESTION 8

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

Oligopoly

Both (a) and (b)

None of the above

QUESTION 9

MRTP act was replaced by this act
        
The consumer Protection Act

SEBI Act

Sick Industrial Companies Act

The Competition Act

QUESTION 10

"Act which authorizes the Government to protect and improve environmental quality, control and reduce pollution”
        
"Environmental Protection Act,1986"

MRTP Act

The consumer Protection Act

SEBI Act

QUESTION 11

The rate at which RBI lends money to commercial banks
        
Repo rate

Reverse Repo rate

Cash reserve ratio

Bank Rate

QUESTION 12

Rate at which RBI borrows money from banks
        
Repo rate

Reverse Repo rate

Cash reserve ratio

Bank Rate

QUESTION 13

Industrial Policy is about
        
Controlling prics

Controlling Quantity

Both (a) and (b)

None of the above

QUESTION 14

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

Oligopoly

Both (a) and (b)

None of the above

QUESTION 15

FEMA stands for
        
Foreign Exchange Multinational Act

Foreign Exchange Managrial Ability

Foreign Exchange Management act

None of the above

QUESTION 16

The act which regulates relations between workers and employers for direct negotiations is known as
        
"The Industrial Disputes Act, 1947"

International Labour Organization

None of the above

All of the above

QUESTION 17

Socio-Cultural Environment includes
        
Life-Style Changes

Devaluation

Consumer Activism

Both (a) and (b)

QUESTION 18

FERA Stands for
        
Foreign Exchange Regulation Act

Foreign Exchange Registration Act

Funding Exchange Regulation Act

None of the above

QUESTION 19

RBI can restrict the following
        
Transfer of foreign security by Indian Resident and NRI

Transfer of Immovable property

Both (a) and (b)

None of the above

QUESTION 20

Business on internet is known as
        
FMCG

Black Market

E-Biz School

E-Commerce

QUESTION 21

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

Budget Line

Entrepreneurs

Decision Science

QUESTION 22

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

Consumer Sovereignty

Common Economy

Branding

QUESTION 23

Imperfect Competition can be divided into three main categories
        
Monopoly and Monopsony

Oligopoly and Oligopsony

Monopolistic Competition

All of the above

QUESTION 24

The objectives of Fiscal Policy are
        
Development of country

Provide Employment

None of the above

Both (a) and (b)

QUESTION 25

Goal of NAFTA is to
        
Eliminate barriers to trade and investment between three countries

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

Eliminate barriers to trade and investment between tribes

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
        
Balance of Trade

Balance of Payments

Both (a) and (b)

None of the above

QUESTION 27

SAARC Agreement establishes a framework for
        
The exchange of trade concessions among the member states

Eliminate barriers to trade and investment between three countries

Accelerate Economic Growth

All of the above

QUESTION 28

TRIMs stands for
        
Trade Related Investment Measures

Trade Related Improvement Measures

Trade Related Initiation Measures

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
        
Business Cycle

Trend analysis

Corporate Social Responsibility

Expropriation Risk

QUESTION 30

The most useful information derived from a break-even chart is the
        
Amount of sales revenue needed to cover enterprise fixed costs

Amount of sales revenue needed to cover enterprise variable costs

Volume or output level at which the enterprise break-evens

Relationship between revenue and costs at various levels of an activity

QUESTION 31

Competition Act was passed in the year
        
1947

1956

2002

None of the above

QUESTION 32

The objective of cash discount is
        
to extend the goodwill of a firm

to reduce the price of a product

to encourage the customers to make prompt payment

to increase the number of customers

QUESTION 33

Opportunity cost is a term which describes
        
a bargain price for a factor of production

costs related to an optimum level of production

variable costs

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
        
Gross National Product

Net National Product

Disposable Income

Personal Income

QUESTION 35

GSTP establishes a framework for
        
Trade Related Investment Measures

Exchange of trade concessions among the members of the group

Accelerate Economic Growth

Incorrect

QUESTION 36

The objective of India Trade Promotion Organization is to
        
Promote exports and imports

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

Assist Indian companies in product development

All of the above

QUESTION 37

National Centre for Trade promotion was established to
        
"Provide the latest trade, business and economic information to helpIndian and foreign organizations"

Exchange of trade concessions among the members of the group

Bargain price for a factor of production

Issue Policies to the exporters

QUESTION 38

The main factors of micro-environment are
        
Suppliers

Customers

Marketing Intermediaries

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
        
Forecasting

Break-Even Point

Fixed Costs

Contribution Margin

QUESTION 40

The objectives of Information Technology Act are
        
To legalise digital signature

Store data electronicallly

To stop computer crime

All of the above