Business Environment and Social Responsibility

Comprehensive practice questions covering business environment features, economic policies, 1991 reforms, CSR, and business ethics based on the Senior Secondary Business Studies lecture notes.

How is 'business environment' defined in the lecture?

The total surroundings consisting of external factors, such as economic, social, political, legal, demographic, and technical factors, which are beyond the control of the business and affect its functioning.

What are the two categories of factors included in the business environment?

Micro factors (specific factors like investors, competitors, and customers) and Macro factors (general factors like social, political, cultural, legal, and technological aspects).

Why is the business environment described as 'Dynamic' and 'Uncertain'?

It is dynamic because it keeps on changing, and uncertain because these changes are unpredictable and difficult to foresee.

What example is provided for 'Giving Direction for Growth' through environmental interaction?

Reliance launched Jio after seeing the potential for growth in the mobile phone market.

What components make up the 'Economic Environment'?

Economic conditions (like GDP and per capita income), economic policies (like fiscal and monetary policies), and the type of economic system.

What is the difference between Fiscal Policy and Monetary Policy?

Fiscal policy involves government public expenditure, taxation, and debt, while Monetary policy aims at the smooth supply of credit to business and boosting trade and industry.

Which economic system has India adopted?

A mixed economy system, which implies the co-existence of both the public sector and the private sector.

What is the function of the 'Exim policy'?

It aims to increase exports and bridge the gap between exports and imports, often focusing on removing barriers and lowering custom duties.

What are some elements of the 'Social Environment' of business?

Customs, traditions, values, beliefs, poverty, literacy, and life expectancy rates.

What components define the 'Demographic Environment'?

The size, density, distribution, and growth rate of a population.

What are the three core pillars of the radical economic changes introduced in India in $1991$?

Liberalisation, Privatisation, and Globalisation.

What is 'Liberalisation' in the context of Indian economy?

The process of eliminating unnecessary controls and restrictions, such as abolishing industrial licensing and simplifying import-export procedures.

How is 'Globalisation' achieved according to the notes?

By reducing custom duties, removing quantitative restrictions on trade, and facilitating foreign investment to integrate the national economy with the world economy.

When was the Goods and Services Tax (GST) implemented, and what is its theme?

Implemented on July $1$, $2017$, under the theme of 'One nation and one tax'.

What is the primary purpose of the 'Make in India' program launched in September $2014$?

To facilitate investment, encourage innovation, boost skill development, and invite global sectors to engineer and sell products in India.

What are the three core components of the 'Digital India' campaign?

Creating digital infrastructure, delivering government services digitally, and promoting digital literacy.

What percentage of profits does the Government of India require large companies to spend on Corporate Social Responsibility (CSR)?

At least $2\%$ of their profits every year.

What are a business's responsibilities toward its shareholders?

To ensure safety of investment, provide regular and correct financial information, provide fair dividends, and ensure capital appreciation.

What are the four main types of environmental pollution caused by industry?

Air pollution, Water pollution, Land pollution, and Noise pollution.

What does 'Business Ethics' mean?

The moral principles and business practices that are desirable from the point of view of society, such as charging fair prices and using fair weights.

Which Acts replaced the 'Monopolies and Restrictive Trade Practices Act, 1969' and 'The Standards of Weights and Measures Act 1976'?

The Competition Act, $2002$ and the Legal Metrology Act, $2009$ respectively.