Business Environment Practice Flashcards

A single parseable JSON array containing 120 vocabulary flashcards based on the provided lecture notes on Business Environment, including economic, legal, and social aspects.

Business Environment

The external forces, factors, and institutions that are beyond the control of the business and affect its functioning.

External Forces

Uncontrollable factors like customers, competitors, suppliers, government, and social, political, or legal conditions that influence a business enterprise.

Economic aspect

A component of the business environment focusing on factors such as GDP, per capita income, and exchange reserves.

Socio-cultural aspects

Environmental factors related to the social structure, customs, traditions, and values cherished by a society.

Political framework

The political system, government policies, and attitude toward the business community that affect business strategies.

Legal aspects

The set of laws and regulations that every business organization must obey to function within the legal framework.

Technological aspects

Methods, techniques, and approaches adopted for the production and distribution of goods and services.

Social Responsibility

The obligation of business owners and managers to act in a manner that serves the best interests of the society.

Business Ethics

Moral principles that determine what is right and what is wrong while performing business activities.

Dynamic Nature

A feature of the business environment meaning it is constantly changing and in a state of flux.

Unpredictable Nature

A feature indicating that the exact nature of future happenings in the economic and social environment is difficult to foresee.

Interdependence

The close and continuous interaction between a business and its complex environment.

Opportunities

Positive external trends or changes that help a business meet challenges and expand activities.

Threats

External environmental factors that can hinder the interaction or success of the business.

Direction for Growth

The identification of new frontiers and areas for expansion through environmental interaction.

Continuous Learning

The motivation for managers to update knowledge and skills to meet predicted changes in the business realm.

Image Building

Improving an organization's public perception by showing sensitivity to the environment, such as setting up captive power plants.

Captive Power Plants (CPP)

Facilities set up by companies in their factories to meet their own requirement of power during shortages.

Economic Environment

Includes the economic conditions, economic policies, and the economic system of the country.

Non-economic Environment

Comprises social, political, legal, technological, demographic, and natural factors affecting business.

Economic Conditions

Factors influencing business operations such as GDP, market availability, and the strength of the capital market.

Gross Domestic Product

The total value of goods produced and services provided in a country during one year.

Per Capita Income

The average income earned per person in a given area in a specified year.

Economic Policies

Government-framed rules like industrial, fiscal, and monetary policies that direct business activities.

Industrial Policy

Principles, policies, and regulations that control industrial enterprises and shape industrial development.

Fiscal Policy

Government policy relating to public expenditure, taxation, and public debt.

Monetary Policy

Interventions aiming at a smooth supply of credit to business and boosting trade and industry.

Foreign Investment Policy

Aims at regulating the inflow of foreign capital to speed up industrial development and utilize modern technology.

Export–Import policy (Exim policy)

Aims at increasing exports and bridging the gap between exports and imports through various duties and levies.

Capitalist Economy

An economic system where private individuals or businesses own capital goods.

Socialist Economy

An economic system where the means of production are socially owned and controlled.

Mixed Economy

An economic system, like India's, characterized by the co-existence of both public and private sectors.

Public Sector

The part of the economy controlled by the government.

Private Sector

The part of the economy run by individuals and companies rather than the government.

Social Environment Factors

Includes customs, traditions, values, beliefs, poverty, literacy, and life expectancy rate.

Literacy Rate

The percentage of the population that can read and write, making consumers more conscious of product quality.

Life Expectancy Rate

The average period that a person may expect to live, which is part of the social environment.

Nuclear Families

Single-child family compositions that increase demand for specific types of household goods.

Political Stability

Sends a signal of strength and confidence to investors and interest groups regarding business activities.

Unionism

Refers to trade union activities which can influence business through strikes, lockouts, and labor disputes.

Judicial Decisions

Court judgments relating to trade and industry that influence business activities and ensure public interest.

Constitutional Provisions

Articles of the Indian Constitution, including directive principles and legislative powers, that influence business.

Companies Act, $1956$

Legislation providing the framework for the formation and regulation of companies in India.

Foreign Exchange Management Act, $1999$

Act regulating foreign exchange transactions and external trade.

The Factories Act, $1948$

Legal framework concerned with the safety, health, and welfare of workers in factories.

Industrial Disputes Act, $1972$

Act providing machinery for the investigation and settlement of industrial disputes.

Payment of Gratuity Act, $1972$

Act providing a scheme for the payment of gratuity to employees in various establishments.

Industries (Development and Regulation) Act, $1951$

Act that provides for the development and regulation of specific industries in India.

Prevention of Food Adulteration Act, $1954$

Law ensuring that food products sold are pure and safe for consumer health.

Essential Commodities Act, $2002$

Act ensuring the delivery of essential commodities to consumers and preventing hoarding.

The Standards of Weights and Measures Act, $1956$

Establishes uniform standards for weights and measures used in trade.

Monopolies and Restrictive Trade Practices Act, $1969$

Act designed to prevent the concentration of economic power and control monopolies.

Trade Marks Act, $1999$

Legislation providing for the registration and better protection of trademarks for goods and services.

Bureau of Indian Standards Act, $1986$

Act providing for the establishment of a national standards body for quality marking.

Consumer Protection Act, $1986$

Legislation for the protection of consumer interests and settlement of consumer disputes.

Environment Protection Act

A central law for the protection and improvement of the environment.

Competition Act, $2002$

Act meant to sustain competition in markets and protect the interests of consumers.

Innovation

Regular scientific research for improvement of products, which is essential for survival in technological environments.

Demographic Environment

Refers to the size, density, distribution, and growth rate of a population.

Labour Intensive Techniques

Production methods preferred in countries with high population rates and easy labor availability.

Skilled Manpower

Availability of trained workers that motivates international firms to set up units in specific areas like India.

Natural Environment

Includes geographical and ecological factors like natural resources, weather, and topography.

Ecological Balance

The government objective to maintain environmental stability, placing extra responsibility on the business sector.

Agrarian Economy

The status of the Indian economy at independence, characterized by a weak industrial base.

Radical Change of $1991$

The introduction of new economic policies involving liberalisation, privatisation, and globalisation.

Liberalisation

The process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

Abolishing Industrial Licensing

Removing the requirement for government permission to start or expand most categories of industries.

Privatisation

Reducing the role of the public sector by involving private sectors in most industrial activities.

Disinvestment

Selling shares of selected public sector industrial enterprises to raise resources and encourage public ownership.

MOU System

A system where managements are granted autonomy but held accountable for specified results.

Globalisation

Integrating the economy of a country with the world economy through free flow of goods and capital.

Custom Duties

Taxes imposed on imports and exports, often reduced to facilitate globalisation.

Quantitative Restrictions

Quotas or limits on the volume of exports and imports, removed to encourage global trade.

MNCs

Multi-National Corporations that provide intense competition to internal Indian companies after market opening.

Human Resources Necessity

The requirement for highly skilled and competent personnel created by new market situations.

Legal Obligation

Fulfilling duties because of the provisions or fear of law.

Social Obligation

Voluntary efforts on the part of business to fulfill the needs of society.

Self Interest (Social Responsibility)

The concept that business succeeds long-term by fulfilling societal demands for a better environment and education.

Social Power

The influence business decisions have on consumers, employees, and the community.

Consumer Associations

Groups formed by consumers to compel businesses to perform social obligations and provide fair treatment.

Moral Justification

The responsibility to contribute back to society because business uses its human and physical resources.

Interest Groups

Stakeholders such as workers, consumers, government, and the community that a business is responsible to.

Shareholders

Owners who invest money in the business and expect a fair return or dividend.

Dividends

Distribution of a portion of a company's earnings to its shareholders.

Capital Appreciation

The increase in the value of shares over time, expected by company owners.

Fair Wages

Salary paid to workers based on the nature of work and prevailing market rates.

Participation in Management

Involving employees in the decision-making processes of the organization.

Adulteration

The practice of making products impure or poor quality, which socially responsible businesses avoid.

Dishonest Advertising

Misleading claims about products that a responsible business must avoid to protect consumers.

National Integration

The promotion of unity among the people of a country, supported by business through community responsibility.

Cement Corporation of India

One of the large companies that voluntarily reports its social performance in Annual Reports.

Asian Paints

A prominent company recognized for being eco-friendly and conscious of community development roles.

Environmental Pollution

Damage to the environment caused by industrialization, traffic, and fast food centers.

Pollution Control Boards

Bodies set up by Central and State governments to frame and enforce laws to prevent pollution.

Air Pollution

Decrease in air quality resulting from factors like carbon monoxide emitted by automobiles.

Water Pollution

Contamination of water bodies by chemical waste from factories and plastic materials.

Land Pollution

Damage to soil caused by excessive usage of pesticides in agriculture and improper disposal of plastic bags.

Noise Pollution

Disruption caused by factory machinery and automobiles that can lead to hearing loss or mental disorders.

Safety Hazards

Physical dangers and risks that pollution control aims to reduce to ensure safety of life.

Ethical Business Practices

Include charging fair prices, using fair weights, and paying taxes promptly.