unit solve paper-1 business environment

Flashcards for review of business environment concepts, terms, and key facts.

Business Environment

Effected by both internal and external factors.

External Environment Factors

Environmental factors beyond the control of an individual.

PEST Framework

In environmental analysis, E stands for Economics.

Business Environment Scanning

Government analysis is NOT a technique used in business environment scanning.

Privatization

Denationalization, Sale of Business and Franchising are all methods of privatization.

FEMA

Stands for Foreign Exchange Management Act.

11th Five Year Plan

Aimed to achieve Inclusive Growth.

Laissez-faire Policy

Adopted in a Capitalistic economic system.

External Factors

Changes in technology, political factors, and population demand.

Micro Factor

Affects the organization but not necessarily the whole economy.

Mission

Tells the purpose of existence of business

Sole Proprietorship

Has unlimited liability

Corporate Social Responsibility

A conscious effort to operate in a manner that balances stockholder interests.

Milton Friedman

Said that the one social responsibility of business is to increase profits.

Mixed Economy

In India, it exists because of the Public and Private Sectors.

Planning Commission of India

Constituted in the year 1950.

FEMA

Significant development in the sphere of foreign exchange.

Deficit Financing

Not an instrument of monetary policy.

Ninth Plan

Objective is to achieve growth with equity.

Mixed Economy

Consists of Public sector, private sector, and cooperative sector

Objectives

No planning can start without setting objectives.

Small Scale

Financial suitability and job opportunity are the advantages in small scale of operation.

Economic Environment

Change in patent law is not part of the economics environment.

Economies Derived from Large Scale of Business

Both Internal and External Economies are derived from large scale business.

CSR

Addresses Social and Environmental Concerns.

RBV in CSR

Refers to Resources Based View.

Indian Monetary System

Based on Minimum Reserve System.

Indian Institute of Foreign Trade

Located in New Delhi.

Fourth Five Year Plan

1966-71 ,not correct

Liberalization

Relaxing the restrictions and control imposed on Business and industry.

Liberalization

Liberating the industry, trade and economy from unwanted restrictions.

Multinational Companies

Advantages are Funds Availability, Provision of Employments, and Increasing Competitions.

SEZ Policy in India

Motivated by the experience of China.

Consumer Protection Act 1986

Extends to The Whole India.

Consumer Protection Act 1986 Enacted

On 24 Dec. 1986.

FEMA Responsibility

Vested with The Reserve Bank of India.

Fiscal and Monetary Policy

Different means used to attain the same goals.

Intellectual Property Rights

None of the above.

Consumer Protection Act

Amount claimed is Rs. 89 Lakhs, the case will be filed with The State Consumer Disputes Redressal Commission.

Fiscal Policy

The government's strategy regarding public expenditure and revenue that significantly impacts business.

Chronological Order of Acts

Consumer Protection Act, Securities and Exchange Board of India Act, Foreign Exchange Management Act, Competition Act.

Small Scale Enterprise Investment Limit

Rs. 1 Crores.

Tiny Enterprise Investment Limit

Rs. 25 Lakh.

SME sector enterprise investment limit

Rs. 5 Crores.

Export oriented small scale enterprise investment limit

Rs. 10 Crores.

Forum Member Reappointment

National Commission can reappoint the same person as its member.

Plan Holidays

The Intervening period between Third and Fourth Five year Plans.

Pre-Liberalization Era

India's economy was under the grip of Unfavorable and alarming Balance of payment.

Privatization of Public Enterprises

The popular route of disinvestment

Globalization

Describes the process of removal of restriction on Foreign Trade and Investment.

Privatisation

The credit goes to Peter Drucker.

Liberalization

Relaxing the restrictions and control imposed on business industries.

Consumer Protection Act, 1986 Time Limit

The time limit for filing a complaints before the District forum is Two Years.

Business Environment

Encompasses both internal and external factors that affect a company's operations.

PESTEL Analysis

A framework used to analyze the external macro-environment, including Political, Economic, Social, Technological, Environmental, and Legal factors.

SWOT Analysis

A strategic planning tool used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or business venture.

Denationalization

A privatization method where the government transfers ownership of a state-owned enterprise to private entities.

Franchising

A method of privatization where the government grants licenses to private companies to operate public services.

Economic System

The way a society organizes the production, distribution, and consumption of goods and services. Examples include capitalism, socialism, and mixed economies.

Monetary Policy

Actions undertaken by a central bank to manipulate the money supply and credit conditions to stimulate or restrain economic activity.

Fiscal Policy

Government spending and taxation policies used to influence the economy.

Privatization

The process of transferring ownership of a business, enterprise, agency, public service or public property from the public sector to the private sector.

Globalization

The increasing interconnectedness and interdependence of countries through flows of goods, services, capital, information, and people.

Liberalization

The removal or reduction of restrictions or barriers to trade, investment, and economic activity.