Business Environment
Differentiate between macro and micro environment with examples.
Macro = external forces like GDP, inflation; Micro = suppliers, customers.
Define business finance.
Key words should be included
Number of subordinates per manager- name the concept
Span of control
Managing public perception; builds trust and goodwill.- name the element
Public Relations
Differentiate between formal and informal communication channels in management.
Formal = official hierarchy; Informal = grapevine.
Give two examples each of economic and technological changes affecting Indian businesses.
Economic: GST, interest rate changes. Technological: AI, digital payments.
Name two long-term sources of finance.
Shares, debentures, retained earnings, long-term loans.
A firm’s plans failed because of sudden market changes. Identify the limitation of planning.
Planning may not work in a dynamic environment.
A product label hides critical safety warnings. Which right is violated?
Right to be informed & right to safety.
Settlement Type: Half-hourly batches (24×7 availability).- BANKING TREND
NEFT
Why business environment considered realtive? Explain with examples.
Explain it with examples
Credit from suppliers; helps maintain liquidity.
Trade Credit
Why is controlling called a backward-looking but forward-acting function?
Based on past data but guides future action.
A luxury watch company prices its products high to create exclusivity. Which element and strategy of marketing mix is this?
Pricing- value based
the process of assigning a selected candidate to a specific job that matches their skills, qualifications, and experience
Placement
Set of laws, rules, and regulations affecting business operations. are components of .....
Macro-Legal
Profits reinvested; Merit: cost-free; Limitation: limited availability.- Identify source
Retained Earnings
............ is a collaborative style where leaders involve team members in decision-making, seeking their input before making a final choice
Democratic
Distinguish between District, State, and National Consumer Commissions in terms of jurisdiction.
District ≤ ₹50L; State ≤ ₹2Cr; National > ₹2Cr.
A trainee works under the guidance of an experienced employee. Identify the training method.
Apprenticeship training.
After GST, a local manufacturer struggled to compete with larger firms. Identify which dimension of business environment caused this.
Economic and Legal
How does the trading on equity principle affect shareholders’ returns?
Use of fixed-cost debt magnifies returns if ROI > cost of debt.
Despite incentives, employees show low enthusiasm. Identify two possible communication barriers.
Semantic, Status
Apple sells through exclusive stores and authorised retailers. Identify the channel strategy and justify.
Selective distribution – maintains brand image and control.
A large retail chain expands rapidly through franchising. Within a year, quality standards decline, employees complain of inconsistent policies, and communication gaps widen across outlets.
Question:
Using Fayol’s and Taylor’s principles, analyse where management failed in planning, organising, and controlling. Suggest an integrated solution to restore uniform performance.
Violated unity of direction and standardisation (Taylor).
Weak coordination and span of control.
Corrective: establish centralised policy manuals, introduce performance metrics, strengthen supervision and feedback systems.