IMPORTANT QUESTIONS & ANSWERS
IGNOU MCOM
MCO 4 - BUSINESS ENVIRONMENT
UNIT - 1
1. What do you understand by business environment? Discuss its importance for the business.
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2. Distinguish between (a) Internal and external environment, and (b) micro and macro environment.
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3. Explain briefly the major components of business environment and their impact on business.
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4. Explain the concept and process of Environmental Scanning?
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UNIT - 2
1. How does socio-cultural environment affects business decision-making? Give a brief sketch of the nature of socio-cultural environment prevailing in India.
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2. Distinguish between
(a) Social Institutions and Social Groups
(b) Attitudes and Interests
(c) Social Values and Individual Values
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3. Define the term 'Social Systems' and discuss its main elements.
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4. Explain the dualistic character of the Indian economy.
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5. Enumerate the characteristics of consumerism and outline the development of consumer movement in India.
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UNIT - 3
1 Why should business be concerned with resolving social problems? Explain briefly, and state the benefits likely to be derived in the long run by socially responsive companies.
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2. Explain the nature of responsibilities of management towards (a) employees, and (b) community and the general pubic.
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3. "Protecting consumer interest is the primary responsibility of management". Do you agree with the statement? Elucidate.
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4. Explain the concept of social accounting and the various approaches adopted for social accounting and reporting.
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5. Write explanatory notes on :
(a) Social audit
(b) Social Cost-benefit Analysis
(c) Social Reporting.
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UNIT - 4
1. Explain the concept of political environment, and discuss how do the ideology of the political party in power and the political stability influence the business in a country.
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2. (a) State the problems that have stood in the way of uniform civil code in India.
(b) Enumerate the constitutional guarantees and safeguards protecting minority interest in India.
(c) Explain the significance of government role as a planner in a developing country like India.
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3 Distinguish between :
(a) Entrepreneurial and Promotional roles of government
(b) Direct and Indirect regulation of business
(c) Fundamental Rights and Directive Principles
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UNIT - 5
1. Why did it become necessary for the Government of India to change its regulatory polices in 1980 and again in 1991? Discuss.
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2. Explain, with justification, the relaxation of Government controls over foreign direct investment and technology imports.
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3. Outline the legal regulatory framework in India, and enumerate the main provisions of the basic business laws.
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4. Why were legislative enactments necessary for environmental protection ? Discuss the important provisions of the Environment (Protection) Act, 1986.
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UNIT - 7
1. State the composition of a Development Council under IDRA, 1951. What are its functions?
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2. What is an industrial license? Enumerate the circumstances under which it is necessary.
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3. What are the circumstances, under which the Central Government can take over the management of an industrial undertaking? What are the effects of such take over?
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4. What are the objectives MRTP Act, 1969 ? State the provisions of the MRTP Act, 1969 with respect to checking of concentration of economic power.
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5. What is meant by monopolistic trade practice? State the provisions of the MRTP Act with respect to checking of such practices.
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6. State the circumstances under which restrictive trade practice shall be allowed.
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7. Define 'unfair trade practice'. State the powers of the MRTP Commission with respect to unfair trade practices.
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8. Describe the composition and functions of Competition Commission of India. .
9. What are the rights conferred upon the consumers under the Consumer Protection Act, 1986? Explain.
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10. What and the complaints that can be filed before a consumer forum? Also state the appropriate forum for filing of complaints.
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UNIT - 8
1. State and explain briefly the safety provisions in the Factories Act for factory employees.
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2. What are the provisions of the Factories Act regarding working hours for adult workers ?
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3. What is the main purpose underlying the Minimum Wages Act, 1948 ? What is the role of the Advisory Boards in that context ?
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4. State the objects of the Industrial disputes Act, 1947, and the adjudication machinery set up for settlement of industrial disputes in India.
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5. Write explanatory notes on :
(a) Employees Provident Funds Scheme
(b) Employees Pension Scheme, 1995
(c) Payment of Gratuity
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UNIT - 9
1. What do you mean by money market ? Explain its importance for a modern economy.
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2. Outline the characteristic features of a developed money market.
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3. Discuss the main constituents of the Indian money market.
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4. Distinguish between :
(a) Repo and Reverse Repo
(b) Commercial Bill and Treasury Bill
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5. Write short notes on :
(a) Call Money Market
(b) Certificate of Deposits Market
(c) Money Market Mutual Funds
(d) Discount and Finance House of India.
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UNIT - 10
1. Define stock exchange and describe its key functions. .
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2. Discuss the importance of stock exchanges for (a) the investors, (b) the corporate sector, and (c) the society.
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3. What do you mean by listing of securities on a stock exchange ? State its advantages from the point of view of a company and an investor.
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4. Distinguish between
(a) Primary Capital Market and Secondary Capital Market
(b) Speculative Transaction and Investment Transaction
(c) Budla System and Equity Derivatives
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5. (a) Explain the depository system. (b) What do you mean by rolling settlement ? Explain it with the help of an example.
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6. What do mean by speculation? Do you consider it necessary for the success of stock exchange operations ? Give your views.
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7. Write short notes on the following
(a) Importance of Primary Capital Market
(b) Stock Exchanges in India
(c) IPO through Book Building Process
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UNIT - 11
1. "SEBI has been entrusted with the main responsibility to adopt suitable measures for protecting the interest of investors in securities and promoting the development and regulation of stock market". Discuss.
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2. What are the conditions required to be fulfilled by (a) a listed company and (b) an unlisted company to be eligible to make a public issue of shares as per SEBI Guidelines?
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3. State SEBI Guidelines in respect of following (a) Underwriting (b) Pre-issue advertisement (c) Differential pricing (d) Basis of allotment
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4. State the SEBI Guidelines with respect to promoters' contribution in a public issue of securities by (i) a listed company, and (ii) and unlisted company. Also state the lock-in requirement in respect thereof.
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5. List and state the nature of documents required to be filed by the lead manager with SEBI along with the offer document for a proposed public issue of securities.
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UNIT - 12
1. Discuss why investors' protection has become a matter of serious concern in recent times and outline the provisions of various laws and the role of SEBI in this regard.
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2. Explain briefly the concept of corporate governance, and enumerate its broad objectives.
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3. Discuss the main issues comprising renewed challenges of corporate governance with special reference to the recommendations of the Irani Panel.
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UNIT - 13
1. Why is Indian economy regarded an underdeveloped economy? State its basic characteristics.
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2. Distinguish between (a) Economic Growth and Economic Development (b) Financial Savings sand Physical Savings
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3. What were the objectives laid down in Industrial Policy Resolution of 1956 public sector ? How far had they been achieved ?
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UNIT - 14
1. "With increasing liberalization, planning in India has undergone significant changes". In the light of this statement analyze the main features of economic planning in India.
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2. "Economic Planning has assumed different forms in different countries. Hence three is hardly any agreement among economists on the concept and nature of economic planning". Elaborate on this statement.
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3. What is meant by export-led growth strategy? Why is the Mahalanobis development strategy no longer relevant to India's development efforts ?
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UNIT - 15
1. What do you mean by monetary policy ? Explain its main objective.
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2. Distinguish between the New Industrial Policy of 1991 and the Industrial Policy of 1956.
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3. What are the techniques employed by Reserve Bank of India to control the supply of money and credit ? How effectively were they used during the four decade period from 1951 to 1991 ?
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UNIT - 16
1. Outline the role of state level institutions in the development of small scale industries.
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2. Discuss the services provided by the following national level institutions for promotion and development of small industries in India. (a) SlDO (b) SISls (C) NSISIET (d) SIDBI
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3. Critically examine the government policy towards small scale industries.
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4. Explain the salient features of New Industrial Policy, 1991 for small scale industries.
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5. What are the various programmes and schemes that are initiated by the government for the development of small scale industries
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UNIT - 17
1. What do you mean by liberalization ? State the various factors that necessitated liberalisation of the economy in India.
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2. Discuss the various forms that privatization of public enterprises can take. Which one you consider as most effective ?
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3. What are the various steps taken by Government of India for globalisation of the lndian economy ? Do you have any suggestions to make in this direction.
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4. Discuss the impact of reform process on reducing poverty and growth of employment.
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UNIT - 19
1. Analyse the implications of globalisation as a policy for developing countries. What are the potential benefits and adverse effects of such a policy from the point of view of developing countries?
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2. State the basic principles incorporated in GATT for the realisation of its objectives. To what extent were these objectives realised?
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3. Discuss the functions and coverage of WTO as distinguished from GATT.
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4. Distinguish between positive and negative aspects of TRIMS. -What are the measures prohibited under the Agreement on TRIMS?
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5. State the various forms of intellectual property rights sought to be protected under the TRIPS agreement.
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6. Enumerate the salient features of the Indian Patents Act, 1970.
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7. Discuss the nature of amendments to the Patents Act 1970 which have been effected consequent upon Agreement on TRIPS.
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UNIT -20
1. Do you think that FDI is necessary for developing countries? Give your arguments and discuss the limitations of FDI.
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2. Do you think that India's FDI policy has been encouraging for foreign investors? Give your arguments and briefly discuss the policy.
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3. Write notes on : a) Forms of foreign capital; b) India's external debt.
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UNIT -21
1. What is meant by technology? Explain the factors underlying the dynamics of technological change.
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2. Discuss the reasons for the recognition of technological environment as an important dimension of business environment.
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3. Outline the rationale of technology transfer and its benefits to a developing country.
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