B.

com Degree examination November-2016

Business Environment (I semester)
Section A
a. Business environment consist of all those aspects of the surrounding of a business
enterprise which effect or influence its operations and decisions and which
determines its effectiveness.
b. Characteristics of modern business are: change, large scale, globalization,
technological orientation, diversification, information, government interference.
c. SWOT analysis is the strength and weakness of the company and opportunities
and threats in the environment.
d. Per capita income is the, income per head of the population
Per capita income = Total Nation Income/ Total number of people.
e. Fiscal policy is the policy under which government uses its expenditure and
revenue programs to produce desirable effects and avoid undesirable effects on
the nation income, production and employment.
f. Socialism is an economic system characterized by collective or state ownership of
all means of production and distribution, absence of private property and profit
motive, production for the welfare of the whole community etc.
g. MRTP= Monopolies and Restrictive Trade Practices. SEBI =Securities and
Exchange Board of India.
h. Components of social culture are environment, knowledge and beliefs, Ethics,
education, family authority, ambition or complacement.
i. Business ethics refers to the code of conduct which guides individuals in dealing
with others in the organization. It deals with moral duty and obligation and
behavior of individual.
j. Social Audit is a systematic evaluation of business organizations social
performance as distinguished from its accounting performance.
k. Features of technological environment are changing nature, widespread effect,
self reinforcing
l. Balance of payment is a statement containing the total values of imports and
exports of a country and the value of the difference between the two in a given
period of time.
Section B
2. Social objective of business 1. supply of qualitative goods and services
2. Reasonable price for the product
3. Employment opportunities 4. control of environmental pollution 5. Social welfare
of the society.
3. Fiscal policy objectives
1. removal of poverty and unemployment and under employment
2. optimum utilization of recourses, economical development and stabilization, social
justice or equity in distribution of income and wealth of the nation, Implementation of
LPG policy, removal of regional imbalance and disparities

4. planning role of govt

Govt adopted economic planning for achieving hogher growth rate and better
standard of leaving. Planning role of govt has following advantages
- proper allocation of resources of the nation, removal of differences between social
benefit and private benefit., Introduction of necessary reforms, acceleration of
economic growth process, to use of skilled manpower, capital, foreign exchange etc
5. Social responsibility of business factors are
- market forces, govt intervention, growth of trade union, emergence of professional
benefits and public security
6. Business is an integral part of the society system. It is an institution through which
people expected inventions and innovations to provide new goods and services that
give them more satisfaction at less cost. Business organizations pool the necessary
resources and work on the new technology and its innovations and inventions for the
production of new and useful products. Society depends upon the business institutions
to get the benefits of innovations and inventions for being materialized into useful
goods and services for the people.
7. Benefits of environmental study
- To determine long term plans and policies of the firm
- To develop action plans in order to deal with technological advancement
- to keep managerial, personnel, and dynamic
- to analyse competitors plan strategies and plocies
- to keep the business enterprise always alert and dynamic.
Section C
8. Macro environmental factors
- demographic forces on environement
- Economical forces
-Techological forces
- Fiscal force or natural environment
- Political and legal forces
9. Economic factors on business environment
- Growth strategy, basic economic system, economic planning, agriculture,
infrastructure, financial and fiscal sectors, removal of regional imbalance, price and
distribution, nation income and per capita income, human resource, industrial policy.
10. pros: 1. to achieve objectives of planning and to prevent occurrence of the
dangerous of free market economy
- to achieve economic objectives to fulfill the fundamental rights of the citizens
- to establish socialist pattern of society to develop commerce and industry
- to maximization of social welfare and optimum utilization of scared resources
- for economic development and growth

Cons: - because of govt control and regulations in economic activities of the people,
there is wastage of national resources
- Emergence of corruption in administration
- Corruption in politics
- Wastage of precious time in addition to the adverse effect on capital formation
11. objectives:
- To evaluate social dimension of company performance, to take major to improve
social performance of the company, to increase public visibility of the organization, to
boost the public image of the company
Features: - social impact such as
Consummation activities affecting environmental quality, it is process audit rather
than audit for results, difficult to audit social performance, it uses both quantitative
and qualitative data.
Obstacles: - it requires the time to gain wide appreciation and acceptance, well
defined methodology for conducting social audit is not yet available, difficult to
measure quantitatively social cost and benefits of different items, there is no common
agreement as to the items to be included in the social audit.
12. Technology refers to the body of skills, knowledge and procedure for making,
using and doing useful things
Economic effects of technology : -increased production and productivity interms of
both quality and quantity, jobs to become more intellectual or upgraded, problems on
techno-structure it is the problems of these technical graduates and engineers,
scientist, professional employees to retain in same organization or to motive them,
huge capital investment, need for bio professional and multiprofessional managers it
is degree in engineering and master of business administration., raise and fall of
products and organization, increased regulations by the govt and control on the
products of the technological industry, need to speed more and more on research and
development.
Compulsory question
a. it has reduced inflation rate and as controlled budgetary deficit
b. Transportation cost will reduce so that products are available at cheaper rate, it
helps company to reduce their operating cost,
c. Increased in automobile industry and sales of automobile products and creation of
employment opportunity