Category: CS Foundation

Planning – Business Management Ethics and Entrepreneurship Notes

→ Planning is a Rational Approach to Future:
Definitions:
Planning is forecasting and deciding in advance a course of action to be followed and activities to be pursued in future but mere forecasting is not planning. Planning is a rational approach to the future.

→ By Philip Kotler:
“Planning means deciding in the present what to do in the future. It is the process whereby companies reconcile their resources with their objective and opportunities.”

→ By George R. Terry:
“Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualisation and formulation of proposed activities believed necessary to achieve desired results”.

→ It is an all-pervasive and a fundamental function of management.

→ With the above definitions, it is very clear that planning involves deciding in advance what is to be done and where, how and by whom it will be done.

→ Planning is a mental work and includes looking in the future and forecasting on the basis of estimates available.

→ More important for higher level of management.

→ Merely ascertaining the future is not planning till it is followed by making provision for it.

→ Planning deals with future and forecasting management does not plan about past but guided by past performance.

Features of Planning:

• It is a primary function: Planning prevails at all the levels of management. It is thus the function of every manager.
• It is a continuous function: Because plans have to be revised in the light of changing environment and also different functions overlap each other, thus planning process has to be continuously repeated.
• Pervasive function: Planning pervades at all levels and all departments of an organisation. The planning horizons broaden and the implications of plans becomes wider as one goes up the level in the management hierarchy.

Importance of Planning:
Planning creates employees conscious of enterprises objectives:
Since the process starts with a clear definition of objectives of Individual department and organisation as a whole, the employees look at the organisation in its entirety which makes possible effective achievement of goals. Objectives represent endpoints of planning.

Planning leads to economy In operation:
It improves the effectiveness of all other functions of management and ensures coordinated functioning of efforts throughout the enterprise.
Planning for repetitive or routine matters reduces the need to revise the whole problem.

PlannIng precedes control:
Management function of control seeks to check the performance against some predetermined standards or projected course of action established through planning process. Control cannot exist without planning.

PlannIng provides a precIous managerial tool for the future:
It Is through this process that forecasting can be done about the future events and activities and a suitable course of action can be found on the basis of these forecasting results. Though forecasting is its essential characteristics, the task of planning does not end merely with assessing the future.

Planning influences the efficacy of other managerial functions:
Planning makes the task of managing more effective and improves efficiency of other functions of management.

Limitations of Planning

• Planning premises may not be fully reliable:
  Planning is always done on the basis of predictions. Since future is uncertain, planning is also subject to uncertainty.
• Rapidity of changesets another limit to planning:
  Rapid changes in business environment bring instability and makes the planning job more difficult.

Availability of time and cost involved:
During an emergency situation, decisions have to be taken without planning in advance. Such decisions may result in failure due to shortage of time period. Similarly, longer duration plans involve more cost. Greater are the details more will be the cost. Benefits expected to be derived from the planning should be more than the cost involved. Ascertaining the benefits & cost of planning is a difficult task.

Management and personnel philosophy – A serious limitation: Planning cannot be done with old philosophies of management or with their concepts and beliefs in mind. Since psychologically people are resistant to change they have to be convinced of the value of change.

Procedural and policy rigidities come in the way for planning: Policies and rules once established are difficult to change. Planning may call for a change in the existing procedures. When planning has to go through such rigidities, it becomes a difficult job.

Powerful Internal Constraint in Planning
Capital invested in the firm: Powerful internal constraint in planning. Managers develop a strong tendency to recovery of capital sunk as a result of some of their earlier decision that future planning is constrained and limited to its recovery.

External constraints
These can be:

• Labour unrest and policies regarding thereto;
• Government rules and regulations.

Types of Plans
Plans
Strategic Plan	Tactical Plan	Operational Plan
Long term plan 3-5 years/above involves competitive analysis, SWOT etc. to compet effectiveness. Top-level managers form and execute them.	Mid-term plan 1 to 3 years creates the blueprint for strategic plan. Middle managers consult with lower-level managers to develop the tactical plans.	Short term plan maximum 1 year covers the entire organisation’s goals & day to day operations. Lower-level managers consult with middle managers.

Strategic Plans: They identify & target internal goals but provide a general guidance on how they can be attained.

Types of Assessment:
1. Environmental Assessment – Environmental assessment is the assessment of the environmental consequences (positive and negative) of a plan, policy, program or actual projects prior to the decision to move forward with the proposed action. It helps the smooth functioning of strategic plan.

2. Operational Assessment – To assess the competitive implications of resources and capabilities relative to other environments, organizations must question four major factors, which are as fallows.

• A resource adds value
• A resource is rare to the extent
• Capability to create a degree of limit ability
• A firm must have to maintain its coordination and organisation
• Sustaining four elements given above is known as distinctive competence

→  Planning Components
They are usually defined as:
Organisation Mission: It is a statement distinguishing the organisation from others of its type and explains the fundamental reason for existence.
it can be written or may be implicit.

Purpose of mission statement

• It Is a benchmark for managers.
• It defines common purpose and foster loyalty among employees.
• It is a guideline and future direction fOE- outsiders.

Purposes:

• The purpose or mission is a definitive statement of the goals of the organisation that ¡t has to achieve.
• It shows the way the management works towards the achievement of goals.
• Fundamental & unique purpose that sets ¡t apart from other enterprises.
• Reflects belief and philosophy of management.

Objectives:
Objectives should be clearty laid down and effectively communicated to all the employees.

• They are the end results of any process undertaken in an organisation and should be properly balanced.
• All the objectives must be reviewed continuously in. the light of organisational changes.
• Objectives can be individualistic or collective, short term or long term, tangible or intangible, generator specific.
• Peter F. Drucker has laid down eight key areas.

Objective should be clearly defined and communicated

• Market standing
• Innovation
• Productivity
• Physical and financial resources
• Profitability
• Management performance and development
• Work performance and attitude
• Public responsibility

→  PolicIes:
Policies are of great help in delegating of authority of a manager.

• These help the managers during the decision making pcocess.
• Policies define the course of action that should be undertaken to determine present and future decisions.
• Every manager has the power to make policies foc his own area of worl but that should be within the limits of his authority.
• They should be flexible because rigid policies does not enable the employees to take further initiatives.
• Policies cari be written, verbal or implied.
• It may pertain to sales, production, personnel, finance and purchase on the functional basis.

Procedures, Methods & Rules:
1. A procedure includes the exact steps in which any task must be undertaken and specifies the chronological sequence for handling future activities.
2. Methods involve a specific step that has to be followed.
3. Rules means any kind of regulation from which no deviation is possible. It can be in favour of against the organisation.
4. Policy is a guide to thinking, procedures are guide to action.

→ Budgets:

• Is a single-use plan
• They are statements of expected revenue or losses of the organisation in numerical terms.
• They are prepared with a view to control the monetary activities of the enterprise so that they fall in line with the anticipated limits.
• Budget T making is a planning process, whereas its administration is a part of controlling.
• Budget is a statement of income and expenditure.

→  Programme:

• These are usually supported by budgets.
• These include a brief description of work to be carried out in a proper sequence in order to achieve the goals.
• Programme is a complex structure of policies, procedures, methods, rule, budgets and other assignments that can originate at any level in the organisation can be major or minor programmes.
• Outline of plan of work to be carried.

→  Strategy:

1. Strategy is an interpretative planning and very popular in military science. ,
2. Anthony defines strategies as “the process of deciding on objectives of the organisation, on changes in these objectives, on the resources used to attain these objectives, and on the policies that are to govern the acquisition, use and disposition of these resources.” „
3. Strategy means deciding upon the goals of the enterprise and then carving out a plan to achieve those goals.
4. They are a useful framework for guiding enterprise thinking and action.
5. Chandler defines strategy as, “the determination of the basic long term goals and objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary to carry out these goals.”

→ Steps Involved in Planning
Establishing Objectives:
Objective must be understandable & rational to make planning ‘ effective.

• The first and foremost step in planning is deciding the objectives of ihe enterprise.
• This means deciding what is to be done, the activities or results to be accomplished, the rules procedures or policies to be laid down.
• Objectives of the enterprise must be very clear so as to enable easy achievement of goals.

→  Premising:
1. Premises means the assumptions or future setting within which the planning takes place. Planning is always done for the future and thus assumptions are required because there is no certainty about the activities that will take place in future. All assumptions are not premises.

2. Selection of premises involves skills and experience of the people involved.

3. Premises are not always same for all the industries.

4. (a) Premises can be internal or eyWnal to the firm. Internal premises may include sale forecast, capita! investment or programmes and policies that has been laid down by the management, External premises can be categorised as socio-economic, product market and factor market. Possible to quantify into rupee term.

(b) Premises can also be tangible or intangible. An example of intangible premises is goodwill of a company. An e.g. of tangible premises is when it is possible to quantify in terms of rupee.

(c) The other type of premises are controllable, uncontrollable and semi controllable.

Controllable prem Eses are already pre-decided by the management. Whereas uncontrollable premises are absolutely beyond the control of enterprise and prermses that can be modulated and controlled are semi-controllable.

→ Determining Alternative Courses:
Alternative courses of action must always be identified so that the management can resort to these alternatives in case the planning fails due to unforeseen circumstances.

→ Evaluation of Alternatives:

• In case more than one alternatives are available, the manager must evaluate all the alternatives on the basis of their strong or weak points and considering the other factors involved.
• This evaluation is a must to arrive at a decision.

→ Selecting a Course of Action:
This step involves choosing the best alternative from amongst those available.

→ Formulating Derivative Plan:

• To give effect to and make the final plan work a derivative plan is required.
• Every manager and department should contribute to the accomplishment of final plan on the basis of derivative plans.

→ Numbering Plans by Budgeting:
Plans should be made workable by allotting them their respective values by converting them into budgets.
Thus, the process of planning can be divided into 3 stages premising, forecasting and decision-making.

→ Factors influencing Goal Commitment

• Effective use of goals requires getting individuals and or workgroups to be committed to goals they must carry out.
• It is one’s attachment to, or determination to reach a goal.

→ Supervisory Authority:

• Goals may be assigned by supervisor who explains the reasons for the goals to the staff and gives needed instructions.
• A supportive supervisor will be more effective than an authoritative one.
• A supervisor must encourage and offer opportunities,

→ Peer and Group Pressure

• This builds goal commitment by focusing everyone’s efforts.
• Successful individuals act as role models but if goals are seen as unfair, peer and group pressure can cut goal commitments.

→ Public Display
Commitment may be greater too difficult goals with public commitment rather than private.

→ Expectations of Success

1. It individuals have high expectations of success then they might be more committed.
2. If they think they cannot accomplish the tasks, commitment to the goal is less likely.

→ Incentives and Rewards:

• During goal setting, incentives may be offered.
• Incentives are of two types-tangible and intangible.

→ Tangible – money.
Intangible – Job challenge and recognition of goal achievement.
Positive outcomes may foster commitment but negative ones may inhibit commitment.

→ Participation

• Where the individual participates in goal setting, commitment will be stronger.
• Participation aids in plan development for goal implementation.

Managers should include subordinate in goal setting and then in planning how to achieve those goals.

→ Planning Period:

• Plan can be made either for long-range or intermediate-range or short range.
• The planning period should be such that involves flexibility in the plan.
• Short-range plans must not be made in a haste or depending upon the current situation. They should always be made keeping in mind the long-range plans.
• Promoting on novation: The role of planning process.
• Potential obstacles to planning.
• Overcoming obstacles to planning.
• “Commitment Principle implies that long-range plans are not really for future but for the future impact of today’s decision.”
• Commitment principle considered in the light of ‘flexibility principle’ of planning. Which means plans must have an ability to change direction.
• A manager periodically checks on events and expectations and redraws plans as necessary to maintain a course towards a desired goal, is called principle of navigational change.

→ Promoting Innovation: The role of planning process

• An organisations view of innovation may come from the highest levels.
• The CEO sees a future based on innovation and will communicate this to organisation members.
• Goals can encourage innovation by having new ideas incorporated into goals.
• Plans can also achieve goals by using innovative means in order to achieve stated goals.

→ Potential obstacles to Planning:

• A rapidly changing environment may make planning harder.
• Some manager may not believe in planning at all.
• The manager’s daiiy work schedule pressures may distract from planning.
• Some managers have poor planning knowledge and skills.
• There may be low managerial involvement which may reduce effective planning.

→ Overcoming obstacles to Planning

• Have top management shown strong support for the planning process.
• Have lower-level managers engaged in and supported planning.
• Increase training of staff in how to develop plans.
• Managers should review plans often.
• Managers should develop contingency plan.

→ Decisions lie at the core of planning
The plans should be as flexible as possible. The more flexible is the, plan lesser will be the danger of losses to be incurred due to unforeseen events. This is also called the ‘Principle of navigational change.

→ Concept of forecasting:

• It means identifying and defining the conditions in future which will help in planning the work in the present.
• It may be comprehensive or limited in scope. Since forecasting always involves some amount of guesswork, managers preparing such forecasts must-have skill and experience.

→ Steps in Forecasting:
IdentIfying end Developing the Structure:
It involves the following steps:

• Identity strategic factors that are important for the forecast.
• Analyse internal and external factors and relations between them.
• Analyse the trend of each of such factors.

→ Forecasting Future Course of Business:

• Statistical and other mathematical techniques are used for protecting future business.
• The experience, clairvoyance and participation of management are important determinants of the quality of forecast.

→  Analysis of Deviations:

• The actual resuhs should be analysed along with the differences with the forecasted one.
• The reason for the deviation Is then analysed and corrective action is taken for future forecasting.

→ Improving the Existing Forecasting Procedure;
Guesswork should be gradually reduced and substituted by rational judgement and systematic analysis. Skill in forecasting is largely gained through experience and practice.

→  Advantages of Forecasting

• Plans the synthesis of various forecasts-annual, short-term, long-term
• It helps the management to arrive at a correct decision.
• It helps the management to use better control techniques by focusing on areas where there is less control.
• It facilitates team spirit in the organisation which helps planning and coordination.
• It prepares the management to handle a critical situation that wasn’t expected.
• Fayol referred to planning as synthesis of various forecasts annual, long term, short term, special etc.

Forecasts are based on postulations and assumptions and as such, are subject to sanie amount of guesswork.
PossIbility of error cannot be completely eliminated from forecasts.

→ Concept of Decision Making:

• DecIsion-making permeates planning, organizing, controlling and all other functions of management.
• It involves selection of the best course of action from those available,
• It is one of the most Important functions of management since entire success or failure of the enterprise depends upon Its decision.
• It is because of this reason, decision should be based on a careful study of the facts available.

Decision-making as a rational process should be based on systematic analysis of all pertinent facts and not guided by intuitions.

→ Principles of Decision Making:
Principle of Definition:
1. It involves the basic fact that a problem well defined Is half solved.
2. A good description of problem reduces managers time and effort to find a correct decision.

→ Principle of Evidence:
Since decision making is one of the most important aspect of an organisation, it must be backed by concrete working papers and documents which serve as an evidence. Decision should not be taken hastily.

→  Principle of Identity:

• A situation is viewed differently by different people.
• Therefore, before taking a decision views of all the people along with the time period when such situation occurred should also be considered.
• This will help in better understanding of the problem and making quality decisions.

→ Decision-Making Conditions:
The 3 possible conditions are:

Certainty:

• This arises when the decision-maker knows exactly what will happen.
• Under this situation, the manager exactly knows the outcome because of the certainty involved in taking the decision.

Risk:

• This condition is most common and widely prevails in most of the organisations.
• Under this situation, only a part of the information is available and hence the decision-maker has to make an estimate of the outcome.
• This estimate is based on his past experience of the same situation.
• To enable managerial success in taking decision. There should always be some amount of risk-taking ability.
• If probability estimates are assigned to expected outcomes on the basis of past experience, it is known as objective probability.
• If the probability estimates are assigned on the basis of how an individual feels about, the problem (gut feel) then it is called subjective probability.
• Decision-makers could be risk takers or risk avengers.

Uncertainty:

• Under this situation, the decision-maker cannot estimate the outcome of various alternatives.
• Here the outcome is uncertain, hence decision making is difficult.

Steps in Decision Making
Identifying and Diagnosing the Real Problem:

• Past acts and decisions, predetermined objectives and environmental considerations provide the structure for current decisions.
• Manager must know the gap between what exists and what is expected to happen.
• Identifying the reasons for the gap and understanding the problem results in higher achievement of objectives.

→  Discovery of Alternatives:

• Manager should search for the alternatives that would help him in making decisions.
• Only the key factors or factors critical .for the decision should be considered.
• It also has principle of limiting factor, i.e. management should limit itself to the discovery of those key factors which are critical or strategic to the decision involved.
• It is described as a search of strategic factor.

Decision-making as a rational process should be based on systematic analysis of all pertinent facts and not guided by intuitions.

→ Principles of Decision Making
Principle of Definition:
1. It involves the basic fact that a problem well defined is half solved.
2. A good description of problem reduces manager’s time and effort to find a correct decision.

Principle of Evidence:
Since decision making is one of the most important aspect of an organisation, it must be backed by concrete working papers and documents which serve as an evidence. Decision should not be taken hastily.

→ Principle of Identity:

• A situation is viewed differently by different people.
• Therefore, before taking a decision views of all the people along with the time period when such situation occurred should also be considered.
• This will help in better understanding of the problem and making quality decisions.

→ Decision-Making Conditions:
The 3 possible conditions are:
Certainty:
1. ThIs arises when the decision-maker knows exactly what will happen.
2. Under this situation the manager exactly knows the outcome because of the certainty involved in taking the decision.

• Risk:
• This condition is most common and widely prevails Fri most of the organisations.
• Under this situation, only a part of the information is available and hence the decision-maker has to make an estimate of the outcome.
• ThIs estimate ¡s based on his past experience of the same situation.
• To enable managerial success in taking decisions. There should always be some amount of risk-taking ability.
• If probability estimates are assigned to expected outcomes on the basis of past experience, it is known as objective probability.
• If the probability estimates are assigned on the basis of how an individual feels about the problem (gut feel) then it is called subjective probability.
• Decision-makers could be risk takers or risk avengers.

Uncertainty:
1. Under this situation, the decision-maker cannot estimate the outcome of various alternatives.
2. Here the outcome is uncertain, hence decision making is difficult.

→ Steps In Decision Making
identifying and Diagnosing the Real Problem:

• Past ats and decisions, predetermined objectives and environmental considerations provide the structure for current decisions.
• Manager must know the gap between what exists and what is expected to happen.
• Identifying the reasons for the gap and understanding the problem results In higher achievement of objectives.

→  Discovery of Alternatives:

• Manager should search for the alternatives that would help him in making decisions.
• Only the key factors or factors critical for the decision should be considered.
• It also has principle of limiting factor, i.e. management should limit itself to the discovery of those key factors which are critical or strategic to the decision involved.
• It is described as a search of strategic factor.

→ Analysis and Evaluation of Available Alternatives:

• Once all the alternatives have been identified, the next step is the selection of the best alternative.
• Management should consider the risk involved in choosing amongst the available alternatives.
• Both tangible and intangible factors must also be considered. For e.g.- profit, time, money, public relations, morale etc.
• The techniques of. marginal analysis can be used for the evaluation of alternatives.
• Alternatives should be selected on the basis of cost-effectiveness.

→ Selection of Alternative to be followed:
(a) This is mainly done on the basis of past experience. But changes in the circumstances must always be kept in mind, before taking a decision in the present situation.

(b) Selection on the basis of experiments: Experimentation as the basis for final decision has the advantage of incorporating intangible factors and also the environmental changes. But it is the most expensive of the techniques.

(c) Research as the basis for decision: A number of research approaches and techniques have been developed which are contributing to the research as the basis for decision. Break-even analysis, marginal contribution analysis, forecasting, capital budgeting, standard costing, sensitivity analysis, operations research etc. are currently in use in the field of decision making.

→ Communication of Decision:
(a) Management should take into account the attitude and prejudices of the people in the organisation.

Hierarchy of Decisions:
The manager should determine the importance of each decision in forms of its commitment, scope and risk involved.
Less important decision can be based on simple analysis whereas important decisions must be made after a thorough analysis of all the related factors.

Nature of Management and its Process MCQ Questions

1 ……………….. is deciding in advance the course of action to be followed.
(a) Organising
(b) Direction
(c) Controlling
(d) Planning
Answer:
(d) Planning

2. ……………….. represents the end point of planning.
(a) Goals
(b) Strategies
(c) Objectives
(d) None of the above
Answer:
(c) Objectives

3. Strategic plans target …………………. but provide a brief guidance on how to achieve them.
(a) External goals
(b) Internal goals
(c) Organisational objectives
(d) None of the above.
Answer:
(b) Internal goals

4. …………………. reflects belief and philosophy of management.
(a) Objectives
(b) Purposes/Mission
(c) Goals
(d) Rules
Answer:
(b) Purposes/Mission

5. Which qualities should a person possess while planning?
(a) Reflective thinking
(b) Imagination
(c) Farsightedness
(d) All of the above.
Answer:
(d) All of the above.

6. Only economists & technicians employed by the management as staff experts are involved in making forecasts.
(a) True
(b) False
(c) Partly True
(d) Partly False.
Answer:
(b) False

7. Policies must be rigid and should not allow discretion on the part of subordinates.
(a) True
(b) False
(c) Partly True
(d) Partly False
Answer:
(b) False

8. ……………….. specifies the manner of doing work, i.e. sequence for handling future activities.
(a) Rules
(b) Method
(c) Procedures
(d) Programme.
Answer:
(c) Procedures

9. Which amongst the following is rigid and specific & cannot be changed?
(a) Methods
(b) Procedures
(c) Policies
(d) Rules.
Answer:
(d) Rules.

10. ……………………. is supported by capital revenue & expense budgets.
(a) Programme
(b) Strategy
(c) Goals
(d) Policies.
Answer:
(a) Programme

11. Method of evaluation of various alternatives are:
(a) Basis of cost-effectiveness
(b) Marginal analysis
(c) Risk involved and resources available
(d) All of the above
Answer:
(d) All of the above

12. Second step of planning process is the establishment of:
(a) Planning premises
(b) Objectives
(c) Goals to be achieved
(d) All of the above
Answer:
(a) Planning premises

13. Planning Premises can be …….. .
(a) Internal
(b) External
(c) Tangible
(d) All of the above
Answer:
(d) All of the above

14. Quality of forecasts depends upon:
(a) Experience
(b) Clairvoyance
(c) Participation of management
(d) All of the above.
Answer:
(d) All of the above.

15. The possible condition for decision making would be:
(a) Certainty
(b) Risk
(c) Uncertainty
(d) All of the above.
Answer:
(d) All of the above.

16. While planning for expansion ……………….. might be the limiting factor.
(a) Availability of finance
(b) Availability of trained staff
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

17. Certainty, risk and uncertainty are the three possible conditions of:
(a) Decision making
(b) Planning
(c) Risk management
(d) None of these.
Answer:
(a) Decision making

18. Planning provides for the future.
(a) Managerial tools
(b) Goals
(c) Strategic Plans
(d) Business Plans
Answer:
(a) Managerial tools

19. Planning is fully reliable.
(a) True
(b) False
(c) Can’t say
(d) None of the above
Answer:
(b) False

20. Government rules and regulations are constraints,
(a) External
(b) Organisational
(c) Internal
(d) All of the above
Answer:
(a) External

21. ……………………… helps the managers during the decision making process.
(a) Budget
(b) Strategies
(c) Programme
(d) Policies
Answer:
(d) Policies

22. Every manager has the power to make policies but within the limits of his authority.
(a) False
(b) True
(c) Partly True
(d) Partly False
Answer:
(b) True

23. …………………….. helps the management to arrive at a correct decision.
(a) Planning
(b) Forecasting
(c) Decision Making
(d) Experience
Answer:
(b) Forecasting

24. Which of the following are Principles of Decision making?
(a) Principle of definition
(b) Principle of evidence
(c) Principle of Identity
(d) All of the above
Answer:
(d) All of the above

25. …………….. arises when the decision-maker knows exactly what will happen.
(a) Risk
(b) Certainty
(c) Uncertainty
(d) Both (a) and (b)
Answer:
(b) Certainty

26. “Planning is the selecting and relating of fact.? and the making and using of assumption regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results”. This is given by:
(a) Philip Kotler
(b) Buyers and Rue
(c) Kasts & Rosenzweig
(d) George R. Terry
Answer:
(d) George R. Terry

27. Which one is not a feature of Planning?
(a) Planning is Positive
(b) Primary Function
(c) Intellectual Process
(d) Pervasive Function
Answer:
(d) George R. Terry

28. Which one of the following is not an importance of Planning?
(a) Planning makes personal conscious of enterprise objectives.
(b) Planning proceeds direction.
(c) Planning leads to economy in operation.
(d) None of the above.
Answer:
(b) Planning proceeds direction.

29. Which function of management cannot exist without planning?
(a) Organising
(b) Directing
(c) Controlling
(d) Staffing
Answer:
(c) Controlling

30. Which one of the following is not the limitation of planning?
(a) Rapidity of changesets another limit to planning
(b) Planning premise may not be fully reliable.
(c) Procedural and policy rigidities also come in the way of planning.
(d) Planning is applicable in every level.
Answer:
(d) Planning is applicable in every level.

31. Which type of plan describes the goals of an internal organization, a working group or a department?
(a) Project Plans
(b) Strategic Plans
(c) Operational Plans
(d) Marketing Plans
Answer:
(c) Operational Plans

32. Which of the following is a formal statement of business plans?
(a) Largely enforced business goals.
(b) The reason why they are believed attainable
(c) The plan for reaching those goals
(d) All of the above.
Answer:
(d) All of the above.

33. Objective can be:
(a) Individualistic or collective
(b) Short-term or long term
(c) Tangible or Intangible
(d) All of the above
Answer:
(d) All of the above

34. Which one signify some kind of regulation, positive or negative & permit no discretion in its application?
(a) Procedures
(b) Rules
(c) Strategy
(d) Methods
Answer:
(b) Rules

35. Who defines strategies as “the process of deciding on objectives of the organization, on changes in these objectives, on the resources used to attain these objectives and on the policies that are to govern the acquisition, use and disposition of these resources”.
(a) Chandler
(b) Buyers & Rue
(c) Anthony
(d) None of these
Answer:
(c) Anthony

36. Which is a complex structure of policies, procedures, methods, rules, budgets & other assignments?
(a) Strategy
(b) Programme
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Programme

37. ‘TDCI’ Stands for:
(a) Technological Development Corporation of India.
(b) Trade Development Corporation of India.
(c) Tourism Development Corporation of India
(d) None of these.
Answer:
(c) Tourism Development Corporation of India

38. What is the duration of Planning Period?
(a) Long-range
(b) Intermediate-range
(c) Short-range
(d) All of the above.
Answer:
(d) All of the above.

39. Forecasting is done by which level of management?
(a) Top level
(b) Middle level
(c) Lower level
(d) None of these
Answer:
(a) Top level

40. Which of the following is the ‘Decision Making Condition’.
(a) Certainty
(b) Uncertainty
(c) Risk
(d) All of the above.
Answer:
(d) All of the above.

41. According to George R. Terry is the selecting & relating of facts.
(a) Organising
(b) Directing
(c) Controlling
(d) Planning
Answer:
(d) Planning

42. Planning is a mental work and includes …………………. on the basis of estimates available.
(a) Looking
(b) Forecasting
(c) Direction
(d) Controlling
Answer:
(b) Forecasting

43. The first stage in Planning is the deliberate statement of ……………….. .
(a) Organization
(b) Objectives
(c) Direction
(d) Controlling
Answer:
(b) Objectives

44. Planning is always done on the basis of
(a) Instability
(b) Mental work
(c) Predictions
(d) Goals
Answer:
(c) Predictions

45. Types of plans are:
(a) Two
(b) Four
(c) Eight
(d) Five
Answer:
(d) Five

46. Plans defines the working goals of an International organization,
(a) Operational
(b) Marketing
(c) Project
(d) Business
Answer:
(a) Operational

47. Plans which identify & target internal goals.
(a) Project
(b) Marketing
(c) Strategic
(d) Operational
Answer:
(c) Strategic

48. They are statement of expected revenue or losses of the organisation,
(a) Programme
(b) Budget
(c) Policies
(d) Strategy
Answer:
(b) Budget

49. Who defines a strategy as “adaption of courses of action & allocation of resources necessary to carry out these goals”.
(a) Anthony
(b) George R. Terry
(c) Faraday
(d) Chandler
Answer:
(d) Chandler

50. ………………… Premises are those that are largely decided by company management.
(a) Controllable
(b) Uncontrollable
(c) Semi controllable
(d) All of these
Answer:
(a) Controllable

51. …………….. is a must to arrive at a decision.
(a) Evaluation of Alternatives
(b) Determining Alternative Courses
(c) Premising
(d) Objective
Answer:
(a) Evaluation of Alternatives

52. It means identifying & defining the condition in future which will help in planning.
(a) Objective
(b) Controlling
(c) Forecasting
(d) All of these
Answer:
(c) Forecasting

53. What are not the advantages of forecasting.
(a) It helps the Management to arrive at correct decision
(b) It helps the Management to use better techniques
(c) It. increases the guess-work
(d) It facilitates team spirit in organization.
Answer:
(c) It increases the guess-work

54. Who referred to Planning as “synthesis of various forecasts”.
(a) Fayol
(b) Chandler
(c) George R. Terry
(d) Anthony
Answer:
(a) Fayol

55. Discovery of limiting factors is important to the process of
(a) Identifying
(b) Decision making
(c) Diagnosing
(d) Managing
Answer:
(b) Decision making

56. Research techniques currently used in decision making is-
(a) Forecasting
(b) Standard costing
(c) Capital budgeting
(d) All of these
Answer:
(d) All of these

57. While planning for expansion, might be the limiting factor.
(a) Availability of finance
(b) Availability of trained staff
(c) Both (a) & (b)
(d) None of above
Answer:
(c) Both (a) & (b)

58. Example of decision making by group is:
(a) Conferences
(b) Committees
(c) Office meeting
(d) All of these
Answer:
(d) All of these

59. Disadvantage of decision making by groups:
(a) Improves the quality of decisions
(b) Many member evade their individual responsibility
(c) It is a time-consuming affair
(d) Both (b) & (c)
Answer:
(d) Both (b) & (c)

60. Quality of Decisions will be better if the variables are:
(a) Unquantifiable
(b) Ambiguous
(c) Certain
(d) Quantifiable
Answer:
(d) Quantifiable

61. Which qualities should a person possess to succeed in planning.
(a) Reflective thinking
(b) Imagination
(c) Farsightedness
(d) All of the above.
Answer:
(d) All of the above.

62. Strategies show a direction.
(a) Undefined
(b) Well defined
(c) Unified
(d) Parallel
Answer:
(c) Unified

63. ………………… refers to outline of plans of work to be carried out in a pfopei sequence.
(a) Programme
(b) Budget
(c) Organising
(d) None of these
Answer:
(a) Programme

64. Programme is a complex structure of:
(a) Rules
(b) Budget
(c) Methods
(d) All of these
Answer:
(d) All of these

65. Budget may be expressed in:
(a) Non-materials
(b) Money
(c) Numerical expression
(d) Both (b) & (c)
Answer:
(d) Both (b) & (c)

66. These are business plans that have changes in perception and branding as their primary goal.
(a) Marketing
(b) Project
(c) Operational
(d) Strategic
Answer:
(a) Marketing

67. Management is a process.
(a) Static
(b) Dynamic
(c) Both (a) & (b)
(d) None of these
Answer:
(b) Dynamic

68. Which of these contribute to accomplishment of group goals.
(a) Staffing
(b) Direction
(c) Control
(d) All of these
Answer:
(d) All of these

69. After plans are set, the final step to give them meaning is to numberise them by.
(a) Procedures
(b) Budget
(c) Planning
(d) Rules
Answer:
(b) Budget

70. Forecasts may be:
(a) Comprehensive
(b) Unlimited
(c) Limited
(d) Both(a) & (c)
Answer:
(d) Both(a) & (c)

71. Possibility of error cannot be completely eliminated from
(a) Planning
(b) Forecasts
(c) Organising
(d) All of these
Answer:
(d) All of these

72. Which one of the following reflects the belief and philosophy of management in an organisation?
(a) Vision
(b) Mission
(c) Objectives
(d) Goals.
Answer:
(b) The mission of a business is the fundamental unique purpose that sets it apart from other enterprises of its type and identifies the scope of its operations in terms of product and market. The mission is a general enduring statement of the intent of business. It reflects the belief and philosophy of management.

73. In an organisation, policymaking is the function of:
(a) Management
(b) Administration
(c) Personnel Management
(d) Government.
Answer:
(b) In an organisation, admInistration is concerned with policy-making whereas management with policy implementation.

74. ………………… is a primary function.
(a) Controlling
(b) Planning
(c) Co-ordination
(d) Organisation.
Answer:
(b) Planning is an all-pervasive and a primary funchon of management. No manager, irrespective of the position In the organisation can do without it. However, planning ¡s subject to certain limitations and proper understanding of them will go a long way in improving efficiency of planning.

75. Which one of the following deals with future and involves forecasting?
(a) Planning
(b) Organising
(c) Controlling
(d) Leadership
Answer:
(a) Planning deals with future and involves forecasting. A manager does not plan about the past though in his planning for future he is also guided by past performance. Since planning relates activities of the enterprise to its future environment, it requires projecting future activities of the organisation.

76. Premises signify …………….. within which planning will take place.
(a) Planning assumptions
(b) Planning deviations
(c) Planning resources
(d) None of the above.
Answer:
(a) Premises signify planning assumptions within which planning will take place.

77. Which one of the following is the first and primary step in the planning process?
(a) Premising,
(b) Determining alternative courses,
(c) Evaluating alternatives
(d) Establishing objectives.
Answer:
(d) The first and primary step in planning process is the establishment of planning objectives or goals. Definite objectives, in fact, speak categorically about what is to be done, where to place the initial emphasis and things to be accomplished by the network of policies, procedures, budgets and programmes, the lack of which would invariably result in either faulty or ineffective planning.

78. Planning may call for a change in the existing –
(a) Accounting Concepts
(b) Government Mandates
(c) Governance Standards
(d) Procedures and Policies.
Answer:
(d) Procedures, rules and policies once established are difficult to change. But on the other hand, planning may call for a change in the existing procedures and policies.

79. Budget preparation is primarily a planning process whereas its administration is a part of –
(a) Implementation
(b) Controlling
(c) Payments
(d) Approval process.
Answer:
(b) Budget is an important control device. It is often thought of in connection with controlling alone. However, budget-making is primarily a planning process whereas its administration is a part of controlling.

80. Which of the following is incorrect about strategy?
(a) It helps in competitive market
(b) It is innovative
(c) It is creative
(d) It gives long-term process guarantee.
Answer:
(d) Strategy helps us to enter in the competitive market, it is innovative, it is creative but it doesn’t give guarantee for long-term process as in long-term strategy requires changes with change in conditions.

81. ………………… is a single-use plan containing expected results is numerical terms.
(a) Procedures
(b) Methods
(c) Rules
(d) Budget.
Answer:
(d) Budget is a single-use plan containing expected results in numerical terms. They are statements of expected revenue or losses of the organisation in numerical terms.

82. It is the general enduring statement of the extent of business –
(a) Objectives
(b) Policies
(c) Mission
(d) None of the above.
Answer:
(c) Mission is a general enduring statement of the intent of business. It reflects the belief and philosophy of management. It is the unique purpose that sets if apart from other enterprises and identifies the scope of its operations.

83. Discovery of is important to the process of decision making.
(a) Unlimited factors
(b) Co-ordination
(c) Integrity
(d) Limited factors.
Answer:
(d) Discovery of Limited factor is important to the process of decision making, that its management should limit itself to the discovery of those key factors which are critical or strategic to the decision involved.

84. “Planning reconcile their resources opportunities” is given by –
(a) Chester I Barnard
(b) George R Terry
(c) Philip Kotler
(d) Peter. F. Drucker
Answer:
(c) According to Philip Kotler: “Planning means deciding in the present what to do in the future. It is the process whereby companies reconcile their resources with their objectives and opportunities”.

85. Strategy was primarily used in:
(a) Military Science
(b) Practical Science
(c) Political Science
(d) None of these
Answer:
(a) Strategy is a term very popular in military science. It refers to meeting the enemy under conditions advantageous to one’s own.

86. Which of the following is a single-use plan containing expected results in numerical terms?
(a) Budget
(b) Policies
(c) Procedures
(d) Rules.
Answer:
(a) Budget is a single-use plan. They are statements of expected revenue or losses of the organisation in numerical terms.

87. The process of decision making involves several steps that can be divided into distinct categories. The solution phase involves
(a) Acquiring information
(b) Diagnosing the factors affecting the problem or opportunity
(c) Identifying a problem or opportunity
(d) Implementing the decided course of action.
Answer:
(d) The process of decision making involves several steps:

• Acquiring Information about the problems.
• Identifying a problem or opportunity.
• Diagnosing the factors affecting the problem or opportunity.
• Discovery of Alternatives.
• Analysis and Evaluation of Alternatives.
• Selection of the Best Alternatives.

So, the solution phase involves implementing the decided course of action.

88. Decisions that have long-term perspectives of two to five years and affect the entire organisation are:
(a) Programmed decisions
(b) Tactical decisions
(c) Strategic decisions
(d) Operational decisions.
Answer:
(c) Strategic decisions have long term perspective of two to five years and affect the entire organisation.

89. In the organisation ………………. has both short term and long term:
(a) Vision
(b) Mission
(c) Objective
(d) None of the above.
Answer:
(c) The first important task of planning is to lay down objectives or goals. Objectives represent the end towards which not only planning but all other activities of management are directed. Objectives can be individualistic or collective: Short term or long term, tangible or intangible, general or specific.

90. What is the main function of management?
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
Answer:
(a) Planning is an all-pervasive and fundamental function of management. All other functions of organizing, staffing, directing and controlling must reflect planning function of management. Thus, planning is the main function of management.

91. It involves looking ahead and projecting the future course of events:
(a) Organizing
(b) Forecasting
(c) Controlling
(d) Co-ordination
Answer:
(b) Forecasting may be defined as analysis and interpretation of the future conditions in relation to operation of the enterprise. It involves looking ahead and projecting the future course of events.

92. Out of the given option, the final step in the decision-making process is:
(a) Choosing best alternatives among a set of alternatives ‘
(b) Identifying problems
(c) Resolving problems
(d) Deciding alternatives for a problem.
Answer:
(c) The final step in the decision-making process is resolving problem and thereby communicating of decisions and its acceptance by the organísatiofl after identifying the problem, deciding alternatives for problems, choosing best alternative among a set of alternatives.

93. By Planning premises we refer to:
(a) Guide to thinking in decision making
(b) A single operation of one particular step and specifies how this step is to be followed.
(c) The exact manner in which a particular activity is to be done
(d) The forecasting and assumption about the future.
Answer:
(d) Planning premises signifies planning assumptions or future setting within which planning will take place. The very nature of planning requires that some assumptions be made regarding future happenings.

94. When the availability of each alternative and its outcomes are associated with probability estimates, decisions are being made under a condition of:
(a) Uncertainty
(b) Risk
(c) Certainty
(d) Conflict.
Answer:
(c) The final step in the decision-making process is resolving problem and thereby communicating of decisions and its acceptance by the organisation after identifying the problem, deciding alternatives for problems, choosing best alternative among a set of alternatives.

95. The most appropriate definition of a “Procedure” is:
(a) It suggests the exact manner in which a particular activity is to be done.
(b) It signifies some kind of regulation, positive or negative and permits no discretion in its application.
(c) It is a single-use plan containing expected results in numerical terms
(d) It involves a single broad guideline for decision making.
Answer:
(d) Planning premises signifies planning assumptions or future settings within which planning will take place. The very nature of planning requires that some assumptions be made regarding future happenings.

96. Which of the following is not considered to be a part of the planning function of a manager?
(a) Mapping out strategy
(b) Motivating
(c) Making decisions
(d) Defining goals
Answer:

97. When the availability of each alternative arid its outcomes are associated with probability estimates, decisions are being made under a condition
(a) Uncertainty
(b) Risk
(c) Certainty
(d) Conflict.
Answer:
(b) Risk: Most of the managerial decisions are made under risk conditions, that is, some information is available but it is insufficient to answer all questions about the outcomes, so a decision-maker has to make probability estimates of these outcomes.

98. The most appropriate definition of a procedure M is:
(a) It suggests the exact manner In which a particular activity is to be done.
(b) It signifies some kind of regulation, positive or negative and permits no discretion in its application.
(c) It is a single-use plan containing expected results in numerical terms
(d) It involves a single broad guideline for decision making.
Answer:
(a) Procedure suggest the exact manner in which a particular activity is to be done. It specifies the chronological sequence for handling future activities.

99. Which of the following is not considered to be a part of the planning function of a manager?
(a) Mapping out strategy
(b) Motivating
(c) Making decisions
(d) Defining goals
Answer:
(b) Planning function includes:

• Setting missions
• Laying objectives
• Mapping policies, procedures, methods & rules
• Budgets
• Programme
• Mapping Strategies

Thus, motivating is not a function of planning, it is a function of directing.

100. Which of the following is not an advantage of Decision making by groups?
(a) Decision making by group provides training to employees.
(b) Decision making by group is a time-consuming process.
(c) Decision made by group is widely accepted.
(d) Decision making by group improves the quality of decision making.
Answer:
(b) Decision-making by groups is not a rare thing observed in business operations. Board meetings, committees, staff meetings and conferences provide examples of decisions-making by groups.

If properly handled, decision-making by groups or committees offers the following advantages:

• It improves quality of the decision since different viewpoints and opinions are reflected in it.
• Coordination of departmental activities through meetings of their respective heads become easier.
• Group decision-making provides opportunity for participation by individuals representing different interests and thus, it boosts their morale and motivates them for a wholehearted cooperation in carrying out the decisions.
• It provides opportunity for the training of employees and their development as future decision-makers.

101. Which of the following suggests the exact manner in which a particular activity is to be done?
(a) Procedures
(b) Budget
(c) Policies
(d) Strategy.
Answer:
(a) Procedures suggest the exact manner in which a particular activity is to be done. It specifies the chronological sequence for handling future activities. An enterprise, for example, may have promotion policy based on seniority. To implement this policy, procedures must be established for calculating seniority of employees and granting them actual promotions. It is apparent, procedures are guide to actions.

102. The management function of control is largely a matter of …………. .
(a) Resolving conflicts
(b) Determining what needs to be done
(c) Enforcing rules for employees
(d) Monitoring to see that tasks are accomplished
Answer:
(d) Management function of control seeks to check the performance against some predetermined standard or projected course of action established through planning process. Though planning affects all other functions of management, the unique feature of control is that it cannot exist without planning.

103. Which of the following best define the term planning:
(a) Integrated process to formulate the plans.
(b) Evaluate alternatives
(c) Devise the tools to manage an organisation
(d) Deciding upon the future course of actions to achieve the objectives of an organisation.
Answer:
(d) Planning means deciding upon the future course of actions to achieve the objectives of organisation.

104. Functions of administration are:
(a) Executive and governing
(b) Policymaking and implementation
(c) Legislative and determinative
(d) None of the above
Answer:
(c) Planning / Functions of administration are legislative and determinative.

105. Which one of the following control techniques is associated with recording of expenses and comparing them with the budgeted cost?
(a) Internal Audit
(b) Standard costing
(c) Break-even analysis
(d) Statistical control
Answer:
(b) Standard costing is one of the control techniques which is associated with recording of expenses and comparing them with budgeted cost.

106. Premises signify ………………….. within which planning will take place.
(a) Planning assumptions
(b) Planning deviations
(c) Planning resources
(d) None of the above.
Answer:
(a) Planning will takes place in planning assumption signify by premises.

107. How many principles of management have been suggested by Henry Fayol?
(a) 10
(b)14
(c) 12
(d) 16
Answer:
(b) There are 14 principles of Management suggested by Henry Fayol.

108. Which of the following is the first and primary step in the planning process?
(a) Premising
(b) Determining
(c) Evaluating alternatives
(d) Establishing objectives
Answer:
(d) Planning process is very tedious process and it involves so many steps and its first step is to set objectives i.e. what to achieve. Without objective, nothing can be achieved by organisation. So, setting goals is the Primary Step of Planning Process.

109. Which one of the following method is used frequently by an organisation to decide its strategic goals?
(a) Group discussion
(b) Brainstorming
(c) Interview
(d) None of the above
Answer:
(b) Brain Storming: Brainstorming is a group creativity technique by which efforts are made to find a conclusion for a specific problem by gathering a list of ideas spontaneously contributed by its members. Thus, option (b) is correct answer.

110. The term strategy is derived from:
(a) Strategos
(b) Strata
(c) Strategy
(d) All of the above
Answer:
(a) Strategy is derived from a Greek word Strategos comprising two words Stratos + ago; respectively meaning army and moving or guiding.

111. Planning is a:
(a) One time process
(b) Continuous process
(c) Once in 10-year process
(d) None of these
Answer:
(b)Planning is a continúous process of management.

112. Planning is
(a) Fixed
(b) Flexible
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Planning is flexible as it can be changed in accordance to current situation and can be redrafted.

113. Planning may call for a change in the existing —
(a) Accounting Concepts
(b) Government Mandates
(c) Governance Standards
(d) Procedure and Policies
Answer:
(d) Planning may call for a change in the existing ‘Procedure and Policies’ of the organisation because all other three only affect the planning already done.

114. Strategic plans are required for plans?
(a) Long Range
(b) Short Range
(c) Medium Range
(d) All
Answer:
(a) Strategic plans are detailed action steps laid out to achieve strategic goals. These have a time horizon 5 years and above. These plans often include their mission and goals as these are the basis for action steps.

115. Actual selection of course of action from among the alternative?
(a) Decision Making
(b) Forecasting
(c) Premises
(d) Budgeting
Answer:
(a) Decision making signifies actual selection of a course of action from among a number of alternatives. It is so important to the job of managing that management is sometimes described as consisting essentially of the decision making process.

CS Foundation Business Management Ethics and Entrepreneurship Notes

Business Communication – Business Management Ethics and Entrepreneurship Notes

Concept of Communication:
Communication is a dynamic, transitional (two-way process) in which there is an exchange of ideas linking the sender and receiver toward mutually accepted direction or goals.
It is a process by which information is exchanged between different individuals through a common system of symbols, signs or behaviour etc.
It may be

• intrapersonal: when we try to communicate with ourself
• interpersonal communication: when we convey message to others, Communication is derived from a latin word communicate” which means share/participate.

Business Communication:
When one communicates done to transact some business commercial activity i.e. providing goods or services with the intention generating gains is defined as Business Communication.

It is useful to acquire the skill of effective writing and speaking. Information Is giving out; communication is getting through.

Characteristics of Communication:

• two-way process requiring feedback from the receiver.
• Ongoing and continuous process.
• Essential for all types of organisation.
• its basic purpose is to create mutual understanding by giving information influencing others and elicitingictions.
• Facts, Ideas and emotions are part of communication.
• It can also be done through signs.
• Communication in organisation consist of flow of messages through several networks like problem-solving, workflow etc. It is a dynamic process.
• It is a goal-oriented process.
• Communication is an interdisciplinary science.
• It takes two to communicate message.

Importance of Communication:

• Increase in Size: Larger business needs more communication. An efficient system of communication is required to carry out its activities successfully.
• Growing Specialization: Narrow division of work results in different activities being handled by different departments. Specialization can be possible only when there is no communication gap between two specialists.
• Cut-throat Competition: As per Industrial Policy, 1991 Liberalization and globalisation have resulted into inter-firm competition due to which persuasive communication takes place. Persuasive communication occurs in the form of advertisement, personal contacts and publicity.
• Trade Union Movement: Employee unions are very strong and powerful Management should consult union leaders in several matters.

Human Relations: Effective communication between management and employee is possible if they develop mutual trust and confidence, by involving employees in decision making etc.

Public Relations: Manager should develop public relation by informing Government, distribution, supplies, investors about its contribution towards the society. Public relations helps business to improve its image in society.

Personal Asset: Communication is a personal asset for a good speaker as it is essential for success in every job. Manager need to deliver speeches, write documents and conduct interviews which requires good communication skills.

Means of Communication:
While transmitter of written communication one has to pay serious attention towards:

• Appropriate Words
• Clarity of Ideas
• Inoffensive language
• Lucid style
• Coherent Presentation

Appropriate Words: Words should not be used in negative aspect or should not be misunderstood. It depends upon the situation, in which these words are used.

Clarity of Ideas: It is a precursor or for effective communication. Use of uncertain words should be avoided, clarity of expression requires proper encoding of the message and choice of appropriate words.
Inoffensive Language: To Build Goodwill or reputation, inoffensive language is required especially while communicating with the organisation.

Lucid Style: It implies uniformity in the style of writing. There are certain executives who cultivate a style of writing from which they rarely depart.

Coherent Presentation: A proper link between various sentences and paragraphs must be clear which makes it easily understandable.

Oral Communication:
Around 80% of communication is in the oral form. Various modes of oral communication includes telephone, message, video conferencing, speeches etc.
Speech is the earliest and most widely used medium of communication.

Business Conversation:
There is a great importance of speech in business also. Every now and then we make conversation in business with superiors with subordinate superiors among themselves, subordinates among themselves, customers with suppliers and suppliers with clients etc.

Factors affecting Oral Communications:

• Audience
• Size of Audience
• The degree of significance attached to the information to be spoken out,
• Fear of Loss
• Fear of status, etc.

Effective oral communication is a passport to success in business.

Advantages of Oral Communication:

• Saves time:
• Provides opportunity for instant feedback and clarifies the doubts.
• Helps to convey the message more appropriately with suitable tone, voice and use of words. ‘
• An effective tool of persuasion in management.
• Very effective in communicating with groups.
• Economical as it saves man-hours & stationery.
• Its withdrawal is comparatively easy.

Disadvantage of Oral Communication:

• Depends on Sender / Receiver’s attitude.
• It is not a One-Sided Activity. It is complete when the sender sends the message and receiver receives the messages and sends its feedback.
• Bad/ partial listening affects the message communicated.
• There is no record for future reference or legal liability.
• Its economy is control specific.

1. Dictation:

• Sort all your incoming mail yourself or leave it to be done by your secretary.
• Be clear in pronunciation. Use simple words and short sentences
• Do not repeat the sentences.
• Spell out complicated or technical words.
• Take personal action only on those papers that you feel are important and require your personal attention
• Organize your thoughts, plan the reply for a letter and if required, note down all the points you want to cover before you commence your dictation.
• Set aside regular time slots for dictation.
• Use your natural voice and normal volume.
• Do not dictate while chewing something.
• Pause after completing a sentence.
• Listen Carefully on dictation being read back to you.
• Give all letters and supporting papers to your secretary.

2. Talking on the telephone:

• Do not let your telephone ring for too long reflect promptness.
• Be clear and audible and do not shout into the mouthpiece.
• Always be polite, no matter what your mood is or how the person on the other end is talking.
• Do not answer in rush
• Be calm
• Do not eat or chew while talking
• Never bang the phone, always replace the receiver gently on the cradle.

Visual Communication:
It is communication with words, pictures, logos or any combination of the three. It can be in the forms of graphs, maps, slides, models etc.

Advantages of Visual Communication:

• It makes conveying of information easier for the receiver to follow.
• It is remembered easily by the receiver and for a long period.

Disadvantages of visual communication:
(i) This mode is expensive

Audiovisual communication:
It includes communication through cinema, internet, television, video conferencing etc.

Advantages of audiovisual communication:

• Uses both sight and hearing simultaneously for communicating
• Enhances the effectiveness of the message
• Wider reach
• Message remembered for a longer time.

Disadvantages of Audiovisual communication:

• High Cost:
  Factors for Choosing Means and Mode of communication
• Organizations size and policy: Smaller the organisation, communication will be oral. Larger the organisation communication will be in writing.
• Cost Factor: The cost incurred by the organisation to communicate the messages should show the expected results.
• Nature of message: Whether the message is confidential, important or urgent and whether it needs to be sent by post or hand delivery.
• Distance Involved: Long-distance messages should not be send personally.
• Resources: The resources available at both the ends may influence our choice.

Process of Communication:

Sender:
The person initiating the idea of communicating a message.

Message:
The idea or message, which the sender wants to be conveyed. It should be encoded in words/symbols suitable for the receiver.

Medium:
Medium can be oral as well as in written form. Written medium may be reports, fax, telegram, telephone or email.

Receiver:
Person receiving the message. He decodes the message in order to determine the meaning of the message sent to him.

Feedback:
When receiver sends a message to the sender ¡n form of a response to complete the communication.

Noise:
Cause of communication failure.
Success of communication is proportionate to control of noise at
different levels of communication process.

Principles and Essentials of Communication:
Effective communication can be achieved by having a thorough knowledge of the communication process in an organisation.
It mainly depends upon 3 things-

1. Understandable messages,
2. Credibility of the sender
3. How message is affecting the receiver.

Seven C’s of Effective Communication

1. Clarity of expression
2. Completeness of information
3. Conciseness of message
4. Concreteness in presentation
5. Courtesy towards recipient
6. Correctness of facts
7. Consideration for receiver

Guidelines for effective communication:

• Choose the Right Means and Mode: This depends upon organisation’s size, policy, cost involved, urgency and various other factors.
• Own Your Message: Sender and receiver own the responsibility for whatever they say.
• Offer Complete and Relevant Information:
  Incomplete information makes it necessary to begin another cycle of communication to issue clarification therefore message must offer complete and relevant information.
• Obtain Feedback: Obtaining feedback through receiver ensures that message has been correctly understood.
• Think of the Recipient’s status before communicating:
• Verbal and Non-Verbal Congruence: Verbal & non-verbal expressions must be coordinated simultaneously.
• Repeat If Necessary: To save time and space, repetition should be avoided. Repetition ensures that crucial part of message is no ignored or overlooked.
• Do not Judge: Ljnfavourable Judgement sometimes effects the organisation goodwill. Avoid premature evaluation.
• Rely on Facts: Communication must not be relied on certain things which cannot be proved. It must be relied on facts.

Types of Communication
Communication is of two types:

1. Internal
2. External

Internal Communication:

• It refers to communication within the organisation.
• It is important because as business grows in size, its activities becomes more complex.
• It promotes understanding and cooperation among members.
• It can be official or unofficial.
• Most of it is in oral form.
• Communication at personal level within the organisation is an informal

communication (grapevine):

• All modes of non-verbal communication can be used.
• Some modes of written communication are also used.
• Intelligent managers use this human weakness to their advantage shaving favourable with the employees.

External Communication:

• When the people in the organisation communicate with anyone outside the organisation.
• These people may be clients, customers, dealers, or distributors.
• Methods: letters, circulars, price lists, etc.

Mainly: Formal and documented.
All modes of Visual, audiovisual and non-verbal communication may be used.

Communication Flow:
It depends upon organisations:

• Size
• Structure
• Philosophy

It may be –

1. Downward,
2. Upward,
3. Diagonal, or
4. Horizontal.

Downward Flow:
It flows from a superior to a subordinate.

• traditional organisations have a vertical structure.
• All the decisions are taken from the top.
• Suited for an organisation in which the line of authority runs downwards.

Disadvantages:

• Under and over communication
• Delay
• Loss of information
• Creation of authoritarian atmosphere
• Distortion

Upward Flow:
Flow moves from subordinate to superior.
It leads to prevention of new problems and solutions of the old ones.

Diagonal Flow:

• Sometimes communication involves more than one department in the organisation.
• It enables people to talk to lower & higher ranks freely.
• It is based on cooperation, goodwill and respect between the parties concerned.

Horizontal Communication
It takes place between people of same status or level of authority.
It helps in promoting better understanding and coordination among various people or departments.

Johar Window: It is the one of the most useful model describing the process of human interaction. It was propounded be Joseph Luit and HarryIngham.

1. Arena – Known to self – also called open quadrant

2. Blind Spot -Not known to self

3. Facade – Known to others -Hidden quadrant

4. Unknown – neither known to – participants nor by peers.

Business Communication:
• Mainly: Formal and documented.
• All modes of Visual, audio-visual and non-verbal communication may be used.

Barriers of Communication:
Lack of Planning: Message should be communicated with propel planning. If the message is not clear, il is supposed that the purpose In mind is also not clear.

False Assumption: Some times while communicating sender start with several assumption which may or may not be true and receiver forced to accept them.

Ambiguity: Sometimes receiver may not understand the meaning intended by the sender. A wrong interference is often drawn when the message yields more than one meaning.

Distortion: Many communication gets distorted due to change in provisions or medium while the sender thinks that message is sent at delivered properly, the truth is that receiver has not understood it at all.

Passing Judgement: Use of offensive or annoying expressions sometimes make the communication ineffective.

Implied Meaning: It is possible for the receiver not to get the implied meaning due to differences in his and senders background.

Lack of Trust: Lack of trust may result in communication failure as the relationship between the sender and receiver are not so strong. The Information shared by them is less due to lack of confidence.

Nature of Management and its Process MCQ Questions

1. What does Vitra personal communication mean.
(a) Communication with ourselves
(b) Communication with other
(c) both (a) & (b)
(d) None of above
Answer:
(a) Communication with ourselves

2. What does interpersonal communication mean.
(a) Communication with ourselves
(b) Communication with other
(c) Both (a) & (b)
(d) None of the above
Answer:
(b) Communication with other

3. “The language of a politician obscures the truth. The language of an artist revels it. Who spoke these words?
(a) Salman Rushdie
(b) John Keats
(c) Charles Darwin
(d) JM Keynes
Answer:
(a) Salman Rushdie

4. English has become the global language of business and finance Who spoke this lino?
(a) John Keats
(b) Salman Rushdie
(c) Nayantara Sehgal
(d) JM Keynes
Answer:
(c) Nayantara Sehgal

5. College teach one thing that is perhaps most valuable for the future employees to know. This one basic skill is to organize and express ideas in writing and speaking. Who spoke these words?
(a) Nayantara Sehgal
(b) Peter Drucker
(c) John Keats
(d) Salman Rushdie
Answer:
(b) Peter Drucker

6. Which of the following feature is not of communication?
(a) Continuous
(b) Goal-Oriented
(c) No flow of Message
(d) Inter-disciplinary Science
Answer:
(c) No flow of Message

7. Study of Body language is known as –
(a) Anthropology
(b) Psychology
(c) Sociology
(d) Political science
Answer:
(a) Anthropology

8. Study of persuasion, perception and attitude.
(a) Anthropology
(b) Psychology
(c) Sociology
(d) Political science
Answer:
(b) Psychology

9. Study of voting behaviour is known as.
(a) Sociology
(b) Political Science
(c) Anthropology
(d) Both (a) & (b)
Answer:
(d) Both (a) & (b)

10. Which of the following is not an importance of communication.
(a) Human Relation
(b) Inter-disciplinary science
(c) Personal Asset
(d) Public Relation
Answer:
(b) Inter-disciplinary science

11. Which ¡s not a type of verbal communication.
(a) Oral
(b) Written
(c) Visual
(d) Gestures
Answer:
(d) Gestures

12. Which is not a type of Non-Verbal Communication.
(a) Gestures
(b) Movements
(c) Eye contacts
(d) Visual
Answer:
(d) Visual

13. Which of the feature belongs to choice of means and mode of communication.
(a) Nature of organisation
(b) Variable Means
(c) Distance Involved
(d) None of these
Answer:
(c) Distance Involved

14. ……………………… is necessary for the completion of communication process.
(a) Encoding
(b) Decoding
(c) Feedback
(d) None of the above
Answer:
(c) Feedback

15. Which of the following is not a part of seven ‘C’s of Effective Communication.
(a) Clarity of expression
(b) Conciseness in presentation
(c) Correctness of facts
(d) Completeness of information
Answer:
(b) Conciseness in presentation

16. Which mode of communication is internal communication.
(a) Verbal communication
(b) Non-verbal communication
(c) Both (a) & (b)
(d) None of the above
Answer:
(c) Both (a) & (b)

17. Whiçh is not a communication flow.
(a) Upward
(b) Horizontal
(c) Vertical
(d) Diagonal
Answer:
(c) Vertical

18. Which is a barrier to communication.
(a) True assumption
(b) Trust and confidence
(c) Planned way
(d) Ambiguity
Answer:
(d) Ambiguity

19. Communication is essentially a ………………… process.
(a) One way
(b) Threeway
(c) Four-way
(d) Two way
Answer:
(d) Two way

20. Facial expression; gestures; eye contact; nodding the head and physical appearance are the form of:
(a) Verbal Communication
(b) Oral Communication
(c) Non-Verbal Communication
(d) Visual Communication
Answer:
(c) Non-Verbal Communication

21. What is an essential part of Communication?
(a) Ongoing Process
(b) Goal-oriented process
(c) To Create mutual understandings
(d) Feedback.
Answer:
(d) Feedback.

22. Which Communication is essential for insuring mutual co-operation and understanding between different departments.
(a) Sound Communication
(b) Organizational Communication
(c) Persuasive Communication
(d) Oral Communication
Answer:
(a) Sound Communication

23. Flow of messages through several networks.
(a) Sound Communication
(b) Organizational Communication
(c) Persuasive Communication
(d) Written Communication
Answer:
(b) Organizational Communication

24. Which form of communication has a strong cultural context.
(a) Verbal Communication
(b) Non-verbal Communication
(c) Both (a) & (b)
(d) Oral Communication
Answer:
(b) Non-verbal Communication

25. An advantage of oral communication is:
(a) Partial Listening
(b) Effective tool of persuasion in Management.
(c) One sided Activity
(d) No record or legal liability
Answer:
(b) Effective tool of persuasion in Management.

26. What is a Coherence?
(a) Lack of poise
(b) Proper link between the sentence and the paragraphs.
(c) Confused thinking
(d) Branching off from the main streams of thought while writing the evidence
Answer:
(b) Proper link between the sentence and the paragraphs.

27. There are …………… C’s of effective communication.
(a) Six
(b) Seven
(c) Four
(d) Nine
Answer:
(b) Seven

28. ‘Intrapersonal’ Communication includes two or more persons.
(a) True
(b) False, it includes only oneself.
(c) True, in internal organisation only
(d) True, in matrix organisation only
Answer:
(b) False, it includes only oneself.

29. ‘Inter-disciplinary Science’ means-
(a) Knowledge from various other subjects
(b) Knowledge from various types of communication
(c) Knowledge from various sciences
(d) None of the above.
Answer:
(c) Knowledge from various sciences

30. Communication is personal
(a) Art
(b) Talent
(c) Asset
(d) (a) & (b)
Answer:
(c) Asset

31. Press Release, Radio, Presentation, video Conferencing, which one of these is odd?
(a) Presentation
(b) Video conferencing
(c) (a) & (d)
(d) Press Release
Answer:
(d) Press Release.

32. Coherent presentation is an important factor of communication Here ‘coherent’ stands for:
(a) Clear
(b) Easy & Soft
(c) Soft
(d) None
Answer:
(a) Clear

33. Which factor is not in consideration while Choosing means & mode of communication.
(a) Cost factor
(b) Nature & weather of locality
(c) Resources
(d) Distance involved
Answer:
(b) Nature & weather of locality

34. ………………….. function is discharged in reverse.
(a) Feedback
(b) Receiving
(c) Decoding
(d) Encoding
Answer:
(a) Feedback

35. Memo, Fax, Circulars, Manuals; emails Which of these cannot be used for external communication?
(a) Circulars
(b) Manuals
(c) Memo
(d) All of above
Answer:
(c) Memo

36. Which of these is odd?
Distortions, Ambiguity, Lack of Controlling false assumptions, implied meanings, passing judgements.
(a) False assumptions & Passing judgements
(b) Ambiguity
(c) Distortions & False assumptions
(d) All are correct
Answer:
(d) All are correct

37. VerbosIty means.
(a) Use of fine language
(b) Use of superfluous words
(c) Use of rude and rough Language
(d) Use of Unethical ideas.
Answer:
(b) Use of superfluous words

38. Abrupt means.
(a) Sudden and unexpected
(b) Drowsy and lazy
(c) Unclear
(d) Displeased
Answer:
(a) Sudden and unexpected

39. Communication is the exchange of:
(a) Facts
(b) Ideas
(c) Signs
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

40. PlaIn Language Commission insisted that the USP (Unique Selling Proposition) of business English should be:
(a) Ornamental
(b) Clancy
(c) Simplicity
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)

41. ‘The Language of a politician obscures the truth. The language of an artist reveals ir This is said by
(a) Salman Rushdie
(b) Peter Drucker
(c) Sydney J Harris
(d) Nayantara Sehgal
Answer:
(a) Salman Rushdie

42. “Reading maketh a full man, writing an exact man, Conference a ready man” who spoke these words.
(a) Peter Drucker
(b) Francis Beacon
(c) Sydney Harris
(d) Salman Rushdie
Answer:
(b) Francis Beacon

43. Which of the following is not an advantage of written communication
(a) More time consuming
(b) Accurate and precise
(c) Can be easily revised
(d) Sufficient time for planning
Answer:
(a) More time consuming

44. Oral communication includes:
(a) Type recorder
(b) Flip charts
(c) Intercom
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)

45. Which of the following is a disadvantage of oral communication.
(a) Saves time
(b) Economical
(c) no record for future preference
(d) None of these
Answer:
(c) no record for future preference

46. Visual Communication includes:
(a) Maps
(b) Slider
(c) Graphs
(d) All of the above
Answer:
(d) All of the above

47. Which of the following Is not a type al audiovisual Communication:
(a) Cinema
(b) Video Conferencing
(c) Neon Hoardings
(d) All of the above
Answer:
(c) Neon Hoardings

48. Lack of planning acts as a communication barrier.
(a) True
(b) False, if it is well co-ordinated
(c) false, planning can never be a communication barrier
(d) None of the above
Answer:
(a) True

49. Which mode of Communication is external communication.
(a) Verbal Communication
(b) Non-verbal communication
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

50. ‘Agenda’ includes which skill of the following:
(a) Writing
(b) Oral
(c) Speaking
(d) Listening
Answer:
(a) Agenda is a document that outlines the content of a forthcoming. meeting. It is usually send alongwith notice of the meeting. It is not compulsory.

List of Agendas are:

• Minutes of last meeting
• Matter arising from the minutes
• Any other business
• Date of next meeting

Thus, Agenda is a document which includes writing skills.

51. Which one of the following is not a barrier to communication
(a) Distortion in communication
(b) Feedback
(c) Ambiguity
(d) Lack of trust
Answer:
(b) Barriers of Communication are the causes of misunderstanding and misinterpretations of message communicated.
There are various types of barriers such as:

• Lack of Planning
• False Assumption
• Ambiguity
• Distortion
• Passing Judgement
• Implied meeting
• Lack of trust

Thus, “Feedback” is not the barrier to communication.

52. Communication by the CEO of the organisation to the purchase officer is an example of:
(a) Upward communication
(b) Downward communication
(c) Horizontal communication
(d) Informal communication.
Answer:
(b) Communication by the CEO of the organisation to the purchase officer is an example of downward communication.
Traditional organisations have a vertical structure. All the important decisions are taken at the top. These are communicated through different levels of hierarchy to the workers at lower levels which is possible by downward communication.

53. Crosswise communication is also known as …………………….. communication.
(a) Vertical
(b) Horizontal
(c) Diagonal
(d) None of the above.
Answer:
(c) Crosswise Communication is also known as Diagonal Communication. Diagonal communication is based on co-operation, goodwill and respect between the parties concerned. Here the people are able to talk to lower/higher ranks freely rather than waiting.

54. If you want to reduce miscommunication, you should:
(X) Start assuming
(Y) Talk to people
(Z) Improve your working environment The correct option is:
(a) (X)and(Y)
(b) (Y) and (Z)
(c) (X) and (Z)
(d) All of the above.
Answer:
(b) Communication failures may be caused due to many reasons which need to be kept in mind so as to reduce miscommunication:

• Sender must avoid false assumptions.
• Message must be send with adequate planning.
• There must be no ambiguity in the message send.
• Sender must talk to people to solve their queries.
• Working requirements must be approved.

Thus, correct option is Y and Z.

55. Which one of the following is not a barrier to communication?
(a) Incorrect choice of medium
(b) Difference in status
(c) Trust level
(d) Open communication channel.
Answer:
(d) Communication failures may be caused due to various reasons such as:
→ Lack of planning
→ False Assumption
→ Ambiguity
→ Incorrect choice of medium
→ Distortions
→ Passing judgements
→ Lack of trust
→ Status differences
Open communication channel is not a barrier to communication.

56. Match the parts of communication process to their respective definition:
1 Receiver (i) It decodes the message to determine the meaning of the message sent
2. Feedback (ii) An idea of an argument initially originates from here.
3. Medium (iii) After this process one cycle of interpersonal communication is completed
4. Sender (iv) It may be in the form of a letter or report, fax or telegram, telephone or email.
The correct option is:
(a) 1 (i), 2 (iii), 3 (iv), 4 (ii)
(b) 1 (iii), 2 (i), 3 (iv), 4 (ii)
(c) 1 (iv), 2 (iii), 3 (i), 4 (ii)
(d) 1 (ii), 2 (i), 3 (iv), 4 (iii).
Answer:
5. (a) Receiver → It decodes the message to determine the meaning of the message sent.
Feedback → After this process one cycle of interpersonal communication is completed.
Medium → It may be in the form of a letter or report, fax or telegram, telephone or email.
Sender → An idea or an argument initially originates from here.

57. Gestures cannot be used in –
(a) Oral communication
(b) Body language
(c) Written communication
(d) Informal communication.
Answer:
(c) Written communication means communication in written form. It may require drafting of letters and circulars proposals, memos etc. but it doesn’t include any gestures. Hence, gestures cannot be used in written communication.

58. Seven C’s of effective communication do not include –
(a) Consideration of sender
(b) Courtesy towards recipient
(c) Correctness of facts
(d) Concreteness in presentation.
Answer:
(a) Seven C’s of effective communication –

1. Clarity of expression
2. Completeness of information
3. Conciseness of message
4. Concreteness in presentation
5. Courtesy towards recipient
6. Correctness of facts
7. Consideration for receiver.

Hence, Consideration of sender is not included in 7 C’s of effective communication.

59. The flow or pattern of communication can be –
(a) Downward
(b) Upward
(c) Diagonal or horizontal
(d) All of the above.
(d) The flow or pattern of communication may be downward, upward, diagonal or horizontal. Hence, all of the above option is correct.

60. Top to bottom communication is known as.
(a) Vertical
(b) Horizontal
(c) Lateral
(d) Diagonal
Answer:
(a) Top to bottom communication is known as vertical because traditional organisation have vertical structure and in these organisations, communication flow from top to bottom as most of the decisions are taken by the top-level management. Hence, option (a) is correct.

61. ………………………… language should not be used in communication.
(a) Polite
(b) Clear
(c) Offensive
(d) Oral.
Answer:
(c) Language should be used in communication are:

• Appropriate words
• Clarity of ideas
• Inoffensive language
• Lucid style
• Coherent presentation

Thus, offensive language should not be used in communication.

62. Horizontal communication is:
(a) From higher to lower level
(b) From lower to higher level
(c) At same level
(d) All of the above.
Answer:
(c) Horizontal communication takes place between people of same status or level of authority. Thus, horizontal communication is done at same level.

63. Process of communication doesn’t include.
(a) Receiver
(b) Feedback
(c) Sender
(d) Correct language
Answer:
(d) Process of communication includes the following elements: –

• Sender
• Message
• Medium
• Receiver
• Feedback

Thus, process of communication does not includes correct language.

64. 7’Cs of effective communication doesn’t include.
(a) Clarity of expression
(b) Completeness of presentation
(c) Conciseness of message
(d) Courtesy towards recipients.
Answer:
(b) Seven C’s of effective communication are

1. – Clarity of expression
2. – Completeness of information
3. – Conciseness of message
4. – Concreteness in presentation
5. – Courtesy towards recipient
6. – Correctness of facts
7. – Consideration for receiver

Hence, completeness of presentation is not included in 7 C’s of effective communication.

65. Which of the following is not a barrier of communication.
(a) Lack of planning
(b) Ambiguity
(c) Lack of staffing
(d) Lack of trust
Answer:
(b) Barriers to communication are the causes of misunderstanding and misinterpretations of message communicated.
There are various types of barriers such as: –

• Lack of Planning
• False Assumption
• Ambiguity
• Distortion
• Passing Judgement
• Implied meeting
• Lack of Trust

Thus, lack of staffing is not a barriers of communication.

66. Choose the correct phrase to complete the following sentence while giving dictation ………………………………. .
(a) One may not organise one’s thoughts before dictating the message
(b) One may be clear in pronunciation
(c) One may not ask the secretary to read back the message
(d) One may refrain from dictating technical words.
Answer:
(b) While giving dictation, few things should be kept in mind such as:

• Organise your thoughts, plan the reply for a letter and if need be jot down all the points you want to cover before you commence your dictation.
• Be clear in pronunciation. Use simple words and short sentences.
• Do not repeat words or sentences unless requested.
• Spell out complicated or technical words.

Hence option (b) is the correct answer.

67. Most communication failures are caused because of:
(a) Light
(b) Music
(c) Dance
(d) Noise.
Answer:
(d) Most communication failures are caused because of Noise. It is an element, which interferes with the communication process. The success of communication is proportionate to the control of noise at different level of the communication process.

68. Which is not a mode of external written communication?
(a) Office order
(b) Advertisement
(c) Press release
(d) Invitation for Annual General Meeting.
Answer:
(a) When people in an organisation communicate with anyone outside the organisation it is called external communication. These people may be clients or customers, dealers, media, government, general public (includes shareholders) etc.

The modes of external written communication can be advertisement, press release, circulars, invitation for annual general meeting etc. Hence, option (a) office order is not a mode of external written communication.

69. Which of the following is an example of non-verbal communication?
(a) Video conferencing
(b) Gestures
(c) Letters
(d) E-mail.
Answer:
(b) Non-verbal communication where messages are communicated through body language (i.e.) facial expression & gestures. Hence, letters, emails & video conferencing are the verbal modes of communication.

70. This began as an American experiment in computer communication technology during the cold war and has revolutionised the world:
(a) Internet
(b) Fax
(c) Radar
(d) Telegrams.
Answer:
(a) What began as an American experiment in computer communication technology during the cold war has revolutionised the world. E-mail has been around for almost as internet.

71. Most communication failures are caused because of:
(a) Music
(b) Noise
(c) Dance
(d) Light.
Answer:
(b) Most communication failures are caused because of noise.

72. Which of the following is a type of verbal Communication?
(a) Nodding of the head
(b) Manuals
(c) Gestures
(d) Movements.
Answer:
(b) Verbal communication includes written communication, oral visual and audio-visual communication. Which in comprises Manuals Reports, Fax charts, Presentation etc.

73. ………………………………. communication. How usually takes place between people at the same level of hierarchy in the organisation.
(a) Horizontal
(b) Downward
(c) Upward
(d) Vertical.
Answer:
(a) Horizontal Communication usually takes places between people at the same level of hierarchy.

74. “Relevant details must be submitted for the preparation of order by Saturday”. This is an example of which kind of communication barrier:
(a) False assumption
(b) Passing judgements
(c) Ambiguity
(d) Distortions.
Answer:
(c) Ambiguity: We must remember that our intentions are strictly private. They are only known to us. Therefore, the receiver may not correctly understand the meaning intended by us. Wrong inference is often drawn because the message yields more than one meaning. For example, the instruction that relevant details must be submitted for preparation of order by Saturday is ambiguous. It does not clarify whether the details are required by Saturday or that day itself.

75. There are C’s in communication:
(a) Seven
(b) Six
(c) Four
(d) Eight
Answer:
(a) There are seven C’s of Effective Communication:

1. Clarity of expression
2. Completeness of information
3. Conciseness of message
4. Concreteness in presentation
5. Courtesy towards recipient
6. Correctness of facts
7. Consideration for the receiver

76. Which is not the barrier to communication:
(a) Lack of planning
(b) Ambiguity
(c) Gestures
(d) False Assumptions
Answer:
(c) Barriers to communication:

• Lack of Planning
• False Assumption
• Ambiguity
• Distortions
• Passing-Judgements
• Implied Meaning
• Lack of Trust

Thus, option (c) i.e. Gestures is not a barrier to communication.

77. Which is not a mode of external written communication?
(a) Press release
(b) Advertisement
(c) Invitation for Annual General Meeting
(d) Office order.
Answer:
(d) Office orders is not a mode of external written communication. It is the internal communication which is within the organisation. It could be individual to individual, individual to group, group to individual etc.

78. Effective communication has become essential due to:
(a) Increase in size of organisation
(b) Growing specialisation
(c) Growing need of co-ordination
(d) All the stated options are correct.
Answer:
(d) Effective communication has become essential increase in size of organisation as firms have grown tremendously in scale of operation thereby making communication to carry out its activities across successfully secondly growing specialization and coordination.

79. Which of the following is not an advantage of oral communication?
(a) It depends on the listening of the receiver
(b) It is economical
(c) It provides the opportunity for immediate feedback
(d) It helps to convey the message with suitable tone.
Answer:
(a) Oral communication depends upon the listening of the receiver is not an advantage as it is not a one-sided activity. The communication has to use appropriate words to convey the message and the receiver has to have the ability to, reach to the message spontaneously to give the feedback.

80. In the communication process, the sender the message.
(a) Decodes
(b) Encodes
(c) Feedback
(d) Receives.
Answer:
(b) In the communication process, the sender encodes the message which he wants to convey. The idea or message, at this stage may be quite vague so it has to be given a concrete shape by encoding it in suitable words or symbols.

81. Which of the following pattern should confirm to the writing strategy of a newsletter in an organisation?
(a) No pattern exists
(b) The news, the explanation, a positive close and a contact number
(c) A buffer, an explanation, the news, the positive close
(d) A buffer, the news, the reasons, a neutral close.
Answer:
(b) Ideal Writing Strategy of a Newsletter in an Organisation covers following levels:

• The NEWS
• Various Explanations
• A positive winding-up closure to Newsletter
• Lastly, Organisation Contact Details are furnished.

82. The process of communication does not involve:
(a) Medium
(b) Feedback
(c) Fax message
(d) Sender
Answer:
(c) Process of communication involves:

• Sender
• Message
• Medium
• Receiver
• Feedback
• Noise

83. The highest level of interactivity between the sender and the receiver is in.
(a) Electronic news letters
(b) Bulletin Boards
(c) Face-to-face communications
(d) Facebook postings
Answer:
(c) Face to face communication gives a personal touch to the communication. It also provides an opportunity for feedback and clarification. Thus, it is most interactive in nature.

84. Horizontal flow of communication takes place
(a) Between people of the same level.
(b) Between more than one organisation. .
(c) From lower levels to higher levels of authority.
(d) From higher levels to lower levels of authority.
Answer:
(a) Horizontal type of communication flow usually takes place between people of the same status/level of hierarchy in the organization. However, as flatter organizational structures have now become the order of the day, people of different ranks now manage to converse with less reserve and formality. There are many advantages of such openness. Policy decisions are no longer shrouded in mystery. Workers are encouraged to ask questions and understand the compulsions of hard decisions. There is better understanding and coordination.

85. Which of the following is not an advantage of oral communication?
(a) It provides the opportunity for immediate feedback.
(b) It helps to convey the message with suitable tone.
(c) It depends on the listening skills of the receiver.
(d) Its economical.
Answer:
(c) Every now and then in business we make conversation – superiors with subordinates, superiors among themselves, subordinates among themselves, customers with suppliers, and suppliers with clients and so on and so forth. Hence, we cannot ignore the importance of speech in business. Its success or failure depends on the mental make-up of the sender/receiver at the time of communication. Thus, option c will be considered as disadvantage but not the advantage.

86. Which of the following, falls into the group of seven C’s of effective communication?
(a) Customer newsletter
(b) Customised reports
(c) Courtesy towards recipient
(d) Customers feedback
Answer:
(c) The key to success of business partly lies in being able to communicate effectively; one should make a conscious effort to master it. Effective communication depends on three things: “Understandable messages, credibility of the sender, and how the message affects the receiver”. Hence, courtesy towards the recipient is the one among the seven C’s from the above options.

87. Choose the incorrect statement:
(a) Written communication does not allow immediate feedbacks, as compared to oral communication
(b) Written communication does not create legal liability
(c) Written communication is permanent
(d) Written communication takes much more time
Answer:
(b) Written Communication does create legal obligation and are legally binding on the parties.

88. Words are changed to signals with the help of the …………………… key in a telegram.
(a) Marons
(b) Mortoris
(c) Morse’s
(d) Morgoris.
Answer:
(c) In Telegrams, on order to send a message words are changed into signals with Marse’s key.

89. Communication failures can be caused due to:
(a) Ambiguity
(b) Clarity
(c) Correctness
(d) Completeness
Answer:
(a) Ambiguity is one of the basic reasons of distortions in communication.

90. “Relevant details must be submitted for the preparation of order by Saturday”. This is an example of which kind of communication barrier?
(a) Passing judgements
(b) Ambiguity
(c) False assumption
(d) Distortions
Answer:
(b) The given is example of ambiguity and it does not clarify whether the details are required by Saturday or the order must be prepared by that day.

91. Which one of the following is grammatically correct?
(a) I bought three dozen bananas
(b) I bought three dozen bananas
(c) I bought three dozens banana
(d) I bough three dozen banana.
Answer:
(b) I bought three dozen bananas is grammatically correct.

92. Don’t worry we are prepared ……………….. anythings. Which one of the following is the correct preposition to fill in the blank space?
(a) By
(b) From
(c) To
(d) For
Answer:
(d) Don’t we are prepared for anythings. ‘For’ is correct preposition.

93. Which of the following serves as a road map for the meeting?
(a) Addendum to the notice
(b) Agenda
(c) Quorum
(d) Notice
Answer:
3. (b) Agenda means to serve as a road map for meeting.

94. If you want to reduce miscommunication on, you should:
(x) Start assuming
(y) Talk to people
(z) Improve your working environment The Correct option is:
(a) (x)and(y)
(b) (y) and (z)
(c) (x) and (z)
(d) All of the above.
Answer:
(b) By talking to people, miscommunication can be reduced to the great extent. Improve working environment helps to reduce miscommunication

95. Which of the following is not a barrier to communication?
(a) Incorrect choice of medium
(b) Difference in status
(c) Trust level
(d) Open communication channel
Answer:
(d) Open communication channel is not a barrier to communication.

96. Match the parts of communication process to their respective definition:
1. ReceIver (i) It decodes the massage to determine the meaning of the message sent
2. Feedback (ii) An idea or an argument initially originates from here.
3. MedIum (iii) After this process one side of interpersonal communication is completed.
4. Sender (iv) It may be in the tom, at a letter or report fax or telegram, telephone or email.

The Correct option is:
(a) 1 (i), 2 (iii), 3(iv), 4 (ii)
(b) 1 (iii), 2 (i), 3 (iv), 4 (ii)
(c) 1 (iv), 2 (iii), 3 (i), 4 (ii)
(d) 1 (ii), 2 (i), 3 (iv), 4 (iii)
Answer:
6. (a) ‘Receiver means it decodes the message to determine the meaning of message sent. ‘Feedback’ means after this process one cycle of inter-personal communication is communicated. “Medium’ may be in the form of a letter or report fax or telegram, telephone or e-mail. ‘Sender’ means An idea or an agreement initially originates from here.

97. The word “Communication” has been derived from.
(a) Communism
(b) Community
(c) Communicate
(d) Communis
Answer:
(d) “Communication” is derived from latin word Communis which means to import, to share or to make common.

98. Which of the following is incorrect
(a) Communication is a dynamic process
(b) Communication is one-way process
(c) Communication is ongoing process
(d) It mot only contain facts but ideas and emotions too.
Answer:
(c) Communication is a two-way process
It contains not only facts but ideas, emotions and information too.
It is ongoing process
It is a dynamic process etc., hence option (b) is correct option.

99. Flow of Communication is:
(a) Upward flow
(b) Diagonal flow
(c) Horizontal flow
(d) All of these
Answer:
(d) Channels of Communication:

• Downwards flows
• Upward flows
• Diagonal flows
• Horizontal; hence option (d) is correct.

100. Language of communication may be:
(a) Verbal or written only
(b) Verbal or Non-verbal
(c) Oral only
(d) Gestural only
Answer:

101. Which one of these is a mode of Non-Verbal communication:
(a) Video conference
(b) Tele Communication
(c) Gestures
(d) Massages
Answer:
(c) Types of Non-Verbal Communication:

• Gestures
• Facial expressions
• Movement
• Eye Contact
• Physical appearance

102. Gestures cannot be used in –
(a) Oral communication
(b) Body language
(c) Written communication
(d) Informal communication.
Answer:
(c) Gestures cannot be used in written communication because they can only be represented by personal communication.

103. Seven C’s of effective communication do not include –
(a) Consideration of sender
(b) Courtesy towards recipient
(c) Correctness of facts
(d) Concreteness in presentation
Answer:
(a) Seven C’s of effective communication are as follows:

• Correctness of facts
• Clarity of expression
• Conciseness of message
• Completeness of information
• Consideration of the receiver
• Concreteness in presentation
• Courtesy towards recipient.

104. The flow or pattern of communication can be –
(a) Downward
(b) Upward
(c) Diagonal or horizontal
(d) All of the above.
Answer:
(d) The flow of pattern of communication can be

• Downward
• Upward
• Diagonal or horizontal.

105. To eat one’s words
(a) To retract one’s assertions under compulsion.
(b) To have to humiliate one self.
(c) To make something less effective.
(d) To issue a challenge.
Answer:
(a) To eat one’s words means- Retract what one has said, especially in a humiliated way.
Eg. They will eat their words when win.

106. Meaning of ab initio?
(a) To the same thing
(b) To infinity
(c) From the beginning
(d) In good faith.
Answer:
(c) The phrase “ab initio” means From the beginning.

107. Downward communication can tie done between?
(a) Employer and Employer
(b) Employee and Employee
(c) Employer and Employee
(d) None of above.
Answer:
(c) Traditional organisations have a vertical structure. All the important decisions are taken at the top. These are communicated through different levels of hierarchy to the workers. It is done between employer and employee.

108. Business communication is:
(a) Internal and informal
(b) External and formal
(c) Internal as well as external
(d) All of above.
Answer:
(d) Types of Communication –

• Internal Communication
• External Communication
• Formal Communication
• Informal Communication
• Downward Communication
• Upward Communication
• Vertical Communication

109. Sender can be:
(a) Receiver
(b) Recipient
(c) Communicator
(d) All of above.
Answer:
(c) Sender is a person who want to share ideas, facts etc. Hence sender can be a communicator.

CS Foundation Business Management Ethics and Entrepreneurship Notes

E-Correspondence – Business Management Ethics and Entrepreneurship Notes

Introduction:

• System of interlinked hypertext documents accessed via the internet is called World Wide Web (WWW).
• World Wide Web and internet are two separate but related things.
• The letters were written by one party to another, and the answers thereto. make what is called the correspondence of the parties.
• Such correspondence is done through electronic signals via internet is called E-Correspondence.
• With a web browser, one can view web pages that contain text, video, multimedia etc.

Web:

• WWW or web is way of accessing information over the medium of internet
• Protocol used by Web is HTTP (HyperText Transfer Protocol).
• Web also utilises web browsers such as Internet Explorer, Mozilla, Google Chrome to access web pages that are linked to each other via links to form web documents.
• It contains graphics, sounds, text and video.
• Web is just a part of internet, the true term are not synonyms and should not be confused.

Internet:

• It is a network of networking infrastructure.
• Information travels in internet through a variety of languages known as protocols.
• It is a global connection of people/computers linked together by telephone lines.
• it is a collection of textual documents and other resources.
• It can be called as an application riinning on the internet.

Uses of Internet:

• Sending e-mail
• Publicity and Advertisement
• Teleconferencing
• E-commerce.

E- Correspondence:

• It is also known as “e-mail correspondence” or “electronic correspondence”.
• It is a method of providing information through e-mail.

E-mail:

• E-mail is also known as electronic mail.
• It involves sending messages through telecommunication links.
• E-mail refers to exchange of text messages and computer files over a communication network.
• It can be sent simultaneously to a large number of people.
• Today it is a central component of business communication.

History of E-mail:

1. By 1974, email in its improved form was being used by the US military.
2. 2. By 1975, efforts to organize the email bore fruits.
3. A general operating area known as email Account was created for user who wanted to avail the email services,
4. Access controlling was done by giving the user a secret password which only he/she would know.
5. E-mail services were being offered in commercial packages and per-minute charges were applicable to those using their services.
6. By the early 11 90s free and user-friendly email providers had taken the industry by storm.
7. Player like yahoo’ and ‘Hotmail were competing for the market share.
8. Today there are more than 600 million email users across the globe, with newer players like Google (Gmail) and Rediff entering.

• In 1965, the Massachusetts Institute of Technology was first to demonstrate the use of first e-mail system, known as “MAILBOX”.
• Tomlinson is called the “Father of e-mail” and is credited with its invention.
• He provided the symbol “@” as an addressing standard.
• In 1972, FTP (File Transfer Protocol) was used but it resulted in various problems. For every recipient a new mail was created which required a huge memory space.
• Nowadays,
  SMTP is used to send e-mails
  POP is used to receive e-mails.

Notes:
SMTP (Simple Mail Transfer Protocol):
SMTP is an Internet standard for electronic mail transmission across internet protocol (IP) networks.

POP (Post Office Protocol):
It is an application-layer internet standard protocol used by local e-mail clients to retrieve e-mails from a remote server over a TCP/IP connection.

Features of E-mail

• E-mail is an electronic mode of message transmission. Messages are sent using HTML (HyperText Markup Language)
• E-mail has become one of the cost-effective modes of fast communication
• Packages like Messenger’ and Outlook’ helps to compose new mails and forwarding emails to the people whose e-mas addrésses are stored in the “Address Box” Packages also allow us to format the content changing its size, font and colour.
• An interlace between e-mail programs and word processing programs allows us to perform various functions.

Electronic Mail System:

• Some standards of professionalism should be adopted while using e-mail.
• Separate personal, as well as professional mail accounts, should be maintained.
• Limiting or monitoring the size of distribution list for proper management.
• Various establishment policies for sending or receiving. attachment should be followed.
• Responding promptly to e-mail messages.
• Ensuring day to day viewing of e-mails.
• Pay attention towards the work performed by professionals through e-mails.

2. Optimizing personal E-mail use:

• Expert and managers can take several steps to maximize the efficiency of their company’s email system.
• These tips extend from pattern of personal email use to serve as a guideline for company-wide email policies.
• User of electronic mail are encouraged to adopt the same standard of professionalism that dictate the tone and appearance of postal correspondence.
• Separate the personal mail account from professional one.
• Monitor size of distribution List to keep them manageable.
• Establish policies for receiving attachments.
• Augment your email address to ensure accurate identification.
• Promptly respond to E-mail messages of any significance.
• Establish efficient daily e-mail practices.
• Pay Attention.

3. Proper use of E-correspondence:

• We deal with different type of email correspondence whether it be for business, for personal use, or for school, we all need to know proper way of sending email to other.
• E-mail correspondence comes in various colours and designs and it is creative as the sender making it words used in email are like.
• Small hit match, they can be useful to mend fragile relationships, warm the heart and high the way, or they can ignite whole forest a frame that could cause hence and destruction.

E-mail Etiquette:

• Basic rules should be kept in mind while addressing people through e-mail.
• It is very difficult to express the tone in writing. Tone here refers to accent used while writing an e-mail.
• Be concise while writing an e-mail.
• A person should stay away from writing abbreviations. A person should be professional while writing an e-mail.
• Proper grammar and spelling should be used.
• Before entering the e-mail address, the e-mail should be checked twice.

Advantages of E-mail:

• Managing e-mails is very easy task.
• E-mails are delivered very fast from any part of the world.
• Compared to other modes of communication e-mails are less expensive.
• E-mail can be filtered easily by the subject line present in e-mail.
• The level of security and reliability in transmission of e-mail is very high.

Disadvantages of E-mail:

• Sometimes, sending a mail is time-consuming because organizing and reading of information through e-mail can consume more time and may also act as a hindrance on workers’ productivity.
• Sensitive information can be send through mail anywhere in the world. It does not matter that mail is sent accidentally or deliberately. This may harm any organisation from security point of view.
• Sometimes, the meaning conveyed by sender is different from the meaning understood by receiver due to impersonal communication.
• Sometimes, understanding the e-mails in wrong way i.e. misunderstanding is due to differences in communication.
• It takes time to destroy hard copy or printed copy but by a simple hard drive crash, all mails can be lost.

Note :

• E-mail is not the confidential mode of communication. E-mail cannot be replaced by direct as well as face to face communication.
• E-mails cannot be relied in case of emergency.
• E-mail is dependent upon internet. Sometimes networks get disturbed and system loses connectivity.

Intranet:

• The word intra means within or internal.
• The intranet is a type of information system that facilitates communication within the organisation among widely dispersed departments, division and regional locations.
• External people cannot access the internet, thus secured.
• Intranet connects people to gather with internet technologies using web browsers, web servers arid data warehouses in a single view.
• With a web browser, one can view web pages that contain text, video, other multimedia etc.

Benefits of Intranet:

• Intranet helps the user to locate and view information easily and faster.
• It also help to use application relevant to their roles and responsibilities.
• Intranet allow organisation to distribute information within time so that employees may get link to relevant information at their convenience.
• Intranet act as a powerful tool for communication within an organisation by both the ways, horizontally as well as vertically.
• Web publishing helps to understand and access corporate information which is complex and not easily available.
• Intranet acts as a platform for development of applications to manage business operations and management.
• Intranet is cost-effective as it saves time, money as well as natural resources.
• Easy accessibility of information by all authorized users.
• Each person has an ability to view same information within the intranet, thus promoting common corporate culture.
• People are updated by latest laws and specifications with the help of intranet.

Purposes of internet:

1. InternaI communication.
2. To deliver tools and applications, thus advancing productivity.
3. Used as a corporate culture-change platform.
4. Send private messages.

Nature of Management and its Process MCQ Questions

1. The letter written by one party to another, and the answers thereto, make what is called the correspondence of parties such correspondence It done through electronic signals via internet is called …………………………..
(a) Intranet
(b) E-mail
(c) E-correspondence
(d) None of the above.
Answer:
(c) E-correspondence.

2. Full form of HTTP
(a) Hypertext transfer protocol
(b) Hyper transfer text protocol
(c) Hypertext transfer plan
(d) None of the above.
Answer:
(a) Hypertext transfer protocol.

3. ………………………………….. is a networking infrastructure.
(a) Internet
(b) Intranet
(c) Extranet
(d) E-mail
Answer:
(a) Internet.

4. What is the other name for e-corresponclence7
(a) E-mail – correspondence
(b) Electronic -correspondence
(c) Both (a) & (b)
(d) None of the above.
Answer:
(c) Both (a) & (b).

5. Full form of URL is:
(a) Uniform Reachable Locator
(b) Uniform Resource Locator
(c) Uniform Research Locator
(d) Uniform Readable Locator
Answer:
(b) Uniform Resource Locator.

6. First e-mail system was known as:
(a) MALE BOX
(b) MAILBOX
(c) EMAIL BOX
(d) None of the above.
Answer:
(b) MAILBOX.

7. When was FTP (File Transfer Protocol) put in use ……………………….. .
(a) 1952
(b) 1962
(c) 1972
(d) 1982
Answer:
(c) 1972.

8. Which protocol is used to receive mail?
(a) SMTP
(b) POP
(c) HTTP
(d) FTP
Answer:
(b) POP.

9. Which of the following is not the feature of E-mail?
(a) Spam
(b) Search
(c) Signature
(d) Settlement
Answer:
(d) Settlement.

10. Which is not an E-mail etiquette?
(a) Be concise
(b) Be Realistic
(c) Be Professional
(d) Watch your tone.
Answer:
(b) Be Realistic.

11. Which protocol is used by web?
(a) HTTP
(b) SMTP
(c) FTP
(d) POP
Answer:
(a) HTTP.

12. Unsolicited or junk mails are filtered through the option of
(a) Delete
(b) Trash
(c) Spam
(d) None of the above.
Answer:
(c) Spam.

13. WWW stands for
(a) World web-wide
(b) Wide world web
(c) World wide web
(d) None of the above.
Answer:
(c) World wide web

14. Who s called as the “father of E-mail”?
(a) Merrian
(b) Aristotle
(c) Tomlinson
(d) None of the above.
Answer:
(c) Tomlinson.

15. This began as an American experiment in computer communication technology during the cold war and has revolutionised the world.
(a) Fax
(b) SMS
(c) Telegram
(d) Email
Answer:
(d) Email.

16. …………………………. allows a central communication area for the entire company.
(a) Intranet
(b) Internet
(c) Extranet
(d) None of the above.
Answer:
(a) Intranet.

17. ……………………………….. is used in place for paper to communicate.
(a) Internet
(b) Intranet
(c) Email
(d) All of the above.
Answer:
(d) All of the above.

18. Full form of IMAP:
(a) Internet Message Access Plan
(b) Internet Message Access Protocol
(c) Intranet Message Access Protocol
(d) None of the above.
Answer:
(b) Internet Message Access Protocol.

19. Full form of POP:
(a) Post office plan
(b) Point office protocol
(c) Post office protocol
(d) Point office plan.
Answer:
(c) Post office protocol.

20. Which year was watershed year in e-mail marketing?
(a) 1946
(b) 1956
(c) 1966
(d) 1976
Answer:
(d) 1976.

21. Uses of Internet:
(a) Sending e-mail
(b) Teleconferencing
(c) E-commerce
(d) All of the above
Answer:
(d) All of the above.

22. It is an electronic, cost-effective and fastest mode of communication as of today.
(a) Internet
(b) E-mail
(c) E- Correspondence
(d) None of the above
Answer:
(a) Internet.

23. In year the MIT was the first to demonstrate the use of the first e-mail system, known as MAIL Box.
(a) 1965
(b) 1974
(c) 1976
(d) 1968
Answer:
(a) 1965.

24. Full form of FTP is
(a) Full-time protocol
(b) File transfer program
(c) Fun time program
(d) File transfer protocol
Answer:
(d) File transfer protocol.

25. The ……………….. option allows us to share documents, worksheets, presentations, pictures and videos along with the mails
(a) Spam
(b) Interface
(c) Attachments
(d) None of the above
Answer:
(c) Attachments.

26. Which of this is not an advantage of EMAIL?
(a) Managing E-mail is easy
(b) E-mail is fast
(c) E-mail is Inexpensive
(d) Security
Answer:
(d) Security.

27. Purposes of Intranet:
(a) Internet Communication
(b) Send private messages
(c) Used as a corporate culture -change platform
(d) All of the above.
Answer:
(d) All of the above.

28. Full form of HTML is:
(a) Hypertext mail language
(b) Hyper transfer markup language
(c) Hypertext markup language
(d) High time markup language
Answer:
(c) Hypertext markup language.

29. With reference to e-mail, BCC stands for ……………………………. .
(a) Blind carbon copy
(b) Before carbon copy
(c) Before copy carbon
(d) Blind copy carbon
Answer:
(a) Blind carbon copy:
With respect to e-mail, BCC Stands for Blind Carbon Copy. It is used or chosen to send a group or list of people the same message using BCC, which is kindest and least obvious way to send mail short of encryption.

30. Which one of the following is a system of interlinked documents accessed via internet?
(a) Intranet
(b) Extranet
(c) World wide web
(d) Local area network.
Answer:
(c) World wide web:
World Wide Web is a system of interlinked documents accessed via internet. The worldwide web is way of accessing information over the medium of the internet.

31. Which one of the following protocols is generally used in internet
(a) HTTP
(b) HPPT
(c) TTPH
(d) TPTH
Answer:
(a) HTTP:
Protocol generally used in Internet is HTTP. (HyperText Transfer Protocol)

32. ………………….. option forbids unwanted e-mails to enter into the Inbox.
(a) Interface
(b) Spam
(c) Protocols
(d) Jargon.
Answer:
(b) Spam:
Unsolicited or Junk mails can be tittered by using the Spam’ option which forbids unwanted mails to enter your inbox.

33. In which year does US Military Started using improved form of email?
(a) 1965
(b) 1974
(c) 1975
(d) 1972
Answer:
(b) 1974:
It was the year 1974 in which US military started using improved form of email.

34. Who is the founder of E-mail?
(a) Merrian
(b) Tomlinson
(c) Aristotle
(d) None
Answer:
(b) Tomlinson:
Tomlinson is called the “father of e-mail and is credited with its invention.

35. What is the watershed year in the history of e-mail mailoeting?
(a) 1976
(b) 1974
(c) 1972
(d) 1970
Answer:
(a) 1976 :
Year 1976 was a waters head year in the history of e-mail marketing. E-mail services was being offered in the commercial packages and per-minute changes were applicable to those using these services.

36. What is the full form of HTTP?
(a) Hydro Text Transfer Protocol
(b) Hyper Text Transfer Protocol
(c) Hyper Text Transfer Process
(d) None of these.
Answer:
(b) Hyper Text Transfer Protocol:
HTTP refers to as HyperText Transfer Protocol

37. Which of the following is the full form of the abbreviation www?
(a) World wide web
(b) World work web
(c) Wide world web
(d) Web worldwide.
Answer:
(a) World wide web:
The abbreviation ‘www’ stands for World Wide Web which is a system of interlinked hypertext documents accessed via the internet. With a web browser, one can view web pages that may contain text, images, videos and other multimedia and navigate between them via hyperlinks.

38. Choose the correct statement:
(a) Messenger and outlook express are a part of web browsers
(b) The specialists prefer programmes like Eudora
(c) E-mail packages help us to compose and forward messages
(d) All the stated options are correct.
Answer:
(c) E-mail packages help us to compose and forward messages:
Option C is the correct statement i.e. E-mail packages helps us to compose and forward messages through the computer.

39. Choose the incorrect option about e-mail services:
(a) E-mail is a replacement of Teleconferencing
(b) E-mail depends on internet connectivity
(c) E-mail cannot be considered a confidential mode of communication
(d) E-mails are not expensive.
Answer:
(a) E-mail is a replacement of Teleconferencing:
Features of E-mail:
E-mail is an electronic mode of message transmission.
⇒ It has become one of the cost-effective modes of fast communication.
⇒ E-mails are delivered very fast from any part of the world.

Note:

• E-mail is not the confidential mode of communication
• It cannot be replaced by teleconferencing
• It cannot be relied in case of emergency
• it is dependent upon internet.

So, option A is not correct statement regarding E-mail. i.e. E-mail Is a replacement of teleconferencing.

40. Unsolicited or junk mails are filtered through the option of:
(a) Packages
(b) Spam
(c) Inbox
(d) Attachments.
Answer:
(b) Spam:
Spam: Unsolicited or Junk mails can be filtered by using the ‘spam’ option which forbids unwanted mails to enter your inbox.

41. Who is the founder of E-mail:
(a) Tomlinson
(b) Aristotle
(c) Meridian
(d) None of the above
Answer:
(a) Tomlinson:
Tomlinson is the founder of E-mail and Is credited with its invention.

42. What is the other name of E – correspondence?
(a) Electronic – correspondence
(b) Email correspondence
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b):
E-correspondence is also called electronic correspondence and E-mail correspondence. Thus options (a) & (b) are correct.

43. Who is called the ‘Father of E-mail’ and is credited with the invention?
(a) Tomlinson
(b) Merriam
(c) Morse
(d) Aristotle.
Answer:
(a) Tomlinson:
Tomlinson is called the ‘father of email’ and is credited with its invention because he chose the ‘@’ symbol to provide an addressing standard in the form of “user@host”, which is in use till date.

44. Choose the incorrect option about E-mail services?
(a) E-mail is a replacement for Tele-conferencing
(b) E-mail can be considered a confidential mode of communication
(c) E-mails are not expensive
(d) E-mails depend on internet connectivity.
Answer:
(b) Service information system:
E-mail can be considered a confidential mode of communication. This statement is incorrect as sensitive information can be easily shared and distributed within a business. An email can be intercepted by a hacker or go on an incorrect e-mail address and wind up in someone’s else inbox.

45. Which of the following is incorrect about the language of an e-mail?
(a) One should not use jargon unless writing to people of one’s own profession
(b) One may freely use abbreviations
(c) One should use words with positive connotations.
(d) Salutation is not necessary.
Answer:
(b) One may freely use abbreviations:
The language of E-mail:

• Write short, crisp and focused paragraphs.
• Use concrete words with positive connotations.
• Do not use abbreviations and acronyms
• Don’t use jargon or slang. It can be used if you are communicating with people of same profession.
• Use short and simple sentences.

46. What is the full form of the abbreviation SIS with respect to communication?
(a) Senior information supervisor
(b) Service information system
(c) Strategic important system
(d) Strategic information system.
Answer:
(d) Strategic information system:
Abbreviation SIS w.r.t. Communication is Security and Intelligence. ServIces SIS are developed in response to corporate business initiative, lise of such communication systems provide business competitive advantage on their competitors as they see provide a good or service in a way that is better than that of their peer.

47. E-mail etiquettes include:
(a) Going into unnecessary details
(b) Watching your tone
(c) Display whatever you have
(d) Being unprofessional.
Answer:
(b) Watching your tone
E-mail etiquettes Include:
→ Mind your manners
→ Watch your tone
→ Be concise
→ Be professional
→ Use correct spelling and proper grammar
→ Wait to fill in the ‘TO’ email address.

48. Which of the following is/are an advantage/advantages of e-mail?
(a) It is cheaper than a letter
(b) It is faster than a letter
(c) Locations do not prove any obstacle in its path
(d) All the stated options are correct.
Answer:
(d) All the stated options are correct.
“Electronic mail” or “e-mail” as it is commonly called the process of sending or receiving a computer file or message by computer modem over telephone wires to a pre-selected “mailbox” or “address” on another computer. E-mail can also be sent automatically to a large number of electronic addresses via mailing lists (through ‘mail-merge option). E-mail messages can range from the simplest correspondence to business presentations, engineering blueprints, book chapters, or detailed contracts. Hence it is cheaper, faster than a letter and location do not create any obstacle.

49. Which of the following protocol is used by the web?
(a) TTPH
(b) TPTH
(c) HTTP
(d) HTPT.
Answer:
(c) HTTP:
The World Wide Web, or simply Web, is a way of accessing information over the medium of the internet. It is an information-sharing model that is built on top of the Internet. The Web uses the HTTP protocol (one of the languages spoken over the Internet) to transmit data. Web services, which use HTTP to allow applications to communicate in order to exchange business logic, use the Web to share information.

50. Which of the following is incorrect about the language of an email?
(a) One should not use Jagran unless writing to people of one’s own profession.
(b) One should use words with positive connotations
(c) Salutation is not necessary
(d) One may freely use abbreviations
Answer:
(d) One may freely use abbreviations:
The use of abbreviations in the Email shall be avoided as far as possible. The statement d is incorrect as freely use of abbreviations should be avoided.

51. Which of the following is a system of interlinked hypertext documents accessed via the internet?
(a) World wide web
(b) Internet
(c) Emails
(d) Extranet
Answer:
(a) World wide web:
World Wide Web is a system of interlinked hypertext documents accessed via the internet.

52. Which of the following is not an advantage of e-mail?
(a) It lacks the personal touch of traditional method of correspondence in business
(b) It is easy to filter
(c) E-mail packages allow us to out, copy and park
(d) In email communication differences in location do not prove to be an obstacle
Answer:
(a) It lacks the personal touch of traditional method of correspondence in business:
Lack of personal touch of traditional method of correspondence is a disadvantage.

53. Advantage of E-mail
(a) Easy to manage
(b) Email is expensive
(c) Can be treated as valuable evidence
(d) Both (a) and (c)
Answer:
(d) Both (a) and (c)
Advantages of an E-mail:

• Easy to manage
• Is Inexpensive
• Easy to filter
• Transmission is secure and reliable.

54. …………….. option forbids unwanted e.mails to enter into the Inbox
(a) Interstate
(b) Spam
(c) Protocols
(d) Jargon
Answer:
(b) Spam: Spam option forbids unwanted e-mails to enter into the Inbox.

55. This began as a American experiment in computer communication technology during cold war and has revolutionized the world?
(a) Fax
(b) Telegram
(c) Internet
(d) Radar
Answer:
(d) Radar: Radar began as a American experiment in computer communication technology during cold war and has revolutionized the world.

56. Causes unnecessary delays file backups storage problem:
(a) Virus
(b) Spam
(c) Attachments
(d) Emotions
Answer:
(a) Virus
These viruses cause unnecessary delay, storage problems, file backups etc. Ineffective consumer search:
A close look at the e-commerce market.

CS Foundation Business Management Ethics and Entrepreneurship Notes