Tag: Business Functions Notes

Business Functions – CS Foundation Business Environment Notes

Introduction:

• A Process or operation that is performed routinely to carry out a part of the mission of an organisation.
• “Business has only two functions – Marketing and Innovation”
• It is also known as business process or operation.
• It refers to the routine activities carried out in an organisation in order to produce a product or to provide a service, thereby helping an organisation to achieve its mission.
• It involves division of labour among persons or departments.
• While carrying out the various business functions, the following points need to be considered.
• It represents what work has been done by the organisation. This concept is used in organisation architecture domain.

(i) Strategy:

• This term ordinarily means something that has to do with war and deception of an enemy.
• It is derived from Greek word ‘Strategos’ meaning ‘the act of the general.
• A company’s strategy consists of the combination of competitive moves and business approaches that managers employ to please customers, compete successfully and achieve organisational objectives.
• “Strategy is the direction and scope of an organisation over the long term which achieves advantages for the organisation through its configuration of resources within a challenging environment to meet the need of markets and to fulfill shareholder’s expectations.”
• It represents the managerial response to changes in business environment

It possess the following features:

• Their formulation is done by top management.
• Their execution is done by middle and lower management.
• Explains managers the way to respond to the changing business environment.
• Effective mobilisation of resources.
• Helps in achieving objectives.
• It is specialized planning to retaliate competitors.
• It redefines direction toward common effort.

Various types of strategies include:
(a) Corporate Strategy: It is concerned with overall business scope and purpose. It is stated in a Mission Statement.

(b) Business Unit Strategy: It is concerned with a particular business unit competing in a specific business environment. It considers decisions regarding choice of product,
competitive advantage, new opportunities, etc.

(c) Operational Strategy: It involves organising each part of business to deliver the above two strategies. It focuses on resources, people, process etc.

(ii) Business Location:

• It relates to the decision about locating a new business.
• ‘Virtual business’ is the business done from home without setting it up anywhere else.

Various factors affecting it are:
(a) Communication: It involves various forms of communication media as well as the transport facilities.

(b) Suppliers: Business supplier of any raw material must be closely related in order to reduce the cost.

(c) Labour: Business which is labour intensive is preferred to be situated in area of low wages labours.

(d) Government Assistance: Government provides various loans and subsidies for setting up new business in some backward areas.

(e) Market, Customer & Population: A start-up may need to be located near particular centers of population.
Example : If the product is for an old aged people then it is important to be located where there is a sufficient population of such people.

“Some poorer areas of UK are known as ‘Assisted areas’
Example : Wales, North-East England etc.”

(f) Type of Population: Business should be located in the market where the population is of the kind for which its product is meant.

(iii) Decision Making:

• It might be regarded as a problem solving activity which is terminated, when a satisfactory solution is reached.
• It refers to an emotional, mental or reasoning process which involves selection of best course of action among the available alternatives.
• It can be rational or irrational.
• It can be based on explicit or tacit assumptions.

This is extended form of planning Hence, it is only efficient when it is supported by process of planning.

(iv) Government Policy:

• Some models of business ignore government.
• Various government policies in form of legislative restrictions, and regulations must be adhered to while carrying out various business functions.
• Various business functions are discussed here after.

Planning:
“The process of planning covers a wider range of activities, all the way from initially sensing that something needs doing to firmly deciding who does what when…. It is more than logic or imagination of judgement. It is a combination of all these that culminates in a decision – a decision about what should be done.

The decision phase of planning is so important that we shall use the expression ‘decision-making’ as a synonym of planning.” “The planning function determines organisational objectives and the policies, programmes, schedules, procedures, and methods for achieving them. Planning is essentially decision-making since it involves choosing among alternatives and it also encompasses innovation. Thus, planning is the process of making decisions on any phase of organised activity.”

• “Chance favors the prepared mind.”
• It refers to mapping out exactly various steps that are required to achieve a.particular goal of an enterprise.
• It is a primary function of Management.
• It is an intellectual process that involves determination of a particular course of action.
• The main principle of planning is that adequate planning or mental effort must take place.

Budgetary Control:
1. Budget: A Budget is a device used for managerial control. Mathematical and quantitative presentation of your goals in a tabular manner.

2. Budgeting: This process initiates with the establishment of specific targets of performance and is followed by executing plans to achieve such desired goals and comparing actual results with the targets of performance/goals from time to time. Budgeting is the formulation of plans for a given future period in numerical terms.

3. “Budgetary control: Budgets are quantitative statements that prescribe standards, set in advance.
“The establishment of budgets relating the responsibilities of executives to the requirements of a policy, and the continuous comparison of actual with budgeted results, either to secure by individual action the objective of that policy, or to provide a basis for its revision.”

Institute of Cost & Management Accountant (ICMA)
It has following features:

• Prepared for a future time period.
• Prepared for attaining some pre-determined objectives.
• Financial and for quantitative statement.
• Its components are- Income, Expenditure and Capital Employment.
• It is goal oriented.

Types of Budget
(I) Based on time:

Long-term budget: The budget designed by management for a long-term (i.e. 3 to 10 years)
Short-term budget: Budget which is prepared for a period ranging from 1 to 3 years.

(II) Based on capacity:

Fixed budget: The budget remains constant regardless of the level of activity, is called as fixed budget.
Flexible budget: The budget which changes with the change in level of activities is a flexible budget. It identifies the fixed cost, semi-variable cost and variable cost, to show the expected results at different volumes.

(III) Based on scope:
(i) Functional Budget:

• Sales Budget : Budget used to determine, quantity of anticipated sales and expected selling price per unit.
• Production Budget : It is prepared to indicate the production for the specified period and is expressed in the units of output produced.
• Materials Budget : The budget prepared ‘to show the quantities of direct material’ and ‘raw material required to manufacture the finished product.
• Purchase Budget : Budget is designed to estimate the quantity and value of different items to be bought at different points of time, considering the production schedule and inventory required.
• Cash Budget : It highlights the cash needed by the business in a specified period.

(ii) Master Budget: It is an integrated budget that reflects the estimated profit and loss and financial position. It is created after functional budget by financial officer.

(IV) Based on receipts and expenditure:

• Capital budget: Budget takes into account the estimated capital receipts and expenditure for a specific period.
• Revenue budget: The budget that covers all the revenue receipts and expenses of a particular financial year.

It provides following advantages to a business enterprise:

• Helps in attainment of pre-determined organisational goals.
• Optimum allocation and utilisation of resources.
• Facilitates management by exception.
• Source of motivation to employees.
• Helps in achieving co-ordination among various departments.
• It focuses on specific and time bound targets.

Research and Development:

• Popularly referred as ‘R & D’
• Research is required in order to develop and/or improve products and methods.
• R & D plays a vital role in maintaining the business.
• Research may either be pure research or applied research.
• Pure/Basic/Fundamental Research increases knowledge and have no immediate or direct commercial value.
• Applied Research aims at producing definite results.

Finance:

• It is the lifeblood of an organisation.
• It can be simply stated as money.
• It represents short-terms and long-term requirements of any organisation.
• Business Finance: refers to the money required for carrying out the business activities.

Financial management:
Definition of finance : “Finance may be defined as that administrations area or set of administrative functions in an organisation may have the means of carrying out its objectives as satisfactorily as possible.”

Definition of Business Finance : “Business finance include those business activities which are concerned with the acquisition and conversion Of capital funds in meeting the financial needs and overall objectives of business enterprise.” “Financial management is the activity concerned with planning raising, controlling and administering of funds used in the business.”

“Financial management is that area of business management devoted to a judicious use of capital and a careful selection of source of capital in order to enable a spending unit to more in the direction of reaching its goals.”

“Financial management is the operational activity of a business that is responsible for obtaining and effectively utilising the funds necessary for efficient operations.”

• Financial Management : refers to the management of limited financial resources that the organisation has to its utmost advantage.
• Financial Management aims at reducing the cost of finance.
• It does not involves only fund raising but involves as to how these funds are most effectively utilised.

Nature Significance and Scope of Financial Management : Generally it should be seen that finance is arranged at the lowest possible cost for the business. Then we can say that more economically the finances is availed, better it will be for the business.

Such decision are required to be taken in the interests of the shareholders.

Financing Decisions:

• It refers to raising of finance from long term and short term sources.
• Capital Structure Decisions relates to raising finance from long term sources.
• Working Capital Decisions relates to raising finance from short term sources.
• Funds can be raised from external sources like shares, debentures etc.
• It can also be raised from internal sources like retained earning.
• Cost of raising finance has to be opted for before selecting any source.

Investment Decisions:

• It refers to deciding the amount of investment out of the available finance on long term or short term basis.
• Capital Budgeting refers to investing funds for long term i.e. in fixed assets.
• Working Capital Management refers to investing funds for short term i.e. current assets.
• Reversal of capital budgeting decisions is riot possible since it involve huge capital outflow.

Dividend Decisions:

• A decision determining the division of earning between payment of dividend to shareholders and retained earning.
• It refers to deciding the part of profits to be distributed as dividend to the shareholders.
• Shareholders demand higher dividend.
• Management wants to retain higher profit for business needs.
• Thus, management is required to make an appropriate dividend policy.
• Financial Planning: Refers to pre-estimation of financial needs of an organisation to ensure the availability of right amount of finance at right time.
• Excess funds add to cost of financing.
• Deficit funds does not allows the firm to honor its commitments timely.

Supply Chain Management (SCM):

• By sharing data upstream (with a company’s suppliers) and downstream (with a company’s client) SCM application have potential to improve time to market, reduce costs, and allow all parties in supply chain to better manage current resource and plan for future needs.
• It refers to the process of planning, implementing, and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible.
• It spans movement and storage of raw materials, work in progress inventory and finished goods from point of origin to point of consumption.
• It integrates flow within and among the companies.
• Its aim is to reduce the inventory in order to lower the holding cost.
• Web based Application Service Providers (ASP) provides all the SCM services to companies.

It involves 3 flows:

• Product Flow : It means movement of goods from supplier to customer or vice-versa.
• Information flow : It means transmission of orders and updating of delivery status.
• Finance Flow : It means various payment schedules, terms of payment, credit terms etc.

It involves use of 2 software

• Planning Application : It involves uses of advanced algorithms to determine the best way to fill and order.
• Execution Application : It involves track of physical status of goods, material management and other financial information.

It has the following objectives:

• Increasing efficiency
• Low cost
• Enhanced flexibility
• Improved customer service
• Optimization of value chain.

SCM includes managing supply and demand, sourcing raw materials, order management, delivery, etc..

It performs the following function:

• Managing demand and supply
• Sourcing raw materials
• Manufacturing
• Assembly
• Warehousing
• Inventory tracking
• Order entry
• Order Management
• Distribution
• Delivery to the customer.

Transformation Process refers to the process of business activities required to convert the organisation’s resources into products and services demanded by the customers.

• Production and Operations management (POM) refers to various methods of handling the conversion or production process.
• It involves the following methods:

(i) Job Method:

• Whole work is handled by a worker or group of workers firm production and large construction projects
• Low technology job enables the company to include customer’s specific requirements as job processes.
• Example : hairdressers etc.
• High technology job requires proper project management or control which involves (a) clear objectives to be defined, and (b) Proper decision making process.
• Example : Films production, large construction projects, etc.

(ii) Batch Method:

• Each work is divided into specific parts or operations.
• it helps in achieving:
• Labour specialisation
• High equipment utilisation
• Low capital expenditure
• It causes following problems:
• Poor work flow
• Build up of “work in progress” or stocks.
• Example : Production of electronic components

(iii) Flow Method:
1. It refers to the method in which the task is performed on continuos basis i.e. the material processing is continuous and progressive.

2. It aims at:

• Improving material & work flow
• Reducing the need for skilled labour
• Completing the work faster

3. Following requirements are to be met for its proper working:

• Constant demand of company’s product
• Standardized product and/or production
• Specific materials should be used
• Materials used must be delivered timely
• Each operation must be carefully defined and recorded in detail
• Output of each operation must be of standard quality.
• Example : Production of motor cars, televisions etc.

Information and Communication Technology function

• It’s objective is to gain advantage from modern technology.
• Focuses on improving business processes and making them cost effective.
• Also aims at reaching new customers and launching new products or services.

Market:
Definitions:
(i) Traditional Concept:
“Marketing may be defined as the performance of business activities that directs the flow of goods and services through producers to customers.”

(ii) Modern Concept:
“Marketing is the process of discovering and translating consumer needs and wants into products arid services and in turn making It possible for more and more of these products and services.”

• Market refers to a mechanism through which buyers and sellers actually meet to effect purchase and sales of goods and services.
• Marketing refers to identifying the customers, determining their needs and wants, delivering them products to satisfy those needs and wants and keeping the customers.

It involves two concepts:

1. Traditional
2. Modern

Marketing process starts with marketing research and ends with the customer buying the company’s product.

• Marketing is different from selling.
• Marketing Mix:

Definitions:
Culliton conceived of marketeer as the ‘mixer of ingredients.’
4P’s of Marketing ‘E. Jerome McCarthy’ was the first person to suggest the four P’s of marketing:

• Product
• Price
• Place (distribution)
• Promotion

“Marketing mix is the term that is used to described the combination of the four inputs that constitute the core of an organisation’s marketing system. These four elements are the product offering, the price structure, the promotion activities and the distribution system.”

Difference between Selling and Marketing

Basis	Selling	Marketing
Focus	On producer	On customers
Demand	Assumes demand for products	Generates demand for products
Supremacy	Producer is supreme	Customer is supreme
Process	Involves exchange of goods and services	Involves satisfying customer needs
Law	Follows the law of Caveat Emptor	Follows the law of Caveat Vendor
Perspective	Short perspective with profit maximisation	Long perspective emphasising growth and stability

Marketing Mix : refers to the ingredients or the tools or the variables which the marketeer mixes in order to interact with a particular market.

“Marketing mix are the set of marketing tools that first uses to purchase its marketing objectives in the target market.”

A planned mix of the controllable elements of a products marketing commonly terms.

• Product
• Price
• Place
• Promotion

Nell H. Borden: Borden’s marketing mix includes the following elements:

• Product Planning
• Branding
• Advertising
• Packaging
• Servicing
• Pricing
• Distribution Channels
• Promotion
• Displays
• Physical Handling

Various marketing functions are classified into 2 categories:

• General Functions
• Specific Functions

General functions includes the following –

Marker and Consumer Research	Obtaining information about the current market situation and future perspectives
Permanent Adaptation	Employment of all the available resources in order to satisfy the market demands.
Full satisfaction of demand	By meeting the market requirements, it surpasses its competitors.
Maximization of economic efficiency	Optimization of ail economic processes like production, transportation, etc.

Specific Functions varies from industry to industry

Various Marketing Principles Include:

• Market knowledge
• Producing what it can sell, not to sell what it produces
• Studying consumer preferences
• Marketing should be done for the company, not company for marketing

Human Resource Management (HRM):

• It refers to getting things done through people.
• Market requirement for skilled and talented people is competitive and expensive.
• The aim is:
• To ensure that at all the times the business is correctly staffed by the right number of people with the skills relevant to the business needs.”

It possess the following features

• Pervasive nature as it is present in all enterprises
• Concerned with people
• Focus on results rather than rules
• Enables employees to develop their potential
• Provide competent and well-motivated employees.
• Maintains cordial relations
• Encourages the employees
• Assigns jobs to people
• Multi-disciplinary activity
• People at work, individual and groups

Its objectives are as follows:

• Achieving goals of both people and the organisation
• Effective utilisation of people
• Maintain high moral of employees
• Identity and satisfy the human needs
• Well-trained employees
• Job satisfaction to employees
• Maintain quality of work life
• Enhances employee’s capabilities ,
• Overall personality development of each employee –
• Ensure ethical and social responsibility of business toward society..
• Employers with precision and clarity

Scope:
HRM needs to be integrated with the overall strategy to ensure effective utilization of people and gaining better results for the organisation.

Services –
Legal Department – in any organization plays following roles:

1. Legal advisor
2. Discuss the potential legal issues.
3. Offer training and help to employees for keeping them up to date regarding workplace laws.
4. Solving customer’s complaints and grievances.
5. Represents company in the law suit filed against it.
6. Handles filing of patents and other legal documents with the official agencies.

Company Secretary performs various secretarial functions as follows:

1. Conducting Board Meetings
2. Conducting General Meetings of Shareholders
3. Representing organisation in various registration and legal matters
4. Managing procedural formalities

Various accounting functions to be performed by business are as follows:

1. Record keeping
2. Fulfilling various legal requirements
3. Protecting the business properly.
4. Communicating the business results to interested parties.

Accounting: Accounting is the function of business that gathers data and information from all the different aspects of the business. List of accounting functions are:

1. Record keeping
2. Protect business property
3. Legal requirement
4. Communicating the Results

Administration Department is set up to ensure that all office work is completed timely. It performs the following functions :

1. Foster regional economic development
2. Controls external communications
3. Supply of security for the premises
4. Creation of more effective plans
5. dewing of governmental affairs
6. Enhancing regions renewable/reusable resources

Information and Communication Technology Department helps in implementing the modern technology in business. A good ICT department will increase the efficiency of a business and there by profits also.

Social Functions:
Business was only concerned with profit maximisation as its primary aim with little or no attention to social responsibility. Some businessmen discharged their religious duty by giving grants in charity mainly for education, welfare of the poor, etc. Charity transformed into small but valuable acts of philanthropy by businessmen on socio-economic issues of concern to them. These philanthropic acts were generally beyond the scope of the business operations and qualified as individual act towards the welfare of the society.

Evolution:
Social function of Business was not an alien concept but existed in different forms such as charity, sponsorship or philanthropy. The development of CSR is divided into four phases in India based on country’s political and economic environment. Different CSR practices moved parallel with India’s historical development. Since social responsibility was made a mandate in 2013 a fifth phase is added to the CSR evolution phases in India.

Phases of CSR practice in India:

1. Phase – Key Thrust
2. Phase 1 (Till 1914) – CSR motivated by charity & philanthropy
3. Phase II (1914-1960) – CSR for India’s social development
4. Phase III (1960-1980) – CSR under paradigm of mixed economy.
5. Phase IV (1980-2013) – CSR as interface between philanthropic and business approach
6. Phase V (2013 onwards) – Government made CSR spending mandatory for sizable firms

Social responsibility of business was professed internationally and linked to sustainable development. In this context it is stated that something that comes from people should go back to the people. This is necessary to complete the cycle which is perhaps the only way to. sustainable development. To achieve the goal of sustainability Elkington in 1994 coined the term Triple Bottom Line in an effort to expand the People. Planet and Profit agenda by more fully integrating it into business practices.

1. People (human capital) signify fair and beneficial business practices towards labour and the community and region in which business is conducted. Company conceives a reciprocal social structure in which the well-being of corporate, labour and other stakeholder interests are independent.

2. Planet refers to sustainable environmental practices. A TBL company endeavours to benefit the natural order as much as possible or at the least do no harm and curtail environmental impact. It endeavours to reduce its ecological footprint by, among other things, carefully managing its consumption of energy and non-renewables and reducing manufacturing waste as well as disposing it in a safe and legal manner. A triple bottom line company does not produce harmful or destructive ‘ products such as weapons, toxic chemicals or batteries containing dangerous heavy metals for example.

3. Profit on the other hand refers to the economic value created by the organisation for the immediate economic environment. It differs from the traditional accounting definition of profit. In the original concept, within a sustainability framework, the ‘profit’ aspect needs to be seen as the real economic benefit enjoyed by the host society. It is the real economic impact the organisation has on its economic environment.

Meaning and Understanding:
CSR is also defined as the obligation of businessmen to pursue those policies, to make those decsions, or to follow those lines of action which are desirable in terms of the objectives and values of our society. A socially responsible firm is one whose managerial staff balances a multiplicity of interests. Instead of striving only for larger profits for its stakeholders, a responsible enterprise also takes into account its employees, suppliers, dealers, local communities and the nation”.

Benefits of Social Responsibility:
The following are some of the implications of discharge of social responsibility:

• Research has been instrumental in providing evidence to the fact that companies who discharge social responsibility have positive impact on their performance.
• Firms discharging socially responsible behaviour are able to build a good social image of their brand and sell more.
• Socially responsible behaviour provides legitimacy to the existence of the firm.
• Companies recognising and integrating social functions enhance their reputation/goodwill and position themselves as responsible corporate citizens.

Regulatory Framework in India:
Section 135, for the first time made social responsibility a mandate for all corporations having net worth of rupees five hundred crore or more, or turnover 6f rupees one thousand crore or more or a net profit of rupees five crore or more during any financial year.

Such stated companies are required to constitute a corporate social responsibility committee consisting of three or more directors of which at least one should be an independent director. This committee is entrusted with the task of formulating a social responsibility policy which spells out the activities to be undertaken as part of CSR. Schedule VII provides a list of activities which may be included by companies in their CSR policies. These activities include:
1. Eradication of hunger, poverty, malnutrition, promoting health care including preventive health care and sanitation and making available safe drinking water.

2. Promoting education, including special education and employment enhancing vocational skills especially among children, women, elderly and differently able and livelihood enhancement project.

3. Promoting gender equality, empowering women, setting up.homes and hostels, for women and orphans, setting up old age homes, day care centres, and such other facilities for senior citizens and measures for reducing inequality faced by socially and economically backward groups.

4. Ensuring environmental sustainability, ecologicai balance, protection of flora and fauna, animal welfare, agro-forestry, conservation of natural resources and maintaining the quality cf Soil, air, water.

5. Protection of national heritage, art and culture including restoration of buildings and sites of historical importance and works of art, setting up of public libraries, promotion and development of traditional arts and handicrafts.

6. Measures for the benefit of armed forces veterans, war widows, and their dependents.

7. Training to promote rural sports, nationally recognised sports, Paralympic sports and Olympic sports.

8. Contribution to Prime Minister’s National Relief Fund or any other fund set by Central Government for socio-economic development and relief and welfare of Scheduled Castes, Scheduled Tribes, other backward classes, minorities and women.

9. Contributions or funds provided to technology incubators located within academic institutions which are af proved by the Central Government.

10. Rural Development projects.

The Board of such Companies are required to ensure that the company spends in every financial year, at least 2% of the average net profit of the company made during the three immediately preceding financial years, in pursuance of the Corporate Social Responsibility Policy. If the company fails to spend such amount, the Board is required to furnish reason for the same in its report.

Corporate Social Responsibility activities can be discharged through any of the methods:

• Directly on its own.
• Through its own non-profit foundation set up so as to facilitate this initiative.
• Through independently registered non-profit organisations that have a record of at least three years in similar such related activities.
• Collaborating or pooling their resources with other companies.

Multiple Choice Questions

Question 1.
_________ involves division of labour among multiple persons and/or technologies
(a) Business function
(b) Business process
(c) Business operation
(d) All of the above
Answer:
(d) All of the above

Question 2.
‘Strategos’ is _________.
(a) ‘the science of the general’
(b) the act of the general
(c) a Greek word
(d) Both (b) and (c) above.
Answer:
(d) Both (b) and (c) above.

Question 3.
Formulating strategies is a job of:
(a) Top Management
(b) Middle Management
(c) Lower Management
(d) None of these
Answer:
(a) Top Management

Question 4.
_________ strategy is stated in the company’s mission statement.
(a) Business unit
(b) Operational
(c) Business level
(d) Corpo-ate
Answer:
(d) Corpo-ate

Question 5.
Business done from home is known as:
(a) Real Business
(b) Artificial Business
(c) Virtual Business
(d) Transparent Business
Answer:
(c) Virtual Business

Question 6.
Factors affecting business location does not include the following:
(a) Labor
(b) Advertisement facilities
(c) Suppliers
(d) Communication facilities
Answer:
(b) Advertisement facilities

Question 7.
Some areas of UK like whales, North-east England etc. are known as:
(a) Underdeveloped areas
(b) Developing areas
(c) Poor areas
(d) Assisted areas.
Answer:
(d) Assisted areas.

Question 8.
Decision making is a process _________.
(a) Emotional
(b) Rational
(c) Mental
(d) All of the above
Answer:
(d) All of the above

Question 9.
_________ is a primary function of management
(a) Planning
(b) Budgeting
(c) Research & Development
(d) Organising
Answer:
(a) Planning

Question 10.
_________ is a device used for managerial control.
(a) Planning
(b) Decision – making
(c) Financial Management
(d) Budget
Answer:
(d) Budget

Question 11.
Budget is prepared for the past work period.
(a) True
(b) False
(c) Partly true
(d) Partly false
Answer:
(b) False

Question 12.
Following is not a component of Budget:
(a) Saving
(b) Income
(c) Expenditure
(d) Capital employment.
Answer:
(a) Saving

Question 13.
_________ research has no immediate or direct commercial value.
(a) Basic
(b) Fundamental
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 14.
Resources are always, _________ and wants are always _________
(a) Limited, Unlimited
(b) Unlimited, Limited
(c) Limited, Limited
(d) Unlimited, Unlimited
Answer:
(a) Limited, Unlimited

Question 15.
Financial Management comprises of:
(a) Financing decisions
(b) Investment decisions
(c) Dividend decision
(d) All of the above.
Answer:
(d) All of the above.

Question 16.
Reversal of _________ decision is not possible.
(a) Capital Budgeting Decision
(b) Capital Structure Decision
(c) Working Capital Decision
(d) Dividend Payment Decision.
Answer:
(a) Capital Budgeting Decision

Question 17.
Excess funds lessens the financing cost.
(a) True
(b) False
(c) Partly true
(d) Partly false
Answer:
(b) False

Question 18.
Selling is a _________ concept while marketing is a concept.
(a) wide, narrow
(b) narrow, wide
(c) small, big
(d) big, small
Answer:
(b) narrow, wide

Question 19.
Law of caveat emptor applies to :
(a) Marketing
(b) Selling
(c) Both (a) arid (b)
(d) None of the above.
Answer:
(b) Selling

Question 20.
Marketing mix does not include the following P:
(a) Planning
(b) Product
(c) Price
(d) Place
Answer:
(a) Planning

Question 21.
_________ refers to getting the things done through others.
(a) Scientific Management
(b) Personnel Management
(c) Financial Management
(d) Marketing Management.
Answer:
(b) Personnel Management

Question 22.
SCM Stands for:
(a) Supply Chain Material
(b) Source Concept Management
(c) Supply Choice Material
(d) Supply Chain Management
Answer:
(d) Supply Chain Management

Question 23.
Marketing mix involves:
(a) Consumers
(c) Retailers
(b) Financing
(d) Products/Service
Answer:
(d) Products/Service

Question 24.
ASP stands for:
(a) Application service provider
(b) Application source provider
(c) All service provider
(d) Application service planning.
Answer:
(a) Application service provider

Question 25.
_________ flow refers to order transmission and updation of delivery status.
(a) Product flow
(b) Service flow
(c) Information flow
(d) Finance flow
Answer:
(c) Information flow

Question 26.
POM stands for:
(a) Product and Operations Manager
(b) Product and Operational Management
(c) Production and Operations Management
(d) Production and Operational Management.
Answer:
(c) Production and Operations Management

Question 27.
Production of chocolates is an example of:
(a) Flow Method
(b) Job Method
(c) Batch Method
(d) Group Method
Answer:
(a) Flow Method

Question 28.
Which one of the following is not a feature of a strategy.
(a) It is a specialized planning to retaliate competitors
(b) It is the job of middle level and lower level management
(c) It redefines directions towards common efforts
(d) It explains manager response to changing business environment
Answer:
(b) It is the job of middle level and lower level management

Question 29.
Decisions regarding choice of product, gaining competitive advantage etc. are a part of _________.
(a) Corporate strategy
(b) Business unit strategy
(c) Operational strategy
(d) All of the above
Answer:
(b) Business unit strategy

Question 30.
Which of the following strategy focuses on issues of resources, process, people etc?
(a) Corporate strategy
(b) Business unit strategy
(c) Operational strategy
(d) All of the above
Answer:
(c) Operational strategy

Question 31.
Planning is an _________.
(a) Intellectual process
(b) Mechanical Process
(c) One time activity
(d) All of the above
Answer:
(a) Intellectual process

Question 32.
Which one of the following statements is not true regarding a Budget?
(a) It is a financial statement
(b) It is a quantitative statement
(c) It may include income expenditure and employment of capital
(d) None of the Above
Answer:
(d) None of the Above

Question 33.
A Budget includes _________.
(a) Income
(b) Expenditure
(c) Employment of Capital
(d) All of the Above
Answer:
(d) All of the Above

Question 34.
In determining a business location which of the following factors should be considered _________.
(a) Communication facility
(b) Government Assistance
(c) Both (a) and (b)
(d) None of the above
Answer:
(c) Both (a) and (b)

Question 35.
Which one of the following is not a flow of SCM?
(a) Entrepreneurship Flow
(b) Product Flow
(c) Information Flow
(d) Finance Flow
Answer:
(a) Entrepreneurship Flow

Question 36.
The activity of turning the resources into products and services is called as:
(a) Supply Chain Management
(b) Planning
(c) Directing
(d) Transformation Process
Answer:
(d) Transformation Process

Question 37.
Which of the following is not a feature of Batch Method?
(a) It requires the division of work into parts or operations
(b) It does not result in building up significant work in process
(c) It results in specialisation
(d) It focuses on achieving high utilization of resources
Answer:
(b) It does not result in building up significant work in process

Question 38.
Which of the following is not a requirement of Flow Method _________.
(a) There must be substantially constant demand
(b) The product must be standardised
(c) Division of work into parts or operations
(d) All the operations must be carefully defined
Answer:
(c) Division of work into parts or operations

Question 39.
Job Method includes:
(a) Low Technology jobs
(b) High Technology jobs
(c) Neither (a) nor (b)
(d) Both (a) and (b)
Answer:
(d) Both (a) and (b)

Question 40.
Which one of the following is not a feature of selling?
(a) It has a long-term perspective
(b) It considers profit as a sole motive
(c) It is based on the law of Caveat Emptor
(d) It focuses’on producers
Answer:
(a) It has a long-term perspective

Question 41.
Which one of the following is not a feature of marketing _________.
(a) It focuses on customers
(b) It considers product identification and customer satisfaction
(c) It follows the law of Caveat Vendor
(d) It has a short term perspective
Answer:
(d) It has a short term perspective

Question 42.
Which of the following is not a general function of Marketing
(a) Market and consumer research
(b) Temporary Adoption
(c) Full Satisfaction of demand
(d) Maximising of economic efficiency
Answer:
(b) Temporary Adoption

Question 43.
Which one of the following is not a feature of HRM _________.
(a) It is pervasive in nature
(b) Helps in motivating the employees
(c) It is a multidisciplinary activity
(d) It focuses on rules
Answer:
(d) It focuses on rules

Question 44.
Which of the following is not a function of a Company Secretary?
(a) Conducting the Statutory meetings of the company
(b) Liaisoning and managing procedural formalities
(c) Communicating the results to the interested parties
(d) Representing the organisation for registration of company, change of name etc.
Answer:
(c) Communicating the results to the interested parties

Question 45.
The Accounting function includes _________.
(a) Communicating results
(b) Protecting the business property
(c) Liaisoning and managery procedural formalities
(d) Both (a) & (b)
Answer:
(d) Both (a) & (b)

Question 46.
The term ICT stands for _________.
(a) Internet Communication Tapping
(b) Initial Corporate Tax
(c) Insurance, Cartage and Transportation
(d) Information and Communication Technology
Answer:
(d) Information and Communication Technology

Question 47.
Borden’s Marketing Mix does not include _________.
(a) Product Planning
(b) Penetrating
(c) Promotion
(d) Advertising
Answer:
(b) Penetrating

Question 48.
CSR stands for _________.
(a) Customer Satisfaction Ratios
(b) Corporate Sales Returns
(c) Customer Sales Ratios
(d) Corporate Social responsibility
Answer:
(d) Corporate Social responsibility

Question 49.
CSR is based on Theory _________.
(a) Stakeholder
(b) Involvement
(c) Ethical
(d) Marketing
Answer:
(a) Stakeholder

Question 50.
In which dimension of CSR responsibility would you classify the issue of recycling and non wasteful packaging?
(a) Consumer
(b) Social and community involvements
(c) Physical environment
(d) Employee relations
Answer:
(c) Physical environment

Question 51.
Which of the following is not a criticism of CSR _________.
(a) CSR is too costly
(b) CSR encourages cynicism
(c) CSR leads to enhanced brand reputation
(d) CSR is misguided
Answer:
(c) CSR leads to enhanced brand reputation

Question 52.
Which of the following statements best describes Corporate Social Responsibility?
(a) A corporation’s requirement to make as much profit as possible.
(b) A corporation’s obligation to society that goes beyond the requirements of the law and economics to take into account the social and environmental impact of its decisions.
(c) A corporation’s obligation to consider the impact of its decisions on the environment.
(d) The duty of care a corporation has to its employees and customers.
Answer:
(b) A corporation’s obligation to society that goes beyond the requirements of the law and economics to take into account the social and environmental impact of its decisions.

Question 53.
Which of the following form part of the business case for CSR?
(a) Better motivated staff reduce operating costs.
(b) Increased brand value and reputation.
(c) The maintenance of the ‘licence to operate’.
(d) All of the options given.
Answer:
(d) All of the options given.

Question 54.
The moral case for CSR, i.e. that it is the right thing to dc, is justified by which of the following arguments?
(a) That the corporation is a creation of society and should therefore serve its needs.
(b) That the corporation is a legal creation and therefore cannot be a moral agent.
(c) Large corporations do not have the power or resources to address society’s problems.
(d) Business decisions will have social and environmental consequences which will be addressed by governments.
Answer:
(a) That the corporation is a creation of society and should therefore serve its needs.

Question 55.
The most influential theory of corporate responsibility of the past century is:
(a) The moral minimum model
(b) The classical model.
(c) The social contract theory
(d) The stakeholder theory.
Answer:
(b) The classical model.

Question 56.
Which concerns does CSR address?
(a) Moral & Ethical
(b) Social & Environmental
(c) Legal & Regulatory
(d) Monetary & Profit
Answer:
(b) Social & Environmental

Question 57.
Which of following stakeholders are interested in CSR?
(a) customers
(b) investors
(c) employees
(d) all of the above
Answer:
(d) all of the above

Question 58.
What is the primary purpose of budgeting?
(a) Planning
(b) Control
(c) Organizing
(d) Direction
Answer:
(b) A widely used device for managerial control is the budget. Moreover, it has sometimes been assumed that budgeting is the device for accomplishing control. Thus, the primary purpose of budgeting is control.

Question 59.
These influences the choice of location of business:
(a) Labour
(b) Government Assistance
(c) Population
(d) All of the above
Answer:
(d) Various factors affecting the business locations are:

• Communication and transport facilities.
• Location of business suppliers.
• Labour requirement.
• Government assistance.
• Type of population.

Thus, all the given options influences the choice of location of business.

Question 60.
Car manufacturing is a :
(a) Line production process
(b) Flow production
(c) Batch production
(d) None of the above.
Answer:
(b) Flow method of production refers to the method in which the task is performed on continuous basis i.e. the material processing is continuous and progressive.
Example : production of motor cars, televisions etc.

Question 61.
What is the chief work done by top authorities in structure of management?
(a) Decision-Making
(b) Recruiting Manpower
(c) Holding Meeting
(d) Selling Products
Answer:
(a) Decision making is regarded as the mental processes resulting in the selection of action among alternative scenarios. Thus, it is a reasoning or emotional process which is the chief work done by the top authorities.

Question 62.
Which one of the following strategy deals with day-to-day activities of a business?
(a) Corporate strategy
(b) Operational strategy
(c) Business unit strategy
(d) None of the above.
Answer:
(b) Corporate Strategy is concerned with the overall business scope and purpose. Business unit strategy is concerned with a particular business unit competing in a specific business environment. Operational strategy involves organising each part of the business to deliver the above two strategies. It focuses on people, processes, etc. Thus, the strategy which deals with the day to day activities of a business is the operational strategy.

Question 63.
Which level of management is responsible for strategic planning in an organisation?
(a) Lower level management
(b) Middle level management
(c) Top level management
(d) All of the above.
Answer:
(c) Strategy is the direction and scope of an organisation over the long term. It reflects managerial response to changes in business environment. Since it involves various aspects relating to planning and decision-making, top level management is responsible for strategic planning of an organisation.

Questions 64.
Which one of the following is the responsibility of human resource management?
(a) To ensure respect for individual employer
(b) To ensure reconciliation of individual goals with those of the organisation
(c) To achieve and maintain high morals among the employees
(d) All of the above.
Answer:
(d) Various objectives of human resource management are as follows:

• Achieving goals of both people and the organisation.
• Effective utilisation of people.
• Maintaining high moral of employees.
• Identify and satisfy the human need.
• Well trained employees.
• Job satisfaction to employee’s.
• Maintain quality of work life.
• Enhances employee’s capabilities.
• Overall personality development of each employee.
• Ensure ethical and social responsibility of business towards society.

Question 65.
Marketing is a concept than selling.
(a) Narrow
(b) Older
(c) Broader
(d) None of the above
Answer:
(c) Marketing and selling are not synonymous. Selling is a narrow concept which involves transfer of goods or services from producers to consumers. Whereas marketing is a wide concept which emphasizes on identifying consumer needs and providing want satisfying products or services.

Question 66.
Which one of the following is not a part of ‘marketing mix’?
(a) Planning
(b) Product
(c) Price
(d) Place.
Answer:
(a) [Marketing mix is the combination of four inputs which constitute the core of a company’s marketing system, i.e. the product, the price structure, the promotional activities and distribution system.]
Thus, Planning is not a part of marketing mix.

Question 67.
In marketing, a distinctive group of consumers is known as:
(a) A class
(b) A segment
(c) An emerging market
(d) None of the above.
Answer:
(b) Marketing is the process of discouraging and translating consumer needs and wants into products and services and in twin making its possible for more and more of these products and services. A distinctive group of consumer in marketing process is known as a -segment. Market segmentation divides the consumers into distinct groups or segments.

Question 68.
Car servicing is an example of _________
(a) Batch processing
(b) Job processing
(c) Flow processing
(d) Contract processing.
Answer:
(b) Job method is a method of handling low as well as high technology jobs where whole work is handled by a worker or group of workers. Low technology jobs enables the company to include customers specific requirements as job processes. Thus, car servicing is an example of job processing as it is concerned with specific requirements/problems of the customer.

Question 69.
Which of the following type of budget is prepared to assess the level of inventories, receivables etc.?
(a) Material Budget
(b) Profitability Budget
(c) Cash Budget
(d) Working Capital Budget.
Answer:
(d) Working Capital Budget specifies the available .working capital i.e. investment in current assets like inventory, debtors, receivables etc. at different points of time

Question 70.
Which of the following strategy focuses on issues of production processes, material, etc.?
(a) Operation Strategy
(b) Business Unit Strategy
(c) Corporate Strategy
(d) Marketing Strategy.
Answer:
(a) Operational strategy is concerned with how each part of the business is organised to deliver the corporate and business – unit level strategic direction. Operational strategy therefore focuses on issues of resources, processes, people, material etc.

Question 71.
Generally is responsible for complying procedural formalities relating to corporate restructuring in a company _________.
(a) Finance function
(b) Marketing function
(c) Secretarial function
(d) Administration function.
Answer:
(c) Various secretarial functions involves:

• Conducting Board meetings
• Conducting General meetings of shareholders
• Representing organisation in various registration and legal matters.
• Liaising and managing procedural formalities pertaining to re – structuring, change of name, shifting of registered office, etc.

Therefore, Secretarial Function is responsible for complying procedural formalities relating to corporate restructuring in a company.

Question 72.
Which of the following is not an accounting function:
(a) Maintaining accounts in compliance with Accounting Standards
(b) Arranging for finance
(c) Journalisation and preparation of final accounts
(d) Attrition monitoring.
Answer:
(b) Accounting is- the function of business that gathers data and information from ail the different aspects of the business. The list of accounting functions include:

• Recording Keeping function.
• Protect Business Property.
• Legal Requirement Function.
• Communicating the Results.

But the arranging for finance is related with financial services.

Question 73.
A means of obtaining financial resources that involves the sale of part of the ownership of the business is called:
(a) Bankruptcy
(b) Equity financing
(c) Commercial loans
(d) Debt financing.
Answer:
(b) Equity financing is the source of means of obtaining financial resources that involves the sale of part of the ownership of the business.

Question 74.
Film production is done by which method of production?
(a) Job method
(b) Batch method
(c) Flow method
(d) Group method
Answer:
(a) With Job production, the complete task is handled by a single worker or group of workers. High-technology jobs involve much greater complexity.

Example of high technology/complex jobs : Film production, large constructions projects (example: the Millennium Dome)

Question 75.
Selling is a _________ concept while marketing is a _________ concept.
(a) Wide, narrow
(b) Big, small
(c) Narrow, wide
(d) Small, big
Answer:
(c) Selling is a narrow concept which involves transfer of goods or services from producers to consumers and marketing is a wide concept which emphasizes identifying consumers needs and providing want satisfying products or services.

Question 76.
Film production is the example of which method _________.
(a) Batch Method
(b) Job Method
(c) Flow Method
(d) Contract Method
Answer:
(b) With Job production, the complete task is handled by a single worker or group of workers, high-technology jobs involves much greater complexity. Example of high technology Jobs:- film production etc.

Question 77.
The objective of Human Resource Management does not include:
(a) To increase employees job satisfaction and self actualization
(b) To develop and maintain a quality of work life
(c) To provide well trained and well motivated employees
(d) To get the manufacturing/servicing done.
Answer:
(d) Human Resource Management, in the sense of getting things done through people. It includes a process of bringing people and organisation together so that goals of each are met. Therefore, manufacturing/servicing are excluded from its purview.

Question 78.
Selling and marketing are the same. This statement is:
(a) Depends on customers philosophy
(b) Depends on the organisation philosophy
(c) False
(d) True.
Answer:
(c) Because selling is a narrow concept which involves transfer of goods or services from producer to customers whereas marketing is a wide concept which emphasizes identifying consumers needs and providing want satisfying products or services.

Question 79.
The Section of the balance sheet that include all the debts of the company is called:
(a) Asset
(b) Cash flow
(c) Liabililies
(d) Equity
Answer:
(c) The section of the balance sheet that includes all the debts of the company is called liabilities is short term or long term which thereby is significant in taking any financial decision.

Question 80.
Budgeting is an activity of:
(a) Environmental Scanning
(b) Strategic planning
(c) Strategy formulation
(d) Strategy implementation
Answer:
(d) Budgeting is an activity of strategy implementation which is a process of conducting programs (activities needed to accomplish plan), budgets (cost of programs) and procedures (sequence of steps needed to do the job).

Question 81.
There is _________ which can be applied to decide the most important factors in choosing a location.
(a) No magic formula
(b) Prescribed formula
(c) A common formula
(d) A Scientific formula
Answer:
(a) There is no magic formula which can be applied to decide the most important factors in choosing a location.

Question 82.
In C.I.F. contracts, C.I.F. stands for:
(a) Cost, Insurance and Freight
(b) Calculated Insurance and Freight
(c) Cost, Identity and Freight
(d) Customs, Insurance and Freight
Answer:
(a) C.I.F stand for Cost, Insurance and Freight.

Question 83.
Market place for talented and skilled people is:
(a) Remunerative and approachable
(b) Not reasonably priced
(c) Competitive and expensive
(d) Competitive and approachable
Answer:
(c) The market place for talented and skilled people is competitive and expensive.

Question 84.
Which of the following production process is suitable for film production _________.
(a) Line Method
(b) Job Method
(c) Batch Method
(d) Flow Method
Answer:
(b) With job production, the complete task is handled by a single worker or a group of worker. Job can be of scale / low technology as well as high technology / complex.
Example: of high technology/complex are film production or large construction project.

Question 85.
Which of the following is not included in the marketing mix as defined b; William J. Stanton?
(a) Convergence
(b) Promotional activities
(c) Price structure
(d) Distribution system
Answer:
(a) William J. Stanton defined Marketing mix as combination of 4 inputs which constitute core of marketing mix element i.e the product, price structure, the promotional activities and the distribution system.

Question 86.
Production budget is not influenced by:
(a) Sales Budget
(b) Available Technology
(c) Production Capacity
(d) Available Cash
Answer:
(a) Production Budget is influenced by:

• Available technology
• Production capacity
• Available cash

Question 87.
Which of the following production process is suitable for film production?
(a) Batch method
(b) Line method
(c) Job method
(d) Flow method
Answer:
(c) Job method is the method where whole work is handled by a worker or group of workers firm production. It requires proper project management which involves clear objectives and proper decision process. Thus, Film production and large construction projects falls under jot method.

Question 88.
Human Resource Management is a part of:
(a) Every managers role
(b) Only human resource managers role
(c) Only human resource departments role
(d) Only marketing managers role
Answer:
(c) The purpose of Human Resource Management (HRM) is to hire, train and develop staff and where necessary to discipline or dismiss them. Through effective training and development, employees at Enterprise achieve promotion within the company and reach their full potential. Human Resources (HR) is concerned with the issues of managing people in the organisation. The Human Resources department is responsible for many people related issues in an organisation.

Question 89.
Selling and marketing are the same. This statement is:
(a) Depends on the customer’s philosophy
(b) False
(c) True
(d) Depends on the organization’s philosophy
Answer:
(b) Statement is False. Because they are different. Selling is transfer of ownership for consideration marketing is promotion of goods or services.

Question 90.
_________ require that the work for any task is divided into parts or operations.
(a) Job method
(b) Batch method
(c) Group method
(d) Flow method
Answer:
(b) In Batch method, work is divided into parts or operation different.

Question 91.
Which one of the following is not a part of marketing mix?
(a) Planing
(b) Product
(c) Price
Answer:
(a) Marketing Mix included followings ingredients or elements. These are:

• Product planning
• Pricing
• Branding
• Advertising
• Promotion
• Displays
• Physical handling.

It does not include planning.

Question 92.
In marketing a distinctive group of consumers is known as:
(a) A class
(b) A segment
(c) An emerging market
(d) None of the above
Answer:
(b) ‘Segment’ is a word which is used in marketing for a distinctive (separate) group of consumers.

Question 93.
In this each work is divided into batches/team.
(a) Job Method
(b) Flow Method
(c) Batch Method
(d) Group Method
Answer:
(c) Batch method of production is divided each work into batchs and in terms.

Question 94.
Which of the following deals with day-to-day operations of business:
(a) Corporate Strategy
(b) Operating Strategy
(c) Business Unit Strategy
(d) Executive and directory Planning
Answer:
(b) Operational Strategy is formulate to ensure smooth functioning of day to day operation.

Question 95.
Contribution of ILO to business function:
(a) Set Inter-nation labour standards
(b) Binding with labour standards
(c) either (a) or (b)
(d) neither (a) nor (b)
Answer:
(a) ILO- provide set of instruction for labour standards.

Question 96.
In _________ this, each work is divided into branches and terms:
(a) Job method
(b) Batch method
(c) Flow method
(d) Group method
Answer:
(b) Batch method: Each work is divided into specific parts or operations.

Question 97.
UNDP stands for:
(a) Urban and National Development Programme
(b) United Nations Development Programme
(c) Unique Nationality Designed Programme
(d) None of the above
Answer:
(b) UNDP: United Nations Development Programme.

Question 98.
Car Servicing is an example of:
(a) Batch processing
(b) Job processing
(c) Flow processing
(d) Contract processing
Answer:
(b) Job method is a way of handling low as well as high technology jobs where whole work is handled by worker or group of workers. Low technology jobs enables the company to include customer specific requirements as job processes. Thus car servicing is an example of job processing as it is concerned with specific requirements/problems of the customers.

Question 99.
Which of the following type of budget is prepared to assess the level of inventories, receivable etc.?
(a) Material Budget
(b) Profitability Budget
(c) Cash Budget
(d) Working Capital Budget
Answer:
(d) Working Capital Budget specifies the available working capital i.e. investment in current assets like inventory, debtors/receivables, etc. at different point of time.
Therefore it can be said that working capital budget is prepared to assess the level of inventories, receivables, etc.

Question 100.
Which of the following strategy focuses on issues of production processes, material, etc.?
(a) Operation Strategy
(b) Business Unit Strategy
(c) Corporate Strategy
(d) Marketing Strategy
Answer:
(a) Operational Strategy is concerned with how each part of the business is organised to deliver the corporate business-unit level strategic direction. Operational Strategy therefore focuses on issue of resources, processes, people, material, etc.

Question 101.
Generally _________ is responsible for complying procedural formalities relating to corporate restructuring in a company:
(a) Finance Function
(b) Marketing Function
(c) Secretarial Function
(d) Administration Function
Answer:
(c) Generally Secretarial function department is responsible for complying procedural formalities relating to corporate restructuring in a company.

Question 102.
Environment scanning is for:
(a) Internal
(b) External
(c) Both ‘A’ and ‘B’
(d) Can’t say
Answer:
(a) Environment scanning is a process of gathering information about events and their relationships within an organisation’s internal and external environment. The basic purpose of environment scanning is to help management determine the future direction of the organisation.

Question 103.
Which type of scanning requires unconscious mind.
(a) Passive
(b) Active
(c) Direct
(d) Indirect
Answer:
(a) Everyone scans continually. Ongoing scanning at an almost unconscious level is passive scanning. No effort is made to select a particulars information resource to scan. The criteria of passive scanning are obscure, unspecified, and often continuously changing.

Question 104.
To reduce inventory in objective of _________.
(a) POM
(b) SCM
(c) Both ‘A’ and ‘B’
(d) None of the above
Answer:
(b) Supply Chain Management (SCM) is the oversight of materials, information and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. It is said that the ultimate goal of any effective supply chain management system is to reduce inventory.

Question 105.
Mixer of ingredients:
(a) Ketter
(b) Culliton
(c) Peter F Drucker
(d) Henry Fajel
Answer:
(b) Culliton conceived of marketeer as “the Mixer of ingredients”.

Question 106.
Investment decision comprises _________.
(a) Financial planning
(b) Fixed capital management
(c) Working capital management
(d) Both ‘b’ and ‘c’
Answer:
(a) Investment decision means deicing the quantum of investment out of available finance on long term basis as well as on short-term basis. Hence it is a financial planning.

Question 107.
Two function of Business are _________.
(a) Marketing and Profit Maximization
(b) Marketing and innovation
(c) None of the above
(d) Both ‘A’ and ‘B’
Answer:
(b) Business has only two function-

• Marketing
• and innovation coined by Peter F. Drucker.

Question 108.
Services involve:
(a) Legal
(b) Accounting
(c) Secretarial
(d) All of the above
Answer:
(d) Services involves.

• Legal
• Secretarial functions
• Accounting
• Administration
• Information and communication Technology function.

CS Foundation Business Environment and Law Notes