Business Organisation and Management Solved Question Paper'2023 [Dibrugarh University B.Com 1st sem FYUGP]

[Dibrugarh University B.Com 1st sem FYUGP]

Business Organisation and Management Solved Question Paper 2023

1 SEM FYUGP COM (BNI/FIN/HRM/MHT)
2023 (December)
COMMERCE (Core)
Full Marks: 80
Pass Marks: 24
Time: 3 hours
Paper: COMC1
(Business Organization and Management)

The figures in the margin indicate full marks for the questions

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1. Answer the following as directed:1×10=10

(a) Why is business considered as an economic activity?

   Ans: Business involves the production or exchange of goods/services for profit, contributing to the economy through wealth creation, employment, and resource utilization.

(b) Define demonetization.

   Ans: Demonetization refers to the act of invalidating the legal tender status of a specific currency by a government, often to introduce a new currency or curb illegal activities.

(c) Who are autocratic leaders?

   Ans: Autocratic leaders are individuals who make decisions independently, exerting strict control over their subordinates without much input or consultation.

(d) What is business risk?

   Ans: Business risk refers to the possibility of financial loss, operational disruptions, or other adverse effects on a business due to uncertain events or conditions.

(e) What is planning premises?

   Ans: Planning premises are the foundational assumptions or forecasts upon which a business's strategic plans and decisions are based.

(f) Define objective.

   Ans: Objectives are specific, measurable, and achievable goals that an individual or an organization aims to accomplish within a defined period, guiding actions and strategies.

(g) Which of the following is not a characteristic of planning?

   Ans: (iii) Curtailment right

(h) Define motivation.

   Ans: Motivation is the driving force that stimulates individuals to act or behave in a certain way to achieve their goals or fulfill their needs.

(i) What is product life cycle?

   Ans: Product life cycle refers to the stages a product goes through from its introduction to the market, growth, maturity, and eventual decline in sales.

(j) What is financial management?

   Ans: Financial management involves the effective management of a company's finances, encompassing planning, directing, controlling, and monitoring financial activities to achieve organizational goals.

2.Write short notes on any four of the following:4×4=16

(a) What is joint Hindu family business?

Ans: Joint Hindu family business is a traditional form of business organization prevalent in India, where members of a Hindu undivided family carry on a business together. It's characterized by joint ownership, common ancestral property, mutual rights, and shared risks among family members. The management typically rests with the eldest member or a chosen manager. This business structure aims to preserve family wealth, promote familial unity, and facilitate the smooth transfer of wealth between generations.

(b) What are business ethics?

Ans: Business ethics refer to moral principles and values that guide behavior and decision-making in the business world. It involves conducting business activities with honesty, integrity, fairness, and accountability. It includes respecting diversity, maintaining transparency, adhering to legal regulations, and considering the impact of business decisions on stakeholders, society, and the environment.

(c) What are the principles of planning?

Ans: Principles of planning encompass fundamental guidelines for effective planning processes. These include clarity of objectives, flexibility to adapt to changes, comprehensive assessment of resources, setting achievable targets, continuous monitoring and evaluation, participation and involvement of stakeholders, and ensuring alignment with organizational goals.

(d) What is the democratic style of leadership?

Ans: The democratic style of leadership involves leaders who encourage participation, open communication, and collaboration within the team. It emphasizes inclusivity, decision-making through consensus, valuing diverse opinions, and empowering team members to contribute ideas and suggestions. This approach fosters a sense of belonging and ownership among team members, leading to increased morale, creativity, and productivity.

(e) What is the importance of supply chain management?

Ans: Supply chain management is crucial as it ensures efficient coordination of processes involved in the creation and distribution of goods or services. It optimizes operations, reduces costs, minimizes disruptions, enhances customer satisfaction, and improves overall competitiveness. Effective supply chain management enables businesses to respond swiftly to market demands, manage inventory efficiently, build strong relationships with suppliers, and adapt to dynamic market conditions, thus contributing significantly to business success.

3. (a) What important factors are to be considered while starting a business? 5

Ans:-  The Following crucial factors need consideration when starting a business:

1. Market Research: Understanding the market demand, consumer behavior, and competition is essential. Conducting thorough research helps in identifying potential customers, market gaps, and suitable strategies.

2. Business Plan: Developing a comprehensive business plan is crucial. It outlines goals, strategies, financial projections, and operational details, serving as a roadmap for the business.

3. Finances: Assessing initial investment needs, securing funding sources, managing cash flow, and creating a financial plan are vital. It's essential to budget for initial expenses, operational costs, and unforeseen challenges.

4. Legal and Regulatory Compliance: Adhering to legal requirements, obtaining necessary licenses, permits, and registrations are critical. Understanding tax obligations, intellectual property rights, and compliance with labor laws are fundamental.

5. Marketing and Branding: Crafting an effective marketing strategy to promote the business, establish a brand identity, and reach the target audience is essential. Utilizing various marketing channels and creating a unique value proposition are key to attracting customers.

Starting a business requires meticulous planning, a deep understanding of the industry, adaptability to changes, and a willingness to learn and evolve in the competitive market landscape.

 Or

(b) Write a brief note on social responsibility of business. 4

Ans:-The social responsibility of a business refers to its ethical and moral obligations towards society beyond its primary goal of making profits. It involves actively contributing to the well-being of communities, the environment, and stakeholders. Businesses are increasingly expected to operate in a manner that considers the impact of their activities on society.

This responsibility encompasses various aspects:

1. Environmental Impact: Businesses must minimize their ecological footprint by adopting sustainable practices, reducing waste, conserving resources, and supporting initiatives that promote environmental conservation.

2. Community Engagement: Engaging with local communities through philanthropy, volunteer programs, or supporting local initiatives fosters goodwill and positively impacts societal development.

3. Ethical Practices: Upholding ethical standards in business operations, including fair treatment of employees, honesty in dealings, and ethical sourcing, ensures trust and credibility within the community.

4. Stakeholder Consideration: Balancing the interests of all stakeholders—customers, employees, suppliers, shareholders, and the community—ensures equitable benefits and sustainable growth.

Businesses that actively embrace social responsibility not only contribute to societal advancement but also tend to enhance their brand reputation, build stronger relationships with stakeholders, and often attract more support from consumers who prioritize ethical and socially conscious businesses.

4. (a) Discuss the factors that affect the internal environment of business.

Ans:- The internal environment of a business encompasses various factors that directly influence its operations, culture, and functioning. Several key elements shape this internal landscape:

1. Organizational Structure: The structure delineates the hierarchy, reporting relationships, and division of responsibilities within the company. Factors such as the level of centralization, departmentalization, and span of control affect how tasks are allocated and decisions are made.

2. Company Culture: This refers to the shared values, beliefs, norms, and attitudes prevalent among employees. A positive and strong culture fosters unity, teamwork, innovation, and employee engagement, while a negative culture can impede progress.

3. Human Resources: The workforce, their skills, abilities, attitudes, and motivations significantly impact the internal environment. Employee training, recruitment policies, diversity, and the overall talent pool contribute to organizational effectiveness.

4. Leadership Style: The leadership approach adopted by top management influences the internal climate. Different leadership styles—autocratic, democratic, laissez-faire—affect communication, decision-making processes, and employee morale.

5. Physical Resources: These include tangible assets such as infrastructure, technology, equipment, and facilities. The availability, quality, and effective utilization of these resources impact productivity and operational efficiency.

6. Financial Resources: The financial health of a company, its budgeting process, investment decisions, and access to capital directly influence the business's ability to expand, innovate, and remain competitive.

Understanding and managing these internal factors effectively is crucial for businesses to adapt to changes, foster a conducive work environment, drive innovation, and achieve their strategic objectives.

 Or

(b) Define decision making. Analyze the steps in the process of decision making. 5

Ans:- Decision-making refers to the cognitive process of selecting a course of action among several alternatives to achieve a specific goal or solve a problem. It involves evaluating various options, considering available information, and predicting the potential outcomes of each choice.

The process of decision-making typically involves several steps:

1. Identification of the Problem or Opportunity: This initial step involves recognizing the need for a decision due to a problem or an opportunity that requires action.

2. Gathering Information: Once the problem is identified, relevant information is collected to understand the situation better. This may involve data gathering, analysis, and seeking inputs from various sources.

3. Identifying Alternatives: Multiple options or solutions are generated to address the problem or leverage the opportunity. Creativity and brainstorming aid in exploring diverse alternatives.

4. Evaluation of Alternatives: Each alternative is assessed based on various criteria such as feasibility, effectiveness, risks, and potential outcomes. This step involves weighing the pros and cons of each choice.

5. Selection of the Best Alternative: After careful evaluation, one alternative is chosen as the most suitable course of action. This decision is based on the analysis conducted in the previous steps.

6. Implementation: The selected alternative is put into action, and plans are made for execution. Clear communication and resource allocation are crucial during this phase.

7. Review and Feedback: After implementation, the decision's outcomes are monitored and evaluated to assess its effectiveness. Feedback loops help in understanding the impact and making adjustments if needed.

Decision-making is a complex process influenced by cognitive biases, time constraints, and the availability of information. Effective decision-making involves critical thinking, analysis, and sometimes a degree of intuition to navigate through uncertainties and complexities.

5. (a)   What do you understand by leadership? Explain the qualities of effective leadership. 3+11=14

Ans:-  Leadership is the ability to build up confidence and deal among people and to create an urge in them to be led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative, self-confidence and personal integrity. Different situations may demand different types of leadership.

Leadership means influencing the behaviour of the people at work towards realizing the specified goals. It is the ability to use non-coercive (no force) influence on the motivation, activities and goals (MAG) of others in order to achieve the objectives of the organisation.

Koontz and O' Donnel "Leadership is the ability of a manager to induce subordinates to work with confidence and zeal".

George R Terry "Leadership is the activity of influencing people to strive willingly for group objectives".

Qualities essential for effective leadership include:

1. Vision: A leader needs a clear vision that outlines the direction and goals for the team or organization. This vision serves as a guiding force, aligning efforts and inspiring others to contribute towards a common purpose.

2. Communication: The ability to articulate ideas, goals, and expectations is crucial. Effective leaders communicate clearly, actively listen to their team, and ensure everyone understands their roles and responsibilities.

3. Integrity: Trust is foundational in leadership. Leaders must demonstrate honesty, transparency, and consistency in their actions. Upholding ethical standards fosters trust and credibility among team members.

4. Adaptability: Situations change, and an effective leader must be flexible and adaptable. They should navigate uncertainties, make informed decisions, and adjust strategies accordingly without losing sight of the overarching goals.

5. Empathy: Understanding and empathizing with the team members' perspectives, challenges, and emotions is essential. Empathetic leaders create a supportive environment and forge stronger connections within the team.

6. Decisiveness: Leaders must make timely and well-informed decisions. Confidence in decision-making inspires confidence in the team and keeps progress moving forward.

7. Inspirational: Inspiring others by setting an example, motivating through enthusiasm, and fostering a positive attitude is a hallmark of effective leadership. Encouraging others to excel and reach their potential drives collective success.

8. Delegation: Effective leaders know when and how to delegate tasks. Empowering team members with responsibilities not only distributes the workload but also allows individuals to grow and contribute meaningfully.

9. Resilience: Challenges and setbacks are inevitable. Leaders should exhibit resilience, remaining composed and resilient in the face of adversity, and guiding their team through tough times.

10. Continuous Learning: A great leader is committed to self-improvement and encourages learning within the team. Embracing new ideas, seeking feedback, and adapting based on lessons learned contributes to sustained growth and success.

The amalgamation of these qualities enables a leader to inspire, empower, and guide a team or organization towards achieving common objectives. Effective leadership isn't just about possessing these traits but also about their consistent application in various situations to create a positive impact.

 Or

(b) Define product life cycle. Discuss its various stages.

Ans:- The product life cycle is the process a product goes through from when it is first introduced into the market until it declines or is removed from the market. The life cycle has four stages—introduction, growth, maturity, and decline. 

While some products may remain in a prolonged maturity state for some time, all products eventually phase out of the market due to several factors including saturation, increased competition, decreased demand, and dropping sales.

Companies use PLC analysis (the process of examining their product's life cycle) to create strategies to sustain their product's longevity or change it to meet market demand or adapt with/to developing technologies. 

The Different stages of Product life Cycle:-

A) Introduction: This is the stage when a product is launched, and it involves high investment and lower profits. Companies focus on inducing acceptance and increasing awareness.

B) Growth: In this stage, the product shows better returns on investment, but competition intensifies. Companies may introduce secondary products or support services.

C) Maturity: At this stage, competition and duplication become challenges. Penetration pricing by competitors can affect the product's unique selling points. Sales revenue remains high, but growth potential decreases.

D) Decline: This is the final stage where sales and profits decline, and a product may exit the market. Companies become cost-conscious and may allocate resources to different projects.

The marketing strategies at each stage:

1. Introduction:

   - Goal: Create awareness and attract early customers.

 - Strategy: Heavy advertising, highlight product features, limited distribution.

   - Pricing: Often set at a premium.

2. Growth:

   - Goal: Expand market share and maximize profits

 - Strategy: More advertising, expand distribution, possibly introduce variations.

   - Pricing: Stable or slightly reduced.

3. Maturity:

   - Goal: Maintain market share, focus on differentiation.

 - Strategy: Emphasize brand, product diversification, cost control.

   - Pricing: Competitive, potential discounts.

4. Decline:

   - Goal: Manage declining sales or exit the market.

   - Strategy: Cut costs, focus on niche markets, discontinue if needed.

   - Pricing: May decrease to clear inventory.

6. (a) Define partnership. Discuss the merits and demerits of partnership business.  4+10=14

Ans:- Partnership refers to a form of business where two or more individuals join forces to operate a venture, sharing profits, losses, and responsibilities. In this structure, each partner contributes resources, skills, or capital towards the business's success.

According to section 4 of The Indian Partnership Act, 1932," Partnership is a relation between two or more persons who have agreed to share the profits of a business carried on by all or any one of them acting for all."

Partnership in this way is an agreement, between two or more persons to carry on legal business with profit motive, which is carried on by all or any one of them acting for all.

Merits of Partnership:

1. Shared Expertise: Partnerships combine diverse skills and knowledge, enhancing problem-solving and decision-making capabilities.

2. Ease of Formation: Compared to corporations, partnerships require fewer formalities and legal procedures for establishment.

3. Flexibility in Management: Partnerships often enjoy more flexibility in operational decisions and management structures.

4. Pooling of Resources: Partners contribute resources, capital, and efforts, which can lead to more substantial investments and business growth.

5. Tax Benefits: Partnerships can benefit from tax advantages, including pass-through taxation where profits are taxed at individual rates.

6. Better Access to Capital: With multiple partners, accessing additional funding or loans may be easier than for a sole proprietorship.

7. Personal Connection: Partnerships often foster strong personal relationships, enhancing trust and commitment among partners.

Demerits of Partnership:

1. Unlimited Liability: Each partner is personally liable for the business's debts, risking personal assets if the business faces financial difficulties.

2. Conflict Potential: Differences in opinions, decision-making, or contributions can lead to conflicts among partners.

3. Instability due to Changes: Partner withdrawal, death, or disagreements can disrupt the business's continuity or lead to legal complexities.

4. Unequal Effort or Contributions: Disparities in effort, investment, or dedication among partners can create resentment or inefficiencies.

5. Shared Profits: Partners must share the profits among themselves, potentially limiting individual earning potentials.

6. Decision-making Complexity: Unanimous decisions or disagreements among partners can hinder quick and effective decision-making.

7. Limited Growth Potential: Partnerships might face limitations in attracting new talent or investments due to their structure and shared ownership.

These aspects highlight both the strengths and weaknesses of partnership businesses, showcasing their collaborative potential as well as the challenges they might encounter.

 Or

(b) What is service? Discuss the characteristics of services in business.

Ans:- Services are essentially intangible activities which are separately identifiable and provide satisfaction of wants. Their purchase does not result in the ownership of anything physical. Services involve an interaction to be realised between the service provider and the consumer. 

The five distinct characteristics of services as discussed below :- 

(i) Intangibility: Services are intangible, i.e., they cannot be touched. They can only be experienced and hence the quality of the service cannot be determined before consumption. Therefore, the service providers consciously work on creating a desired service so that the customer has a favourable experience, e.g., service in a restaurant should be a favourable experience for customer to visit again.

(ii) Inconsistency: Services have to be performed exclusively each time according to different consumer demands as there is no standard tangible product on offer. Hence, inconsistency is an important characteristic of services. Service providers need to modify their offer to closely meet the requirements of the customers, e.g., services provided by nationalised banks are quite different from the banking services provided by private banks. 

(iii) Inseparability: Activities of production and consumption are performed simultaneously in case of services which makes the production and consumption of services seem to be inseparable as services have to be consumed as and when they are produced. e.g., we cannot separate the medical services provided by a doctor.

(iv) Absence of Inventory: Services are intangible and perishable and hence cannot be stored for future use. This implies that the supply needs to be managed according to demand as the service has to be performed as and when the customer asks for it. e.g., a medicine can be stored but the medical care wiil be experienced only when the doctor provides it.

(v) Involvement: Participation of the customer in the service delivery process is an important characteristic of services as the customer has the opportunity to get the services modified according to his/her specific requirements e. g., cinema halls are providing services to watch movie but the customer has to visit the hall to experience the movie in the cinema hall.

7. (a) Give the meaning of authority. Write the distinction between centralization and decentralization of authority.3+11=14

Ans:- Authority refers to the legitimate or recognized power to enforce rules, make decisions, and control others' actions within a specific context or domain. It's often vested in individuals, institutions, or systems based on expertise, position, or social agreement. This power grants the ability to influence, guide, or direct others. Authority can manifest in various forms: legal, moral, expert, or traditional. It's not merely about control but also about responsibility, as those with authority are often accountable for their actions and decisions. Effective authority is built on trust, competence, and fair use of power, ensuring stability and order within organizations, societies, or relationships.

The distinction between centralization and decentralization of authority:

 Or

(b)  Define work life balance. What are the ways to improve work life balance?

Work-life balance refers to the equilibrium an individual seeks between their professional obligations and personal life, aiming to allocate time and energy effectively across both domains. It emphasizes the need for harmony, reducing stress, and fostering well-being in various aspects of life. Achieving work-life balance involves managing responsibilities, setting boundaries, and nurturing one's physical, mental, and emotional health while excelling professionally.

Several strategies can enhance work-life balance:

1. Establishing Boundaries: Clearly define work hours, limit overtime, and create separation between work and personal life to avoid burnout and maintain mental health.

2. Time Management: Prioritize tasks, set realistic goals, and organize schedules efficiently to maximize productivity during work hours, allowing more time for personal pursuits.

3. Self-Care: Engage in activities that promote well-being, such as exercise, hobbies, relaxation techniques, and sufficient sleep, to recharge and stay mentally and physically healthy.

4. Flexible Work Arrangements: Negotiate flexible work hours or remote work options, if feasible, to accommodate personal needs and responsibilities.

5. Communication and Delegation: Communicate effectively.

6. Support Networks: Build a strong support system comprising friends, family, or mentors who can offer guidance, advice, or simply lend an ear during challenging times. Having a reliable support network can significantly contribute to managing stress and maintaining balance.

7. Technology Boundaries: Establish specific times to check work-related emails or messages outside of regular working hours. Setting boundaries with technology helps in creating dedicated periods for personal time, preventing work from encroaching on crucial moments meant for relaxation and family.

9. Boundaries in Social Commitments: Learn to say 'no' to additional social or work commitments that might overwhelm your schedule. Prioritizing and balancing social engagements can prevent overextension and maintain a healthier balance between work and personal life.

10. Continuous Learning and Growth: Invest time in personal development activities or hobbies that provide a sense of fulfillment and promote mental stimulation. Pursuing passions outside of work contributes to a more well-rounded and enriched life.

These additional strategies, including managing technology use, setting boundaries in commitments, nurturing personal growth, and establishing a support network, further reinforce a holistic approach to achieving and sustaining work-life balance.

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