MCO-04 Important Questions 2025 [IGNOU MCOM MCO-04: Business Environment Most Important Questions]

Welcome to our list of the Most Important Questions for IGNOU MCO-04: Business Environment. These questions are carefully chosen to help you prepare for your Term End Examination. Our expert team has picked out the key topics that are most likely to appear in your exam. We hope these questions will help you study better and feel more confident when you take the exam.

MCO-04 Important Questions

IGNOU MCO-04: BUSINESS ENVIRONMENT
Important Questions for TEEs

UNIT - 1: Business Environment

1. What do you understand by business environment? Discuss its importance for the business.
2. Distinguish between:
   (a) Internal and external environment, and
   (b) Micro and macro environment.
3. Explain briefly the major components of business environment and their impact on business.
4. Explain the concept and process of Environmental Scanning.

UNIT - 2: Socio-Cultural Environment

1. How does the socio-cultural environment affect business decision-making? Provide a brief overview of the socio-cultural environment in India.
2. Distinguish between:
   (a) Social Institutions and Social Groups,
   (b) Attitudes and Interests, and
   (c) Social Values and Individual Values.
3. Define 'Social Systems' and discuss its main elements.
4. Explain the dualistic character of the Indian economy.
5. Enumerate the characteristics of consumerism and outline the development of the consumer movement in India.

UNIT - 3: Social Responsibilities and Ethics

1. Why should businesses resolve social problems? Explain the long-term benefits of being socially responsible.
2. Explain the responsibilities of management towards:
   (a) Employees, and
   (b) Community and the general public.
3. "Protecting consumer interest is the primary responsibility of management." Discuss.
4. Explain the concept of social accounting and approaches to social accounting and reporting.
5. Write explanatory notes on:
   (a) Social Audit,
   (b) Social Cost-benefit Analysis, and
   (c) Social Reporting.

UNIT - 4: Political Environment

1. Explain the concept of political environment and discuss how political ideology and stability influence business.
2. State the problems related to the uniform civil code in India.
3. Enumerate constitutional guarantees and safeguards for protecting minority interests in India.
4. Explain the government's role as a planner in a developing country like India.
5. Distinguish between:
   (a) Entrepreneurial and Promotional roles of government,
   (b) Direct and Indirect regulation of business, and
   (c) Fundamental Rights and Directive Principles.

UNIT - 5: Regulatory Policies and Reforms

1. Why did the Government of India change its regulatory policies in 1980 and 1991? Discuss.
2. Explain the relaxation of government controls over foreign direct investment and technology imports.
3. Outline the legal regulatory framework in India and the main provisions of basic business laws.
4. Why were legislative enactments necessary for environmental protection? Discuss the key provisions of the Environment (Protection) Act, 1986.

UNIT - 7: Industrial Development

1. State the composition and functions of a Development Council under IDRA, 1951.
2. What is an industrial license? When is it necessary?
3. Under what circumstances can the government take over the management of an industrial undertaking? Discuss the effects.
4. State the objectives and provisions of the MRTP Act, 1969 for checking the concentration of economic power.
5. Define monopolistic trade practice and state the MRTP Act provisions for controlling such practices.
6. When is restrictive trade practice allowed?
7. Define 'unfair trade practice' and state the powers of the MRTP Commission regarding it.
8. Describe the composition and functions of the Competition Commission of India.
9. Discuss the rights conferred upon consumers under the Consumer Protection Act, 1986.
10. What complaints can be filed before a consumer forum? State the appropriate forum for filing complaints.

UNIT - 8: Labour Laws

1. State and explain briefly the safety provisions in the Factories Act for factory employees.
2. What are the working hours provisions in the Factories Act for adult workers?
3. Discuss the purpose of the Minimum Wages Act, 1948, and the role of Advisory Boards.
4. State the objectives of the Industrial Disputes Act, 1947, and describe its adjudication machinery.
5. Write explanatory notes on:
   (a) Employees Provident Funds Scheme,
   (b) Employees Pension Scheme, 1995, and
   (c) Payment of Gratuity.

UNIT - 9: Money Market

1. Define the money market and explain its importance for a modern economy.
2. Outline the characteristics of a developed money market.
3. Discuss the main constituents of the Indian money market.
4. Distinguish between:
   (a) Repo and Reverse Repo, and
   (b) Commercial Bill and Treasury Bill.
5. Write short notes on:
   (a) Call Money Market,
   (b) Certificate of Deposits Market,
   (c) Money Market Mutual Funds, and
   (d) Discount and Finance House of India.

UNIT - 10: Stock Exchange

1. Define stock exchange and describe its key functions.
2. Discuss the importance of stock exchanges for:
   (a) Investors,
   (b) Corporate sector, and
   (c) Society.
3. What is the listing of securities on a stock exchange? State its advantages.
4. Distinguish between:
   (a) Primary and Secondary Capital Markets,
   (b) Speculative and Investment Transactions, and
   (c) Budla System and Equity Derivatives.
5. Explain:
   (a) Depository system, and
   (b) Rolling settlement with an example.
6. What is speculation? Is it necessary for stock exchange operations?
7. Write short notes on:
   (a) Importance of Primary Capital Market,
   (b) Stock Exchanges in India, and
   (c) IPO through Book Building Process.

UNIT - 11: SEBI and Investor Protection

1. Discuss SEBI’s role in protecting investors and regulating the stock market.
2. What are the eligibility conditions for:
   (a) A listed company, and
   (b) An unlisted company to make a public issue of shares as per SEBI Guidelines?
3. State SEBI Guidelines on:
   (a) Underwriting,
   (b) Pre-issue advertisement,
   (c) Differential pricing, and
   (d) Basis of allotment.
4. What are SEBI’s guidelines regarding promoters’ contribution and lock-in requirements for public issues?
5. List the documents required to be filed by the lead manager with SEBI for a public issue of securities.

UNIT - 12: Corporate Governance and Investor Protection

1. Why has investor protection become a major concern recently? Outline SEBI’s role and legal provisions in this regard.
2. Explain the concept of corporate governance and enumerate its broad objectives.
3. Discuss the challenges of corporate governance with reference to the Irani Panel recommendations.

UNIT - 13: Indian Economy

1. Why is the Indian economy considered underdeveloped? State its basic characteristics.
2. Distinguish between:
   (a) Economic Growth and Economic Development, and
   (b) Financial Savings and Physical Savings.
3. What were the objectives of the Industrial Policy Resolution of 1956? How far have they been achieved?

UNIT - 14: Economic Planning in India

1. Analyze the main features of economic planning in India, focusing on changes due to liberalization.
2. Discuss how economic planning differs across countries and why there’s little consensus on its concept and nature.
3. Explain export-led growth strategy and why the Mahalanobis strategy is no longer relevant for India.

UNIT - 15: Monetary Policy and Industrial Policies

1. What is monetary policy? Explain its main objectives.
2. Distinguish between the Industrial Policy of 1956 and the New Industrial Policy of 1991.
3. Discuss the techniques employed by the RBI to control money supply and credit from 1951 to 1991.

UNIT - 16: Development of Small-Scale Industries

1. What is the role of state-level institutions in developing small-scale industries?
2. Discuss the services provided by:
   (a) SIDO,
   (b) SISIs,
   (c) NSIC, and
   (d) SIDBI.
3. Critically examine the government’s policy toward small-scale industries.
4. Explain the salient features of the New Industrial Policy, 1991, for small-scale industries.
5. Enumerate the government’s programmes and schemes for small-scale industries.

UNIT - 17: Liberalization, Privatization, and Globalization

1. What is liberalization? Discuss the factors that necessitated it in India.
2. Discuss various forms of privatization and identify the most effective one.
3. Outline the steps taken by the Indian government toward globalization. Provide suggestions for improvement.
4. Analyze the impact of economic reforms on poverty reduction and employment growth.

UNIT - 19: Globalization and International Trade

1. Analyze the implications of globalization for developing countries. Discuss its benefits and adverse effects.
2. State the basic principles of GATT and evaluate the extent to which its objectives were realized.
3. Compare the functions and coverage of WTO with GATT.
4. Distinguish between the positive and negative aspects of TRIMS. What measures are prohibited under the TRIMS Agreement?
5. Enumerate the forms of intellectual property rights protected under the TRIPS Agreement.
6. Discuss the salient features of the Indian Patents Act, 1970.
7. What amendments have been made to the Patents Act, 1970, following the TRIPS Agreement?

UNIT - 20: Foreign Direct Investment

1. Is FDI necessary for developing countries? Discuss its benefits and limitations.
2. Evaluate India’s FDI policy and its effectiveness in attracting foreign investment.
3. Write short notes on:
   (a) Forms of foreign capital, and
   (b) India’s external debt.

UNIT - 21: Technological Environment

1. Define technology and explain the factors underlying technological change.
2. Why is the technological environment an important dimension of the business environment?
3. Discuss the rationale for technology transfer and its benefits to developing countries.

IGNOU MCOM MCO-04: BUSINESS ENVIRONMENT
IMPORTANT PREVIOUS YEAR QUESTIONS

1. "Business Environment is dynamic, complex, multi-faceted, and has a far-reaching impact." Comment on the statement citing relevant examples.
   (IGNOU 2023)
2. Explain various approaches and the process of "Environmental Scanning."
   (IGNOU 2023, IGNOU 2015)
3. What is money market? How is it different from the capital market?
   (IGNOU 2023)
4. Explain the constituents of capital markets and their importance to the Indian economy.
   (IGNOU 2023)
5. Why is it necessary for the Government to bring capital market reforms and regulatory measures? Discuss with examples.
   (IGNOU 2023, IGNOU 2015)
6. State the guidelines from SEBI towards underwriting and pricing of securities.
   (IGNOU 2023)
7. Discuss the role of small-scale industries towards economic development in our country. State the government’s initiatives in this regard.
   (IGNOU 2023, IGNOU 2022)
8. Describe various economic reforms initiated by the Government of India. Explain them in detail.
   (IGNOU 2023)
9. "Collaboration is crucial in the Technological Environment." Explain with examples.
   (IGNOU 2023)
10. How are Intellectual Property Rights (IPR) important in the emerging business environment?
    (IGNOU 2023)
11. What do you mean by balance of payments? Discuss the measures adopted by the Government of India to improve the balance of payments.
    (IGNOU 2023, IGNOU 2011)
12. Discuss the various provisions related to the regulation and management of foreign exchange under the FEMA Act.
    (IGNOU 2023, IGNOU 2011)
13. Distinguish between any two of the following:
    (a) Entrepreneurial and Promotional role of the Government
    (b) Monetary policy and Fiscal policy
    (c) Primary and Secondary capital markets
    (d) Corporate governance and Corporate social responsibility
    (IGNOU 2023)
14. Write short notes on any two of the following:
    (a) Consumerism in India
    (b) Social Accounting
    (c) Environment Protection Laws
    (d) Sensex, Nifty, and NSDL
    (IGNOU 2023)
15. Discuss the interaction matrix of economic and non-economic environments. How does the economic environment influence the non-economic environment of business and vice-versa? Explain with suitable examples.
    (IGNOU 2022)
16. What are the objectives of Industrial Policy in India in the post-reform period, and what ways are adopted to achieve those objectives? Discuss in detail.
    (IGNOU 2022)
17. Briefly discuss the foreign investment policy in India in the post-reform period onwards. What impact did liberalization have on the quantum of FDI inflows into India?
    (IGNOU 2022, IGNOU 2015)
18. Discuss globalization as a part of India’s reform strategy. How has the economy progressed towards globalization since 1991?
    (IGNOU 2022, IGNOU 2011)
19. Explain objectives and instruments of fiscal policy. Why is coordination between monetary and fiscal policies necessary?
    (IGNOU 2022, IGNOU 2015)
20. Examine the impact of economic reforms on poverty and employment. Give illustrations.
    (IGNOU 2022)
21. Identify the problems of the small-scale sector. How has the government evolved an institutional framework to deal with these issues?
    (IGNOU 2022, IGNOU 2011)
22. State the causes of industrial disputes in India. Discuss the various measures taken by the Government of India for the prevention and settlement of industrial disputes.
    (IGNOU 2022)
23. Discuss the institutional framework that has been evolved for the promotion and growth of small-scale industries in India. What are the major constraints that are still being faced by this sector?
    (IGNOU 2021, IGNOU 2016, IGNOU 2015)
24. Define "Balance of Payment" and explain its components. What are the measures adopted to solve the problem of deficit in Balance of Payment?
    (IGNOU 2021, IGNOU 2015)
25. Discuss the nature of regulatory frameworks governing business in India. How has the redefined role of the government affected these frameworks?
    (IGNOU 2021)
26. Why is foreign capital so important for India's economic development? Point out important policy changes announced by the Government to attract foreign capital since July 1991.
    (IGNOU 2020, IGNOU 2011)
27. Explain the concept of Corporate Governance and state the various measures adopted in India to ensure good corporate governance.
    (IGNOU 2020, IGNOU 2013)

28. Explain the significance of the money market in a modern economy and describe the principal constituents of the money market and their functioning in India.
    (IGNOU 2020, IGNOU 2016, IGNOU 2011)
29. What do you mean by privatization? Why is it considered necessary today? Explain the possible areas of privatization and point out the problems associated with privatization in India.
    (IGNOU 2020, IGNOU 2012)
30. Discuss the institutional framework that has been evolved for the promotion of small-scale industries in India.
    (IGNOU 2020, IGNOU 2013)
31. Discuss the main deficiencies of the Indian Money Market. Also, state the various measures introduced by the Reserve Bank of India to strengthen the Indian Money Market.
    (IGNOU 2019, IGNOU 2016, IGNOU 2012)
32. Define the term "Social Systems" and outline its main elements.
    (IGNOU 2019)
33. What are restrictive trade practices (RTPs)? Discuss briefly the types of RTPs.
    (IGNOU 2019)
34. Discuss the salient features of the New Industrial Policy as enunciated by the Government of India in 1991. Make a critical appraisal of it.
    (IGNOU 2019, IGNOU 2015)
35. Explain the main constraints faced by small-scale sector units in India. Discuss ways to overcome such constraints.
    (IGNOU 2019, IGNOU 2013)
36. Write explanatory notes on any two of the following:
    (a) Social Audit
    (b) Anti-competition agreements under the Competition Act
    (c) Need for Investors Protection
    (d) Environmental Scanning
    (IGNOU 2019, IGNOU 2013)
37. Discuss the concept of social responsibility of business and its nature towards:
    (a) Employees
    (b) Shareholders
    (c) Public at large
    (IGNOU 2018, IGNOU 2011)
38. Discuss globalization as a national policy and state the steps taken by the Government of India towards globalization. Analyze its implications for a developing country.
    (IGNOU 2018)
39. Explain the various objectives of fiscal policy and why coordination between monetary and fiscal policies is necessary.
    (IGNOU 2018, IGNOU 2011)
40. Discuss the role of SEBI and state SEBI guidelines in respect of:
    (a) Pricing of securities at the time of making a public issue
    (b) Promoters' contribution in a public issue of securities
    (c) Documents to be submitted along with the offer document by the lead manager
    (IGNOU 2018, IGNOU 2017)
41. Explain the evolution of the concept of corporate governance and outline the measures adopted in India to ensure good corporate governance.
    (IGNOU 2018, IGNOU 2015)
42. What is consumerism? Enumerate the characteristics of consumerism and describe the development of the consumer movement in India.
    (IGNOU 2017, IGNOU 2013)
43. What are the salient features of the Competition Act, 2002? Discuss its provisions regarding the regulation of monopolies in India.
    (IGNOU 2017, IGNOU 2015)
44. What is meant by administered prices? How are they determined in the Indian context?
    (IGNOU 2017)
45. Discuss the salient features of the Environment Protection Act, 1986, and its significance for businesses.
    (IGNOU 2017, IGNOU 2013)
46. Write explanatory notes on any two of the following:
    (a) Technology Transfer
    (b) Globalization of the Indian economy
    (c) Requisites of Good Corporate Governance
    (d) Measures adopted to improve India’s Balance of Payments
    (IGNOU 2017, IGNOU 2011)
47. Explain the basic principles incorporated in GATT for the realization of its objectives. How do the functions and coverage of WTO differ from GATT?
    (IGNOU 2015, IGNOU 2013)

48. Highlight the importance of the small-scale sector in the Indian economy. Discuss various promotional schemes of the government for the development of small-scale industries.
    (IGNOU 2021, IGNOU 2013)
49. Discuss the interaction between economic and non-economic environments with Indian illustrations.
    (IGNOU 2012, IGNOU 2011)
50. What is economic policy? What are its different forms? Explain various objectives of fiscal policy and why coordination between monetary and fiscal policies is necessary.
    (IGNOU 2012)
51. What are the objectives and instruments of monetary policy? Discuss the significant changes in the monetary policy framework during the 1990s.
    (IGNOU 2015, IGNOU 2011)
52. What are the salient features of the Consumer Protection Act, 1986? Discuss the rights conferred upon consumers under this act.
    (IGNOU 2011, IGNOU 2016)
53. Explain the concept of speculative transactions. How are they different from investment transactions?
    (IGNOU 2011, IGNOU 2013)
54. What do you understand by trade policy reforms? Discuss the reforms initiated by the Government of India since 1991-92.
    (IGNOU 2011)
55. Analyze the impact of liberalization on the FDI inflows into India. Discuss the foreign investment policy in the post-reform period.
    (IGNOU 2011)
56. What do you mean by globalization? Discuss its significance and India's progress towards globalization since 1991.
    (IGNOU 2011, IGNOU 2019)
57. Discuss the major provisions of the Competition Act, 2002, in regulating monopolies in India.
    (IGNOU 2015, IGNOU 2012)
58. What are the distinguishing features of producer companies? Discuss their role in Indian business.
    (IGNOU 2011)
59. Discuss the concept of administered prices. How are they regulated in the Indian market?
    (IGNOU 2013)
60. What is the Competition Commission of India? Discuss its composition, powers, and duties.
    (IGNOU 2015, IGNOU 2011)

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