ASSIGNMENT DRIVE
SPRING 2014
PROGRAM Bachelor of Business
Administration
SEMESTER IV
SUBJECT CODE & NAME - BBA404-Small
Business Management
BK ID B 1715
CREDIT & MARKS 2 Credits, 30 marks
You can pay in 6 installment of
Rs 125-125 if u have any doubt.
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Q.No 1 Define
small business and explain its characteristics.
(Definition of small
business- 5, Characteristics of small business) 5= 10
Answer: The Micro, Small and Medium Enterprise Development Act, 2006
(MSMEDA) classifies all small businesses as given below. In case of enterprises
engaged in the manufacture or production of goods pertaining to any industry
specified in the first schedule to the Industries
2 Explain
Porter’s five forces model. (Explanation) 10
Answer:
Five Forces Analysis helps to
understand the power position of the firm and pin-points strengths
and weaknesses in a company and discovers opportunities or threats within the
industry.
3 Explain
various sources of Working Capital. (Explanation) 10
Answer:
Sources of Working Capital:
1.
Trade credit
Normally goods are not bought against
cash. Generally suppliers extend credit ranging from 30 to 90 days for making
payment. This is an important source of working capital finance. Prompt payment
and healthy financial picture of a company enhance its creditworthiness. A
larger amount of trade credit can be obtained by maintaining credit discipline.
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