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DRIVE-
Summer 2014
PROGRAM-BBA
SEMESTER-I
SUBJECT
CODE & NAME-BBA 103-BUSINESS ENVIRONMENT
BK
ID-B1499
CREDIT-4
MARKS-60
Note:
Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q1.
Monetary policy regulates the money supply in an economy. Analyse how monetary
policy play an important role in the credit availability of an economy.
(Explain
monetary policy, Quantitative control, Qualitative control) 2, 4, 4
Answer.
Monetary policy
Monetary Policy is a
tool that incorporates the actions that the Reserve Bank takes to influence the
level of GDP. The Reserve Bank can influence the level of output in the short
run, through open market operations, changes in reserve requirements or changes
in the discount rate. These tools can be used to form a suitable monetary
policy during the times of both recession and inflation. The aggregate demand
Q2.
Discuss the merits and demerits of Indian economy.
(Merits,
demerits) 5, 5
Answer.
Merits and demerits of Indian economy
Any economy is the sum
total of all economic units. As individuals, we need to earn a living, and use
the income earned, to buy goods that will help us lead a comfortable life and
also plan for the future. The Indian economy is a complex mixed economic
system. Some industries may be completely State-owned,
Q3.
Elucidate the key regulations applicable to business in India.
(Explanation
of regulations applicable to business in India) 10
Answer.
Key regulations applicable to business in India
Apart from the laws
applicable to industry, the Government of India has also laid down legislations
that cover various areas and aspects of economic set up such as business,
market, labour, competition and industry etc. These legislations and policies
are regulatory in nature and are aimed at providing an equitable and fair
business environment to all the people concerned, be it the entrepreneur, investor,
consumer or labourer and so on. Following are the key regulations which are in
force in India:
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Q4.
Analyse two examples or cases of privatization in India.
(Each
example)5*2
Answer.
Cases of privatization in India
Privatization refers
to transfer of ownership of public sector enterprises from the government to
the private sector. In a broader sense, it is the induction of private control
and management in the public sector units. The policy of the government on
disinvestment has evolved over a period. A brief account is given below. The
disinvestment carried out in India can be divided into two phases as per the
mode of
Q5.
Differentiate GATT and WTO.
(Explain
GATT, Explain WTO) 5, 5
Answer.
GATT
GATT was a
multinational treaty that was signed in 1948 by 102 countries with the
objective of bringing down tariff and non-tariff barriers of international
trade. Until 1994, the main concerns of GATT were to check „dumping‟ and unethical business
practices. The Uruguay Round Agreements of GATT (held from1986 to 1994)
envisaged an increase in the coverage of the legal provisions and establishment
of an
Q6.
Compare and contrast the different forms of Public sector Enterprises.
(Explain
Public sector Enterprises, Explain different forms)1, 3*3
Answer.
Public sector Enterprises
Public sector plays an
important role in the industrial development of a nation. The growth of public
sector led to the growth of (SOEs), State owned enterprises in India.
Industrial Policy Regulations 1956 &1991, gave the public sector a strategic
role in the Indian economy. It was the conscious decision of the government to
speed up the industrialization of the country so as to boost economic growth
and to
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