ASSIGNMENT DRIVE Winter
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
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Q.No 1 Define small
business and explain its characteristics. What are the common problems
affecting small businesses?
(Definition
of small business- 3, Characteristics of small business 3, Common problems
affecting small businesses4) = 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
Q.2. Explain the following:
a) Porter’s
five force model
ANS:
a.
Porter’s
five force model:Michael Porter provided a framework that
models an industry as being influenced by five forces. These five forces are
those competitive forces that shape every single industry and market. These
forces help us to analyse everything from the intensity of competition to the
profitability and attractiveness of an industry. Five Forces Analysis helps the
Q3. 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
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