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ASSIGNMENT
| DRIVE | SUMMER 2014 |
| PROGRAM | BBA |
| SUBJECT CODE & NAME | BBA103 – Business Environment |
| SEMESTER | 1 |
| BK ID | B1501 |
| CREDITS | 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.
Q.1. Monetary policy regulates the money supply in an economy. Analyse how monetary policy play an important role in the credit availability of an economy.
Ans: Monetary policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic growth. In India, the central monetary authority is the Reserve Bank of India (RBI). is so designed as to maintain the price stability in the economy. Other objectives of the monetary policy of India, as stated by RBI, are:
- Price Stability:
Q.2. Discuss the merits and demerits of Indian economy.
Ans : Indian economy is mixed economy. A mixed economy possesses certain merits which are as under:
Merits of Indian Economy:
(1) Best Allocation of Resources:
Q.3. Elucidate the key regulations applicable to business in India.
Ans : An entrepreneur has to take into account the basic regulatory requirements of the country in order to ensure sustainability of the profits and productivity of his/her business. The most important regulation relates to the environment. The environmental regulatory requirements envisage a wide legislative framework covering every aspect of environment protection. Broadly, it includes the emission standards for air, noise, water, etc. Separate
Q.4. Analyse two examples or cases of privatization in India.
Ans : India initiated its privatization program in 1991 as part of a larger macroeconomic stabilization and structural reform effort to cope with extremely difficult economic conditions. Inflation had risen above 15 percent and foreign exchange reserves were dangerously low.
- Air India – A case of privatisation :
Q.5. Differentiate GATT and WTO.
Ans : General Agreement on Tariffs and Trade (GATT) was a multilateral agreement regulating international trade. It was created in 1948 and lasted until 1993. World Trade Organization (WTO) was formed as a replacement for GATT in 1995 with the purpose of supervising and liberalizing international trade. WTO has a more permanent structure compared to GATT. WTO also monitors trade in services and trade-related aspects of intellectual property rights, in addition to trade in goods. There are various bodies or agreements that have been made around the world in order to maintain peace and justice among the different
- 6. Compare and contrast the different forms of Public sector Enterprises.
Ans : The organisation provides the framework, which substantially shapes interrelationships amongst the public enterprises as well as the government. The following are the major organisational forms of the public enterprises.
(a) Departmental Organisation
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