1 a. Nature of Business: Dynamic, Uncertain, totality of external factors and Relative. b.

Macro Economics: The field of study that studies the aggregate Economy- PESTEL analysis. c. Fiscal: Fiscal means related to money matters- the policy of Government pertaining to public revenue and debts is called Fiscal policy. d. Navratna: The title given originally to nine Public Sector Enterprises (PSEs) identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become global giants". e. RTP: f. De-licensing: Banning or withdrawing the license or permission given to a Company or Industry to operate. g. R&D: Research and Development Department of a Company or any other Business Entity that focuses on Innovation and Research h. TRIMS: The Agreement on Trade-Related Investment Measures (TRIMs Agreement), one of the Multilateral Agreements on Trade in Goods, prohibits trade-related investment measures, such as local content requirements, that are inconsistent with basic provisions of GATT 1994. i. MNC: A Multi National Corporation is which operates it Production units and delivers Services in more than one Country. j. NRIs: Non-Resident Indians are those of Indian origin but residing temporarily or permanently outside India.

2 a. Business: An economic activity in which goods and services are offered or exchanged for Money or Moneys worth. Business earlier: Characterized by Barter System, Mercantilism Business of today: Driven by Technology and Human relations. However the grounds of Business being exchange of Goods and Services for Money and its worth.

b. Vision: A vision statement is sometimes called a picture of your company in the future but its so much more than that. Your vision statement is your inspiration, the framework for all your strategic planning. A vision statement may apply to an entire company or to a single division of that company. Whether for all or part of an organization, the vision statement answers the question, "Where do we want to go?"

Examples: a. A vision statement for a company offering whale watching tours: Within the next five years, ZZZ Tours will become the premier eco-tour company in ________, increasing revenues to 1 million dollars in 2010 by becoming internationally known for the comfort and excitement of the whale-watching tours it offers. Mission: A mission statement is a brief description of a company's fundamental purpose. A mission statement answers the question, "Why do we exist?" The mission statement articulates the company's purpose both for those in the organization and for the public.

Examples: Slogans derived from some mission statements serve as the basis of successful ad campaigns, such as the B.C. Credit Unions' "people before profits" campaign. Objective: A business objective is something the business is aiming toward or a strategic
position it is working to attain. Usually it is a step in the strategy. Objectives are similar to goals, but often have success/failure rather than quantifiable metrics.

3 a. Economic Environment: The totality of economic factors, such as employment, income,

inflation, interest rates, productivity, and wealth, that influence the buying behavior of consumers and institutions.
Importance of Economic Environment:

Business fortunes and strategies are influenced by the economic characteristics and economic policy dimensions. Nature of the economy: the general level of development of the economy has lot of implications for business it has significant bearing on the nature and size of demand, government policies affecting business etc. A widely used method of classification of the economies is on the basis of the per capita income ( i.e the average annual income per person). Accordingly, countries are broadly classified as low income, middle income and high income economies.

Low income economies : Per capital GNP of $ 375 or less Middle income : GNP between $ 756 and $ 2995 High income economies: GNP of $ 9266 and above

b. New Economic Policy 1991

Outcomes of new Economic Policy: L P G Importance: Liberalization. Integration with world economy with. dismantling of tariff wall. Protection of foreign direct investment. upgrading the technology of production. Financial stability. Outward looking policies. Deregulation of domestic market.

4 a. Responsibilities of Government to Business: Subsidies, Liberal Licensing, Technology Transfer (Imports in particular), reduced taxes

b. Importance of Consumer Protection Act: Safeguards the rights and interests of Consumers Avoids Adulteration and other unethical practices Certain rights are laid in Consumer perspective thus giving preference to Consumer benefits

5 a. Culture Definition: The system of shared values, beliefs and Attitudes that characterizes a Society or an Organization or a Nation is called Culture Impact of Culture on Business: Culture determines the Business The Business Starters should carefully study the Culture of the region where they want to start the Business Non-sync between Culture and Business Product leads to failure of Business

b. Impact of Technology on Business: Enhances and fastens Business Processes and Operations The business sees good Profits Less Stress and burden on Employees Reduced requirement of man power thus labor costs are saved Challenges Employees should be trained on new Technology Government restrictions on Technology import should be carefully handled High Cost of Implementation Resistance from Employees should be tackled

6 a. Merits and Demerits of MNCs Merits

1. MNCs create employment opportunities in the host countries. It helps to create a pool of managerial talent in the host country. 2. Helps removal of monopoly and improve the quality of domestic made products. 3. Promotes exports and reduce imports by raising domestic productions.

4. Encourages the world unity and all resulting in world harmony 5. Job and career opportunities at home and abroad in connection with overseas operations.

Demerits 1. 2. 3. 4. 5. The host county is likely to lose its economic sovereignty The host nation may also experience some loss of control over its own economy Feeling that labor is being exploited by the MNC/ Outsourcing Loss of cultural moorings The problem of Dumping Example Chinese products are priced low in Indian market.

b. Public Sector Enterprises and reforms related to them: A Public sector Enterprise is that which is held under the control of Government and major stake and share are held by Government Reforms: List of Industries reserved for PSU reduced from 17 to 8 List of Sectors reserved for dominance by Public Sector abolished Disinvestment in selected PSUs to raise finances

7 a. Business Ethics:
Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Ethical Problems to Business A business cannot claim to be ethical firm if it ignores unethical practices by its suppliers e.g.Use of child labor and forced labor Production in sweatshops Violation of the basic rights of workers Ignoring health, safety and environmental standards

b. Industrial Policy 1991 Reforms were made for Public Sector, Trade Policy, and Environmental issues

Key Reforms: Abolished Licensing for all Projects except in 18 Industries MRTP Act amended to eliminate prior approval to large Companies for capacity expansion PSU reserved Companies cut down from 17 to 8 PSU dominant Industries were withdrawn Small Scale enterprises allowed to offer up to 24percent of shareholding to large enterprises