MGT211 Midterm All in One Download PDF

WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Lecture 01 Business: Definition: Any activity to earn profit. The word “business” is derived from the term “busyness.”  Entrepreneurship A phenomenon...

WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Lecture 01 Business: Definition: Any activity to earn profit. The word “business” is derived from the term “busyness.”  Entrepreneurship A phenomenon in which a person searches for an opportunity and try to avail it.  Components of business Industry Commerce  Industry Conversion of raw material into finished goods. This is a form utility.  Types of Industry Primary Industry Extractive Industry _ Extraction of underground resources. Genetics _ People doing business by changing genes.  Types of industries Secondary Industry Construction _ Construction of buildings, roads, bridges etc. Manufacturing _ Conversion of raw material into final goods. Services _ Banking, consultancy, accountant, Lawyer, Interior decorator, designer, music composer etc.  Commerce All those activities which start from the warehouse of the manufacturer to the buyer.  Types of commerce Trade Trade means buying and selling Aid to trade Institutions that are meant and build to assist and support the trading process. --------------------------------------------------------------------------- 1 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Factors of production Labor _ People working in an organization. Capital _ Amount invested by investor in the business. Entrepreneurship _ Management ability of the people who are running the business. Physical Resources _ Land, labor, building, vehicles, machinery etc.  Economic System A system for allocation of resources.  Types of Economic Systems Planned Economy Free market Economy  Types of environmental forces External Forces Factors found outside an organization. These factors are not controllable by the organization. Types of environmental forces Internal Forces Factors within the organization. These are controllable by the organization.  SWOT Analysis Strengths Weaknesses Opportunities Threats Lecture 02  External Factors Economy of the country Per capita income of the country General employment or unemployment Economic Growth Exchange rate Inflation rate  Demographic factors Demographic factor is a study of population Population brings customers. Population tells the size of market and nature of customers. Total Population Population Distribution Distribution on the basis of gender In Pakistan female population is further divided into two categories: Household Women --------------------------------------------------------------------------- 2 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Working Women Population growth rate The rate at which population of an area increases/decreases.  Political and Legal factors Political Factors Preference and priorities of the Government Attitude of the Government towards Exports Government taxation policy Legal factors Laws related to Health Laws related to Imports and Exports Laws related to Taxation Laws related to Packing Laws related to Child Labor Laws related to Labor Union  Technological Factors Business people have to pace with the technological advancements.  Socio cultural Factors Religion Followers of one religion have influence over the buying behavior of the society.  Natural Factors Act of God Natural factors are out of our control Business people will develop product considering natural resources Lecture 03  Sole Proprietorship: Definition Sole Proprietorship is that type of business which is owned by one person.  Advantages of Sole Proprietorship Freedom in formation The easiest to establish Individuals are allowed to decide without interference of any other person. Easier to transfer the ownership of the business People wholly solely enjoy the ownership of the business and profits Individual has unlimited opportunity to expand the size of the business Individual can keep the secrets of the business intact Individual has personal interest in the business Owners can make speedy decisions Easy to dissolve --------------------------------------------------------------------------- 3 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Disadvantages of Sole Proprietorship Limited amount of capital Continuity problem Sole Proprietorship has limited life and is dependent on the owner Owner of the business has unlimited liability towards people whom he has to pay  Partnership A relationship of the people to share investments and profits Partnership act 1932 governs all affairs of the partnership  Advantages of Partnership More capital Relatively easier to form Sharing of responsibility Light credit standing Business can have more loan from various sources Secrecy Public Confidence Better Decision Easy to dissolve Lecture 04  Disadvantages of Partnership Unlimited Liability Partners will have to pay all the debts of the business even from their personal property. Shorter Life Partnership ends when one of the partners dies or becomes insane Limited Capital Partners run the business from their own capital. Sometimes, that capital becomes limited to meet the requirements of the business. Lack of interest Profit is divided among the partners. So, partners do not take keen interest in the business. Slow Decision Making Partners might have different point of view regarding a particular matter. So, decision making is relatively slow. It is difficult to transfer the rights of partnership. There is always a chance of conflict.  Types of Partners Active Partner is one who participates in all the affairs of the business. Secret Partner is one who has invested in the business but he/she is not known to general public. Sleeping Partner is one who is not very active in the affairs of the business. Senior Partner is one who has invested the maximum amount in the business. Junior Partner is one who has invested the minimum amount in the business. --------------------------------------------------------------------------- 4 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Types of Partnership Partnership at will Life of the partnership depends upon the will of the partners. Limited Partnership That business in which at least one partner has the limited liability. Investor is liable to the amount; he/she has invested in the business only. This is called Limited Liability There will be at least one partner who has the unlimited liability. Particular Partnership Partnership formed for a particular purpose. It is dissolved automatically at the achievement of the purpose. Termination of Partnership By Notice A partner can terminate partnership by giving notice to other partners due to any reason. Upon Death Partnership will automatically be terminated at the death of any partner. Partnership Deed A document that contains the terms and conditions of the business.  Contents of Partnership Deed Date on which the agreement was made. Name of the business. Nature of the business. This clause will cover the scope of the business. Names, addresses, telephone Numbers and emails of the partners. Capital of the business. If duration is attached with any business that should clearly be mentioned in the partnership deed. Duties of the partners. Whether any partner is entitled to salary. If yes, how much amount should be given to him as salary. Profit distribution ratio. Whether partners are entitled to withdraw money from the business. If yes, procedure of withdrawals should also be written in the partnership deed. Arbitration In case of a conflict, how that conflict would be resolved before going to the court. The partner should read the partnership deed carefully, add as much clauses as possible and never take anything for granted.  Rights of the partners Every partner has the right to: Participate in all the affairs of the business. Get his/her share of profit from the business. Leave the partnership according to the terms and conditions of the partnership deed. Claim the salary against his/her services. Participate in the management of the business. --------------------------------------------------------------------------- 5 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Lecture 05  Duties of Partners Partners have to maintain accounts which describe the true picture of the business. Partners should use their powers within limits specified in the partnership deed. Partners are responsible to provide accurate information to Government bodies. Partners are responsible to pay their share in case of loss to the business. It is duty of every partner to obey the decision that has been made in the partnership. Partners should not disclose any secret information about the business to any other person. It is a moral obligation and legal responsibility of the partners not to use firm’s forum to take any advantage without intimating to other partners.  Joint Stock Companies Joint Stock Companies are formed under the Companies Ordinance 1984. Joint Stock Company is an association of persons for making profit.  Advantages of Joint Stock Companies We can expand the business Credit facility More capital With more capital and more expertise, companies have more chances to earn more profit. Expansion in the scale of business Responsibility of investor is limited to the face value of shares. This is called Limited Liability. If one person dies or leaves the country, it does not have any impact on the business. Life of the joint stock company is longer than sole proprietorship and partnership. It is easy to transfer rights. Company can hire better experts which results in better management. Public place more confidence in companies rather than in any other form of business. Anyone can exit from joint stock company by selling his/her shares.  Disadvantages of Joint Stock Companies Formation of Joint Stock Company is very lengthy, very complicated and very technical job. Lack of interest. There is not much secrecy found in companies. Companies pay double taxation to the Government. Delayed decision making Power is centralized because there are few people who hold major portion of company’s shares.  Public Limited Company Vs Private Limited Company --------------------------------------------------------------------------- 6 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Number of members For a public limited company, minimum numbers of members are seven. For a private limited company, minimum numbers of members are two. Issue of shares Public limited company is bound to promote issue of shares to general public through media. There is no such provision for private limited company. Name of the company Public limited companies add the word “Ltd.” with their name. Private limited companies add the word “(Pvt) Ltd.” with their name. Annual report Public limited companies have to present their data to general public. There is no such provision for private limited company. Transfer of shares It is easy to transfer shares in public limited companies. In private limited company, shareholder cannot transfer the shares without the consent of other members. Statutory meeting It is obligatory for the public limited company to hold statutory meeting. There is no such obligation for privet limited company Submission of annual report It is obligatory for the public limited companies to submit their annual report to registrar Corporate Law Authority. It is not necessary for private limited company. Taxation Public limited company pays double taxation at different income tax rates. Private limited company pays tax only once at different income tax rates. Lecture 06  Promotion Stage Initiation of idea Further discussion with other people Collection of further information regarding sales, profitability, availability of machinery, restrictions of the Government etc. Some other factors Is there a need for a license for this business? Is N.O.C required from the Government? Promoters have applied for license and permission. If copyrights are involved, permission of the principal company is also required. People started work for getting their own name and business registered. Requirement of funds.  Preparation of Documents Memorandum of the company A document that contains Name, address, objective and capital of the company. Articles of association --------------------------------------------------------------------------- 7 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ A document that contains rules and regulations of the company. Prospectus Prospectus is an initiation for offer.  Incorporation Stage All the documents will be filed to the registrar joint stock companies to seek permission for the business along with the registration fee. Experts will examine these documents and make sure that all claims are justified or not. If they are satisfied, a certificate of incorporation will be issued to the company.  Collection of Capital Promoters will inform the general public that business is going to be started. They will ask the people to invest in the business. This is capital subscription stage. Share or stock is the smallest unit of investment. Stock exchange is a market where people exchange their shares. Debenture is a kind of loan which is acquired from the market. Certificate of commencement is issued by the Government when commencement of business is allowed. Clauses of Memorandum of Association Name of the business We cannot suggest a name that has already been registered. We cannot suggest a name after our National Heroes. Registered office of the company. Objective clause of the business. Authorized capital of the company. Liability clause Liability of the investor is limited to the extent of investment in the business. Association clause.  Articles of Association Share capital of the company. Procedure to change the capital. Procedure for meetings. Procedure for voting. Appointment of directors. Directors are the officials of the company who are appointed to run the affairs of the business. Duties and authorities of directors. Rights of shareholders. Meetings. Meeting of shareholders. Meeting of directors. Disqualifications. Seal of the company. Distribution of dividend. Profit distributed among shareholders is called dividend. Decision for retained earnings. Retained earning is a part of the profit retained by the company for future operations. --------------------------------------------------------------------------- 8 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Appointment of auditors. Winding up of companies. Lecture 07  Shareholders’ meetings Statutory Meeting is the first meeting after commencement of business. Annual General Meeting is the meeting of the company once in a year. Extra Ordinary General Meeting.  Statutory Meeting Section 77 of The Companies Ordinance 1984 deals with such type of meeting. The company must give 21 days notice to shareholders prior to the meeting. Matters to be Discussed: Amount of capital acquired. Details of machinery purchased. Details of development in all areas of the business. Sometimes, issue of share capital does not give minimum amount set by the company. Underwriters are those organizations which guarantee the company to buy the remaining shares, if minimum requirement is not met. Statutory report will also tell about the underwriters and commission paid to them. Information about arrears to be received by the company.  Annual General Meeting All shareholders will participate in this meeting which is held once in a year. The company must give 21 days notice to shareholders prior to the meeting. Objectives of Annual General Meeting Election of directors for the next year. Appointment of auditors. Auditors will review the annual accounts of the company and report on the accuracy of these accounts. Shareholders will elect and approve the appointment of auditors. If auditors are already hired, the shareholders will review their performance and decide whether to continue with current auditors or to change them. Auditors will also be asked whether they are willing to work with the company or not. Declaration of dividend. Decision for directors’ remuneration. Auditors will report on the companies accounts in terms of: Accuracy No fraud found Conformity with the Companies Ordinance 1984.  Extra Ordinary General Meeting This meeting will be called when there are: --------------------------------------------------------------------------- 9 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Some extra ordinary circumstances. Some special type of business. Decision for debentures. The company can change its memorandum and articles of association in extra ordinary general meeting.  Share Capital The capital with which the company gets registration is called Authorized Capital of the company. The part of capital that has been offered to general public is called paid up or issued capital. The part which has not yet been issued to general public is called un issued capital. If people have applied for more capital than required, the company will issue the shares by balloting and return the excess money to the general public. If people have applied for less capital than required, whatever amount has been received will be the paid up capital of the company.  Winding up of the company Voluntary winding up The members of the company decide about winding up of the company. Special Resolution Members will present special resolution in the extra ordinary general meeting regarding winding up of the company. If approved by the members, the company will be dissolved. Winding up by court Members have applied to the court for winding up of business. If court feels that: Business is not in the benefit of the society. Objective of the business is not in line with the culture of the country. Business is deceiving the general public. The court will order that business should be closed immediately. Lecture 08  Co-operative Societies Co-operative societies are group of people who form the business to co-operate with each other. The main purpose of co-operative societies is to co-operate with each other through self help. People join these organizations as volunteers. --------------------------------------------------------------------------- 10 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Advantages of Co-operative Societies This system provides high standard of life due to sharing of resources. Formation is easy because Government support these kind of organizations. People running the business have equal rights in decision making regardless of number of shares or amount invested in the business. Economic Democracy People sit together and decide about the business of the society. Elimination of middle man results in cheaper products. Government gives financial assistance to these type of businesses. Friendly atmosphere is developed in the society due to close relationship in the people running the business. Employment opportunities are created by such businesses. A sense of mutual co-operation is developed in the society. An opportunity to keep demand and supply in balance. This kind of business requires less expenditure.  Disadvantages of Co-operative Societies People do not have sufficient capital to start such business. Unavailability to hire professional manager because: People do not have money in remote areas. There are no such people in those areas. People do not have experience of such business. Lack of secrecy. Unavailability of new technology. These are not businesses in true sense. People might not have confidence in these businesses. Banks might not provide loans to these businesses. Interference of the Government.  Entrepreneurship Entrepreneurship is that ability in which an individual tries to find the opportunity, take risk and avail these opportunities.  Who are Entrepreneurs? People have more entrepreneurial abilities who: Have aspiration. Are more strategic. Have the vision.  Characteristics of Entrepreneurs Resourcefulness Abilities Concern of being good. Lecture 09 --------------------------------------------------------------------------- 11 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Entrepreneurial Characteristics Personal Interest Interest for their own development. Customer Relationship Long term relations with the customers. Desire to establish own business. Need of control. Ability to deal with uncertainties.  Business Plan A document which contains the objectives of the business and the ways to achieve these objectives.  Components of Business Plan There are two situations: Buying a business. Starting from the scratch. Objectives of the business. Marketing Components. Financial Components.  Components of Business Plan started from scratch Objectives of the business: Name of the business. Name should indicate the type of business. Name should be simple. Uniqueness of name. Legal considerations: Avoid the names not encouraged by the law. e.g. National Heroes, religious personalities etc. Location of the business. Marketing Part: Who will be the customers of the business? Where are they located? What would customers like to pay for the product or service? What are the benefits, the customers are expecting from the product or service? Analysis of competitors: What is the nature of competition in the market? Who are the competitors of the business? How product of the business is different from product of the competitors? Promotional Part How will the message of the business be promoted in the general public? How will the business be launched? Financial Part What will be the investment of the business and how much should be borrowed? What are going to be expected revenues in a given period of time? What would be the expected expenses of the business in a given period of time? What would be net income or net profit in a given period of time? --------------------------------------------------------------------------- 12 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Is the business feasible or not? Administrative Part What would be the structure to handle the business? Lecture 10  Franchising An agreement between two parties in which one party passes on the rights to the other party. Rights include: Right to use the trade mark. Right to use the name. Right to use systems, methods and researches. Right to use packing material.  Parties to Franchise agreement There are two parties: Franchiser Franchisee Franchiser is one who sells the rights to franchisee.  Advantages of Franchising Franchiser gets a huge amount of money from franchisee without doing anything. Franchisee gets access to big business. Failure rate of franchise business is lower than any other business. Franchisee uses world wide tested brand and tested procedures that is why failure rate is lower in this type of business. Franchiser provides guidance to franchisee in all affairs of the business. Choice of location Franchiser is always there to support the franchisee in all kinds of matters.  Disadvantages of Franchising High cost. Proportionate profit is given to franchiser by franchisee every year. There are too many restrictions from franchiser on the franchisee.  New Trends in the Business E-Commerce or E-Business Using internet for marketing products. Women in business So many women have come in so many areas of business. Business will be better displayed, well mannered staff, more knowledge of the needs of customers and more market oriented. Global opportunities People have the awareness of global market. Internet has played major role in accessing global markets. In Pakistan, people got huge success globally but could not make a brand name in global market. --------------------------------------------------------------------------- 13 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Factors for lower failure rate Government’s preferences and priorities. Government is convinced to support corporate sector. Businesses are now being set up on more professional grounds. Support from financial institutions. General economy of the country. People are acquiring professional knowledge about business. Government has developed many training centre to train people related to business. Skills development. Institutions to develop man power. Lecture 11  Causes of Failure in Business Causes of Failure in People are not capable of handling business. Some people are not capable enough to know markets. People should try to learn the abilities to run the business. People do not have experience required for a business. We need to have control over: Production Process Cost Wastage Complaint handling Quality Insufficient capital Bad Luck National Disaster  Reasons for Success in Business Hard work Dedication and Commitment Response of Market Competence – The ability to work Knowledge of Market Knowledge of Product Knowledge of Systems Luck and Act of God Law of Government Law related to health Climate change Disaster Joint Venture Two or more people or organizations join hands and decide to do a business. Advantage of Joint Venture Combination of skills and abilities. --------------------------------------------------------------------------- 14 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Strategic Alliance Two or more than two organizations collaborate for mutual profit. Decision involved in Strategic Alliance Profit Sharing Client Handling Merger Two or more organizations combine together and form a new organization. Acquisition One business acquires the other business. Advantages of Acquisition Expansion of size To reduce competition Lecture 12  Imports Goods produced somewhere else and sold domestically. Chemicals Technology (Machinery, Software & Hardware, Expertise) Factors to be considered while importing Identification of products to be imported. Procedures, methodologies, technical processes and documents for imports. Exports Goods produced domestically and sold in some other country. Advantages of Exports Support of Government. High Profits. Pride for the country. Utilization of production capacity. GATT – General Agreement on Tariff & Trade. An agreement between the countries that encourages international trade. WTO – World Trade Organization Scope of WTO WTO insists on removing the artificial barriers to encourage international trade. WTO was organized on January 01, 1995. Per Capita Income Per Capita = Total income of the country/ Total population  Tools for measuring economies of the world World can be divided in to three major categories on the basis of per capita income. High income countries Those countries where people are earning US $9000 or more. Middle income countries Those countries where people are earning between US $765 and $9000. --------------------------------------------------------------------------- 15 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Tools for measuring economies of the world Lower income countries Those countries where people are earning below US $765. Pakistan has a little below than US $765 income line and is moving towards middle income class countries. Pakistan is exporting Sports items Agricultural products (rice) Textile products (Bed Sheets, T-Shirts, Towels etc.) Import and Export Balance Gap between imports and exports is called surplus and deficit. It varies from country to country. Balance of Payment Balance of payment = Total receipts - Total payments If receipts are greater, balance of payment is favorable. If payments are greater, balance of payment is unfavorable.  Level of involvement in international business Imports or Exports We can be importer and exporter. We try to see opportunity in international market to consume surplus products. This is called exports. International Firms International firms have operations world wide. These firms are also called multinationals. Multinationals design products separately for each country. Global Organizations Those organizations which consider the whole country as single market are called global organizations. These organizations have standardized products all over the world.  International Organizational Structure Independent Agent A person or an organization that works for an exporter or importer. Appointment of representative abroad. Licensing agreement, Independent Branch Office. Strategic Alliance. Direct Foreign Investment. Lecture 13  Barriers to International Trade Social and Cultural Changes. Different countries have different life styles. --------------------------------------------------------------------------- 16 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Religion. Every religion has its own set of rules for its followers. Religion asks for spending on certain things and stops from spending on certain things. Climate Laws There are different laws in different parts of the world. These include laws related to: Health Safety Customer Relationship Pricing Packing Environment Economic Differences Per Capita Income is different in different countries. Different people have different economic systems. People preference for a particular product Political System Tariff Tax levied on goods entering into a country. It is also used as a measure to reduce imports in a country. Quota Limit imposed by one country on importing commodities from another country. Subsidies Concessions provided by a country to its producers in order to protect economy. Business Ethics Ethics are basic beliefs, a company decides to pursue and implement during a course of action. Ethical Behavior A system that confirms the beliefs of the society. Business is being run within that system. Corporate Citizenship is a practice of the company confirmed by the society. Ethical Behavior in Managerial Practices include: Responsibility towards employees. Relationship with other organizations. Interaction with Government. Plans to initiate ethical behavior towards people. To initiate ethical programs. Corporate Social Responsibilities To think about benefiting the society and avoid harmful activities for the society is called Corporate Social Responsibilities. These include: Ethical attitude towards customers. Dealing with employees. Ethical communication with Government and local bodies. --------------------------------------------------------------------------- 17 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Ethical behavior towards stake holders. Lecture 14  Stake Holders People who are interested in the affairs of the business in one way or the other. Stake holders include: Customers Employees Suppliers Bankers Government Society at large  Rights of Customers Consumerism Protecting the rights of customers. To get a product which is up to the expectations of the customers. Customer Safety. Right to get information about: Product Supplier System Procedures Standards Ingredients of the product Origin of the company Right to get information about: Method of manufacturing Quality standards Right to be heard Right to choose Quality Service  Responsibilities of the Organization towards Environment Reprocessing of waste water. Recycling of waste material. Processing of smoke. Reprocessing of heat.  Ethics for Advertising Truthful or Truth less Communication Objectionable Products Objectionable Appeals Fear Factor Sexual Connotations Objectionable Timings Smoking --------------------------------------------------------------------------- 18 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Selling product to underage customers Legal Commitments Discriminations Health and Safety of Employees  Whistle Blowers People who see irregularities and bring them in the knowledge of the management. Management Getting things done through others. Manager A person who practices the functions to achieve management’s objectives.  Functions of Managers Planning Thinking for the future. Organizing Decision about activities performed by the workers. Grouping the activities Delegation of authorities Staffing Filling out the vacant positions. Coordination Communication Receiving information from various sources. Processing of information. Dissemination of information. Distribution of information. Conflict handling Negotiation Resource Allocation Controlling  To make sure that organization is moving towards the right direction. Lecture 15  Managerial Skills Conceptual Skills Abilities to think at planning and organizing stage. Interpersonal Skills Abilities to deal with others. Technical Skills Knowledge of processes and operations. Goals Destination where a company wants to reach.  Strategy Set of plans for long term orientations. --------------------------------------------------------------------------- 19 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Levels of Strategies Corporate Level Strategies The strategies that cover all the operations, processes and units of organizations. Strategic Business Unit (SBU) A part of organization that requires separate planning. Functional/Operational Level Strategies The level at which all functions or operations are performed.  Objectives of Goal Setting Goals give us directions. Resource Allocation. Setting culture of the organization. Assessment of performance.  Mission Statement The purpose for survival of an organization. Mission Statement describes life time objectives of the organization. Mission statement is a general statement. It is written in terms of: Customer satisfaction Quality of life Service of humanity Mission statement is a long term plan.  Types of Goals Long Term Goals Medium Term Goals Short Term Goals Short Term Goals A plan for less than one year. Medium Term Goals A plan for one year to three years time. Long Term Goals A plan for more than three years. Length of plan depends upon type of activities. Research shows that people, who plan, have higher rate of success in life. Human Resource Management (HRM) Human Resource Management is an area that deals with people who work in organizations. HRM deals with the activities of people. These Include: Attracting people in the organization Maintaining them Recruitment Selection HRM deals with the activities of people. These Include: --------------------------------------------------------------------------- 20 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Training Performance appraisals Compensation Health and Safety  Scope of HRM Human Resource Panning Type of people required When required How many people required Job Analysis Recruitment Training Compensation Health and Safety Labor Union  Job Analysis Collecting all the information related to a job. It is divided into two parts: Job Description Job Specification Job description describes the activities of a particular job. It includes: Job Title Job Location Working Environment Supervision Job Specification Job Specification describes human skills required to perform a job. It includes: Qualification Gender Age Experience Special Skills attitude --------------------------------------------------------------------------- 21 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Lecture 16  Human Resource Planning HR Planning Includes: What is the gap between human Resource demand and supply in the market. What is the condition of human resource supply in the market. Sources to find people Internal Sources External Sources Skills Inventory A chart that shows skills of workers in the organization. Replacement Chart A chart that shows turnover in an organization.  Turnover Rate Tendency to leave jobs in an organization. Retention. To retain the people in the organization. Expansion Plans.. Replacement on the basis of performance.  Recruitment The process of attracting the people for the job. Advantage of recruitment within the organization People are already trained. Advantages of recruitment outside the organization Variety of Talent Variety of Abilities Variety of Qualifications Equal Employment Opportunity No discrimination on any grounds for hiring people.  Sources to find People Informal Search This method is used when reference is also required. Job Posting Putting notices for job on various places in the organization Places can be: Cafeteria Fair Price Shop Sports Field Putting notices for job on various places in the organization Places can be: Reception Desk Notice Board Union Office --------------------------------------------------------------------------- 22 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Educational Institutions Consulting educational institutions for suitable candidates for the job. Educational Institutes are consulted when: Fresh Graduates are required. There are not many institutions for a particular job. Short Listing of institutions. Organizations involve teachers in the selection process. Professional Associations This method is used when people for senior posts are required. Recruitment Agencies These are the organizations which have expertise in selecting people. These agencies are used when: Time span for selection is short. Jobs are highly technical in nature. Employer and employee are at a distant place. Advertisement Giving advertisement in media. Media is used when: Large numbers of jobs are available. Disadvantages of using media Large numbers of applications are received. It is difficult to handle large number of applications. Costly  Selection The most important stage in HRM process. It includes: Filling up forms Interviewing people Developing tests Application Blank A form designed by the employer for the prospective employee to fill it out. It records data according to the requirement of the organization. Test and Interview Use of test and interview depends upon the nature and level of the job. Types of Tests Achievement Test Test of knowledge acquired by the candidates in educational institutions. Psychological Test To determine the attitude and traits of the candidates. Skills Test Aptitude test Test of prior learning Skills test Medical Test --------------------------------------------------------------------------- 23 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ To keep in record the physical condition of the candidate before joining the organization. To make sure that candidate does not have any transferable disease.  Considerations for Test Development Validity Reliability Validity Content Validity Contents of the test should be relevant to the requirement. Construct Validity Sequence of the questions. Face Validity Appearance of the test. Lecture 17  Infrastructure for Test Space Proper Temperature Enough Quantity of Stationary Evaluation of Test  Interview Any verbal interaction is called interview.  Job Interview A method of selection in which we interact with the candidate verbally.  Types of Job Interview Telephonic Interviews Preliminary Interviews Selection Interviews  Techniques for Final Interviews Pattern Interview Pre-decided questions are asked in a pre-defined sequence. Non Pattern Interview Questions are asked according to the situation  Shortcoming of Pattern Interview Interviewer can not ask any question other than pre-defined questions.  Shortcoming of Non Pattern Interview Possibility of non-professional and irrelevant questions.  Mix Interview An interview in which some questions are pre-defined and some are situational.  Ways to conduct Interview One person interview --------------------------------------------------------------------------- 24 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Panel Interview A group of people related to the job conduct interview.  Arrangements for conducting Interview Proper place Preparation for questions Read out the resumes of candidates. Human Resource Development Human Resource Development is done through training.  Methods for Training On job Training Learning while working Off job Training  Difficulties in On Job Training In certain jobs, on job training is not possible. Methods for Off Job Training Lectures Cheaper method of training. For some jobs, it is the most appropriate method. Vestibule training Artificial situation created for training people. Role Play Business Games Case Studies  Performance Appraisals Evaluation of performance  Reasons for performance appraisals Validation of Human Resource Program Pay for performance  Compensation Compensation can be: Monetary reward Non Monetary reward  Incentives Plans for encouragement of employees in the organization.  Types of Incentives Organizational Level Incentives Paid to everyone in the organization. Individual Incentives Paid to individual employees who have done good job. Lecture 18  Individual Incentives Employees are paid for: Good performance on job. --------------------------------------------------------------------------- 25 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Good performance during training.  Collective Incentives Incentives are paid to whole department. Incentives for the whole organization can be: Profit Sharing. Benefits other than salaries and wages. Compensation Salary is paid for longer period. e.g. for a week, for a fortnight, for a month or for a year. Wages are paid for short term period. e.g. for a day or for an hour or on the basis of units completed. Other ways for compensation can be: Free or cheaper food. Retirement Plans. Pensions. Medical Facilities. Transportation Facilities. Assistance for children education.  Equal Employment Opportunity (E.E.O) No employee on any base will be discriminated for offering job opportunities. Base can be: Gender Nationality Religion Area Life Style Race In many countries, it is against the law and ethics. Some people are perceived fit for a particular job. This concept is known as Stereotyping. Managers should not evaluate performance on the basis of: Gender Nationality Race Religion  Why do we need Equal Employment Opportunity (E.E.O)? Job description does not provide any base for discrimination. If law requires, we have to obey the law. Ethics. Research has shown, variety of people can perform better in an organization. This phenomenon is called Work Force Diversity. Managers should encourage different types of people to join organization in order to enhance productivity.  Collective Affairs of Employees Employees form labor unions in the organization. There could be more than one labor organizations in the company. --------------------------------------------------------------------------- 26 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Collective Bargaining agent (CBA) is a person who has been elected by all the workers in the organization through legal procedures. Negotiations can be on: Salary Working Conditions Timings Facilities Benefits Attitudes  Motivation Motivation is a force that forces people towards a task.  Classical Theory of Motivation People are motivated because of money or material objects.  Fredrick Taylor’s Theory of Scientific Management Every job should be studied scientifically. Jobs should be divided on the basis of tasks and skills of labor. Pay should be attached with productivity.  Time & Motion Studies Time spent on jobs should be studied using scientific devices and motions of machines or human motions.  Objection on Fredrick Taylor’s Theory of Scientific Management This theory considers human beings as machines.  Hawthorn Studies Basic purpose of these studies was “Effect of light on productivity”. Productivity depends upon human relations. Shortcoming of this theory was that human moods, human behavior, human liking and disliking and human interest were ignored. Hawthorn Studies became a base for behavioral studies in organizations. Lecture 19  McGregor Theory - X Every normal human being dislikes work by nature. People work because of some pressure. Pressure can be: Salary Advancement Respect Some other force  McGregor Theory - Y People inherently like to work.  McGregor Theory – X & Y X-Type managers might: Use punishment and threat to make people work. Control activities of the work very closely. --------------------------------------------------------------------------- 27 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Y-Type managers will identify the barriers which are causing problems for workers and try to eliminate those barriers. In some situations, managers have to adopt X-type behavior and in some situations, they have to adopt Y- type behavior. Culturally, in societies, managers are moving towards Y-type behavior from X-type behavior.  Why do People work? Need A state of felt deprivation. Maslow’s Hierarchy Of Needs  Biological Needs Biological needs are related to human body’s survival. e.g. food, drink, air, sleep etc. Safety Needs Safety from: Cold Heat Sand Storm Earthquake Animals Enemies Social Needs Self Esteem Worth attached by human beings to themselves. People who have high self esteem are more productive. Self Actualization Fullest utilization of one’s potential.  Use of Hierarchy in Motivation --------------------------------------------------------------------------- 28 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Biological needs can be fulfilled by: Giving salaries. Providing free or cheaper food to employees. Providing routine items at concessional prices.  Safety Needs  Organization can provide safety devices to employees. For instance: Helmet Glasses Gloves  Safety Needs  Organization can provide safety devices to employees. For instance: Special purpose shoes Medical Facilities Houses House rent Pick & drop service Insurance Pension plans Preventing people from accidents Social Needs Organizations encourage informal organizational activities. These include: Combined lunch or dinner Sports Fun fair Musical Programs Lecture 20  Use of Hierarchy in Motivation  Self Esteem Worth of human beings. These include: Designation of Individuals. Status in the organization. Recognition of employees in the organization. Self esteem has direct relationship with productivity. Various techniques can be used to make self esteem of employees high. These can be: Finding titles for employees Recognition Awards Cash rewards Increment in the salary Promotion Raising status of employees --------------------------------------------------------------------------- 29 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________  Self Actualization Fullest utilization of one’s potential. These include: High Challenges High position in the organization  Criticism on Maslow’s hierarchy theory It is possible that human needs may deviate from the order given by Maslow. There is a question mark whether needs finish after self actualization or not.  Two Factor Theory or Hygiene theory Hertzberg presented this theory by taking the phenomenon of human hygiene. Two factors work in the organization: Hygiene factors Motivators Factors required to keep employees in the organization are called hygiene factors. Factors used to get high productivity from workers are called motivators. Hygiene factors fall with the biological needs, safety needs and partially with social needs of Maslow’s hierarchy theory. Motivators are almost similar to social needs, Self esteem needs and self actualization needs of Maslow’s hierarchy theory. Both factors should be present in the organization at the same time to get productivity from workers.  Expectancy Theory People in the organization are motivated with: Expectations about reward. Assurance of getting reward by doing a particular task.  Equity Theory Equivalence in inputs and outcomes. Inputs of employees in an organization are: Level of education Skills Experience Reputation Hard work Connections Outcomes of employees in an organization are: Salaries Designations Promotions Benefits Social Status Respect in the organization Opportunities Equity Theory Individual will also compare his input/outcome with other individual’s input/outcome.  How can Equity Theory be implemented? --------------------------------------------------------------------------- 30 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Managers have to explain reasons for the difference of outcomes of employees in order to keep them motivated. People compare their rewards with the market as well. Lecture 21 Reinforcement Theory To strengthen desired behavior at work place. To force the workers to adopt that behavior. There are two ways for reinforcement: Positive reinforcement Negative reinforcement Positive reinforcement means to encourage a particular behavior. Negative reinforcement means to discourage a particular behavior. Human Relations Human Relations can be: Employee to employee Employee to employer Purpose of human relations is to give a feeling of a family. Job Enrichment This is needed when people are under performing. Job enrichment means adding something into the job. To provide opportunities to employees to apply their talent, knowledge and creativity for performing more in the organization.  Job Re-designing To re-design a task.  Job Sharing People share the work.  Management by Objective (MBO) Idea of MBO is opposite to the traditional management. Decision and planning is made in collaboration with the subordinates.  Difficulties with MBO People do not understand the philosophy of MBO.  Application of MBO Subordinates set their goals by themselves with the consultancy of top management. Psychological Contract --------------------------------------------------------------------------- 31 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ A contract between employee and the organization. With the achievement of psychological contract, workers will have high level of morale and satisfaction.  Leader A person who influences people for the achievement of pre-defined goals. Leadership Ability of an individual to influence others.  Difference between a leader and a manager Leader Manager Leader is a change agent. Manager is more concerned with the status co. Leadership Powers of leaders Position powers Personal powers All those powers/authorities which are attached to a position are called position powers. Position powers are transferable. Powers attached with some person are called personal powers. These are non transferable.  Types of leaders  Autocratic leaders Leaders who take decisions by themselves. This type of leadership is used in those circumstances when there is not much time for decision making. These types of leaders have more centralized powers. Managers take more powers when: Managers do not trust their subordinates. Subordinates might not have enough training.  Democratic Leaders Democratic leaders share the ideas. In this style, leaders will encourage more communication.  Free-Rein leaders Managers depend more upon subordinates. Encourage the subordinates to make decisions by themselves. This approach is practiced when: Staff is highly motivated. People are working in synergistic environment. Fully trained people.  Difference of communication in leadership styles In autocracy, there will be downward communication but no upward communication. i.e. one way communication. --------------------------------------------------------------------------- 32 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ In democracy, there is both way communications. I.e. upward and downward communication. In free rein, there will be more communication among subordinates and occasional communication among subordinates and managers. Method of decision making depends upon the situation.  Contingency approach of Leadership Every job has its own uniqueness. With the change in task, different type of leaders and different leadership style is required. Lecture 22 Marketing All those activities which make the exchange possible. Exchange includes:  Exchange of goods, services and ideas from one person, organization and place to another person, organization and place. A system of business activities designed to plan, price, place and promote goods, services and ideas to potential customers.  Potential Customers A person, a body, an institution or a firm who has: Need Money Willingness to spend money.  System A set of interrelated and interdependent activities.  Planning for marketing What should be marketed? When should be marketed? Where should be marketed? Distribution Pricing What is going to be the price of the product? Promotion Should the product be promoted or not?  Marketing Product is: Anything that is offered for sale in the market. All those things which are tangible. Services are intangible. i.e. which are not touchable. Marketing of ideas.  Marketing Marketing ideas can be applied on non business activities. This is called social/societal marketing. This includes: Asking for donations. Drive slow. Say your prayers. --------------------------------------------------------------------------- 33 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ Need is a state of felt deprivation. Marketers satisfy the needs through products, services, objects and ideas. Market is a place where people exchange goods, services and ideas. Stages in Marketing  Production oriented stage All the efforts are made to produce more and more.  Product oriented stage Management focuses on quality of product rather than quantity of product.  Sales oriented stage Sellers feel the need of an organized institution that coordinates all activities related to sales.  Marketing oriented stage Unsatisfied needs of the customers are satisfied.  Societal Marketing stage Benefits of society are considered by the organizations.  Value Difference between cost and benefits of the product. Utility Ability of any commodity to satisfy the needs.  Forms of Utility  Time Utility Customers get the commodity when they want.  Form Utility Converting the shape of the product from one form to another.  Place Utility Transportation of product from one place to another.  Ownership Utility Product owned by the manufacturer is distributed to the end buyers through different steps. --------------------------------------------------------------------------- 34 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  WWW.VIRTUALINSPIRE.COM _____________________________________________________________________ --------------------------------------------------------------------------- 35 For Registration on www.virtualinspire.com u can use Firefox or chrome or Any latest Internet Explorer.......  MGT211 1500+ mcqs Mid term Searching file Grand Quiz Created By Orange Monkey Team 1st file correct 1. Sole proprietorship always enjoys 100% of profit tax 2. A document that contains rules and regulations of the company. Articles of association 3. Which of the following have powers of decision making in joint stock company? Board of orders 4. __ _ is no liable for the debt of the partnership business Sub partner 5. Which of the following is held only once in the life of a public company? Statuary Meeting 6. It is difficult to transfer the rights of owner ship in? Sole proprietor ship 7. Which one of the following is Not a type of business organization Cooperative societies 8. Effective interest rate is different from nominal rate of interest because All options 9. Balance sheet of a company reflects Organizations a financial health at a specific point of time 10. Which of the following are known as Discretionary financing?  Long term liabilities 11. Identify, what can be the biggest advantage of a small partnership over a sole proprietorship? Capital can be raised easily 12. Whichofthefollowingtechniqueisusedtoselectdifferentinvestmentoptionssoas to reduce risk of losing the invested money? Diversification 13. Which of the following can be categorized as opportunity for an organization? Good product development 14. Which of the following item is used to estimate the cash flows while employing percentage of sales of method? Sales of revenue 15. Which of the following is an example of genetic industry? Poultry form 16. Which of the following is not an example of non profit making organization? Partnership 17. All of the following can be the advantage of the franchise business Except Independency of business 18. Statutory meeting is held by which of the following companies? All options 19. Two or more organizations combine together and form a new organization. Merger 20. In which type of business, there is easiest dissolution? SOLEPROPRIETORSHIP 21. When international trader restricts due to safety, which one of the following barriers exists? Laws 22. Which of the following is NOT an attribute of sale proprietorship business? Unlimited liabiltiy 23. Which is the first stage in the formation of Joint Stock Company? Promotion stage 24. Which of the following is a new trend in which two or more organizations combine together and form a new organization? Merger 25. Business benefits the people by providing them. Large number of services 26. Statutoryreportmustbesendtotheshareholderbeforemeetingthatiscertifiedby atleast. 3 directors including CEO 27. __ _ describes the government payments given to certain industries to help offset some of their costs of production? Subsides 28. Profit distributed among shareholders is called_ Dividend 29. __ generally has unlimited liability. The owner of a sole proprietorship 30. The term ‘tariff’ as used in international trade, refers to A tax on imports 31. A market survey is important because it tells you.  All options 32. On which of the following dates Companies Ordinance came into force? January 1 ,1985 33. Two or more people or organizations join hands and decide to do a business, formed a separate entity is called __ _ Joint venture 34. Tothinkaboutbenefittingthesocietyandavoidharmfulactivitiesforthesocietyis called_ _ Corporate social responsibility 35. When a person provides his services on the basis of his specialized knowledge and experience is term edams Profession 36. Which is the first stage in the formation of Joint Stock Company? Promotion Stage 37. Which of the following is the total out put of goods and services produced by an economic system in a given period of time? Aggregrate Output 50. All of the following statements are true regarding partnership excepts____ _ _ There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits. 51. Those countries where people are earning below US$765 are knownas. Low income countries 52. Those countries where people are earning US$9000 are known as. High income countries 53. Those countries where people are earning between US$9000 TO US$765 are known as. Middle income countries 54. All of the following barriers exist due to economic differences in international trade EXCEPT; Different environemnt 55. _ _are the government taxes on imports that raise the price of foreign goods and make them less competitive with domestic goods Tariff 56. Which of the following is not a secondary industry? Genetic industry 57. The difference in value between a country’s exports and imports is called. Balnce of trade 58. Which of the following is the partner who does not take part in the management of the business but is known to the public? Silent partner 59. Which of the following is not a characteristic of a business? Voluntarily contribution 60. The countries become a___ _ when the value of imports exceeds than value of exports in the balance of trade Creditor 61. Which of the following is not an example of non-profit making organization? Partnership 62. _ _meeting must be held at least one in three month and at least four times in a year Director’s meeting 63. Which of the following have not active participation in the management of the partnership firm? Sub partner 64. Which of the following should be considered when designing a business plan?  All options 65. In which meeting of the joint stock company, the board of directors is elected by the shareholders? Annual general meeting 66. _ _is one who has invested maximum amount in the business? Senior partner 67. _ _is a kind of loan which is acquired from the market. Debenture 68. The notice of the statutory meeting must be sent to each___ at least___ _ before the meeting Shareholders, 21 days 69. Who signs the documents on behalf of the joint stock company? Common seal is used for its signature 70. Which of the following have a separate legal entry from its owner? All options 71. Two or more that two organization collaborate formation profit but the reins separate entity formed is called_ _ _ Strategic Alliance 72. Which of the following is Not as aspect to purchase a franchise business? Independency 73. In_ _----------- a central body will allocated the resources and then decide how these resources will be distributed. Planned economy 74. Which of the following is an trend, in which one business acquires the other business instead of ordinary. Acquistion 75. Which of the following business type can avail some concessions from the government?  Joint stock company 76. _ GENERALLYhasunlimitedLiabili ty The owner of a sale proprietorship 77. The limit imposed by one country on importing commodities from another country is known as. Quota 78. Which of the following is not specially categorized as’ secondary industry’ Foreign industry 79. The buying and selling of goods by way of electronic media, such as telephones iscalled E. commerce 80. Which of the following does Not belong to the right of the business? None options 81. Which of the following statement is false Joint Venture do not provide opportunities to acquire new expertise 82. If the value of exports exceeds than value of imports the balance of trade is said tobe favorable or a Trade surplus 83. The first stage in Evolution of business is. Entrepreneurship 84. Inwhichofthefollowingindustryrawmaterialisconvertedintofinishedorsemi finished goods. Manufacturing 85. In which stage of the company formation MOA and AOA are submitted in the register’s office? Incorporation stage 86. The two major sources of raising funds or financing a business are Owner’s capital & Borrowed funds 87. AllofthefollowingarethecontrollablefactorsforsuccessinbusinessEXCEPT. Statelaws 88. Auditors are generally appointed and their remuneration fixed at the_ _ Annual general Meeting 89. Which of the following is NOT the advantage of co-operative society? Monopoly 90. The first annual general meeting should be held with the _______ of incorporation of a company. 18 months 91. All of the following, fall in the category of business EXCEPT Construction of houses for personal value 92. _ is the simplest form of business organization, which is owned and controlled by one man Sole proprietorship 93. In which economy the government decides that how many resources have to be generated and how the resources should be allocated? Planned economy 94. The relationship between who have agreed to share the profit of a business carried on by all or any one of them for all is called Partnership 95. One man One vote principle is applied in _ Co operative society 96. Environmental forces that are controllable are called Internal forces 97. First directors are usually named in the_ __ Memorandum of association 98. Economist and policy makers are interested in demographics attributes to determine the Demand patterns 99. The most important step in understanding business ethics is Establishing codes of ethics 100. Issuing shares and debentures belong tothe__ of the company? Commencement 101. The registration of a joint stock company is; Compulsory 102. Economist and policy makers are interested in Demographics attributes to determine the_ _ _ Demand patterns 103. The word ‘ limited’ at the end of the company name means; Shareholders has limited liability 104. Which document contains the objectives of the business and the ways to achieve those objectives Business PLAN 105. A document containing information regarding internal and external matters of the business is called Partnership deed 106. Which of the following should be considered when designing a business plan? All options 107. All of the following form of business has high failure rate Except; sole proprietorship 108. _ can expand their business by selling shares in the stock market. Joint stock company 109. Which of the following have not active participation in the management of the partnership firm? Limited partner 110. Establishment off in an coal in situation such as commercial banks in important because; All options 111. The form of business organization that generally has the largest volume is the. Corporation 112. Which of the following is the ethical behaviors(s) in Managerial Practices? All options 113. All of the following are the controllable factors for success in business EXCEPT; State laws 114. Which of the following is EXCLUDED from the advantages of sole proprietorship? Unlimited liability 115. The two major sources of raising funds or financing is business are Debentures and drafts 116. Which of the meeting is held only once in the life of a public company? Staturay meeting 117. Which of the following can be the sentences of an organization?  Precence of non price competitors 118. Occurrence of widespread price increases throughout an economic system Inflation 119. which of the following is NOT a type of business organization Co-operative societies 120. Concessions provided by a country to its producers to protect the economy is called a __ Subsidy 121. Which of the following is NOT the attribute of the demographic environment. Political instability 122. Total income of the country / Total population is the formula to calculate Per capita income 123. Which of the following is a new trend in which two or more organizations combine together and form a new organization? Merger 124. In which part we see about customers, their liking, locality and purchasing power Marketing part 125. When international trade restricts due to safety, which one of the following barriers exist Laws 126. A phenomenon in which a person searches for an opportunity and try to avail it is called Entrepreneurship 127. Franchiser gets a large amount of money from franchisee as___ _ while using its name Fee 128. _ describes the government payments given to certain industries tohelp offset some of their costs of production? Subsides 132. Which of the following is included in a business plan; All options 133. Which of the following factor(S) contribute to success of new business. All options 134. All of the following is the barrier of international trade,Except; Quota 135. Which of the following is not a legal entity? Sole proprietorship 136. Which of the supervises the work of all cooperative societies ? Cooperative department of provincial government 137. Business may be defined as an economic activity undertaken with a motive of earning profit by satisfying human needs in society. The term economic activity includes the activities with the motive of. Earning profits 138. Inwhichformofbusinessonepartygivestherighttootherpartytodothebusiness by using his name and trade mark? Franchising 139. What is mean by global organization? None options 140. It is difficult to transfer the rights of ownershipin? Sole Partnership 141. Which of the following is the partner who does not take part in the management of the business but is known to the public? Silent partner 142. Which of the following is the purpose of cooperative societies? Welfare of the society 143. In which organization, people join as volunteers Co-operative society 144. Which of the following is the characteristic that should exist to recognize a partnership business? There must be a written agreement 145. Which of the following enjoys limited liability? A corporation 146___________ meeting is the first meeting after commencement of business. None options 147. Oneofthemostimportantsingleelementfortheprospectivefranchiseeisto. Investigation a bout fee 148. Compared to learning franchising is a more advantages entry mode because. All options 149. The country becomes a_ __________ when the value of exports exceeds than value of exports in the business of the. Creditor 150. Statutory meeting is held by which of the following companies? All options 151, All of the following is the barrier of international trade, Except Income tax 152______________ describes the government imposed instruction on the quantity ofa good that can be imported over a general of time. Quota 153. In which type of business, Government gives the financial assistance?  Co-operative society 154. Trade or exchange of goods and services between two or more independent countries for their mutual advantages is called Foreign trade 155. can expand their business by selling shares in the stock market Joint stock company 156. Which of the following have a separate legal entry from its owner? All options 157. Which of the following is a main reason to get positive trade balance? Import less than export 158. An agreement between two parties in which one party passes on the right to other party is called Franchising agreement 159. A sole trade business is started by Only one person 160. One of the primary advantages of the sole proprietorship business is Relative freedom from government registration 161. Which of the following is not the objective of the directors meeting? To makelons 162. A person or an organization that works for an exporter or importer is called_ __ Independent agent 163. The liability of a sole trader is Limited only to his investement in the business 164. Competitor analysis is discussed under the following part? All options 165. The limit imposed by one country on importing commodities from another country is know as Quota 166. What is the maximum number of partners in case of banking business? 10 167. First meeting of the members of public limited company is know as Statutory meeting 168. Admission of members and allocation of shares in a Co-operative society is __ for all people living in the same area; Restricted 169. Population size is included in? Demographic factors 170. Investment , revenue, expenses and net profit is discussed in___ of business plan? Financial part 171. _ is a written document which contains the objectives of the business and the ways to achieve these objectives Business plan 172. A ‘ tariff’ can best be described as; A tax imposed on an imported good 173. In which type of business, Expansion is comparatively difficult than other Sole proprietor ship 174. Annual general meeting is the meeting of the company that held Once in a year 175. Which of the following statement is false? One reason for failure of small business is lack of managerial experience 176. Concessions provided by a country to its producers to protect the economy is calleda __ _ Subsidy 177. Which of the following are NOT invited in the general meeting of accompany? Debenture holders 178. Which of the following is included in a business plan; All options 179. What should be the basic theme of a business plan? Ways to go and how to go 180. Which mode of the business is formed when several business concern undertaking units are combined to carry on the business together for achieving the economic benefits? Combination 181. A period of business cycle that is characterized by high labor turnover may be the period of; Expension 182. A person or an organization that works for an exporter or importer is called Independent agent 183. Certificate of commencement is issued by the. Registrar of the companies 184. With the help of Merger and Acquisition a business can attain the following tO reduce the market competition 185. _ is one who does not share the losses of the partnership business Minor partners 186. It is difficult to transfer the rights of ownership in? Sole Partnership 187. Which of the following is included in economic factors?  Exchange rate 188. Total quality of goods and seasons produced by an economic system during agiven period is called. Aggregate output 189. Which of the following business from has the shortest lifespan? Sole proprietorship 190. In which of the following business trends, ownership of business moves more towards acquiring partner. Strategic alliance 191. In which type of business government gives the financial assistance? Co operative society 192. The members of Co-operative society have__ _ Limited 193. The two component of business includes; commerce and trade 194. _ is no liable for the doubt of the partner ship business Sub partner 195. The difference between a country’s merchandise exports and its merchant is imports is the Balance of trade 196. A major advantage of the corporate of organization is; Reduction of double taxation 197. All of the following are the uncontrollable factors for success in business EXCEPT  Competence 198. Which of the following is the characteristic that should exist to recognize partnership business? The partnership must beregistered 199. Compared to licensing, franchising is a more advantageous entry mode because; All options 200. A sole proprietorship business may have All options 201. Effective interest rate is different from normal rate of interest because All option 202. All of the following can be the advantage of the franchise business; Except: Independency of business 203. When international trade restricts due to safety, which one of the following barriers exists Laws 204. Which of the following is a new trend in which two or more organizations combine together and form a new organization? Merger 205. All of the following statements are true regarding partnerships except____. There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits 206. __________ are the government taxes on imports that raise the price of foreign goods and make them less competitive with domestic goods Tariff 207. __________ is a kind of loan which is acquired from the market Debenture 208. A document containing information regarding internal and external matters of the business is called Partnership deed 209. Which of the following should be considered when designing a business plan? All options 210. __________concept focuses on the needs and wants of the people Marketing concept 211. In ____________ a central body will allocated the resources and then decides how these resources will be distributed Planned economy 212. The members of a co-operative society have __________ liability Limited 213. Which of the following is an attribute of the socio-cultural environment? Religion 214. Which of the following issues the initial public offering(IPO)? A public limited company 215. Attitude and traits of the candidates are evaluated by_________. Aptitude test 216. Which one of the following is not the disadvantage of franchise? All options 217. A written statement of what a job holder does, how a job is done, and why a job is done is a___________. Human resource inventory report 218. All of the following form of business has high failure rate Except; Sole proprietorship 219. In which leadership style, there will be downward communication only.  Charismatic leadership style 220. The activity directed towards producing wealth through buying and selling goods is termed as? Business 221. The two component of business includes; Commerce and trade 222. ___________is defined as the difference between the benefits a customer sees from a market offering and the Customer value 223. Which of the following is Excluded from the advantages of sole proprietorship? Unlimited liability 224. All of the followings are the advantages of doing Joint Venture, Except; Not allow to enter in new geographic markets 225. Admission of members and allocation of shares in a Co-operative Society is ______ for all people living in the saving Restricted 226. Which of the following is not a secondary industry Genetic industry 227. Which types of organizations have expertise in selecting people for the job? Recruitment agencies 228. Which of the following condition must be fulfilled to obtain the ‘Certificate of commencement? All options 229. Which of these is/are a disadvantage of operating a franchise? Dependency 230. Which managerial style will be most suitable; if a team of management trainees  work under marketing manager? Autocratic style 231. Which business is not free like other forms of business and can not earn maximum profit? Cooperative societies 232. For a public limited company, minimum number of members are 7 233. private limited company, maximum number of shareholders are 50 234. Entrepreneurship is that ability in which an individual tries to; All options 235. Which leadership style is most suitable when there is less time for decision making? Autocratic style 236. Which of the following statements is true about services? All options 237. A cooperative society is formed by the people _____________ for self-help through mutual help Of limited means 238. All of the following are the advantages of doing Joint Venture EXCEPT; Not allow to enter in new geographic markets 239. _________- is a person who buys goods or products for his/her personal use or consumption Consumer 240. All of the following are the different managerial styles, Except  Reinforcement style 241. Which of the following statements about franchising is true? Franchising is the most visible variation of contractual system 242. In _________ subordinates set their goals by themselves with the consultancy of top management Job redesigning 243. The first stage in evolution of business is Entreprenship 244. In which leadership style managers encourage the subordinates to make decision by themselves Democratic stle 245. While job designing ______________ means assigning additional activities to employees? Job outsourcing 246. People in business and government face important ethical issues and decisions. In many different countries around the world 247. All of the following barriers exist due to economic differences in international trade EXCEPT DIFFERENT Environment 248. Which of the following can be the sentence of an organization? Presence of non price competitors 249. Which of the following is not the part of partnership deed? Rights of the partners 250. Which of the following document is NOT required by the private limited company?  251. Organization like those people who see irregularities in that organization and bring to the knowledge of management False 252. Whistle Blowers are the people who see irregularities and bring them in the knowledge of the management. True 253. Which of the following Is Not a benefit of partnership? Unlimited liability 254. Election of directors and appointment of auditors is the objectives of ________. Annual general meeting 255. A period of business cycle that is characterized by high labor turnover may be the period of; Expansion 256. All of the following statements are true regarding a partnership except _____. Each partner’s liability is limited to the amount he or she contributed to the partnership 257. The policy regarding government revenues and expenditure is known as Fiscal policy 258. Wages are paid for : Short term period 259. Which of the following is false? One reason for failure of small businesses is lack of managerial experience. One reason for failure of small businesses is that most entrepreneurs are younger than 25 years old One reason for failure of small businesses is neglect. One reason for failure of small businesses is weak control systems. 260. All of the following statements are true regarding partnerships except ________. There is no partnership income tax; the individual partners pay a personal income tax on their portion of partnership profits If the partnership agreement does not specify otherwise, profits will be shared equally by the partners A partnership balance sheet is much like that of a proprietorship The death of a partner dissolves the partnership and all assets must be liquidated 261. Marketing should begin with ________. Potential customer needs  The production process Identifying customer needs All of the given options 262. New and revised products may be tested through: Commercialization Product life cycle Family brands Marketing research 263. In which of the following do two or more organizations collaborate on a project for mutual gain? Limited partnership Joint venture Public corporation Strategic alliance 264. When a manager focuses on making whatever products are easy to produce, and then trying to sell them, that manager has a _________orientation. Marketing Production Sales Profit 265. Question # 10 of 15 - Total M - 1 ______ refers to the standards of moral behavior. Legality Loyalty Integrity Ethics 266. The law elating to Joint Stock Companies has been laid in companies Ordinance: 1984 1980 1932 none of the above 268. ___ is the process of locating, identifying, and attracting capable applicants. Downsizing Human resource inventory report Recruitment Strategic human resource plann