IGNOU| BUSINESS ORGANISATION (ECO - 001)| SOLVED PAPER – (DEC - 2022)| (BDP)| ENGLISH MEDIUM
BACHELOR'S DEGREE PROGRAMME
Term-End Examination
December - 2022
ELECTIVE COURSE: COMMERCE
ECO-001
BUSINESS ORGANISATION
Time: 2 hours
Maximum Marks: 50
(Weightage: 70%)
Note: Attempt any five questions. All questions carry
equal marks.
1. What is a Government Company? How is it different from a Non-Government Company? 4+6
Ans:- Section 2(45) of the Companies Act 2013 defines
Government company as any company in which not less than 51% of the paid-up
share capital is held by the Central Government or any State Government or
Governments or partly by the Central Government and partly by The Central
Government does not have it. The central government does not have this. One or
more State Governments and also includes a company which is a subsidiary of
such Government company.
A government
company is a company in which at least 51% of the paid-up share capital is held
by the Central Government, a State Government or partly by both the Central and
State Governments. For example, Steel Authority of India and State Trading
Corporation.
A government
company is defined under Section 2(45) of the Companies Act, 2013.
Government
companies are free from audit, budgetary and accounting controls.
Government
company means a company in which not less than fifty-one percent is owned. Part
of the paid-up share capital is held by the Central Government, or by a State
Government or Governments, or partly by the Central Government and partly by
someone else.
The main
difference between a government company and a non-government company is the
ownership:-
(i)
Government Companies: Central or State Government holds at least 51% of the
share capital. The government appoints the auditor of a government-owned corporation.
(ii)
Non-government companies: The share capital is held by the promoters or the
investing public. Non-governmental organizations (NGOs) are often non-profit
that are independent from government influence. Non-governmental organizations
can be classified based on their orientation, such as charitable, service,
participatory, or empowerment.
Other
differences between government companies and non-government companies include:-
(i) Public
Companies: Public companies are owned by the public who buy shares in the
company.
(ii) Listed
Public Limited Companies: Listed Public Limited Companies are companies
whose ownership is distributed among the general public in the form of shares
traded on one or more stock exchanges.
All the money for
its expenses comes from the government. In government companies, at least 51%
of the share capital is held by the Central Government and one or more State
Governments. In contrast, in non-government companies, the share capital is
owned by the promoters or the investing public.
2. Examine the problems that are involved in Foreign
trade. 10
Ans:- Problems arising in foreign trade include:-
(i) Political
factors: Political instability may discourage foreign trade.
(ii) Exchange
instability: The foreign exchange reserves of the country may decrease due
to balance of payments difficulties.
(iii)
Distance: Distance can be a problem for traders.
(iv)
Diversity of languages: Language barriers can make it difficult to operate
in foreign markets.
(v) Awareness
of foreign market: It may be difficult to predict changes in demand and
supply conditions in foreign countries.
(vi) Risk:
Risk can be a problem for traders.
(vii)
Transportation and Communication: Transportation and communication can be a
problem for traders.
(viii) Lack
of information about loan eligibility: Lack of information about loan
eligibility can be a problem for traders.
(ix)
Restrictions on import and export: Every country has its own laws, customs,
import and export regulations. Exporters and importers have to fulfill all the
rules and regulations.
(x)
Difficulties in Settlement: Foreign trade involves exchange of currencies
because the currency of one country is not legal tender in another country.
Other
problems arising in foreign trade include:-
(i) Lack of
vital resources
(ii) Impact on
domestic industry
(iii) Unbalanced
economic development
(iv) Threat of
dumping
(v) Dependence
on foreign countries
(vi) Opposition
to national defense
(vii) Economic
planning and unpredictability
(viii) Legal
inconsistency
3. What are the services that are provided by retailers
in a business? Discuss with example. 10
Ans:- A retailer is a business that buys goods from
wholesalers, manufacturers, or other retailers and then sells them to consumers
for a profit. Retailing is an important part of the supply chain as it connects
a manufacturer to a consumer.
Retailers
usually sell goods and services in stores but some items may be sold online or
over the phone and then shipped to the customer. Examples of retail businesses
include: clothing, drug, grocery, convenience stores.
Services
provided by retailers:-
Retailers
provide important services to both wholesalers and consumers.
These can be
explained as follows:-
(i)
Services to wholesalers:-
(a) They provide
invaluable information about tastes, preferences, fashions and demands of
customers to wholesalers who in turn pass it on to producers which is very
useful for them.
(b) Retailers
take over the work of retailing from wholesalers and manufacturers and relieve
them from selling goods in small quantities to consumers.
(c) Many
retailers usually give advance orders to wholesalers which is very helpful to
the wholesalers in planning their purchases.
(d) Sometimes
retailers make advance payment for goods received from wholesalers. Thus, they
help in financing wholesale trade.
(e) A new
product cannot be introduced in the market without the services of retailers
supplied by wholesalers.
(ii)
Services to consumers:-
(a) Retailers
collect a variety of products from wholesalers and place them at the doorsteps
of consumers and provide them with the convenience of choice.
(b) They provide
credit facilities to the consumers to help them in times of difficulty.
(c) They provide
personal service to consumers and try to give them maximum satisfaction.
(d) They
introduce new products to consumers and also provide guidance regarding their
use.
(e) They provide
free home delivery and after sales service to the consumers.
(f) They allow
cash discounts to consumers on products sold.
(g) They buy and
stock the most suitable products for the consumers.
(h) They provide
valuable advice regarding the use and maintenance of the products distributed
by them.
(i) They cater
to the needs of every type of consumer keeping in mind their paying capacity.
(j) They supply
fresh products to consumers.
(k) They usually
take back the items that consumers do not like and replace them.
Retailers
perform many functions, including:-
Merchandising,
warehousing, selling, risk taking, grading, packing, lending, advertising,
salesmanship, helping customers, selling services, forecasting demand.
Retailers act
as intermediaries between the wholesaler/manufacturer and the consumer/user.
They can help customers:-
(i) To tell
them about new products
(ii) Giving
them monthly loans
(iii)Taking
customer feedback
Retailers can
also:-
(i) Sell goods
from catalog without personal contact with consumers
(ii) Store the
goods in a scientific and systematic manner
(iii) Focus on
improving relationships with regular customers
(iv)
Communicate with customers and keep them engaged
4. Describe the role of commercial banks in the economic
development of a country. 10
[COMING SOON]
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