IGNOU| BUSINESS ORGANISATION (ECO - 01)| SOLVED PAPER – (DEC - 2023)| (BDP)| ENGLISH MEDIUM
BACHELOR'S DEGREE PROGRAMME
Term-End Examination
December - 2023
ELECTIVE COURSE: COMMERCE
ECO-01
BUSINESS ORGANISATION
Time: 2 hours
Maximum Marks: 50
(Weightage: 70%)
Note: Attempt any five questions. All questions carry equal marks.
हिंदी माध्यम: यहां क्लिक करें
1. What is Business? Explain features and objectives of
Business. 2+8
Ans:- Business is an economic activity that involves
the exchange, buying, selling or production of goods and services for the
purpose of earning profits and satisfying the needs of customers.
It includes
various essential characteristics and objectives that define its nature and
purpose within the economy.
Features of
Business:-
(i)
Exchange of goods and services: All business activities revolve around the
exchange of goods or services for money or equivalent value
(ii)
Innumerable transactions: Businesses regularly engage in numerous
transactions, not limited to one or two transactions
(iii)
Profit motive: The primary objective of business is to earn profit, which
serves as a reward for the services provided.
(iv)
Business Skills: Successful business operations require specific skills and
qualities for economic success.
(v) Risks
and uncertainties: Businesses face risks and uncertainties, some insurable
risks and others that must be borne by the business
(vi) Buyer
and Seller: Every business transaction involves at least two parties – a
buyer and a seller, who form the basis of business interaction.
(vii)
Linked to production: Business activities are often linked to the
production of goods or services, forming an industrial activity.
Business
Objectives:-
(i) Profit
generation: The main objective of business is to generate profit
(ii)
Customer Satisfaction: Ensuring customer satisfaction is important for
business success
(iii)
Market expansion: Businesses aim to expand their market presence and reach
new customer segments
(iv) Cost
Minimization: Reducing costs while maintaining quality is a common goal in
business operations.
(v)
Continuous Innovation: Businesses need to continuously innovate to remain
competitive
(vi)
Employee Engagement: Engaged employees contribute to a positive workplace
culture and increase productivity
(vii)
Social and environmental contribution: Many businesses aim to make a
positive contribution to society and the environment.
(viii)
Sustainable growth: Sustainable growth is a fundamental objective for
businesses, planning for long-term revenue growth and expansion.
In short,
business is a multifaceted economic activity driven by profit motives, customer
satisfaction, innovation and social contribution, with a focus on sustained
growth and development in a competitive market environment.
2. What is Industry? Explain its classification with
illustrations. 2+8
Ans:- Industry refers to a group of manufacturers or
businesses that produce specific goods or services. It covers various sectors
of economic activity including manufacturing, commerce and trade. The word
"industry" can also mean diligence and hard work. It originates from
the Latin word "industria", which means hard work. Industries can be
classified into different levels based on their functions and contribution to
the economy, such as primary, secondary, tertiary, quaternary and tertiary.
Industry is a group
of productive enterprises or organizations that produce or supply goods,
services or sources of income. In economics, industries are generally
classified into four main categories: primary, secondary, tertiary, and
quaternary. These categories are based on the nature of economic activities
involved and the level of processing of raw materials or transformation into
final products.
(i) Primary
Industries:-
Primary
industries are concerned with the extraction and processing of natural
resources. These industries use natural resources directly as raw materials and
convert them into consumable form. Examples of primary industries include:-
(a)
Agriculture: Cultivation, breeding of plants and animals
(b) Mining: Extraction
of minerals and metals
(c) Fishing:
Catching and processing fish and sea food
(d) Logging:
Cutting and processing of wood and timber.
Primary
industries can be divided into two subcategories:- extractive industries
and genetic industries. Extractive industries extract or extract products from
natural sources such as mining and fishing. Genetic industries are concerned
with the breeding of plants and animals so that they can be used in further
breeding, such as in the seed and nursery industries.
(ii)
Secondary Industry:-
Secondary
industries, also known as manufacturing industries, obtain raw materials from
primary industries and convert them into final goods after further processing
and value-addition. The goal of these industries is to make raw materials more
easily consumable by the end consumer. Examples of secondary industries
include:-
(a)
Manufacturing industry: Processing raw materials or semi-finished goods
into finished products
(b)
Construction Industry: Construction of buildings, dams, bridges, roads,
tunnels and canals
On the basis of
the production method used, secondary industries can be classified into four
main categories:-
(a) Analytical
industries: Analyzing and separating different elements from the same
material, such as oil refineries
(b) Synthetic
industries: Mix different raw materials to create a completely new product,
such as cosmetic cream industry.
(c) Processing
industries: Involves sequential steps to manufacture finished products like
sugar and paper industries
(d) Assembly
industries: Combine various small components to form a new final product,
such as electronics goods industry.
(iii)
Tertiary Industry:-
Tertiary
industries are considered to be the lifeline of the economy and act as
infrastructure providers for the operations of primary and secondary industries.
These industries provide service facilities and are not engaged in hardcore
production activities but are basically service providers. Examples of
tertiary industries include:-
(a) Banking and
credit facilities
(b)
communication and transportation
(c) storage and
packaging
(d) advertising
and marketing
Tertiary
industries are important for the smooth functioning of an economy, as they
support the activities of primary and secondary industries by providing essential
services.
(iv)
Quaternary Industry:-
Quaternary
industries are not usually recognized as a distinct category, but can be
considered a subgroup of tertiary industries. Quaternary industries are
concerned with the provision of information and knowledge-related services such
as research and development, education and health care.
In short,
industries are classified based on the level of processing of raw materials or
transformation into final products. Primary industries extract and process
natural resources, secondary industries convert raw materials into finished
products, and tertiary industries provide services needed to support the
economy.
3. Differentiate between Partnership and Joint Stock
Company. 10
4. Briefly explain the meaning of the following: 3+3+4
[COMING SOON]
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