Business Studies (215)

Tutor Marked Assignment (2021-22)

20% Marks Of Theory

 

1. Answer any one of the following questions in about 40-60 words.

(b) What do you understand by economic activities. Give two examples of economic Activities.

Ans: Economic Activity: An economic activity is an activity of providing, making, buying, or selling of commodities or services by people to satisfy their day-to-day needs of life. Economic activities include any activity that deals with the manufacturing, distributing, or utilising of products or services. 

Activities that involve money, or the exchange of products or services, are economic activities. The three types of economic activities are as follows:

• Business:- This economic activity provides goods and services to satisfy human Needs on a daily basis with the aim of earning profits.
• Profession:- It can also be defined as an occupation or a professional job that offers Specialised services in return for professional charges.
• Employment:- This activity is based on a contract between the company and the Employee. Here, the employee performs duties for the company, and is paid (with Wages or a salary) in return.

Examples of economic activities:-

• Primary sector:- works related to self employment eg:- agriculture, forestry, fishing And mining.
• Secondary sector:- activities related to manufacturing of small things eg manufacturing, food processing, oil refining etc.

2. Answer any one out of the following questions in about 40 to 60 words.

(a) Explain the concept of Producers Co-operative Societies with the help of an example.

Ans- Producer’s Cooperative Society

In Producers’ Cooperative Society, producer-owned and democratically-controlled organizations serve their members (who may or may not be themselves cooperatives) through cooperative marketing, support and/or purchasing. The members of this organization collect capital, render a great attempt to operate the organization with a view to earning a profit and distributing as well as. For example, members of an agricultural cooperative, such as a dairy cooperative, will combine their efforts in order to purchase equipment and supplies at a discount, procedure their milk products in a combined fashion, and then market and distribute those products as a group.

Producers’ cooperative society is the society of the producers. Some specific objectives are Enclosed with this organization. These are as follows:

1. To get great Production facilities to produce collectively to accumulate a small Amount of capital.

2. To attain large purchase facilities to purchase raw material.

3. To produce the daily necessary products of the organization.

4. To reduce the influence of risk, moneylenders, and middlemen.

5. To ensure the usage of modern technology.

6. To entertain a huge facility for the labors.

7. To attain the opportunity of joint transportation and warehouse.

8. To ensure the financial prosperity of the members.

9. To distribute profits properly among the members.

10. To supply products to the mass people at the minimum prices.

These objectives have ensured the betterment of the general members and society. That’s Why the majority of the producers gather under this organization and contribute to the Prosperity and development of the country. 

3. Answer any one out of the following questions in about 40 to 60 words.

(a) Business involves risk and uncertainty of income. Explain.

Ans- Business risk are as follows:

1. Natural causes: Natural causes of business risk include natural calamities like earthquake, tsunami, tornado, famine, floods and drought, etc. Humans and businesses do not have a control over the natural causes and there certainly isn’t any kind of preparation that can be undertaken for such a business risk.

2. Human Causes: The human causes of business risk are due to the loss of business that Arises from changes in customer preferences, employee mindset, agitation by workers, negligence by employees, strikes and lockouts.

3. Economic Causes: Economic causes of business risk arise from changes in the different economic factors such as increasing competition, changing market conditions, increase in price of raw materials, production cost and wages.

Uncertainty of income:

Uncertainty experienced by many Americans today. In original consumer research conducted by Commonwealth, 62% of respondents experienced at least one financial emergency in the last twelve months and 89% said that they worried about their households ability to cope with a financial shock.

While financial uncertainty is widespread across income levels, the U.S.. Financial Diaries Project found that it is greatest among low income households. Further, they found that income and expense changes do not move in tandem, and the typical household does not have a financial buffer large enough to weather the volatility it experiences.

4. Answer any one out of the following questions in about 100 to 150 words.

(b) Distinguish between a Bonded and a Co-operative warehouse.

Ans- Bonded warehouse:- 

A bonded warehouse, or bond, is a building or other secured area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty. It may be managed by the state on by private enterprise. In the latter case a custom bond must be posted with the government.

Upon entry of goods into the warehouse, the importer and warehouse proprietor incur liability under a bond. This liability is generally cancelled when the goods are:

• Exported; or deemed exported;
• withdrawn for supplies to a vessel or aircraft in international traffic:
• destroyed under Customs supervision; or
• withdrawn for consumption domestically after payment of duty.

While the goods are in the bonded warehouse, they may, under supervision by the customs authority, be manipulated by cleaning, sorting, repacking, or otherwise changing their condition by processes that do not amount to manufacturing. After manipulation, and within the warehousing period, the goods may be exported without the payment of duty, or they may be withdrawn for consumption upon payment of duty at the rate applicable to the goods in their manipulated condition at the time of withdrawal.

Cooperative warehouse:

A cooperative warehouse is a warehouse which is owned and run by cooperative. Both co op member and those outside the co-op can store goods at these facilities, though co-op members benefit from reduced rates.

These warehouses are owned, managed and controlled by co-operative societies. They provide warehousing facilities at the most economical rates to the members of their society.

5. Answer any one out of the following questions in about 100 to 150 words.

(a) Explain the classification of different types of e-commerce?

E-commerce is an exhaustive trading system that makes use of a computer network for carrying out buying and selling of goods, information and/or services.

A website or web portal acts as a platform and facilitates the exchange of merchandise, funds, data, etc… It also assist in accomplishing company’s transaction with different parties. Like customers, infomediaries, market makers and suppliers, electronically.

Classification of E-commerce

The traditional e-commerce business models, which are based on the constituents involved in the transaction, are classified as under:

1. Business to Business (828): When the business transaction takes place between two Business houses online, it is known as B2B e-commerce. Such transactions are accomplished with the help of Electronic Data Interchange (EDI). E.g. Alibaba.com

2. Business to Consumer (B2C): 82C is the most important business model, that has enterprises on one end and consumers on the other. The best example of it would be online shopping, facilitated by flipkart.com, amazon.com, snapdeal.com and so on.

3. Consumer to Business: The business model, in which the value creation is performed

By the consumer and the business, being the other party to transaction consumes it. In this e-commerce model, the reverse pricing model is used, wherein the customer Ascertains the price of the merchandise.

4. Customer to Customer: Last but not the least, in C2C model, the commercial transactions, takes place between two consumers electronically. Basically, uses auction-style model. One of the examples of such model is Olx.com.

E-commerce firms should provide a convenient, pleasurable experience, to their customers, by providing better and faster services. Further, the most important thing remains the security and privacy of online transactions, which should be maintained.

6. Prepare a project on any one of the following.

(a) Your friend is facing a difficulty in establishing an effective communication with his friend Explain him what could be the barriers of effective communication. Also guide him to solve such barriers.

Ans- Dear my friend Rajan,

A communication barrier can occur at any stage and make the process of relaying key information less effective, which can jeopardize your success.

Let’s understand the different barriers to effective communication.

• Language barriers:

Language is needed for any kind of communication. And communication becomes tough if people don’t understand each other’s language. This is known as a language barrier to communication.Language is needed for any kind of communication. And communication becomes tough if people don’t understand each other’s language. This is known as a language barrier to communication.

But a difference in language isn’t the only kind of communication barrier. The use of Jargon and technical language also creates barriers to communication.

You may have heard lawyers discussing a case or doctors talking among themselves about a patient, but not necessarily understood the conversation. Not everyone can understand legal and medical jargon. However, lawyers and doctors regularly interact with their clients who are not from the same profession and are able to convey their points to them by explaining the case, legal or medical, in simple language.

Excessive use of jargon, ambiguous words, or technical terminology is another kind of language barrier. You can overcome these by keeping communication clear and appropriate for the target audience. If you practice doing this, you will be able to make an impact at your workplace.

• Psychological barriers:

Sometimes people have a habit of starting an argument when someone counters their opinion. As a result, people tend to avoid them and this affects their personal as well as professional relationships.

Psychological barriers such as anger, fear, jealousy, insecurity, shyness, and close Mindedness can always damage communication, and in turn, relationships.

• Cultural barriers:

The global market has opened up lots of opportunities for business. However, due to cultural barriers, people or companies often miss out on these opportunities.

Language differences can lead to misinterpretations, the activity of labeling people can Create stereotypes, and behavioral patterns can form mental blocks. Also, different Cultures in different places can turn into strong communication barriers.

So, how would you handle such cultural barriers? Conscious nurturing of cross-cultural sensitivity is the answer.

• Physical barriers:

We all know how celebrated physicist Stephen Hawking, who wrote the genre-defining book A Brief History of Time, overcame his challenging physical disabilities and excelled in his career.

“Obviously, because of my disability, I need assistance. But I have always tried to overcome the limitations of my condition and lead as full a life as possible. I have traveled the world, from the Antarctic to zero gravity,” he was quoted as saying.

His words are inspiring. Physical barriers such as hearing impairment, defects in vision, speech problems, or learning disabilities such as dyslexia affect communication, but they Can be overcome with proper training and practice.

• Attitudinal barriers:

Discrimination on the basis of gender, race, or religion also hampers communication. Prejudice, suspicion, and emotional aggressiveness often affect communication. They arise because of the refusal to change or a lack of motivation. Effective listening. Feedback, problem-solving, and being open to change can help you eliminate attitudinal barriers in communication.