Category: Class 11

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 7 Social Stratification Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 7 Social Stratification

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Social stratification is ……………….
(local / national / universal)
Answer:
universal

Question 2.
Class is a ………………. form of stratification.
(open / closed / rigid)
Answer:
open

Question 3.
Gender based stratification has led to ………………. in society.
(justice / exploitation / equality)
Answer:
exploitation

Question 4.
Social stratification of ………………. is based on the principle of purity and pollution.
(class / gender / caste)
Answer:
caste

1. (B) Correct the incorrect pair.

Question 1.
(a) Ownership of wealth – Economic Capital
(b) Membership and involvement in social network – Social Capital
(c) Gained through education – Cultural Capital
(d) Prestige, status and social honour – Economic Capital
Answer:
(d) Prestige, status, social honour – Symbolic Capital

1. (C) Correct underlined words and complete the sentence.

Question 1.
Caste is based on wealth.
Answer:
Class is based on wealth.

Question 2.
A hierarchical system where women are given a lower social status is stratification based on class.
Answer:
A hierarchical system where women are given a lower social status is stratification based on gender.

2. Write short notes.

Question 1.
Principles of social stratification.
Answer:

1. Stratification is social: Social stratification is not determined by biological differences but it is governed by social norms and sanctions.
2. Social stratification persists over generations : In all society’s parents confer their social status on their children. Thus, the pattern of inequality stays same from generation to generation.
3. Social stratification is universal but variable : Social stratification is found everywhere. At the same time the nature of inequality varies. ‘What’ is unequal and ‘how’ unequal, changes within the context of a society.
4. Social stratification involves inequality : Any stratified system not only gives people more resources but also justifies this arrangement and defines them as fair.
5. Social stratification is consequential : Stratification affects every aspect of life of all individuals. Social life is affected because of the position of an individual in the social hierarchy. Some experience positive consequences, while others face negative consequence of the hierarchy in a particular society.

Question 2.
Characteristics of caste according to Dr. G.S. Ghurye.
Answer:
Dr. G.S. Ghurye a well known Sociologist and Indologist defines caste in terms of its essential characteristics. They are as follows:
1.Segmental division by society : Society is divided into various castes. The membership of castes are determined by birth. Therefore, mobility from one caste to another is impossible.

2. Hierarchy: Castes or segments are arranged in terms of hierarchy. According to Dr. Ghurye, castes are graded and arranged into a hierarchy on the basis of the concept of ‘purity and pollution’.

3. Restriction on feeding and social intercourse : This fact of separation is reinforced by the notion of ‘purity and pollution’. Each caste imposes restrictions on its members with regard to food and social intercourse.

4. Differential civil and religious privileges and disabilities : In a caste society there is an unequal distribution of privileges and disabilities among its members. The higher castes enjoy all privileges and lower caste suffer from all kinds of disabilities.

5. Lack of unrestricted choice of occupation : Choice of occupation is not free under caste system. Occupations are hereditary and the members of the caste are expected to follow their traditional occupation.

6. Endogamy : Endogamy is the essence of caste system. Every caste of sub-caste insists that its member should marry within the group.

Question 3.
Types of mobility.
Answer:
1. Horizontal Mobility : It refers to change of residence or job without status change. Under this type of social mobility, a person changes one’s occupation but the overall social standing remains the same. Certain occupation like doctor, engineer and teacher may enjoy the same status but when an engineer changes one’s occupation from engineer to teaching engineering there is a horizontal shift from one occupational category to another but no change has taken place in the system of social stratification.

2. Vertical Mobility : Vertical mobility refers to any change in the occupational, economic, political status of an individual or a group which leads to change of their position. Vertical Mobility stands for change of social position, either upward or downward.

3. Intergenerational Mobility : This type of mobility means that one generation changes its social status in contrast to the previous generation. However, this mobility may be upward or downward. For e.g., people of lower caste or class may provide facilities to their children to get higher education, training and skills, with the help of which the younger generation may get employment in higher position.

4. Intragenerational Mobility : This type of mobility takes place in the lifespan of one generation. A person may start one’s career as a clerk and after acquiring more education, becomes an IFS Officer. Here the individual moves up and occupies a higher social position than previously.

3. Differentiate between.

Question 1.
Caste and Class.
Answer:

Caste	Class
(i) Different castes form a hierarchy of social preference and each position in the caste structure is defined in terms of its ‘purity and pollution’.	(i) A social class is made up of similar social status who regard one another as social equals.
(ii) In a caste stratification system, an individual’s position depends on the status attributes ascribed by birth.	(ii) In a class stratification system and individual’s position depends on the possession of substantial amounts of wealth, occupation, education and prestige which is achieved.
(iii) Caste is an example of closed stratification.	(iii) Class system is an example of open stratification.
(iv) In this type of social stratification there is no scope for social mobility.	(iv) In this type of social stratification there is scope for social mobility.

Question 2.
Intragenerational Mobility and Intergenerational Mobility.
Answer:

Intragenerational Mobility	Intergenerational Mobility
(i) This type of mobility takes place in the lifespan of one generation.	(i) This type of mobility means that one generation changes its social status in contrast to the previous generation.
(ii) This mobility is upward.	(ii) The mobility may be upward or downward.
(iii) A person may start one’s own career as a clerk. He / she acquires more education and over a period of time becomes an IFS Officer. Here the individual moves up and occupies a higher social position than previously.	(iii) People of lower caste or class may provide facilities to their children to get higher education, training and skills. With the help of these skills the younger generation may get employment in higher position.
(iv) It refers to advancement in one’s social level during the course of one’s lifetime.	(iv) It refers to a change in the status of family members, one generation to the next.

4. Explain the following concept with suitable examples.

Question 1.
Vertical Mobility
Answer:

1. Vertical mobility refers to any change in the occupational economic or political status of an individual or a group which leads to change of their position.
2. Vertical mobility stands for change of social position either upward or downward, which can be labelled as ascending or descending type of mobility.

Example : A person who works as a customer assistant, works hard and starts his own business successfully. In such a position there is a clear change in the position of the individual.

Question 2.
Intergenerational Mobility
Answer:

1. This type of mobility means that one generation changes its social status in contrast to the previous generation.
2. However, this mobility may be upward or downward.

Example : People of lower caste or class may provide facilities to their children to get higher education, training and skills, with the help of which the younger generation may get employment in higher position.

5. (A) Complete the concept maps.

Question 1.

Answer:

5. (B) State whether the following statements are true or false with reasons.

Question 1.
There is no mobility in the class system.
Answer:
This statement is False.

1. Class system is an example of open stratification in which individuals or groups enjoy the freedom of changing their social strata, i.e., in class system there is scope for social mobility. Individuals or groups move from one strata to another.
2. The class system in modern industrial society (Upper class, middle class and lower class) is an example of open stratification.
3. The criteria of open stratification i.e., class system are power, property, intelligence, skills, etc.

Question 2.
Education had led to women’s empowerment.
Answer:
This statement is True.

1. Education is a milestone of women empowerment because it enables them to respond to challenges, to confront their traditional role and change their life.
2. Education creates occupational achievement, self-awareness, satisfaction etc.
3. Education is one of the main levers of social class which has helped women empower and change their status in society.

6. Answer the following in detail (About 150-200 words).

Question 1.
Discuss class and gender as forms of social stratification with suitable examples of your own.
Answer:
Class as a form of social stratification:
A social class is made up of people of similar social status who regard one another as social equals.
Each class has a set of values, attitudes, beliefs and behaviour norms which differ from those of the other classes. A social class is essentially a status group which is achieved. Class is almost a universal phenomenon. Each social class has its own status in the society. Status is associated with prestige. A social class is relatively a stable group. Social class represent an open social system. An open class system in one in which vertical social mobility is possible.

Example : Within this system, individuals can move from one class to another through hard work, education and skills. Ownership of wealth and occupation are the chief criteria of class differences but education, hereditary, prestige, group participation, self identification and recognition by others, also play an important role in class distinction.

Gender as a form of social stratification:
Gender stratification refers to social ranking, where men typically inhabit higher statuses than women. A common general definition of gender stratification refers to the unequal distribution of wealth, power and privilege between the two sexes. Throughout the world, most societies allocate fewer resources to women than men. Almost all societies are characterized by sexism. Sexism is the belief that one sex is superior than the other. Although, societies have been believing in the superiority of men over women and therefore have been dominating women. This male dominance is supported further by patriarchy. The process of socialization is gendered and creates gender hierarchy. Example : Boys are given toy cars or lego sets or bat and ball to play whereas girls are given household sets, medical sets, dolls, etc.

11th Sociology Digest Chapter 7 Social Stratification Intext Questions and Answers

ACTIVITY (Textbook Page No. 75)

Question 1.
Watch the Marathi movie, ‘Fandry’ and write a film review describing the social, cultural and economic obstacles created by caste barriers.
Answer:
Review of the Marathi Movie ‘Fandry’. The film powerfully busts the myth of individual merit in a caste-decided society. In a small village in Maharashtra Jabya portrays friend Pirya are the only two boys from a so-called untouchable caste. Jabya doesn’t want to consider his caste an obstacle to his aspirations. These hopes of wanting to move out of the confines of his caste are shown through Jabya’s love for his classmate Shalu, an upper caste by birth. Jabya and Pirya, meanwhile want to hunt down the exclusive black sparrow which Jabya believes would help him to win Shalu’s love. His father Kachru wants him to continue their tradition. From being called blacky to being made to feel ashamed of his mother’s occupation. When she comes to school Jabya’s trials indicate the prejudices that make the promise of equality sound like unreal.

In theory, Jabya’s school is supposed to uplift him to a modern and caste-less society where he should be able to choose the work he wants to do. Yet we see how modern education itself is not free from caste. In caste system social set up everything is pre-decided by one’s caste, whom one can love and be friends with, the occupation he has to choose etc. Fandry makes visible the way in which caste is so central to all our relatives.

Question 2.
In today’s world the characteristics of caste are changing. Find out which of the characteristics are changing and which are remaining constant. Conduct a group discussion on the same. (Textbook Page No. 75)
Answer:
In the modern age, many changes happen in the features and functions of caste system. A group discussion can be conducted on the following changes within the caste system.

1. Decline in the superiority of upper caste.
2. Changes in the restrictions regarding social habits.
3. Changes in the restrictions regarding marriage.
4. Changes in the restrictions regarding occupation.
5. Changes in the disabilities of lower castes.
6. Loss of faith in the ascribed status.
7. Changes in lifestyle.
8. Changes in inter-caste relations.
9. Changes in the lower of caste Panchayats.
10. Restrictions on education removed
11. Changes in the philosophical basis.

Question 3.
Divide the class into groups. Each group can select one of the issue mentioned and collect information on it. The group should present their findings to the class. (Textbook Page No. 78)
Answer:
Present findings on any one of the issues to the class.
1. The Economy : Explains how women are being paid low for some amount of work done by men in various unorganized sectors. Also, dual role played by women and unpaid work.

2. The Polity : Explains about women exercising the power of right to vote, in spite of reservation for women, the number of women in official positions of power are less as world leaders, less number of women at war and peace movements.

3. Crime : Explains the crime committed by women, increase in number of women coming in conflict with the law; women prisons in India are relatively less crowded, women commit fewer and different crimes compared to men.

4. Religion : Most religions elevate the status of men over women and have striker sanctions against women and require them to be submissive.

5. Family : In spite of women sharing the economic role, the role of men in raising children is still minimum or negligible. Traditional sexual division of labour where women looked after the house and men played the role of economic provider is still prevalent in the society. Women are expected to balance between home and work.

6. Health : Women neglect their health and nutrition. The frequency of women to visit a doctor is very less as most of the time they manage with home remedies.

Question 4.
Find out examples of intergenerational and intragenerational mobility from your surroundings and present it in your classroom.
Answer:
1. Intergenerational mobility means one generation changes its social status in contrast to the previous generation.
Example : Eminent personality like Dr. B. R. Ambedkar.

2. Intragenerational mobility this type of mobility takes place in the life span of one generation. Example : A person may start one’s career as a clerk and after acquiring more education over a period of time he becomes an IAS officer. Students should find out similar examples of intergenerational and intragenerational mobility from their surroundings.

Question 5.
Arrange the group reading of any two of the following books and conduct a group discussion on the caste and gender discrimination/inequality Baburao Bagul-Jevha Mi Jaat chorli Hoti, Daya Pawar- Baluta, Urmila Pawar- Aaydaan, Omprakash Valmiki- Jhootan, Kishor Shantabai Kale- Against all Odds. (Textbook Page No. 81)
Answer:
Baburao Bagul – ‘Jevha Mi Jaat Chorli Hoti’: This most poignant story recites about an educated Dalit trying to escape his caste profession of scavenging, is an ethnography of caste oppression, description of gender roles shaped by caste, the way Dalit women are oppressed, critique of the political economy of a caste society.

Daya Pawar – ‘Baluta’ : It generalizes the status of rural untouchables. Baluta is a collection of memories of life trapped within the framework of India’s caste system. The frustration and helplessness of being born as a Dalit and the inner conflict in the writer’s mind. He thinks of education as a means to escape from his downtrodden life but ends up being the agent of his lifelong distress.

Urmila Pawar – ‘Aaydaan’: The lives of different members of the family are woven together in a narrative that gradually reveals different aspects of the everyday life of Dalits the manifold ways in which caste assets itself and grinds them down.

Omprakash Valmiki – ‘Jhootan’ : An autobiography by Omprakash Valmiki in which he has explored the issues of Dalits. Being socially segregated for centuries the Dalits are obliged to live a helpless life.

Kishor Shantabai Kale – ‘Against all Odds: The book raises many questions about the exploitation life of women in Kolhati community.

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 6 Socialization Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 6 Socialization

1. (A) Choose the correct alternative and complete the statements.

Question 1.
The process whereby an individual learns to conform to the norms of society is called …………………..
(assimilation / socialization / co-operation)
Answer:
socialization

Question 2.
Family is a ………………….. agency of socialization.
(primary / secondary / tertiary)
Answer:
primary

Question 3.
School is an ………………….. agency of socialization.
(primary / secondary / tertiary)
Answer:
secondary

Question 4.
Television is a / an ………………….. medium of communication.
(audio / visual / audio visual)
Answer:
audio-visual

1. (B) Correct the incorrect pair.

Question 1.
(a) Language, behaviour – Family
(b) Social values like friendship – Peer Group
(c) Teamwork, discipline – Neighbourhood
(d) To build opinion – Mass media
Answer:
(c) Team work, discipline – Workplace

1. (C) Identify the appropriate term from the given options.

(Internet, Peer Group, Childhood, Socialization)
Question 1.
Takes place in the early years of life.
Answer:
Socialization

Question 2.
Global impact in today’s world.
Answer:
Internet

1. (D) Correct the underlined words and complete the sentence.

Question 1.
Radio is an audiovisual medium.
Answer:
Radio is an audio medium.

Question 2.
Peer group is an example of an authoritarian agency.
Answer:
Family is an example of an authoritarian agency.

2. Write short notes.

Question 1.
Formation of ‘self ’ according to Mead.
Answer:
George Mead has elaborated on the process of building social self which does not exist at birth. According to Mead, formation of self occurs in three distinct stages.
Stage 1 – Imitation : In this stage, children imitate behaviour of adults without understanding it. Example : A little boy might drive his mother to her office by driving his toy car or help his parents clean the floor by pushing a broom.

Stage 2 – Play stage : A child plays, sometimes as being a mother or a teacher, at times a postal worker, a police officer etc. In this stage, responses are not organized. A child internalises the attitudes of others who are significant to her/his through enacting the roles of others. A significant other is someone whose opinions matter to us and who is in a position to influence our thinking.

Stage 3 – Game stage : As a child matures, and as the self gradually develops, one internalises the expectations of a large number of people. Children learn to behave according to the impressions of others. They understand that role play in each situation involves following a consistent set of rules and expectations. For example, a child at this stage is likely to be aware of the different responsibilities of people in a restaurant who together, make for a smooth dining experience. Thus, the self is mainly formed through our interactions with others and our understanding of others responses. Socialization, in this sense is a process of self-awareness.

Question 2.
Agencies of socialization.
Answer:
There are different social groups which can be seen as agencies of socialization.
1. Family : Family is the main agent of socialization. The child learns language and other basic behavioural patterns in family. Socialization through family is varied because there is no single, uniform pattern to do so. A child brought up in nuclear family will undergo different pattern of socialization. Patterns of child rearing vary across families with different caste, class, and ethnic backgrounds.

2. Peer groups : Peer groups are friendship groups made up of people of similar age. In peer groups, the interactions are reasonably egalitarian as there is a greater amount of give and take, when compared to family or school. Peer groups use informal sanctions including positive sanctions like approving gestures or laughing at your jokes, and negative sanctions like disapproving jokes, labelling or rejecting your company.

3. Schools : Schooling and education are considered as secondary agencies. School involves learning values and norms at a step higher than those learnt in a family. Skills and values like team work, discipline, conformity to authority are learnt in schools and this helps prepare students for the adult world.

4. Mass Media : One of the significant forces of socialization in modern culture is mass media. Mass media are the means for delivering impersonal communication directed to a vast audience. Mass media includes traditional print media like newspapers and magazines, electronic media like radio and television and current IT enabled media and social media. Television has an influence on children from a very young age and affects their cognitive and social development. Modern technological advancements have strengthened and changed the role of mass media. Technology has certainly increased the spread of mass media.

5. Neighbourhood : A neighbourhood community is an important agency of socialization. A neighbourhood is a geographically localized community within a larger city, town or suburb. Neighbourhoods are formed through considerable face to face interaction among members often living near one another. A neighbourhood community provides the base for an individual to extend social relations and interactions beyond the narrow limits of the home.

6. Workplace : Socialization is a life long process. Adult socialization indicates this continuous process of learning. One of the significant agents of adult socialization is the workplace.

Adult individuals spend significant amount of time at the workplace. Socialization through work place involves acquiring new skills, knowledge and behaviour patterns suitable to the requirements of the job.

Question 3.
Resocialization.
Answer:
The process of unlearning old norms, roles, values and behavioural patterns and learning new patterns is called re-socialization. Sometimes an individual is caught in a situation where one has to break away from past experience and internalise different norms and values. Re-socialization can also be defined as a process which subjects an individual to new values, attitudes and skills according to the norms of a particular institution and the person has to completely re-engineer one’s sense of social values and norms.

The person may be in a jail, hospital, in religious organization, police, army etc. In such institutions there is total break up from the normal social life outside. A prison sentence is a good example. The individual not only has to change and rehabilitate one’s behaviour in order to return to society but must also accommodate the new norms required for living, while in prison.

3. Explain the following concept with an example.

Question 1.
Primary socialization
Answer:

1. The most critical process of socialization happens in the early years.
2. This learning in the early years is termed as primary socialization.
3. Primary socialization takes place in infancy and childhood and involves intense cultural learning.
4. A child gets acquainted with values, customs, behavioural norms and manners. It is an informal process.

Example : Family is the main agent of primary socialization. Peer group and neighbourhood is also seen as a primary socializing agency.

Question 2.
Secondary socialization
Answer:

1. Socialization as a process is lifelong.
2. The learning which extends over the entire life of a person is known as secondary socialization. It is a formal process of socialization.

Example : Schooling and education are considered as secondary agencies of socialization. What we learn through a formal curriculum with specific subjects and skills. Schooling involves learning values and norms at a step higher than those learnt in family.

4. (A) Complete the concept maps.

Question 1.

Answer:

4. (B) State whether the following statements are true or false with reasons.

Question 1.
Socialization is a life-long process.
Answer:
This statement is True.
(i) The process of learning attitudes, norms and behaviour patterns and becoming members of different social groups like family, kin network, peer group and later, formal groups like school, professional networks etc., is a life long process.

(ii) Socialization is an ongoing process of continuous learning The birth of a child is a new experience of parenting for a couple. Similarly, older people become grandparents thus creating another set of relationships connecting different generations with each other.

(iii) Thus, socialization as a learning process is life long even though the most critical process happens in the early years but secondary socialization extends over the entire life of a person.

Question 2.
Advertisements influence consumer behaviour.
Answer:
This statement is True.

1. Mass media has become an integral part of our day to day life. Advertisements through mass media are the means for delivering impersonal communication directed to a vast audience.
2. Advertisements transmit information and messages which influence the behaviour of the consumer to a great extent.
3. The use of colours, words, music, images, videos influence our behaviour and persuades us to take action. Advertisements through mass media has wider approach.

5. Give your personal response.

Question 1.
‘Breaking News’ tends to create panic or emotional responses. Why do you think this happens? Give relevant examples to illustrate.
Answer:
Many newspapers as well as some private news channels very frequently transmit news of murders, accidents, stealing, dacoity, beating, rape, economic cheating, fraud, scams, etc., as breaking news. Constant hearing of such news affects the minds of the people and it weakens the faith in ideals and values of life. This happens because breaking news get much more viewers than normal news.

Question 2.
The use of ‘unacceptable language’ is often picked up by children even if this kind of language is not used within the home. Explain how this might happen.
Answer:
Even though the new born is initiated with this learning process in family it is not the only agency of socialization. School, peer groups, neighbourhood, mass media are different social groups and social contexts which can be seen as agencies of socialization. Children pick up unacceptable language from variety of other sources like television which has strong influence on viewers. The child might hear one of his friends or someone in neighbourhood using slang words or abusing language.

6. Answer the following question in detail (About 150-200 words).

Question 1.
You belong to a generation that has been exposed to internet. Discuss how internet has brought about positive and negative results.
Answer:
Modern technological advancements have strengthened and changed the role of mass media as an agent of socialization. Technology like internet has certainly increased the spread of mass media. People spend most of their time in touch with the world. Internet has enhanced communication and social connection. It has also increased political and civic participations. Social media allow students to learn outside of their class rooms. ‘School in the cloud’ is yet another example of how the internet and social media can help to improve global education.

Internet has helped to transmit information and create awareness about a wide range of issues and events among members of the society. It influences attitudes, values and moulds public opinion and acts as an effective way to change the society. Through the internet we can access online educational courses or training. In fact, any type of information from any part of the world can be accessed through the internet.

There is also negative impact of internet on society as – Youth access the internet and indulge in chatting, emailing, watching restricted site that leads to cyber crimes instead of creating interest in reading and creative activities. Sometimes internet may not give accurate information hence the validity and accuracy of the messages must be considered. Internet reaches the masses in developing countries, but there are many tribal, rural and poor urban people having no access to any kind of information. Communication technologies are expensive and need maintenance. Thus, internet may help to develop knowledge and spread information but it also has adverse effects on the society and have promoted values like individualism and materialism.

11th Sociology Digest Chapter 6 Socialization Intext Questions and Answers

ACTIVITY (Textbook Page No. 68)

Question 1.
Conduct a group discussion on the threatening challenge of online games like ‘Blue Whale’. Try to find answers to issues like why do children even consider participating in such games? Are parents to be blamed? What is the role of Law?
Answer:
Games like ‘Blue Whale’ has the challenges of self-harm. It exploits vulnerable people. It blocks the boundary between virtual and real world. There’s a constant competition, level up, which drive the children to perform their best amongst others.

Most games are addictive become of the challenges involved. Once the children are engrossed in it, there is no coming back and they strive hard to achieve the next level, the next goal. This sense of achievement targets the brain’s reward system and compels the gamer to perform the act again and again.

Are parents to be blamed?
Children are becoming addictive to online games because they are designed to be addictive and not because parents allow them to play too much.

What is the role of Law?
With dangerous online games like ‘Blue Whale’ claiming several innocent lives in the recent past, the supreme court has directed the centre to constitute a panel of experts to block such life-threatening games.

Question 2.
Watch advertisements or messages on T.V. and see how effective mass media is in creating awareness against corruption, drug addiction, smoking or any other relevant social issue. (Textbook Page No. 68)
Answer:
The mass media has potential to create awareness against various issues like corruption, drug addiction, smoking etc., by propagandise simple and focused messages to large audiences repeatedly, overtime, at a low cost. They are able to reach a large heterogeneous population. Media campaigns can help in the reduction of smoking and drug addiction and have shown positive results in number of other relevant social areas. Techniques of mass media can be effectively used to counter corruption as well.

Question 3.
Do you think resocialization requires total institutions? Why? Why not? (Textbook Page No. 70)
Answer:
In the process of resocialization old behaviours are removed because they are of no use. Resocialization is necessary when a person moves to a senior care centre, goes to a boarding school or serves time in jail. I think, resocialization requires ‘total institutions’ in a new environment as they can learn new norms and unlearn existing behaviours. The most common way of resocialization occurs in a total institution where people are isolated from society and made to follow new rules and behaviours. A ship at sea military camps, religious convents, prisons or some cult organizations. They are cut off from a larger society. Members entering an institution have to leave behind their old identify to be socialized.

Question 4.
Collect data from five students regarding their experience with social networking sites (example Facebook, Snapchat, Twitter). Find out about how much time they spend online, what kinds of people they interact with, what topics are usually discussed, the uses and problems of social networking sites. Write a 100-word Report on your findings. (Textbook Page No. 71)
Answer:
With respect to overall media consumption, most students spend hours on social networking sites using mobile phones, tablets, laptops, desktops, etc. This age group restricts watching television and is considered as the largest part of change in the media landscape. Example: More three to eleven years of age group are online than in 2016, with much of this growth coming from increased use of tablets. Unsurprisingly, tablets and other portable, connected devices are also playing an important role.

Uses:
Social networking sites allow users living at distant places within their network to connect to another thus increasing social connection, share ideas, photographs, videos, information and other happenings around the world.

Problem:

1. Untrustworthy Member Data.
2. Users submit inaccurate information on their profile.
3. Leaving social networking is difficult; there are saved accounts, and ways to continue to reconnect to the site, even after an individual uninstall the account.
4. Less time for face to face connections with family members.
5. Being too much online diminishes our skills and can have serious side effects. These side effects are becoming more and more frequent amongst the waves of generations.

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 5 Culture Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 5 Culture

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Culture is ……………….
(natural / personal / adaptive)
Answer:
adaptive

Question 2.
Material culture is ……………….
(concrete / abstract / intangible)
Answer:
concrete

Question 3.
Bollywood music is an example of ……………….
(high culture / popular culture / folk culture)
Answer:
popular culture

1. (B) Correct the incorrect pair.

Question 1.
(a) Classical singing of Bhimsen Joshi – High culture
(b) Shakespeare’s literature – Folk culture
(c) Harry Potter books – Popular culture
(d) Religious group – Sub-culture
Answer:
(b) Shakespeare’s literature – High culture

1. (C) Identify the appropriate term from the given options.

(Folk Culture, Material Culture, Popular Culture)
Question 1.
Songs transmitted from one generation to the next.
Answer:
Folk Culture

Question 2.
Use of mobile phones today.
Answer:
Material Culture

1. (D) Correct underlined words and complete the sentence.

Question 1.
Belief in superstition is an example of material culture.
Answer:
Belief in superstition is an example of non-material culture.

Question 2.
E-commerce is an example of popular culture.
Answer:
E-commerce is an example of mass culture.

2. Write short notes.

Question 1.
Characteristics of Culture.
Answer:
The term culture refers to the way of life of a member of various societies or groups. Culture has the following characteristics:

1. Culture is acquired : Culture is learnt by each member through socialization. Cultural learning takes place through experience and symbolic interactions. Culture is propagated through generations.
2. Culture is abstract : Culture exist in the minds or habits of the members in a society. We cannot see culture but can see human behaviour.
3. Culture is shared : Culture is shared by a group of people belonging to the same community. They share same values, beliefs and traditions. These aspects develop a sense of unity.
4. Culture is man-made : Culture is a human product and does nothing on its own.
5. Culture is idealistic : Culture embodies the ideas and norms of a group. It consists of intellectual, artistic and social ideas which are followed by members of the society.
6. Culture is transmitted among the members of the society : The cultural ways are learned by persons from persons and many of them are handed down by one’s elders, parents, teachers and others.

Question 2.
Social Benefits of Culture.
Answer:
Culture has many social benefits:

1. Fundamental benefits : Cultural experiences are opportunities for leisure, entertainment, learning and sharing experiences with others. These benefits are intrinsic to culture. They are what attracts us and the reason why we participate.
2. Improved, learning and valuable skills for the future : In children and youth, participation in culture helps to develop thinking skills and build self-esteem, which enhance educational outcomes.
3. Better health and well-being : Participation in culture contributes and cultural engagement improves both mental and physical health.
4. Social solidarity and cohesion : Culture helps build social capital – the bond that holds communities together. Cultural activities such as festivals, bring people together and build social solidarity. Our diverse cultural heritage develops a feeling of pride and a sense of belonging to a wider community.

3. Differentiate between.

Question 1.
Material Culture and Non-Material Culture.
Answer:

Material Culture	Non-Material Culture
(i) Material culture refers to the physical objects which are man-made.	(i) Non-material culture refers to non¬physical ideas created by human beings.
(ii) Material culture is concrete and tangible in nature.	(ii) Non-material culture is abstract and intangible in nature.
(iii) It consists of manufactured objects like clothing, roads, jewellery, computers, airplanes etc.	(iii) It consists of norms, regulations, values, signs, symbols, knowledge, beliefs, etc.
(iv) The material aspect of culture changes very fast.	(iv) Change in non-material culture is difficult and not readily accepted by society.

Question 2.
Folkways and Mores.
Answer:

Folkways	Mores
(i) Folkways are mildly enforced social expectations.	(i) Mores are strictly held beliefs about behaviours.
(ii) Violation of folkways is not seen as a serious threat to social order.	(ii) Violation of mores is seen as a serious threat to social order.
(iii) Folkways are less deeply rooted in society and change more rapidly.	(iii) Mores are more deeply rooted and change less frequently.
(iv) Folkways are customary, normal and habitual ways of a group, to meet certain needs or solving day to day problems.	(iv) Mores are more serious norms and have serious binding on groups.
(v) The manner of speech, dressing, the time of meals and numerous other practices of daily life are some examples of customary practices to which an individual confirm in their personal habits.	(v) Murder, stealing, lying, incest are examples of social Mores in almost all cultures.

4. Explain the following concept with suitable examples.

Question 1.
Norms
Answer:

1. Norms are rules and behavioural expectations by which a society guides the behaviours of its members.
2. Some norms are prescriptive and some are prescriptive norms Most norms apply universally but some norms are culture specific.
3. Social norms are further divided into folkways and mores. Folkways are mildly enforced social expectations, while mores are strictly held beliefs about behaviours.
   Example : Folkways – the concept of appropriate dress. Mores – Religious doctrines, taboos, customs, laws, etc.

Question 2.
Folk Culture
Answer:
Folk culture refers to the culture of ordinary people particularly those living in pre-industrial societies. It is an authentic culture. It never aspire to be an art but its distinctiveness is accepted and respected.

Example : Parents expect obedience from children, the time of meals, the number of meals per day, the manner of taking meals the manner of speech; dressing; forms of etiquette and numerous other practices of daily life.

5. Complete the concept maps.

Question 1.

Answer:

6. Give your personal response.

Question 1.
Very few people make an effort to learn classical music today.
Answer:
Classical music is not popular among people today because like any other form of music one requires exposure over a period of time to become familiar. While pop music is appreciated by a large number of people with no cultural expertise.

Question 2.
It is not easy to give up superstitious beliefs.
Answer:
Superstitious beliefs are form of non-material culture which are rooted in society for many decades and centuries. Change in this aspect is not readily accepted by the society or certain sections of the society. It is rooted in society for many decades and centuries. Hence, change in these aspects is not easy

11th Sociology Digest Chapter 5 Culture Intext Questions and Answers

ACTIVITY (Textbook Page No. 61)

Question 1.
Presentation : students make groups of 5 in class and present an aspect of culture, (e.g., language, dialect, dress, folklore, dances, music, art, food habits, architecture, literature, tribal life, rural life, urban life) of any state in India.
Answer:
Students should conduct a presentation in the classroom with the help of using power point, charts to explain the various cultural elements of any one state in India.

Question 2.
Culture varies from society to society. Each Society or a group will have different culture. These cultures are sometimes overlapping and sometimes exclusive. Give examples. (Textbook Page No. 51)
Answer:
Compare culture of different states in India, how they are different in their lifestyles, food habits, dressing styles etc. Also explain by giving examples how certain elements of culture overlap or have similarities. Many cultural elements of different states are also exclusive in nature, peculiar to that region to maintain the ethnicity.

Both Gujarat and Maharashtra were created on May 1, 1960. The dialects spoken in each state are also different. In Maharashtra, the majority of the people speak the Marathi language. The same is true for the Gujarati language in Gujarat this is an example of exclusive culture.
Hindi, one of the official language of India, is a common language. This is an example of overlapping culture.

Question 3.
Observe cultural change around you and list examples of cultural lag in society. (Textbook Page No. 52)
Answer:
Make a note of cultural changes around you.
Example:

1. Younger generations have become more independent.
2. Indian culture today allows young men and woman to have more freedom of choice with respect to marriage partner.
3. Impact of internet similarly, list examples of cultural lag in society.

Example of cultural lag
For example, expectant parents can use genetic engineering to select their unborn child’s eye colour or sex. However, many people view this type of genetic engineering as unethical and believe it could lead to unintended social consequences. This an example of cultural lag.

Question 4.
Look at your surrounding and list out the examples of cultural hybridisation in the areas of food, toys, religious practices, festivals, celebrations. (Textbook Page No. 59)
Answer:

1. Burger and pizza with a pinch of Indian spices, Indianisation of Chinese food.
2. Celebration of Valentine’s Day.
3. Hybrid version of Barbie, fusion music, formation of new language after blending different languages etc.

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 4 Social Institutions Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 4 Social Institutions

1. (A) Choose the correct alternative and complete the statements.

Question 1.
A rule that prescribes marriage within a group is called ……………….
(exogamy / endogamy / polygamy)
Answer:
endogamy

Question 2.
A family that comprises at least three generation is a ………………… family.
(nuclear / joint / cohabitation)
Answer:
joint

Question 3.
The 10 + 2 + 3 system is part of the ………………. system of education.
(informal / formal / universal)
Answer:
formal

1. (B) Correct the incorrect pair.

Question 1.
(a) School – Distance Education
(b) Peer group – Informal Education
(c) Health care training – Non-formal Education
(d) Family – Informal Education
Answer:
(a) School – Formal education

1. (C) Identify the appropriate term from the given options.

(Homosexual Marriage, Matrilocal, Heterosexual Marriage)
Question 1.
A married couple is expected to live at the wife’s residence.
Answer:
Matrilocal

Question 2.
A form of marriage between persons of the same sex.
Answer:
Homosexual Marriage

1. (D) Correct underlined words and complete the sentence.

Question 1.
X married Y. Later she divorced her spouse and married Z. This is an example of polygamy.
Answer:
X married Y. Later she divorced her spouse and married Z. This is an example of monogamy.

Question 2.
Mass production and factory system are found in agricultural society.
Answer:
Mass production and factory system are found in industrial society.

2. Write short notes.

Question 1.
Types of family based on authority.
Answer:
On the basis of authority within family, two broad forms of family can be identified. Matriarchal Family : In matriarchal family authority rests at the hands of the mother and she is considered the head of the family. In matriarchal family descent is traced through mother’s line, known as matrilineal system. Residence of the marriage is matrilocal i.e., the bridegroom lives with the wife’s family and the name follows the mother’s line. It is matronymic. The Garo and Khasi tribes of North East India and the Nair’s of South India follow the matriarchal system.

Patriarchal Family : In patriarchal family all authority rests at the hands of the male head and the eldest male is regarded as the head of the patriarchal family. It is patrilineal i.e., descent is traced through father’s line. Residence after marriage is patrilocal. The married couples live with the husband’s family, and the name of the father’s side continues to the next generation. It is patronymic. Patriarchal family is the most widespread form of family in India and most parts of the world.

Question 2.
Stages of Economy.
Answer:
Human society has evolved through various stages, depending upon the way it evolved mechanisms to adapt to changing material needs.

With respect to the changing nature of work and economy three broad stage of economy are as follows: Agriculture Revolution : From hunting-gathering and then pastoral phases, human society entered into a new stage with discovery of agriculture. With development of agriculture, food production increased. Complex division of labour, advanced trade and permanent settlement are the result of economy expansion through agricultural technology.

Industrial Revolution : Industrial revolution which happened around the middle of the 18th century, first in England transformed social and economic life like never before. It brought four notable economic changes.

1. New forms of energy : With the pioneering invention of the steam engine in 1765 by James Watt, the use of animal and human muscle energy was significantly reduced.
2. Centralisation of work in factories : Use of machinery gave rise to a new workplace called factory.
3. Mass production : Industrial economy developed the manufacturing sector very fast and produced goods on a large scale.
4. Division of labour : The factory system reduced the importance of human skills and resulted to specialised division of labour.
5. Industrialization transformed the whole society and also created huge economic gaps in the society.

The Information Revolution : By the middle of the 20th century the nature of production started to change. The use of automated machinery drastically reduced the role of human labour in manufacturing. Three key changes were seen due to the development of computer and information technology.

1. Tangible products to idea : The tertiary or service sector providing services and dealing with production of ideas and symbols is expanding very fast.
2. Mechanical skills to literacy skills : The information revolution demands a new set of skills such as literacy skills – the ability to communicate, to write, to present and use computer technology.
3. Work from anywhere : Computer technology is allowing for decentralisation of work.

Question 3.
Importance of Education.
Answer:
Education is broad process of learning that broadens an individual’s cognitive horizons and develops in them the skills to choose, evaluate and add to existing knowledge.
The functions of education can be as follows:
1. Inculcate common values and moral beliefs : Children coming from diverse family and community backgrounds gain an understanding of the common values and moral beliefs in society through school education.

2. Fosters self-discipline : Through education children learn self-discipline. They internalise the social rules that contribute to the smooth function of society.

3. Teaches specialised skills: The education system teaches specialised skills needed for a complex modern economy. For example, technical schools are specially designed to provide technical / vocational training.

4. Instils the value of achievement in children : Schools like wider society, largely operate on a meritocratic basis. Those with ability and talent achieve their just rewards.

3. Differentiate between.

Question 1.
Matriarchal Family and Patriarchal Family.
Answer:

Matriarchal Family	Patriarchal Family
(i) Authority rests at the hands of the mother in a matriarchal family. She is considered the head of the family.	(i) The eldest male is regarded as the head of the patriarchal family. All authority rests at the hands of the male head.
(ii) Matriarchal families follow a matrilineal system of lineage i.e., descent through mother’s line.	(ii) Patriarchal family is also patrilineal i.e., descent is traced through father’s line.
(iii) Residence after marriage is matrilocal i.e., the bridegroom lives with the wife’s family.	(iii) Residence after marriage is patrilocal. The married couple lives with the husband’s family.
(iv) The name follows the mother’s line. It is matronymic.	(iv) The name of the father’s side continues to the next generation. It is patronymic.
(v) The Garo and Khasi tribes of North East India and the Nair’s of South India follow the matriarchal system.	(v) The most widespread form of family in India and most parts of the world is patriarchal family.

Question 2.
Agriculture Revolution and Industrial Revolution.
Answer:

Agriculture Revolution	Industrial Revolution
(i) From hunting – gathering and then pastoral phases, human society entered into a new stage with discovery of agriculture.	(i) Industrial revolution happened around the middle of the eighteenth century and transformed social and economic life.
(ii) Agricultures involved using technology of large -scale farming using ploughs harnessed to animals.	(ii) Industrialisation involved using of machinery and new forms of energy.
(iii) This increased the productive power of hunting and gathering more than tenfold.	(iii) This increased more mass production which turned raw materials into a wide range of goods.
(iv) griculture revolution resulted into expansion of economy through agricultural technology, complex division of labours permanent settlement and advanced trade.	(iv) Industrial revolution resulted into centralisation of work in factories and specialized division of labour.

4. Explain the following concept with suitable examples.

Question 1.
Cohabitation
Answer:

1. Cohabitation is the sharing of a household by an unmarried couple.
2. Live in relations or cohabitation may or may not lead to marriage.
   Example : Younger generations specially in many parts of Europe and in some urban areas in India are preferring cohabitation as family relation. This is especially true among same sex couples.

Question 2.
Formal Education
Answer:

1. Formal education is planned with a specific end in view.
2. It involves direct schooling and instruction. Since it is provided to fulfill specific ends, formal education is limited to a specific period. Formal education has a well-defined and systematic curriculum based on aims designed according to the needs of society.

Example : Schooling and education are considered as a formal education based on formal curriculum with specific subject and skills.

5. State whether the following statements are true or false with reasons.

Question 1.
In a modernizing society the role of parents are changing.
Answer:
This statement is True.

1. Rapid growth of divorce and changing roles of woman give rise to a new family form and relation which has led to changes in the role of parents.
2. The average age at which people get married is also increasing. There is also an increasing trend of individuals not getting married. There is a changing role of women due to education and employment. All these changes are affecting family as an institution.
3. In our contemporary society, the traditional belief of fathers are the breadwinners and mothers only do household chores is no longer true. With the advent of globalization, their roles are changing which is vastly different from their previous generations.

Question 2.
India is in the stage of industrial revolution.
Answer:
This statement is False.

1. India is in the stage of information revolution. The development of computer and information technology have changed the nature of work in India.
2. The use of automated machinery has reduced the role of human labour in manufacturing. Service industries like public relations, banking and sales, media, advertising have expanded.
3. The introduction of computer and information have changed the character of work in India.

6. Give your personal response.

Question 1.
What are your views about love marriage? Do you support it? Explain.
Answer:
The basic concept of love marriage lies in the fact that the girl or boy chooses his or her life partner. The restrictions of caste, religion, physical appearance does not apply when a person falls in love. In India these restrictions are seriously enforced which limit the number of desirable matches for a person. Also, it curbs the practice of dowry as one does not need to prove one’s worth. Therefore, I support love marriages.

Question 2.
How has the information revolution impacted your life?
Answer:
Information revolution has made our life easier. Information revolution has made it possible to do many things from the comforts of one’s own home. I can take virtual tour of museums, buildings etc. It has exposed one to different cultures. One can do all of shopping online. It has created abundance of data on every possible subject or interest.

7. Answer the following in detail (About 150-200 words).

Question 1.
Show how the role of family has changed in the present times. Illustrate with your own examples.
Answer:
Families are the nexus of activities that include parenting , employment and leisure. As society changes, families must adapt to the new structures and processes resulting from this change. One of the most striking features of modern societies has been rapid growth of divorce.

The average age at which people get married is also increasing along with an increasing trend of an individuals not getting married. The changing roles of woman through increased education and employment, has put additional pressures on the family to adapt to dual-earner, households and changing needs of child care. All these changes are affecting family as an institution.

It has given rise to new family relationship:
(i) Single-parent Family : Majority of single parent families are headed by single mothers. This may result from divorce, separation, death or by choice. Sometimes growing up in a single parent family can be a disadvantage for children.

(ii) Cohabitation : Cohabitation is the sharing of a household by an unmarried couple. Younger generations, especially in many parts of Europe and in some urban areas in India are preferring cohabitation as family relation. This is especially true among some same sex couples.

(iii) Step-parenting : As rates of divorce and remarriage is steadily on an increase, it gives rise to a new family form and relation of step-parenting. The extent of children staying in step families is increasing.

In the traditional family living, the wife had no voice in family decision making but in contemporary family she has equal power role to play. The authority has shifted from patriarchal to parents who consult their children an all-important issues before taking any decisions about them. Younger generations now claim more individuality. Change in family does not mean the complete erosion of previous norms and structure.

11th Sociology Digest Chapter 4 Social Institutions Intext Questions and Answers

ACTIVITY (Textbook Page No. 41)

Question 1.
Discuss why hypogamous marriages are resisted in society. Take help of newspapers, magazines and cinema.
Answer:
Reasons for resisting hypogamous marriage. Hypergamy is a term used for the practice of a person marrying a spouse of higher caste or social status than themselves. Young women generally marry older men of higher status, with general rule that older men have more time to create wealth and status than younger men. Today such marriages are on decline, as most people marry their approximate social equals and in some parts of the world hypergamy has decreased. Also, it is becoming less common for women to marry older men though hypergamy does not require the man to be older but only of higher status.

Question 2.
Look at the matrimonial advertisements in newspapers, magazines and internet and discuss the findings. Do you think endogamy is still the prevalent norm in India? (Textbook Page No. 42)
Answer:
Religion and Caste endogamy still dominates while choosing a life partner. Women have the freedom to select a spouse in urban areas, yet, the choice can be restricted. So, in general, marriage is often seen as socially determined institutions.

Question 3.
Watch the classic movie ‘Modern Times’ made by Charlie Chaplin and have a discussion on the effects of mechanisation on human labour. (Textbook Page No. 44)
Answer:
The film ‘Modern Times’ is a comment on the desperate employment and financial conditions that people faced during the great depression conditions created, by the modern industrialization in the view of Chaplin. Modern Times’ portray Chaplin as a factory worker where he is subjected to such indignities as being forced fed by a malfunctioning ‘feeding machine’. In the movie, industry is portrayed as something bigger and more valuable than the people who work within it. Chaplin tries to point out the fact at the industrialized world functions in a way that suppresses human agency and creativity.

Question 4.
Eminent personalities having achieved social prestige and position on the basis of their educational qualification. (Textbook Page No. 48)
Answer:
(i) Bhimrao Ramji Ambedkar : Dr. Bhimrao Ambedkar was born on 14th April 1891. During his childhood he was subjected to socio-economic discrimination and faced severe humiliation. Dr. Ambedkar earned his doctorates in Economics from both Columbia University and the London School of Economics. He gained reputation as a scholar for his research in Law, economics and political science. In his initial career, he worked as an economist, professor and lawyer. He was posthumous awarded the Bharat Ratna, India’s highest civilian award, in 1990.

(ii) A. P. J. Abdul Kalam : A. P. J. Abdul Kalam was born on 15th October 1931. His father was an owner of a boat, an imam of local mosque. Due to destruction in business and loss of the family fortune, Kalam’s family suffered poverty. To help his family, he started selling newspapers at an early age. Abdul Kalam completed his graduation from the Madras Institute of Technology and joined the Aeronautical Development Establishment of the Defence Research and Development Organisation (DRDO) as a scientist after becoming a member of Defence Research and Development Service (DRDS). He came to be known as the Missile Man of India’. He was the 11th President of India.

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 3 Basic Concepts in Sociology

1. (A) Choose the correct alternative and complete the statements.

Question 1.
Society is based on ……………….
(co-operation / competition / conflict)
Answer:
Co-operation

Question 2.
Villages are a part of ……………….. community.
(rural / city / metropolitan)
Answer:
rural

Question 3.
Family is an example of a ………………. group.
(large / primary / formal)
Answer:
primary

Question 4.
Social status refers to ……………… in a group.
(function / position / purpose)
Answer:
position

1. (B) Correct the incorrect pair.

Question 1.
(a) Family – Voluntary Group
(b) Caste – Involuntary Group
(c) Village – Primary Group
(d) Workplace – Secondary Group
Answer:
(a) Family – Involuntary Group

1. (C) Identify the appropriate term from the given options.

(Role, Folkways, Society)
Question 1.
Punctuality in class is the duty of a student.
Answer:
Role

Question 2.
In many places in India, eating with hands is a common practice.
Answer:
Folkways

1. (D) Correct underlined words and complete the sentence.

Question 1.
Norms which can be applied in daily life are called law.
Answer:
Norms which can be applied in daily life are called standard norms.

Question 2.
Family is an example of a/an voluntary group.
Answer:
Family is an example of a/an involuntary group.

2. Write short notes.

Question 1.
Characteristics of Society.
Answer:
(i) Society includes likeness : According to Maclver ‘society’ means likeness. Social relationships exist among those who are alike in body and mind. People have similarities with regard to their needs aim, ideals, values, outlook towards life and so on.

(ii) Society includes difference : A society together with likeness is also based on differences. Differences is an important factor for a healthy society. Different types of personalities are essential in our society in order to satisfy the different needs. These differences are based on sex, age, physical strength, intelligence, talent, personality and unequal possessions of material objects and wealth.

(iii) Interdependence : Individuals in a society depend upon one another for the satisfaction of needs. One group, one nation, one community depends upon the other for its development, t Interdependence is seen in family groups as well. The existence of society depends upon different types of social relationships.

(iv) Co-operation : Every society is characterized by co-operation and division of labour. It is necessary for survival.

(v) Normative nature : In a society, social behaviour is evaluated by social control. These controlling means are known as norms. Norms control the misbehaviour or the acts which are harmful to society thus protecting the society.

(vi) Society is dynamic : No society is static. It changes continuously; old customs, traditions, I values, norms and institutions replace the new customs, traditions, values, norms and institutions.

Question 2.
Characteristics of Primary Group.
Answer:

1. Physical proximity : This is essential for a primary group as people have close relations with each other. Hence, they experience physical proximity.
2. Smallness of the group : These social groups are small in size and bring out the close relations among its members.
3. Permanence of relationship : Close relations create more unity among the members.
4. Face-to-face relationship : These social groups are small in size and are based on greater closeness. It is useful for maintaining group stability.
5. Similar objectives and goals : This group is homogeneous in nature. Hence, there is uniformity of objectives and goals among its members.
6. The relationship is an end in itself: The relationships in this group are very natural.
7. Informal control: This group is conventional and based on emotional bonds.

Question 3.
Types of Norms.
Answer:
Folkways : The term was first used by William Sumner. According to him, folkways are the recognized ways of behaving and acting in society. Example, eating using one’s fingers, eating with chopsticks, eating with fork and spoon; different ways of wearing a sari.

Mores : Mores are more rigid than folkways. They are instruments of social control and deals with higher values of people. Example, sexual relations before marriage are not permitted.

Law : Law is an important and essential element of society.
They are deliberately formulated rules of behaviour. It is universal in nature and common for all to follow. There are two types of law- Customary Law and Enacted Law.

1. Customary law – It is not in a written form but orally transmitted. It is followed in tribal as well as in rural society.
2. Enacted law – This law is in a written form. It is important as well as obligatory in a modern, complex and dynamic society. For example, The Hindu Marriage Act, 1955; The Domestic Violence Act, 2005.

3. Differentiate between.

Question 1.
Primary Group and Secondary Group.
Answer:

Primary Group	Secondary Group
(i) Primary group is a group in which relationships are personal, informal, face to face and intimate in nature.	(i) Secondary group is a group in which relationships are impersonal, formal and contractual in nature.
(ii) This group is small in size.	(ii) This group is large in size.
(iii) Relationships are personal, so physical proximity is more.	(iii) Due to formal relationships there is no physical proximity between the members.
(iv) Relations are permanent.	(iv) Relations are temporary.
(v) Behaviour is controlled in an informal way.	(v) Behaviour is controlled in a formal way.
(vi) Example Family, peer group, neighbourhood, etc.	(vi) Example Nation, State, Labour unions, etc.

Question 2.
Voluntary Group and Involuntary Group.
Answer:

Voluntary Group	Involuntary Group
(i) Membership is based on choice.	(i) Membership is based on birth.
(ii) It may be temporary or permanent in nature.	(ii) It is mostly permanent in nature.
(iii) Individual has choice to continue or to leave the membership.	(iii) One cannot leave the membership or it may be difficult to leave the group.
(iv) Example : Political parties, youth organisation, cultural association, etc.	(iv) Example : Family, caste, race, religion, etc.

4. Explain the following concept with suitable examples.

Question 1.
Reference Group
Answer:
The concept of reference group was introduced by Robert Merton. A reference group is a group to which an individual or another group is compared. We use reference groups in order to guide our behaviour and attitudes that help us to identify social norms.

Reference Groups are of two types Informal and Formal.

1. Informal reference groups are formed by the individual as per their likes, interests and attitudes.
   Example : Family, peer groups, teachers, siblings, associates, etc.
2. Formal Reference Group are the ones that have a specific goal or mission.
   Example : Labour unions, supreme court, military units, corporations, worship place, universities, etc.

Question 2.
Role Conflict
Answer:

1. Role conflict refers to a clash between roles.
2. When one faces incompatibility between two or more roles at the same time or in a given situation. Role conflict is inevitable.

Example: A boss will suffer role conflict if forced to fine an employee who is also a close friend. A newly married bride experiences role conflict because she has to adjust with her in-laws, household work and office work.

5. (A) Complete the concept maps.

Question 1.

Answer:

5. (B) State whether the following statements are true or false with reasons.

Question 1.
Society never changes.
Answer:
This statement is False.
1. Society is a web of social relationships. These relationships and interactions are based upon different institutions, traditions, customs, values and norms of the society.

2. Changes in any one of this is reflected in the changes in relationship and interaction among the individuals. Change is a universal phenomenon. No single society is static. Factors like, westernisation, modernisation, industrialisation, education have brought various changes in society.

3. Today, educational system, family patterns, norms, values, needs, etc., are changed. People have become more self-centred. Individual freedom, consciousness towards one’s own rights are increasing. Hence, society is changing continuously.

Question 2.
People living in a community must have awareness of sharing a way of life.
Answer:
This statement is True.

1. Individuals are emotionally attached to their community. People those who live in a particular community occupy a definite territorial area. They share common objectives and needs.
2. They have love and affection towards each other.
3. This develops a sense of belongingness. Therefore, people living in a community must have awareness of sharing a way of life.

6. Give your personal response.

Question 1.
Show how folkways, mores and laws may clash with each other.
Answer:
Folkways is one of the essential elements of culture. Folkways govern our daily routine and ordinary contacts with other people. Whereas mores are considered as vital to the welfare of the group. Folkways and mores are the customary way of life and standards of right and wrong. Example: wearing clothes are mores and wearing clothes of different styles are folkways.

Laws are deliberately formulated rules of behaviour that are enforced by a special authority, e.g., there are laws that can punish people for marrying more than one person. Hindu Marriage Act, 1955.

Mores, folkways and laws are taught through the process of socialisation by various sources like family, friends, peer groups, schools, etc. However, these three clash each other in various ways. In today’s complex, competitive society, one finds it difficult to cope up with these three elements of society. Example: there is a man who belongs to a poor family and has the responsibility of marriage of his sister. Being born in a poor family, he doesn’t have enough money for his sister’s marriage. As per the laws, asking for dowry is illegal, but due to his financial condition, he has to ask for dowry from his in-laws to get his sister married. In such situation folkways, mores and law clash each other.

Question 2.
Do you think that role conflict is inevitable in social life?
Answer:
Yes, the role conflict is inevitable in social life.
When an individual has to play several roles at a time, then it is not possible to perform one role appropriately, it is called as role conflict. In today’s society, everyone wants to achieve high status in society. Everyone wants to achieve a life of luxury and comfort. People want to earn more and more money. Expectations have been increased. In order to adjust with such competitive situation, one has to play different role in the society. That creates role conflict.

Example: A woman working as a nurse in the hospital, has to look after her sick in-laws at home, because of which she can’t pay proper attention towards her duty. A husband who has to attend urgent meeting as a manager, can’t give time to his family. One has to perform multiple roles in a complex society. That is why role conflict is inevitable in social life.

7. Answer the following in detail (About 150-200 words).

Question 1.
Identify any two secondary groups of which you are a member. Discuss any four characteristics with reference to the groups that you have named.
Answer:
Secondary groups have impersonal, formal, indirect, temporary and goal oriented relationships with large number of members. It is not possible to have regular, permanent, close and intimate relations with everyone. People meet each other only for serving specific purposes. Relations are maintained only when the specific purposes are fulfilled and people are satisfied.

People are always very busy and it is necessary to have appointments before meeting. Secondary group are heterogeneous and formal in natural. People are given time to meet but for that purpose only. People do not meet for long term goals. Free expressions of emotions, feelings and intimacy is not allowed. In secondary group, members have to follow rules and regulations strictly.

Example : (i) Student of a college
(ii) Member of NSUI – National Students Union of India (or) ABVP – Akhil Bhartiya Vidhyarthi Parishad
Characteristics of secondary group with reference to the above mentioned group. Large Size: In college or in NSUI number of students and members is large. Here, the membership is unlimited as compared to primary group.

Indirect relations : Due to large size, direct relations among all the students and members are not possible. To convey any message, we take help of modern means of communication, e.g., mobile phones, e-mail, WhatsApp, etc.

Impersonal relations : As the members are large in size personal interactions is very rarely seen. Here, we do not know each other personally. That is why, relationship is not personal.

Formal relations : Informal relations is not possible because face to face contact can’t take place. People are more goal oriented. Membership is strictly based upon laws and regulations.

11th Sociology Digest Chapter 3 Basic Concepts in Sociology Intext Questions and Answers

ACTIVITY (Textbook Page No. 25)

Question 1.
Visit a rural, tribal or urban community and speak to 3-5 people and find out about their work, families, customs, beliefs etc. Write a report or make a short film on your mobile phone.
Answer:
Tribal, Rural and Urban Community – Work, Families, Customs, Beliefs-
(i) The Tribal Community : The tribal community is small in size. Each tribe has its own culture. They are close to nature and their life is influenced by religion. Therefore, they worship natural forces and seek assistance from the shaman and magician for solving their problems. Their economy and usage of technology is simple. This is known as subsistence economy.

(ii) Rural Community : The rural community is largely homogeneous. The main occupation of the people in this community is agriculture and non-agricultural occupations such as dairy farming, poultry, etc. This community is influenced by nature and they worship it as God or Goddess.

The rural community is influenced by the institution of family and characterized by primary relations. Joint family continues to exist in rural areas though some modification has occurred.

(iii) Urban Community : The urban community is large in size and consists of mostly nuclear families. It is a settlement of socially heterogeneous people. Occupations of the urban people are non agricultural. There is more scope for division of labour. This community is greatly impacted by artificial or man-made environment rather than natural environment on the urban community.

Question 2.
Prepare a photo essay regarding interactions observed within primary and secondary groups. Students should go around in their neighbouring localities and capture with their devices (like mobiles), the interaction patterns based on characteristics of various types of groups. How to write a photo essay? (Textbook Page No. 29)
Answer:
(Students are required to perform this activity themselves by visiting the link http://www. collectivelens.com/blog/creating-photoessay/ as a guideline.)

Question 3.
Conduct a role play exercise to understand the concept of role conflict and role strain. For example: Working women performing various roles inside and outside the home. (Textbook Page No. 32)
Answer:
Understanding 1: Women consider that the household affairs and care for the family is their primary duty. Women are thus confronted with the challenge of playing the dual role, to excel at home, as well as at the workplace. To prove her competence on both the fronts, women are facing the problem of overwork and are often being stressed or drained of their energy. Yet, they find themselves unable to match the expectations at any of the two places, which gives rise to role conflict and role strain.

Understanding 2:
Role Conflict:
Role conflict occurs when conflicting expectations arise from two or more statuses than an individual occupies.

Role Strain:
Role strain arises when conflicting expectations are built into a single status.

Question 4.
List out various folkways and mores that we find in our day-to-day lives. (Textbook Page No. 33)
Answer:
Folkways: The folkways are the recognized ways of behaving and acting in society. Folkways are norms that stem from and organize casual interactions and emerge out of repetition and routines. We engage in them to satisfy our daily needs and they are most often unconscious in operation, though they are quite useful for the ordered functioning of the society.

1. Waiting in a queue
2. Appropriate dressing.
3. Practice of raising one’s hand to take turns while speaking in a group.
4. While eating using one’s fingers, eating with chopsticks, eating with fork and spoon.
5. Different ways of wearing a sari.

Mores : “More are the popular habits and traditions when they include a judgment that are conductive to social welfare and when they exert a coercion on an individual to conform to them”.

More are stricter than folkways, as they determine what is considered moral and ethical behaviour. Mores structure the difference between right and wrong. Violation of mores results in disapproval or ostracizing. As such mores play a key role in shaping our value, beliefs, behaviour, and interactions than folkways.

1. Religious doctrine.
2. Sexual relations before marriage are not permitted.
3. It is not acceptable to use drugs such as heroin and cocaine.
4. It is expected that one will be one time for work.
5. Talking to oneself in public is not considered normal behaviour.
6. Nudity in public is not acceptable.

Balbharti Maharashtra State Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists Textbook Exercise Questions and Answers.

Maharashtra State Board Class 11 Sociology Solutions Chapter 2 Contribution of Western and Indian Sociologists

1. (A) Choose the correct alternative and complete the statements.

Question 1.
The Industrial Revolution took place in ………………..
(North America / Europe / Australia)
Answer:
Europe

Question 2.
Science is based on …………………
(beliefs / facts / guess work)
Answer:
facts

Question 3.
Significant work has been done on kinship organisation in India, by female sociologist ………………
(Iravati Karve / Suma Chitnis / Neera Desai)
Answer:
Iravati Karve

Question 4.
The ……………….. stage of societal growth is characterised by explanations which are abstract but not God-centred.
(Theological / Metaphysical / Positive)
Answer:
Metaphysical

1. (B) Correct the incorrect pair.

Question 1.
(a) Abdul Rahman Ibn-Khaldun – North Africa
(b) Auguste Comte – France
(c) Harriet Martineau – England
(d) Karl Marx – Russia
Answer:
(d) Karl Marx – Germany

1. (C) Identify the appropriate term from the given options.

(Polarization. M. N. Srinivas, R. N. Mukherjee)
Question 1.
Marx argues that classes will become hostile towards each other.
Answer:
Polarization

Question 2.
The Indian sociologist who coined the term westernisation.
Answer:
M. N. Srinivas

1. (D) Correct the underlined words and complete the sentence.

Question 1.
The stage of society where empirical evidence forms the basis for explanation is the theological stage.
Answer:
The stage of society where empirical evidence forms the basis for explanation is the positive / scientific stage.

Question 2.
The book ‘Le Suicide’ was written by Hobbes.
Answer:
The book ‘Le Suicide’ was written by Emile Durkheim

2. Write short notes.

Question 1.
Contribution of G. S. Ghurye to Indian Sociology.
Answer:
1. Govind Sadashiv Ghurye was the first who introduced sociology in India after independence. Therefore, he is considered as the ‘Father of Indian Sociology’. He established ‘Indian Sociological Society’ and started the journal ‘Sociological Bulletin’.

2. Ghurye’s work on scheduled tribes, were based on the historical, administrative and social dimensions of Indian tribes. He wanted the tribals to be integrated with the wider Indian society. He has written on tribes like Mahadev Kolis in Maharashtra. His book, ‘Caste and Race in India’ is one of the most important contribution to Indian sociology.

3. Ghurye referred to the long process of Hinduisation of the tribes from different parts of India. He considered cultural unity between tribes and caste as the only means to promote integration in Indian society.

4. His book, ‘Caste and Race in India’, published in 1932 combines historical, anthropological and sociological perspectives to understand caste and kinship system in India.

Question 2.
Types of suicide according to Durkheim.
Answer:
Suicide is a type of death carried by an individual intentionally or deliberately. According to Durkheim suicide is a social phenomenon. Following are the types of suicide.
1. Egoistic suicide : It takes place when an individual is very much self-centred and least bothered about the other members of society, e.g., it is committed by people who become introvert and have less desires to live in the company of others, suicide rates are higher for those widowed, single and divorced.

2. Anomic suicide : When situations go against the norms and values of a person. In such condition individual finds it difficult to face the situation and adjust with that, e.g., suicide of farmers.

3. Altruistic suicide : This type of suicide is different from egoistic suicide. This type of suicide means sacrificing own life for the betterment of people or society, e.g., Sati system, a patient commits suicide for the sake of family.

4. Fatalistic suicide : When an individual is under excessive control from the outside factors fatalistic suicide takes place e.g., Dowry death. According to Durkheim social situations, circumstances, factors are responsible for suicide and become a ‘social fact.’

3. Differentiate between.

Question 1.
Theological Stage and Positive Stage.
Answer:

Theological Stage	Positive Stage
(i) Theological stage is the first stage of Comte’s Law of three stages.	(i) Positive stage is last or third stage of Comte’s law of three stages.
(ii) Human thinking, ideas and views were influenced by spiritual and supernatural factors.	(ii) This is an improved rational, scientific form of human thinking.
(iii) All societies believed that God controls all events in the world.	(iii) Instead of imagination and superstitious belief, societies turn towards empirical scientific approach.
(iv) Example : Natural calamities like flood, drought etc., were the expressions of God’s anger.	(iv) Example : Discoveries of Newton and Galileo, enlightement.

Question 2.
Anomic Suicide and Altruistic Suicide.
Answer:

Anomic Suicide	Altruistic Suicide
(i) Anomic suicide takes place in situations where one is not able to adjust with circumstances which arise unexpectedly.	(i) Altruistic suicide means, an individual commits suicide with the object of doing well for others.
(ii) This is due to economic instability and personal struggle.	(ii) This is due to fanatical love for one’s own community.
(iii) It reflects a normlessness.	(iii) It is value-oriented.
(iv) Example : Businessman committed suicide due economic depression or extreme prosperity.	(iv) Example : Sati system (committed by Indian women in the past), Hara-kiri (committed by Japanese)

4. (A) Complete the concept maps.

Question 1.

Answer:

4. (B) State whether the following statements are true or false with reasons.

Question 1.
According to Marx, capitalism gives rise to we feeling among workers.
Answer:
This statement is True.

1. Capitalists accumulate profit through the exploitation of labour. The poverty of the workers’ class grows with increasing exploitation of labour.
2. Economic exploitation and inhuman conditions lead to the increasing alienation of workers.
3. The classes tend to become internally homogeneous and class struggle, more intensified and creates class solidarity and we feeling among the workers.

Question 2.
Iravati Karve has made significant contribution to the study of Kinship in India.
Answer:
This statement is True.

1. Iravati Karve has contributed in the field of Sociology as well as Anthropology. She wrote a book ‘Kinship Organization in India’ in which she describes major kinship systems in India.
2. Kinship is one of the concepts which is socially and culturally related with factors like family, caste and languages in India.
3. According to her, kinship system is based on the geographical and linguistic group differences.
   Thus, Iravati Karve has made significant contribution to the study of Kinship in India

5. Give your personal response.

Question 1.
Do you think globalization has led to polarization of classes? Discuss with relevant examples of your own.
Answer:
Yes, globalization has led to polarization of classes. This has led to segregation of people in the society that may emerge from income inequality, economic restructuring etc. It leads to differentiation of groups on the basis of high income and low income. Skilled people manage to get high paying jobs while the less educated/skilled people receive low wages.

Question 2.
Do you think Kinship bonds are weakening? Give reasons for your response?
Answer:
Yes, I think as we Indians are progressing and trying to establish our nation as a developed nation, we on the other side are losing importance of our family ties. Kinship bonds means ties based on blood and marriage.
Following are some of the reasons which are axing Kinship bonds.

1. Urbanisation, one of the major reasons of migration of people from rural to urban resulting into formation of a nuclear family.
2. Modernisation, making individuals self-centred, career oriented simultaneously detach from family.
3. Change in the medium of recreation, earlier it was family get together or celebration of festivals or religious ceremony now it is Cinema Hall or Visit to Mall.
4. Increasing control of electronic gadgets like T.V., Mobile Internet, etc., which make virtual world closer but taxing to kinship bond, care and attachment.
5. Dominance of materialistic world results into abundance of needs. Above all, todays smart and modern generation is chopping their own roots, meaning, weakening kinship bonds.

6. Answer the following in detail (About 150-200 words).

Question 1.
You have studied about Comte’s Law of Three Stages of human thought. With reference to the first and third stage, comment on the challenges it poses for Indian society.
Answer:
Auguste Comte believed that the evolution of human mind had taken place along with the evolution of the individual mind. Comte’s social philosophy is based on the concept of three stage of human thought.

Theological stage : In this stage human beings believed in supernatural and spiritual factors. It was believed that three was a control of God on all events in the world. The human mind, at this level, supposed that all phenomena was produced by the immediate action of supernatural beings. For example, all natural calamities were the expressions of God’s anger. This stage is dominated by priests and ruled by military men.
Following are the challenges which poses for Indian society:

1. During this stage, human mind is dominated by sentiments, feelings and emotions.
2. Certain section of Indian society believed that all actions/events happened due to power of God/ Supernatural beings.
   E.g. drought, flood, earthquake etc., natural calamities were nothing but anger of God.
3. Explanation for all happening events are the form of myths concerning spirits and supernatural beings.
4. During this stage, military society was basically dying and priests were dominated.
5. In short, due to effect of theological stage there was lack of logical and orderly thinking in the Indian society.

Positive/Scientific stage : Comte says, scientific stage is an improved and scientific form of human thinking. Now, instead of imagination, we turn to observation. Since Reason and examination were basic planks of knowledge at this stage hence, one seeks to establish laws which link facts and which govern social life.

Effect of scientific stage on Indian Society:

1. Finally, in this stage, Indian society turned towards the scientific way of thinking.
2. Instead of imaginations, society turned towards observation, reason and examination all these were basic planks of knowledge.
3. The concept of God started vanishing from human mind.
4. Society adopted the scientific rational way of thinking and there is no place for any belief or superstition in it.
5. In this way, Comte’s first and third stage affected the Indian Society.

11th Sociology Digest Chapter 2 Contribution of Western and Indian Sociologists Intext Questions and Answers

ACTIVITY (Textbook Page No. 16)

Question 1.
Discuss how ‘polarization of classes’ and ‘class solidarity’ are relevant in the present times.
Answer:
In present times, polarization of classes and class solidarity is associated with the segregation within a society which are immediate cause of emergence of income inequality, economic displacements, formation of various social groups from high income to low income, economic restructuring particularly in cities, economic inequality etc.

Question 2.
Read newspaper articles related to caste issues (e.g. representation, atrocities, reservation) and share the findings with your class. (Textbook Page No. 19)
Answer:
Reference : Times of India (March 29, 2019)
The Indian Express (June 6, 2019)
Times of India (June 3, 2019)

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 8 Introduction to Management Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 8 Introduction to Management

1. (A) Select the correct option and rewrite the sentences

Question 1.
Management is ………………….
(a) dynamic
(b) static
(c) selective
Answer:
(a) dynamic

Question 2.
Management uses …………………. method of observation.
(a) unscientific
(b) artificial
(c) scientific
Answer:
(c) scientific

Question 3.
To help top level management in co-ordinating the activities is the function of …………………. level management.
(a) middle
(b) lower
(c) top
Answer:
(a) middle

Question 4.
To look after maintenance of machinery is the function of …………………. level of management.
(a) top
(b) middle
(c) lower
Answer:
(c) lower

Question 5.
Management is …………………. oriented action.
(a) policy
(b) profit
(c) goal
Answer:
(c) goal

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Management	(1) Need of creativity
(b) Management as a profession	(2) Can be seen.
(c) Top level management	(3) Administration
(d) Management as an art	(4) Intangible
(e) Lower level management	(5) Formal education
	(6) Policy framing.
	(7) Implementation of policies
	(8) Selective
	(9) Directing subordinates to complete the task
	(10) Cause effect relationship

Answer:

Part A	Part B
(a) Management	(4) Intangible
(b) Management as a profession	(5) Formal education
(c) Top level management	(6) Policy framing.
(d) Management as an art	(1) Need of creativity
(e) Lower level management	(9) Directing subordinates to complete the task

1. (C) Give one word / phrase / term

Question 1.
The art of getting things done through others.
Answer:
Management

Question 2.
The second level of management.
Answer:
Middle level

Question 3.
Systematic body of knowledge.
Answer:
Management as a Science

Question 4.
The level of management related to Managing Director.
Answer:
Top level management

Question 5.
Level of management that link top level and lower level management.
Answer:
Middle level management

1. (D) State True or False

Question 1.
Management is an ancient activity.
Answer:
True

Question 2.
Management is not objective oriented.
Answer:
False

Question 3.
In small organization also management is required.
Answer:
True

Question 4.
Middle level management forms policy of an organization.
Answer:
False

Question 5.
Various principles and techniques are used in management.
Answer:
True

1. (E) Find the odd one

Question 1.
Management is an – art, a science, a commerce, a profession.
Answer:
a commerce

Question 2.
Management as an Art – Singer, Actor, Dancer, Doctor.
Answer:
Doctor

Question 3.
Management as Profession – Doctor, Chartered Accountant, Lawyer, Singer.
Answer:
Singer

Question 4.
Level of Management – Lower Level, Middle Level, Top Level, High Level.
Answer:
High level

Question 5.
Top Level Management – Board of Directors, Presidents, Purchase Manager, Chief Executive Officer (CEO).
Answer:
Purchase manager

Question 6.
Middle Level Management – Departmental Head, Finance Manager, Production Manager, Supervisor.
Answer:
Supervisor

Question 7.
Lower Level Management – Supervisor, Foreman, Finance Manager, Office Superintendent.
Answer:
Finance Manager

1. (F) Complete the sentences

Question 1.
The English verb ‘manage’ came from Italian word ……………….
Answer:
Maneggiare

Question 2.
To manage is to forecast, to plan, to organize, to command, to co-ordinate and to ……………….
Answer:
control

Question 3.
Organization is a group of person who work together to achieve a ……………….
Answer:
common goal

Question 4.
Link between the top level and lower level of management is called as ……………….
Answer:
middle level management

Question 5.
Lower level management works under ……………….
Answer:
middle level management

Question 6.
Art is the bringing about a desired result through the application of ……………….
Answer:
skills

Question 7.
Any knowledge which is scientifically developed and consists of universally accepted principles is known as a ……………….
Answer:
science

Question 8.
Science is based on systematic experiments, on certain rules and on ……………….
Answer:
principles

Question 9.
Teacher, Doctor, C.A., Lawyer comes under the term ……………….
Answer:
profession

1. (G) Select the correct option

(Finance Manager, Art, CEO, Profession, Supervisors)

Part A	Part B
(1) Top level	—————-
(2) —————–	Lower level
(3) Middle level	—————-
(4) ————-	Doctor
(5) Singer	—————-

Answer:

Part A	Part B
(1) Top level	CEO
(2) Supervisors	Lower level
(3) Middle level	Finance Manager
(4) Profession	Doctor
(5) Singer	Art

1. (H) Answer in one sentence

Question 1.
What is called as management?
Answer:
Getting work done through others is called as management.

Question 2.
Name, the levels of management?
Answer:
Top level, middle level and lower level are the three levels of management.

Question 3.
What is top level management?
Answer:
The level of management that decides the long term objectives of organization and frame the plans and policies and take decisions is called as top level-management.

Question 4.
What do you mean by middle level management?
Answer:
The level of management which is concerned with implementation of plans and policies in the organization with the help of lower level management is known as middle level management.

Question 5.
What is lower level management?
Answer:
The level of management which is considered to do actual execution of plan is called as lower level management.

Question 6.
What do you mean by an art?
Answer:
An art means skill of individual, creativity, regular practice, personal abilities and innovativeness.

Question 7.
What is science?
Answer:
Science is a systematic body of knowledge and scientific methods.

Question 8.
What is the meaning of a profession?
Answer:
Profession means an individual having adequate knowledge and abilities which is helpful to handle different situations. They are trained people having formal education in management school and have a code of conduct.

1. (I) Arrange in proper order.

Question 1.
Middle level management, Top level management, Lower level management.
Answer:
Top level management, Middle level management, Lower level management.

Question 2.
Departmental Head, CEO, Supervisors, Managing Director.
Answer:
CEO, Managing Director, Departmental Head, Supervisors.

Question 3.
Office clerk, Shareholders, Managing Director, Board of Director.
Answer:
Shareholders, Board of Directors, Managing Director, Office clerk.

1. (J) Correct the underlined word and rewrite the following sentences

Question 1.
Management is only an art.
Answer:
Management is an art, a science and a profession.

Question 2.
There are five levels of management.
Answer:
There are three levels of management.

Question 3.
Lower level management works under top level management.
Answer:
Middle level management works under top level management.

Question 4.
Middle level management works under lower level management.
Answer:
Middle level management works under top-level management.

Question 5.
Management is pure science.
Answer:
Management is a social science.

Question 6.
The entry in any profession is not restricted.
Answer:
The entry in any profession is restricted.

Question 7.
Professionals need informal education.
Answer:
Professional need formal education.

2. Explain the following terms/concepts

Question 1.
Top level management.
Answer:

1. The top level management decides the long term objectives of organization, frames plans and policies and take decisions.
2. It consists of Board of Directors, Managing Director,CEO, President, etc.

Question 2.
Middle level management.
Answer:

1. The middle level management is a link between top level and lower level management.
2. It works under top level management.
3. This level is considered with implementation of plans and policies in the organization with the help of lower level management.
4. It consists of Head of Departments / Branch managers / Incharge, etc.

Question 3.
Lower level management.
Answer:

1. This is the last level of management.
2. It is a supervisory level of management.
3. It consists of superintendents, supervisors, foremen and junior executives.
4. Lower level management receives instructions from the authorities i.e. middle level management and direct subordinates wherever necessary.

3. Study the following case/situation and express your opinion

1. While working in a company, Pranav used to give order to his subordinates about what is to be done and which work is to be done? In this organization, various employees like Pratap are doing their work assigned by Pravin. In this company, Pravin submits his report of work completion to Pranav after completing the work done by the employees like Pratap.

Question 1.
Identify different levels of management in above mentioned company.
Answer:
There are two levels of management i.e. middle and lower level of management in above mentioned company.

Question 2.
Find the level of Pranav in management of company.
Answer:
Pranav works in the middle level management of company.

Question 3.
Explain the functions and role of Pratap in his company.
Answer:
Pratap is an employee in a company. He works at the lower level. He executes the work assigned by Pravin.

4. Distinguish between the following

Question 1.
Top level Management and Middle level Management.
Answer:

	Top Level Management	Middle level Management
(1) Meaning	Top level management refers to top position in the organization such as Board of Directors, CEO, President, Managing Director, etc.	Middle level management refers to middle positions in the organization such as Departmental head, Managers like Finance manager, Production manager, Sales manager, Marketing manager, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with implementation of policies framed by top level management with the help of lower level management.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires combination of conceptual and decision making skills than technical skills.
(4) Promotion Policy	Policy    At this level promotion is given on merit.	At this level promotion is based on merit as well as seniority basis.
(5) Time Frame	It considers longer period of time i.e. 5 to 20 years.	It considers medium period of time i.e. 1 to 5 years.
(6) Responsibility	Top level is responsible to shareholders, government and society.	Middle level is responsible to top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	Orders and instructions are passed to lower level and report of the work is submitted to top level.

Question 2.
Middle Level Management and Lower Level Management.
Answer:

	Middle Level Management	Lower Level Management
(1) Meaning	Middle level management refers to middle positions in the organization. E.g. departmental head, finance manager, etc.	Lower level management refers to lower / last positions in the organization. E.g. superintendents, supervisors, etc.
(2) Nature of Work	It is concerned with implementation of policies framed by top level with the help of lower level.	It is considered with actual execution of planning.
(3) Skills	It requires both conceptual and technical skills.	It requires more technical skills than other skills.
(4) Promotion Policy	Promotion is based on merit as well as seniority basis.	Promotion is based on seniority basis.
(5) Time Frame	It considers medium term i.e. 1 year to 5 years.	It considers very short period of time i.e. upto one year.
(6) Responsibility	It is responsible to top level management.	It is responsible to both top and middle level management.
(7) Flow of Order	Instructions and orders are passed to Lower level and report of the work is submitted to top level	Implementation is done as per the orders of middle level and reports are submitted to middle level.

Question 3.
Top Level Management and Lower Level Management.
Answer:

	Top Level Management	Lower Level Management
(1) Meaning	Top level refers to top positions in the organization. e.g. Board of directors, Managing Directors, CEO, President, etc.	Lower level management refers to lower positions in the organization. e.g. Junior Executives, Foremen, etc.
(2) Nature of Work	It is concerned with framing plans and policies of the entire organization.	It is concerned with execution of plans and policies.
(3) Skills	It requires conceptual or decision making skills than technical skills.	It requires more technical skills than conceptual skills.
(4) Promotion Policy	Promotion is based on merit basis.	Seniority is preferred for promotion.
(5) Time Frame	It considers for longer period of time i.e. 5 to 20 years.	Basically it is very short period of time i.e. upto 1 year.
(6) Responsibility	It is responsible to Shareholders, Government and Society.	It is responsible to middle as well as top level management.
(7) Flow of Order	Orders and instructions are passed to middle level.	It implements orders of middle level and also reports to the middle level.

5. Answer in brief

Question 1.
State any four features of Management.
Answer:
Following are the features of management:
(i) Management is Goal Oriented : Management activity is done to achieve pre-decided goals. The success of organization is calculated on the basis of achievement of desired goals. The success depends on proper management of all available resources. Management decides the goals before conducting the activity. The manager takes efforts to achieve these goals. So management is goal oriented.

(ii) Management is a Group Activity : “Management is an art of getting things done through others.” The above definition explains that management is done through / with the people. It is done by co-ordinating all resources effectively and efficiently. The activities are done under the guidance of manager by its team members. Also in organisation decisions are taken by the group of people such as Board of Directors, Shareholders, etc.

(iii) Management is Intangible : Management is the collective efforts of manager. It is a process of planning, organizing, decision making, directing and controlling. These cannot be seen physically. However, the results of best management can be experienced in the form of increased profits, attainments of pre-decided so management is tangible in nature.

(iv) Management is a Continuous Process : Management is essential throughout the life of organisation. It is necessary to start the activity, to run the activity in smooth manner and also to control the activity. It is endless process. It is required for survival of the organization continuously.

Question 2.
Write any four functions of Top Level Management.
Answer:
Following are the functions of Top Level Management:

1. To decide long term objectives of the organisation.
2. To frame plans and policies to achieve the set objectives.
3. To observe that policies are properly implemented.
4. To create various department and positions.

Question 3.
Write any four functions of Middle Level Management.
Answer:
Following are the functions of Middle Level Management:

1. To link the top level management and lower level management.
2. To understand plans and policies framed by top level management and prepare plan of action according to the nature of department.
3. To assign duties and responsibilities to the staff of the concerned department to achieve pre-defined goals.
4. To appoint lower level staff.

Question 4.
State any four functions of Lower Level Management.
Answer:
Following are the functions of Lower Level Management:

1. Do work under Middle Level Management.
2. To assign work to subordinates.
3. To give instruction to subordinates.
4. To direct the subordinates wherever necessary.

Question 5.
State any two points of relationship about management as an art.
Answer:
The relationship between art and management are:
(i) Personal Skills : In organization, every manager has to handle different situations, has to solve various problems, has to handle human resource, etc. with his own style. This style varies from manager to manager and so the result. This is because of the different skills and abilities of each person.

(ii) Creativity : Creativity refers to the ability to find something new and innovative. Manager finds out new ways to conduct organizational activities and to achieve desired goals. Manager develops new ideas according to the changes in business situation and in the business environment.

Question 6.
Explain any two points of relationship about management as a science.
Answer:
The following points shows there is a relationship in management as a science:
(i) Systematic Body of Knowledge : Pure science is based on systematic experiments, certain rules and principles. Management principles and functions are also based on the experiments which can be studied through various different management theories, techniques and approaches given by different management thinkers.

(ii) Universal Applicability of Principles : Scientific principles can be applied in all over the world in similar situation. Therefore, the same result can be drawn. Management principles are universal in nature. They can be applied everywhere, anytime and in any condition.

Question 7.
State hny two points of relationship about management as a profession.
Answer:
The relationship between profession and management can be seen with the help of following points:
(i) Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. Also he has particular skill in practicing as a professional. Manager also becomes an expert by practicing regularly in the specific field and can acquire certain knowledge and skill.

(ii) Registration : Professionals need to register themselves with their associations. For example, a Chartered Accountant should register himself with Institute of Chartered Accountant of India i.e. ICAI. Without registration certificate he cannot practice. In case of managers, there is no such body to register themselves. However, managers can take the membership of ‘Chambers of Commerce’ which gives them benefits.

6. Justify the following statements

Question 1.
Management is essential in professional and non-professional activities.
Answer:
(i) As management is universal in nature it is applicable everywhere, either it is a professional activity or non-professional activity.

(ii) Every person performs certain activity to achieve pre-decided goals. E.g. earning of profit, winning games, competitions, to increase goodwill, etc.

(iii) Organisations either large, medium or small, profit making or non-profit making, government or non-government organisation, etc. to get success, to attain goals every time management plays a vital role. It’s application ensures smooth functioning of business.

(iv) A professional acquires certain specific formal education. He has specific skill to achieve his goals. He performs management functions like planning, organizing, controlling, etc. Similarly, while performing non- professional activities like plantation of tree, blood donation campaign, a person also requires to perform certain management functions.

(v) Thus, management is essential in performing professional as well as non-professional activities.

Question 2.
Level of management depends upon the size of organization.
Answer:
(i) Making different parts for the smooth functioning of business and to achieve decided goals is called levels of management.

(ii) The size of business is small, medium or large. Every business needs to manage the activities efficiently and’ effectively.

(iii) The levels of management depends on size of organization. If the size of organization is small the classification of levels becomes easy and simple. Whereas in large organization, it becomes difficult and complicated. The levels of management in such organisation may be classified into three parts i.e. Top level, Middle level and Lower level.

(iv) These levels of management are important in organization. These levels have their own functions. As per that they have to perform their duties and responsibilities to attain their set goals and objectives.

(v) Thus, levels of management depends on size of organisation.

Question 3.
Management is a group oriented action.
Answer:
(i) In the words of Mary Parker Follet, “management is an art of getting things done through others”. Management focuses on completing the work through human resource.

(ii) It is co-ordinating of all available resources effectively and efficiently. In organisation, the activities are done by the subordinates, employees under the guidance of a manager.

(iii) A manager, though he is competent, able, has capacity, skills to perform the organizational task, it is not possible for a single manager to perform all the activities related to the said task alone.

(iv) To fulfill or accomplish the objectives and goals, he needs the help of other people, as it should be divided among all the employees, as per their skill, qualification, interest, knowledge and experience.

(v) Thus, management is a group oriented activity.

Question 4.
Management is an art.
Answer:
(i) An art is the bringing about a desired result through the application of skills. It is an innovativeness and creativeness of a person. This is a natural and inborn quality of a person. But with the help of proper education and practice one can developed the quality or qualities. E.g. acting, dancing, cycling, magician, singing, drawing, skating, musician, sports etc. comes under art.

(ii) Art does not require any specific educational qualification or it not any compulsion. It is inborn quality or a skill.

(iii) As a manager, in organisation he has to handle various kinds of situations, employees, other resources effectively and efficiently with his own style. So he uses his skills which are either inborn or developed by practice and formal education.

(iv) A manger must be innovative. He should handle the conditions. He should not use same methods all the time. Like an artist, he has to develop his skills by regular practice. He should use different techniques and skills to get perfect result. This is possible due to regular practice.

(v) Every managers has different abilities and skills. They have to use their own abilities and skills to guide the people to achieve their goals.

(vi) Thus, manager need to be creative and skilled like an artist. Hence, management is an art.

Question 5.
Answer:
There is no need of registration for managers.

1. Every professional is registered with the concerned body or organisation. A professional is formally, educated and also a skilled person.
2. A manager, now-a-days, possess a diploma or degree in management studies like Indian Institute of Management (IIM), PUMBA (Savitribai Phule Pune University, MBA) etc. A person who wants to be a manager acquires the required knowledge of the profession and trains himself / herself for the managerial job.
3. As management is a profession, a manager is not practicing independently. He is an employee of the organisation.
4. Thus, there is no need of registration for managers.

Question 6.
Management is a continuous process.
Answer:

1. Management is a continuous process. It is an important feature of management.
2. A manager of an organisation has to perform managerial work to achieve pre-defined goals of the organisation. To achieve these goals, he as a manager applies various functions of management, principles of management and also techniques of management.
3. From the beginning till the achievement of success, continuous efforts of every individual is required.
   Continuity is an integral part of management. It is necessary through out the life of an organisation.
4. Therefore, management has become necessary to start the activity and to run the activity at the business smoothly.
5. Thus, management is a continuous activity. It is not a one time process, but it is never ending process.

Question 7.
Planning is a task of top level management.
Answer:

1. Planning means thinking before doing. It is thinking in advance. Before the action, there is a thinking process.
2. In the large organisation, management levels are divided into three parts i.e. top, middle and lower.
3. At the top level management, very few personnels are involves. They are Board of Directors, Managing Directors, President, Chief Executive Officer, etc.
4. The main function of top level management is to frame the plans and policies of the whole organisation to achieve its goals.
5. It decides the long term objectives of the organisation and also frames particular plans and policies to get them. Further, it also sees that the policies are properly implemented.
6. Framing of organizational objectives and accordingly plans and policies to achieve them becomes a tough task of top level management.
7. Thus, Planning is a task of top level management.

7. Attempt the following

Question 1.
State the definition of management.
Answer:
Following are some definitions given by management thinkers :

1. “Management is an art of getting things done through others.” – Mary Parker Follet
2. “To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
3. “Management is knowing exactly what is to be done and seeing that it is done in the best possible manner.”
4. “Management is the process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources”. George Terry.

Question 2.
State the features of management.
Answer:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(ii) Management is Intangible : Management is intangible in nature. It can’t be seen and touched. It is abstract. The principles, theories, techniques, concept are practically invisible. The result of best management can be experienced in the form of increased profit, smooth functioning of the organization and achievement.

(iii) Management is a Social Process : Management is a process because it sets objectives and takes steps to achieve them. It is said to be a social process because management is concerned with people. For example employees, shareholders, investors, customers, community, etc.

(iv) Management is a Continuous Process : Management is essential through the life of an organization. It is necessary to begin the activity, to run the activity smoothly and to control the activity. This is never ending process.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vi) Management is an Inborn Quality : Management in the older days, was considered to be an inborn quality. But with the inception of various business schools, management is a quality which can be developed if a person has the interest and perseverance.

Question 3.
State management is as a science.
Answer:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

2. Use of Scientific Methods of Observation : In science the conclusions are drawn only on the basis of scientific methods of observation. Management also uses systematic methods of data collection, verification and analysis of that collected data and interpretation of data, then a manager takes decisions in the organisation.

3. Cause and Effect Relationship : Science is based on cause and effect relationship. After using specific formulae or their combination, we get particular result in science. Management theories are also based on relationships. Fair and regular salary along with good working conditions motivates people to work hard and to give best results. Whereas, old machineries, techniques, untrained employees may not give good / excepted output to the organization.

4. Universal Applicability of Principles : The management principles are universally accepted just like scientific principles are accepted all over the world. For e.g. Newton’s law, Archimedes principle, etc. are all accepted principles, similarly in management also the principle of authority and responsibility, unity of command, direction, etc. are all universally accepted and are used in all organization whether big or small. Management follows these principles in all kind of organizations, at all levels in the same organization. State the relationship between the management and art.

Question 4.
Following points clearly states the relation between management and art.
Answer:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

2. Regular Practice: Practice makes a man perfect. This is the rule applied by a manager. The more the experience, the manager will be able to meet any challenge or difficult situation with ease. He is in a position to make the required changes according to the circumstances.

3. Personal Skill: Every manager being an individual is different. A good manager must posses good skills in dealing with human beings. He should use his skill in knowing the problem, allotment of work to employees, give judgment and understanding to deal with various situations in business.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Question 5.
State the importance of management
Answer:
1. Utilisation of Resources Optimally : Effective management is all about optimum use of available resources in the organization. Proper distribution of resources and work to right person results in higher output. It also reduces wastage and cost. Maximisation of output by reducing cost is the ultimate objective of every organization.

2. Better Relation : Different groups work at different levels in organization. The employer and the employees have different sets of demands from each other. Effective management ensures that employees fulfill their social responsibilities towards their employers. This helps in establishing good relationship among different groups in an organization.

3. Achievement of Goals : In an organization group of people performs various activities to achieve common goals of the organization. Effective management brings about harmony (cordial relationship) and good co-ordination in efforts of all group. A manager creates a feeling of team spirit among the members of the group.

4. Division of Work : Division of work means the entire work is divided into smaller lots. Each job is given to a particular employee as per his ability and skill to carry out the required activity. Division of work leads to specialization of work and completion of the work in the stipulated period of time.

Question 6.
State the similarities between management and profession.
Answer:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

2. Code of Conduct : Code of conduct means set of rules and regulations to be followed by practicing in their field. Every profession has their own code of conduct to control the activities. It emphasis on ethical practice in that profession. E.g. Chartered Accountants have to work according to ICAI, Lawyers have to follow the code of conduct framed by Bar Council of India, etc. However for managers there is no such association of managers. Generally managers follow the code of conduct based on customs and traditions.

3. Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. He has particular skill of practicing as professional. He becomes an expert due to regular practice in specific field.

4. Registration : Professionals need to register themselves with their associations. For example, Lawyers must get registered themselves with India Bar Council, Chartered Accountants with Institute of Chartered Accountant of India, where as for managers there is no need of such registration with any body. They can take membership of ‘Chambers of Commerce’ which give them membership benefits.

5. Restricted Entry : The entry in any profession is restricted. It needs formal education e.g. Lawyers, Architect, Interior designer, Doctors, Chartered Accountant, etc. However, such compulsion is not there for working as a manager.

8. Answer the Following

Question 1.
What is management? State the characteristics or features of management.
Answer:
Management and its features:
(A) Meaning:
The word management is derived from the Latin word ‘manus’ which means ‘hands.
It means management is handling some activity.
Many thinkers said that management means a fine consideration of co-ordinating and controlling the work either from direct individual or from a group.

(B) Definitions:
Some definitions of management given by different management thinkers as follows:

1. “Management traditionally can be defined as “an art of getting things done through others. ” – Mary Parker Follet
2. “To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol
3. “Management is co-ordination of resources through the process of planning, organizing, directing and controlling in order to attain stated objectives.” – F.W. Taylor

Following are the characteristics features of management:
(i) Managements is Dynamic : Management is dynamic and not static in character. It deals with human efforts, different situations and different activities. It adopts changes in the form of technological, socio economical, political, environmental, etc.

(ii) Management is Intangible : Management is intangible in nature. It can’t be seen and touched. It is abstract. The principles, theories, techniques, concept are practically invisible. The result of best management can be experienced in the form of increased profit, smooth functioning of the organization and achievement.

(iii) Management is a Social Process : Management is a process because it sets objectives and takes steps to achieve them. It is said to be a social process because management is concerned with people. For example employees, shareholders, investors, customers, community, etc.

(iv) Management is a Continuous Process : Management is essential through the life of an organization. It is necessary to begin the activity, to run the activity smoothly and to control the activity. This is never ending process.

(v) Management is Different from Ownership : In an organization, management is different from ownership. Owners contribute capital which is taken care of by efficient and paid managers.

(vi) Management is an Inborn Quality : Management in the older days, was considered to be an inborn quality. But with the inception of various business schools, management is a quality which can be developed if a person has the interest and perseverance.

(vii) Management is Situational: Management helps to take decisions and also to handle specific situation. The decisions are based on the principles, theories and techniques. They are applicable in certain situation only.

(viii) Management is Goal Orientated : Every business organization either small, medium or large, profit making or non-profit making, Governmental or NGOs have their own goals. When the organization achieves its desired goals, it is called success of that organisation. This success depends on proper management of all available resources. A manager takes lots of efforts to achieve these goals. So management is goal oriented.

(ix) Management is Universal : Management principles and theories are equally applicable every where and in every field like business, profession, hospital, education, politics, government administration social activities. These principles are the guidelines to the manager. They are flexible and capable of adaptation to every type of organization.

(x) Management is Group Activity : Management is defined as “getting work done through others” or “with the people in formally organized groups”. The tasks set by the organization is complied by employees, all levels of managers and even with the help of outside parties.

Question 2.
Discuss whether management is an art science or profession.
Answer:
Art:
1. Creativity: Managers must posses the quality of being creative. Every manager should be able to bring innovations in the business. This quality is developed with experience. The more experienced manager can bring about changes according to the situation.

2. Regular Practice: Practice makes a man perfect. This is the rule applied by a manager. The more the experience, the manager will be able to meet any challenge or difficult situation with ease. He is in a position to make the required changes according to the circumstances.

3. Personal Skill: Every manager being an individual is different. A good manager must posses good skills in dealing with human beings. He should use his skill in knowing the problem, allotment of work to employees, give judgment and understanding to deal with various situations in business.

4. Personal Abilities : Every person has different abilities and skills. Manager uses his own abilities to co-ordinate the activities, to guide the people and to achieve their goals.

Science:
1. Systematic Body of Knowledge : Management is not a science like physics, chemistry or biology. It is a science which deals with human beings. Management has a theories and concepts. Various principle of management like unity of command, division of labour, unity of direction are all universally accepted principle. Management follows procedures like collecting data, analyzing and drawing inferences from it. This makes management a science.

2. Use of Scientific Methods of Observation : In science the conclusions are drawn only on the basis of scientific methods of observation. Management also uses systematic methods of data collection, verification and analysis of that collected data and interpretation of data, then a manager takes decisions in the organisation.

3. Cause and Effect Relationship : Science is based on cause and effect relationship. After using specific formulae or their combination, we get particular result in science. Management theories are also based on relationships. Fair and regular salary along with good working conditions motivates people to work hard and to give best results. Whereas, old machineries, techniques, untrained employees may not give good / excepted output to the organization.

Profession:
1. Formal Education : Professionals need formal education. Today’s managers are qualified with management diploma or degrees from various institutes like IIMS, PUMBA etc. They also take formal training from management schools which helps them to work professionally.

2. Code of Conduct : Code of conduct means set of rules and regulations to be followed by practicing in their field. Every profession has their own code of conduct to control the activities. It emphasis on ethical practice in that profession. E.g. Chartered Accountants have to work according to ICAI, Lawyers have to follow the code of conduct framed by Bar Council of India, etc. However for managers there is no such association of managers. Generally managers follow the code of conduct based on customs and traditions.

3. Expertise : A professional is an expert in his field. He has acquired specific knowledge through formal education. He has particular skill of practicing as professional. He becomes an expert due to regular practice in specific field.

4. Registration : Professionals need to register themselves with their associations. For example, Lawyers must get registered themselves with India Bar Council, Chartered Accountants with Institute of Chartered Accountant of India, where as for managers there is no need of such registration with any body. They can take membership of ‘Chambers of Commerce’ which give them membership benefits.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 7 Business Environment Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 7 Business Environment

1. (A) Select the correct option and rewrite the sentence

Question 1.
Business environment has tremendous impact on ………………..
(a) business
(b) government
(c) society
Answer:
(a) business

Question 2.
The new Industrial policy was formulated in ………………..
(a) 1947
(b) 1951
(c) 1991
Answer:
(c) 1991

Question 3.
Changes in ruling government is an aspect of ……………….. environment.
(a) political
(b) technological
(c) economic
Answer:
(a) political

Question 4.
Literacy level is an aspect of ……………….. environment.
(a) social
(b) legal
(c) political
Answer:
(a) social

Question 5.
Privatization implies reduction in the role of ……………….. sector.
(a) public
(b) private
(c) foreign
Answer:
(a) public

Question 6.
Globalization is concerned with ……………….. market.
(a) global
(b) local
(c) rural
Answer:
(a) global

Question 7.
……………….. means linking national economy to the world economy.
(a) Globalization
(b) Privatization
(c) Liberalization
Answer:
(a) Globalization

Question 8.
Environment awareness provides ……………….. signal.
(a) warning
(b) alarming
(c) soft
Answer:
(a) warning

1. (B) Match the pairs

Question 1.

Part A	Part B
(a) Globalization	(1) Profit motive
(b) Privatization	(2) 2006
(c) Liberalization	(3) Borderless economy
(d) New economic policy	(4) Service Motive
(e) Social Environment	(5) Internal factor
	(6) Disinvestment
	(7) Social Values
	(8) 1991
	(9) Abolishing license policy
	(10) GATT

Answer:

Part A	Part B
(a) Globalization	(3) Borderless economy
(b) Privatization	(6) Disinvestment
(c) Liberalization	(9) Abolishing license policy
(d) New economic policy	(8) 1991
(e) Social Environment	(7) Social Values

Question 2.

Part A	Part B
(a) Internal environment	(1) Knowledge of law
(b) Political environment	(2) Taxation policy
(c) Legal environment	(3) Technology
(d) Economic environment	(4) Traditions
	(5) WTO
	(6) Controlled by business
	(7) High cost
	(8) Ideology of political party

Answer:

Part A	Part B
(a) Internal environment	(7) High cost
(b) Political environment	(8) Ideology of political party
(c) Legal environment	(2) Taxation policy
(d) Economic environment	(3) Technology

1. (C) Write a word or a term or a phrase which can substitute each of the following statements

Question 1.
Uncontrollable factors of the business environment.
Answer:
External business environment

Question 2.
The environmental of business that includes customs and traditions, values, social trends.
Answer:
Social environment

Question 3.
The process of transferring ownership of business enterprise, agency or public service from the public service to private sector.
Answer:
Privatization

Question 4.
A boundary less worlds where there would be flow of goods, services, information, capital and people across nation.
Answer:
Globalization.

1. (D) State whether the following statements are True or False

Question 1.
External factors of business environment are controllable factors.
Answer:
False

Question 2.
Business is the product of different environmental factors.
Answer:
True

Question 3.
Business and environment are inseparable parts.
Answer:
True

Question 4.
There is no benefit of globalization on Indian economy.
Answer:
False

Question 5.
New economic policy promoted the liberal economic policy.
Answer:
True

Question 6.
There is no benefit of privatization to Indian economy.
Answer:
False

Question 7.
There is no need of consideration of the business environment factors in business.
Answer:
False

1. (E) Complete the sentence

Question 1.
The term of business environment generally refers to …………………
Answer:
External Environment

Question 2.
……………….. helps the business enterprise for overcoming challenge successfully.
Answer:
Business Environment

Question 3.
Geographical and Ecological factors are included in ………………… Environment.
Answer:
Natural

Question 4.
Literacy is the important part of ………………… Environment.
Answer:
Social

Question 5.
Stability and peace in the country includes in ………………… Environment.
Answer:
Political

Question 6.
Indian political system comprises ………………… vital institutions.
Answer:
three

Question 7.
Limited involvement of government in public sector refer to …………………
Answer:
Privatization

Question 8.
Integration of economy and society through cross country is called as …………………
Answer:
Globalization

1. (F) Select the correct option

Question 1.
In how many type environmental factors can be classified?
(Two / Three / Four)
Answer:
Two

Question 2.
Which factors of Business Environment regard as controllable?
(Internal / External)
Answer:
Internal

Question 3.
Who frames the economic policy of the business?
(Government / Business / Citizen)
Answer:
Government

Question 4.
Which economic system in known as free market economy?
(Socialist / Mixed / Capitalist)
Answer:
Capitalist

1. (G) Correct the underline word and rewrite the following sentence

Question 1.
External factors of business environment are controllable.
Answer:
Internal factors of business environment are controllable.

Question 2.
Internal factors of business are beyond control.
Answer:
External factors of business are beyond control.

Question 3.
Natural resources are related to political environment.
Answer:
Natural resources are related to natural environment.

Question 4.
Privatization helps for global village.
Answer:
Globalization helps for global village.

1. (H) Answer in one sentences

Question 1.
Which factors are included in internal environment?
Answer:
Value system, vision, mission and objective management structure, Internal power relationship, Human resources, Physical facilities, Marketing resources, etc. are the factors included in internal environment.

Question 2.
What are the powers of legislature?
Answer:
Policy making, law making, budget approving, executing control, etc. are the powers of legislature.

Question 3.
Which factor influence the economic condition of the Nation?
Answer:
Economic condition of the nation is based on the gross domestic product, per capital income, availability of capital, growth of foreign trade and strength of capital market.

Question 4.
Who possess the factors of production in socialist economy?
Answer:
In socialist economy Government possess the factors of production.

Question 5.
In which environment are the methods and techniques of production included?
Answer:
Technological environment consist of the method and technical of production.

Question 6.
When did Indian government launch New Economic Policy?
Answer:
Indian government launched New Economic Policy on 24th July, 1991.

Question 7.
What is useful to reduced political interference in industry?
Answer:
Privatisation is useful to reduce political interference in Industry.

Question 8.
How is the boundary less world possible?
Answer:
Boundary less world is possible through Globalisation.

2. Explain the following terms /concept.

Question 1.
Business environment.
Answer:
Business environment refers to the external environment which includes factor outside the business leading to opportunities or threats of the business.

According to Bayard O. Wheeler
“The total of all things external to firm and industries which affect their organization and operations is called as “Business Environment”.

Question 2.
Liberalization.
Answer:

1. Liberalization refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
2. Liberalization helps in achieving a high growth rate, easy availability of goods at competitive rates, high foreign exchange reserve, strong rupee and good industrial relation, etc.

Question 3.
Privatization.
Answer:

1. Privatization refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
2. It implies government Sectors to be sold or given to private individuals to run them.

Question 4.
Globalisation.
Answer:

1. Globalisation means integration of national economy and societies through cross country flows of information, ideas, technologies, good services, capital, finance and people.
2. It also means “boundary less world”.

Question 5.
Social environment.
Answer:

1. Modern business is a social system in itself and forms a part of the larger social system represented by society in general.
2. The class structure of the society affects the business. Such as occupation of the people, their education, income level, social status, attitude towards living, work and social relationship.

Question 6.
Economic environment.
Answer:
Economic environment comprises of economic condition, economic policies and economic system, basic economic philosophy, infrastructure, national income, money supply, saving stages in economic development and trade cycles.

Question 7.
Political environment.
Answer:

1. Government and its policies affects business firms.
2. It includes stability and peace in the country, specific attitudes of elected representative. Ideology of the political parties influences the business organization and attitudes of government officials towards business has an impact on business.
3. It comprises three vital institutions like Legislature, Government and Judiciary.

Question 8.
Internal environment.
Answer:
Internal environment compromises of policies decided by by shareholders, managers, labour unions and employees which can be controlled which helps to make specific, proper understanding in strengthening the business.

3. Study the following case/situation and express your opinion.

(1) The court passes an order to ban polythene bags as the bags are creating many environmental problems which affects the life of people in general.
(2) Society in general is more concerned about quality of life. The government decided to give subsidy to jute industry to promote this business.

Question 1.
Identify the different dimensions of business environment.
Answer:
The different dimensions of business environment are:

1. Legal environment
2. Natural environment
3. Social environment
4. Political environment
5. Economic environment

Question 2.
Comment on it.
Answer:
The different dimensions of business environment are

1. Legal Environment : Court passes order to ban polythene bags.
2. Natural Environment : The Court order will solve environmental problems which affects the life of people in general.
3. Social Environment : Society is concerned about quality of life and better standard of living
4. Political Environment : Government framed a policy to give subsidy to jute industry.
5. Economic Environment : Subsidy to Jute industry will promote business of Jute industry and this will help in economic development.

2. Anchor company manufacturing light tubes increased expenditure on Scientific Research and Development and discovered a technology that made it possible to produce an energy efficient light tubes that lasts at least twenty times as long as standard tubes. It resulted in growth and profitability of the company.

Question 1.
Identify the dimension of business environment.
Answer:
Technological Environment:
Scientific research for innovation in product increased its production and it resulted in growth and profitability of the company. Internal environment of company led to growth and profitability.

Question 2.
State importance of business environment.
Answer:
Business environment helps in determining opportunities and threats, identify firms strengths and weaknesses, continuous learning, image building meeting competition and give direction for growth.

3. Make in India is an initiative launched by the government of India. It focuses on job creation and skill development and it is in twenty five sectors of the economy. Under the initiative, brochures on these sectors and web portal were released. The initiative aims at high quality standards and minimizing the impact on environment .It also seeks to attract foreign capital investment in India.

Question 1.
Identify the dimension of business environment.
Answer:
The various dimensions of business environment referred in the above case are:

1. Political environment
2. Technological environment
3. Economic-environment

Question 2.
Comment on it.
Answer:
Make in India is the policy of government as per its ideology. As it focusing on job creation and skill development in 25 sectors of economy, it convey two values through this initiative. High quality standards and concern for environment. It also aims to attract foreign capital investment in India.

4. Distinguish between the following

Question 1.
Social Environment and Economic Environment.
Answer:

	Social Environment	Economic Environment
(1) Meaning	Social environment includes customs, traditions, values, buying habits, tastes, etc.	Economic environment comprises of economic condition, economic policies and and economic system.
(2) Factors	It includes factors such as social aspects, social trends, social values and traditions.	It includes factors like economic condition, economic policies and economic system.
(3) Supplement to	It is supplemented by cultural environment like cultural factors, values, beliefs, etc.	It is supplemented by political environment as it is influenced by political decisions or events taken by Government.
(4) Impact on business	It helps to analyze the changing social trends, taste of different social groups which helps businessmen to know the opportunities and threats.	Changes in economic policies like agricultural policy, monetary policy, etc. lead to changes in economic system and planning which helps businessmen to make changes on timely basis.
(5) Purpose	It helps to know the-needs of customer and satisfy the demand. E.g. Today health and fitness trend has created demand for products like gym, organic foods etc.	It helps in forecasting market situations and thereby making suitable business plans E.g. Stock market fluctuations affects management practices in a business Enterprise.
(6) Nature	It is dynamic in nature. Changes in trends, values, growing awareness among different social groups affects the social environment.	It is multi dimensional in character. Agriculture, infrastructure, national, per capita income, price level etc. affects the economic environment of in a country.

Question 2.
Political Environment and Legal Environment.
Answer:

	Political Environment	Legal Environment
(1) Meaning	In a country, the political system, constitutional provision, party system, events taking place time to time determines the political environment.	In a country, business can be started, regulated, controlled, expanded within legal framework of a country determines legal environment.
(2) Factors	Political stability, peace in the country, specific attitudes of elected representative, etc are the factors which affects political environment.	Various laws are implemented from time to time with amendments in order to control and direct the business.
(3) Inter relation between environment	Political environment and economic environment are closely connected with each other.	Legal environment and regulatory environment goes together hand-in-hand in modern business environment.
(4) Impact on business	Ideology of the political parties influences the business organization.	Provides control, direction, expansion to the business organization.
(5) Purpose	Political stability creates strength, confidence to various interest groups and investors in long term projects.	Separate laws implemented time to time to safeguard and protect the interest of various groups such as busines’s organization, workers, consumers, etc.
(6) Effect of changes in environment	Political instability effects the business organisation adversely. Business policies are amended due to political issues, events etc. prevailing in country.	Excessive controls, implementation of laws, rules and regulations may create problem in overall development of business organizations.

Question 3.
Liberalization and Privatisation.
Answer:

	Liberalisation	Privatisation
(1) Meaning	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.
(2) Aim	It aims to bring flexibility in business operations by creating environment for growth and expansion.	It aims at promoting efficiency, increase productivity, profitability.
(3) Need	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.	To achieve quick and logical business decisions aimed at commercial success of organisation.
(4) Measures adopted	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MOU.
(5) Benefits to Host Company	It results in, high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.	It results in profitability, production of superior quality products and services, self motivation, etc.
(6) Benefits to Consumers / Traders	Optimum use of resources available at global level, easy availability of goods at competitive rates.	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.
(7) Positive Effect	Removing restriction on taxations, abolishing industrial licensing system leads to expansion and growth of new business opportunities.	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.
(8) Adverse Effect	It leads to social problems like urbanization and industrialisation, closure of domestic firms due to liberalised imported products, etc.	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.
(9) Inter Relationship	Liberalisation leads to privatisation and globalization.	Privatisation is a part of the process of globalization.

Question 4.
Globalization and Liberalization.
Answer:

	Globalization	Liberalization
(1) Meaning	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.	It refers to the process of eliminating unnecessary controls and restrictions for smooth functioning of business.
(2) Aim	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.	It aims to bring flexibility in business operations by creating environment for growth and expansion.
(3) Need	To overcome the problem of declining domestic demand and to ensure free trade.	To reduce taxation, controls on foreign exchange, attracting foreign investment, etc. thereby to compete with other companies at international level.
(4) Measures adopted	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.	Reduction in tariffs, reformation of financial system, abolishing industrial licensing system, etc.
(5) Benefits to Host Company	It results is expansion of investment. It promotes foreign trade and brings foreign exchange	It results in high growth rate, easy availability of goods at competitive rates, good industrial relation, etc.
(6) Benefits to Consumers / Traders	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.	Optimum utilisation of resources at global level easy availability of goods at competitive rates.
(7) Positive Effect	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.	It results in removing restriction on taxations, abolishing industrial licensing system leading to expansion and growth of new business opportunities.
(8) Adverse Effect	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.	It leads to social problems like urbanization and industrialisation. Closure of domestic firms due to liberalised imported products.
(9) Inter Relationship	Globalisation includes liberalisation and privatisation.	Liberalisation leads to privatisation and globalisation.

Question 5.
Privatization and Globalization.
Answer:

	Privatization	Globalization
(1) Meaning	It refers to reduce the involvement of state or public sectors by involving of private sector in economic activities.	It refers to integration of national economy and societies through cross country flows of information, ideas technologies, goods, services capital, finance and people.
(2) Aim	It aims at promoting efficiency, increase productivity, profitability.	It aims at promoting world trade and economic growth by integrating technologies, goods, services, people, etc.
(3) Need	To achieve quick and logical business decisions aimed at commercial success of organisation.	To overcome the problem of declining domestic demand and to ensure free trade.
(4) Measures adopted	Reduction in number of industries reserved for public sector, disinvestment of shares, improvement in performance through MoU.	Allowing Foreign Direct investment, approving foreign technology, amendment of patent laws, etc.
(5) Benefits to Host Company	It results in profitability, production of superior quality products and services, self motivation etc.	It results is expansion of investment. It promotes foreign trade and brings foreign exchange
(6) Benefits to Consumers / Traders	Entry of private sector results to competition thereby providing high quality goods and services at lower prices.	Consumers gets variety of goods as option to be purchased foreign technology is adopted by traders thereby increasing growth of production.
(7) Positive Effect	Improved performance, high quality goods and services in market. Timely prompt decision with more efficiency.	It results in increase in foreign trade, inflow of foreign trade, inflow of foreign technology and capital, which increases employment opportunities, business growth, etc.
(8) Adverse Effect	Growth of monopoly, inequality of income, lack of social responsibility, etc will hamper the social order of the economy.	It leads to exploitation of home market by foreign companies. Capital intensive techniques leads to reduction in job opportunities.
(9) Inter Relationship	Privatisation is a part of the process of globalization.	Globalisation includes liberalisation and privatisation.

5. Answer in brief.

Question 1.
State any four features of Social environment.
Answer:
The four features of social environment are as follows:

1. Customs and Traditions : This decides the celebration of various festivals like Diwali, Id, Christmas and its effect on business.
2. Social Institutions and Groups or Social Aspects: Literacy level, educational system, cultural heritage standard of living of the various groups of people affect the social environment of business.
3. Social Values : Cultural and social justice, national integration affect the business. Beliefs also help the business to meet the customer needs.
4. Social Trends : Now a days people have become health conscious and therefore there is a sale of various types of goods like organic food, sugar free products etc.

Question 2.
Describe any two factors of economic environment.
Answer:
Economic environment has direct influence on business.

1. The Economic System : Economic activities depend upon the nature of economic system which are:
   (a) Capitalist economy : e.g. U.S.A. (b) Socialist economy : e.g. China (c) Mixed economy : e.g. India
2. Economic Policies : The various economic policies of the government has a direct influence on economic environment. For e.g. import and export policy, educational policy, agricultural policy, industrial policy, foreign investment policy, etc.
3. Economic Condition : The stage at which the growth stands, employment rate, rate of interest, etc. All those determine development of the country.

Question 3.
State any four features of globalization.
Answer:
Features of globalization are as follows:

1. Purchase and sale of goods and services from one country to another.
2. Opportunity to start and do business in any part of the world.
3. Reduction in gap between domestic and international market.
4. Possibility of quick and rapid economic development.
5. Enhances the opportunity to exchange new ideas and technology across the nations.

Question 4.
State any four reasons of the need for privatisation.
Answer:
There is need for privatisation because of the following reasons:

1. To bring more efficiency in the working of business firms.
2. To reduce political interference in the working of the firms and companies.
3. To improve the quality of products
4. To bring efficiency in management of the organization.
5. To create discipline in capital market.

6. Justify the following statements.

Question 1.
External factors of business environment are beyond control.
Answer:

1. Factors which influences the business policy of an organization can be divided into internal and external factors.
2. Business has no control over external forces.
3. These are those factors which provide opportunities or pose threats to the organization.
4. Factor such as social customs, values, economic policies, technological development, political ups and down, legislation together constitute political, social, economic, legal and technological diversions of business, hence, they are not in the hands of business organizations.
5. Internal factors are controllable and business unit can modify their plans, policies, etc.
   (Students can give example of social, political, legal environment to justify further)

Question 2.
Business firm should be aware of the changes in society.
Answer:

1. The success of every business depends on adopting itself to the environment in which it functions. Modern business is rightly termed as socio-economic activity.
2. There is reciprocal relationship between business and society.
3. Business is affected by class structure of the society which depends upon factors such as occupation its own culture, income, etc.
4. Every society depends its own culture, customs, tradition, values, ethics, etc. social trends are also changing fast. For e.g. large number of people are eating fast food and go to gyms. So many fast food outlets and gyms are coming up in towns and cities.
5. Social values and traditions such as celebration of Diwali, Eid, Christmas also affect business.

Question 3.
Political stability builds up confidence among business people.
Answer:

1. Business firms are affected by the government and its policies.
2. Political force decide the nature of business, device performance and projects for development.
3. Political environment includes stability and peace in the country. Political stability builds confidence among different interest groups and investors because long term policies and projects will be started by the government and if the government keep on changing every six months or in a year.
4. This will impact long term decisions of development for the country, because political parties identify forms their decision making, hence if a government gets its full tenure of 5 years, it can complete its projects and plans and win the confidence of the people.

Question 4.
Economic environment has direct influence on business.
Answer:

1. Economic environment consists of economic condition, economic policies and economic system along with basic economic philosophy, infrastructure, national income, money supply etc.
2. Economic condition is based on GDP, per capital income, availability of capital, growth of foreign trade and capital market.
3. Where as economic polices framed by the government from time to time changes with changes in the government.
4. Every business has to function within the policy framework and responds to changes accordingly.
5. This relates to Industrial Policy, monetary policy, foreign investment, EXIM policy education policy etc. Also the scope of private business and government regulation depends on the economic system such as capitalist economy, Socialist or mixed economy which impacts business decisions.

Question 5.
Social trends provide business opportunities.
Answer:

1. Society and business are inter-dependent.
2. Class structure such as occupation,education,income level social status, attributes etc impact business decisions.
3. Social trends are any type of activity that is practised in the society as a whole.
4. Trends can be for short period or long lasting. As technology progresses the changes in social trends do changes.
5. Companies use their ability to anticipate the social change as part of their business marketing policy, to grab the business opportunities.

Question 6.
An adequate knowledge of rules and regulations is essential for better business performance.
Answer:

1. Any business in a country can be started, regulated and controlled within the legal framework of a country.
2. Separate set of laws are framed by all countries to control and direct the business affairs.
3. Knowledge of law, rules and relegations helps the business managers to take prompt decision in making business policies.
4. Various laws are implemented for influencing the business, protect and safeguard the business, as well as the consumers.

7. Attempt the following

Question 1.
Importance of business environment.
Answer:
Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(ii) Opportunities and Threats : Study of business environment enables a business enterprise to visualise future problems that can arises as also future business prospects in advance. Deriving benefit from honourable business opportunities is possible as also it can face the problems boldly. Awareness of environment help an organisation to take advantage of such opportunities instead of loosing them to competition. It helps organisation to identify various threats on time and serves as an early signal.

(iii) Competition : Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies and strategies for the future course of action.

(iv) Utilization of Resources Optimally : Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.

(v) Strength and Weakness Identification : With the change of technology and global development it helps to analyze individual strength and weakness of the business understanding the challenges, appropriate decisions are taken on timely basis.

(vi) Knowledge : Study of environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enable the development of a formidable business wait.

(vii) Image Building: Environment study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, business can create goodwill and reputation for itself.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Social Environment.
Answer:
Business is a economic and social activity. It has to produce goods according to the requirement of the customers. Satisfying customer is the basic need of business. Therefore, while manufacturing or producing goods, business has to take into consideration social factors like traditions, customs, education, habits, values, life styles, thinking and earnings of the people of country. Changes in social environment are a must and management has to take into consideration these factors which determines the following aspects.
1. Social Aspect : Literacy level, educational system, tradition and customs, transition of labour, etc. are the important aspect of social environment. It helps to analyze the needs of the people and accordingly the business opportunities are identified.

2. Social Trends : Business practices and procedures must be in tune with the social beliefs. Growing number of working women and changing life style have increased the demand for household appliances in India.

3. Social Values : Cultural and social values, (social justice, national integration, etc.), family organization and caste structure, social institutions and groups, are taken to consideration while making practices and procedures of business.

4. Traditions : Customs and traditions. (Diwali, Id, Christmas, etc.) also has an effect on the business. The businessmen have to be more responsible towards the demand of the people accordingly.

Question 3.
Economic environment.
Answer:
1. Economic environment comprises of economic condition economic policies and economic system which are the important factors influencing development and trade cycles, national income, etc.

2. Economic Condition : If refers to present state of economy of a country or region based on gross domestic product, per capita income, availability of capital, etc.

3. Economic Policies: Government frames economic policies time to time influencing the business activities. In order to controls the business in the interest of the politics, e.g. – Industrial policy, monetary policy, foreign investment policy etc.

4. Economic System: It refers to the scope of private business and extent of government regulation on economic activities determines the nature of economic system i.e. – capitalist social or mixed economic.

Question 4.
Political Environment.
Answer:
Political dimensions or environment includes the country’s political system or its ideologies or condition i.e. dictatorship or democracy or communist government or socialistic government. It indicates the general stability and peace in the country and attitude of the elected government representatives towards business.

Political stability builds up confidence among business people to invest in long-term projects for the growth of the economy. In India we have adopted mixed economy and growth rate often remains moderate. Indian political system comprises three vital institutions like Legislature, Government and Judiciary.

1. Legislature : legislature is very powerful force that decides the nature of business, programmes, project, for the development of the country through policy making, law making, budget approving, etc.
2. Government : The framework of policies are implemented by government which effects the business organization to under take the responsibilities of the society.
3. Judiciary : It determines the work of executives to carry out the policies in a systematic manner, in order to settle relationship between citizens and the government.

Question 5.
Impact of new economic policy on business and industry.
Answer:
(A) Introduction : On July, 1991, the Government of India announced its New Industrial Policy. It brought about radical changes in the Economic Policy. The three main pillars of Economic reforms are L – P – G (Liberalisation, Privatisation and Globalisation). The main purpose was to modernise India’s Industrial system, implement new techniques, remove unproductive control, encourage private investment and integrate our economy with the global economy.

(B) Impact of changes in Government Policy on Business and Industry:
1. Budgetary Support: The Central Government’s budgetary support for financing the public sector outlays has declined over the years. In order to survive and grow, PSUs have to be more efficient and self sufficient so as to compete with private sector.

2. Increase in Competition : Competition for Indian firms has increased due to the changes in the rules of industrial licensing and entry of foreign firms, for e.g. Service Industries like Insurance, Banking, Telecommunications, Hotel and Airlines, etc. which were earlier in the public sector are now facing competition from private players such as Bajaj Alliance, Max Life, Star Life, Insurance, low cost airlines like Indigo, etc.

3. New Trade Policy : The new trade policy has helped the Indian Firms to enter into foreign markets and earn the foreign exchange required for importing raw materials, spare parts and components they needed for keeping their production lines going.

4. Demanding Customers : Today’s market is customer oriented as customers are well informed and there is growing awareness among them about the malpractices adopted by traders, consumer rights, consumer education and so on. Moreover, competition in the market gives the customer wider choice in purchasing good quality product and makes customer more demanding.

5. Need for Human Resource Development : New technologies require expert knowledge and skill in various fields. Moreover, newer markets made it compulsory for companies to acquire trained personnel with high degree of competence and commitment. Hence, there is a need for well trained staff and thereby develop human resources.

6. Change in Technological Environment : Increased competition and advancements in the field of technology have forced the business units to develop new ways to survive and grow in the market and keep pace with latest technological developments.

7. Change in the Concept of Marketing : Earlier business organisations were production oriented but due to fast changing business world it has now become market oriented. This changed to societal concept where needs of society are kept in mind by the producers. The latest is relationship marketing whereby it is not only producing goods for consumers but maintaining long term relationship with them so as to sustain them.

8. Answer the following

Question 1.
What is business environment? Explain the important of business environment.
Answer:
(A) Business Environment:
A business is defined as buying and selling activity to generate income. Business consists of several interrelated and interacting elements. Business is an economic and social activity of the society. Society is an integral part of the business and its interest cannot be ignored.

Business environment consists of economic, social, legal, technological and political situation. Business obtains money, material, machinery and manpower and other resources from environment.
According to B. O. Wheeler – Business environment is “the total of all things external to firms and individuals which effect their organisation and operations”.
According to Oxford English Dictionary – “Business Environment refers to those aspects of the surroundings of a business enterprise which influence or effect its operations and determine its effectiveness.”
Basically business environment consists of all internal and external factors that influence the nature and scope of business activity.

(B) Importance of Business Environment:
(i) Flexible and Dynamic : Changing environmental factors should be appraised from time to time. So as to keep the business flexible and dynamic. The new opportunities and threats created by the environment can be appraised by the corporate planners to make the most of it. Turbulent market conditions, less brand loyalty, more demanding customers and intense global competition are some of the images of todays business environment. In order to cope with these significant changes, organization must understand and examine the environment and develop suitable course of activity.

(ii) Opportunities and Threats : Study of business environment enables a business enterprise to visualise future problems that can arises as also future business prospects in advance. Deriving benefit from honourable business opportunities is possible as also it can face the problems boldly. Awareness of environment help an organisation to take advantage of such opportunities instead of loosing them to competition. It helps organisation to identify various threats on time and serves as an early signal.

(iii) Competition : Understanding the business environment helps to obtain qualitative information which in turn is useful in formulating business plans, policies and strategies for the future course of action.

(iv) Utilization of Resources Optimally : Optimum use of available resources for the business enterprise is possible by studying the business environment. It enables the enterprise to take full advantage of the policies implemented by the government.

(v) Strength and Weakness Identification : With the change of technology and global development it helps to analyze individual strength and weakness of the business understanding the challenges, appropriate decisions are taken on timely basis.

(vi) Knowledge : Study of environment is necessary to discover and exploit new opportunities for business expansion broad strategies and long term planning enable the development of a formidable business wait.

(vii) Image Building: Environment study makes it possible for the business to expand and to make it acceptable and agreeable to different social groups. By fulfilling its social obligations towards different groups of society, business can create goodwill and reputation for itself.

(viii) Adaptability to Socio-Economic Changes : A business organization needs to show its keen intentions towards adapting to the socio-economic changes.

Question 2.
Explain the new economic policy in details.
Answer:
The new economic policy was introduced by the Government on 24th July, 1991, on the failure of the earlier Industrial policy prevailing in India.
The new policy was known as LPG i.e. Liberalisation, Privatisation and Globalisation. This was the brain child of the Prime Minister P. V. Narasimha Rao and the finance minister Dr. Manmohan Singh.

(i) Liberalisation:
It means to liberate the industry, trade and commerce from the unnecessary restrictions and regulations that curtailed the freedom of enterprise.
Liberalisation has helped the Indian economy to open up and allowed the entry of foreign business in India. The interaction with the world has happened after the 1991 policy.

Liberalisation policy has brought about the following measures:

1. Encouraging Direct Foreign Investment.
2. Wide Choice of products and services enjoyed by the customers.
3. Reduction in control of Foreign Exchange.
4. Cost of products, price and quality in tune to the global markets.
5. Changing the approach towards industrial sickness.
6. Production of quality products to meet the competitive markets.
7. Freedom to choose the Scale of business.
8. Reduction in tax rates, tax holidays, etc.
9. Encouraging new technology, technological upgradation and foreign collaboration.
10. I mport of machinery, goods and other services on easy terms.
11. Abolishing licensing system for most of the industries.
12. Opening telecommunication sector.

Liberalisation has thus made the country achieve high growth rate, made the rupee stronger and helped good industrial relations.

(ii) Privatisation:
Privatisation is a process of transferring ownership of business, enterprise agency or public service from the public sector (government) to the private sector.
Features of Privatisation are:

1. To provide variety of business units to consumers.
2. To ensure less political interference in running the business.
3. To bring about more accountability.
4. To reduce labour problem.
5. To bring about a market oriented approach.
6. To make competition more intense.
7. To bring about more efficiency.
8. To maintain capital market discipline.

The government of the country has followed a disinvestment policy.

Disinvestment means:

1. When there is a sale of a public undertaking in full or part of private sector without transferring the ownership to private sector.
2. The management and control is transfered to public undertaking e.g. Maruti Udyog Ltd., SAIL, ONGC, etc.
3. Improvement in the performance of the industries through Memorandum of Understanding (MoU). Privatisation helps the private sector to be efficient result oriented, productive and active. Capitalist countries like America and Japan have followed privatisation.

(iii) Globalisation:
When the operation and organization of business activities are on a global scale, it is called as Globalisation. It is integration of business activities by considering the entire world is one market.

In short globalisation means a boundary less world, where there would be a free flow of goods, services, information, capital and people across nations. Globalisation has effect on socio-economic and political sphere of life.

Features of Globalisation:

1. Buying and selling goods from/to any country is possible due to globalisation.
2. Establishing manufacturing, production and distribution facilities in any part of the world.
3. Freedom to set up’ and operate business in any part of the world.
4. Render faster economic development of any country.
5. Exchange of new ideas and technology across nations.
6. Narrowing differences between domestic and international market.
7. Direct Foreign private participation in the industrial development of any country.

Thus it could be seen that globalisation is an evolutionary concept. Through the policy of 1991 the government moved the country to this globalisation pattern.

Balbharti Maharashtra State Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 6 Institutes Supporting Business Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 6 Institutes Supporting Business

1. (A) Select the correct option and rewrite the sentence

Question 1.
Small Industrial Development Bank of India (SIDBI) was established in …………………
(a) 1989
(b) 1990
(c) 1991
Answer:
(b) 1990

Question 2.
SIDBI was established under the Small Industrial Development Bank of India Act, …………………
(a) 1988
(b) 1992
(c) 1996
Answer:
(a) 1988

Question 3.
………………… is Principal Financial Institution for Promotion, the Micro, Small and Medium Enterprise (MSME) sector in India.
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(c) SIDBI

Question 4.
………………… came into existence on July 12, 1982
(a) NABARD
(b) KVIC
(c) SIDBI
Answer:
(a) NABARD

Question 5.
A Committee to Review the Arrangements for Institutional Credit for Agriculture and Rural Development (CRAFICARD) was constituted under the Chairmanship of …………………
(a) Kothari
(b) Shivaraman
(c) Rangrajan
Answer:
(b) Shivaraman

Question 6.
All India Khadi and Village Industries Board was set up in the year …………………
(a) 1953
(b) 1949
(c) 1948
Answer:
(a) 1953

Question 7.
In April ………………… KVIC was established.
(a) 1955
(b) 1953
(c) 1957
Answer:
(c) 1957

1. (B) Match the pairs

Question 1.

Part A	Part B
(i) SIDBI	(a) 1944
(ii) NABARD	(b) 1990
(iii) World Bank	(c) 1988
(iv) Grameen Bank	(d) 1983
(v) KVIC	(e) 1982
	(f) 1957
	(g) 1932
	(h) 1956
	(i) 1912
	(j) 1960

Answer:

Part A	Part B
(i) SIDBI	(b) 1990
(ii) NABARD	(e) 1982
(iii) World Bank	(a) 1944
(iv) Grameen Bank	(d) 1983
(v) KVIC	(f) 1957

1. (C) Give one word/phrase/term

Question 1.
Life blood of business.
Answer:
Finance

Question 2.
Principal financial institution of promotion of the Micro, Small and Medium Enterprise (MSME) sector in India.
Answer:
SIDBI

Question 3.
Advisor and mentor for MSMEs
Answer:
SIDBI

Question 4.
Wholly owned subsidiary of IDBI was set up in July 1999, is providing venture capital.
Answer:
SIDBI Venture Capital Ltd. (SVCL)

Question 5.
Digital initiative by SIDBI launched on March, 17th, 2016
Answer:
SIDBI Startup Mitra,

Question 6.
The apex institution for agricultural finance.
Answer:
NABARD

Question 7.
The Bangladeshi economist, known as the Father of Micro-finance.
Answer:
Dr. Muhammad Yunus

Question 8.
An international organization dedicated to providing finance, advice and research to developing nations.
Answer:
World Bank

1. (D) State True or False

Question 1.
Small Industrial Development Bank was established on 2nd April, 1990.
Answer:
True

Question 2.
SIDBI has its head office at Mumbai.
Answer:
False

Question 3.
SIDBI is not working towards sustainable development of MSME’s in India.
Answer:
False

Question 4.
SIDBI, Startup Mitra scheme is launched on March 17th, 2016.
Answer:
True

Question 5.
NABARD came into existence on July 12, 1982.
Answer:
True

Question 6.
The NABARD has been recognised as the apex institution for financing large scale industries.
Answer:
False

Question 7.
KVIC is actively working for planning, promotion and production of Khadi as well as in setting up of village and rural industries of India.
Answer:
True

Question 8.
Dr. Muhammad Yunus is known as the ‘Father of Rural Banking’.
Answer:
False

Question 9.
Self Help Group is a large group of homogeneous individuals.
Answer:
False

1. (E) Complete the sentences

Question 1.
The lifeblood of a business is …………………
Answer:
Finance

Question 2.
Micro, Small and Medium Enterprises (MSME’s) are focused domains for …………………
Answer:
SIDBI

Question 3.
SIDBI takes structural initiatives to resolve the financial and non-financial hurdles of …………………
Answer:
MSMEs

Question 4.
SIDBI is established to provide short-term and long-term finance to
Answer:
MSME’s

Question 5.
‘SIDBI Startup Mitra’ launched on …………………
Answer:
March 17th, 2016

Question 6.
To improve accessibility of credit and handholing services to MSME’s, SIDBI has launched the …………………
Answer:
Udyami Mitra

Question 7.
NABARD came into existence on …………………
Answer:
July 12th, 1982

Question 8.
Khadi and Village Industries Commision was set up in …………………
Answer:
1953

Question 9.
A statutory body of Khadi and Village Industries Commission (KVIC) was created with a special Act of …………………
Answer:
Parliament

Question 10.
The Grameen Bank in Bangladesh was set up in …………………
Answer:
October 1983

Question 11.
The father of Micro finance is …………………
Answer:
Dr. Muhammad Yunus

Question 12.
The World Bank came into existence on …………………
Answer:
1944 Bretton Woods Conference

Question 13.
The headquarter of World Bank is in …………………
Answer:
Washington D.C.

Question 14.
Dr. Muhammad Yunus jointly won the Noble Prize in …………………
Answer:
2006.

1. (F) Select the correct option

Question 1.
(1953, 1944, 2nd April 1990, Oct. 1983, 12 July 1982)

Part A	Part B
(i) SIDBI	—————
(ii) ————-	NABARD
(iii) KVIC	—————
(iv) —————	World Bank
(v) Grameen Bank	—————

Answer:

Part A	Part B
(i) SIDBI	2nd April 1990
(ii) 12 July, 1982	NABARD
(iii) KVIC	1953
(iv) 1944	World Bank
(v) Grameen Bank	Oct. 1983 Grameen Bank

1. (G) Answer in one sentence

Question 1.
What is SIDBI?
Answer:
SIDBI is Small Industrial Development Bank of India, which takes initiative to resolve the financial and non-financial hurdles of MSMEs.

Question 2.
What do you mean by NABARD?
Answer:
NABARD is a National Bank for Agriculture and Rural Development, which was formed with an objective to provide and regulate credit and other facilities for the development of agriculture, small scale industries, cottage village industries, handicraft and other rural crafts and allied economic activities.

Question 3.
What is meant by Grameen Bank?
Answer:
Bank which gives small loans to landless poor women to promote self employment is called Grameen Bank.

Question 4.
What is SHG?
Answer:
SHG is a small group of homogeneous individuals who come together with the objective creating common fund through savings and meet members emergency needs by providing collateral free loan.

Question 5.
What do you mean by World Bank?
Answer:
The World Bank is an international organization dedicated to provide finance, advice and research to developing nations.

Question 6.
WhatisMSME’s
Answer:
MSME’s are Micro, Small and Medium Enterprises, which play an important role in promoting entrepreneurship among women and economically weaker section in the country.

Question 7.
What is Udyami Mitra?
Answer:
‘Udyami Mitra’ is the digital portal launched by SIDBI, to improve accessibility of credit and handholding services to MSMEs.

1. (H) Correct the Underlined word and rewrite the following sentences

Question 1.
SIDBI is established to provide only long-term finance to the MSME’s.
Answer:
SIDBI is established to provide short-term and long term finance to the MSME’s.

Question 2.
The NABARD has been recognised as the apex institution for industrial finance.
Answer:
The NABARD has been recognised as the apex institution for Agricultural finance.

Question 3.
Khadi was symbol and the spirit of self reliance in post independence India.
Answer:
Khadi was symbol and the spirit of self reliance in pre independence India.

Question 4.
Self help group are based on the fundamental principle of to earn profit.
Answer:
Self help group are based on the fundamental principle of ‘helping each other’ and “unity is strength”.

Question 5.
World Bank provides high interest loan.
Answer:
World Bank provides low interest loan.

2. Explain the following terms/concepts

Question 1.
Udyami Mitra.
Answer:

1. This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s.
2. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches.
3. The entrepreneurs can select and apply for preferred banks.
4. They can select suitable branch, track their application status and avail multiple loan benefits.

Question 2.
KVIC.
Answer:

1. KVIC was established to take over the work from All India Khadi and Village Industries Board.
2. KVIC is working for planning, promotion and production of Khadi and setting up of village and rural industries in India.
3. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas.

Question 3.
World Bank.
Answer:

1. The World Bank is an international organization formed to provide finance, advice and research to developing nations.
2. It was created at the 1944 Bretton Woods Conference along with the International Monetary Fund (IMF)
3. The head quarter of World Bank is in Washington D.C.
4. It provides financial as well as technical assistance to the member countries of the world.
5. It comprises of two institutions namely – the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).

Question 4.
Self Help-Groups
Answer:

1. Self Help Group (SHG) is a voluntary association.
2. It is a small homogeneous group of people who come together with the objective of creating common fund through small savings and meet members emergency needs by providing collateral free loan at reasonable rate.
3. Many SHG are linked to banking institutions for getting micro-credit.
4. All decisions are taken collectively by SHG members.

Question 5.
Collateral Free Loan
Answer:

1. Collateral free loan are SHGs small loans provided to the poor individuals for undertaking self-employment projects.
2. Loans are given on the principle of mutual trust and either minimum or no documentation.
3. The rate of interest generally charged are higher than the interest charged by banks.
4. It saves the poor individuals from the clutches of local money lenders.

3. Study the following case/situation and express your opinion

Anand completed his MBA and wants to start a Small Scale Industry. He is good at using technology. He has very good business idea in mind and looking for a lender or investor.

Question 1.
Who is promoter or businessman in this case?
Answer:
A person who gets the idea of starting the business enterprise is called as promoter or businessman. In the above case Anand is promoter or businessman.

Question 2.
What is full form SSI?
Answer:
The full form of SSI is Small Scale Industry.

Question 3.
Suggest digital ways to find lender or investor for this initiative
Answer:
SIDBI has started Digital initiatives / Digital ways to find lender or investor. For this initiative I can suggest the following ways:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks on one platform. It helps in financing and development of new entrepreneurs.

(b) Udyami Mitra:
This is a portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status and avail multiple loan benefits.

4. Answer in brief

Question 1.
State any four features of NABARD.
Answer:
Features of NABARD:
(i) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(ii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iii) Provides Credit for Rural Development : It takes initiatives in the development and promotion of different activities in rural area by providing funds to State governments. It also provides refinancing for upliftment of weaker section of the society. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(iv) Financing Rural Industries : It provides refinancing facility to small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 2.
State four objectives of KVIC.
Answer:
Objectives of KVIC :
(i) Development of Khadi and Other Village Industries : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. It identifies the potential for the development of rural industries and undertakes the valuable task of promoting and developing locally operating village enterprises.

(ii) Special Objective : KVIC has a special objective of providing employment. It gives emphasis on utilizing the locally available raw materials and human skills to generate non-farm employment opportunities in the rural areas. It plays a role of co-ordinator with other agencies engaged in rural development.

(iii) Economic Objective : KVIC is actively working for planning, promotion and production of khadi as well as in setting up of village and rural industries in India. KVIC receives fund from the Ministry of MSMEs for effective implementation of various programs and schemes. It helps in producing saleable articles which helps the economic development of the country.

(iv) Wider Objective : It has a wider objective of creating self-reliance amongst the poor and building up of a strong rural community spirit.

Question 3.
Write any four features of World Bank.
Answer:
Features of World Bank:
(i) Organization and Structure : The organization of bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members. All the powers of the bank are vested in the Board of Governors which is the supreme policy making body of the bank. The board consists of one Governor and an Alternative Governor appointed for five years by each member country. The Board of Executive Directors consists of 21 members, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest of the 15 members are elected by the remaining countries.

(ii) Goals : The World Bank Group has two goals to be achieved by 2030.

• To end extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
• To promote shared prosperity by fostering the income growth of the bottom 40% for every country.

(iii) Innovative Knowledge Sharing : World Bank offers support to developing countries through policy, advice, research and analysis and technical assistance. Analytical works of World Bank often helps developing countries. It also helps in capacity development of the developing countries. World Bank also sponsors, host or participates in many conferences and forums on issues of development.

(iv) Social Development : Social Development focuses on the need to “put people first” in development process. The World Bank work with governments, communities, civil societies, the private sector and the marginalized for the cause of social development. Social Development promotes economic growth and leads to higher quality of life.

Question 4.
Describe any two features of Self Help Groups.
Answer:
Features of Self Help Groups:
(i) Democratic Set up : SHG is group of the members, for the members and by the members. Every member of the group actively participates in the functioning of SHGs. Members are responsible for their own future by organizing themselves into SHGs. They elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(ii) Collateral Free Loan : SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation. Generally the rate of interest are higher than the interest charged by banks. It saves the poor individuals from the clutches of local money lenders. The repayment of loans is ensured timely as all members of group are responsible for collecting repayment amount from the members who borrowed the loan.

Question 5.
Describe any two features of SIDBI.
Answer:
Features of SIDBI:
(i) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It is principal financial institution for micro, small and medium sector units. It also co-ordinate the functions of institutions engaged in financing MSME’s. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs.

(ii) Advisory Function : SIDBI also works as advisor and mentor of MSMEs. It helps MSMEs in expanding marketing channels for the products both in domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

5. Justify the following statements

Question 1.
SIDBI acts as an institute for promotion of MSMEs
Answer:

1. There are many efforts taken by SIDBI to emerge as a brand which is customer friendly towards MSME’s.
2. It facilitates and strengthens credit flow to MSME’s.
3. It identifies financial and developmental gaps in the MSME’s and take efforts to resolve the same.
4. SIDBI has dedicated its resources towards evolution of a vibrant ecosystem.
5. SIDBI has taken steps for technological upgradation and modernization of existing MSME’s
6. Thus, we can say that SIDBI acts as an institute for promotion of MSME’s.

Question 2.
SIDBI provides different types of financial and non-financial services through its subsidiaries.
Answer:
The following are the subsidiaries of SIDBI that provides financial and non-financial services:
(i) SIDBI Venture Capital Ltd. provides venture capital to emerging sectors, such as life sciences, biotechnology, pharmaceuticals, engineering and information technology.

(ii) Credit Guarantee Fund Trust for Micro and Small Enterprises is a trust to implement the Credit Guarantee Scheme through which credit facilities are extended without third party guarantee on collateral security by eligible lending banks/financial institutions.

(iii) SME Rating Agency of India Ltd. was set up by SIDBI, Dum & Brandstreet Information Services India Pvt. Ltd. and several public, private and foreign sector banks as an MSME. It is dedicated third-party rating agency and provide comprehensive, transparent and reliable ratings and risk profiling.

(iv) India SME Technology Services Limited is a platform where MSME’s can tap global opportunities for acquiring new emerging technologies and establish business collaborations.

(v) India SME Asset Reconstruction Company Ltd. is an asset reconstruction company. It acquires non-performing assets and try to resolve them through its innovative mechanisms. It specially focus on the non-performing assets of MSME sector.

(vi) Micro Units Development and Refinance Agency is established for ‘funding the unfunded’ micro enterprises in the country.

(vii) Thus, SIDBI provides different types of financial and non-financial services through its subsidiaries.

Question 3.
The NABARD has been recognized as the apex institution for agricultural finance.
Answer:

1. India is an agricultural country.
2. Agriculture and its allied activities act as main source of livelihood for most of the rural population of India.
3. Government of India is aware about the need of boosting institutional credit in rural economy.
4. The RBI constituted a Committee to review the arrangements for Institutional Credit for Agricultural and Rural Development under the Chairmanship of Shri B. Sivaram, to take review of agricultural credit in India.
5. The recommendation of the Committee was accepted and National Bank for Agriculture and Rural Development came into existence on July, 12 1982 under the special Act of the Parliament, with an objective of providing credit and other facilities for the development of agriculture.
6. Thus, we can say the NABARD has been recognized as an apex institution for agricultural finance.

Question 4.
KVIC plays an important role in development of entrepreneurship.
Answer:

1. Entrepreneurship Development is one of the major functions of KVIC.
2. KVIC helps to provide additional livelihood avenues to the village communities.
3. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth. It increases the earning capacity as well as prevents migration.
4. KVIC actively participates in many international trade exhibitions for popularising its products in international markets.
5. Thus, we can say that KVIC plays an important role in development of entrepreneurship.

Question 5.
Mutual Trust is the soul of SHG.
Answer:

1. Most of the Indian villagers are facing challenges such as poverty, illiteracy, lack of skills, health care, etc.
2. There is a need of group efforts to solve these problems.
3. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts.
4. Through mutual trust thousands of poor and the marginalized individuals are building their lives, their families and their society.
5. Thus, we can say mutual trust is the soul of SHG.

Question 6.
SHGs play an important role in empowerment of women.
Answer:

1. The empowerment of women through SHG’s would lead to benefits not only to the individual women but also for the family and community as a whole.
2. The SHGs empower women and trains them to take active part in socio-economic progress of the nation.
3. SHG develops saving habits among the women.
4. It enhances status of women as they participate, lead, take decisions and get benefited through collective efforts,
5. Thus, we can say that SHG’s play an important role in empowerment of women.

Question 7.
World Bank plays vital role in social development.
Answer:

1. The World Bank work with governments, communities, civil societies, private sectors and the marginalized for the cause of social development.
2. Social development promotes economic growth and leads to higher quality of life.
3. The World Bank work on social development, brings voices of the poor and vulnerable into development process.
4. World Bank is also undertaking timely social risk analysis, including poverty and social impact analysis,
5. Thus, World Bank plays a vital role in social development.

6. Attempt the following

Question 1.
State the different forms of finance provided by SIDBI.
Answer:
SIDBI offers the following finance facilities to its customers:

1. Direct Finance : SIDBI offers direct financing to the MSMEs through financing Working Capital, Term Loan, Foreign Currency Loan, Equity Support, Energy Saving Schemes etc.
2. Indirect Finance : SIDBI offers indirect assistance by providing refinance to banks, State Level Financial Institutions, etc. with an extensive branch network across the country.
3. Micro Finance : SIDBI offers micro-finance to small businessmen and entrepreneurs for establishing their business.

Question 2.
State the role of SIDBI in sustainable development.
Answer:
Role of SIDBI in sustainable development:

1. SIDBI helps MSMEs in creation of economic wealth while preventing ecological wealth of the country.
2. It promotes the culture of energy efficient and sustainable finance.
3. It takes initiative to enhance awareness of benefits of climate control amongst MSMEs.
4. It focuses on lending schemes, promoting investments in clean production and energy efficient technologies.
5. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

Question 3.
Explain the role of NABARD in financing rural industries.
Answer:
Role of NABARD in financing rural industries:

1. It plays an important role in providing refinance to small scale industries and other village and cottage industries.
2. It provides loans to commercial and co-operative banks to promote rural employment.
3. It organizes skill and entrepreneurship development programmes to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

Question 4.
Explain the objectives of KVIC.
Answer:
Objectives of KVIC are:

1. The objectives of KVIC are broadly classified into three, i.e. social objective, economic objectives and wider objective.
2. Through social objective, KVIC aims at providing employment to the rural unemployed.
3. Through economic objective, it tries to produce saleable articles which will give promotion to KVIC products.
4. Through wider objective, it attempts to create self refinance amongst the poor and building a strong rural community spirit.

Question 5.
Explain the role of KVIC in employment generation.
Answer:
Role of KVIC in employment generation:

1. Due to massive population growth agricultural sector is losing its ability to generate additional employment in rural areas.
2. It is necessary to create employment opportunities for the fast increasing workforce in rural areas.
3. Khadi and village industries are labour intensive in nature.
4. The KVIC is established with the broader objective to promote non-farm employment opportunities in rural areas.
5. It also concentrates on the betterment of rural artisans and socio-economic weaker section of the society.

Question 6.
Explain in detail democratic setup in SHGs.
Answer:
Democratic set up in SHGs:

1. SHG is group of the members, for the members and by the members.
2. It is the group which reflects the people’s real participation in the process of development.
3. Every member of the group actively participates in the functioning of SHGs.
4. Members are responsible for their own future by organizing themselves into SHGs.
5. They elect or select leader for proper functioning of the group.
6. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

Question 7.
Explain organizational structure of World Bank.
Answer:
Organizational Structure of World Bank:

1. The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the Loan Committee and the President and other staff members.
2. Board of Governors is the supreme policy making body of the bank.
3. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country.
4. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

7. Answer the following

Question 1.
Write important features of SIDBI.
Answer:
Important features of SIDBI are as follows:
(i) Sustainable Development : SIDBI is working towards sustainable development of MSMEs in India. It helps MSMEs in creation of economic wealth while preventing ecological wealth of the country. It promotes culture of energy efficient and sustainable finance. It helps to reduce the emission of greenhouse gases to contribute towards reduction in pollution.

(ii) Nodal/Implementing Agency : SIDBI has been assigned the role of nodal agency by the Government of India. It helps in implementing various subsidy schemes for MSMEs. These schemes help in upgradation, modernization and expansion of business.

(iii) Financial Institute for Promotion of MSMEs : SIDBI is established to provide short term and long term finance to the MSMEs. It provides refinance to Banking and Non-Banking Financial Companies to increase supply of credit to MSMEs. SIDBI cater to the specific needs of Indian MSMEs that are not fulfilled through traditional sources of finance.

(iv) Advisory Function: SIDBI also works as an advisor and mentor for MSMEs. It helps MSMEs in expanding marketing channels for the products both in the domestic as well as international markets. It also initiates steps for modernization and technological upgradation of current units.

(v) Forms of Finance : SIDBI offers the following facilities to its customers:

• Direct Finance
• Indirect Finance
• Micro Finance

(vi) Digital Initiatives:
(a) SIDBI Startup Mitra:
It brings together all stakeholders, start-up entrepreneurs, incubators, investors, industry bodies, mentors and advisors and banks at one platform. It helps in financing and development of new entrepreneurs. It also works as knowledge partner for State and Central Government.

(b) Udyami Mitra:
This is the portal launched by SIDBI to improve accessibility of credit and handholding services to MSME’s. Under this portal entrepreneurs can apply for loan without physically visiting any bank branches. The entrepreneurs can select and apply for preferred banks, they can select suitable branch, track their application status an avail multiple loan benefits.

(vii) Achievement of National Goals : SIDBI helps in poverty alleviation and employment generation by financing MSMEs. It promotes entrepreneurship and fosters competitiveness in MSME sector. It promotes entrepreneurship among women and economically weaker section of the society.

(viii) Services of MSMEs : SIDBI provides different types of financial and non financial services through its associates and subsidiaries. These associates and subsidiaries are as follows:

• SIDBI Ventures Capital Ltd.
• Credit Guarantee Fund Trust for Micro and Small Enterprises
• SME Rating Agency of India Ltd.
• India SME Technology Services Limited
• India SME Asset Reconstruction Company Ltd.
• Micro Units Development & Refinance Agency

Question 2.
Write important features of NABARD.
Answer:
Important features of NABARD are as follows:
(i) Financing Rural Industries : It plays an important role in providing refinance for small scale industries and other village and cottage industries. It provides loans to commercial and co-operative banks to promote rural employment. It organizes skill and entrepreneurship development programs to promote an entrepreneurial culture among the rural youth and encourage them to start enterprises in the rural areas.

(ii) Assistance to Financial Institutes : It plays an important role in preparing and developing action plans for Co-operative Banks and Regional Rural Banks. It also monitors implementation of developmental action plans of these banks. It provides financial assistance to co-operative banks for building improved Management Information System, computerization of operations and development of human resources.

(iii) Refinancing Facilities : It provides refinancing facilities to State Co-operative Banks (SCBs), Land Development Banks (LDBs), Regional Rural Banks (RRBs) and other approved financial institutions for financing rural economic activities. It also provides short-term, medium term and long term credit to these institutes.

(iv) Credit for Rural Development: It takes initiative in development and promotion of different activities in rural area by providing funds to State government. It also works on improvement of small and minor irrigation by way of promoting agricultural activities.

(v) Apex Bank : NABARD acts as an apex bank for meeting the credit needs of all type of financial institutions working in the field of agricultural and rural development. It works to frame policies and guidelines for rural financial institutions in India. It provides credit facilities to institutes working in agricultural finance.

(vi) Recommendations to Reserve Bank of India : It provides recommendations to Reserve Bank of India on issue of licenses to Co-operative Banks, opening of new branches by State Co-operative Banks and Regional Rural Banks.

(vii) Development of Nation: It plays an important role in the improvement of storage facilities for agricultural commodities by promoting development of warehousing facilities. It also promotes the export of agricultural commodities. It plays a key role in sustainable development of the country through Green, Blue and White revolution.

(viii) Supervision of Financial Institutes Engaged in Agricultural Finance :It undertakes inspection of Regional Rural Banks and Co-operative Banks as per the guidelines of Banking Regulation Act, 1949. It can also undertake inspection of State Co-operative Agriculture and Rural Development Banks and apex non-credit co-operative societies on a voluntary basis.

Question 3.
Write important features of KVIC.
Answer:
Important features of KVIC are as follows:
(i) Research and Development: To face the challenge of globalisation, KVIC has introduced a number of new products range like khadi denim jeans to cater the need of the market. The KVIC undertake trainings of sales staff for effective marketing of the products. KVIC is taking several steps to set standards of quality to ensure genuineness of the khadi products. KVIC signed Memorandum of Understanding with National Institute of Design to provide design support, services in packaging, marketing, communication, publicity, disseminating materials and other design-related activities.

(ii) Other Functions : The KVIC is charged with the planning, promotion, organization and implementation of programs for the development of Khadi and other village industries in the rural area. It organizes training programme for artisans engaged in Khadi and Village Industries.

(iii) Marketing Promotion : In order to attract younger generation, the KVIC is holding exhibitions, seminars, lectures in universities and colleges to disseminate knowledge of KVIC products. KVIC has also launched a massive marketing development plan to generate interest, awareness and attraction amongst masses.

(iv) Financial Assistance : It finances the projects for rural industrialization and also provides for margin money by way of subsidy. There are provisions for higher rate of subsidies in case of beneficiaries of the weaker section, tribal areas and backward regions. KVIC also provides financial assistance to institutions and individuals for development and operation of Khadi and Village industries.

(v) Rural Development : The Khadi and Village Industries plays an important role in the development of Indian economy, particularly in the development of the rural areas. KVIC facilitates proper utilization of natural resources in rural India for generating income for the rural masses.

(vi) Employment Generation: Due to increasing workforce, it is necessary to create employment opportunities. KVIC are labour intensive in nature. The broader objective of KVIC is to promote non-farm employment opportunities in rural areas.

(vii) Entrepreneurship Development : KVIC helps to provide additional livelihood avenues to the village communities. KVIC generate self-employment opportunities through establishment of micro enterprises by organizing traditional artisans and unemployed youth.

Question 4.
Write important features of SHGs.
Answer:
Important features of SHGs are as follows:
(i) Formation : It is generally formed by NGO’s or team of the government. It is an informal group. It is recognized by the government and does not require any formal registration. SHGs have well-defined rules and by-laws, hold regular meetings and maintain records.

(ii) Membership : As per the National Urban Livelihood Mission at least 5 members are required. It is difficult to manage bigger group and members cannot actively participate. From one family only one person can become a member so that more families can participate. Mixed groups are generally not preferred.

(iii) Entrepreneurship Development : The poor individuals in rural area face scarcity of capital and managerial skills. SHGs provide them capital at low interest rate which give them opportunity to start micro enterprise. These micro enterprises use untapped manpower in the area which generates employment opportunities in rural area.

(iv) Collateral Free L oan: SHGs provide small loans to the poor individuals for undertaking self-employment projects. Loans are given on the principle of mutual trust and either minimum or no documentation is required to get loan. The rate of interest differs from group to group and it is little higher than the interest charged by banks. It ensures timely repayment of loans as all members of the group are responsible for collecting repayment amount from the members who borrowed the loan.

(v) Democratic Setup : SHG is group of members, for the members and by the members. It is the group which reflects the people’s real participation in the process of development. Members elect or select leader for proper functioning of the group. Leader is responsible for holding regular meetings and maintaining records and accounts of the group.

(vi) Empowerment of Women : SHG is an emerging tool for socio-economic development of women all over the world. SHGs are working effectively in promoting women entrepreneurship. SHGs empower women by providing her knowledge, finance and opportunities.

(vii) Saving Habits : The SHG encourages small saving habits at regular interval among its members. The Self Help Group inculcates the thrift and savings habit among the members of each group.

(viii) Mutual Trust : Most of the Indian villages are facing challenges such as poverty, illiteracy, lack of skills, health care, etc. The basic philosophy of forming SHGs is to overcome individual shortcomings and weaknesses with collective efforts. Through mutual trust thousands of the poor and marginalized individuals are building their lives, their families and their society.

Question 5.
Write important features of World Bank.
Answer:
Important features of World Bank are as follows:
(i) Organisation and Structure : The organization of the bank consists of the Board of Governors, the Board of Executive Directors and the Advisory Committee, the loan Committee and the President and other staff members. Board of Governors is the supreme policy making body of the bank. The board consists of one Governor and one Alternative Governor appointed for 5 years by each member country. The Board of Executive Directors consists of 21 member, 6 of them are appointed by the six largest shareholders, namely USA, UK, Germany, France, Japan and India. The rest 15 members are elected by the remaining countries.

(ii) Innovation and Entrepreneurship : Innovation and Entrepreneurship helps in higher productivity which leads to increased economic growth. It helps in creation of employment to eradicate poverty. Young and growth oriented companies contribute in employment growth. They help in enhancing competitiveness and productivity by introducing new products, developing novel business models and opening new markets. The World Bank brings global experience, knowledge, research and investments to help client countries develop effective innovation and entrepreneurship ecosystems, such as policies, strategies, regulations and institutions that foster investments and jobs.

(iii) Financial Products and Services : World Bank provides low-interest loans, zero to low interest credits, and grants to developing countries. It supports in areas such as education, health, public administration, infrastructure, financial and private sector development, agriculture and environmental and natural resource management.

(iv) Innovative Knowledge Sharing : World bank sponsors, host or participates in many conferences and forums on issues of development. It also collaborates with partners on many developing issues. It also takes effort to provide access to the best global expertise to the developing countries.

(v) Goals :
The world bank group has set 2 goals to be achieved by 2030.

• End extreme poverty by decreasing the percentage of people living on less than 1.90 dollars a day to no more than 3%.
• Promote shared prosperity by fostering the income growth of the bottom 40% of every country.

(vi) Social Development : Social Development focuses on the need to ‘put people first’ in development process. The World Bank’s work on social development, brings voices of the poor and vulnerable into development.

Balbharti Maharashtra Board Organisation of Commerce and Management 11th Textbook Solutions Chapter 5 Forms of Business Organisation – II Textbook Exercise Questions and Answers.

Maharashtra State Board 11th Organisation of Commerce and Management Solutions Chapter 5 Forms of Business Organisation – II

1. (A) Select the correct option and rewrite the sentence

Question 1.
Departmental Organisation is financed through …………………… appropriations made by the legislature.
(a) annual budget
(b) monthly budget
(c) quarterly budget
Answer:
(a) annual budget

Question 2.
A ………………. is an autonomous corporate body created by the special Act of the parliament or State legislature.
(a) Statutory corporation
(b) government company
(c) MNC
Answer:
(a) Statutory corporation

Question 3.
A statutory corporation is answerable to ……………… or state assembly whosoever creates it.
(a) Parliament
(b) public
(c) employees
Answer:
(a) Parliament

Question 4.
In government company minimum …………………. % paid up capital is held by government.
(a) 51
(b) 41
(c) 31
Answer:
(a) 51

Question 5.
The shares of government company are purchased in the name of ………………
(a) President of India
(b) Chief Minister
(c) Defence Minister
Answer:
(a) President of India

Question 6.
Government on the advice of ………………… appoints auditor of government company.
(a) Comptroller and Auditor General of India
(b) auditor
(c) chartered accountant
Answer:
(a) Comptroller and Auditor General of India

Question 7.
A government company is a ………………… entity separate from the government.
(a) natural
(b) legal
(c) human
Answer:
(b) legal

Question 8.
……………… company has public accountability.
(a) MNC
(b) Private
(c) Government
Answer:
(c) Government

Question 9.
MNCs are powerful ……………….. entities.
(a) economical
(b) political
(c) social
Answer:
(a) economical

1. (B) Match the pairs

Question 1.

Group A	Group B
(a) BHEL	(1) Special Legislature
(b) Statutory Corporation	(2) 49% paid up capital by Government
(c) Departmental Organisation	(3) Service Motive
(d) Private Sector	(4) Railway
(e) Public Sector	(5) Profit motive
	(6) 51% paid up capital by Government

Answer:

Group A	Group B
(a) BHEL	(6) 51% paid up capital by Government
(b) Statutory Corporation	(1) Special Legislature
(c) Departmental Organisation	(4) Railway
(d) Private Sector	(5) Profit motive
(e) Public Sector	(3) Service Motive

1. (C) Give one word / phrase / term

Question 1.
Organisations which are owned by individual or group of individuals.
Answer:
Private Sector Organisations

Question 2.
Organisations which are owned by government.
Answer:
Public Sector Organisations

Question 3.
The sector which aims at profit maximization.
Answer:
Private sector

Question 4.
The sector which aims at providing reliable services to customers.
Answer:
Public sector Organisation

Question 5.
Organisations which are owned, financed, managed and controlled by government or combination of governments.
Answer:
Public sector Organisation

Question 6.
The organisation which is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 7.
The oldest form of business organisation under public sector.
Answer:
Departmental Organisation

Question 8.
The organisation which performs it’s all activities as an integral part for government only.
Answer:
Departmental Organisation

Question 9.
The organisation which is financed through annual budget appropriations made by the legislature.
Answer:
Departmental Organisation

Question 10.
The organisation in which there is direct and absolute control of government over the enterprise.
Answer:
Departmental Organisation

Question 11.
An autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions and duties.
Answer:
Statutory Corporation

Question 12.
An organisation which is answerable to parliament or state assembly whosoever creates it.
Answer:
Statutory Corporation

Question 13.
An organisation which is not subject to the budget, accounting and audit controls by the government.
Answer:
Statutory Corporation

1. (D) State True or False

Question 1.
Private sector organisations are owned by individual or group of individuals.
Answer:
True

Question 2.
Public sector organisations are owned by government.
Answer:
True

Question 3.
Private sector aims at providing reliable services to customers.
Answer:
False

Question 4.
Public sector was undertaken as a part of industrial policy, 1956.
Answer:
True

Question 5.
Departmental organisation is the oldest form of business organisation under public sector.
Answer:
True

Question 6.
Departmental organisation performs its all activities separately from government.
Answer:
False

Question 7.
The Minister-in-charge of ministry is the head of departmental organisation.
Answer:
True

Question 8.
There is always problem of red tapism and bureaucracy in departmental organisation.
Answer:
True

Question 9.
There is large scope for the initiative and skill in departmental organisation.
Answer:
False

Question 10.
In departmental organisation there is flexibility in operations.
Answer:
False

1. (E) Find the odd word out

Question 1.
Indian Post, Indian Railway, Bank of India, Air India.
Answer:
Bank of India

Question 2.
Life Insurance Corporation, Reserve Bank of India, Bharat Heavy Electricals Limited, ONGC.
Answer:
Bharat Heavy Electricals Limited

Question 3.
Pepsi, Coca Cola, Dabur, Proctor & Gamble.
Answer:
Dabur

Question 4.
Tata Motors, Hindustan Aeronautics Limited, Steel Authority of India Limited, Gas Authority of India Limited.
Answer:
Tata Motors

1. (F) Complete the sentences

Question 1.
A Government company is a ………………… entity separate from the government.
Answer:
Legal

Question 2.
………………… is owned, managed, controlled and financed by government.
Answer:
Departmental Organisation

Question 3.
A ………………… has defined powers, functions and duties.
Answer:
Statutory corporation

Question 4.
All government companies are registered under ………………… Act, 2013.
Answer:
Companies

Question 5.
MNCs are powerful ………………… entities.
Answer:
economical

1. (G) Answer in one sentence

Question 1.
What is Government Company?
Answer:
The Company which is registered under Companies Act, 2013 having minimum 51% of paid up share capital held by central government or any state government or partly by central government and partly by one or more state governments is known as Government company.

Question 2.
What is Departmental Organisation?
Answer:
It is the oldest form of business organisation. Departmental Organisation performs its all activities as an integral part for government only.

Question 3.
What is Statutory Corporation?
Answer:
Statutory Corporation is an autonomous corporate body created by the special act of the parliament or state legislature with defined powers, functions and duties.

Question 4.
What is Multinational Corporation?
Answer:
A multinational corporation is a business organisation that operates in many different countries at the same time.

Question 5.
What is Public Sector?
Answer:
Public sector organisations are those organisations which are setup by the government with the main object of providing essential services to the general public.

Question 6.
What is Private Sector?
Answer:
Private sector business which are owned by private individuals or group of individuals are termed as private sector organisation.

1. (H) Correct the underlined word and rewrite the following sentences

Question 1.
Statutory Corporation is a natural person created by Special Act.
Answer:
Statutory Corporation is an artificial person created by special act.

Question 2.
A Statutory Corporation is not answerable to parliament or state assembly.
Answer:
A statutory corporation is answerable to parliament or state assembly.

Question 3.
MNC have existence only in single country.
Answer:
MNC have existence in many countries.

Question 4.
Departmental Organisation has separate existence from government.
Answer:
Departmental Organisation has no separate existence from government.

Question 5.
Private sector aims at providing essential services to customers.
Answer:
Public sector aims at providing essential services to customers.

2. Explain the following terms/concepts

Question 1.
Public Sector Organisation.
Answer:

1. It is owned, managed, controlled and financed by government.
2. It includes – Departmental Organisation, Statutory Corporation and Government Companies.
3. Its main objective is to provide services to society.
4. It is managed by government officials or Board of Director.
5. It is large in size and operates on large scale.

Question 2.
Private Sector Organisation.
Answer:

1. It is owned, managed, controlled and financed by individuals or group of individuals.
2. It includes – Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Company and Co-operative Society.
3. Its main objective is to maximise profit.
4. It is managed by the owner himself or by their elected representatives.
5. It generally operate in industrial and commercial areas only.

Question 3.
Departmental Organisation.
Answer:

1. It is owned, managed, controlled and financed by government.
2. It is managed by government officials of concerned ministry.
3. They do not have autonomy in decision making.
4. They do not have separate legal entity distinct from government.
5. It is funded through annual budget of the government.

Question 4.
Statutory Corporation.
Answer:

1. It is formed under a Special Act of Parliament or State Legislature.
2. It is managed by Board of Director who are appointed by the government.
3. They enjoy autonomy in decision making.
4. They have separate legal entity distinct from government.
5. It is funded by the government initially and also in need of additional capital.

Question 5.
Government Company.
Answer:

1. It is a company where 51% of the paid up capital is held by Central Government or State Government jointly or individually.
2. It is managed by Board of Directors appointed by Government and Shareholders.
3. It is formed and registered under Companies Act, 2013.
4. They can borrow funds by issuing shares to the public or through debentures, deposits, etc.

Question 6.
Multinational Corporation.
Answer:

1. It is a business organisation that operates in many different countries.
2. It conducts business activities in more then one country.
3. It is controlled through centrally located head office.
4. They are also called as transnational or international corporations.
5. Example : Bata India, Infosys, Tata Motors, etc.

3. Study the following case/situation and express your opinion

1. There is X company in which capital contribution by different entities are as follows : Madhya Pradesh Government 35%, Maharashtra Government 35% and Government of India 30% of company.

Question 1.
Find out type of this company.
Answer:
‘X’ company is a Government Company.

Question 2.
Tell any two features of this company.
Answer:
Separate legal entity and Registration under the Companies Act, 2013 are the features of “X Government Company.

Question 3.
Give an example of this type of company.
Answer:
Hindustan Machine Tools (HMT), State Trading Corporation (STC), are the examples of the Government Company.

2. There is a company which is having a registered office in Singapore and such company is having branch offices in Varanasi (India) and Hambantota (Sri Lanka). This company provides cellular services to host countries through their respective branch offices.

Question 1.
Find out type of organisation.
Answer:
This type of organisation is called as Multinational Corporation.

Question 2.
Comment on it.
Answer:
Multinational Corporation means the companies which undertake business activities in more than one country. So this company is registered in Singapore and having branches in India and Sri Lanka.

Question 3.
Name the business organisation, which is self-financed, delegates authority and run by government as an integral part of it.
Answer:
It is a Departmental Organisation.

Question 4.
State any two merits of this organisation.
Answer:
No separate legal entity and Government employees are the merits of Departmental Organisation.

3. A central government passes a statute in the parliament and forms a business organisation which is having autonomy in administration and this organisation is answerable to legislature.

Question 1.
Which type of organisation is this?
Answer:
It is a Statutory Corporation.

Question 2.
Give any three Features of this organisation.
Answer:
Corporate body, No political interference, Own staffing system are the features of Statutory Corporation.

Question 3.
Give any one example of this type of organisation.
Answer:
“Life Insurance Corporation of India” is the example of Statutory Corporation.

4. Distinguish between the following

Question 1.
Private Sector Organisation and Public Sector Organisation.
Answer:

	Private Sector Organisation	Public Sector Organisation
(1) Meaning	Private enterprises are owned managed, controlled and financed by individuals or groups of individuals. Thus, ownership and management is with private organisations.	Public enterprises are owned, managed and controlled by the state on behalf of the people.
(2) Management	It is managed by industrialists through board of directors and other specialized executives.	It is managed by government officials or board of directors.
(3) Size of Entity	They are usually of small or medium size depending on volume of operation.	They are usually large in sized and they operate on large scale.
(4) Capital provider	Capital is contributed by owner from their own resources and borrowings from financial institutions.	The capital of public sector organisation is contributed by government.
(5) Decision making	Decision making is quick as very few officials are involved in decision making process.	Decision making is delayed due to bureaucratic hurdles.
(6) Business area	It generally operates in industrial and commercial areas only.	It operates in utility services areas like – railways, post, etc. and also in industrial and commercial areas.
(7) Main motive	Main motive of private sector organisation is to earn a profit.	Main motive of public sector organisation is to provide services to society.
(8) Flexibility	They are more flexible in nature as their policies can be modified as and when the need arises.	There is no flexibility in their operations as any change or modification requires the approval of thp Government.
(9) Political Interference	In private enterprises, there is no political interference and therefore executive enjoys complete autonomy and freedom of operations.	Public enterprises working is always affected by political interference. There is constant danger of undue interference by political parties and their leaders.
(10) Competition	Private enterprises operate in cut throat competition.	Public enterprises are generally monopolies or oligopolies (only two sellers in market.)
(11) Economic Equalities	Private sector increases economic inequalities.	Public Enterprises reduce economic inequalities.
(12) Regional Balance	Private enterprise increase regional imbalance because it wants to enjoy the advantages of location of industries.	Public enterprises tries to reduce the regional imbalance as it intends to bring about balanced regional development.
(13) Efficiency	Private Enterprises are more efficient due to profit maximisation, division of labour and specialisation.	Public enterprises lack initiative, flexibility and efficiency because profit motive is absent.
(14) Constituents	Sole Trading Concern, Joint Hindu Family Firm, Partnership Firm, Joint Stock Companies, Co-operative Society are different forms private sector.	Departmental Organisation, Statutory Corporations and Government companies are types of public sector.

Question 2.
Departmental Organisation and Statutory Corporation.
Answer:

	Departmental Organisatio	Statutory Corporation
Meaning	The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation.	The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Management	It is managed by government officials of the concerned ministry.	It is managed by board of directors nominated by government.
Legal Status	There is no separate legal status distinct from the government.	Statutory company has a separate legal status distinct from the government.
Borrowing Power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Statutory Company can borrow from public by issue of shares and debentures.
Control	It is controlled by the concerned ministry.	It is controlled by government by the Act of Parliament or State Legislature.
Capital	Capital of departmental organisation comes from annual budget appropriations of the government.	Capital for statutory company comes from Central or State Government.
Formation	It is formed through Executive decision taken by the concerned ministry.	It is formed by passing a Special Act in the Parliament or in the State Legislature.
Suitability	It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc.	It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Staff	Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants.	Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration.
Flexibility	It has low flexibility in its operation.	It has moderate flexibility in its operation.
Autonomy	It does not have autonomy in decision making.	It has autonomy in decision making.

Question 3.
Government Company and Multinational Corporation.
Answer:

	Government Company	Multinational Corporation
Meaning	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.	Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Capital	The capital is contributed by the Central Government or State Government or even by general public.	The capital is contributed by the shareholders or financial institutions in several countries.
Management and Control	Government Company is managed by Board of Directors appointed by government and shareholders.	Multinational corporation is managed by a parent company. It manages affairs of the subsidiary from the respective home country.
Establishment	Government companies are formed and registered under provisions of Companies Act, 2013.	Multinational corporations have to seek permission from the government and host countries.
Borrowing power	Government companies can borrow funds by the way of debt or issuing shares to the public.	Multinational corporation use resources of different countries.
Area of Operations	Government company operates within the local boundaries of a nation.	MNC operates in several countries, having headquarters in one country.
Motive	Government companies are service oriented and hence take interest in the social welfare activities of the country.	MNCs are profit motivated rather than service oriented.
Accountability	Government Company has to take its annual reports in the Parliament where its working is discussed and debated. Though it has autonomy in financial matters, it is indirectly accountable to the publics.	MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency	They have to deal with single currency.	They have to deal with multiple currencies and exchange rates.
Resource availability	Government company uses resources of government and its employees are government employees and are permanent.	MNCS use resources of different countries and their employees are on contract basis.
Trust and Public Confidence	Government company enjoy more public confidence as they have government backing and support.	MNCS do not have government backing and support in host countries.
Example	Steel Authority of India Ltd., State Trading Corporation, Indian Oil Corporation, BHEL, HMT, etc.	Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

Question 4.
Departmental Organisation and Multinational Corporation.
Answer:

	Departmental Organisation	Multinational Corporation
Meaning	The organisation which is owned, managed, controlled, financed and operated by government is known as Departmental Organisation.	Multinational Corporation is a company which is incorporated in one country and has business units in several countries.
Management	Departmental Organisation is managed by government officials of the concerned ministry.	Multinational Corporation is managed by parent company. It manages affairs of the subsidiary from the respective home country.
Legal status	There is no separate legal status distinct from the government.	It has separate legal status.
Borrowing power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Multinational corporation use resources of different countries.
Control	Departmental Organisations are controlled by the concerned ministry.	Multinational corporations are controlled by respective parent companies and mostly home strategic.
Capital	Capital of the Departmental Organisation comes from annual budget appropriations of the government.	The capital is contributed by the shareholders or financial institutions in several countries.
Ownership	Departmental undertaking is fully owned by the Government.	Ownership of MNC is in hands of shareholder’s of the company.
Privileges & Concessions	It receives highest government concessions and privileges.	MNC do not have any concessions. They have to pay duties and taxes.

Question 5.
Government Company and Statutory Corporation.
Answer:

	Government Company	Statutory Corporation
Meaning	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.	The company which is formed under a special Act of Parliament or State Legislature is known as Statutory Corporation.
Capital	The capital is contributed by the Central Government or State Government or even by general public and financial institutions.	Capital for the statutory corporation comes from Central or State government.
Managemen	Government Company is managed by Board of Directors appointed by government and shareholders.	Statutory Corporation is managed by Board of Directors nominated by government.
Control	These companies are controlled by government or shareholders.	Statutory corporation is controlled by government by the Act of Parliament or State Legislature.
Establishment	Government companies are formed and registered under provisions of Companies Act, 2013.	The statutory corporation is established by special Act of the Parliament or State Legislature.
Borrowing power	Government companies can borrow funds by the way of debt or issuing shares to the public.	tatutory corporation can borrow from public by issue of bonds.
Privileges & Concessions	It has no privileges and concessions by government.	It enjoys moderate privileges and concessions.
Suitability	It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc.	It is suitable for public utilities, development projects, service industry like banking and finance and other industrial and commercial undertakings e.g. UTI, LIC, RBI, ONGC, Air India etc.
Political Interference	It has less political interference in management of company as it has its own Board of Director.	It has more political interference as it is controlled by State and Central Government.
Flexibility	Government companies are more flexible in operations of business. They can change line of business as per market trend.	Statutory company are rigid in operations they are formed for the particular purpose.
Accountability	It is accountable to public.	It is accountable to State and Central Government.
Autonomy	It has full autonomy as its incorporated under Companies Act, 2013.	It has theoretical autonomy as its established with certain purpose by Central or State Government.

Question 6.
Departmental Organisation and Government Company.
Answer:

	Departmental Organisation	Government Company
Meaning	The organisation which is owned, managed, controlled, financed and operated by Government is known as Departmental Organisation.	Government Company means company where minimum 51% of the paid up capital is held by the Central or State Government jointly or individually.
Management	Departmental Organisation is managed by government officials of the concerned ministry.	Government Company is managed by Board of Directors appointed by government and shareholders.
Legal Status	There is no separate legal status distinct from the government.	A Government company has legal status separate from the Government.
Borrowing power	Departmental undertaking cannot borrow from public. It has to depend on budget allocated by the government.	Government companies can borrow funds by the way of debt or issuing shares to the public.
Control	Departmental Organisations is controlled by the concerned ministry.	These companies are controlled by government or shareholders.
Capital	Capital of the departmental Organisation comes from annual budget appropriations of the government.	The capital is contributed by the Central Government or State Government or even by general public and financial institution.
Formation	It is formed through Executive decision taken by the concerned ministry.	It is formed through registration under Companies Act, 2013.
Privileges & Concessions	It receives highest government concessions and privileges.	It has no privileges and concessions by government.
Suitability	It is suitable for defence and public utility undertakings such as infrastructure projects, e.g. Railways, Post & Telegraph, Defence, etc.	It is suitable for industrial and commercial undertakings, e.g. BHEL, SAIL, HMT, Indian Oil Corporation, Indian Refineries, Madras Refineries, Gujarat Refineries, etc.
Staff	Employees appointed are Government servants. They are subject to the same discipline and enjoy the same privileges as meant for civil servants.	Employees can be recruited independently and it does not have to necessarily follow civil service rules.
Political Interference	It has high political interference with regards to the management.	As compared to departmental organisation it has less political interference.
Flexibility	It is rigid in operations as its managed through officers of the government.	It is more flexible in operations as managed by Board of Directors.
Motive	It is majorly concern with providing service to the people.	It is concern with giving with profit making and service to the people.
Accountability	Highly accountability to the respective the Minister in charge as they render their service.	Low accountability to the people as they render their service.
Autonomy	There is no autonomy as its owned, managed controlled, financed by government.	It has full autonomy as per provisions to Companies Act, 2013.

Question 7.
Statutory Corporation and Multinational Corporation.
Answer:

	Statutory Corporation	Multinational Corporation
Meaning	The company which is formed under a Special Act of Parliament or State Legislature is known as Statutory Corporation.	Multinational corporation is a company which is incorporated in one country and has business units in several countries.
Capital	Capital for the statutory corporation comes from Central or State government.	The capital is contributed by the shareholders or financial institutions in several countries.
Management	Statutory Corporation is managed by Board of Directors nominated by government.	Multinational Corporation is managed by parent company and it manages affairs of the subsidiary from the respective home country.
Control	Statutory Corporations are controlled by government by the Act of Parliament or State Legislature.	Multinational Corporations are controlled by respective parent companies.
Establishment	The Statutory Corporation is established by Special Act of the parliament or State Legislature.	Multinational Corporations have to seek permission from the Government and host countries.
Borrowing power	Statutory company can borrow from public by issue of shares and debentures.	Multinational Corporation use resources of different countries.
Area of Operations	Statutory corporation operates within the local boundaries of a nation. Hence, the area of operations is not large.	MNC operates in several countries, having headquarters in one country. Hence, the area of operations is large.
Motive	Statutory Corporation are service oriented and hence take interest in the social welfare activities of the country.	MNCs are profit motivated rather than service oriented. They render service in those areas where the opportunities for profit maximisation are more.
Accountability	Statutory corporation has to take its annual reports in the Parliament where its working is discussed and debated.	MNC is accountable to the taxation authorities in host countries and have to follow procedures such as Income Tax law procedure, FEMA, EXIM Policy etc. and as such will have to obey the laws of the host countries.
Currency	They have to deal with single currency.	They have to deal with multiple currencies and exchange rates.
Resource availability	Employees can be recruited independently. They are not civil servants. The corporation can have its own rule of recruitment and scale of remuneration.	MNC’s use resources of different countries and their employees are on contract basis.
Trust and Public Confidence	Statutory corporation enjoy more public confidence as they have government backing and support.	MNC’s do not have government backing and support in host countries.
Example	UTI, LIC, RBI, ONGC, Air India, etc.	Hindustan Lever Ltd., Colgate Palmolive India Ltd; Coca Cola, IBM Computers, Sony, etc.

5. Answer in brief

Question 1.
State any four features of Departmental Organisation.
Answer:
Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(ii) Organizational Structure : The internal organizational structure is of line type. The department is headed by minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.

(iii) Government Employees : The employees of departmental organization are civil servants and they are selected through Union Public Service Commission. Staff selection Board, Railway Recruitment Board etc. and as such they are treated as Government employees.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

Question 2.
State any four features of Statutory Corporation.
Answer:
Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(v) Independent Identity : They have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

Question 3.
State any two demerits of Multinational Corporation.
Answer:
Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) C reate Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) O utsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(iv) Misuse of Mighty Status : Multinational Corporations have powerful financial strength because of huge capital. They can afford to bear losses for a long while in the hope of earning huge profits. They have ended local competition and achieved monopoly. This may be unfair.

Question 4.
State any four merits of Government Company.
Answer:
Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(ii) Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers and so on.

(iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. Government always promotes public welfare.

(iv) Foreign Capital and Technical Know how : As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.

6. Justify the following statements

Question 1.
Departmental Organisations are run for providing public services.
Answer:

1. Departmental Organisations are the oldest forms of public enterprises.
2. Indian railways, post office, defence, All India Radio are the Departmental Organisations.
3. Indian Railways give services to public.
4. Main objective of Departmental Organisations is to provide services to public.
5. Private sector aims at profit maximization while public sector aims to providing reliable services to customers.
6. Thus, Departmental Organisations are run for providing public services.

Question 2.
There is direct control of Government on departmental organisation.
Answer:

1. Departmental organisations are run by the Government.
2. Departmental organisations are financed through annual budget of Government.
3. Revenues of departmental organisation is directly paid to Government treasury.
4. Departmental organisation has no separate existence from Government.
5. The staff of enterprises is treated equally with other civil servants.
6. Thus, there is direct control of Government on departmental organisation.

Question 3.
There is no political interference in statutory corporation.
Answer:

1. A Statutory corporation is an autonomous corporate body.
2. Statutory corporation is an artificial person created by law and it has an independent legal entity.
3. Employees are not government servants.
4. A statutory corporation enjoys financial autonomy or independence.
5. A statutory corporation comes into existence by following particular act, therefore, there is no political interference in formation.
6. Thus, all statutory corporations are free from political interference.

Question 4.
There is professional management in statutory corporation.
Answer:

1. A statutory corporation is able to manage its affairs with independence and flexibility.
2. Management of statutory corporation is done without any government interference.
3. The statutory corporation is relatively free from red tapism.
4. There is less file work and less formality to be completed before taking decisions.
5. Board of directors of statutory corporation consists of business experts and the representatives of various groups such as labour, consumers, etc. who are nominated by the government.
6. Thus, there is professional management in statutory corporation.

Question 5.
MNC helps to end local monopolies.
Answer:
Multinational corporation helps to end local monopolies.

1. Multinational corporations lead to competition in the host countries.
2. Local monopolies of host countries either start improving their products or reduces their prices.
3. Multinational corporation put an end to exploitative practices of local monopolists.
4. As a matter of fact, MNCs compel domestic companies to improve their efficiency and quality.
5. Thus, MNC helps to end local monopolies.

Question 6.
MNC has worldwide existence.
Answer:

1. As multinational corporation is operating on a global basis.
2. Multinational corporation have marketing operations in several countries operating through a network and branches.
3. They have production facilities in several countries.
4. Advanced Technology and international business operations are done by MNC.
5. It brings in much needed foreign capital for the rapid development.
6. Multinational corporation integrate economies of various nations with the world economy.
7. Thus, MNC has worldwide existence.

Question 7.
MNC has mighty economic powers.
Answer:

1. As MNC is operating on a global basis, they have huge physical and financial assets.
2. In terms of assets and turnover, many MNCs are bigger than national economies of several countries.
3. Multinational corporations are powerful economic entities.
4. Multinational corporation keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.
5. Thus, MNC has mighty economic powers.

7. Attempt the following

Question 1.
Merits of Departmental Organisation.
Answer:
Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

2. Proper Use of Funds : The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concern ministry. Charges for misuse of funds are less in departmental organization.

3. Social Welfare : Government undertakes socio-economic activities to promote social welfare. Providing essential comlhodities to people at reasonable price is top priority of the state. Thus, socio-economic objectives are achieved with Government control.

4. Public Accountability : The concerned minister incharge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of this enterprises on behalf of public at large.

Question 2.
Demerits of Departmental Organisation.
Answer:
Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

Question 3.
Merits of Statutory Corporation.
Answer:
Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(iii) Efficient Staff : In Statutory Corporation, employees are given fair wages, better working conditions and proper training and development programs are initiated for the employees. As a result, employer-employee relations are very cordial and staff is highly motivated to perform better.

(iv) Motivated Staff: In Statutory Corporations, employees are given fair wages, better working conditions and proper training and development programmes are initiated for the employees. As a result, employer- employee relations are very cordial and staff is highly motivated to perform better.

Question 4.
Demerits of Statutory Corporation.
Answer:
Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iii) Rigid Structure : Though statutory corporation have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is difficult task. This reduces its flexibility.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

Question 5.
Features of Government Company.
Answer:
Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

Question 6.
Demerits of Government Company.
Answer:
Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(iii) Domination of Ministers and Politicians : The ministers of the concerned departments are in charge of the Government Company. In view of Government ownership, political interference is quite common. The Directors try to serve and achieve their political motives rather than realisation of business goals as they are nominated for political gains and not on merits.

(iv) Red Tapism and Delay : The bureaucratic management delays in taking decision and implementing. There is no time frame and the employees are not devoted. There is often delay in preparing various documents and forwarding the same for taking action. Thus, delay, red tape, corruption, avoidance of work and shirking from the responsibility is common sight in Government Company.

Question 7.
Features of Multinational Corporation.
Answer:
Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(ii) Legal Existence : MNCs are registered in their home country as per their laws and as such they enjoy separate legal status. It can sue and be sued, enter into contracts and own property in their own name.

(iii) Government: MNCs have to bring about the necessary changes in their functioning based upon the laws prevailing in the countries of their operations. For e.g. advertisement about various products on TV is given in local languages in India and in national language Hindi, to cover maximum target audience. In some cases they have to change the menu to suit local demands for e.g. McDonalds had to change its menu for its business in India.

(iv) Origin: The MNCs have origin in one country and the country to which they belong is called home country. The country in which they operate their business activities is called host country. These companies are registered in their home country and have a place of business in different countries of the world. The head office controls the operations of different branches through a network of internet. They also appoint their representatives in host countries for smooth business operations.

Question 8.
Merits of Multinational Corporation.
Answer:
Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iii) Promotion of International Brotherhood and Culture: MNCs integrate economies of various nations with the world economy and promote international brotherhood and culture with peace and prosperity in the world.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(v) Technical Development: Multinational corporations gives lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The research and development is undertaken for finding out new product, new system, and new technology of doing business in an economical way.

8. Answer the following in details

Question 1.
Explain Departmental Organization and its features.
Answer:
(A) Meaning:
Departmental organizations are oldest form of public enterprises. These are run by Government departments headed by a minister who guides and controls the activities of the undertaking e.g. Indian Railways, all India Radio, Indian Post, Defence etc. A Departmental organization is organized, financed and controlled by Government like any other Government department. Under this type of organization, no distinction is made between public sector and traditional Government functions.

(B) Features of Departmental Organizations:
(i) Delegation of Authority : All major policy decisions are taken by the ministry. The day-to-day working is looked after by the staff consisting of civil servants of IAS, IPS cadres.

(ii) Organizational Structure : The internal organizational structure is of line type. The department is headed by minister who is responsible for the working of the department. Then there is Board of Directors or Managing Committee who are assisted by Chief Executive, Executive Assistant, Supervisory and General Staff. This is termed as bureaucracy style or military style of organisation.

(iii) Government Employees : The employees of departmental organization are civil servants and they are selected through Union Public Service Commission. Staff selection Board, Railway Recruitment Board etc. and as such they are treated as Government employees.

(iv) Financed by the Government: The funds are arranged for their operation from Government treasury. This enterprise cannot borrow money from the public without Government consent.

(v) Useful for Secret: matters like defence, atomic energy, etc.

(vi) No Legal Status : A government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government. Thus, the above are the features of Departmental Organization.

(vii) Government Sanction for Expansion : Public Enterprises need to take the sanction of the Government for expansion and diversification of business or for changing the policies, etc.

(viii) Examples of Departmental Organisation : Ordinance factories, Railways, Broadcasting, Post and Telegraph, BHEL, Indian Drug and Pharmaceuticals Ltd. Hindustan Aeronautics Ltd. Army Clothing Factory, Gun Factory and so on.

(ix) Run by Government : Different procedures like accounting, auditing and budgeting are at par with Government department.

(x) Managed by Government : The Departmental organization is managed by Government officials of the concern ministry.

(xi) Accounting Control : The organisation is subject to accounting and audit procedures and controls as applicable to government departments or to the concerned ministry.

(xii) Accountability : The enterprise is funded by the government and hence the government controls its affairs. In other words, it is answerable to the Parliament.

(xiii) No Separate Legal Entity : A Government department does not enjoy an independent legal status. It is dependent on the Government. It cannot be taken to court without the consent of the Government.

Question 2.
Explain merits and demerits of Departmental Organization.
Answer:
(A) Meaning:
Departmental organizations are run by the Government departments headed by a minister who guides and controls the activities of the undertaking.

(B) Merits of Departmental Organization:
1. Qualified Staff : Departmental organizations are properly managed and supervised by the qualified government staff.

2. Proper Use of Funds : The Departmental organizations provide public utilities or basic necessities. Government Department works under the control and supervision of the concern ministry. Charges for misuse of funds are less in departmental organization.

3. Social Welfare : Government undertakes socio-economic activities to promote social welfare. Providing essential comlhodities to people at reasonable price is top priority of the state. Thus, socio-economic objectives are achieved with Government control.

4. Public Accountability : The concerned minister incharge of the government organisation is answerable to the Parliament or Assembly. The elected representatives of people can raise the question about the working of this enterprises on behalf of public at large.

5. Maintain Secrecy: In matters of strategic, national importance, secrecy is essential and confidentiality can be maintained in certain business activities such as defence deals, atomic plants, drugs and pharmaceuticals etc.

6. Easy Formation : These organisations are very easy to form. They do not require any special statute or registration.

7. Direct Control: These organizations are properly managed and supervised by the qualified Government Staff Minister at the top is responsible to the Parliament for its operations.

8. Direct Revenue to Government : The revenue of departmental organizations directly goes to the jr Government treasury.

9. Less Overheads : The administrative expenses are less as government only operate it.

10. Easy Finance : These organisation get the required finance by the government through direct allocation of funds from the concerned ministry.

11. Development of Public Utilities : The departmental organisation provides public utilities or basic r necessities. People require essential services and products such as Railways, Transport and Communications, Telephone services, etc. Thus, essential services are made available by the Government department at a very reasonable rate.

(C) Demerits of Departmental Organisation:
(i) Delay in Action : In Departmental organisation there is always centralization of authorities. Such excessive centralization of authority leads to delay in action.

(ii) Inefficiency and Corruption : There is lot of inefficiency and corruption in departmental organisation.

(iii) Less Scope for Initiative : The working of this organization suffers from lack of continuity and stability because the policies of the department are decided by the ministers.

(iv) Instability : The working of this organisation suffers from lack of continuity and stability, because the policies of the department are decided by the Ministers.

(v) Delayed : The executives at the lower level have to depend on higher authority for all the decisions. They can’t take, their own decisions.

(vi) Lack of Flexibility : The Departmental organization lacks flexibility in decision making. This is because there is centralization of authority.

(vii) Incurring Losses/Huge Losses : Most of the government undertakings incur heavy losses due to lack of business skills and approach as they are not professional.

(viii) Absence of Professionalism : There is lack of professionalism in the management of departmental organization. Often the decisions are taken unsystematically, moreover the data collected is often out dated and there is no proper analysis of such data. Hence, the decisions are taken hastily.

(ix) Political Interference : The Ministers, bureaucrats, Government officials interfere in the day to day working of the undertaking.

(x) Red Tapism and Bureaucracy : The Departmental organisations are controlled by government. Departmental organisations are facing delays, red tapism, corruption, lack of initiative, bureaucracy, etc.

(xi) Insensitive to Consumer Needs : The officials of this organisation are insensitive to the needs of consumers. The officials are not bothered about consumer needs and consumer satisfaction as they are more worried about their security of service in view of monopolistic position.

(xii) Lack of Autonomy : Departmental organisation lack autonomy and freedom in working and decision making.

Question 3.
Explain Statutory Corporation and its features.
Answer:
(A) Meaning:
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.
Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Features of Statutory Corporation:
(i) No political Interference : It enjoys freedom from political, parliamentary and government interference in day-to-day management.

(ii) Own Staffing System: They recruit their own employees and they are not government servant. Employees terms and services are not governed by civil services rules.

(iii) No Political Interference : It enjoys freedom from political, parliamentary and government interference in day to day management of its affairs.

(iv) Financial Autonomy : Statutory Corporations are financially autonomous. After getting the prior permission from the Government, it can even borrow money within and outside the country.

(v) Independent Identity : They have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(vi) Special Act : They are established under a special Act passed by the Parliament. Its objectives, powers 98and functions are regulated by the Act.

(vii) Corporate Body : Statutory Corporation is a corporate body. It has a separate legal entity distinct from its members and thereby can enter into contracts and acquire property on its own name.

(viii) Answerable to the Legislature : A statutory corporation is answerable to Parliament or State Assembly whomsoever creates it. Parliament has no right to interfere. Though the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(ix) Legal Status : As a body corporate, it has a separate legal entity, distinct from its members and thereby can enter into contracts and acquire property in its own name.

(x) Independent Accounting System : They are not subject to budget accounting and audit laws and procedures applicable to government departments. But financial reports are placed in the Parliament for discussion.

(xi) Public Accountability : It’s accounts are audited by the Comptroller and Auditor General of India. Its annual reports and results are placed in Parliament or Legislative Assembly for discussion and hence answerable for their working and results to the Parliament.

(xii) Objective : It is service oriented and not profit oriented. It works efficiently to earn profit which is used for its day to day functioning.

Question 4.
Explain merits and demerits of statutory corporation.
Answer:
(A) Introduction
Statutory Corporations are autonomous bodies established under special legislative Acts. A statutory corporation is formed under a Special Act of Parliament or State Legislature. The powers, duties, functions and scope of operations are laid down in the Act.
LIC, IFCI, SBI, UTI, Air India are the examples of public corporation.

Statutory Corporation is a body with a separate existence, which can sue and be sued and is responsible for its own finance. It is administered by a board appointed by public authority to which it is answerable.

(B) Merits of Statutory Corporation:
(i) Professional Management: Statutory Corporations are managed professionally. The directors and other executives are highly trained and specialize in their respective fields. This leads to efficiency in working.

(ii) Rapid Decisions : Statutory Corporations enjoy autonomy. They can take quick decisions. There is less file work and less formalities to be completed before taking decisions.

(iii) Efficient Staff : In Statutory Corporation, employees are given fair wages, better working conditions and proper training and development programs are initiated for the employees. As a result, employer-employee relations are very cordial and staff is highly motivated to perform better.

(iv) Motivated Staff: In Statutory Corporations, employees are given fair wages, better working conditions and proper training and development programmes are initiated for the employees. As a result, employer- employee relations are very cordial and staff is highly motivated to perform better.

(v) Service Motive : They are formed to provide public utility services and promote consumer satisfaction. It provides essential commodities to people at reasonable rates.

(vi) Easy to Raise Capital : Being owned by government, these corporations can raise required funds by floating bonds at low rate of interest.

(vii) Administrative Autonomy : Due to administrative and financial autonomy, statutory corporation take quick decisions and are flexible in its policy framing and working as per the changing business needs.

(viii) Public Accountability : These organisations enjoy public accountability, flexibility and autonomy in its working. The accounts are audited by Comptroller and Auditor General of India and final accounts are tabled before Parliament or Legislature.

(ix) Initiative and Flexibility : Statutory Corporation have an independent identity different from the government. Though, the overall business policies are formulated by the government, they have administrative autonomy and hence operational flexibility.

(x) Enjoys Economies of Scale : As these organisations are large scale undertakings which promote social welfare, it enjoys economies of large scale business operations.

(xi) Creates Employment Opportunities : Statutory organisations generate employment opportunities for the people at large. LIC, ONGC, Air India and others employ lakhs of people in the country. This reduces government burden of providing jobs to teeming millions and as such they help government.

(xii) Enjoy Monopoly : Most of statutory organisations are monopolistic or semi-monopolistic in their areas of functioning.

(C) Demerits of Statutory Corporation:
Though statutory corporations are autonomous bodies and enjoy flexibility in their working, they have certain limitations which are as follows:
(i) Clashes Amongst Interests : All or majority directors of Statutory Corporations are appointed by the Government from different fields. As there are many members it is quite possible that their interests may clash. The smooth functioning of the corporation may be hampered.

(ii) Autonomy on Paper Only : Ministers, government officials and political parties often interfere with the working and decision making policies which affects the autonomy and flexibility of it.

(iii) Rigid Structure : Though statutory corporation have operational flexibility, they are subject to many rules and regulations. Any changes in the constitution, objects, powers, duties, etc., require amendments to be passed in the parliament which is difficult task. This reduces its flexibility.

(iv) Lack of Initiative : The statutory corporation have no profit motive. There is no competition among them. So employees do not take initiative to increase the profit.

(v) Unfair Practices : Before 1991, these corporations enjoyed monopolistic and semi monopolistic position. They were charging high prices from the consumers to cover up their inefficiencies. After 1991, due to liberalization, most of them lost their monopolistic position but skill, in practice the lack competition as they are not aware of consumer needs.

Question 5.
Explain Government Company and its features.
Answer:
(A) Meaning:

1. A Government Company is one in which atleast 51% of its paid up capital is held by the Central Government and / or the State Government.
2. State Trading Corporation (STC), Steel Authority of India (SAIL), Bharat Heavy Electricals Ltd (BHEL) etc. are some of the examples of Government Companies.
3. These companies are registered under the Indian Companies Act, 2013 and its working is governed by the rules and regulations of the act.
4. Government Companies are established for purely business purpose and to complete with the private sector. The shares of the company are purchased in the name of the President of India.
5. Government Companies may be registered as public or private limited companies.

(B) Features of Government Company:
The Government Company may be registered as public or private limited companies. These companies are established for purely business purpose and to compete with the private sector.
Following are the features of Government Company:
(i) Free from Procedural Controls: The Government companies have a right to formulate their independent policies and even make necessary changes in them. It enjoys freedom from budgetary, accounting and audit controls which are applicable to Government undertakings.

(ii) Majority of Government Directors : All or majority of directors of such companies are appointed by the Government from different fields. They may be experts from banking sector, insurance sector, who manage the day to day business affairs.

(iii) Public Accountability : The annual accounts of the company are tabled before Parliament or State Legislature for review and discussion. Thus, Government Company is accountable and answerable to the Parliament or State Legislature through the concerned Minister.

(iv) Registration under the Companies Act: The Government Company is registered under the Companies Act, 2013 and its formation, working, management and winding up a business is governed by provisions of- the Act. Government has power to modify or change certain provisions laid down in the Act.

(v) Own Staff: The employees are appointed as per the rules and regulations set by the company. Its employees are not governed by respective Government.

(vi) Promotes Social Welfare : Government Companies aims to optimise national and natural resources such as land, water, electricity, etc. It produces arms, ammunition and other defence equipments. It also brings about balanced regional development and leads to equality of income.

(vii) Objective : It operates on commercial principles and as such its aim is to make profit.

(viii) Separate Legal Entity : A Government Company is a corporate body created under the Companies Act. It has all features of a company such as legal entity, common seal, limited liability, etc. It can enter into contracts and acquire property in its own name.

(ix) Exemptions : Government Company is exempted from budget, accounting and audit laws applicable to government departments. Its accounts are audited by the Government Auditor. The Government has a right to exempt the company from any provisions of Companies Act which may come in its way of providing welfare services to the public at large.

(ix) Suitability : Government Companies are suitable for conducting manufacturing and marketing activities.

Question 6.
Explain Merits and Demerits of Government Company.
Answer:
(A) Merits of Government Company:
(i) Profitability and Accountability : It works on business principles and follows commercial approach. Though not profit oriented like private sector, it does make reasonable profit which is used for public welfare, modernisation, renovation and development. Moreover, its performance can be evaluated by the Parliament as it has public accountability.

(ii) Internal Autonomy: Government Company enjoys financial and administrative autonomy. Its dependence on Government authority is minimum. It has its own capital structure, financial plan, borrowing powers and so on.

(iii) Government Ownership ; The ownership of the government company rests with Central or State Government who owns major capital of the company and as such looks after its management and control. Government always promotes public welfare.

(iv) Foreign Capital and Technical Know how : As the government provides 51% of the capital, the rest 49% can be raised through foreign investment. By seeking foreign capital, Government companies bring advanced technology and technical know how.

(v) Acquisition of Sick Units : A government company can acquire a sick unit in the private sector without rationalisation. It can be acquired by purchasing 51% of the share capital of a private company.

(vi) Concessions and Privileges : As government owns Government Company, it enjoys various concessions, privileges, subsidies, etc. It may also get orders for the products or services from various government departments and agencies. It also has access to use financial resources of the Government.

(vii) Efficiency : Government company has to compete with the private sector companies. Hence, it tries to promote efficiency at all levels and avoids wastages wherever possible. It tries to improve its services to consumers and promotes consumer satisfaction by providing quality goods at reasonable prices.
From the above points, it could be seen that the Government Company enjoys various benefits as it is owned by the Government and blends the objectives of privately owned companies with State owned control and maximise public welfare.

(viii) Professional Management: The management of Government Company is in the hands of the Board of Directors appointed by the Government. Government exercises control on various matters through Board of Directors. They are highly qualified.

(ix) Easy Formation : The formation of Government Company is easy as there is no procedural delay and legal constraints. It does not require special Act or Parliament approval. It comes into existence through executive decision of the Government.

(x) Flexibility : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xi) Easy to Alter : The objects, powers and organisational set up of a Government Company can be altered easily. The company can take prompt decisions regarding management, finance and other related matters due to flexibility in their operations.

(xii) Enjoys Private and Public Objective : In a Government Company, attempt is made to combine the operating flexibility of privately owned companies with the advantage of state regulation and control in public interest.

(B) Demerits of Government Company:
Though Government Company enjoys various benefits due to Government ownership and autonomy, it has following limitations:
(i) Inefficiency and Corruption : The Directors have no financial stake in the company and as a result they are indifferent towards working of the company. Due to limited autonomy and petty politics, the efficiency of the enterprise is affected. It results in corruption.

(ii) Lack of Professional view : There is lack of devotion, dedication and systematic approach. In fact, there is no professional approach in various operations and working of the company.

Thus, from the above points it could be seen that there is lot of government and political interference in the Government company which brings about its inefficiency and ineffectiveness.

(iii) Domination of Ministers and Politicians : The ministers of the concerned departments are in charge of the Government Company. In view of Government ownership, political interference is quite common. The Directors try to serve and achieve their political motives rather than realisation of business goals as they are nominated for political gains and not on merits.

(iv) Red Tapism and Delay : The bureaucratic management delays in taking decision and implementing. There is no time frame and the employees are not devoted. There is often delay in preparing various documents and forwarding the same for taking action. Thus, delay, red tape, corruption, avoidance of work and shirking from the responsibility is common sight in Government Company.

(v) Autonomy only in Name : Though there is administrative autonomy, these companies face a lot of interference from the government in all the matters. Appointment of Directors, employees and its working, there is no autonomy. Autonomy is only on paper and not in practice.

(vi) Weak Public Accountability : Absence of Government audit is a major draw back in case of Government company which does not assure proper utilisation of funds. There is no control on misappropriation of funds which leads to weak public accountability.

(vii) Fear of Exposure : The working of Government Company like annual report is placed before the parliament or State Legislature. It is exposed to press and public criticism. Therefore, management of the government company often gets demoralized.

(viii) Lack of Expertise: The managerial key personnel of a Government Company are deputed from government departments. Such person, generally, lack expertise and commitment leading to lower operational efficiency of the Government Company.

(ix) Ineffective Control of Parliament : There is lack of control of the Parliament in the working of the Government company. Parliament is not having direct control, due to which the officers shirk from responsibility and postpone decision making. It affects efficiency of Government company.

(x) Poor Labour Management Relations : The employer-employee relations in the Government companies are poor. This is the result of corrupt and inefficient management of selfish trade unions. Proper work culture is found absent in Government companies.

Question 7.
Explain Multinational Corporation and its features.
Answer:
(A) Meaning:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(ii) Multinational Corporation played an important role in the Indian Economy since 1991. They have become a common feature of developing economies in the world.
A Multinational Corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.

(B) Features of Multinational Corporation:
Following are the features of Multinational Corporation:
(i) Advanced and Sophisticated Technology : Multinational company has large capital and sophisticated technology and infrastructure. As a result it undertakes diversified and multifarious activities including manufacturing, marketing, financial, research and development.

(ii) Legal Existence : MNCs are registered in their home country as per their laws and as such they enjoy separate legal status. It can sue and be sued, enter into contracts and own property in their own name.

(iii) Government: MNCs have to bring about the necessary changes in their functioning based upon the laws prevailing in the countries of their operations. For e.g. advertisement about various products on TV is given in local languages in India and in national language Hindi, to cover maximum target audience. In some cases they have to change the menu to suit local demands for e.g. McDonalds had to change its menu for its business in India.

(iv) Origin: The MNCs have origin in one country and the country to which they belong is called home country. The country in which they operate their business activities is called host country. These companies are registered in their home country and have a place of business in different countries of the world. The head office controls the operations of different branches through a network of internet. They also appoint their representatives in host countries for smooth business operations.

(v) Research & Development: MNCs give lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The R&D is undertaken for finding out new product, new system, new technology, new methods of doing business in an economical way.

(vi) International Operations : Multinational Corporation play a significant role in world trade. Nearly 40% of the world is contributed by the multinational companies.

(vii) Target Profit Oriented : Earning profit is the main motive of MNCs. For this purpose they introduce new and novel products, launch new marketing schemes, organize trade fairs and exhibitions, does lots of publicity and adopts professional approach in all its dealings.

(viii) Huge Assets and Turnover : Multinational Corporation have huge financial strength because of huge capital and assets. This enables it to develop its business potential in developing and under developing nations where they can earn handsome profits.

(ix) Mighty Economic Power: Multinational Corporation has a huge capital and assets so they have a mighty economic power. They keep on adding to their economic power through constant mergers and acquisitions of companies in host countries.

(x) Centralized Control: Multinational Corporation is managed by parent company. It manages affairs of the subsidiary company from the respective home country. Multinational corporations are controlled by parent companies and mostly home strategic.

(xi) Area of Operation : MNCs operate in different countries of the world and deal in multiple products on a large scale. They operate in those countries where chance of maximizing profit is more. MNCs of developed nations dominate the global market and they undertake production or marketing activities and so on. For . e.g. Coca Cola, Tata Tea and so on have global presence.

(xii) Professional Management: A MNC employs professionally qualified personnel to handle huge funds, advanced technology and international operations.

Question 8.
Explain Merits and Demerits of Multinational Corporation
Answer:
(A) Introduction:
(i) Global enterprises or Multinational Corporations are the Corporations which under take business activities in more than one country. Any company having its head office in one country and place of business in other countries is called a Multinational Corporation.

(ii) Multinational Corporation played an important role in the Indian Economy since 1991. They have become a common feature of developing economies in the world.
A Multinational Corporation is a corporation which operates, in addition to the country in which it is incorporated, in one or more other countries.

(B) Merits of Multinational Corporation:
Following are the merits of Multinational Corporation.
(i) Proper use of Idle Resources : The national income of host country increases as MNCs use idle physical and human resources with latest technologies.

(ii) Inflow of Foreign Capital: Multinational corporations bring much needed foreign capital for the rapid development of developing countries. This capital is useful for growth of domestic country.

(iii) Promotion of International Brotherhood and Culture: MNCs integrate economies of various nations with the world economy and promote international brotherhood and culture with peace and prosperity in the world.

(iv) End of Local Monopolies : In global market, Multinational Corporations end local monopolies of host . countries improving their products and reduces prices.

(v) Technical Development: Multinational corporations gives lot of importance to research and development activities. They are also fully equipped and have necessary infrastructure. The research and development is undertaken for finding out new product, new system, and new technology of doing business in an economical way.

(vi) Improvement of Standard of Living : Multinational Corporations supply their product at very reasonable prices in the global market. E.g. the price of wrist watches, cell phones, etc. This helps to improve the standard of living of people of host countries.

(vii) Managerial Development : Multinational corporations have highly specialized and expert team of management. These experts are hired from different countries of the world. Also their functioning is highly professional. They adopt new technology and use huge resources.

(viii) Employment Generation : MNCs create large scale employment opportunities in host countries and . helps in reducing unemployment.

(C) Demerits of Multinational Corporation:
(i) Danger for Domestic Industries : Multinational Corporations have vast economic power so they are danger to domestic industries which are still in process of development. Domestic industries not so powerful to face the challenges of Multinational Corporation.

(ii) Create Problem for Environment: Profit is sole objective of multinational corporation. Such companies damage environment of developing countries. To lower the price of goods they dump lower standard quality product which harms local soil, water and air.

(iii) Outsourcing of Job: Normally MNCs outsource the job work due to lower cost, due to this their liabilities towards employees are reduced.

(iv) Misuse of Mighty Status : Multinational Corporations have powerful financial strength because of huge capital. They can afford to bear losses for a long while in the hope of earning huge profits. They have ended local competition and achieved monopoly. This may be unfair.

(v) Multinational Corporations Import Skilled Labour : Most companies in this position imports the skilled labour they require from other economic to meet their needs. That means the best jobs, especially in the developing world, are given to people who don’t even live in the local economy. Those wages do not offer the same economic benefits because spending occurs internationally instead of at the local level.

(vi) Interference : Multinational Corporations are gigantic organizations with huge finance and efficient management. They try to bring about expansion of business through mergers, acquisitions and amalgamations. As they are huge corporations they exert influence on political parties and try to spread political ideology of their home country.

(vii) Take away Profits to Home Country : Profits made by multinational corporations are not used in the same country from where they are earned. They are not interested in development of other countries. They do not use their profits on infrastructural development of other countries.

(viii) E ncourage Political Corruption : To get favourable terms and conditions in host country multinational corporations bribe to political parties.

(ix) Repatriation of Profiles : Multinational Corporations get huge profit. Repatriation of profit by Multinational Corporation adversely affects the foreign exchange reserves of the host country. If means that a large amount of foreign exchange goes out of host country.