Business Studies: CUET Mock Test - 8

Employees do not characterise business environment. Business environment refers to the external forces such as individuals, enterprises, situations, and other such forces that affect the performance of the organisation. Employees are integral to an organisation and does not characterise its environment.

The terms "mergers" and "acquisitions" are often used interchangeably, although in actuality, they hold slightly different meanings. When one company takes over another entity, and establishes itself as the new owner, the purchase is called an acquisition.

Change in agricultural prices does not exotom the impact of Government policy changes on business and industry.

The trend of health and fitnness has created a demand for products is a social environment...... because these goods results in consumption by all the people in the society so it is generally related to social environment.

Liberalization refers to relaxation of government restrictions usually in areas of social and economic policies. It refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises.

Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization. 
Liberalization is the result of New Industrial Policy which abolished the "License system". All industries except six major industries were liberalized. As a result industries grew rapidly and therefore liberalization also means deregulation and delicensing of industries. 

Economic Environment  consists of Gross Domestic product, Income at National level and per capita level. Profit earning rate, monetary and fiscal policy of the government etc. It helps to keep track of the economy affecting the business.

Because subsidy is given by govt. N it is giving subsidy to only a particular industry not to all the industry.

Panning is a time consuming process because it involves collection of information, it’s analysis and interpretation thereof. This entire process takes a lot of time specially where there are a number of alternatives available.

Rational decision making is a multi-step process for making choices between alternatives. The process of rational decision-making favors logic, objectivity, and analysis over subjectivity and insight. The word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.
The rational model also assumes:
1. An individual has full and perfect information on which to base a choice.
2. Measurable criteria exist for which data can be collected and analyzed.
3. An individual has the cognitive ability, time, and resources to evaluate each alternative against the others.

No Smoking in Factory comes under Rules.Rules are specific statements that inform what is to be done. They do not allow for any flexibility or discretion. It reflects a managerial coercion that a certain action must or must not be taken.

General rule is a rule that is applicable to a class of cases or circumstances. It can also be formal order or direction made by a court, as for governing the procedure of the court or a general norm mandating or guiding conduct or action in a given type of situation. 

School rules are usually associated with classroom management and school discipline.According to the students, relational rules are the most important in school. Students also value protecting and structuring rules as important because of the meaning giving to them.

Planning is ascertaining prior to what to do and how to do. It is one of the primary managerial duties. Before doing something, the manager must form an opinion on how to work on a specific job. Hence, planning is firmly correlated with discovery and creativity.

Policy refers to the general guidelines that brings uniformity in the decion making to accomplish predetermined goal. here, the policy is to bring only trained engineers.

Planning is commitment to a certain work to achieve specific results. The two types of plane are Standing plans and Single-use plans.
Standing Plans- These plans are formulated to guide managerial decisions and actions on problems which are recurring in nature. They are also known as ‘repeated use plans’.
Single use plans- These plans are used to solve a particular problem that is non-recurring in nature.

Programmes are the combinations of objectives,policies,procedure and rules all these plans together form a program.The programs are made to get the systematic working in the organisation. For example:-Construction of shopping mall,Development of a new product etc. , And development of a new product involves objective policies procedure and rules.

Profitability can be increased by various methods like reducing cost, increasing turnover costs, increasing productivity, and increasing efficiency. 
All of the mentioned methods can be achieved by effective planning. By achieving these methods by planning it will help in increasing profitability, not decreasing it.

Single use plan is developed to address a specific organizational situation. Such a plan is typically used only once because the specific situation to which they apply does not recur. Consider, for example, the plan of SAP Americas, a leading provider of enterprise resource planning and ecommerce solutions, to build a new corporate headquarters. A sophisticated plan was necessary to finance, construct, and move into the new building.

Method is not a strict rule or a rigid policy like a rule or a law, which prohibits you from doing a certain thing and that's why no penalty is charged. it's not a necessity to follow a method, whereas for a law or a rule it is.

A decision matrix is a series of values in a table of columns and rows that allows a person to visually compare possible solutions by weighing their variables based on importance.
Performance management is not part of the decision-making matrix, it is concerned with performance of organization, a department, employee or a particular task.

Training, Lectures and Seminar are different types of methods.  Methods are a standard way of doing jobs for attaining objectives. They are more detailed than procedure. They are helpful in simplifying the work for different jobs and different methods are adopted.

A cash flow budget is a summary of the projected cash inflows and outflows for a business over a period of time. The time period is usually a future accounting period and is divided into quarters or months.

A program is a detailed plan of action aimed at accomplishing a clear business objective, with details on what work is to be done, by whom, when, and what means or resources will be used.