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Business Organization Questions

Business

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6 views5 pages

Business Organization Questions

Business

Uploaded by

sharshad939
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Business Organization - Important Questions

1. Importance of Business
Business is essential as it provides goods and services, creates jobs, drives economic growth,

improves living standards, and fosters innovation and development in society.

2. Limited Liability
Limited liability means that the financial responsibility of a company's shareholders is restricted to

the amount they have invested in the company. Personal assets are not at risk.

3. Difference between Industry & Commerce


- Industry: Involves the production or manufacturing of goods (e.g., textile or automotive industries).

- Commerce: Involves trade and activities like buying, selling, and distribution of goods and services.

4. Retail Trade
Retail trade refers to selling goods and services directly to consumers in small quantities for

personal use.

5. Factors of Layout
Key factors include:

1. Space utilization

2. Workflow efficiency

3. Safety and security

4. Employee convenience

5. Future scalability

6. Merits of Sole Proprietorship


1. Simple to start and manage

2. Owner retains full control and profits


3. Low setup costs

4. Flexibility in decision-making

5. Personal relationships with customers

7. Principles of Business Combination


1. Economies of scale

2. Avoidance of competition

3. Combined market power

4. Resource sharing

5. Profit maximization

8. Define Co-operative Societies


Co-operative societies are voluntary associations of individuals who come together to fulfill common

economic, social, or cultural needs. They operate democratically, sharing profits and benefits among

members.

9. One-Person Company (OPC)


An OPC is a type of business entity in which a single individual owns the company. It provides

limited liability and separate legal identity, while allowing sole ownership.

10. Difference between Business & Profession


- Business: Involves activities of buying, selling, or manufacturing to earn profits.

- Profession: Involves specialized knowledge or skills, often requiring formal qualifications (e.g.,

doctors, lawyers).

11. Private Company


A private company is a business entity with limited liability, owned privately by individuals or groups.

It restricts the transfer of shares and limits the number of shareholders (usually up to 200).

12. Nominal Partner


A nominal partner is a person who allows their name to be used in a business but does not actively

participate in management or share in profits or liabilities.

13. Define Optimum Size


Optimum size refers to the ideal scale of a business where it achieves maximum efficiency and

minimum costs while meeting market demands.

14. What is meant by the Size of a Business Unit?


The size of a business unit indicates its capacity, scale of operations, and market presence. It can

be classified as small, medium, or large based on investment, output, or workforce.

15. What is meant by Business Combination?


A business combination is the merger or consolidation of two or more companies to form a single

entity. This is done to reduce competition, achieve synergies, and increase market share.

16. Difference between Rationalism and Nationalism


- Rationalism: Focuses on logical reasoning and evidence-based decisions.

- Nationalism: Prioritizes the interests, culture, and identity of a nation over global considerations.

17. What is a Firewall?


A firewall is a security system that monitors and controls incoming and outgoing network traffic. It

acts as a barrier to protect systems from unauthorized access and cyber threats.

18. Describe Various Social and Ethical Implications in IT


- Social Implications: Privacy concerns, digital addiction, and social isolation.

- Ethical Implications: Data misuse, intellectual property rights violations, and biased algorithms.

19. Define Malware and Explain its Types


Malware (malicious software) refers to software designed to harm or exploit computers. Types

include:
1. Viruses: Attach to files and spread.

2. Worms: Spread independently over networks.

3. Trojans: Appear legitimate but cause harm.

4. Spyware: Collects user data without consent.

20. What is meant by Privacy and Data Protection?


Privacy involves the right to control personal information, while data protection refers to securing

data from unauthorized access, misuse, or breaches.

21. What is meant by Synthetic Industry?


A synthetic industry involves combining raw materials or components to produce a finished product.

For example, the chemical industry combines elements to create products like plastics.

22. Qualities of a Successful Businessman


1. Vision and innovation

2. Decision-making skills

3. Leadership abilities

4. Risk-taking capacity

5. Effective communication

23. Active Partner


An active partner is involved in the day-to-day management of the business and shares in both

profits and liabilities.

24. Sleeping or Dormant Partner


A sleeping partner invests in the business but does not participate in its operations. They share

profits but have limited involvement in management.

25. What is meant by Plant Layout?


Plant layout refers to the physical arrangement of equipment, machinery, and facilities within a
factory to ensure efficient production and workflow.

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