Fundamentals of Business Studies

Faisal AB😎
&
Saim Siddik😴
 QUESTION INDEX
THE BUSINESS ENTERPRISE

1. What is business? (CSE-2019,21,22) Discuss the Features (CSE-2021),

importance and Functions (CSE-2019,22), Objective of the business. (CSE-
2019)

2. Describe the scope or subjects or major types of business.

3. Is Business a Profession?!🤔
4. Discuss the types of business organizations. (CSE-2019)
5. Discuss the Features of Sole Proprietorship.
6. Discuss the causes of survival of sole proprietorship business side by side
with large organization.

7.Discuss the suitable fields for sole proprietorship business.

8.Discuss the features of partnership business.

9.Describe the methods of registration of partnership business.

10.Discuss the consequences of the non-registration of partnership business.

(CSE-2020)

11.Describe the types of partnership business and classification of partners.

12. Dissolution of Partnership Business. (CSE-2022)

13. Discus the characteristics of company organization. 14.Discuss the
classifications of company organization.

15. Describe the methods of the formation of a company organization.

16. Define co-operative society. State the principles of co-operative society.

17. Discuss the importance and types of co-operative society.

18.What is state enterprise? Discuss the objectives of state enterprise.

CSE-2021|What are the various significant fields of state enterprise.

20. What is meant by entrepreneurship and entrepreneur? Discuss the

functions of an entrepreneur.

CSE-2019,21| Distinguish between entrepreneur and entrepreneurship.

CSE-2021| Discuss the role of entrepreneurship in an economic development
in Bangladesh.

21. What is franchising?

22. Define small business. Discuss the features of small business (CSE-
2020) and importance of small business.
23. Discuss the advantages and disadvantages of small business.

THE ENVIRONMENT OF THE BUSINESS

25. What is called business environment? Define business values, business
ethics and business morality.

26. What is meant by social responsibility of business? (CSE-2021) Discuss

the social responsibility of business organization towards various parties.

CSE-2021| Why should business be socially responsible?

CSE-2021| Discuss the types of business environment.
CSE-2021| hat is international business?
28. What is contract? Discuss the essential elements or features of
contract.
 MANAGEMENT AND ORGANIZATION
30. Define management. (CSE-2019,21,22) Who is manager? Discuss the
features (CSE-2022), functions (CSE-2019) and principles of
management(CSE-2021).
31. What is management cycle? (CSE-2020) Is management a profession?

CSE-2022| "Management is the combination of Science and Arts" - Explain.

Or Is management a science or an art? Explain. (CSE-2022)

Cse-2020| Are principles of management equally applicable for all types of

organizations? Explain.

CS-2022| " Theory X and theory Y are connected with the nature of people.
" - How does the job situation affect the application for this theory?

32. Define organization. Discuss the features, importance, classification and

principles of organization.

33. Define authority and delegation of authority. Discuss the necessity of

delegation of authority.
 HUMAN RESOURCES

34. Discuss the principles or considering factors of delegation of authority.

40. What is motivation? Discuss the features, importance and motivation

cycle.

41. Discuss the various ways or methods of motivation. (CSE-2020_

Financial Method)

42. What is meant by human resource management? Describe the

importance of human resource management. (CSE-2022)

43. Define recruitment of employee and selection of employee. Show the

difference between recruitment and selection of employee.

CSE-2020| Write down the principles of Human resource management.

CSE-2019,20,21,22| Explain the basic components/ Elements of Humen

Resource Management.

CSE-2019| What challenges do HRM, managers and employees

face in the workplace of the 21th century?

CSE-2022| What are the objectives of HRM?

45. Define training. Discuss the importance of training and methods of

training. (CSE-2020,21)
 MARKETING
48. What is meant by market, marketing (CSE-2020) and marketing
management? (CSE-2021,22) Discuss the importance and functions of
marketing. (CSE-2019)

CSE-2022| What are the steps of marketing process?

CSE-2022| What are the steps of marketing process?
CSE-2019| Write the differences between marketing and distribution.
49. Show the difference between marketing and selling.
CSE-2020,21,22| Briefly explain the 7C's of customer.
50. Discuss the 4Ps and 4Cs of marketing.
51. What is product? Write down its features. (CSE-2019) Discuss different
type of consumer product.
52. What is meant by product's life cycle? Describe the stages in the
product's life cycle.
CSE-2020| Discuss product life cycle with their characteristics, marketing
objectives, marketing strategies with appropriate examples.
53. What is meant by price? Describe the importance / objective of price.
54. Discuss the major strategies for pricing and initiatives for new products.
55. Define market segmentation. Discuss different levels of market
segmentation.
 FINANCIAL MANAGEMENT
56. What is money? Discuss the function of money.
57. What is meant by financial management? Discuss the functions and
principles of business finance.
58. Define risk. Describe the essential characteristics of an insurable risk.
59. Describe the types of insurance.
[Q&A of previous years will be included in the next edition]
ACCOUNTING AND INFORMATION SYSTEM
60. What is accounting? Discuss the objectives/importance of accounting.
61. What is an accounting information system (AIS)? Discuss the functions
of an accounting information system.

62. What is a computer? Discuss the importance of computers.

[Q&A of previous years will be included in the next edition]
1. What is business? (CSE-2019,21,22) Discuss the Features (CSE-2021),
importance and Functions (CSE-2019,22), Objective of the business. (CSE-
2019)
Ans:
Definition:
Business refers to the organized efforts and activities of individuals to
produce and sell goods and services for profit. It encompasses various forms of
commercial activities and aims at providing value to customers while generating revenue.

Features of Business:
1. Exchange of goods and services: All business activities are directly or indirectly
concerned with the exchange of goods or services for money or money's worth.

2. Deals in numerous transactions: In business, the exchange of goods and services is

a regular feature. A businessman regularly deals in a number of transactions and not just
one or two transactions.
3. Deals in goods and services: In business there has to be dealings in goods and service.
Goods may be divided into following two categories :-

i. Consumer goods: Goods which are used by final consumer for consumption are
called consumer goods e.g. T.V., Soaps, etc.

ii. Producer goods: Goods used by producer for further production are called
producers goods e.g. Machinery, equipments, etc. Services are intangible but can be
exchanged for value like providing transport, warehousing and insurance services,
etc.

4. Profit is the main Objective: The business is carried on with the intention of earning a
profit. The profit is a reward for the services of a businessman.

5. Risks and Uncertainties: Business is subject to risks and uncertainties. Some risks, such
as risks of loss due to fire and theft can be insured. There are also uncertainties, such as
loss due to change in demand or fall in price cannot be insured and must be borne by the
businessman.

6. Business skills for economic success: Anyone cannot run a business. To be a good
businessman, one needs to have good business qualities and skills. A businessman needs
experience and skill to run a business.

7. Buyer and Seller: Every business transaction has minimum two parties that is a buyer
and a seller. Business is nothing but a contract or an agreement between buyer and seller.
8. Connected with production: Business activity may be connected with production of
goods or services. In this case, it is called as industrial activity. The industry may be
primary or secondary.

9. Marketing and Distribution of goods: Business activity may be concerned with

marketing or distribution of goods in which case it is called as commercial activity.

10.To Satisfy human wants: The businessman also desires to satisfy human wants through
conduct of business. By producing and supplying various commodities, businessmen try
to promote consumer's satisfaction.

11.Social obligations: Modern business is service oriented. Modern businessmen are

conscious of their social responsibility. Today's business is service-oriented rather than
profit-oriented.

Economic Importance of Business:

1. Economic Growth: Businesses are engines of economic growth. By producing goods

and services, they contribute to the Gross Domestic Product (GDP) of a country.
Increased production leads to higher economic output and overall economic development.

2. Employment Generation: Businesses create jobs, providing employment opportunities

for a large portion of the population. This reduces unemployment rates and helps in
improving the standard of living.

3. Innovation and Technological Advancement: Through research and development

(R&D), businesses drive innovation. They develop new products, services, and
technologies, which can lead to increased productivity and new market opportunities.

4. Capital Formation: Businesses contribute to capital formation by investing in buildings,

machinery, and technology. This, in turn, enhances the productive capacity of the
economy.

5. Export and Foreign Exchange Earnings: Businesses that engage in international trade
bring in foreign exchange, which is crucial for a country’s balance of payments.
Exporting goods and services helps in diversifying the market and reducing dependency
on the domestic market.

6. Infrastructure Development: Business activities often lead to the development of

infrastructure such as roads, ports, and telecommunications, which are essential for
economic activities.
7. Tax Revenue: Businesses pay taxes to the government in the form of corporate taxes,
sales taxes, and other duties. These taxes are a significant source of revenue for the
government, which can be used for public services and infrastructure projects.

Social Importance of Business:

1. Improvement in Standard of Living: By producing a variety of goods and services,

businesses meet the needs and wants of consumers. This access to goods and services
improves the quality of life for individuals and communities.
2. Community Development: Many businesses engage in corporate social responsibility
(CSR) initiatives, contributing to the development of communities through education,
health, and environmental sustainability programs.
3. Employment and Skill Development: Businesses not only provide jobs but also invest in
the training and development of their employees. This leads to skill enhancement and better
career opportunities for individuals.
4. Innovation for Social Good: Businesses often innovate to solve social problems, such as
developing sustainable products, improving healthcare, and creating technologies that
enhance social well-being.
5. Empowerment and Inclusivity: Businesses can play a role in empowering marginalized
communities by providing employment opportunities and ensuring inclusive growth. This
can include promoting gender equality and supporting small and medium enterprises
(SMEs).
6. Consumer Choice: Businesses increase consumer choice by offering a variety of products
and services. This competition among businesses can lead to better quality and lower prices
for consumers.

Functions of Business:
1. Finance: Managing financial resources, including investment, budgeting, accounting, and
securing funding.
2. Human Resources: Recruiting, training, and managing employees to ensure a
productive workforce.
3. Production: Creating goods or services through the transformation of raw materials and
resources.
4. Marketing: Identifying customer needs, promoting products, and distributing them to
reach the target market.
5. Operations: Overseeing the day-to-day activities that ensure the business runs smoothly
and efficiently.
6. Sales: Converting prospects into customers through direct interaction and transactions.
7. Customer Service: Providing support to customers before, during, and after the purchase
to ensure satisfaction and loyalty.
8. Research and Development (R&D): Innovating and improving products and processes
to stay competitive in the market.
9. Compliance: Adhering to laws, regulations, and standards governing business
operations.
10.Strategic Planning: Setting long-term goals and devising plans to achieve them,
ensuring the business remains viable and competitive.

Objectives of Business:
1. Profit Maximization: The primary objective of most businesses is to earn a profit,
which is the financial reward for taking risks and providing goods or services. Profit is
essential for business growth, survival, and rewarding investors or shareholders.
Example: A retail store focuses on selling products at a margin that maximizes its
earnings.
2. Customer Satisfaction: Businesses aim to meet or exceed customer expectations by
delivering quality products or services. Satisfied customers are more likely to return
and recommend the business to others.
Example: A restaurant ensures excellent food and service to attract and retain
customers.
3. Market Share Expansion: Increasing the business’s share in the market is an
important objective. Expanding market share can improve the company's competitive
position and profitability.
Example: A mobile phone company lowers prices or introduces new features to attract
a larger customer base.
4. Growth and Expansion: Businesses strive to grow by increasing sales, expanding
into new markets, or diversifying their product offerings. Growth helps a business stay
competitive and capitalize on new opportunities.
Example: A small software company expands its operations to international markets.
5. Social Responsibility: Many businesses aim to give back to society through social
responsibility initiatives. This involves contributing to the welfare of the community,
environmental sustainability, and ethical practices.
Example: A company adopts eco-friendly practices or supports charitable activities in
the community.
6. Innovation and Development: Businesses aim to innovate by developing new
products, services, or processes. Innovation keeps the business relevant and helps meet
the changing needs of customers.
Example: A tech company invests in research and development to create cutting-edge
technology.
7. Employee Welfare: Businesses also focus on the well-being of their employees by
providing a good working environment, fair compensation, and opportunities for
growth. Happy employees are more productive and loyal to the company.
 Example: A company provides employee training programs and health benefits to
enhance employee satisfaction.
8. Survival: In competitive or challenging economic conditions, the key objective for
many businesses is survival. This involves maintaining enough revenue to cover
expenses and keep the business running.
Example: During a recession, a business might cut costs and focus on core operations
to stay afloat.
9. Economic Contribution: Businesses aim to contribute to the economy by creating
jobs, generating income, and paying taxes. This helps in the overall development of
the society and country.
Example: A manufacturing firm employs hundreds of workers, contributing to the
local economy.
2. Describe the scope or subjects or major types of business.
Ans:

The scope of business encompasses a wide range of activities and subjects, which can be
broadly categorized into commerce, industry, and direct services. Each of these categories
plays a crucial role in the functioning of the business ecosystem and the economy at large.

1. Commerce: Commerce involves all activities related to the exchange of goods and
services. It ensures the smooth and efficient flow of goods from producers to consumers.
The key components of commerce include:

a) Trade:

I. Internal Trade: Buying and selling within a country (wholesale and retail).
II. External Trade: International trade (import, export, entrepôt).

b) Aids to Trade

I. Transport and Logistics: Movement of goods.

II. Warehousing: Storage of goods.
III. Banking and Finance: Loans, credit, payment processing.
IV. Insurance: Risk protection.
V. Advertising and Marketing: Promoting products.
VI. E-commerce: Online buying and selling.
2. Industry: Industry refers to the production of goods and services. It involves the
transformation of raw materials into finished products. Industries can be classified into
several categories:
I. Primary Industry: Extraction of raw materials (agriculture, mining).
II. Secondary Industry: Processing raw materials into finished goods
(manufacturing, construction).
III. Tertiary Industry: Providing services (retail, hospitality, healthcare, education).
IV. Quaternary Industry: Knowledge-based services (IT, R&D, consulting).

3. Direct Services: Direct services meet the needs of consumers directly and include:

I. Professional Services: Legal, accounting, medical services.

II. Personal Services: Beauty, wellness, education, domestic services.
III. Public Services: Government, utilities, public transportation.
IV. Social Services: Non-profit organizations, community services.
3. Is Business a Profession?!🤔
Ans:
Business is not strictly categorized as a profession like medicine or law, but it shares many
professional characteristics.

Characteristics of a Profession:
Specialized Knowledge and Skills: Acquired through formal education and training.
Certification or Licensing: Required for practice in many professions.
Code of Ethics: Guides behavior and decision-making.
Continuous Learning: Ongoing education to stay updated.
Service Orientation: Focus on serving the public or clients responsibly.
Professional Body or Association: Oversees standards and continuous development.

How Business Compares:

Specialized Knowledge and Skills: Business degrees (e.g., BBA, MBA) and experience
provide necessary skills.

Certification or Licensing: Needed in specific areas like accounting (CPA) or financial

planning (CFA).

Code of Ethics: Many businesses and associations adopt ethical guidelines.

Continuous Learning: Business professionals pursue ongoing education.
Service Orientation: Businesses aim to serve customers and create value.
Professional Body or Association: Associations like the AMA and CIMA provide standards
and resources.

While not a traditional profession, business incorporates professionalism through high

standards, ethical behavior, and continuous improvement.

Business is not a profession in the traditional sense but shares many professional
characteristics. Specific areas within business, such as accounting and financial planning, do
qualify as professions. Overall, business can be considered a professional field with its own
standards, ethics, and continuous learning requirements.
4. Discuss the types of business organizations. (CSE-2019)
Ans:
These are the basic forms of business ownership:
1. Sole Proprietorship:
A sole proprietorship is a business owned by only one person. It is easy to set-up and is the
least costly among all forms of ownership.The owner faces unlimited liability; meaning, the
creditors of the business may go after the personal assets of the owner if the business cannot
pay them.The sole proprietorship form is usually adopted by small business entities.

2. Partnership:
A partnership is a business owned by two or more persons who contribute resources into the
entity. The partners divide the profits of the business among themselves.
In general partnerships, all partners have unlimited liability. In limited partnerships, creditors
cannot go after the personal assets of the limited partners.

3. Corporation:
A corporation is a business organization that has a separate legal personality from its owners.
Ownership in a stock corporation is represented by shares of stock.
The owners (stockholders) enjoy limited liability but have limited involvement in the
company's operations. The board of directors, an elected group from the stockholders,
controls the activities of the corporation.

4. Limited Liability Company:

Limited liability companies (LLCs) in the USA, are hybrid forms of business that have
characteristics of both a corporation and a partnership. An LLC is not incorporated; hence, it
is not considered a corporation.
Nonetheless, the owners enjoy limited liability like in a corporation. An LLC may elect to be
taxed as a sole proprietorship, a partnership, or a corporation.

5. Cooperative:
A cooperative is a business organization owned by a group of individuals and is operated for
their mutual benefit. The persons making up the group are called members. Cooperatives
maybe incorporated or unincorporated.
5. Discuss the Features of Sole Proprietorship.
Ans:

Features of Sole Proprietorship:

1. Single Ownership: The business is owned and operated by one individual. The owner
has complete control and authority over all business decisions.

2. Full Control: The owner has full control over the management and operations of the
business, allowing for quick decision-making without the need for consultation or
approval from others.

3. Easy Formation and Dissolution: Starting a sole proprietorship is relatively simple and
involves fewer legal formalities compared to other business forms. Similarly, dissolving
the business is straightforward as it involves the owner's decision.

4. Limited Capital: The capital for the business is usually limited to the owner's personal
funds or what can be borrowed based on personal credit.

5. Unlimited Liability: The owner is personally liable for all the debts and obligations of
the business. This means personal assets can be used to settle business debts.

6. Flexibility: The owner can quickly adapt to changes in the market or industry due to the
lack of complex organizational structures.

7. Personal Connection with Customers: Sole proprietors often build strong personal
relationships with their customers, which can lead to higher customer loyalty and repeat
business.

8. Retention of Profits: All profits generated by the business belong to the owner. There is
no need to share profits with partners or shareholders.

9. Secrecy: Business affairs and financial information can be kept private, as the owner is
not required to publish accounts or hold meetings.

10.Direct Taxation: The business income is considered the owner's personal income and is
taxed accordingly. The business itself is not subject to separate taxation.
6. Discuss the causes of survival of sole proprietorship business side by side
with large organization.

Ans:

Despite the dominance of large organizations, sole proprietorships continue to thrive due to
several key advantages and factors:

1. Flexibility and Agility:

a. Quick decision-making.
b. Easy adaptation to market changes.

2. Personalized Customer Service:

a. Strong customer relationships.
b. Tailored services.

3. Lower Operating Costs:

a. Minimal overhead.
b. Efficient operations.

4. Niche Markets:
a. Specialization in specific markets.
b. Unique product offerings.

5. Community Engagement:
a. Strong local presence.
b. Support for the local economy.

6. Entrepreneurial Spirit:
a. High motivation and passion.
b. Direct stake in success.

7. Ease of Starting and Closing:

a. Simpler formation process.
b. Easier business exit.

8. Technology and Online Presence:

a. Use of digital tools.
b. Global reach via e-commerce.

9. Customer Loyalty and Trust:

a. High trust and reputation.
b. Strong customer retention.
7.Discuss the suitable fields for sole proprietorship business.
Ans:

Sole proprietorships are particularly well-suited for fields where the business can capitalize
on the strengths of being small, flexible, and personally managed. Here are several fields
where sole proprietorships can thrive:

1. Retail and E-commerce: Boutique Stores, Online Stores etc.

2. Professional Services: Consulting, Freelancing etc.

3. Personal Services: Beauty and Wellness, Home Maintenance etc.

4. Technology Services: IT Support, Software Development etc.

5. Financial Services: Accounting and Bookkeeping, Financial Planning etc.

6. Educational Services: Tutoring, Music and Dance Instruction etc.

7. Food and Beverage: Catering, Food Trucks and Stalls, Bakeries and Cafes etc.

8. Creative Arts and Crafts: Art Studios, Crafts etc.

9. Health and Wellness: Personal Training, Nutritional Counseling etc.

10.Real Estate: Property Management, Real Estate Agent etc.

11.Marketing and Advertising: Social Media Management, Content Creation etc.

8.Discuss the features of partnership business.
Ans:

Features of a partnership business:

1. Voluntary Association: Partnerships are formed by an agreement between two or
more individuals who decide to carry on a business together.

2. Partnership Agreement: Partnerships are governed by a partnership agreement,

which outlines the terms and conditions of the partnership, including profit-sharing,
decision-making, roles and responsibilities, and procedures for admitting new partners or
dissolving the partnership.

3. Joint Ownership and Control: Partners jointly own and control the business. Each
partner has a say in the management and decision-making processes of the partnership,
typically in proportion to their ownership stake or as per the partnership agreement.

4. Shared Profits and Losses: Partnerships distribute profits and losses among the
partners according to the terms of the partnership agreement, typically based on their
contribution or as per the agreement terms.

5. Mutual Agency: Each partner can act on behalf of the partnership and bind it to
agreements and contracts, known as mutual agency. This means partners are both
principals and agents.

6. Legal Entity: While partnerships are not considered separate legal entities from their
owners, they can enter contracts, sue, and be sued in the partnership's name.

7. Unlimited Liability: Partnerships usually have unlimited liability, meaning each

partner is personally liable for the debts and obligations of the business, including those
incurred by other partners.

8. Limited Life: Partnerships have a limited life span and may dissolve upon the
occurrence of certain events specified in the partnership agreement, such as the death,
withdrawal, or bankruptcy of a partner, unless otherwise agreed upon.

9. Ease of Formation: Compared to corporations, partnerships are relatively easy and

inexpensive to form. They require minimal legal formalities, typically involving drafting
and signing a partnership agreement.
10. Taxation: Partnerships are pass-through entities for tax purposes, meaning the
profits and losses "pass through" the business to the individual partners, who report them
on their personal tax returns. The partnership itself does not pay taxes on its income.
11. Types of Partnerships: Partnerships can take various forms, including general
partnerships (GPs), limited partnerships (LPs), and limited liability partnerships (LLPs),
each with its own legal and tax implications
9.Describe the methods of registration of partnership business.
Ans:
Registering a partnership business is a simple process but requires following a few steps.
Here’s breakdown:
1. Choose a Partnership Name: Select a unique name for your business. Make sure it does
not match or conflict with any existing business names.

2. Create a Partnership Deed: Prepare a "Partnership Deed," which is a legal document

stating the rules and details of the partnership. It should include:
I. Name of the partnership.
II. Partners' names and addresses.
III. The business's objectives.
IV. Profit-sharing ratios.
V. Duration of the partnership (if applicable).
VI. Other terms like management roles and dispute resolution.
3. Stamp the Partnership Deed: Get the Partnership Deed stamped by purchasing non-
judicial stamp paper as per the Stamp Act.

4. Register with the Registrar of Firms:

a) Submit the Partnership Deed, along with a filled-up application form (Form I), to the
Registrar of Firms in the area where your business is located.
b) The application should include:
i. The firm’s name.
ii. The place of business.
iii. Partners' names and addresses.
iv. The date of joining of each partner.
c) Pay the necessary registration fees.

5. Obtain a Certificate of Registration: Once the Registrar verifies the documents, they
will issue a "Certificate of Registration," confirming your partnership’s legal existence.
6. Apply for a Trade License: You also need to apply for a trade license from the local city
corporation or municipality to legally run your business.
7. TIN (Taxpayer Identification Number): Each partner and the business may need a TIN
to comply with tax regulations.

These steps make your partnership business legally valid.

10.Discuss the consequences of the non-registration of partnership business.
(CSE-2020)
Ans:

The Partnership Act of 1932 doesn't require partnership firms to register, but it strongly
suggests it. Here's why not registering a partnership can be a problem, as detailed in Section
69 of the Act:

1. Limited Legal Support:

I. Can't Sue Co-Partners or Third Parties: If the business faces internal

conflicts or issues with external contracts, an unregistered firm can't take legal action
against the partners or third parties. This means the firm loses its right to sue anyone.

II. Can't Use Set-Off Claims: Section 69(3) explains that if the firm owes money
(The firm has debts or liabilities to pay to others (creditors) ) and is also owed money
(The firm has receivables or amounts that others (debtors) are supposed to pay to the
firm), it can't balance these debts through legal set-off claims if it’s not registered.

2. Vulnerability to Legal Actions:

I. Third Parties Can Sue the Firm: Even though an unregistered firm can't sue
others, it can still be sued by third parties. Lack of registration doesn't protect it from
being taken to court.

II. Partners Can't Sue Each Other: If there's a dispute between partners, an
unregistered firm means they can't take legal action against each other for any breaches or
conflicts.

3. Restricted Business Options:

Can't Convert to Other Entities: An unregistered firm can't transform

into another corporate entity like a Limited Liability Partnership (LLP), which
limits its growth and flexibility.
11.Describe the types of partnership business and classification of partners.
Ans:

Types of Partnership Business:

1. General Partnership (GP):
a. All partners share equally in the management, profits, and liabilities of the
business.
b. Each partner is personally liable for the debts and obligations of the partnership.

2. Limited Partnership (LP):

a. Consists of at least one general partner and one or more limited partners.
b. General partners have unlimited liability and manage the business.
c. Limited partners have limited liability and are typically passive investors,
contributing capital but not actively participating in management.

3. Limited Liability Partnership (LLP):

a. Protects each partner from personal liability for the negligence or misconduct of
other partners.
b. All partners have limited liability, similar to shareholders in a corporation.
c. Often favored by professional service firms such as law and accounting practices.

Classification of Partners:
1. General Partners:
a. Active participants in the management and operations of the business.
b. Have unlimited liability for the debts and obligations of the partnership.
c. Typically share equally in profits and losses unless otherwise specified in the
partnership agreement.

2. Limited Partners:
a. Often passive investors who contribute capital to the partnership but do not actively
participate in management.
b. Have limited liability, meaning their personal assets are not at risk beyond their
investment in the partnership.
c. Typically receive a share of the profits but may have limited voting rights and
decision-making authority.

3. Active Partners:
 a. Partners who are actively involved in the day-to-day management and operations of
the business.
b. Often general partners in a general partnership or limited liability partnership.

4. Silent Partners:
a. Partners who contribute capital to the partnership but do not participate in the
management or decision-making process.
b. Similar to limited partners in a limited partnership, they have limited liability and
are primarily investors.

5. Sleeping Partners:
a. Partners who are not actively involved in the business but may have some
involvement or interest in its operations.
b. Similar to silent partners but may have occasional involvement or oversight.

6. Nominal Partners:
a. Partners who lend their name to the partnership but do not contribute capital or
participate in management.
b. Often used for credibility or to satisfy legal requirements but have no active role in
the business.
12. Dissolution of Partnership Business. (CSE-2022)
Ans: Dissolution of partnership and dissolution of the partnership firm are two different
concepts.
Dissolution of Partnership: This happens when the business relationship between
partners changes. One partner may leave, but the business continues with the remaining
partners under new terms.
Dissolution of Partnership Firm: This means the entire business is closed, and all
assets and liabilities are settled.
Reasons for Dissolution of Partnership:

1. Death of a Partner
2. New Partner Admission
3. Insolvency of a Partner
4. Early Retirement
5. End of Agreed Partnership Period

How Dissolution Happens:

1. By Partners' Agreement:

I. Partners agree to end the partnership at a specific time, e.g., after 5 years.
II. A partner may be suspended if they break a rule, leading to dissolution.

2. By Law: If the business involves illegal activities, the law can dissolve the
partnership.

3. By Court's Decree: A partner can request dissolution if:

I. A partner can't work anymore.

II. A partner breaches the agreement.
III. A partner is mentally unstable.
IV. A partner's misbehavior affects the business.

Steps for Dissolution:

1. Statement of Dissolution: File a statement with the state’s secretary,

including the partnership name, date, and reason for dissolution. The form is available
on the state secretary's website.
2. Personal Notification:

I. Notify the partnership’s creditors personally.

II. Publish a notice in a newspaper to inform those associated with the partnership.
13. Discus the characteristics of company organization.

Ans:

Characteristics of Company Organization:

1. Legal Entity:
A company is a separate legal entity distinct from its owners (shareholders). It can own
property, enter contracts, sue, and be sued in its own name. This characteristic provides
limited liability protection to shareholders, meaning their personal assets are typically
shielded from the company's debts and liabilities.

2. Limited Liability:
One of the most significant advantages of a company structure is limited liability.
Shareholders are generally liable only to the extent of their investment in the company.
Their personal assets are protected from the company's debts and legal obligations.

3. Perpetual Succession:
A company has perpetual succession, meaning its existence is not affected by the death or
departure of its shareholders or directors. The company continues to exist until it is
formally dissolved or liquidated.

4. Ownership Transferability:
Shares of a company can be easily bought, sold, or transferred. This provides liquidity to
shareholders and allows for the easy transfer of ownership interests.

5. Separation of Ownership and Management:

In a company, ownership (shareholding) and management (board of directors and
executives) are separate. Shareholders elect the board of directors, who then appoint
executives to manage the day-to-day operations of the company.

6. Complex Structure:
Companies often have a complex organizational structure, with multiple levels of
management, departments, and subsidiaries. This structure allows for specialization,
delegation of tasks, and efficient decision-making.
7. Regulatory Compliance:
Companies are subject to various regulatory requirements and must comply with laws and
regulations governing corporate governance, financial reporting, taxation, and other
aspects of their operations.

8. Corporate Governance:
Companies are governed by a board of directors, which is responsible for overseeing the
company's affairs, setting strategic objectives, and ensuring accountability to
shareholders. Good corporate governance practices promote transparency, integrity, and
ethical behavior.

9. Raising Capital:
Companies have the ability to raise capital by issuing shares to investors through public
offerings (IPOs) or private placements. This allows them to finance growth, expansion,
and investment in new projects or ventures.

10.Limited Liability Company (LLC) Option:

In some jurisdictions, companies have the option to register as a limited liability company
(LLC), combining the benefits of limited liability with the flexibility of partnership
taxation and management.
14.Discuss the classifications of company organization.

Ans:

I. Based on Liability:
1. Shareholder Liability:
Shareholders have limited liability, meaning their personal assets are protected
from the company's debts and obligations.
2. Guarantee Liability:
Members guarantee to pay a fixed sum in the event of the company's liquidation.
Their liability is limited to this guarantee amount.
3. Unlimited Liability:
Members are personally liable for all debts and obligations of the company, without
any limitation.

II. Based on Incorporation:

1. Chartered Companies:
Companies incorporated by a royal charter granted by the monarch or government
authority. These charters typically define the company's rights, privileges, and
responsibilities.
2. Statutory Companies:
Companies formed by a special Act of Parliament or legislature. These companies
operate under specific statutory provisions outlined in the enabling legislation.
3. Registered Companies:
Companies registered under the applicable company law or legislation of a
particular jurisdiction. They follow the standard incorporation process specified by
law.

III. Based on Number of Members:

1. Private Limited Company:

A company that restricts the transfer of its shares and limits the number of
shareholders. It cannot offer shares to the public and typically has "Ltd." as part of
its name.
2. Public Limited Company:
A company that can offer its shares to the public and may have its shares traded on
a stock exchange. It typically has "PLC" as part of its name.

IV. Based on Ownership:

 1. Government-Owned Companies:
Companies where a government entity holds a majority or significant ownership
stake. These companies may operate in strategic sectors or provide essential public
services.
2. Non-Government-Owned Companies:
Companies where ownership is held by private individuals, institutions, or entities
rather than government entities.

V. Other Classifications:

1. Non-Profit Companies:
Companies established for charitable, educational, religious, or other non-
commercial purposes. They do not distribute profits to members or shareholders.
2. Hybrid Companies:
Companies that combine features of different types of companies, such as a hybrid
of for-profit and non-profit objectives.
3. Foreign Companies:
Companies incorporated in one country but operating or conducting business
activities in another country.
15. Describe the methods of the formation of a company organization.

Ans:

The formation of a company organization involves several methods, depending on the type
of company and the legal requirements. Generally, the formation process can be categorized
into Promotion, Incorporation, and Commencement of Business. Here's a breakdown of
these methods:
1. Promotion Stage: The promotion stage involves the initial steps required to set up a
company. It typically focuses on planning and gathering resources.
Promoter’s Role: A promoter is the person or group responsible for bringing the company
into existence. They undertake the initial tasks, such as:
I. Identifying the business opportunity
II. Conducting feasibility studies
III. Securing initial investors, land, materials, and human resources.
IV. Deciding on the company's structure (e.g., private, public, LLC)
2. Incorporation Stage: Incorporation is the legal process of formally registering the
company. This stage is crucial as it gives the company legal recognition and the status of a
separate legal entity.
Steps in Incorporation:
I. Filing Documents: Submit necessary legal documents (e.g., MOA, AOA) to the
appropriate government authority, typically the Registrar of Companies (ROC) in
most countries.
II. Company Name Approval: Ensure the proposed company name is unique and
follows the naming guidelines.
III. Payment of Fees: Pay the required government fees for registration.
IV. Issuance of Certificate of Incorporation: After verification, the government
issues a Certificate of Incorporation, signifying that the company legally exists.
Legal Requirements:
I. Memorandum of Association (MOA): Defines the company’s objectives and
scope of operations.
II. Articles of Association (AOA): Outlines the internal rules and regulations of the
company.
III. Declaration of Compliance: A statement confirming that the company has
complied with all regulations.
3. Commencement of Business Stage: This stage is essential for companies that are
required to obtain a certificate to start their business operations, especially for public
companies. Steps in Commencement:
 I. Allotment of Shares: A public company must raise the minimum subscription amount
by allotting shares to the public.
II. Declaration of Compliance: Submit a declaration that the company has met all the
legal requirements to start its business.
III. Certificate of Commencement: Once verified, the Registrar issues a Certificate of
Commencement, allowing the company to start business operations legally.
16. Define co-operative society. State the principles of co-operative society.
Ans:
Definition:
A co-operative society is a voluntary association of individuals who come
together to meet common economic, social, and cultural needs and aspirations through
a jointly owned and democratically controlled enterprise. The primary objective is to
work for the mutual benefit of its members by pooling resources and sharing profits
based on participation rather than capital investment.

Principles of a Co-operative Society in Business:

1. Voluntary Membership: Membership in a co-operative society is open to all individuals
who are willing to accept the responsibilities of membership, without discrimination.

2. Democratic Control: Co-operatives are democratically managed, with members having

equal voting rights (one member, one vote), regardless of their shareholding.

3. Member Economic Participation: Members contribute equitably to the capital of the

co-operative. Profits are usually distributed among members in proportion to their
transactions with the co-operative rather than their capital contributions.

4. Autonomy and Independence: Co-operatives are autonomous organizations controlled

by their members. Any external funding or agreements with other organizations must
maintain the democratic control of the co-op by its members.

5. Education, Training, and Information: Co-operatives provide education and training

for their members, elected representatives, and employees to help them contribute
effectively to the development of the co-operative.

6. Cooperation Among Co-operatives: Co-operatives serve their members most effectively

and strengthen the co-operative movement by working together through local, national,
and international structures.

7. Concern for Community: Co-operatives work for the sustainable development of their
communities through policies approved by their members.
17. Discuss the importance and types of co-operative society.

Ans:

Importance of CO-operative Society:

1. Economic Empowerment:Provides affordable credit and financial services. Facilitates
entrepreneurship and business development.

2. Democratic Control:Equal voting rights for members. Promotes ownership and

accountability.

3. Social Inclusion:Focus on marginalized and vulnerable populations. Supports

community development through essential services.

4. Resilience and Stability:More resilient during economic downturns. Prioritizes long-

term benefits over short-term profits.

5. Market Access:Pooling resources to access markets and negotiate better terms. Helps
overcome market barriers and achieve economies of scale.

6. Ethical Practices:Emphasizes fair trade, environmental sustainability, and corporate

social responsibility.Contributes to a more ethical and transparent market environment.

Types of CO-operative Society:

1. Consumer Co-operatives:Formed by consumers to purchase goods and services at
reduced prices. Examples: Retail stores, supermarkets, wholesale outlets.

2. Producer Co-operatives: Formed by producers to process and market their products.

Examples: Agricultural co-operatives, dairy co-operatives, craftsman co-operatives.

3. Worker Co-operatives: Owned and operated by employees who share in decision-

making and profits. Found in sectors like manufacturing, services, and technology.

4. Financial Co-operatives: Provide financial services such as loans and savings accounts.
Examples: Credit unions, savings and loan associations.

5. Housing Co-operatives: Provide affordable housing by collectively owning and

managing properties. Benefits include lower housing costs and improved living
conditions.

6. Marketing Co-operatives: Help members market their products and services effectively.
Provide marketing support, brand development, and market research.
7. Agricultural Co-operatives: Support farmers with resources, equipment, and market
access. Facilitate collective purchasing and selling of produce.

8. Multi-purpose Co-operatives: Offer a variety of services to meet diverse member needs.

Combine consumer, producer, and financial services.
18.What is state enterprise? Discuss the objectives of state enterprise.

Ans:
Definition:
A state enterprise (also known as a state-owned enterprise or public
enterprise) is a business entity that is owned, managed, and operated by the
government. These enterprises are established to perform commercial activities on
behalf of the state, usually in industries that are considered vital to the country's
economy, such as energy, transportation, healthcare, and telecommunications.

Objectives of State Enterprises :

1. Public Welfare: To provide essential goods and services to the public at affordable
prices, especially in sectors where private companies may not adequately serve the
population, such as healthcare, utilities, or public transportation.

2. Control Over Strategic Sectors: To maintain control over critical industries that are
crucial for national security, economic stability, or public interest, like defense, energy,
and infrastructure.

3. Promotion of Economic Development: To contribute to national economic growth and

development by investing in industries or regions that may not be attractive to private
investors due to low profitability or high risk.

4. Employment Generation: To create jobs, particularly in sectors where private firms may
not provide sufficient employment opportunities, thus helping to reduce unemployment.

5. Revenue Generation for the Government: To generate revenue through profitable

operations, which can be used to finance public projects, infrastructure, and other
government programs.

6. Prevention of Monopoly Abuse: To prevent the exploitation of consumers by

monopolies in certain industries by ensuring government intervention in the form of state
enterprises.
7. Social and Regional Balance: To promote balanced regional development and reduce
inequalities by investing in underdeveloped or remote areas where private enterprises
may not be willing to invest.
CSE-2021|What are the various significant fields of state enterprise.
Ans:
State enterprises, also known as public sector enterprises, typically operate in significant
fields that are critical to the economy, national security, and public welfare. These sectors are
often considered too important to be left entirely to the private sector due to their strategic
importance or the need for equitable distribution of resources and services. Significant Fields
of State Enterprises:

1. Utilities: State-owned companies supply electricity, water, and gas to ensure everyone
has access to essential services.
2. Transportation: Governments run services like railways, airlines, and public buses to
provide affordable and reliable transport.
3. Defense and Security: The government controls industries that produce weapons and
defense equipment for national security.
4. Natural Resources: State enterprises manage oil, gas, coal, and mining to control
important natural resources and maintain stable supply.
5. Banking: State banks provide financial services, loans, and support for development
projects.
6. Telecommunications: Governments often control telephone and internet services,
especially in remote areas.
7. Healthcare and Education: Public hospitals and schools ensure everyone has access to
health services and education.
8. Infrastructure: Governments build and maintain roads, bridges, ports, and airports to
support the economy and public access.
9. Agriculture: Some state enterprises help with farming and food production to ensure
there’s enough food for everyone.
10.Media: Public broadcasting services provide news, education, and cultural content for the
public.
20. What is meant by entrepreneurship and entrepreneur? Discuss the
functions of an entrepreneur.

Ans:
Definition of Entrepreneurship:
Entrepreneurship means starting and running a
new business. It's when someone has an idea for a product or service and takes the risk to
turn that idea into a business. Entrepreneurs are people who create businesses, take on
financial risks, and try to make a profit.

Definition of Entrepreneur:
An Entrepreneur is a person who starts and runs their
own business, taking on financial risks in the hope of making a profit. Entrepreneurs come
up with new ideas, products, or services and organize the resources needed (like money,
labor, and materials) to turn their ideas into reality.

Functions of an Entrepreneur:
1. Idea Generation: The entrepreneur comes up with a business idea, like creating a new
product or providing a service.
2. Risk-taking: Entrepreneurs invest money and take risks. They are ready to lose their
investment but work hard to succeed.
3. Planning: They plan how the business will work, including what resources are needed,
how to market the product, and how to manage finances.
4. Organizing Resources: Entrepreneurs bring together resources like money, materials,
labor, and technology to get the business started.
5. Decision-making: They make key decisions on pricing, hiring, and other important
aspects of the business.
6. Managing the Business: Entrepreneurs run and manage the day-to-day operations of the
business, ensuring everything is going smoothly.
7. Innovation: They often come up with new ways to improve their product or service, or
find more efficient ways to run the business.
8. Marketing: Entrepreneurs make sure people know about their product or service through
advertising, social media, or other marketing methods.
CSE-2019,21| Distinguish between entrepreneur and entrepreneurship.

Ans:

Distinguishing Between Entrepreneur and Entrepreneurship:

Aspect Entrepreneur Entrepreneurship
An individual who starts and manages a The process of designing,
business venture, taking on financial risks launching, and running a
Definition in the hope of profit. new business, often
involving innovation and
risk-taking.
The person who initiates and drives the The activity and methods
Role business idea forward. used to develop and manage
the business venture.
Focuses on the specific business they are Focuses on the broader
developing or running. process of creating and
managing new ventures,
Focus
including identifying
opportunities and
overcoming challenges.
Traits include risk-taking, innovation, Involves activities like
leadership, and determination. market research, business
Characteristics planning, and financial
management.
Has a personal stake in the business's Encompasses a range of
success or failure. activities and approaches
Scope that can be applied to
different businesses and
industries.
Aims to achieve business success and Aims to foster innovation,
Outcome profitability. economic growth, and the
creation of new enterprises.
Steve Jobs (co-founder of Apple Inc.), Elon The process of developing a
Musk (CEO of Tesla and SpaceX). startup from an idea, such as
creating a tech company,
Examples
launching a new product, or
establishing a social
enterprise.

CSE-2021| Discuss the role of entrepreneurship in an economic development

in Bangladesh.
Ans:
Entrepreneurship plays a crucial role in the economic development of Bangladesh by driving
innovation, creating jobs, and contributing to overall economic growth. Here’s how
entrepreneurship impacts the country's development:
1. Job Creation: Entrepreneurs start new businesses, which create jobs for people. This
helps reduce unemployment and improves living standards.
Example: New businesses in sectors like textiles, IT, and agriculture provide jobs to many
people in Bangladesh.
2. Innovation and Technology: Entrepreneurs bring new ideas and technologies, helping
industries grow and become more efficient.
Example: E-commerce platforms and mobile banking in Bangladesh have made business
easier and more accessible.
3. Boosts the Economy: When entrepreneurs succeed, they contribute to the country's GDP
(Gross Domestic Product), making the economy stronger.
Example: The growth of small and medium enterprises (SMEs) adds value to the national
economy by producing goods and services locally.
4. Encourages Exports: Entrepreneurs help produce goods for export, earning foreign
currency for the country.
Example: The ready-made garments (RMG) sector in Bangladesh, led by many
entrepreneurs, is a major export earner.
5. Promotes Rural Development: Entrepreneurship can help develop rural areas by setting
up businesses there, providing jobs, and reducing poverty.
Example: Agro-based industries in rural Bangladesh help farmers and create new
opportunities outside cities.
6. Supports Women Empowerment: Entrepreneurship provides opportunities for women
to start their own businesses, which empowers them financially and socially.
Example: Many women entrepreneurs in Bangladesh run small businesses in handicrafts,
textiles, and online services.
7. Increases Competition: More entrepreneurs mean more competition, which leads to
better products, services, and prices for consumers.
Example: The rise of local startups in Bangladesh has created competition in the tech and
service sectors, benefiting customers.
8. Contributes to Government Revenue: Entrepreneurs pay taxes, which helps the
government earn money. This money can be used for public services like education,
healthcare, and infrastructure.
Example: Growing businesses contribute to tax revenues, helping fund public projects.
21. What is franchising?
Ans:
Definition:
Franchising is a business model where one company (the franchisor)
allows another person or company (the franchisee) to use its brand name, products, and
business system to operate a similar business in exchange for a fee or royalties. The
franchisee gets to run the business using the established brand and business methods,
while the franchisor provides support, training, and guidance.
Key Points:
• Franchisor: The company that owns the brand and business model.
• Franchisee: The person or business that buys the rights to operate under the
franchisor's brand.
• Example: McDonald’s is a famous franchisor. Many McDonald’s restaurants are
owned by franchisees who follow the company's system to run their outlets.
22. Define small business. Discuss the features of small business (CSE-
2020) and importance of small business.
Ans:

Definition:
A small business is a business that is usually independently owned and
operated, with a small number of employees and low volume of sales. It typically serves
a local market and requires less capital to start and run compared to large businesses.
Examples include local shops, small factories, or service providers like restaurants and
salons.

Features of Small Business:

1. Limited Capital: Small businesses usually require less money to start and operate than
larger businesses.

2. Small Workforce: They typically employ fewer people, often less than 50 employees.

3. Local Operations: Small businesses usually serve local or nearby customers rather than
national or international markets.

4. Independent Ownership: Most small businesses are owned by individuals or a small

group, not big corporations.

5. Direct Customer Relationship: Small businesses often have a close, personal

relationship with their customers, providing customized services.

6. Flexible Operations: Small businesses are more adaptable and can quickly adjust to
market changes.

7. Personalized Services: Due to the smaller customer base, they can offer more personal
and tailored services.

Importanceof Small Business:

1. Job Creation: They provide employment opportunities, especially in local communities.
2. Economic Growth: Small businesses contribute to the economy by generating income
and stimulating local markets.
3. Innovation: Many small businesses come up with new ideas and products that larger
businesses might overlook.
4. Support for Big Businesses: Small businesses often supply products or services to larger
companies, supporting the overall business ecosystem.
5. Encourages Entrepreneurship: Small businesses encourage people to start their own
ventures, which boosts creativity and economic diversity.
23. Discuss the advantages and disadvantages of small business.
Ans:

Advantages of Small Business:

1. Flexibility: Small businesses can quickly adapt to changes in the market or customer
needs because they have fewer layers of management.
2. Personal Relationships: Owners often know their customers personally, which allows
for better customer service and loyalty.
3. Low Startup Costs: Starting a small business usually requires less money compared to a
large corporation.
4. Independence: Owners have more control and can make decisions quickly without
needing approval from others.
5. Local Economy Support: Small businesses often buy from local suppliers and hire local
workers, contributing to the community's growth.

Disadvantages of Small Business:

1. Limited Resources: Small businesses often lack the money, staff, or equipment needed to
expand or compete with larger companies.
2. High Risk: They can be more vulnerable to failure due to financial difficulties, especially
in tough economic times.
3. Heavy Workload: The owner might have to handle multiple tasks like marketing,
accounting, and operations, which can be overwhelming.
4. Limited Market Reach: Small businesses usually operate in smaller areas and may
struggle to compete with larger companies that have a broader customer base.
5. Difficulty in Raising Capital: It can be harder for small businesses to get loans or
investors because they are seen as more risky compared to larger businesses.
25. What is called business environment? Define business values, business
ethics and business morality.
Ans:
Business Environment :
The business environment refers to all the internal and
external factors that influence a business's operations, decision-making, and success. It
includes elements like customers, suppliers, competitors, government policies, economic
conditions, and technological advancements. These factors can either help a business grow or
create challenges for it.

Business Values :
Business values are the core principles and beliefs that guide how a
company operates. They reflect what the business stands for and help shape its culture,
decision-making, and relationships with customers, employees, and stakeholders.
Example: A company may value honesty, customer satisfaction, innovation, or sustainability.

Business Ethics :
Business ethics refers to the moral guidelines and standards of
conduct that a business follows. It involves making decisions that are fair, responsible, and
respectful of all stakeholders, including customers, employees, and the environment.
Example: A business practicing ethics would avoid fraud, treat employees fairly, and ensure
safe working conditions.

Business Morality :
Business morality refers to the understanding of right and wrong
in the business context. It is about following moral standards, ensuring fairness, and acting in
a way that is socially and ethically acceptable.
Example: A company showing business morality would avoid exploiting workers or
engaging in corrupt practices.
26. What is meant by social responsibility of business? (CSE-2021) Discuss
the social responsibility of business organization towards various parties.
Ans:

Social Responsibility of Business :

Social responsibility of a business means
that a company should act in a way that benefits society, not just focus on making profits. It
involves being mindful of how business decisions affect employees, customers, the
community, and the environment. A socially responsible business tries to balance economic
growth with the welfare of society.
Social Responsibilities of Business Organizations:
1. Responsibility Towards Employees:
I. Provide fair wages, safe working conditions, and job security.
II. Offer opportunities for growth and training to improve their skills.
2. Responsibility Towards Customers:
I. Ensure that products are safe, high-quality, and fairly priced.
II. Provide accurate information and protect customer privacy.
3. Responsibility Towards the Community:
I. Contribute to the local community by creating jobs and supporting community
programs.
II. Avoid actions that harm the community, such as pollution or unfair practices.
4. Responsibility Towards the Environment:
I. Reduce pollution and minimize waste to protect the environment.
II. Use sustainable resources and follow environmental regulations.
5. Responsibility Towards Shareholders:
I. Operate the business in a way that provides good returns on investments.
II. Be transparent and honest about the company’s financial situation.
6. Responsibility Towards the Government:
I. Follow all laws and regulations.
II. Pay taxes and cooperate with the government to ensure fair business practices.
CSE-2021| Why should business be socially responsible?
Ans:
Businesses should be socially responsible for several important reasons:
1. Builds Trust and Reputation: Being socially responsible helps build a positive
reputation. Customers and the public are more likely to support businesses that care about
society and the environment.

2. Attracts Customers: Consumers are more likely to buy from companies that act ethically
and care about the community. This can lead to increased sales and customer loyalty.

3. Employee Satisfaction: When a business treats its employees well and contributes to the
community, employees feel proud and motivated, leading to higher productivity and
lower turnover.

4. Long-Term Success: Social responsibility creates goodwill in society, which can protect
a business during tough times and help it succeed in the long run.

5. Compliance with Laws: Acting responsibly helps businesses avoid legal issues and
fines. Following environmental and labor laws ensures the business stays out of trouble.

6. Positive Impact on Society: By addressing social issues like pollution, education, and
poverty, businesses contribute to a better society, which can lead to a healthier economy
and community.

7. Attracts Investors: Investors are increasingly interested in businesses that are socially
responsible. This can help companies raise funds more easily.
CSE-2021| Discuss the types of business environment.
Ans:
The business environment refers to all the external and internal factors that affect a
business's operations. It is divided into two main types: internal environment and external
environment. Each type has its own components.
1. Internal Environment:
Definition: The internal environment includes factors within the business that influence its
operations and decision-making.
Components:
I. Employees: The skills, motivation, and behavior of employees can impact business
performance.
II. Company Culture: The values, norms, and practices within the organization affect
how it functions.
III. Management: Leadership and decision-making styles influence the business’s
direction.
IV. Resources: Financial, physical, and technological resources available within the
business shape its capabilities.
Example: A company with highly skilled workers and good leadership will perform better
internally.
2. External Environment:
Definition: The external environment consists of factors outside the business that affect its
operations, often beyond the business’s control.
Components:
I. Micro Environment (Close or Direct):
▪ Customers: Their preferences and buying behavior impact demand.
▪ Suppliers: The quality and reliability of suppliers affect production.
▪ Competitors: Rival businesses influence pricing, quality, and innovation.
▪ Intermediaries: Distributors, agents, and marketers who help the business
reach its customers.
II. Macro Environment (Broad or Indirect):
• Economic Factors: Inflation, interest rates, and economic growth influence
business activities.
▪ Political and Legal Factors: Government policies, regulations, and laws shape
how businesses operate.
▪ Technological Factors: Advances in technology can create new opportunities
or threats.
▪ Social and Cultural Factors: Social trends, cultural values, and lifestyle
changes affect product demand and marketing strategies.
▪ Environmental Factors: Climate change and environmental regulations can
impact production and business sustainability.
▪ Global Factors: Global trade policies, international competition, and global
market trends influence businesses.
CSE-2021| What is international business?
Ans:
Definition:
International business refers to the buying, selling, and trading of goods,
services, and capital across national borders. It involves companies operating in more than
one country and conducting business activities like exporting, importing, licensing,
franchising, or setting up offices and factories abroad.
28. What is contract? Discuss the essential elements or features of
contract.
Ans:
Definition:
A contract is a legal agreement between two or more parties that creates
mutual obligations, which are enforceable by law. It usually involves the exchange of
goods, services, or money. In simple terms, a contract is a promise between parties
where one party agrees to do something in return for a benefit provided by the other.
Essential Elements or Features of a Contract :
1. Offer and Acceptance: One party makes an offer, and the other party accepts it. This
mutual agreement is the foundation of a contract.
Example: A company offers to sell a product, and a customer agrees to buy it at a certain
price.
2. Intention to Create Legal Relations: Both parties must have the intention to enter into a
legally binding agreement.
Example: A social promise between friends does not create a contract, but a business deal
does.
3. Lawful Object: The purpose of the contract must be legal. If the subject of the contract is
illegal (like selling drugs), it cannot be enforced.
Example: A contract to sell stolen goods is not valid.
4. Consideration: There must be something of value exchanged between the parties. It can
be money, services, or goods.
Example: A person pays money in exchange for a product or service.
5. Capacity of Parties: The parties involved must have the legal ability to enter into a
contract. This means they must be of sound mind, not minors, and not under the influence
of drugs or alcohol.
Example: A contract made by a 10-year-old child is not valid.
6. Free Consent: Both parties must agree to the contract terms willingly, without force,
fraud, undue influence, or mistake.
Example: If someone is threatened into signing a contract, it is not valid.

7. Certainty of Terms: The terms of the contract must be clear and specific so that all
parties know what they are agreeing to.
Example: A vague agreement without clear terms cannot be enforced.
8. Possibility of Performance: The contract must be possible to perform. If it involves
something impossible (like flying to the moon tomorrow), it is not valid.
 Example: A contract to deliver goods that no longer exist is void.
9. Legality of Form: Some contracts must be in writing (like real estate contracts), while
others can be verbal. The form depends on the type of contract and legal requirements.
Example: Contracts for selling land must be in writing to be enforceable.
30. Define management. (CSE-2019,21,22) Who is manager? Discuss the
features (CSE-2022), functions (CSE-2019) and principles of
management(CSE-2021).

Ans:

Definition of Management:
Management is the process of planning,
organizing, leading, and controlling resources (such as people, money, and materials) to
achieve specific goals efficiently and effectively. It involves coordinating the efforts of
people to accomplish desired objectives using available resources.

Definition of Manager:
A manager is a person responsible for overseeing and
coordinating the activities of a group or department to ensure that tasks are completed
successfully. Managers make decisions, lead teams, and ensure that the organization's
goals are met through proper planning and resource allocation.
Features of Management:
1. Goal-Oriented: Management is focused on achieving specific objectives, whether it's
increasing sales, reducing costs, or improving efficiency.
2. Continuous Process: Management is ongoing, involving regular planning, monitoring,
and adjusting to keep the organization on track.
3. Involves People: Management deals with directing and coordinating people, as the
success of an organization depends on its employees' performance.
4. Multidisciplinary: Management draws knowledge from various fields like economics,
psychology, and sociology to make informed decisions.
5. Dynamic: It adapts to changes in the business environment, such as new technologies,
market trends, or customer preferences.
Functions of Management :
1. Planning: Setting objectives and determining the best course of action to achieve them.
Example: A manager decides on the company's sales targets for the next year and plans
marketing strategies to reach them.
2. Organizing: Arranging resources and tasks in a structured way to achieve the plan.
Example: A manager assigns tasks to employees and ensures they have the tools and
resources they need.

3. Leading: Directing and motivating employees to work towards the company’s goals.
Example: A manager inspires the team, provides guidance, and resolves conflicts.
4. Controlling: Monitoring progress and making adjustments if needed to stay on track.
Example: A manager checks sales figures regularly to ensure the company is meeting its
targets.
Henri Fayol's 14 Principles of Management :
1. Division of Work: Work should be divided among individuals based on their skills to
increase efficiency and productivity.
2. Authority and Responsibility: Managers have the authority to give orders, but they must
also take responsibility for the results.
3. Discipline: Employees should follow rules and regulations, and there should be a clear
understanding of expectations and consequences.
4. Unity of Command: Each employee should report to only one manager to avoid
confusion and conflicting instructions.
5. Unity of Direction: All members of the organization should work towards the same
objectives through coordinated efforts.
6. Subordination of Individual Interest: The goals of the organization should take
precedence over personal interests.
7. Remuneration: Employees should be fairly compensated for their work to maintain
motivation and loyalty.
8. Centralization and Decentralization: The balance of decision-making power should
depend on the situation, with centralization giving authority to top managers and
decentralization allowing lower levels to make decisions.
9. Scalar Chain: There should be a clear line of authority in the organization, from top
management to lower levels.
10.Order: Resources, including people and materials, should be properly organized to
ensure efficiency.
11.Equity: Managers should treat all employees fairly and with respect.
12.Stability of Tenure: Long-term employment stability for workers leads to better
performance.
13.Initiative: Managers should encourage employees to take initiative and suggest
improvements.
14.Esprit de Corps: Promoting team spirit and unity among employees helps create a
positive working environment.
31. What is management cycle? (CSE-2020) Is management a profession?

Ans:
The management cycle refers to the continuous process that managers follow to achieve
organizational goals. It involves a series of steps that are repeated over time to ensure
effective management. These steps are usually broken down into four key stages:
1. Planning: Setting goals and determining the actions needed to achieve them. This
includes deciding what needs to be done, by whom, and by when.
2. Organizing: Arranging resources such as people, finances, and equipment to carry out
the plan. This involves creating a structure for the organization and assigning tasks.
3. Leading: Directing and motivating employees to work towards the organization's goals.
This includes communication, decision-making, and resolving conflicts.
4. Controlling: Monitoring progress towards goals and making adjustments if necessary.
This ensures that the organization stays on track and meets its objectives.
The management cycle is continuous because once one cycle ends, another begins. This
helps organizations adapt to changes and improve over time.

Yes, management can be considered a profession, but it depends on how we define

"profession." Let’s explore the characteristics of a profession and whether management fits
these criteria:
1. Specialized Knowledge: A profession requires a body of specialized knowledge and
skills. Managers need knowledge in areas such as leadership, strategy, finance, and
human resources, which they often acquire through education and experience.
2. Formal Education and Training: Professionals typically undergo formal education and
training. While management does not always require a specific degree (unlike professions
such as law or medicine), many managers have degrees in business administration or
related fields, and there are professional certifications in management.
3. Code of Ethics: Professions usually have a code of ethics that guides behavior.
Management has ethical standards, such as fairness, transparency, and social
responsibility, though it may not have a strict formalized code like law or medicine.
4. Service to Society: Professions aim to serve the public or society. Management
contributes to society by creating jobs, fostering economic growth, and ensuring the
effective use of resources in organizations.

5. Autonomy and Responsibility: Professionals are trusted to make decisions and are held
accountable for their actions. Managers have significant responsibility for guiding an
organization and making decisions that affect its success.
CSE-2022| "Management is the combination of Science and Arts" - Explain.
Or Is management a science or an art? Explain. (CSE-2022)

Ans:
1. Management as an Art:
I. Art involves creativity, personal skills, and practical knowledge, which is required
to handle various situations.
II. In management, the application of knowledge and skills varies depending on the
situation, which makes it an art form.
III. For example, decision-making, leadership, and motivational strategies involve
creativity, which are key traits of art.
2. Management as a Science:
I. Science involves systematic knowledge, theories, principles, and facts that can be
verified or tested.
II. Management has a body of knowledge, principles, and theories that can be applied
in different organizational settings, making it a science.
III. For instance, techniques such as time management and financial planning follow
certain principles that are based on facts and can be replicated.
3. Management as a Combination of Both:
I. Management is often seen as a combination of both art and science.
II. It relies on established principles (science), but the application of these principles
requires personal judgment, creativity, and intuition (art).
III. A successful manager blends both: they follow rules (science) but adapt creatively
to the uniqueness of each situation (art).
In conclusion, management is considered both an art and a science. It involves a structured,
scientific approach to applying knowledge, alongside creativity and experience to handle
unique organizational challenges.
Cse-2020| Are principles of management equally applicable for all types of
organizations? Explain.

Ans:
The principles of management are not equally applicable to all types of organizations. While
the basic principles, like planning, organizing, and leading, provide a general framework,
they need to be adapted depending on the type, size, and nature of the organization.
Reasons:
1. Nature of Business:
o In a large corporation, management is more structured with strict rules, while in
a small business, management is often more flexible and informal.
2. Type of Organization:
o A non-profit organization focuses on service rather than profit, so principles
related to profitability might not apply the same way as they would in a
business.
3. Cultural Differences:
o Management principles may need to be adjusted depending on the country’s
culture, values, and work practices. What works in one culture may not work in
another.
4. Technology and Industry:
o In high-tech industries, the principles of innovation and flexibility are more
critical, while in traditional industries, efficiency and standardization may be
more important.
5. Size of the Organization:
o Large organizations require a more formal, hierarchical management structure,
while smaller companies may use simpler, more direct methods.
In Conclusion, Management principles provide a general guide, but they must be adapted to
fit the specific needs and context of each organization.
CS-2022| " Theory X and theory Y are connected with the nature of people.
" - How does the job situation affect the application for this theory?
Ans:
Theory X and Theory Y, proposed by Douglas McGregor, are two contrasting views about
human nature in the workplace, and how managers approach their employees based on these
assumptions. The job situation plays a key role in determining which theory is applied.

Theory X:
• Assumption: People inherently dislike work, avoid responsibility, and need to be
closely supervised and controlled.
• Job Situation: This approach is typically applied in jobs where tasks are repetitive,
unskilled, or require strict procedures, like factory work or routine clerical jobs. In
these situations, managers feel that strict control, supervision, and external motivation
(like rewards or punishments) are necessary to ensure productivity.
Theory Y:
• Assumption: People enjoy work, are self-motivated, seek responsibility, and can be
creative and innovative if given the chance.
• Job Situation: This theory is more applicable in jobs that require creativity, problem-
solving, and self-management, such as managerial roles, research and development, or
tech industries. In such environments, managers provide employees with more
autonomy, encourage participation in decision-making, and trust their abilities to
achieve goals without constant supervision.

How Job Situation Affects Application :

1. Nature of Work:
Theory X: Repetitive, routine jobs may push managers toward Theory X to maintain
discipline and productivity.
Theory Y: Creative or dynamic jobs encourage the use of Theory Y, where employee
initiative and autonomy are key.
2. Employee Skills:
Theory X: Low-skill, entry-level jobs may require more oversight.
Theory Y: High-skill, experienced employees are likely to thrive under Theory Y,
with less supervision and more responsibility.
3. Work Environment:
Theory X: A structured, rule-based environment may favor Theory X.
 Theory X: A flexible, open environment is more suitable for Theory Y.
In Conclusion, The nature of the job situation greatly influences whether Theory X or Theory
Y is applied. Routine and structured jobs tend to align with Theory X, while creative and
self-managed roles fit better with Theory Y.
32. Define organization. Discuss the features, importance, classification and
principles of organization.

Ans:
Definition of Organization:
An organization is a structured group of people
working together to achieve specific goals or objectives. It involves coordinating efforts,
resources, and tasks in an organized way to produce desired outcomes. An organization can
be a business, government body, or non-profit entity.

Features of an Organization :
1. Goal-Oriented: Every organization has specific goals or objectives it aims to achieve,
whether it’s profit, social service, or governmental duties.
2. Division of Work: Tasks and responsibilities are divided among individuals and
departments based on skills and expertise.
3. Coordination: The activities of different departments and individuals are coordinated to
ensure smooth functioning and goal achievement.
4. Hierarchy: There is a clear structure or chain of command, with defined roles and
authority levels.
5. Continuity: Organizations typically operate continuously, with activities planned for the
long term, beyond individual projects or tasks.
6. Resources Utilization: An organization uses various resources such as human, financial,
and material resources efficiently to achieve its goals.

Importance of Organization :
1. Efficient Use of Resources: By organizing resources and people effectively,
organizations make the best use of their assets to meet goals.
2. Clear Role Definition: Proper organization helps define the roles, duties, and
responsibilities of employees, leading to better coordination and reduced conflict.
3. Facilitates Growth: A well-structured organization can expand more easily, adding new
teams, departments, or branches without confusion.
4. Improved Communication: Organizational structure ensures clear lines of
communication, which helps in reducing misunderstandings and delays.
5. Helps in Decision-Making: Organizations create a system for better and faster decision-
making by having a clear hierarchy and delegation of authority.
6. Achieves Organizational Goals: Proper organization ensures that all activities are
aligned with the objectives, making it easier to achieve the desired outcomes.

Classification of Organization :
1. Formal Organization: A formal organization is one with a well-defined structure,
specific rules, and set procedures. The roles and relationships are clearly laid out in an
organizational chart.
Example: A company with various departments (like HR, Finance, and Sales) and formal
job descriptions.
2. Informal Organization: This refers to the social networks, personal relationships, and
informal groups that form naturally within an organization. These groups aren’t officially
structured but still influence how work gets done.
Example: Employees forming friendships and socializing outside of official work roles.
3. Line Organization: A simple form of organization where there is a direct chain of
command from top management to employees.
Example: In small businesses where the owner directly manages a few employees.
4. Functional Organization: In this type, activities are divided based on specific functions,
such as marketing, production, finance, and HR. Each function is managed by specialists.
Example: A large corporation with separate departments for each business function.
5. Matrix Organization: This combines elements of both line and functional organizations.
Employees report to both a functional manager and a project manager.
Example: A company where employees work in a department but are also assigned to
temporary projects with different managers.

Principles of Organization :
1. Unity of Command: Every employee should have one direct supervisor to avoid
confusion and conflicting instructions.
2. Unity of Direction: All activities and efforts should be aligned towards the same
organizational goal.
3. Chain of Command: There should be a clear hierarchy where every person knows who
to report to and who has authority over them.
4. Span of Control: This refers to the number of subordinates a manager can effectively
manage. The span should be neither too wide nor too narrow.
5. Division of Labor: Tasks should be divided based on specialization and expertise to
ensure efficiency.
6. Authority and Responsibility: With every role or position comes certain authority, and
the person in that role must be responsible for the decisions made.
7. Centralization and Decentralization: Centralization means decision-making power is
held by top management, while decentralization spreads decision-making across different
levels. The balance between these two depends on the organization’s needs.
8. Coordination: All departments and individuals should work in harmony to ensure that
the organization functions smoothly.
9. Flexibility: The organization must be adaptable and flexible to respond to changes in the
business environment or market.
10.Scalar Chain: There should be a clear line of authority from top management to the
lowest level, ensuring smooth communication.
33. Define authority and delegation of authority. Discuss the necessity of
delegation of authority.
Ans:
Definition of Authority :
Authority is the legal or formal power given to a person to
make decisions, give orders, and ensure that those orders are carried out. It allows managers
or leaders to direct the actions of others and control resources to achieve organizational
goals.
Definition of Delegation of Authority :
Delegation of authority is the process by
which a manager or superior assigns part of their authority and responsibility to their
subordinates. While the manager still holds ultimate accountability, delegation empowers
employees to make decisions and carry out tasks on the manager's behalf.

Necessity of Delegation of Authority:

1. Increases Efficiency: Delegating authority allows managers to focus on higher-level
strategic tasks by assigning routine or operational tasks to subordinates. This helps in
speeding up decision-making and improving overall efficiency.
2. Reduces Manager’s Workload: Managers cannot handle everything by themselves,
especially in large organizations. By delegating, they reduce their workload and avoid
being overwhelmed with minor tasks.
3. Encourages Employee Development: When authority is delegated, employees get the
opportunity to learn, grow, and take on new responsibilities. This helps them develop
their skills, which can lead to promotions and career growth.
4. Improves Decision-Making: Delegation empowers employees to make decisions at
their level. This ensures that decisions are made faster and closer to the actual point of
action, leading to quicker responses to challenges.
5. Enhances Motivation and Job Satisfaction: Employees feel trusted and valued when
they are given authority to make decisions and take on responsibility. This increases
their motivation, engagement, and job satisfaction.
6. Facilitates Better Time Management: Managers can manage their time more
effectively by delegating routine tasks. This allows them to dedicate more time to
strategic planning and complex decision-making.
7. Ensures Continuity: Delegation prepares employees to take on higher roles in the
future. In case a manager is absent or leaves the organization, well-delegated authority
ensures that work continues smoothly without major disruptions.
8. Increases Accountability: When employees are given authority, they also become
responsible for the outcomes of their tasks. This increases accountability and
encourages employees to take ownership of their work.
9. Promotes Organizational Flexibility: Delegation helps create a more flexible
organization where decision-making is spread across different levels, allowing for
quicker adaptation to changes in the business environment.
34. Discuss the principles or considering factors of delegation of authority.

Ans:
When delegating authority, several principles or factors should be considered to ensure the
process is effective and beneficial for both managers and employees. Here are the key
principles of delegation of authority:
1. Clarity of Objectives: Clearly define the goals and objectives of the tasks being
delegated. This ensures that employees understand what is expected of them and how their
work contributes to the organization’s overall goals.
2. Assign Appropriate Authority: The level of authority given should match the
responsibility assigned. Employees should have the power to make decisions necessary to
complete their tasks effectively without needing constant approval.
3. Select the Right Person: Choose individuals with the appropriate skills, experience, and
potential to handle the delegated tasks. Understanding their strengths and weaknesses helps
in assigning tasks that they can execute successfully.
4. Define Responsibilities: Clearly outline the specific responsibilities associated with the
delegated authority. This prevents confusion and ensures employees know what they are
accountable for.
5. Establish Accountability: While authority is delegated, accountability remains with the
manager. Managers must ensure that employees understand they are responsible for the
outcomes of their decisions and actions.
6. Provide Necessary Resources: Ensure that employees have access to the necessary
resources (such as time, tools, and information) to complete the tasks effectively. This
support helps them succeed in their roles.
7. Maintain Communication: Foster open communication channels between managers and
employees. Regular check-ins and feedback help in addressing challenges and ensuring that
tasks are on track.
8. Monitor Progress: While delegating authority, it’s essential to monitor the progress of the
tasks being completed. This allows managers to provide guidance and make adjustments as
needed without micromanaging.
9. Encourage Initiative: Allow employees the freedom to make decisions and take the
initiative within the scope of their delegated authority. This empowerment fosters innovation
and engagement.
10. Be Supportive: Managers should provide support and encouragement to employees as
they take on new responsibilities. This can include training, mentoring, and constructive
feedback.
11. Review and Reflect: After the completion of tasks, review the outcomes and the
delegation process. Reflect on what worked well and what could be improved for future
delegations.
12. Balance Between Delegation and Control: Maintain a balance between granting
autonomy and retaining control over critical decisions. Managers should know when to step
back and when to intervene.
40. What is motivation? Discuss the features, importance and motivation
cycle.
Ans:
Definition of Motivation :
Motivation is the process that initiates, guides, and sustains
goal-oriented behavior. It is the inner drive that pushes individuals to take action and achieve
specific goals, whether personal or organizational. In the workplace, motivation encourages
employees to perform their tasks with energy and focus.

Features of Motivation :
1. Goal-Oriented: Motivation directs behavior towards specific goals. It pushes individuals
to take action to achieve their objectives, whether personal satisfaction, recognition, or
rewards.
2. Dynamic Process: Motivation is not static. It changes over time depending on a person’s
needs, experiences, and external factors like rewards or challenges.
3. Influenced by External and Internal Factors: Motivation can come from internal
factors (like personal satisfaction or passion) or external factors (like salary, rewards, or
praise).
4. Positive or Negative: Positive motivation involves rewards and recognition, while
negative motivation is based on fear of punishment or failure.
5. Continuous Process: Motivation is ongoing. As one goal is achieved, new goals emerge,
requiring new motivation to keep individuals moving forward.

Importance of Motivation :
1. Improves Productivity: Motivated employees work harder and more efficiently,
increasing the overall productivity of the organization.
2. Enhances Job Satisfaction: Motivation makes employees feel valued and involved,
leading to higher job satisfaction and a positive attitude towards work.
3. Reduces Turnover: Motivated employees are less likely to leave their jobs, reducing
employee turnover and recruitment costs.
4. Encourages Innovation: A motivated workforce is more likely to be creative and come
up with new ideas, helping the organization stay competitive.
5. Helps Achieve Organizational Goals: Motivation aligns individual efforts with
organizational objectives, ensuring everyone works together towards common goals.
6. Improves Employee Development:Motivation encourages employees to improve their
skills and seek out training, which benefits both their personal growth and the
organization.

Motivation Cycle :
The motivation cycle explains how motivation works as a continuous process. It consists of
the following stages:
1. Need: The cycle starts with a need or desire. This could be a physical need (like hunger or
rest) or a psychological need (like recognition or achievement). For example, an
employee may feel the need for a promotion.
2. Drive: This need creates a drive or urge to take action. The individual is motivated to
satisfy the need. In the case of the employee, the desire for a promotion pushes them to
work harder and improve their performance.
3. Action or Behavior: The individual takes specific actions to meet the need. For example,
the employee may take on additional tasks or learn new skills to increase their chances of
getting promoted.
4. Goal Achievement: Once the action is taken, the individual reaches their goal, satisfying
the original need. The employee might get promoted, fulfilling their desire for
recognition.
5. Feedback: After the goal is achieved, the individual reflects on their success and
satisfaction. This feedback influences future motivation. If the experience was positive,
the employee might set new, higher goals, restarting the motivation cycle.
The motivation cycle outlines how a need leads to action, which results in goal achievement
and provides feedback for future motivation.
41. Discuss the various ways or methods of motivation. (CSE-2020_
Financial Method)
Ans:
There are several methods of motivation that managers can use to encourage employees to
perform at their best and remain engaged in their work. These methods can be broadly
categorized into two types: financial and non-financial. Here’s a breakdown of the various
ways of motivating employees:
1. Financial Methods of Motivation: (CSE-2020)
These methods involve monetary rewards or financial incentives to encourage employees to
work harder and achieve their goals.
I. Salaries and Wages: Regular and fair compensation for work done is one of the
most basic motivators. Employees feel motivated when they are paid well for their
efforts.
II. Bonuses: Offering bonuses for achieving specific targets or completing projects
can motivate employees to put in extra effort.
III. Profit-Sharing: In this method, employees receive a share of the company's
profits, encouraging them to contribute more towards the company's success.
IV. Commission: Often used in sales jobs, commission is a percentage of the sales
revenue earned by the employee. The more they sell, the more they earn.
V. Performance-Based Pay: This is a system where employees are paid based on
their productivity or the quality of their work, motivating them to work efficiently.
VI. Fringe Benefits: Providing benefits like health insurance, retirement plans, paid
vacations, and company cars can motivate employees by improving their overall
well-being.
2. Non-Financial Methods of Motivation:
These methods focus on providing non-monetary incentives that satisfy employees’
psychological, social, and emotional needs.
I. Recognition and Praise: Recognizing and praising employees for their hard work
can boost morale and motivation. Public recognition like “Employee of the Month”
awards can be very effective.
II. Job Security: Employees are more motivated when they feel their job is secure.
Offering long-term job contracts and reducing job-related uncertainty encourages
loyalty and dedication.
III. Job Enrichment: Providing more challenging and fulfilling work helps employees
feel more engaged and motivated. This can include adding more responsibilities or
giving them more autonomy in decision-making.
IV. Career Advancement Opportunities: Offering opportunities for promotions and
career growth motivates employees to work hard and improve their skills.
Providing training and development programs also helps them feel valued.
 V. Work-Life Balance: Allowing flexible working hours, remote work options, and
ensuring employees have time for personal life can motivate them to perform better
at work.
VI. Empowerment: Giving employees the authority to make decisions and take
ownership of their tasks can lead to greater motivation and commitment to the
organization.
VII. Teamwork and Collaboration: Encouraging a collaborative and supportive team
environment can increase motivation, as employees feel a sense of belonging and
shared purpose.
VIII. Sense of Purpose: Employees are often motivated when they understand the larger
purpose of their work and how it contributes to the organization or society. This
gives them a sense of meaning.
42. What is meant by human resource management? Describe the
importance of human resource management. (CSE-2022)
Ans:
Definition of HRM :
Human Resource Management (HRM) refers to the process of
managing people within an organization. It involves recruiting, hiring, training, developing,
and ensuring the well-being of employees to help the organization achieve its goals. HRM
focuses on maximizing employee performance, maintaining workplace harmony, and
complying with labor laws.

Importance of Human Resource Management :

1. Recruitment and Staffing: HRM ensures that the organization hires the right people
with the necessary skills and qualifications. It manages the recruitment process,
including job postings, interviews, and hiring decisions, to ensure a good fit for the
company's needs.
2. Training and Development: HRM provides training and development opportunities
to employees to enhance their skills and knowledge. This not only improves individual
performance but also contributes to the overall growth and competitiveness of the
organization.
3. Employee Motivation and Retention: HRM develops strategies to keep employees
motivated and engaged, such as offering career growth opportunities, rewards, and
recognition. Keeping employees satisfied reduces turnover and helps retain talent
within the company.
4. Performance Management: HRM sets up performance evaluation systems to assess
employee productivity and effectiveness. By providing regular feedback and setting
clear expectations, HRM ensures that employees stay on track and work towards the
organization's goals.
5. Compensation and Benefits: HRM manages employee compensation, including
salaries, bonuses, and benefits like health insurance and retirement plans. Fair and
competitive compensation is crucial for attracting and retaining top talent.
6. Compliance with Labor Laws: HRM ensures that the organization complies with
labor laws and regulations, including workplace safety, equal employment
opportunities, and fair treatment of employees. This reduces the risk of legal issues
and promotes a positive work environment.
7. Building Organizational Culture: HRM helps shape and maintain a positive
organizational culture by promoting values such as teamwork, respect, and
collaboration. A strong organizational culture enhances employee satisfaction and
productivity.
8. Conflict Resolution: HRM plays a key role in resolving workplace conflicts, whether
between employees or between management and staff. Addressing issues promptly
and fairly helps maintain harmony and trust within the organization.
9. Adapting to Change: In a rapidly changing business environment, HRM helps
organizations adapt by ensuring that employees are prepared for new challenges,
whether through reskilling, restructuring, or implementing new policies.
10.Strategic Role in Organizational Success: HRM contributes to the long-term success
of the organization by aligning human resource strategies with the company’s overall
goals. It ensures that the workforce is capable of meeting future demands and driving
innovation.
43. Define recruitment of employee and selection of employee. Show the
difference between recruitment and selection of employee.
Ans:
Definition of Recruitment :
Recruitment is the process of finding and attracting
potential candidates to apply for a job within an organization. It involves advertising job
vacancies, sourcing candidates, and encouraging them to apply. The goal of recruitment is to
create a pool of qualified candidates from which the organization can select the best person
for the job.
Definition of Selection :
Selection is the process of choosing the most suitable
candidate from the pool of applicants. It involves evaluating the candidates through
interviews, tests, and assessments to determine who best fits the job requirements. The final
step of selection is offering the job to the most qualified person.

Difference Between Recruitment and Selection:

Recruitment Selection
The process of attracting and encouraging The process of assessing and choosing the
candidates to apply for a job. best candidate from the applicants.
Aims to create a pool of qualified Aims to select the most suitable candidate
applicants. from the pool.
Positive process – more candidates are Negative process – unsuitable candidates
encouraged to apply. are filtered out.
Involves job advertising, sourcing, and Involves screening, interviews, tests, and
encouraging applications. background checks.
Focuses on attracting many potential Focuses on selecting the right candidate.
candidates.
Results in a list of applicants. Results in a final hiring decision.
CSE-2020| Write down the principles of Human resource management.
Ans:
Here are the key principles of Human Resource Management (HRM):
1. Recruit the Right People: Ensure that the organization hires employees with the right
skills, qualifications, and attitude for the job.
2. Provide Equal Opportunity: Treat all employees fairly and ensure no discrimination in
recruitment, promotions, or other HR practices.
3. Develop Employees: Focus on continuous learning and development by providing
training programs and career advancement opportunities.
4. Employee Involvement: Encourage employee participation in decision-making to make
them feel valued and improve their engagement.
5. Performance Management: Set clear goals, regularly evaluate performance, and provide
feedback to help employees improve.
6. Compensation and Rewards: Offer fair and competitive wages and benefits to attract
and retain talent.
7. Employee Welfare: Ensure a safe, healthy, and supportive work environment to improve
employee satisfaction and well-being.
8. Compliance with Laws: Follow labor laws and regulations related to wages, safety,
working hours, and employee rights.
9. Effective Communication: Maintain open and transparent communication between
management and employees to build trust and collaboration.
10.Adaptability: HR practices should be flexible to adapt to changes in the business
environment, technology, or employee needs.
These principles help organizations manage their human resources effectively, ensuring
employee satisfaction and organizational success.
CSE-2019,20,21,22| Explain the basic components/ Elements of Humen
Resource Management.
Ans:
The basic components or elements of Human Resource Management (HRM) are the key
functions and activities that help manage the workforce effectively. Here are the main
elements:
1. Recruitment and Selection:
I. Recruitment: Attracting qualified candidates to apply for job openings in the
organization.
II. Selection: Choosing the best candidates from the pool of applicants through
interviews, tests, and other assessments.
2. Training and Development:
I. Training: Providing employees with the skills and knowledge they need to perform
their jobs effectively.
II. Development: Helping employees grow professionally through career
development programs, mentorship, and learning opportunities.
3. Performance Management: This involves setting clear goals for employees, monitoring
their performance, providing regular feedback, and conducting appraisals to ensure they
meet their targets and improve their skills.
4. Compensation and Benefits:
I. Compensation: Offering fair salaries, bonuses, and incentives based on job
performance.
II. Benefits: Providing additional perks like health insurance, retirement plans, paid
vacations, and other rewards to improve employee well-being.
5. Employee Relations: Managing relationships between employees and the organization,
resolving conflicts, ensuring fair treatment, and maintaining a positive work environment to
boost morale and productivity.
6. Compliance with Labor Laws: Ensuring that the organization follows labor laws and
regulations, such as minimum wage requirements, safety standards, and employee rights, to
avoid legal issues.
7. Health, Safety, and Well-being: HRM is responsible for ensuring a safe and healthy
work environment by implementing workplace safety measures, promoting employee
wellness programs, and maintaining mental and physical health.
8. Employee Motivation: Motivating employees by recognizing their achievements,
providing growth opportunities, creating a positive work environment, and offering
incentives to improve productivity and job satisfaction.
9. Human Resource Planning: Anticipating the organization’s future staffing needs and
planning for recruitment, training, and development of employees to meet the organization’s
long-term goals.
10. HR Information Systems: Using technology and data management tools to track
employee information, monitor performance, handle payroll, and manage other HR activities
efficiently.
CSE-2019| What challenges do HRM, managers and employees
face in the workplace of the 21th century?
Ans:
Challenges for HRM:
External Challenges:
1. Technological Advancements: HR departments must adapt to new technologies such
as HR software, artificial intelligence (AI) in recruitment, and automation, which
require constant updates and employee training.
2. Globalization: With businesses expanding internationally, HR must manage a global
workforce, navigate different labor laws, and handle cultural diversity, language
barriers, and time zone differences.
3. Legal and Regulatory Compliance: HR faces challenges in keeping up with labor
laws and regulations, which differ by country or region. Non-compliance can lead to
legal and financial consequences.
4. Changing Workforce Demographics: HR must address generational differences in
the workforce, balancing the needs and expectations of Baby Boomers, Millennials,
and Gen Z employees.
5. Social Responsibility and Sustainability: HR is under increasing pressure to
implement policies that reflect corporate social responsibility (CSR) and sustainable
practices, as employees and consumers demand ethical business behavior.

Internal Challenges:
1. Employee Engagement and Retention: Retaining top talent and keeping employees
engaged is a key challenge. HR must create meaningful work experiences,
opportunities for growth, and maintain high morale to avoid turnover.
2. Workplace Diversity and Inclusion: Managing and promoting diversity in the
workplace while ensuring all employees feel included, regardless of their background,
is a continuous challenge for HR.
3. Remote and Hybrid Work Models: As more organizations embrace remote and
hybrid work models, HR must ensure productivity, maintain team cohesion, and
address challenges related to remote employee engagement and communication.
4. Succession Planning and Talent Development: HR must focus on identifying and
developing future leaders within the organization to ensure smooth transitions in
leadership and prevent gaps in critical roles.
 5. Managing Employee Well-Being and Mental Health: Addressing employee stress,
burnout, and mental health issues has become a priority, requiring HR to implement
wellness programs, flexible work arrangements, and mental health support.

Professional Challenges:
1. HR Data Analytics: Using data and analytics to make informed HR decisions is
becoming increasingly important. However, many HR professionals face challenges in
collecting, analyzing, and interpreting data effectively.
2. Change Management: HR plays a key role in managing organizational change, such
as mergers, restructurings, or new technology implementations. Guiding employees
through these changes while minimizing resistance is a significant challenge.
3. Employee Skill Development: With rapid changes in industry needs, HR must
provide continuous learning and skill development opportunities to keep employees
competitive and prepared for future challenges.

Challenges for Managers:

1. Managing Remote and Hybrid Teams: With the rise of remote work, managers need
to find ways to maintain team productivity, communication, and morale despite
physical distances.
2. Adapting to Technological Changes: The fast pace of technological advancements
requires managers to stay updated with new tools and software while ensuring
employees are trained to use them efficiently.
3. Workforce Diversity: Managing a diverse workforce that includes people of different
cultures, ages, and backgrounds requires sensitivity and understanding to promote
inclusion and collaboration.
4. Talent Retention: Retaining top talent is challenging, especially with increased
competition in the job market. Managers need to provide opportunities for growth,
engagement, and development to prevent turnover.
5. Dealing with Employee Burnout: The pressure of constant connectivity and high
workloads can lead to employee burnout. Managers need to balance productivity
demands with employee well-being.
6. Embracing Sustainability and Social Responsibility: There is growing pressure on
companies to be socially responsible and environmentally sustainable, which requires
managers to align business goals with these expectations.
Challenges for Employees:
1. Technological Skill Gaps: Employees need to constantly learn and adapt to new
technologies and software. Those who struggle with digital tools may find it difficult
to keep up with the demands of modern jobs.
2. Work-Life Balance: Balancing work and personal life has become harder with the
rise of remote work and the expectation of being available around the clock.
Employees face pressure to manage their time effectively.
3. Job Insecurity: Rapid changes in industries due to automation, artificial intelligence,
and outsourcing create uncertainty about job stability, making employees anxious
about their future roles.
4. Increased Performance Expectations: Employees are expected to be more
productive, innovative, and adaptable in fast-paced environments, leading to stress and
high performance pressure.
5. Career Development: With the changing nature of work, employees need to
continuously upgrade their skills to stay relevant and grow in their careers. This
constant need for learning can be overwhelming.
6. Mental Health Issues: The pressures of modern work environments, such as high
competition and long working hours, can negatively impact employees' mental health,
leading to anxiety, stress, and depression.
CSE-2022| What are the objectives of HRM?
Ans:
The objectives of Human Resource Management (HRM) focus on effectively managing
people within an organization to achieve both organizational and individual goals. Here are
the key objectives of HRM:
1. Ensuring Efficient Use of Human Resources: HRM aims to utilize human resources in
the most efficient way possible. This means matching the right employees to the right
roles and ensuring their skills are fully utilized.

2. Recruitment and Retention of Talent: One of the main objectives is to attract, hire, and
retain skilled employees. By implementing effective recruitment strategies and offering
career growth opportunities, HRM ensures that the organization has the right people in
place to achieve its goals.

3. Enhancing Employee Development: HRM focuses on developing employees through

training, workshops, and continuous learning. This helps employees improve their skills
and contribute more effectively to the organization.

4. Improving Employee Motivation and Satisfaction: HRM seeks to create a work

environment that keeps employees motivated and satisfied. This can be achieved through
recognition, rewards, career development opportunities, and maintaining a healthy work-
life balance.

5. Maintaining Healthy Employee Relations: HRM aims to maintain a positive work

environment by resolving conflicts, promoting communication, and fostering
collaboration between employees and management.

6. Ensuring Legal Compliance: HRM ensures that the organization complies with labor
laws, employment regulations, and safety standards. This protects the organization from
legal disputes and ensures fair treatment of employees.

7. Managing Performance Effectively: Another objective is to monitor and assess

employee performance through appraisal systems and feedback. HRM works to improve
performance and productivity by addressing areas for improvement.

8. Supporting Organizational Change: HRM helps organizations adapt to changes,

whether it's technological advancements, restructuring, or market shifts. By managing
transitions and preparing employees for change, HRM ensures smoother transformations.
9. Promoting Diversity and Inclusion: HRM works to create a diverse and inclusive work
environment where employees from different backgrounds feel valued and included. This
diversity can lead to more creativity, innovation, and better decision-making.

10.Succession Planning: HRM identifies and develops future leaders within the
organization, ensuring that key positions are filled when necessary. Succession planning
helps maintain business continuity and leadership strength.
45. Define training. Discuss the importance of training and methods of
training. (CSE-2020,21)
Ans:
Definition of Training :
Training is the process of improving the skills, knowledge,
and abilities of employees to perform their current job more effectively or prepare them for
future roles. It involves structured learning experiences designed to enhance job performance
and productivity.

Importance of Training:
1. Increased Efficiency and Productivity: Training helps employees perform tasks more
efficiently, which boosts overall productivity and reduces errors.
2. Skill Development: Training allows employees to learn new skills or upgrade existing
ones, making them more versatile and better suited for their roles.
3. Employee Satisfaction and Motivation: Providing training shows that the organization
values its employees, which can lead to higher job satisfaction and motivation.
4. Adaptation to Technological Changes: As technology evolves, training ensures
employees are equipped to use new tools and software, keeping the organization
competitive.
5. Reduced Employee Turnover: Employees who receive regular training feel more
engaged and confident in their roles, reducing the likelihood of them leaving the
organization.
6. Enhanced Customer Satisfaction: Well-trained employees can provide better service to
customers, leading to improved customer satisfaction and loyalty.
7. Improved Safety: Training in safety protocols and procedures helps reduce workplace
accidents and ensures compliance with safety regulations.

Methods of Training:
1. On-the-Job Training (OJT): Employees learn by doing their actual tasks under the
supervision of a skilled colleague or manager. It’s practical, cost-effective, and allows
immediate application of skills.
2. Classroom-Based Training: Involves formal instruction in a classroom setting, usually
with an instructor. It’s ideal for theoretical learning and skill development.
3. E-Learning and Online Training: Training delivered via online platforms or e-learning
courses. It’s flexible, allowing employees to learn at their own pace and access content
from anywhere.
4. Workshops and Seminars: These are short-term, intensive training sessions focused on
specific topics, allowing employees to gain deeper knowledge in a particular area.
5. Simulation-Based Training: Involves using simulations or role-playing scenarios to
replicate real work situations. It’s often used in industries like aviation or healthcare to
practice skills in a controlled environment.
6. Mentoring and Coaching: An experienced employee or manager provides guidance and
feedback to less experienced employees to help them grow in their roles.
7. Apprenticeship Programs: Combines hands-on work with formal training, often in
technical or skilled trades like carpentry or plumbing.
8. Job Rotation: Employees are moved between different roles or departments to learn a
variety of skills, which helps in their overall development and understanding of the
business.
48. What is meant by market, marketing (CSE-2020) and marketing
management? (CSE-2021,22) Discuss the importance and functions of
marketing. (CSE-2019)
Ans:
Definition of Market:
\ A market is any place where buyers and sellers meet to exchange
goods or services. This can be a physical location like a store or an online platform. It’s where
products or services are bought and sold.

Definition of Marketing:
\ Marketing is the process of promoting and selling products
or services. It involves understanding what customers want, creating products to meet those
needs, and telling people about them through advertisements or other methods.

Definition of Marketing Management:

\ Marketing management is about
planning and controlling the marketing activities of a business. It includes choosing the right
products, setting prices, promoting them, and making sure they are available in the right places.
It helps ensure that customers get what they need while the business meets its goals.

Importance of Marketing :
1. Identifying Customer Needs: Marketing helps businesses understand what customers
want and need. By researching market trends and consumer behavior, companies can
develop products and services that meet these needs effectively.
Example: A mobile company surveys customers to find out the features they desire in a
new phone.
2. Creating Awareness: Marketing creates awareness about a company's products or
services. Effective promotion helps potential customers know about the benefits and
availability of what the business offers.
Example: A new soft drink company uses advertisements to introduce its brand to
consumers.
3. Building Brand Loyalty: Good marketing helps build brand loyalty by establishing a
positive relationship between the business and its customers. Loyal customers are more
likely to make repeat purchases and recommend the brand to others.
Example: A coffee shop offers a loyalty program where customers earn free drinks after
multiple purchases.
4. Driving Sales and Profit: Marketing activities directly influence sales by persuading
customers to buy. Through promotions, discounts, or persuasive advertising, businesses
can increase their sales volume, leading to higher profits.
Example: A clothing store offers seasonal discounts to attract more customers and boost
sales.
5. Enhancing Business Growth: Marketing helps businesses grow by attracting new
customers, entering new markets, or launching new products. As the customer base
grows, so does the business.
Example: A company expands its operations by introducing a new product line after
identifying a market demand.
6. Supporting Product Innovation: Marketing provides insights into customer feedback,
which helps businesses innovate and improve their products. This continuous innovation
is key to staying competitive.
Example: A tech company uses customer reviews to enhance its product features in the
next release.
7. Improving Business Reputation: Consistent and positive marketing helps build a strong
brand reputation. A company with a good reputation gains trust and credibility, which
helps in attracting more customers.
Example: A sustainable fashion brand promotes eco-friendly practices, enhancing its
reputation for being socially responsible.

Functions of Marketing :
1. Product Planning and Development: This function focuses on creating and improving
products to meet customer needs. It involves identifying what customers want and
designing products that satisfy those needs. The goal is to make sure the product is useful,
attractive, and competitive in the market.
Example: A smartphone company designs a new model based on customer feedback,
adding features like better battery life or an improved camera.
2. Promotion: Promotion is all about letting people know about the product and convincing
them to buy it. This can include advertising on TV, social media, or online, offering
discounts (sales promotion), and managing public relations to create a positive image of
the product or brand.
 Example: A clothing store offers a 20% discount through social media ads to attract more
customers.
3. Distribution: This function ensures that the product is available to customers when and
where they need it. It involves selecting the best channels, like retail stores or online
platforms, and managing logistics to deliver products on time.
Example: An online shopping company ensures fast delivery by partnering with local
couriers.
4. Pricing: Pricing is about setting the right price for the product. The price should cover the
production cost, be competitive with other brands, and match what customers are willing
to pay. Setting the right price is key to attracting customers while also making a profit.
Example: A laptop company sets a competitive price based on the cost of production and
what similar laptops cost in the market.
5. Market Research: Market research is the process of studying the market to understand
what customers want, their buying habits, and how competitors are performing. This
information helps businesses make decisions about product development, pricing,
promotion, and distribution.
Example: A food company surveys customers to find out which flavors are popular
before launching a new snack product.

6. Customer Service: Customer service involves helping and supporting customers before,
during, and after they purchase a product. The goal is to ensure that customers have a
good experience with the company and are satisfied with their purchase. Good customer
service builds trust and encourages repeat business.
Before sales: Answering questions and providing information to help customers make a
decision.
After sales: Handling complaints, offering help with product use, and providing warranty
or repair services if needed.
Example: A company’s support team helps a customer set up a new device after purchase
or offers free repairs if something goes wrong.
CSE-2022| What are the steps of marketing process?
Ans:
The steps of the marketing process guide a company through creating and delivering value
to customers. These steps help ensure that marketing efforts are effective and aligned with
customer needs. Here's a simple breakdown of the marketing process:
1. Understanding the Market and Customer Needs: The first step is to research the
market and understand what customers want, their preferences, and what problems they
face. This involves gathering information on customer behavior, competitors, and market
trends.
Example: A smartphone company conducts surveys to find out what features customers
want in a new phone.
2. Developing a Marketing Strategy: Based on the research, the company creates a plan to
target the right audience. This includes deciding on the product’s positioning in the
market and how it will meet the needs of specific customer groups.
Example: A business decides to target young adults by creating stylish, affordable
smartphones with social media-focused features.
3. Designing the Marketing Mix (4 P’s): The company decides on the Product, Price,
Place (distribution), and Promotion to attract customers and create value. These are the
key elements of the marketing mix that ensure the product reaches customers effectively.
o Product: Developing the right product.
o Price: Setting the right price.
o Place: Deciding how the product will be distributed.
o Promotion: Advertising and promoting the product to the target audience.
Example: The company sets a competitive price, chooses online and retail stores for
distribution, and runs social media ads to promote the smartphone.
4. Implementing the Marketing Plan: What It Means: This is the stage where the
marketing strategy and marketing mix are put into action. It involves launching
advertising campaigns, distributing products, and executing sales efforts.
Example: The smartphone company launches its ad campaign, releases the phone in
stores, and ensures stock availability.
5. Monitoring and Evaluating Performance: After launching, the company tracks how
well the marketing plan is working. It checks if sales targets are being met, if customers
are happy, and if changes are needed to improve the strategy.
Example: The company monitors customer feedback on social media and checks sales
numbers to see if the phone is selling as expected.
CSE-2019,21| What are marketing mix? What are the elements of
marketing mix?
Ans:
Definition of Marketing Mix:
The marketing mix refers to a set of key elements
that a business uses to promote and sell its products or services effectively. It’s a combination
of strategies that businesses use to meet customer needs and achieve their marketing goals.
The marketing mix is commonly known as the 4 P's: Product, Price, Place, and Promotion.
These elements work together to create a successful marketing plan.

Elements of Marketing Mix:

1. Product: The product is the actual good or service that meets the needs or wants of
customers. This involves decisions about design, features, quality, packaging, and
branding.
Example: A company designs a new smartphone with advanced camera features to attract
photography enthusiasts.
2. Price: Price refers to how much a customer pays for the product. It must be set in a way
that reflects the value of the product, covers costs, and remains competitive in the market.
Example: A company sets a competitive price for its smartphone, keeping it affordable
compared to other brands while ensuring profit.
3. Place (Distribution): Place is about how and where the product is made available to
customers. It involves selecting distribution channels (like stores or online platforms) and
ensuring the product is accessible.
Example: The smartphone company sells its products both online and in major
electronics stores.
4. Promotion: Promotion includes all the activities that communicate the product's benefits
to customers. This involves advertising, sales promotions, public relations, and social
media marketing to create awareness and attract buyers.
Example: The company uses social media ads, TV commercials, and discounts to
promote its smartphone.
CSE-2019| Write the differences between marketing and distribution.
Ans:
Difference between Marketing and Distribution:
Marketing Distribution
Focuses on promoting and selling products. Focuses on the product and making the sale.
Involves activities like market research, Involves activities like logistics,
advertising, branding, and pricing. transportation, inventory management, and
warehousing.
Aims to create demand for the product Aims to ensure the product is available to
customers at the right time and place.
Includes customer relationship management Includes choosing the right channels
and building brand awareness. (online, retail stores, etc.) to make products
accessible.
Deals with understanding customer needs Deals with the physical movement and
and designing products that meet those storage of products from manufacturer to
needs.. consumer.
Example: A company launches a Example: A company partners with a
promotional campaign to increase delivery service to ensure fast shipping to
awareness of its new product. customers
49. Show the difference between marketing and selling.
Ans:
Difference between marketing and selling:
Marketing Selling
Focuses on customer needs and satisfying Focuses on the product and making the sale.
them.
Long-term process of building relationships Short-term goal of completing a sale.
with customers.
Includes market research, product Mostly about convincing customers to buy
development, promotion, and after-sales the product.
service.
Aims to create value for both the customer Aims to push products to generate
and the company. immediate revenue.
Focuses on building brand loyalty and Focuses on completing individual
customer retention. transactions.
CSE-2020,21,22| Briefly explain the 7C's of customer.
Ans:
The 7 C's of Customer focus on creating a strong relationship between a business and its
customers. These principles help in delivering better customer value and experience. Here's a
brief explanation:

1. Customer Needs: Focus on understanding and meeting the actual needs of the customer.
This involves researching and prioritizing what customers want, ensuring that your
product or service satisfies their requirements.

2. Convenience: Make the buying process as easy as possible for customers. This could
involve offering multiple payment options, making your product easily accessible, and
providing user-friendly service.

3. Cost to the Customer: Focus on the total cost a customer incurs, not just the price of the
product. This includes maintenance, delivery fees, and any other expenses. Businesses
should aim to offer value for money.

4. Communication: Establish open and effective communication with your customers. Use
advertising, social media, and customer service to engage customers, answer their
questions, and address their concerns.

5. Consistency: Ensure consistent quality in products and services. Consistency builds trust
and makes customers feel confident about choosing your brand again and again.

6. Caring: Show that you care about your customers by providing excellent customer
service, being responsive to their issues, and showing empathy in resolving problems.

7. Community: Build a sense of community around your brand by connecting with

customers on social media, hosting events, or creating loyalty programs. Engaging
customers in this way makes them feel valued and more loyal.

These 7 C's help businesses focus on creating better customer experiences, increasing
loyalty, and building long-term relationships.
50. Discuss the 4Ps and 4Cs of marketing.
Ans:
4P's of Marketing (Company-Centric Approach):
1. Product: Refers to the actual good or service offered to the market that satisfies customer
needs. It includes product design, features, quality, branding, and packaging.
Example: A smartphone with advanced features and sleek design.

2. Price: The amount a customer pays for the product. Price should reflect the product's
value, cover costs, and be competitive in the market.
Example: A company sets a price based on production costs, competitor prices, and
customer willingness to pay.

3. Place: Place refers to where and how the product is made available to customers. This
includes distribution channels, locations, and logistics.
Example: A company selling products online, in retail stores, or through distributors.

4. Promotion: Promotion encompasses the strategies used to communicate the product’s

benefits to the target audience, including advertising, public relations, and sales
promotions.
Example: A company uses social media ads, TV commercials, and email marketing to
promote its product.

4C's of Marketing (Customer-Centric Approach):

1. Customer Needs: Focuses on understanding and satisfying the needs and wants of the
customer, rather than just selling a product.
Example: A business develops a product after studying what features customers are
looking for.

2. Cost to the Customer: Looks beyond just the price, considering the total cost involved
for the customer, including maintenance, convenience, and time.
Example: Offering affordable products that also save customers time and energy in the
long run.
3. Convenience: Refers to how easily the customer can find and purchase the product.
Businesses should focus on making the buying process as simple as possible.
Example: Making products available online, in local stores, or through home delivery.

4. Communication: Focuses on two-way communication between the company and the

customer, rather than one-way promotion. This includes listening to customer feedback
and building a relationship.
Example: A company responds to customer queries on social media and provides support
through various channels.
51. What is product? Write down its features. (CSE-2019) Discuss different
type of consumer product.
Ans:
Definition of Product:
A product is anything that is offered to the market to satisfy
customer needs or wants. It can be a physical item, a service, or even an idea.

Features of a Product:
1. Quality: The standard of the product, which affects its performance and customer
satisfaction.
2. Design: The aesthetics and functionality of the product, including its shape, color, and
user experience.
3. Features: Specific characteristics or attributes of the product that provide benefits to the
consumer.
4. Brand: The identity of the product, which can include its name, logo, and reputation.
5. Packaging: The materials and design used to contain and protect the product, as well as
to attract customers.
6. Warranty: Assurance or guarantee provided by the manufacturer about the product's
quality and performance.
7. Service Support: Additional services offered, such as installation, maintenance, or
customer support.

Different Types of Consumer Products:

1. Convenience Products: These are everyday items that consumers buy frequently with
minimal effort. They are usually low-priced and widely available.
Example: Snacks, beverages, toiletries.
2. Shopping Products: These products require more time and effort for consumers to
compare before purchasing. Consumers usually look for quality, price, and style.
Example: Clothing, electronics, furniture.
3. Specialty Products: These are unique products that consumers make a special effort to
purchase. They often have strong brand loyalty, and customers are willing to go out of
their way to buy them.
Example: Luxury cars, designer clothing, high-end electronics.
4. Unsought Products: These products are not actively sought by consumers until a need
arises. They often require aggressive marketing to bring them to consumers' attention.
Example: Life insurance, funeral services, emergency medical services.
52. What is meant by product's life cycle? Describe the stages in the
product's life cycle.
Ans:
Definition:
A product's life cycle refers to the stages a product goes through from when it
is first introduced to the market until it is no longer sold.

Stages of the Product Life Cycle :

1. Introduction: The product is launched, and sales are slow as customers are just
learning about it.
2. Growth: Sales increase as more people buy the product and it becomes popular.
3. Maturity: Sales level off as most customers have already bought the product.
Competition may increase.
4. Decline: Sales drop as newer products take over, and the demand for the product
decreases.
CSE-2020| Discuss product life cycle with their characteristics, marketing
objectives, marketing strategies with appropriate examples.
Ans:
The Product Life Cycle (PLC) is a model that describes the stages a product goes through
from its introduction to the market until its decline or withdrawal. The PLC has four main
stages: Introduction, Growth, Maturity, and Decline. Each stage has distinct characteristics,
marketing objectives, and strategies. Here's a breakdown with examples:

1. Introduction Stage: This is when the product is launched in the market.

Characteristics:
I. Low sales volume, as customers are just becoming aware of the product.
II. High costs due to product development and promotion.
III. Limited or no profits, as the focus is on creating awareness.
IV. Few competitors, since the product is new.
Marketing Objectives: Create product awareness and stimulate trial among early
adopters.
Marketing Strategies:
I. Product: Introduce a basic version of the product.
II. Price: Use a high price (skimming strategy) to recover initial costs or low price
(penetration strategy) to attract customers.
III. Place: Selective distribution in key locations to focus on core customers.
IV. Promotion: Heavy promotion to create awareness through advertising and
public relations.
Example: When Tesla introduced its first electric car, the focus was on creating
awareness of electric vehicles and convincing early adopters to try the product.

2. Growth Stage: At this stage, the product gains acceptance, and sales start to increase
rapidly.
Characteristics:
I. Rapid growth in sales.
II. Decreasing costs due to economies of scale.
III. Growing competition as more companies enter the market.
IV. Increasing profits.
Marketing Objectives: Maximize market share and establish a strong brand presence.
 Marketing Strategies:
I. Product: Improve product quality, add features, and introduce new models.
II. Price: Lower prices to attract more customers and outcompete rivals.
III. Place: Expand distribution channels to reach a wider audience.
IV. Promotion: Shift focus from awareness to brand loyalty, emphasizing the
product's benefits over competitors.
Example: Apple's iPhone grew rapidly in popularity during the growth stage, with regular
feature updates and improvements, leading to increased demand and more competitors
entering the smartphone market.

3. Maturity Stage: In this stage, the product has saturated the market, and sales begin to
slow down.
Characteristics:
I. Peak sales volume, but growth slows or stabilizes.
II. Increased competition leads to price reductions and marketing expenses.
III. Profit margins may decrease due to pricing pressures.
IV. Market becomes saturated, and only the strongest competitors remain.
Marketing Objectives: Defend market share while maximizing profitability.
Marketing Strategies:
I. Product: Diversify product range to appeal to different market segments (e.g.,
new colors, versions).
II. Price: Maintain competitive pricing or offer discounts to retain market share.
III. Place: Intensify distribution efforts, making the product available in as many
outlets as possible.
IV. Promotion: Use promotional campaigns, loyalty programs, and other tactics to
differentiate the product from competitors.
Example: The Coca-Cola brand is in the maturity stage. The product is well-established,
and the company uses promotional tactics like branding, sponsorships, and loyalty
programs to maintain its dominance in the soft drink market.

4. Decline Stage: At this stage, the product faces reduced demand and sales begin to fall.

Characteristics:
I. Declining sales and profitability.
 II. Decreased customer interest or obsolescence due to newer technologies or
changing trends.
III. Competitors may leave the market or shift focus to newer products.
IV. Inventory and production cutbacks.
Marketing Objectives: Reduce expenses and decide whether to continue or discontinue
the product.
Marketing Strategies:
I. Product: Reduce the product line by discontinuing weak items or focusing on
niche markets.
II. Price: Lower prices to clear inventory and attract remaining customers.
III. Place: Limit distribution to the most profitable areas or channels.
IV. Promotion: Cut back on advertising or focus on cheaper promotional efforts.
Example: DVD players have entered the decline stage due to the rise of streaming
services. Manufacturers are phasing out production and offering discounts to clear out
remaining stock.
53. What is meant by price? Describe the importance / objective of price.
Ans:
Definition:
Price is the amount customers pay for a product or service. It impacts a
company’s revenue, affects demand, and serves as a competitive tool. A well-set price balances
customer value with business profitability.

Importance/Objectives of Price :
1. Revenue Generation: Price is the main way companies make money.
2. Market Positioning: Pricing can position a product as luxury or affordable.
3. Competitiveness: Setting the right price helps a business compete with others.
4. Customer Perception: Price affects how customers view the product's value.
5. Profitability: A well-set price helps cover costs and ensures profit.
54. Discuss the major strategies for pricing and initiatives for new products.
Ans:
Major Pricing Strategies :
1. Cost-Plus Pricing: Adding a fixed percentage to the cost of producing the product.
2. Competitive Pricing: Setting prices based on what competitors are charging.
3. Value-Based Pricing: Setting prices based on the perceived value to the customer.
4. Penetration Pricing: Offering a low price initially to attract customers, then raising it
later.
5. Skimming Pricing: Setting a high price at launch and lowering it over time as
competition increases.

Pricing Initiatives for New Products :

1. Market Penetration Pricing: Starting with a low price to gain market share quickly.
2. Price Skimming: Launching with a high price to target early adopters willing to pay
more.
3. Trial Pricing: Offering special introductory prices to encourage customers to try the
product.
55. Define market segmentation. Discuss different levels of market
segmentation.
Ans:
Definition:
Market segmentation is the process of dividing a large market into smaller
groups of customers who have similar needs or characteristics.

Levels of Market Segmentation :

1. Mass Marketing: Targeting the whole market with one product and strategy.
2. Segment Marketing: Targeting different customer groups with specific products and
strategies.
3. Niche Marketing: Focusing on a small, specialized group of customers with very
specific needs.
4. Micro Marketing: Targeting individuals or small groups, offering highly customized
products or services.
56. What is money? Discuss the function of money.
Ans:
Definition:
Money is anything widely accepted as a medium of exchange for goods and
services.

Functions of Money :
1. Medium of Exchange: Used to buy and sell goods and services.
2. Store of Value: Keeps its value over time, allowing people to save.
3. Unit of Account: Provides a standard measure of value for goods and services.
4. Standard of Deferred Payment: Used for borrowing and lending, with the
expectation of future payments.

57. What is meant by financial management? Discuss the functions and

principles of business finance.
Ans:
Definition:
Financial management involves planning, organizing, and controlling a
company's financial resources to achieve its goals.

Functions of Financial Management :

1. Investment Decisions: Choosing where to invest the company's money.
2. Financing Decisions: Deciding how to raise funds (e.g., loans, shares).
3. Dividend Decisions: Determining how much profit to share with shareholders.
4. Cash Management: Managing day-to-day cash flow to ensure smooth operations.

Principles of Business Finance :

1. Profitability: Ensuring the business makes a profit.
2. Liquidity: Having enough cash to meet short-term obligations.
3. Safety: Ensuring investments and financial activities are low risk.
4. Growth: Planning for future business expansion and sustainability.
58. Define risk. Describe the essential characteristics of an insurable risk.
Ans:
Definition:
Risk is the chance of something going wrong, such as losing money or facing
damage.

Characteristics of Insurable Risk :

1. Measurable: The risk must be quantifiable in terms of money.
2. Uncertain: The event should be unpredictable.
3. Accidental: It must be a chance occurrence, not intentional.
4. Significant: The potential loss must be large enough to justify insurance.
5. Pure Risk: Involves only the chance of loss, not gain.
59. Describe the types of insurance.
Ans:
Types of insurance :
1. Life Insurance: Provides financial support to beneficiaries after the insured person's
death.
2. Health Insurance: Covers medical expenses in case of illness or injury.
3. Auto Insurance: Protects against financial losses from car accidents or theft.
4. Home Insurance: Covers damage or loss to a home due to events like fire or natural
disasters.
5. Travel Insurance: Protects against risks while traveling, like trip cancellations or
medical emergencies.

60. What is accounting? Discuss the objectives/importance of accounting.

Ans:
Definition:
Accounting is the process of recording, summarizing, and reporting financial
transactions of a business.

Objectives/Importance of Accounting :
1. Record Keeping: Keeps track of all business transactions.
2. Financial Reporting: Provides information to stakeholders about the company's
financial health.
3. Decision Making: Helps managers make informed business decisions.
4. Legal Compliance: Ensures the business meets legal financial reporting standards.
5. Performance Evaluation: Helps assess how well the business is doing financially.
61. What is an accounting information system (AIS)? Discuss the functions
of an accounting information system.
Ans:
Definition:
An Accounting Information System (AIS) is a system used to collect, store,
and process financial and accounting data.

Functions of AIS :
1. Data Collection: Gathers financial data from business transactions.
2. Data Processing: Processes the data into useful financial reports.
3. Storage: Safely stores financial information for future use.
4. Financial Reporting: Provides reports to management, investors, and other
stakeholders.
5. Internal Control: Helps ensure the accuracy and security of financial data.
62. What is a computer? Discuss the importance of computers.
Ans:
Definition:
A computer is an electronic device that processes data and performs tasks
according to instructions (programs).

Importance of Computers :
1. Speed: Can process large amounts of data quickly.
2. Storage: Can store vast amounts of information.
3. Accuracy: Minimizes human errors in tasks like calculations.
4. Efficiency: Automates tasks and improves productivity.
5. Connectivity: Helps people communicate and share information globally.