InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 10501. |
Explain any three major problems faced by new European merchants in setting up their industries in towns before the Industrial Revolution. |
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Answer» (i) Due to the expansion of world trade, the merchants wanted to expand their production. But trade and craft guilds were very powerful. (ii) They could create money problems for the merchants in their town. (iii) Rulers had granted different guilds and the monopoly rights to produce and trade in specific products. So merchants were handicapped in towns. |
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| 10502. |
Describe the functions performed by supply merchants in export trade. |
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Answer» (i) Supply merchants linked the port towns to the inland regions. |
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| 10503. |
How did the East India Company procure regular supplies of cotton and silk textiles from Indian weavers? |
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Answer» The English East India Company used different means to procure silk and cotton from the weavers:
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| 10504. |
Evaluate any three major factors responsible for making the European Union as a political force from being an economic force. |
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Answer» The European Union has evolved over time from an economic union to an increasingly political one. The EU has began to act more as a nation state. While the attempts to have a Constitution for the EU have failed, it has its own flag, anthem, foundation date (1 Nov. 1993), and currency (Euro). It also has some form of a common foreign and security policy in its dealings with other nations. The European Union has tried to expand areas of cooperation while acquiring new members, especially from the erstwhile Soviet Bloc. The process has not proved easy, for people in many countries are not very enthusiastic in giving the EU powers that were exercised by the government of their country. There are also reservations about including some new countries within the EU. The EU has economic, political and diplomatic, and military influence. The EU is the world’s biggest economy with a GDP of more than $12 trillion in 2005. It was more than $16 trillion in 2016. Its currency can pose a threat to the dominance of the US dollar. Its share of world trade is three times larger than that of the US allowing it to be more assertive in trade disputes with the US and China. Its economic power gives it influence over its nearest neighbours as well as in Asia and Africa. |
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| 10505. |
Describe any six criteria for the new membership of Security Council as suggested after 1997. |
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Answer» A new member, as suggested after 1997, should be’ • A major economic power. • A major military power. • A substantial contributor to the UN budget. • A big nation in terms of its populations. • A nation that respects democracy and human rights. • A country that would make the Council more representative of the world’s diversity in terms of geography, economic system, and culture. |
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| 10506. |
What were the major consequences of the disintegration of the Soviet Union for countries like India? |
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Answer» The major consequences of the disintegration of the Soviet Union for countries like India can be analysed as follows: 1. Disintegration of Soviet Union gave an end to Cold War confrontations and to ideological disputes between two superpowers. 2. Military alliances had been abolished and demand arose for world peace and security. 3. Multipolar system was surpassed to exist where no single power could dominate and a group of countries could play a crucial role in world politics like NAM Countries. 4. The US became the sole superpower and capitalist economy became dominant at international level. World Bank and IMF became powerful advisors due to their economic support to these countries during transitional period. 5. The motion of liberal democracy emerged as a way to organise political life. 6. Due to disintegration of Soviet Union many new countries emerged with the independent aspirations and choices. 7. The Baltic and East European states wanted to join European Union and became the part of NATO. The Central Asian countries took the advantage of their geographical location and continued close ties with Russia, West, China and others. |
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| 10507. |
What is global security? |
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Answer» Global Security implies protection from threats which may have effect on people and states globally. It emerged in 1990 to respond global warming, terrorism, health epidemics etc. |
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| 10508. |
Examine any three factors responsible for the US hegemony in the world politics. |
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Answer» Three factors responsible for the US hegemony in the world politics are— 1. The US power lies in the overwhelming superiority of its military power. American military dominance today is both absolute and relative. In absolute terms, the US today has military capabilities that can reach any point on the planet accurately, lethally and in real time, thereby crippling the adversary while its own forces are sheltered to the maximum extent possible from the dangers of war. 2. No other power today can remotely match them. The US today spends more on its _ military capability than the next 12 powers combined. Further more, a large chunk of the Pentagon’s budget goes into military research and development, or, in other words, technology. Thus, the military dominance of the US is not just based on higher military spending, but on a qualitative gap, a technological chasm that no other power can at present conceivably span. 3. The US invasion of Iraq shows that the American capacity to conquer is formidable. Similarly the US capability to deter and to punish is self-evident. More than forty countries joined in the US-led ‘coalition of the willing’ after the UN refused to give its mandate to the invasion. Thus, no country can deny the US superiority in the world politics. |
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| 10509. |
Explain the three types of US hegemony and give examples for each. |
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Answer» (i) Hegemony as Hard Power : 1. This’hegemony signifies military status of America to be both absolute and relative. In absolute terms, it has military capabilities to reach any point on the planet accurately and no other power today can remotely match them. 2. The US military dominance is based on both the higher military expenditure and on a qualitative gap i.e. technological know-how. (ii) Hegemony as Structural Power : 1. It signifies ‘Economic Prospects’ of hegemon power to possess both the ability and the desire to establish certain norms for order and sustain global structure even including goods to be consumed by one person without reducing the amount of goods available for someone else. 2. A classical example is academic degree MBA (Masters in Business Administration) to presume business as a profession to be dependent upon skills that can be taught in a University which is uniquely American. (iii) Hegemony as Soft Power : 1. US Hegemony has its cultural dimensions also which implies class ascendancy in social, political and particularly ideological spheres to shape the behaviour of competing and lesser powers. Here, the consent goes hand in hand and more effective than coercion. 2. For example, most of the dreams of individuals and societies across the globe, are dreams churned out by practices prevailing in twentieth-century America. All these are about the capacity to manufacture consent. |
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| 10510. |
Describe the series of events that led to the formation of Bangladesh. |
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Answer» The series of events that led to the formation of Bangladesh are:
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| 10511. |
Highlight any three important changes that have been brought about at the international level after the end of cold war. |
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Answer» The three changes that have taken place at the international level in the post-cold war period are as follows: (i)The emergence of a unipolar world after the disintegration of USSR has led to the rise of US hegemony at the International level. The rise of a debate between Unipolar and multipolar world order. (ii) The rise of various constraints on US hegemony and the emergence various alternatives centres of powers in the world. (iii) A whole new sets of challenges confronts the world today – genocide, civil war, ethnic conflicts, terrorism, climate change , nuclear proliferation, epidemics etc. ( to be explained ) |
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| 10512. |
Although UN has failed to act as an effective check on the hegemony of US, nations prefer its continuation. Suggest any three suitable arguments to justify the relevance of UN in the post cold war era. |
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Answer» Relevance of UN In the post-cold war period: In the unipolar world the UN can and has served to bring US and rest of the world into discussion on various issues. US leaders, in spite of their frequent criticisms of the UN, do see the organization as serving a purpose in bringing together over 190 nations in dealing with conflict and social economic development. The UN does provide a space with in which arguments against specific US attitudes and policies are heard and compromises and concession can be shaped. Given the growing connections and links between societies and various issues of Interdependence, the importance and role of UN is likely to increase in future. |
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| 10513. |
Distinguish between: Functional and Divisional Structure on the basis of the following points: (i) Co-ordination (ii) Managerial Development and (iii) Cost |
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Answer» Difference between Functional Structure and Divisional Structure.
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| 10514. |
What changes did the Legal Services Authorities (Amendment) Act,2012 bring in the existing Legal Services Act,1987 ? |
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Answer» The purpose of this amendment is to bring out certain changes in the Legal Services Act, 1987 especially for the establishment of permanent Lok Adalats to settle disputes concerning public utility services at pre-litigation state. |
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| 10515. |
Explain the main reason behind amendment of the Legal Services Authority Act, 1987 in 2002 and also explain the amendment so made. |
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(1) Transport service for the carriage of passengers of goods by air, road or water; or (2) Postal, telegraph or telephone service; or (3) Supply of power, light or water to the public by any establishment; or (4) System of public conservancy or sanitation; or (5) Service in hospital or dispensary; or (6) Insurance service. |
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| 10516. |
Early Vietnamese nationalists had a close relationship with Japan and China in the first decade of the twentieth century.’ Support the statement with three examples. |
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Answer» Vietnam i. In the first decade of the 20th century a 'Go East Movement' became popular. ii. These nationalists looked for foreign arms and help. They appealed to the Japanese for help. iii. Japan had modernized itself and had resisted colonization by the west. iv. Vietnamese students established a branch of the Restoration Society in Tokyo but after 1908, the Japanese Ministry stopped them to do so. Many, including Phan Boi Chau, was deported and forced to seek exile in China and Thailand. |
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| 10517. |
Jasbir read in the newspaper that there is a special offer on the purchase of LCD T.V. He went to Vikram Electronics. He purchased goods according to his need and satisfaction. He is not forced by any sales person to purchase any product. i. Name the promotional tool which has bought him to the shop. ii. State any two qualities of a good salesman. iii. Name and explain the consumer rights highlighted in the above para |
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Answer» i Advertisements. ii. Honesty, convincing ability. iii. Right to choose : a. Every consumer has the right to choose the product at competitive prices which are fair and reasonable. b. He must have access to the variety of goods available and must be able to compare the relative qualities and prices of similar products. |
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| 10518. |
How is money used as a medium of exchange? Explain with Examples. |
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| 10519. |
Discuss the purpose of Rio de Janeiro Earth Summit and Agenda 21.orWhat was the purpose of the Earth Summit held in Rio de Janeiro Brazil in 1992? What are the main provisions of Agenda 21 signed at this Summit? |
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Answer» In june 1992 heads of varios states met in Rio De Janeiro in Brazil for the first international earth summit. The Rio De Janeiro summit was held to address environmental problems and socio economic development at global level and during this summit agenda 21 was also adopted. Agenda 21 is a declaration signed by world leaders to prevent environmental damages, poverty, diseases etc. through global cooperation. |
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| 10520. |
What is meant by enterprise? Classify enterprises on the basis of ownership. |
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Answer» When a person, a group of persons, is engaged in the production or distribution of goods or services which are meant mainly for the purpose of sale, it is called an enterprise. Enterprises can be classified into Private and Public sector enterprise. |
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| 10521. |
What is meant by the Bretton Woods Agreement? |
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Answer» The Bretton Woods Agreement was finalised in July 1944 at Bretton Woods in New Hampshire, USA. It established the International Monetary Fund and the World Bank to preserve global economic stability and full employment in the industrial world. These institutions also dealt with external surpluses and deficits of member nations, and financed post-war reconstructions. |
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| 10522. |
How does government support both farmers and consumers? |
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Answer» The government of India buys wheat and rice from farmers at a fair price.These, it stores in its godowns and sells at a lower price to consumers through ration shops. Here the government has to bear some of the cost. In this way, the government supports both farmers and consumers. |
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| 10523. |
Write a letter in about 120 words to the editor of ‘National Herald’, New Delhi, about the scarcity of water in your locality suggesting ways to improve the position of water supply. You are Kunal/Karuna of Ghaziabad. |
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Answer» 522, Railway Colony Ghaziabad 27th April 20×× The Editor National Herald, New Delhi Subject : Poor Water Supply Sir Through the columns of your reputed newspaper, I wish to draw your attention towards the water supply in our colony. There is a great scarcity of water in our colony. We’re supplied water for only 3-4 hours per day. The pressure at that time is so low that it is very difficult to finish the chores in time. Moreover, sometimes the water supplied is dirty and unclean. Most of the times, there is a power-cut also during the same hours when the water is supplied which affects us a lot. So, I request the concerned authorities to improve the quality of water supplied in our area and to increase the hours of supply so that the residents of our area do not face water shortage. Everyone is aware that water is a basic necessity and we cannot do anything without it. I hope some positive action will be taken by the authorities at the earliest. Thanking you Yours truly Karuna |
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| 10524. |
Write a letter to the Editor of ‘Times of India’ about the poor condition of roads in your locality. This causes frequent accidents. You are Amit/Amita of 8, Connaught Place, Delhi. |
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Answer» 8, Connaught Place Delhi 10 August, 20XX The Editor The Times of India New Delhi Subject : Poor condition of roads. Sir I would like to draw your kind attention towards the poor condition of roads in our locality. The roads are full of potholes and are very congested. These pot holes get filled with water during the rainy season causing them to become the breeding ground of mosquitoes. Every other day, some accident or the other takes place on the roads due to these potholes. One of these roads further leads to a market place and there is a lot of traffic also on this road. Sometimes, people are caught in a traffic jam during the peak hours. So, through this letter of mine, I request you to take immediate action to improve the condition of the roads so that no one else faces any problem in the future while moving on these roads. Please do the needful as early as possible. Thanking you Yours truly Amit Susmita Awasthi The Editor Subject: Poor condition of roads. Dear Sir, Through the columns of your esteemed newspaper, I would like to draw the attention of the concerned authorities towards the bad condition of roads in our locality. The condition of roads is deplorable with countless potholes making the purpose of the road, a failure. Moreover, things get even worse during the rainy season when potholes are not visible due to the poor drainage system and the area becomes heavily accident prone. The residents are facing a lot of inconvenience due to the road condition. On behalf of the residents of Mayur Vihar, I humbly request you to pass on this information to the concerned authorities and use the influence of your esteemed organization in getting the work done. Yours faithfully, |
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| 10525. |
Describe any three features of Bretton Woods Agreement. |
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Answer» Following were the features of Bretton Woods Agreement: (i) Bretton Woods agreement was signed among the world powers in 1944. (ii) This agreement established IMF and World Bank to preserve economic stability in the world. (iii) Decision making in Bretton Woods Institutions was controlled by the Western Industrial powers. (iv) National currencies followed the fixed exchange rates. (v) It led to an era of unprecedented growth of trade and incomes. |
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| 10526. |
Explain the role of advertisements in creating new consumers for the British products. |
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Answer» The Advertisements helped in creating new consumers for the British products: |
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| 10527. |
Why did O Chandu Menon decide to write a novel in Malayalam instead of translating English? |
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Answer» O. Chandu Menon tried to translate an English novel ‘Henrietta Temple’ written by Benjamin Disraeli into Malayalam. But soon realized that the readers in Kerala were not familiar with the way in which the characters in English novels lived: their clothes, ways of speaking and manners were unknown to them. So the readers would find the novel terribly boring. He gave up the idea of translation and wrote instead a story in Malayalam. |
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| 10528. |
In which three ways did the printed books at first closely resemble the written manuscripts? |
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Answer» At first, the printed books closely resembled the handwritten manuscripts: |
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| 10529. |
How did the villagers help Mrs. Packletide in 'killing' the tiger ? |
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Answer» Mrs. Packletide announced a reward of one thousand rupees for the villagers to make arrangements for the tiger hunt. The villagers were very happy and helped her in all possible ways. They built a platform for her on a tree and placed a goat as bait for the old tiger which they had herded towards it. They posted boys at the outskirts so that the tiger could not get away from that place. Their joy knew no bounds when the tiger died. They carried the good news to the village also to announce its death. |
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| 10530. |
In today's society, people take advantage of the ignorance and innocence of others. Describe this with reference to the poem, The Frog and the Nightingale. |
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Answer» People have become self-centred these days. They do not care about the feelings of others, rather they take advantage of the ignorance and innocence of others. The same is depicted in the poem ‘The Frog and The Nightingale’. The frog has been shown as a greedy, cunning creature who grew envious of the growing popularity of the nightingale who was an innocent bird. He talked to her in a sweet manner in the beginning and convinced her to take vocal training from him so as to achieve perfection. The nightingale was ignorant of his cleverness. She was swept away by his false appreciation and in the desire to become a famous singer, kept on following the instructions of the frog. The frog dominated her so much so that the nightingale didn’t use her reasoning. She followed him blindly and died in the end. It was wrong on the part of the frog. This is a true picture of our society also where moral values are declining. People feel that nobody will understand their intentions so they exploit the ignorant and the innocent. But they forget that a supreme power is watching over them. They repent in the end. One must realise that we should respect the feelings of others and not use them for our benefit. |
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| 10531. |
How was Sebestian Shultz rescued from 'War-Zone'? |
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Answer» Shultz was finally rescued by Michael in the last game ‘War Zone’. This game was played in a city with tall buildings which were windowless. Michael and Shultz saved themselves from the bombs and machine guns and reached a place where helicopter was waiting for them. Michael jumped into the helicopter but Sebastian Shultz was left behind. Suddenly the tank in which Shultz was sitting crashed into the jeep. With the result Sebastion leapt into the air and Michael pulled him up and the helicopter flew away. They had hit the jackpot. This is how Shultz was rescued by Michael out of the last game. |
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| 10532. |
Why did Lavinia give a satisfied smile after seeing Helen, the ghost? |
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Answer» John Hallock thought that after seeing the ghost, Lavinia would grow hysteric. But when Lavinia saw the owl-eyed phantom she was delighted. Certainly this Helen was not the Helen of Troy. She was rather unattractive. She posed no danger to her. Nor could John flirt with such a woman. So didn’t faint as John had thought. On the other hand, a satisfied smile spread over her face. |
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| 10533. |
Describe the salient features of Helen, the ghost highlighting her job and role in the story. How did she influence John and Lavinia in different ways? |
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Answer» Helen, the ghost was long and angular. She had enormous fishy eyes. She wore big bone-rimmed spectacles and put her hair in a tight wad at the back of her head. When John saw her for the first time, she looked so solid that for a moment he believed she was real. She appeared in sections. First an arm came out, then a sleeve, then a leg and at last, she was standing complete there. Helen, the ghost undermined John’s ability as a story writer. She declared that all his plots and creative inspiration came from spirits like her. She claimed to be a writer in ‘the other world.’ However, she had no ideas and direction. With many others like her she organised the Writer’s Inspiration Bureau. They scouted around until they found a writer without ideas and with a mind soft enough to accept impression. But Helen declared that John would not get any creative inspiration or plot from them. They were on strike. The reasons for their strike was the troubles they suffered from ‘those Ouija board fanatics.’ They were always manipulating on their Ouija board’s talking to spirits. Spirits like Helen were always busy in answering their questions on Ouija boards. They had no time for rest or fun. Helen, the ghost asked John to persuade his wife, friends and acquaintances to stop using Ouija boards. Only then they (spirits) would start helping him in writing. Helen really brought John and Lavinia’s married life on the brink of break-up. Lavinia suspected John of flirting with Helen on the Ouija board. She threatened to go back to her grandmother. John thought the end of his domestic bliss and peace was over. However, the encounter of Helen and Lavinia saved the situation. Lavinia didn’t think that an owl-eyed unattractive Helen could pose any danger to her. |
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| 10534. |
"The incidental expenses are heavy" , she confides to inquiring friends. Who is the speaker ? What is she referring to here ? |
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Answer» Mrs. Packletide is the speaker. Her paid companion Louisa Mebbin knew that Mrs. Packletide was unworthy of the honour she received for having killed a tiger. She feared that Mebbin would reveal the truth about the tiger’s death. She had to please Mebbin who exploited the situation. The money spent on Mebbin is referred to as incidental expenses. |
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| 10535. |
Why was Helen, the ghost, going on strike ? |
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Answer» The narrator was not a ghost story writer. Often, he had no idea for writing a ghost story. At that time, Helen, the ghost used to help him by giving him ideas. She used to give him a storyline on which to work. But gradually the number of Ouija Board users started rising. Helen and other ghosts could not get rest as they were called upon so often. They had to answer their questions for long. So they decided to go on a strike |
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| 10536. |
What did Helen, the ghost ask John to do if he wanted their help in future? |
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Answer» Helen, the ghost made it clear that they would go on strike. Actually, they were going on strike because of the troubles that “Ouija board fanatics” were creating for. They had to work a lot. That would mean that John would get no assistance from them. Helen asked John to persuade his friends and acquaintances to stop using Ouija boards. If he was successful doing that, they could start helping him to write again. |
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| 10537. |
Why were they (spirits/ghosts) on strike? How was that to affect John according to Helen, the ghost? |
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Answer» The ghost of Helen told John that all the spirits would go on strike. They had been called out of their beds too often in recent years. It was the fault of “those Ouija board fanatics.” They were always busy manipulating on their Ouija boards. The spirits had to sit at their desk and answer their questions. They were awfully busy and didn’t have time haunting for fun. She told that John would get no assistance in future from them. |
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| 10538. |
Why and how did Helen, the ghost organise ‘The Writer’s Inspiration Bureau?’ |
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Answer» Helen, the ghost revealed that she was a writer in the other (previous) life. But she was confused in thinking and ideas. When she attained her present stage of being, she made up her mind to do something. She found others who had suffered similarly. They organised ‘The Writer’s Inspiration Bureau’. Their aim was to find a writer without ideas and with a mind soft enough to accept impression. The aim was to help such a writer and report to the main office when the case was finished. |
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| 10539. |
What makes Helen, the ghost, and her other co-ghosts organize The Writer’s Inspiration Bureau? |
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Answer» Helen, the ghost and her other co-ghosts organised, The Writer’s Inspiration Bureau. In her previous life she used to write and couldn’t have judged things rationally. After attaining the present form, she decided to do something with the help of those spirits who suffered similarly like her. They wanted to help those writers who were without ideas and with minds soft enough to accept impression. |
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| 10540. |
Read the extracts given below and answer the questions that follow:I found others who had suffered similarly, and between us we organized ‘The Writer’s Inspiration Bureau.’ We scout around until we find a writer without ideas and with a mind soft enough to accept impression. The case is brought to the attention of the main office, and one of us assigned to it. When that case is finished we bring in a report.”(a) Who organised ‘The Writer’s Inspiration Bureau’? (b) What was the aim of the members of ‘The Writer’s Inspiration Bureau’? (c) Write the noun form of the word ‘organised’ given in the passage. |
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Answer» (a) Helen and other ‘sufferers’ like her joined together to organise ‘The Writer’s Inspiration Bureau’. (b) The aim of the members of the Bureau was to scout around to help a writer without ideas and with a mind soft enough to accept impression. (c) organisation |
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| 10541. |
John’s apprehensions about his wife’s reaction to her encounter with the ghost are unfounded. Justify. |
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Answer» John’s apprehensions about his wife’s reaction to her encounter with the ghost are mostly unfounded. Repeatedly he asks Helen, the ghost to disappear before his wife comes. He believes that his sensitive wife ‘can’t bear to have a mouse say boo at her’. The sight of a ghost in her own living-room would be unbearable for her. But Lavinia finds the ‘Owl-eyed phantom’ quite harmless. She finds that she is not the beautiful ‘Helen of Troy’. She doesn’t swoon but a satisfied smile spreads over her face. |
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| 10542. |
How does Helen's appearance in the party make Lavinia get rid of her superstitious belief in Ouija Boards ? |
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Answer» Lavinia hosted an Ouija Board party to which she invited all the members of her book club. Since one of the members was absent, she called John Hallock to be the partner of Laura Hinkle. The moment Laura twinkle started asking the Ouija Board some questions, all the boards spelt out 'traitor' pointing towards Hallock by indicating 'Ask him'. Lavinia was informed of this by Laura and she suspected her husband of infidelity. After the party she went to his room and informed him that she was leaving the house and that her lawyer would talk to him later. Their marriage was on the verge of a break-up. At that moment, she noticed Helen's presence in the room. She realized that Helen was not a real person. It was only a spirit and immediately concluded to herself that Hallock could not be having an affair with a ghost. Thus, she got rid of her superstitious belief in Ouija Boards and told her cook to throw them in fire. |
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| 10543. |
How did Helen look when she first visited the narrator of 'A Shady Plot' ? |
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Answer» John was sitting to write a ghost story. He was searching his mind for inspiration but couldn't find it, Suddenly, he heard a voice in the room and a figure materialised out of thin air. It was the ghost of Helen. She had long angular fishy eyes with spectacles, her hair were tied in a tight wad and she had a solid jaw. She seemed to be angry with him. |
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| 10544. |
“A company is said to be an artificial person created by law, having a separate entity with perpetual succession and a common seal”. Discuss the above statement. |
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Answer» A Joint stock company is the largest form of business organization. It is an association of persons formed for carrying out business activities and has a legal status independent of its members. Companies are compulsorily to be registered under the Companies Act, 1956. Features : (a) Separate legal entity: A company is a legal entity distinct from its shareholders, directors and promoters. Its assets and liabilities are separate from that of its owners. (b) Artificial person: A company is the creation of law. It has to depend upon directors, managers, etc. for getting its work done. It can carry on business in its own name, enter into contracts, buy, sell and hold property, sue and be sued. (c) Limited Liability: The liability of the members is limited to the face value of the shares held by them. They are not personally liable for the debts of the company. (d) Perpetual succession: Being distinct from the members, the death, insolvency, or retirement of its members does not affect the life of the company. Members may come and go, but the company can go forever. It can come to an end only on winding up. (e) Common seal: Common seal is the official signature of the company. It is affixed on all contracts and letterheads, and is legally binding on the company. |
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| 10545. |
Evidence shows that in practice, many democracies did not fulfill the expectations of producing economic development in the country. Validate the statement with the help of relevant example. |
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Answer» (i) If we consider all democracies and all dictatorships for the fifty years between 1950 and 2000, dictatorships have a slightly higher rate of economic growth. (ii) Economic development depends on several factors: country's population size, global situation, cooperation from other countries, economic priorities adopted by the country, etc. (iii) However, the difference in the rates of economic development between less developed countries with dictatorships and democracies is negligible. (iv) Overall, it cannot be said that democracy is a guarantee of economic development. But we can expect democracy not to lag behind dictatorships in this respect. (v) With such a significant difference in the rates of economic growth between countries under dictatorship and democracy, it is better to prefer democracy as it has several other positive outcomes. For example: North Korea has higher rate of economic growth than India. |
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| 10546. |
Saksham Ltd., a firm manufacturing textile, wished to diversify their business. They were considering two options, either to diversify into manufacturing tooth-paste or switches. They wanted to invest in the purchase of land, to set up a manufacturing unit in the backward areas of Gujarat, which would also lead to the generation of employment opportunities in the area, but only after fulfilling all legal requirements and taking appropriate steps to ensure that the environment was not polluted. The finance manager of the company, Mr. Ramakant was asked by the management to prepare a report on the factors which should be considered while making the above investment decision. 1. State any two factors that Mr. Ramakant would give in his report. 2. Also state reasons which make it important for the above decision to be made carefully. |
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Answer» (A) Following are the factors that should be kept in mind by the company while making the investment decision : 1. Cash flows of the project – The financial manager should carefully analyse the amount of cash flows i.e., cash receipts and payments over the life of investment before considering a capital budgeting decision. 2. Rate of return – The financial manager should calculate the expected returns from each proposal and risk involved. 3. Investment criteria – The financial manager should evaluate investment proposals by applying capital budgeting techniques. These techniques involve a number of calculations regarding the amount of investment, interest rate, cash flows and rate of return. (B) The following are the reasons that make the above decision to be made carefully : 1. These decisions have a bearing on the long-term growth. 2. These decisions result in a substantial portion of capital funds being blocked in long-term project. 3. These decisions influence the overall business risk complexion of the firm. 4. These decisions once taken, are not reversible without incurring heavy losses. |
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| 10547. |
Saksham Ltd. a firm manufacturing textiles, wished to diversify their business. They were considering two options, either to diversify into manufacturing tooth-paste or switches. They wanted to invest in the purchase of land, to set up a manufacturing unit in the backward areas of Gujarat, which would also lead to the generation of employment opportunities in the area, but only after fulfilling all legal requirements and taking appropriate steps to ensure that the environment was not polluted. The finance manager of the company, Mr. Ramakant was asked by the management to prepare a report on the factors which should be considered while making the above investment decision. A. State any two factors that Mr. Ramakant would give in his report. B. Also state any one reason which makes it important for the above decision to be made carefully. C. And state two values being fulfilled by Saksham Ltd. |
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Answer» A. Factors that should be kept in mind by the company while making the investment decision: a. The amount of cash flows should be carefully analyzed before considering the decision. b. The rate of return of the project based on expected return and assessment of the risk involved from each proposal should be analyzed. c. The decision to invest in a particular project involves a number of calculations regarding the amount of investment, interest rate, cash flows and rate of return. B. The following are the reasons that make the above decision to be made carefully: a. These decisions have a bearing on the long term growth. b. These decisions result in a substantial portion of capital funds being blocked in long-term project. c. These decisions influence the overall business risk complexion of the firm. d. These decisions once taken, are not reversible without incurring heavy losses. C. Following are the values being fulfilled by Saksham Ltd: a. Responsibility b. Respect for law and order c. Sensitivity to environment d. Development of backward regions. e. Generating employment opportunities |
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| 10548. |
Analyse the role of credit for development. |
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Answer» Development is sustained by a proper credit policy. By giving loans to industries and trade, banks provide them with the necessary funds for carrying on their business without problems. This results in increased production and services, more employment and also profits. Caution is employed by the lenders when high risks are expected, so that there are no losses. Credit from the formal sector needs to be increased as loans from the informal sector, which have very high interest rates, do more harm than good. For this reason, it is important that the formal sector gives out more loans so that borrowers are not exploited by informal sector moneylenders, and the results definitely will contribute to national development. |
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| 10549. |
"Democracy is seen to be good principle but felt to be not good in practice’’. |
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Answer» The reasons for this: (i) The decision-making process in democracy is delayed. (ii) Democracies often frustrate the needs of the people. (iii) It often ignore the demands of majority of its population. (iv) The routine tales of corruption associated with it. (v) Most democracies fall short of elections that provide fair chance to everyone and in subjecting every decision to public debate. |
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| 10550. |
Management cannot be seen but felt. Do you think planning which is the primary function of management can be seen? How can we measure or evaluate the effectiveness of sound planning? Mention any five parameters that declare whether the plan turns out to be a success or a failure. |
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Answer» i. No, planning cannot be seen. ii. The Parameters are : a. Whether planning reduces the risk of uncertainty or not ? b. Whether planning promotes innovative ideas or not ? c. Whether planning provides directions or not ? d. Whether planning reduces overlapping of wasteful activities or not ? e. Whether planning minimizes cost and time or not ? |
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