Explore topic-wise InterviewSolutions in Current Affairs.

1. A statutory corporation is able to manage its affairs with independence and flexibility. 

2. Management of statutory corporation is done without any government interference. 

3. The statutory corporation is relatively free from red tapism. 

4. There is less file work and less formality to be completed before taking decisions. 

5. Board of directors of statutory corporation consists of business experts and the representatives of various groups such as labour, consumers, etc. who are nominated by the government. 

6. Thus, there is professional management in statutory corporation.

Agro based industries

Correct Answer is Migration

USA was the model of government as advocated by Montesquieu put into effect.

1. As multinational corporation is operating on a global basis.

2. Multinational corporation have marketing operations in several countries operating through a network and branches. 

3. They have production facilities in several countries. 

4. Advanced Technology and international business operations are done by MNC. 

5. It brings in much needed foreign capital for the rapid development. 

6. Multinational corporation integrate economies of various nations with the world economy. 

7. Thus, MNC has worldwide existence

1. As MNC is operating on a global basis, they have huge physical and financial assets.

2. In terms of assets and turnover, many MNCs are bigger than national economies of several countries. 

3. Multinational corporations are powerful economic entities. 

4. Multinational corporation keep on adding to their economic power through constant mergers and acquisitions of companies in host countries. 

5. Thus, MNC has mighty economic powers.

Multinational corporation helps to end local monopolies. 

1. Multinational corporations lead to competition in the host countries. 

2. Local monopolies of host countries either start improving their products or reduces their prices. 

3. Multinational corporation put an end to exploitative practices of local monopolists. 

4. As a matter of fact, MNCs compel domestic companies to improve their efficiency and quality. 

5. Thus, MNC helps to end local monopolies.

Public sector Organisation

1. True

2. True

MNC operates at global level.

1. Management is a continuous process. It is an important feature of management. 

2. A manager of an organisation has to perform managerial work to achieve predefined goals of the organisation. To achieve these goals, he as a manager applies various functions of management, principles of management and also techniques of management. 

3. From the beginning till the achievement of success, continuous efforts of every individual is required. Continuity is an integral part of management. It is necessary through out the life of an organisation. 

4. Therefore, management has become necessary to start the activity and to run the activity at the business smoothly. 

5. Thus, management is a continuous activity. It is not a one time process, but it is never ending process.

1. Planning means thinking before doing. It is thinking in advance. Before the action, there is a thinking process. 

2. In the large organisation, management levels are divided into three parts i.e. top, middle and lower. 

3. At the top level management, very few personnels are involves. They are Board of Directors, Managing Directors, President, Chief Executive Officer, etc. 

4. The main function of top level management is to frame the plans and policies of the whole organisation to achieve its goals. 

5. It decides the long term objectives of the organisation and also frames particular plans and policies to get them. Further, it also sees that the policies are properly implemented. 

6. Framing of organizational objectives and accordingly plans and policies to achieve them becomes a tough task of top level management. 

7. Thus, Planning is a task of top level management.

Following are some definitions given by management thinkers :

1. “Management is an art of getting things done through others.” – Mary Parker Follet 

2. “To manage is to forecast, to plan, to organize, to command, to co-ordinate and to control”. – Henry Fayol 

3. “Management is knowing exactly what is to be done and seeing that it is done in the best possible manner.” 

4. “Management is the process consisting of planning, organizing, actuating and controlling, performed to determine and accomplish the objectives by the use of people and resources”. George Terry.

1. Department organisations is financed by annual appropriation from the treasury and its revenue also goes into Treasury. 

2. This enterprise cannot borrow money from the public as enterprise is financed by the government and hence the government controls its affairs. Hence, answerable for its performance to the Parliament. 

3. Government consent is required to borrow from public, if need arises. 

4. Thus, Departmental organisations have no right to borrow funds from outside.

Professions are those occupations which involves rendering of personal services of a special and expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas.

Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

It is the richer segment of society which receives formal credit.

The poor have to depend on the formal sources.

Economic activities are those activities which are undertaken to earn money or financial gain for livelihood.

(i) Lack of double coincidence of wants. 

(ii) Valuations of all the goods cannot be done easily. 

(iii) Certain products cannot be divided.

(c) Non Economic Activities

(d) Salary or wages

Absence of collateral is one of the major reason which prevents the poor from getting bank loans.

Yes, I do agree with the statement. 

• Under the planning commission, there was a one-way flow of policy i.e. from, Central Government to State Government. 
• In NITI Aayog, the flow of policy is from Central Government to State Government and State Government to Central Government between ministers. 
• n the policy-making of the Central Government, State Government will work closely with the center. 
• Governing Council of NITI Aayog consists of all Chief Ministers of the States. 
• Thus, State Government has a more significant role to play under NITI Aayog.

Functions of NITI Aayog: 

• To evolve a shared vision of national development, priority sector, and strategies with the active involvement of states in the light of national objectives. 
• To act as ‘Best Friend at the Centre’. 
• To formulate plans at the village level and aggregate higher levels of government. 
• To provide feedback for constant innovative improvements. 
• To provide advice and encourage partnership with national and international Think-Tank. 
• To create a knowledge, innovation, and entrepreneurial support system. 
• To offer a platform for the resolution of inter-sectoral and inter-departmental issues. 
• To maintain a state-of-the-art resource center for research on good governance.
• To focus on technology up-gradation and capacity building.
• To foster Cooperative federalism, with the active involvement of states.

Yes, I do agree with the statement. 

• The planning commission enjoyed the powers to allocate funds to ministry and state government. 
• NITI Aayog/Think Tank is an advisory body that performs the function of allocation of funds.
• On 31st January 2015, Planning Commission was replaced by NITI Aayog for making policies and to implement them. 
• NITI Aayog aimed at expanding the role of the states, making the role of the state stronger in collaboration with the center.

Correct option is (3) c

Correct option is (1) a and b

• CSR means whatever a company does to give back to the community in which it has a presence. 
• It is the company’s effort to improve society and the environment in some way. 
• It helps society by providing education, healthcare, disaster relief measures, economic empowerment, planting trees, maintaining parks, etc. 
• E.g. Mahindra & Mahindra constructed 4340 toilets in 104 districts of India, especially for girls in Government schools in 2013-14.

Correct option is (b) Single use plans

Matching concept: According to this concept, revenues during an accounting period are matched with expenses incurred during that period to earn the revenue during that period. This concept is based on accrual concept and periodicity concept. Periodicity concept fixes the time frame for measuring performance and determining financial status. All expenses paid during the period are not considered, but only the expenses related to the accounting period are considered.

On the basis of this concept, adjustments are made for outstanding and prepaid expenses and accrued and unearned revenues. Also due provisions are made for depreciation of the fixed assets, bad debts, etc., relating to the accounting period. Thus, it matches the revenues earned during an accounting period with the expenses incurred during that period to earn the revenues before sharing any profit or loss.

The consistency convention implies that the accounting policies must be followed consistently from one accounting period to another. The results of different years will be comparable only when same accounting policies are followed from year to year.

Accounting Standards provide the framework and norms to be followed in accounting so that the financial statements of different enterprises become comparable. It is necessary to standardise the accounting principles to ensure consistency, comparability, adequacy and reliability of financial reporting. Thus, Accounting Standards are written policy documents issued by the expert accounting body or by government or other regulatory body covering the aspects of recognition, measurement, treatment, presentation and disclosure of accounting transactions and events in the financial statements.

(i) No, Every businessman does not need accounting knowledge. The businessman is called sole trader. If he has little accounting knowledge, is enough, but he should have business skill.

(ii) 1. Money measurement concept. 

2. Going concern concept. 

3. Matching concept. 

4. Realisation concept 

5. Accrual concept

(iii) Convention of conservation or prudence concept. The closing stock will be valued at market price or cost price whichever is lower.

(iv) Yes, it is possible for him to compare his business results with that of his competitors, but the method is not accurate. It may be approximated i.e., capital comparison method followed.

(C) paper money

Jagatseths of Bengal were one of the early bankers in India.

SEBI performs three key functions. 

They are:

1. quasi-legislative 

2. quasi-judicial 

3. quasi-executive

(B) Commercial organisation

The first objective of SEBI is to regulate Stock exchanges.

The various powers of a SEBI are explained below: 

1. Powers Relating to Stock Exchanges and Intermediaries: SEBI has wide powers to get the information from the stock exchange and intermediaries regarding their business transactions for inspection.

2. Power to Impose Monetary Penalties: SEBI has power to impose monetary penalties on capital market intermediaries for violations. 

3. Power to Initiate Actions in Functions Assigned 

4. Power to Regulate Insider Trading: SEBI has power to regulate insider trading or can regulate the functions of merchant banker. 

5. Powers Under Securities Contracts Act: For the regulation of stock exchange, the Ministry of Finance issued a notification, for delegating several of its powers under the securities contract Act.

SEBI performs three key functions: 

quasi-legislative, quasi-judicial and quasi-executive.

1. Safeguarding the interests of investors by means of adequate education and guidance. 

2. Regulating and controlling the business on stock markets. 

3. Conduct inspection and inquiries of stock exchanges, intermediaries and self-regulating organizations. 

4. Barring insider trading in securities. 

5. Prohibiting deceptive and unfair methods used by financial intermediaries operating in securities market. 

6. Registering and controlling the functioning of stock brokers, sub-brokers, share transfer agents, bankers, trustees, underwriters who are linked to securities market. 

7. SEBI issues Guidelines and Instructions to businesses orgnisations for issue of shares, 

8. Registering and controlling the functioning of collective investment schemes such as mutual funds.

Money is safe in bank.

Answer is (C) cheques

(A) businessmen

Insider trading means the buying and selling of securities by directors, promoters, etc., who have access to some confidential information about the company. This affects the interests of the general investors and is essential to check this tendency.

(d) Dematerialization

Securities Exchange Board of India was first established in the year 1988.

The headquarters of SEBI is Bombay.

The responsibilities of business towards employees are explained as follows:

(1) Job security: Job security (guarantee) gives mental peace to the employees. In order to encourage employees to work with full concentration, dedication and commitment, the business organisation must give job security and frame rules for confirmation of their service and strictly adhere to them. This will in turn raise their morale, interest and loyalty towards the organisation.

(2) Fair remuneration : The business organisation should pay adequate and attractive salaries along with incentives like overtime allowance, bonus, etc. to all employees. Wages or salaries payable to employees should be fixed by considering nature of work. The business organisations should frame suitable wage plans for increments and timely revision of wages.

(3) Health and safety measures : The business organisations is expected to take necessary steps for protecting the health and hygiene of the employees. Proper sanitation, canteen, medical facilities, hygienic conditions, etc. must be provided to them. Proper maintenance of machines and premises must be done to prevent accidents and control pollution. Business organisation should provide safety equipment such as helmets, safety goggles, gloves, shoes, masks, etc. to the employees.

(4) Good working condition : The business organisations must provide good working conditions to their employees such as adequate lighting, ventilation, safe drinking water, etc. The business organisations are expected to take necessary steps to avoid and minimise air, sound and water pollution. The business organisation must fix proper working hours and norms (shiftwise, if any) with due provisions for lunch break, tea intervals, restrooms, etc.

(5) Recognition of Trade Unions : The business organisation must recognise the right of a worker to join a recognised trade union. The management or employer should not prevent workers from forming a trade union. The management should not follow the policy of “Divide and Rule”. Further, the management should solve the problems of the workers amicably by holding face to face interactions, talks, meetings and negotiations with unions. The management and union should agree to ban lockouts and strikes to protect the interest of both the parties. A business organisation is expected to maintain industrial harmony and peace.

(6) Education and training : The business organisations are expected to take efforts to educate and train the employees. Depending on the nature of job, the business organisation should offer education, training and guidance to their employees free of cost. To update their knowledge, on the latest development and to increase the S efficiency of the employees, the organisation should arrange ‘Refresher in service training’ and ‘Introduction Training’ at regular intervals.

(7) Workers participation in management : The business organisations are expected to encourage workers to participant in the management by forming workers’ committee. The management should encourage the workers ; through different schemes like suggestion schemes, profit sharing, etc. These schemes enable the management to raise employees’ morale and help the management to give them a sense of belonging.

(8) Promotion and career opportunities : Business organisations should offer enough opportunities of promotion to their qualified and talented employees. They should give detailed information about qualification, skills and I experience required to get promotions.

This will increase awareness and motivate the workers to work hard.

(9) Proper grievance procedure : The organisation must introduce a suitable grievance (redressal) procedure to deal with the employees’ complaints. All their queries or problems should be sorted out and solved quickly and amicably.

The employees must feel satisfied that their complaints are attended properly. Management or employer must investigate and take necessary actions to settle the grievances and complaints.

(10) Miscellaneous : 

Management or employer should:

1. give fair treatment to all employees.

2. recognise, appreciate and encourage special skills and talents of the employees.

3. introduce code of conduct for the employees.

4. protect religious, social, political rights of the employees.

5. allow employees to form informal groups.