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Wednesday, January 03, 2018

AHSEC Class 12: Business Studies Solved Question Papers' 2014

Business Studies Solved Question Papers
Full Marks: 100
Pass Marks: 30
Time: 3 hours
The figure in the margin indicates full marks for the questions.
1. Answer the following questions:                                                                      1x10=10
a)      What do you mean by management?                                            1
Ans: Management is the coordination of all resources through the process of planning, organizing, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.  Effectively means doing the right task, completing activities and achieving goals and efficiently means to attain objectives with least amount of resources at a minimum cost.
b)      Write one important objective of Management.                      1
Ans: Obtaining maximum output with minimum input:  A successful management must achieve the objectives of the business by making optimum utilization of available resources effectively.
c)       Who introduced the concept of ‘differential-piece-rate-wage’ system?                       1
Ans: F.W. Taylor
d)      What is a trademark?
Ans: Trademark simply means mark of a trade carried on by an identified entity. It is usually a sign mark or a symbol, word or words.
e)      Give an example of legal environment.                                        1
Ans: Prohibiting the advertisement of alcoholic beverages
f)       What do you mean by disinvestment?                                          1
Ans: Disinvestment refers to the use of a concerted economic boycott to pressure a government, industry, or company towards a change in policy, or in the case of governments, even regime change.
g)      Who evolved the Need Hierarchy theory of motivation?     1
Ans: Abraham Maslow
h)      Grapevine is associated with which form of communication?                            1
Ans: The network of informal communication is called grapevine.
i)        Name one feature of a good control system.                              1
Ans: Suitable: The control system must be suitable for the kind of activity intended to serve. Apart from differences in the systems of control in different business, they also vary from department to department and from one level in the organization to the other.
j)        Give one reason why Working Capital is needed?                   1
Ans: Strengthen the Solvency: Working capital helps to operate the business smoothly without any financial problem. Purchase of raw materials and payment of salary, wages and overhead can be made without any delay.
2. Explain three major components of economic environment.                 3
Ans: ECONOMIC ENVIRONMENT: The survival and success of each and every business enterprise depend fully on its economic environment. The three main factors that affect the economic environment are:
(a)    Economic Conditions: The economic conditions of a nation refer to a set of economic factors that have great influence on business organisations and their operations. These include gross domestic product, per capita income, markets for goods and services, availability of capital etc.
(b)   Economic Policies: All business activities and operations are directly influenced by the economic policies framed by the government from time to time. Some of the important economic policies are: Industrial policy, Fiscal policy, Monetary policy, Foreign investment policy, Export –Import policy (Exim policy)
(c)    Economic System: The world economy is primarily governed by three types of economic systems, viz., (i) Capitalist economy; (ii) Socialist economy; and (iii) Mixed economy. India has adopted the mixed economy system which implies co-existence of public sector and private sector.
3. “Planning is the basic function of Management”. Explain.                      3
Ans. Planning is of vital importance in the managerial process. No enterprise can achieve its objectives without systematic planning. “Planning is the heart of management”. It is also considered to be the basic function of management. The following points highlight the importance of planning function of management:
1.       Planning provides directions: By stating in advance how work is to be done, planning provide direction for action. If goals are well defined, employees are aware of what the organization has to do and what they must do to achieve those goals. Departments and individuals in the organization are able to work in coordination.
2.       Planning keeps the organization on the right path: If there was no planning, employees would be working in different directions and the organization would not be able to achieve its goals efficiently.
3.       Planning reduces the risks of uncertainty: Business enterprises operate in an uncertain environment and face several types of risks. Planning enables these enterprises to predict future events and prepare to face the unexpected events. With the help of planning, managers can identify potential dangers and take steps to overcome them. Thus, planning helps risk and uncertainty.
4. Write any three merits of internal recruitment.                                           3
Ans. The three merits of internal sources recruitment are –
a)      Job Security: It creates a sense of security among employees when they are assured that they would be preferred in filling up vacancies.
b)      Motivation: It motivates the existing employees, for they are assured of the fact that they would be preferred over outsiders when vacancies occur. It gives the scope of development for existing employees of the organisation .    

c)       Improved Commitment: It promotes loyalty and commitment among employees due to sense of job security and opportunities for advancement.
5.  What is informal communication?                                                                     3
Ans. Informal Communication (Grapevine): The informal channel of communication is that channel of communication which is not officially prescribed. It is that route which is used by workmen in an organization to maintain social (informal) relationship amongst themselves.
6. Explain any three factors affecting pricing of a product.                           3
Ans: Factors determining Fixation of price:-
i) Cost of the product: Cost of the product is the main component of the price. No company can sell its product or service at less than the cost of the product. A Fixed and variable cost are to be considered for determining the price.
ii) The utility and demand for the product: Intensive study for the demand for product and service in the market is to be undertaken before the fixation of the price of the product. If demand is relatively more than supply, higher price can be fixed.
iii) Extent of competition in the market: It is necessary to take into consideration prices of the product of the competing firms prior to fixing the price. In case of cut throat competition it is desirable to keep price low.
7. What is procedure in Planning?                                                                           4
Ans: Steps in the Process of Planning
1.       Setting organizational objectives: The first and foremost step in the planning process is setting organizational objectives or goals, which specify what the organisation wants to achieve.
2.       Developing planning premises: Planning is concerned with the future, which is uncertain. Therefore, the manager is required to make certain assumptions about the future. These assumptions are called premises.
3.       Identifying alternative courses of action: Once objectives are set and assumptions are made, then the next step is to identify all possible alternative courses of action.
4.       Evaluating alternative courses: The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved, its feasibility and consequences.
5.       Selecting the best possible alternative: This is the real point of decision making. The best/ideal plan has to be adopted, which must be the most feasible, profitable and with least negative consequences. Sometimes, a combination of plans may be selected instead of one best plan.
8. Write four differences between formal and informal organisation.                   4
Ans. The four differences between formal and information organization are –
Formal Organisation
Informal Organisation
It is created by the Management in the form of structure of authority.
It is created spontaneously by the mutual relations of the employees.
It is established because of the rules and policies of the organization.
It is established due to the social relationship.
Flow of Communication
Communication is defined. It moves according to the chain of command.
Communication can move in any direction.
It is more stable.
It is not stable and so is temporary in nature.
Behaviour of the employees is influenced by the rules and procedures lay down by the management.
Behaviour of employees is spontaneous and governed by personal belief, values and attitudes.

9. State four requisites of good control system.                                4
Ans: Essentials of an Effective control system: The following are the essentials or basic requirements of an effectively control system:
1)      Suitable: The control system must be suitable for the kind of activity intended to serve. Apart from differences in the systems of control in different business, they also vary from department to department and from one level in the organization to the other.
2)      Understandable: The system must be understandable, i.e., the control information supplied should be capable of being understood by those who use it. A control system that a manager cannot understand is bound to remain ineffective.

3)      Economical: The system must be economical in operation, i.e., the cost of a control system should not exceed the possible savings from its use. The extent of control necessary should be decided by the standard of accuracy or quality required. A very high degree or standard of accuracy or quality may not really be-necessary.
4)      Flexible: The system of control must be flexible, i.e. workable even if the plans have to be changed. A good control system would be sufficiently flexible to permit the changes so necessitated.
10. Give four distinctions between money market and capital market.                  4
Ans: Difference between capital market and money market
Basis of  Distinction
Capital Market
Money Market
1)   Meaning
The market dealing in long-term funds is known as capital market.
The market dealing in short-term funds in known as money market.
2)   Constituents
These include new issue market, stock market, stock brokers and intermediaries.
These include call money market, bill market and discounting market.
3)   Participants
Individual and institutional investors operate in the capital market.
Only the institutional investors operate in the money market.
4)   Period/ duration
The instruments of capital market are of long duration, i.e. more than one year.
The money market instruments are of short duration.
5)      Regulation
Capital market is primarily regulated by the Securities and Exchange Board of India (SEBI)
Money market is regulated by the Reserve Bank of India (RBI)

11. “SEBI” is the regulator of the Indian Capital Market”. Explain.                            4
Ans: Yes, I do agree that as SEBI performs many protective (Regulatory) functions for the security market. They are as follows:
a) To check unfair trade practices such as to supply misleading statement to the public, price rigging.
b) To check insider trading in securities. Insider trading means the buying and selling of the securities by those persons (Directors, promoters) who have some secret information of the company and wish to take advantage of it. It hurts the interest of the common man.
c) To provide education to the investors so as to protect them from being exploited by unfair means: or unhealthy activities of the intermediaries.
d) To promote code of conduct relating to the security market (for the companies, stock exchange and intermediaries)
e) To regulate takeover bids of companies.
12. ‘Management is considered an Art or Science or both’- Explain.                        5
Ans: Management As a Science: Science is defined as a systematized body of knowledge and it uses scientific methods of observation measurement, experimentation etc.  Its principles are exact and university applicable. Similarly, Management has systematized body of knowledge and its principles are evolved on the basis of observation. But management being a social science, it is not an exact science.  So management is a soft or inexact science.
Management As an Art: Art refers to the way of doing specific things i.e. it indicates “how an objective is to be achieved.  it is the know-how to achieve the desired results.  Art needs continuous practice to reach the level of perfection.  An art is application of science. Thus art and science are interrelated in the sense that putting scientific principles into practice requires art, which needs special knowledge and skills.
Management is both a science as well as an art.  The science of management provides certain principles that can guide managers in the professional efforts, while the art of management deals with tackling every situation in an effective manner.  Planning and organizing emphasize the science of management while direction, communication motivation coordination and control emphasize art of management.  Getting work done through people is an art of management.
13. Explain five principles of Management development by Henry Fayol.            5
Ans:   Different management experts have explained different principles on the basis of their research. Henry Fayol, a famous industrialist of France, has described fourteen principles of management in his book General and Industrial Management.

While presenting the principles of management Fayol has kept two things in mind. Firstly, the list of the principles of management should not be long but should be suggestive and only those principles should be explained which become applicable in most of the situations. Secondly, the principles of management should be flexible and not rigid so that changes can be made in them in case of need.
Fayol suggested the following 14 principles:
1.       Division of work: Division of work is important for reducing work burden of an employee and improves his skills. This helps an individual to get specialization in his area of expertise. This helps to increase the productivity of an individual.
2.       Authority and Responsibility: Authority is the right to issue command and make decisions. Responsibility is obligation towards organization and decisions made. There must be balance in authority and responsibility. If there is no authority, he cannot fulfill his responsibility and if an individual has an authority he must have equal responsibility.
3.       Discipline: Discipline is important for the success of an organization. There must be good employee-employer relationship. Employees must obey orders and employer must provide good leadership.
4.       Subordination of individual interests to the general interest: The interests of any one employee or group of employees should not take precedence over the interests of the organization as a whole.
5.       Remuneration: Fair wage for the service is important. Every worker should be paid fair remuneration.
14. Explain five external sources of recruitment.              5
Ans: External source of Recruitment: When the candidates from outside the organisation are invited to fill the vacant job position then it is known as external recruitment. Whenever large numbers of job positions are vacant then external recruitment is preferred.
Methods of External sources of recruitment are:
a)      Direct Recruitment: Sometimes the organisations paste notice at the gate of their factory or workshop stating the vacant job positions. The people who are interested in those jobs walk in for interview. This method of external recruitment is called direct recruitment.
b)      Advertising on Television: A new trend of external recruitment is telecast on various channels regarding vacant job position. They telecast the requirement of the job along with the required qualification.
c)       Employment Exchange: Employment exchange act as middlemen between the job-seekers and the organisations who have vacant job positions. The candidates leave their bio-data and details of their qualifications with the employment exchanges and when the organisations approach employment exchanges for suitable candidates.
d)      Placement agencies and Management consultant: Placement agencies provide nation-wide service of matching demand and supply of work force. These agencies invite the bio data and record from various job seekers and send them to suitable clients.
e)      Web Publishing: In internet there are certain websites such as naukri.com and monster.com provides information regarding job seekers and companies which have vacant job position.
15. “Determination of Capital Structure of a Company is influenced by a number of factors”. Explain at least five such factors.                 5
Ans: Capital structure refers to the mix of sources from where long term funds required by a business may be raised i.e. what should be the proportion of equity share capital, preference share capital, internal sources, debentures and other sources of funds in total amount of capital which an undertaking may raise for establishing its business. In simple words, capital structure means the proportion of debt and equity used for financing the operations of business and it is calculated by the following formula:             Capital structure = Debt/Equity.
Following factors are to be considered before determining capital structure.
1.       Cash flow position: If cash flow position of the company is sound, then debt can be raised and if cash flow is not sound debt should be avoided and it must employ more of equity in its capital.
2.       Interest coverage ratio: It is the ratio that expresses the number of times the Net profit before interest and tax covers the interest liabilities. Higher the ratio better is the position of the firm to raise debt.
3.       Control: Issue of Equity shares dilutes the control of the existing shareholders, whereas issue of debt does not as the debenture holders do not participate in the management. Thus if control is to be retained, equity should be avoided.
4.       Cost of debt: If firm can arrange borrowed fund at low rate of interest then it will prefer more of debt as compared to equity.
5.       Flexibility: Excess of debt may restrict the firm’s capacity to borrow further. To maintain flexibility it must maintain some borrowing power to take care of unforeseen circumstances.
Explain five factors affecting requirement of Working Capital.
Ans: Following factors are to be considered before determining the requirement of working capital.
1.       Scale of operations: There is a direct link between the scale of business and working capital. Larger business needs more working capital as compared to the small organizations.
2.       Nature of Business: The manufacturing organizations are required to purchase raw materials, convert them into finished goods, maintain the stock of raw materials; semi finished goods and finished goods before they are offered for sale. They have to block their capital for labour cost, material cost etc, so they need more working capital. In the trading firm processing is not performed. Sales are affected immediately after receiving goods for sale. Thus they do no block their capital and so needs less working capital.
3.       Credit allowed: If the inventory is sold only for cash, it requires less working capital as money is not blocked in debtors and bills receivable. But due to increased competition, credit is usually allowed. A liberal credit policy results in higher amount of debtors, so needs more working capital.
4.       Credit availed: If goods are purchased only for cash, it requires more working capital. Similarly if credit is received from the creditors, the requirement of working capital decreases.
5.       Availability of Raw materials: If the raw materials are easily available in the market and there is no shortage, huge amount need not be blocked in inventories, so it needs less working capital. But if there is shortage of materials, huge inventory is to be maintained leading to larger amount of working capital.
16. Write any five functions of Marketing.                          5
Ans: Functions of Marketing / Marketing activities
a)      Marketing research : It means application of resource of research process in solving the marketing problem. Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantities do they buy, from where do they buy etc.
b)      Marketing planning: Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives.
c)       Product designing and development; Marketer must take decision like, what-product? Which model / size? Brand name? Packaged? Quality level? So that customer needs are satisfied.
d)      Buying & assembling: e.g. car. Raw material like steel, tyres, batteries, seats, stearing wheels etc are bought & then assembled in the form of a complete product.
e)      Packing / labeling: Packaging is defined as a set of tasks or activities which is concerned with the design and production of an appropriate container for the product. A label identity is the product or brand. Labels are attached one to the product package to help the identification and provide some identity to the customer.
Distinguish between Selling and Marketing.
Ans: Difference between selling & marketing concept
Selling starts with the seller & the needs of the seller.
Marketing starts with the buyer & needs of buyer
Seeks to quickly convert products into cash.
Seeks to convert customer ‘needs’ into products.
Seller is the centre of business universe.
Buyer is the centre of the business universe
Views Business as a goods producing process.
Views businesses as a customer satisfying process.
Seller preference determines the formulation of marketing mix.
Buyer determines the shape marketing mix should take.
Selling is product oriented.
Marketing is customer oriented.
Seller’s motives dominate marketing communication.
Marketing communication is looked upon as a tool for communicating the benefits / satisfactions provided by the product.

17. “Delegation of authority is necessary in all types of organisation” Explain the statement.                    6
Ans. Delegation of authority is necessary in all types of organizations. Reasons can be seen through the importance. The importance of delegation of authority may be outlined as follows:
a)      Reduced workload of managers: Delegation of authority permits a manager to share his workload with his subordinates. By passing on the routine work to the subordinates, the manager is able to concentrate on policy matters and decision-making. This would increase his effectiveness.
b)      Effective management: The manager who delegates’ authority can perform much more than the one who does not. This is because the manager can get some work done by his subordinates and is able to concentrate on policy matters and decision-making. This would increase his effectiveness.

c)       Motivation of employees: Delegation implies grant of authority to the subordinates along with responsibility for work. As a result, subordinates have a sense of recognition. They are motivated to work for higher performance.
d)      Employee development: As a result of delegation, employees get more opportunities to utilize their talent. It allows developing those skills which will improve their career prospects.
e)      Reduce the work load of managers: Managers can reduce their workload by sharing their responsibilities and work with the subordinates.
Discuss the importance of organisation.
Ans: Organising is a process by which the management removes conflict among people over work or responsibility, and creates an environment suitable for teamwork. The importance of organizing may be summaries as follows:
a)      Benefits of specialization: The activities are grouped very carefully into specialized jobs on the basis of similarity. Repetitive performance of a particular task leads to specialization.
b)      Clarity in working relationships: The jobs of managers and non managers are clearly defined & differentiated.
c)       Effective administration: Organising provides a clear description of a jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationship enables proper execution of work. This brings effectiveness in administration.
d)      Source of support and security improves job satisfaction: Organising is a source of support, security and satisfaction to managers and employees in performing their assigned tasks. In a sound organisation every individual is assigned the job for which he is best suited. The assignment of right jobs to right persons improves job satisfaction among the employees.
e)      Optimum utilization of resources: A sound organisation helps In the optimum utilization of technological and human resources by avoiding duplication of work and overlapping of efforts.
f)       Adaptation of change: The process of organizing allows a business enterprise to adapt itself according to changes in the business environment. It allows the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth running of the business.

18. What is meant by motivation? Explain its importance in a modern enterprise.                           6
Ans: Motivation is a process of stimulating people to action to achieve desired goal. It is psychological term. It comes automatically from inside the employees as it is the willingness to do the work. Importance of motivation within organisation is given below:
a)      Motivation sets in motion the action of people: Motivation bridges the gap between the ability to work and willingness to work. It enables the management to secure the best utilization of physical and financial resources.
b)      Motivation improves the efficiency of work performance: As motivation builds the willingness to work among the employees, the persons work with imitativeness thereby increasing their work performance.
c)       Motivation leads to stability in the employees: Motivation helps in reducing the labor turnover and absenteeism. It creates confidence among the employees and secures their loyalty to the organization.
d)      Helps in achieving the organisational goals: The motivated employees always try to achieve the organisational goal and contribute their best efforts for the realisation of organisational goals.
e)      Motivation held the managers to introduce changes: Motivated employees are always supportive and co-operative in accepting changes in the organisation.
19. Explain the meaning and objective of Financial Management.                           6
Ans: Business Finance or Financial management refers to that part of the management activity which is concerned with the planning, raising, controlling and administration of the funds used in the business. Its main objective is to use the funds of the business in the most appropriate way.
In simple words we can say financial management refers to “Efficient acquisition of finance, efficient utilisation of finance and efficient distribution and disposal of surplus funds for smooth working of company.”
Objectives of financial management:
Efficient financial management requires existence of some objectives or goals because judgment as to whether or not a financial decision is efficient is to be made in light of some objective. The two main objectives of financial management are:
1) Profit Maximisation: It is traditionally being argued, that the objective of a company is to earn profit, hence the objective of financial management is profit maximisation. Thus, each alternative is to be seen by the finance manager from the view point of profit maximisation.
2) Wealth maximisation: The companies having profit maximisation as its objective may adopt policies yielding handsome profits in the short run which are unhealthy for the growth, survival and overall interests of the business. A company may not undertake planned and prescribed shut-downs of the plant for maintenance, and so on for maximising profits in the short run. Thus, the objective of a firm should be to maximise its value or wealth.
Explain the functions of finance manager of a company.              6
Ans: Functions of a Finance Manager: The twin aspects, procurement and effective utilisation of funds are crucial tasks faced by a finance manager. The financial manager is required to look into the financial implications of any decision in the firm. Some of the important decisions as regards finance are as follows:
1) Estimating the requirements of funds: A business requires funds for long term purposes i.e. investment in fixed assets and so on. A careful estimate of such funds is required to be made.  Forecasting the requirements of funds is done by a finance manager by the use of techniques of budgetary control and long range planning.
2) Financing decision or Decision regarding capital structure: Once the requirements of funds are estimated, a decision regarding various sources from where the funds would be raised is to be taken.
3) Investment decision: Funds procured from different sources have to be invested in acquiring fixed assets as well as current assets. When decision regarding fixed assets is taken it is called capital budgeting decision.
4) Dividend decision: Dividend Decision: This decision is concerned with distribution of surplus funds. The profit of the firm is distributed among various parties such as creditors, employees, shareholders, debenture holders etc. Under this decision the finance manager decided how much to be distributed in the form of dividend and how much to keep aside as retained earnings.
5) Supply of funds to all parts of the organisation or cash management: The finance manager has to ensure that all sections i.e. branches, factories, units or departments of the organisation are supplied with adequate funds.
6) Keeping in touch with stock exchange quotations and behavior of share prices: It involves analysis of major trends in the stock market and judging their impact on share prices of the company's shares.
20. Explain different elements of marketing mix.                            6
Ans: Marketing mix prefers to one of the major concept in modern marketing according Philip Kotler “marketing mix is a set of controllable marketing variables that the firm blends to produce the response it wants in the target market”.
It is the combination of four controllable variables which constitutes the company’s marketing system. The four controllable variables are:
Ø  Product
Ø  Price
Ø  Promotion
Ø  Place
These elements are inter related and inter dependent since decisions in one area usually actions in other area.
4 P’s of Marketing Mix:
1) Product mix: Product is the starting point of all marketing activities. The product mix has the following dimensions: a) Product innovation and invention. b) Product features i.e., shape, size, weight, design, color, quality, standard etc. c) Product planning and development. d) Product range and mix etc.
2) Price mix: Price in decision is important from the point of view of the producer, consumer and seller. The product mix has the following dimension: a) Pricing policies b) Cost of production and profit margin c) Determination of per unit price. d) Discount, rebates and level of margins etc.
3) Promotion mix: Promotion means communication with customers to stimulate them to buy goods. The nature of promotion mix is determined by the marketing environment. There are various dimensions of promotion mix are: a) Advertising and publicity b) Personal selling techniques c) Sales promotion measures d) Public relation techniques etc.
4) Place mix: - place mix is also known as distribution mix. It is concerned with making the goods available to the customers at the places through a chain of marketing channels such as whole sellers, retailer’s middlemen and agents. The place mix has the following directions:  a) Type of intermediaries. b) Different marketing channels c) Physical distribution system etc.
“Money spent in advertisement is a waste”. Do you agree with this statement? Give reasons for your answer.
Ans: Several objections have been raised against advertising and some people criticize advertising as a social waste. The main point of criticism is as follows:
a)      Creates Monopoly in the Market: Advertisement leads to promotion and cover mass level of customers at a time. Large firms can bear the advertisement expenditure but not the small firms, due to that it can eliminate the small firms from the market and creates its monopoly authority in the market.
b)      Higher the Prices of Product: Investment of money in advertisement leads to increase in the price of goods and services for which consumer has to face high prices and pay for it. Hence, more the advertisement cost- more the product cost.
c)       Misleading the consumers: Now days, advertisement misleads the consumers on false representation regarding their goods. Consumer attracts to those goods which are not necessary for them. Thus, advertisement misleads the consumer and sale goods to them.
d)      Wasteful Consumption by the Consumers: Advertisement attracts the consumers for wasteful products which are not necessary for consumers. Due to advertisement businessmen takes undue advantage from them. They sale unhealthy and artificial goods to them and exploits consumer emotions.
e)      Wastage of National Resources: There will be wastage of national resources, valuable stationary, time and energy used by the people or is ignored by them. Here, Valuable resources that can be used to create new industries are wasted in the production of needless varieties and designs.
Answer any one from the following Units.
Unit XII (consumer Protection): Question No. 21
Unit XIII (Entrepreneurship Development) Elective: question No. 22.
21. Explain the importance of consumer’s protection from the point of view of consumer.         6
Ans:  Importance of Consumer Protection from the point of view of consumer:
a)      Consumer’s ignorance: Most of the consumers are ignorant about their light and relief’s available to them. So it was essential to create awareness among consumer for their lights.
b)      Unorganized consumers: Consumer are not much organized so us to protect their interest. Until their organization become strong and powerful, proper protection has to be provided.
c)       Wide Spread Exploitation of Consumer: the balance sheet man through various unfair trades. Practice like loading, black-marketing, adulteration etc.
22. What are the functions of entrepreneurs in relation to economic development?                     6

Write the characteristics of Entrepreneurship.