Management concepts and Organizational

Behaviour
1. What is Planning?
Planning is the process of setting objectives, determining the best course of action to
achieve them, and allocating resources to meet organizational goals. It involves anticipating
future events, deciding on actions, and preparing for any uncertainties that may arise.

2. Write Down any four characteristics of planning.

 Goal-oriented: Planning focuses on achieving specific objectives.
 Continuous: Planning is an ongoing process that adapts to changes.
 Pervasive: It applies to all levels and areas of management.
 Future-oriented: Planning anticipates future challenges and opportunities.

3. Briefly explain the relationship between management planning levels and time spans.
Management planning is divided into three levels: strategic (long-term), tactical (mid-term),
and operational (short-term). Strategic planning sets the overall direction for the
organization, tactical planning translates strategies into actionable plans, and operational
planning focuses on day-to-day activities. The time span varies from long-term in strategic
planning to short-term in operational planning.

4. What are the components or elements of planning?

The key components of planning include:
 Objectives: What the organization aims to achieve.
 Policies: Guidelines for decision-making.
 Procedures: Steps for carrying out tasks.
 Programs: Comprehensive plans that integrate activities.
 Budgets: Financial plans detailing costs and revenues.

5. What is the necessity of planning in modern, complex organizations?

In complex organizations, planning helps set clear goals, allocate resources effectively,
minimize risks, ensure coordination among departments, and improve decision-making. It
provides direction, reduces uncertainty, and enhances overall organizational efficiency and
competitiveness.

6. “Planning is looking ahead, and controlling is looking back” Comment

This statement emphasizes the proactive nature of planning, which focuses on future goals,
and the reactive nature of controlling, which involves reviewing and correcting past actions
to ensure alignment with plans. Both are essential for achieving organizational success.

7. Differentiate between strategic and operational planning.

Strategic planning involves long-term goals, focusing on overall direction and positioning in
the market. Operational planning deals with short-term goals and day-to-day activities to
implement strategies. While strategic planning shapes the future, operational planning
ensures smooth execution of current tasks.

8. What do you understand by MBO?

MBO (Management by Objectives) is a management approach where managers and
employees collaboratively set clear, measurable goals. Performance is then evaluated based
on the achievement of these goals. It focuses on aligning individual objectives with
organizational objectives to improve performance and accountability.

9. What steps are necessary for effective managerial planning?

The key steps in effective planning include:
1. Setting clear and measurable objectives.
2. Analyzing current situations and resources.
3. Developing action plans.
4. Allocating resources and assigning responsibilities.
5. Monitoring progress and making adjustments as needed.

10. Describe the principal elements of planning.

The principal elements of planning are:
 Objectives: Clear, specific goals.
 Strategies: Plans to achieve objectives.
 Resources: Allocation of necessary resources.
 Timeframe: Establishing deadlines.
 Monitoring: Tracking progress and making adjustments.

11. What is planning premise?

Planning premises are the assumptions and conditions that serve as the foundation for
planning. They include forecasts about external factors, such as market conditions, and
internal factors like resource availability and organizational capacity.

12. Write down the meaning of internal and external premise.

 Internal Premise: Assumptions about internal factors, such as employee skills,
organizational culture, and available resources.
 External Premise: Assumptions about factors outside the organization, like economic
conditions, government policies, and market trends.

13. Explain the meaning of controllable, Semi Controllable, and uncontrollable premises.
 Controllable Premises: Factors that can be directly influenced by the organization,
such as employee performance.
 Semi-Controllable Premises: Factors that can be influenced to some extent, like
market demand or supplier relations.
 Uncontrollable Premises: External factors beyond the organization's control, such as
political changes or natural disasters.

14. List any four importance/advantages of planning.

 Clarifies objectives: Helps set clear and achievable goals.
 Reduces uncertainty: Prepares the organization for future challenges.
 Improves coordination: Aligns different departments toward common goals.
 Facilitates decision-making: Provides a framework for making informed decisions.

15. Define Management and What outline its essential characteristics.

Management is the process of planning, organizing, leading, and controlling resources to
achieve organizational goals. Key characteristics include goal-oriented action, decision-
making, coordination of activities, and leadership to guide and motivate employees.

16. Distinguish between management and administration.

Management focuses on the implementation of policies and day-to-day operations, while
administration deals with setting policies and overall governance. Management is more
action-oriented, whereas administration is concerned with higher-level planning and control.
17. There are various meanings of management which depend on the purpose and context
elucidate.
Management can be defined in different ways depending on context:
 As a process: The coordination of activities to achieve goals.
 As a discipline: The study of managing organizations.
 As a function: The responsibilities of managers in various roles (e.g., planning,
controlling).
 As a science/art: The application of principles and techniques to solve problems.

18. What is the difference between manager and scientist?

A manager focuses on coordinating resources and guiding teams to achieve organizational
goals, while a scientist focuses on conducting research and developing theories. Managers
often deal with practical applications, whereas scientists emphasize exploration and
knowledge discovery.

19. Compare and contrast the use of knowledge by doctor and manager.
Doctors use knowledge to diagnose and treat patients, often working with individuals.
Managers use knowledge to make decisions that impact organizations and teams, ensuring
goals are achieved. Both require expertise, but doctors focus on individual health while
managers focus on organizational success.

20. Do you think planning provides direction to enterprise activities?

Yes, planning provides direction to enterprise activities by setting clear objectives and
strategies. It ensures that all actions align with the organization's goals, guiding decision-
making and resource allocation to achieve desired outcomes.

21. What do you understand by organising?

Organizing is the process of arranging resources, tasks, and people to achieve the
organization’s goals. It involves defining roles, establishing relationships, and creating a
structure for the workflow.

22. Define Staffing.

Staffing is the process of recruiting, selecting, training, and placing employees in appropriate
positions within an organization. It ensures that the organization has the right people with
the necessary skills to achieve its goals.
23. What are the four important elements of staffing?
The four key elements of staffing are:
1. Recruitment: Attracting candidates.
2. Selection: Choosing the right individuals.
3. Training: Developing employee skills.
4. Placement: Assigning individuals to appropriate roles.

24. Leaders matter in all types of organizations. Elucidate.

Leaders are critical in any organization because they provide direction, motivation, and
influence. Good leadership fosters a positive work culture, drives innovation, and ensures
effective communication. Leaders are essential in guiding teams toward achieving the
organization’s goals and overcoming challenges.

25. Which level is known as supervisory/operative level of management? What are their
activities?
The supervisory or operative level of management includes first-line managers who oversee
day-to-day operations. Their activities involve supervising employees, ensuring tasks are
completed, providing guidance, and maintaining operational efficiency.

26. Is management a profession? Discuss the implication of Professionalism of

Management.
Management is increasingly recognized as a profession due to its specialized knowledge,
ethical standards, and adherence to best practices. Professionalism in management ensures
that managers make informed decisions, maintain accountability, and uphold organizational
integrity.

27. What is the objective of controlling?

The objective of controlling is to ensure that organizational activities are on track to achieve
goals. It involves setting performance standards, monitoring progress, and taking corrective
actions when necessary to ensure alignment with plans.

28. Describe the different functions of management.

The key functions of management are:
 Planning: Setting objectives and strategies.
 Organizing: Allocating resources and establishing structures.
  Leading: Motivating and guiding teams.
 Controlling: Monitoring progress and making adjustments.

29. Discuss the task expected to be performed by future management to effectively deal
with various challenges.
Future management will need to adapt to technological advancements, changing global
markets, and evolving employee needs. Tasks will include managing remote teams, fostering
innovation, ensuring sustainability, and addressing cultural diversity within the workforce.

30. What is organization?

An organization is a structured group of people working together to achieve common goals.
It involves coordinating resources, defining roles, and establishing processes to accomplish
tasks efficiently.

31. What is the nature of Organization?

Organizations are goal-oriented, structured systems with defined roles and responsibilities.
They can be formal or informal, depending on the level of hierarchy, culture, and
management style. The nature of an organization is influenced by its size, purpose, and
environment.

32. Highlight the process of organizing.

The process of organizing involves:
1. Identifying tasks and goals.
2. Dividing tasks into specific roles.
3. Allocating resources.
4. Assigning responsibilities.
5. Establishing relationships and communication channels.

33. Write some principles of formal organization.

Principles of formal organization include:
 Unity of command: Employees should report to only one superior.
 Division of work: Tasks should be divided to increase efficiency.
 Authority and responsibility: Delegation of authority with corresponding
responsibility.
  Hierarchy: Clear levels of authority and decision-making.

34. What is the importance of organizing?

Organizing is crucial because it helps streamline tasks, improves efficiency, enhances
coordination, clarifies roles and responsibilities, and ensures that resources are utilized
effectively to achieve organizational objectives.

35. What is an organizational chart?

An organizational chart is a visual representation of the structure of an organization. It
shows the relationships between different roles, departments, and individuals, helping to
clarify authority, communication, and responsibility.

36. Discuss any two types of organizational Chart.

 Hierarchical Chart: Displays a top-down structure, where authority flows from the
top to the bottom.
 Matrix Chart: Shows a flexible structure where employees report to more than one
manager, typically in project-based organizations.

37. What is organizational Manual?

An organizational manual is a document that outlines the policies, procedures, and rules
governing the organization. It provides guidelines for employees on their roles,
responsibilities, and expected behaviors.

38. What do you understand by span of control? Explain with the help of a suitable
example.
Span of control refers to the number of subordinates a manager is responsible for. A narrow
span means fewer employees under one manager, while a wide span means more
employees. For example, a manager overseeing 10 employees has a wide span of control.

39. Write down the meaning of departmentation.

Departmentation refers to the process of dividing an organization into distinct units or
departments based on function, product, geography, or customer type. It helps streamline
operations and focus expertise in each area.

40. Write about primary, intermediate, and ultimate departmentation.

  Primary Departmentation: The highest level of division based on major functions or
geographical areas.
 Intermediate Departmentation: Subdivisions within primary departments to focus
on specific tasks.
 Ultimate Departmentation: The smallest division where specific operational tasks
are carried out.
41. Discuss the departmentation by function.
Departmentation by function is the organizational structure where the company is divided
into departments based on specialized functions such as marketing, finance, human
resources, production, etc. This structure allows for efficiency and clear responsibilities
within each functional area.

42. What are the merits of functional organisation structure?

Merits include specialization and expertise within departments, clear lines of authority,
better coordination within functions, and ease in controlling activities. It also allows for
efficient use of resources and reduces duplication of tasks.

43. Write down the demerits of functional organisation structure.

Demerits include limited communication between departments, slow decision-making due
to bureaucracy, lack of flexibility, and over-centralization of authority. It may also result in
conflicts between departments with different objectives.

44. Discuss the meaning of organising as a function of management.

Organizing as a management function involves arranging resources, tasks, and activities to
achieve the organization’s goals. It includes establishing a structure, defining roles, allocating
responsibilities, and coordinating activities within the organization.

45. What are the components of formal organisation?

The components of a formal organization include a defined structure, hierarchical
relationships, clearly defined roles and responsibilities, established policies and procedures,
and systems for communication and decision-making.

46. Distinguish between organisation as a Structure and as a Process.

Organization as a structure refers to the formal system of relationships, roles, and
responsibilities within an organization. As a process, it refers to the ongoing activities of
organizing, such as planning, coordinating, and allocating resources to achieve organizational
goals.
47. Write short note on general terms how organisation structure cause human relation
problems.
An organization structure can cause human relations problems if it is rigid, hierarchical, or
lacks proper communication channels. Poorly designed structures can lead to confusion, role
conflicts, feelings of alienation, and reduced morale among employees.

48. What are the merits of departmentation by product?

Merits include increased focus on specific products, flexibility to respond to market needs,
better control over product lines, and accountability for performance at the product level. It
also allows for more specialization and product-centric decision-making.

49. Define Group Behaviour.

Group behavior refers to the actions, interactions, and dynamics within a group of
individuals working together. It involves how group members influence each other’s
attitudes, behaviors, and decision-making processes.

50. What do you mean by group decision making?

Group decision making involves the process where multiple individuals contribute to making
a decision. It includes discussing options, evaluating alternatives, and reaching a consensus
or majority decision, often leading to more balanced and informed outcomes.

51. Explain managers use groups to make decisions.

Managers use groups for decision-making because groups bring diverse perspectives,
enhance creativity, and reduce biases. Group decisions are typically more informed and can
result in better solutions, as they incorporate multiple viewpoints and expertise.

52. What are the special forms of large group behaviour?

Special forms of large group behavior include collective behavior, crowds, and mass
movements. These behaviors are often spontaneous, unstructured, and can influence
individuals within the group to act in ways they might not on their own.

53. Explain the 4 elements of organisation structure.

The four elements of organizational structure are:
1. Division of work: Assigning specific tasks to individuals or groups.
2. Authority: The right to make decisions and allocate resources.
 3. Coordination: Ensuring activities and tasks are aligned and work together.
4. Communication: The flow of information between levels and departments.

54. List the important features of group.

Important features of a group include common goals, interdependence, roles and
responsibilities, communication, and a sense of belonging. Groups also require cooperation
and coordination among members to achieve objectives.

55. How are groups formed?

Groups are formed through common interests, shared objectives, or social interaction. They
can be created formally by an organization or informally when individuals come together
based on mutual goals or circumstances.

56. What is group cohesion?

Group cohesion refers to the strength of the relationships between group members and
their commitment to working together to achieve the group's goals. High cohesion leads to
better cooperation, morale, and productivity.

57. What are the factors affecting group cohesiveness?

Factors affecting group cohesiveness include common goals, group size, group stability,
leadership, and the presence of external threats. A supportive and collaborative
environment also fosters higher cohesiveness.

58. Differentiate between formal and informal groups in organisations.

Formal groups are officially established by the organization to achieve specific objectives,
with clearly defined roles and responsibilities. Informal groups form naturally based on
personal relationships, shared interests, or social needs within the workplace.

59. State the reason why formal and informal groups form in organisation.
Formal groups form to achieve organizational goals and tasks, providing structure and
direction. Informal groups form for social interaction, emotional support, and shared
interests, helping employees bond and improve their work experience.

60. State the reason why formal and informal groups form in organisation for different
reasons.
Formal groups are created for organizational efficiency, task completion, and goal
achievement. Informal groups form to satisfy social needs, create a sense of belonging, and
foster personal relationships, which may not necessarily align with organizational goals.

61. Define nominal group technique.

The Nominal Group Technique (NGT) is a structured method for group decision-making,
where each member generates ideas independently, and then the group discusses and ranks
the ideas to reach a consensus.

62. List the steps that characterise the Delphi Techniques.

The Delphi technique involves:
1. Distributing questionnaires to experts.
2. Collecting responses and summarizing them.
3. Sending summaries back to experts for further input.
4. Repeating this process until consensus is reached.

63. Give two advantages and disadvantages of Delphi Techniques.

Advantages:
1. Can gather input from experts in different locations.
2. Encourages independent thinking without group pressure.
Disadvantages:
1. Time-consuming due to multiple rounds.
2. May lack the depth of face-to-face discussions.

64. What do you understand by self-managed teams?

Self-managed teams are groups where members are empowered to make decisions, plan,
and manage their own work without direct supervision. They have responsibility for
achieving goals and typically have more autonomy and accountability.

65. State the attributes of team building.

Team building attributes include trust, clear communication, shared goals, mutual respect,
collaboration, and support. These elements help create a strong, cohesive team capable of
working together effectively.
66. Define Stress.
Stress is a physical and psychological response to external pressures or demands. It occurs
when an individual perceives a situation as overwhelming or challenging, leading to a sense
of tension or anxiety.

67. What do you mean by general adaptation syndrome?

General Adaptation Syndrome (GAS) is a three-stage response to stress:
1. Alarm: The initial reaction to stress.
2. Resistance: The body adapts to the stressor.
3. Exhaustion: Prolonged stress leads to burnout or health issues.

68. Explain the approaches to stress.

Approaches to stress include:
 Physiological approach: Focuses on the body's response to stress.
 Psychological approach: Focuses on the mental and emotional impact.
 Cognitive-behavioral approach: Focuses on changing thought patterns to manage
stress.

69. Explain the details of homeostatic approach to stress.

The homeostatic approach to stress views stress as a disruption to the body's balance. The
body attempts to return to a balanced state (homeostasis) by using mechanisms like the
fight-or-flight response, but prolonged stress can deplete these resources.

70. What are the causes of stress?

Causes of stress include workload, tight deadlines, interpersonal conflicts, lack of control, job
insecurity, and personal issues. Environmental factors, such as noise or organizational
changes, can also contribute to stress.

71. What are work stressors?

Work stressors are factors in the workplace that cause stress, such as heavy workloads,
unrealistic expectations, long hours, poor work-life balance, job insecurity, and conflicts with
colleagues or supervisors.
72. How do individuals respond to stress?
Individuals respond to stress in various ways, including through physical symptoms
(headaches, fatigue), emotional reactions (irritability, anxiety), and behavioral changes
(avoiding work, overeating). Responses may vary based on coping mechanisms and
resilience.

73. Explain the consequences of stress.

Consequences of stress include decreased productivity, poor decision-making, burnout,
health problems (like heart disease or insomnia), strained relationships, and reduced overall
well-being.

74. Describe the four approaches to understanding Stress.

1. Stimulus-based approach: Focuses on stressors or events causing stress.
2. Response-based approach: Focuses on the physical and emotional response to
stress.
3. Interactionist approach: Examines the relationship between individuals and their
environment in causing stress.
4. Transactional model: Emphasizes how individuals assess and cope with stressors.

75. Why should organizations help individuals to manage stress?

Organizations should help manage stress to improve employee health, increase productivity,
reduce absenteeism, and enhance job satisfaction. Reducing stress also promotes a healthier
work environment and better employee performance.

76. Why should organizations be concerned about stress at work? What are the costs of
distress to organizations?
Organizations should be concerned about stress because it leads to reduced productivity,
higher absenteeism, increased turnover, and higher healthcare costs. Distress can also harm
employee morale and damage the organization's reputation.

77. What personality characteristics or traits are likely to contribute to a high threshold of
resistance to stress?
Traits that contribute to high stress resistance include emotional stability, optimism,
adaptability, strong problem-solving skills, and a high degree of self-efficacy. These
individuals are better equipped to handle challenges and recover from setbacks.
78. What can organizations do to reduce stress?
Organizations can reduce stress by promoting a healthy work-life balance, providing
employee support programs, offering stress management workshops, improving
communication, and creating a supportive, collaborative work environment.

79. Describe the Individuals preventive stress management methods.

Individuals can manage stress by engaging in physical activity, practicing relaxation
techniques (meditation, deep breathing), maintaining a healthy diet, getting sufficient sleep,
and developing time-management skills.

80. What is the primary prevention, secondary prevention, and tertiary prevention of
stress?
 Primary prevention: Preventing stress by eliminating or reducing stressors.
 Secondary prevention: Managing stress through coping strategies and support
systems.
 Tertiary prevention
81. How is management of stress done in an organisation?
Stress management in organizations involves creating a supportive work environment,
offering training on stress management techniques, providing counseling services,
promoting work-life balance, and fostering open communication channels.
 Economics

1. What is scarcity?
Scarcity refers to the limited availability of resources compared to the unlimited wants of
people.
Because resources like land, labor, and capital are finite, choices must be made.
Scarcity forces individuals and societies to prioritize their needs.
It forms the foundation of economics and influences production and consumption decisions.
Scarcity leads to the need for efficient resource allocation.

2. What is opportunity cost?

Opportunity cost is the value of the next best alternative forgone when a choice is made.
It helps individuals and businesses evaluate what they sacrifice in decision-making.
For example, spending money on a movie means missing out on a meal.
It plays a vital role in budgeting and planning.
Opportunity cost ensures better allocation of limited resources.

3. What is mixed economy?

A mixed economy includes elements of both capitalism and socialism.
It allows both private enterprises and government involvement in the economy.
The government regulates industries to ensure social welfare, while markets provide
efficiency.
It balances profit motive with public interest.
Countries like India and the UK follow a mixed economy system.

4. What is microeconomics?
Microeconomics studies the economic behavior of individual units like consumers and firms.
It focuses on demand, supply, prices, production, and consumption.
Microeconomics helps in understanding how households and businesses make decisions.
It is essential for analyzing market mechanisms and resource allocation.
It forms the basis for many economic policies.

5. What is direct demand?

Direct demand is the demand for goods and services meant for direct consumption.
These are not used for further production but to satisfy immediate human needs.
Examples include food, clothing, and entertainment.
It contrasts with derived demand, which depends on the demand for another product.
Direct demand influences retail and consumer markets.

6. What is income demand?

Income demand refers to the change in quantity demanded of a product due to a change in
consumer income.
If income increases, demand for normal goods also increases.
In contrast, demand for inferior goods may decrease with rising income.
It helps businesses predict consumer behavior during economic changes.
Income elasticity measures this relationship.

7. What is market demand?

Market demand is the total quantity of a good or service that all consumers in a market are
willing to buy.
It is calculated by adding up individual demands.
It changes with price, income, and preferences.
Understanding market demand helps businesses with pricing and production.
It is represented by the market demand curve.

8. Why demand curve slope downwards?

The demand curve slopes downwards due to the law of demand: as price decreases,
quantity demanded increases.
This occurs because of the substitution effect and income effect.
Consumers tend to buy more when goods are cheaper.
It also reflects diminishing marginal utility.
Hence, the relationship between price and demand is inverse.

9. What is elasticity of Demand?

Elasticity of demand measures how much the quantity demanded responds to changes in
price.
If demand changes significantly with price, it is elastic; if it changes slightly, it is inelastic.
It helps businesses in pricing decisions.
Elasticity can also relate to income and substitutes.
It is a key tool in understanding consumer behavior.

10. Explain the relationship between total revenue and elasticity

If demand is elastic, a decrease in price increases total revenue.
If demand is inelastic, a price decrease reduces revenue.
Unitary elasticity means revenue remains unchanged.
This relationship helps firms set optimal prices.
Understanding elasticity is crucial for maximizing profits.

11. What is demand forecasting?

Demand forecasting estimates future consumer demand based on historical data and market
trends.
It helps businesses plan production, inventory, and sales.
Accurate forecasting reduces risks and improves efficiency.
Techniques include trend analysis and expert opinion.
It is essential for strategic decision-making.

12. What is Delphi Method?

The Delphi method is a demand forecasting technique using expert opinions.
Experts answer questionnaires in multiple rounds.
After each round, feedback is shared and responses may be revised.
This continues until consensus is reached.
It is useful for new products and uncertain markets.

13. Define Supply?

Supply is the quantity of a good or service that producers are willing to sell at various prices.
It increases with price, assuming other factors remain constant.
The law of supply explains this positive relationship.
Supply is influenced by production cost, technology, and taxes.
It is represented by the supply curve.

14. What is percentage method?

The percentage method calculates elasticity by dividing the percentage change in quantity
by the percentage change in price.
It helps determine whether demand is elastic or inelastic.
This method is simple and widely used in economics.
Elasticity greater than one means elastic demand.
Less than one indicates inelastic demand.

15. Define Utility?

Utility is the satisfaction or benefit derived from consuming a good or service.
It helps explain consumer preferences and choices.
Total utility increases with consumption, but marginal utility usually decreases.
It is a core concept in consumer behavior.
Utility is measured in hypothetical units called utils.

16. What is budget line?

A budget line represents all possible combinations of two goods a consumer can buy with a
given income.
It depends on prices and income level.
Points on the line show full use of income.
Points below are affordable; above are not.
It is used in consumer equilibrium analysis.

17. Define Cost?

Cost is the expenditure incurred to produce goods or services.
It includes raw materials, labor, and overhead.
Types include fixed, variable, total, and marginal cost.
Understanding cost helps in pricing and profitability analysis.
Cost management is vital for efficient operations.

18. Define Market?

A market is a place or system where buyers and sellers exchange goods and services.
It can be physical or virtual.
Markets vary by competition, product type, and pricing mechanisms.
They play a key role in resource allocation.
Examples include retail markets, labor markets, and financial markets.

19. Define Factor market?

A factor market is where factors of production like land, labor, and capital are bought and
sold.
Firms are buyers, and households are sellers.
Wages, rent, interest, and profits are determined here.
It supports the production process.
Examples include labor markets and capital markets.

20. Define perfect Competition?

Perfect competition is a market structure with many buyers and sellers, identical products,
and free entry.
No single buyer or seller can influence price.
Firms are price takers.
Resources are allocated efficiently in such markets.
It is an ideal, rarely found in the real world.

21. Define Market Structure

Market structure refers to the characteristics of a market that affect competition and pricing.
It includes the number of firms, product nature, and entry barriers.
Types include perfect competition, monopoly, monopolistic competition, and oligopoly.
It determines firm behavior and efficiency.
Understanding it helps in policy and strategy planning.

22. What is monopsony?

A monopsony is a market with only one buyer and many sellers.
The buyer has significant control over price.
It is the reverse of a monopoly.
Examples include defense contracts or government employment.
It may lead to lower prices for sellers.

23. What is product differentiation?

Product differentiation is the process of making a product distinct from competitors’.
It can be through quality, design, branding, or features.
It helps in attracting specific customer segments.
Firms use it for competitive advantage.
It is common in monopolistic competition.

24. Define Oligopoly

Oligopoly is a market structure dominated by a few large firms.
Firms may collude or compete aggressively.
Products may be identical or differentiated.
Barriers to entry are high.
Examples include the automobile and telecom industries.

25. What is price rigidity?

Price rigidity means prices remain stable even when demand or supply changes.
It often occurs in oligopoly markets.
Firms avoid changing prices to prevent price wars.
It leads to non-price competition.
Kinked demand curve theory explains this behavior.

26. List any 2 models of duopoly

1. Cournot Model – Firms decide output quantities independently.
2. Bertrand Model – Firms compete by setting prices.

27. Define Market Efficiency?

Market efficiency occurs when prices fully reflect all available information.
It ensures that resources are allocated optimally.
Efficient markets adjust quickly to new data.
No one can consistently outperform the market.
It is the basis of the Efficient Market Hypothesis.
28. What is producer surplus?
Producer surplus is the difference between what producers are paid and the minimum
amount they’re willing to accept.
It measures producer benefit from selling at market price.
It is the area above the supply curve and below the price line.
Higher prices increase producer surplus.
It indicates profitability.

29. What is trade balance?

Trade balance is the difference between a country’s exports and imports.
A positive balance is a trade surplus; negative is a trade deficit.
It affects currency value and economic policy.
It is part of the balance of payments.
Trade balance reflects economic health.

30. Define Gross Domestic Product?

GDP is the total market value of all final goods and services produced within a country in a
specific time.
It measures a nation's economic performance.
Higher GDP indicates economic growth.
It includes consumption, investment, government spending, and net exports.
It is a key macroeconomic indicator.

31. Define National Income

National income is the total income earned by a country's residents for contributing to
production.
It includes wages, rent, interest, and profits.
It reflects the economic performance of a country.
Used to assess standard of living.
It is calculated annually.

32. What are the methods of measuring national income?

1. Income Method – Adds all factor incomes.
2. Expenditure Method – Adds all spending on final goods.
3. Production Method – Adds value of all goods/services produced.
33. What is meant by aggregate Income?
Aggregate income is the total income earned by all individuals and entities in an economy.
It includes wages, rents, interests, and profits.
It helps assess overall economic activity.
Used in national income accounting.
It reflects the purchasing power in the economy.

34. What is consumption?

Consumption is the use of goods and services by households.
It forms a major part of GDP.
Consumption can be durable or non-durable.
It depends on income, prices, and preferences.
It drives demand in the economy.

35. List the types of Multipliers

1. Investment Multiplier
2. Government Expenditure Multiplier
3. Tax Multiplier
4. Employment Multiplier
5. Export Multiplier

36. Define Business Cycle?

The business cycle is the fluctuation of economic activity over time.
It has four phases: expansion, peak, contraction, and trough.
It affects employment, income, and production.
Caused by demand and supply shocks.
Governments use fiscal and monetary policies to manage it.

37. What is recession?

Recession is a period of declining economic activity lasting for at least two quarters.
It leads to reduced GDP, employment, and spending.
Businesses face lower profits and investment.
Consumer confidence drops.
Governments often respond with stimulus measures.
38. Define Unemployment
Unemployment is when people are willing to work at current wages but cannot find jobs.
It reflects underutilized labor resources.
Types include structural, frictional, and cyclical.
High unemployment affects economic growth.
It is measured by the unemployment rate.

39. State Okun’s law

Okun’s law shows a relationship between GDP and unemployment.
A 1% rise in unemployment results in a 2% fall in GDP.
It emphasizes the cost of unemployment.
Used in macroeconomic planning.
It helps forecast economic downturns.

40. Define Inflation

Inflation is the sustained rise in the general price level of goods and services.
It reduces purchasing power.
Moderate inflation encourages spending; high inflation can harm the economy.
Measured by indices like CPI and WPI.
Central banks control it through monetary policy.

41. What is cost-push inflation?

Cost-push inflation arises when production costs increase.
Higher wages or raw material costs cause prices to rise.
Firms pass the cost to consumers.
It reduces supply and increases prices.
It can lead to stagflation.

42. What is Philip curve?

The Phillips Curve shows an inverse relationship between inflation and unemployment.
When unemployment is low, inflation tends to be high, and vice versa.
It guides monetary policy.
In the long run, the relationship may not hold.
Stagflation challenged its validity.

43. What is stagflation?

Stagflation is a situation with high inflation, high unemployment, and stagnant growth.
It contradicts the Phillips Curve.
It makes policy responses difficult.
Occurred notably in the 1970s.
It requires both supply-side and demand-side solutions.

44. What is liquidity?

Liquidity is how easily assets can be converted into cash.
Cash is the most liquid asset.
Higher liquidity means faster access to funds.
It is essential for business and personal finance.
Liquidity management helps avoid financial stress.

45. What is supply of money?

Money supply is the total amount of money available in an economy.
Includes currency, demand deposits, and other liquid instruments.
Controlled by the central bank.
Affects inflation and interest rates.
Measured using M1, M2, etc.

46. What is demand for money?

Demand for money is the desire to hold cash instead of other assets.
Reasons include transactions, precaution, and speculation.
It varies with income and interest rates.
Key to monetary policy.
Higher interest rates reduce money demand.

47. What is treasury bill?

A treasury bill is a short-term government security with maturity under one year.
Issued at a discount and redeemed at face value.
Used to manage short-term funding needs.
Safe and liquid investment option.
Popular among banks and financial institutions.

48. What is CRR?

CRR (Cash Reserve Ratio) is the percentage of deposits banks must keep with the central
bank.
It controls money supply and liquidity in the economy.
A higher CRR reduces lending capacity.
It is a monetary policy tool.
Maintained by the Reserve Bank of India.

Entrepreneur Development
1. List out the three roles played by entrepreneurs
Entrepreneurs act as innovators, bringing new ideas and technologies to market. They are
also risk-bearers, taking financial and personal risks in uncertain environments. Additionally,
they serve as organizers, coordinating resources like land, labor, and capital to run a
successful business.
2. What are the approaches to entrepreneurs?
Approaches to entrepreneurship include the Economic approach focusing on profits and
market gaps, the Psychological approach analyzing traits like creativity and risk-taking, and
the Sociological approach emphasizing cultural and social influences. The Integrated
approach combines all these elements for a comprehensive understanding.
3. What are the changes in liberalization economy?
Liberalization led to reduced government control, increased foreign investment, and open
markets. It promoted private sector growth, reduced tariffs, and encouraged competition.
These changes enabled faster economic growth and expanded opportunities for
entrepreneurs.
4. What are the entrepreneurial initiatives in India?
Initiatives like Start-up India, Make in India, Stand-up India, and Atmanirbhar Bharat aim to
foster innovation, manufacturing, and self-reliance. They provide funding support, ease of
doing business, training programs, and infrastructure for start-ups and MSMEs.
5. What is meant by personality?
Personality is the set of emotional, behavioral, and mental traits that define an individual. It
affects how a person interacts, makes decisions, and handles challenges. In business,
personality influences leadership style, communication, and management effectiveness.
6. How does dynamic market affect business?
Dynamic markets create constant changes in consumer demand, competition, and
technology. Businesses must adapt quickly to survive. Entrepreneurs need to be innovative,
flexible, and proactive to stay relevant and competitive in such environments.
7. What are the importance of entrepreneurial skills?
Entrepreneurial skills help in identifying business opportunities, managing resources, solving
problems, and making strategic decisions. Skills like leadership, communication, and time
management are vital for business success and sustainability.
8. What are the components of Entrepreneurial process?
The process involves idea generation, opportunity analysis, resource gathering, business
plan development, and launching the venture. It also includes managing operations,
assessing risk, and scaling the business over time.
9. How does cultural factors affect business?
Culture affects consumer behavior, employee relationships, and business ethics. Differences
in customs, language, and social norms impact marketing strategies, leadership approaches,
and negotiation styles. Understanding culture is key to global business success.
10. How can one build a long-term vision for a family business?
A long-term vision requires strategic planning, innovation, and clear succession policies.
Involving the next generation, maintaining core family values, and introducing professional
management ensures business continuity and growth.
11. List out the objectives of entrepreneurial training
Entrepreneurial training aims to enhance skills, develop business knowledge, boost
confidence, create awareness about opportunities, and improve decision-making. It
prepares individuals to launch and manage successful enterprises.
12. Define Training
Training is the systematic development of knowledge, skills, and attitudes required to
perform specific tasks efficiently. In entrepreneurship, it helps improve capabilities to start,
operate, and grow a business.
13. Discuss the important function of SSIDC
SSIDC (State Small Industries Development Corporation) provides infrastructure, raw
materials, and marketing support. It helps small industries with finance, training, and
promoting products through exhibitions and fairs.
14. What is the main objective of industrial policy of central government
The main objective is to promote balanced industrial growth, attract investment, generate
employment, and enhance global competitiveness. It aims to boost manufacturing and
support MSMEs.
15. What are the mega projects?
Mega projects are large-scale investments typically exceeding ₹1,000 crore. They often
involve infrastructure, energy, transport, or industrial development and have significant
economic and social impact.
16. Who reads the business plan?
Business plans are read by investors, lenders, potential partners, and internal management.
They use it to assess feasibility, understand goals, and make funding or collaboration
decisions.
17. What is product selection?
Product selection involves choosing a product to manufacture or sell based on market
demand, resource availability, profitability, and company capability. It’s a key step in starting
a business.
18. What are the criteria for new product development?
Criteria include market need, technical feasibility, cost-effectiveness, profitability, innovation,
and alignment with company goals. Products must meet customer expectations and stand
out in the market.
19. How many minimum members are required to form partnerships firm?
A minimum of two members is required to form a partnership firm. The maximum is usually
20, except in banking where it is limited to 10.
20. What is capital budgeting?
Capital budgeting is the process of evaluating and selecting long-term investments. It
involves assessing costs, risks, and expected returns to make informed decisions on assets
like machinery or infrastructure.
21. What do you mean by matching entrepreneur with project?
This means aligning the entrepreneur’s skills, interests, and resources with the nature and
demands of a project. A good match increases the chances of success and sustainability.
22. How do you write a feasibility report?
A feasibility report includes market analysis, technical requirements, financial projections,
legal considerations, and risk analysis. It evaluates if a project is viable and worth pursuing.
23. State long term and short-term financing sources
Long-term sources include equity, term loans, debentures, and retained earnings. Short-
term sources include trade credit, bank overdrafts, and working capital loans for immediate
operational needs.
24. What is an operational plan?
An operational plan outlines daily business activities, resource allocation, timelines, and
performance metrics. It helps implement strategic goals through clear procedures and tasks.
25. What is meant by market?
A market is a place or platform where buyers and sellers interact to exchange goods and
services. It can be physical or digital and is essential for business transactions.
26. What is meant by corporate strategies?
Corporate strategies are long-term plans that define a company’s direction, growth, and
competitive positioning. They guide decision-making across all business units.
27. What is functional strategies?
Functional strategies are short-term plans developed by departments like marketing,
finance, and operations. They support the overall corporate strategy by focusing on specific
tasks and goals.
28. What is meant by product launching?
Product launching is the process of introducing a new product to the market. It involves
marketing, distribution, pricing strategies, and promotional events to create awareness and
attract customers.
29. SINE nurtured several ventures. Name any two
Two ventures nurtured by SINE (IIT Bombay) are IdeaForge, known for drones, and
Nanosniff, which develops chemical sensing devices.
30. Which incubator is tied up with DST?
SINE (Society for Innovation and Entrepreneurship), IIT Bombay, is an incubator supported
by DST (Department of Science and Technology), Government of India.
31. What is venture capital entrepreneurship?
It involves starting a business with financial support from venture capitalists who invest in
high-risk, high-return ventures. This helps in scaling innovative startups rapidly.
32. List out the challenges of start up
Startups face challenges like limited funding, market competition, regulatory hurdles, finding
skilled talent, and scalability. Adapting to customer needs and sustaining operations is also
difficult.
33. What is the purpose of control?
Control ensures that business activities align with set goals. It involves monitoring
performance, identifying deviations, and taking corrective actions to improve efficiency.
34. State the need for project evaluation
Project evaluation is necessary to assess feasibility, risks, and profitability before
implementation. It helps in making informed investment decisions and optimizing resources.
35. Distinguish between internal and external causes of sickness
Internal causes include poor management, lack of planning, and low productivity. External
causes include market recession, policy changes, and supply chain disruptions.
36. List the role of NCLT
NCLT (National Company Law Tribunal) handles insolvency cases, merger approvals,
company disputes, and restructuring. It ensures legal resolution of financial and corporate
issues.
37. What are the common diversification strategies?
Strategies include Horizontal (same level products), Vertical (supply chain integration),
Conglomerate (unrelated business), and Concentric (related to core business).
38. List some of the initiatives of WTO to aid small businesses
WTO promotes global trade access, simplifies trade procedures, supports e-commerce for
MSMEs, and provides technical assistance to build capacity in small businesses.
39. What is E-commerce?
E-commerce is the buying and selling of goods or services through electronic platforms. It
includes online shopping, digital payments, and online marketplaces like Amazon or Flipkart.

Legal Aspects on Business

1. Who is an agent?
An agent is a person who is authorized to act on behalf of another person, known as the
principal, in business dealings. The agent creates a legal relationship between the principal
and third parties. Agents may be appointed through a contract, express agreement, or by
conduct. They carry out tasks as per the instructions of the principal. The agent must act in
good faith and within the scope of their authority.

2. Define agency
Agency is a legal relationship where one person, the agent, is authorized to act on behalf of
another person, the principal. This relationship enables the agent to create legal obligations
for the principal with third parties. It is based on trust and involves the principal's consent.
The contract of agency may be express or implied. It plays a key role in business
transactions.

3. What is the third party?

A third party is a person who is not a principal or agent but interacts with them in a legal
transaction. In agency relationships, the agent deals with the third party on behalf of the
principal. The third party relies on the agent's authority. The rights and obligations created
are usually between the principal and the third party. The third party must act in good faith.

4. Who is principal?
A principal is a person who authorizes another, called the agent, to act on their behalf. The
principal is bound by the acts of the agent done within the scope of authority. The principal
must act in good faith and compensate the agent for lawful acts. They are legally responsible
for contracts made by the agent. The principal must also reimburse the agent for expenses.

5. What is contract of agency?

A contract of agency is an agreement where one person (agent) is empowered to act on
behalf of another (principal). This contract may be express, implied, or even arise by
necessity or ratification. It allows the agent to perform legal acts that bind the principal. The
contract defines the duties, rights, and authority of the agent. It is governed by the Indian
Contract Act, 1872.

6. What are the modes of creating contract of agency? Name them.

The contract of agency can be created in several ways:
1. Express Agreement
2. Implied Agreement
3. Agency by Estoppel
4. Agency by Holding Out
5. Agency by Necessity
6. Agency by Ratification
Each mode reflects the way the relationship between agent and principal is
established.

7. Define Special agent

A special agent is appointed for a specific task or a limited transaction. Once the task is
completed, the agency ends. They cannot bind the principal beyond the particular work
assigned. Their authority is restricted and specific. Any act done beyond authority is not
binding on the principal. Courts do not extend their power beyond the assignment.

8. Who is general Agent?

A general agent is one who is authorized to carry out all transactions related to a specific
business or employment. They act regularly on behalf of the principal within a defined
scope. Their authority is broader than that of a special agent. They bind the principal by all
lawful acts done in the ordinary course of business. Examples include managers or sales
agents.

9. Define agent’s authority

Agent’s authority is the legal power given to an agent by the principal to act on their behalf.
It can be express or implied. Express authority is clearly stated in words or writing, while
implied authority arises from the position or conduct. The agent must act within the scope
of authority to bind the principal. Any act beyond authority may not be valid.

10. What is meant by repudiation of contract?

Repudiation of contract occurs when one party refuses to perform their part of the
agreement. It may be expressed through words or actions. This gives the other party the
right to terminate the contract and claim damages. In agency, if an agent or principal refuses
to honor obligations, it may lead to repudiation. It indicates a breach of contract.

11. When is an agent personally liable?

An agent is personally liable in certain cases, such as:
1. Acting without authority.
2. Concealing the principal’s identity.
3. Acting for a foreign or incompetent principal.
4. If the agent agrees to personal liability.
5. When the principal is not disclosed.
In such cases, the third party can sue the agent directly.

12. Explain the duties of principal

The principal has several duties towards the agent:
1. To pay agreed commission or remuneration.
 2. To reimburse the agent for lawful expenses.
3. To indemnify the agent for lawful acts done in good faith.
4. Not to prevent the agent from performing duties.
5. To act in good faith and disclose relevant information.
Failure to fulfill these duties may result in liability.

13. Explain the duty of agent to render proper accounts

An agent must keep proper records of all transactions made on behalf of the principal. They
should maintain accurate accounts and submit them when requested. The accounts must
include details of expenses, revenues, and actions taken. This ensures transparency and
trust. If the agent fails to render accounts, they may be held liable. It is a core fiduciary duty.

14. Define agent’s torts

Agent’s torts are wrongful acts committed by an agent during the course of employment. If
done within the scope of authority, the principal may be held liable under vicarious liability.
Examples include fraud, negligence, or defamation. However, if the tort is committed outside
the scope, the agent is personally liable. Tort law ensures protection for third parties.

15. What is right of indemnification?

The right of indemnification allows an agent to claim compensation for losses incurred while
acting lawfully on behalf of the principal. If the agent suffers a loss in executing assigned
duties, the principal must indemnify. This right is valid only for legal and authorized acts. It
ensures the agent is protected from personal loss while representing the principal.

16. Explain the duty of agent to render proper accounts

The agent is obligated to keep clear and complete records of all business conducted for the
principal. This includes income, expenditures, and other relevant transactions. The accounts
must be presented on request or at agreed intervals. This duty helps in assessing the agent’s
performance and trustworthiness. It supports accountability in the agency relationship.

17. Define agent’s Trots

This seems to be a repetition or typo of “agent’s torts.” Agent’s torts refer to wrongful acts
committed by the agent in the course of business. If such acts are within the scope of
authority, the principal may also be liable. Common examples are fraud, negligence, or
misrepresentation. Responsibility depends on the nature and scope of the act.
18. What is termination of agency by agreement
Termination of agency by agreement occurs when both the principal and agent mutually
decide to end the agency relationship. It can be done at any time by mutual consent. The
termination must be communicated clearly. This method is peaceful and avoids disputes. It
ends the legal authority of the agent to act on behalf of the principal.

19. When does termination of agency take effect?

Termination of agency takes effect when the agent receives notice of termination or
becomes aware of it. For third parties, it becomes effective when they are informed. If not
properly communicated, the principal may still be liable for the agent’s actions. Timely
notice is essential to avoid legal complications and maintain clarity.

20. What is termination by operation of law?

Termination by operation of law occurs automatically due to certain legal events. These
include death, insanity, insolvency of principal or agent, or destruction of subject matter. No
notice is required in such cases. The agency relationship ends without mutual consent. It
ensures legal consistency and protection in unforeseen situations.
21. Define Company
A company is an artificial legal person created by law, having a separate legal identity,
perpetual succession, and limited liability. It can own property, sue and be sued in its own
name. It is formed by registering under the Companies Act. A company is managed by
directors and operates through its officers. It acts independently of its members.

22. What is common Seal?

A common seal is the official signature of a company used for endorsing documents. It
represents the company’s approval and authorization of agreements. It must be affixed in
the presence of authorized officers. Though now optional under the Companies Act, it was
traditionally required for executing contracts. It symbolizes the company’s identity in official
matters.

23. What is limited Liability?

Limited liability means that a member’s financial responsibility is restricted to the amount
unpaid on their shares. They are not personally liable for the company's debts. This feature
protects personal assets of shareholders. It encourages investment by reducing financial risk.
It is a key characteristic of companies limited by shares or guarantee.

24. What is perpetual succession?

Perpetual succession means the company continues to exist even if its members or directors
change or die. Its legal existence is not affected by personal changes. The company remains
a separate legal entity unless legally dissolved. This ensures stability and continuous
operation. It is a fundamental feature of corporate structure.

25. Define Chartered Company

A Chartered Company is formed under a royal charter granted by the monarch. It operates
based on the terms defined in the charter. These companies were common in England for
colonial and trading purposes. They had special rights and privileges. Examples include the
East India Company. Such companies are rare today.

26. What is statutory companies?

Statutory companies are established by a special Act of Parliament or state legislature. Their
powers and functions are defined in the statute itself. They are created to serve public
interests, like finance, transport, or utilities. Examples include RBI and LIC. They are
governed by their respective statutes, not the Companies Act.

27. Describe company limited by guarantee

A company limited by guarantee does not have share capital. Instead, members agree to
contribute a specified amount in case of winding up. It is common in non-profit
organizations like clubs, charities, and educational institutions. Members’ liability is limited
to the guaranteed amount. It aims to serve public causes rather than profit.

28. What do you understand by unlimited companies?

An unlimited company is one where members have unlimited liability. If the company is
unable to pay debts, members are personally liable for its obligations. There is no limit on
their financial responsibility. Such companies are rare due to high risk. They may exist in
professional or specialized sectors.

29. Name the type of companies on the basis of number of members

On the basis of number of members, companies are:
1. Private Company – Minimum 2, Maximum 200 members
2. Public Company – Minimum 7, No maximum limit
3. One Person Company (OPC) – Only 1 member
These categories determine legal structure and compliance requirements.
30. Define subsidiary company
A subsidiary company is one that is controlled by another company, known as the holding
company. The holding company owns more than 50% of its share capital or controls its
board of directors. The subsidiary may operate independently but remains under the parent
company’s control. It may exist domestically or internationally.

31. What are foreign Companies?

Foreign companies are those incorporated outside India but operating or having business
activities in India. They must register with the Registrar of Companies in India. Such
companies must comply with Indian legal requirements. Examples include MNCs with Indian
branches. They are governed by Section 2(42) of the Companies Act, 2013.

32. What is a multinational company?

A multinational company (MNC) operates in more than one country. It has its headquarters
in one country and branches or subsidiaries in other countries. MNCs have global operations
and large-scale business networks. Examples include Google, Microsoft, and Nestlé. They
influence international trade and investment.

33. Define company limited by shares

A company limited by shares is one where members' liability is limited to the unpaid amount
on their shares. It can raise capital by issuing shares to the public or privately. This is the
most common form of company. It ensures limited risk for investors. It can be either public
or private.

34. Define Indian Company

An Indian company is one registered under the Companies Act in India. It is formed and
incorporated within India and operates under Indian laws. It may be private, public, or
government-owned. It has a separate legal entity and must comply with Indian tax and
regulatory norms. It may have Indian or foreign shareholders.

35. What is the subject matter of Articles of Association?

The Articles of Association (AOA) define the internal rules and regulations of a company. It
covers the powers, rights, duties, and responsibilities of directors and members. It includes
rules for meetings, share transfer, dividend distribution, and company management. The
AOA must align with the Memorandum of Association and Companies Act.

36. Define Prospectus

A prospectus is a formal legal document issued by a company to invite the public to
subscribe to its shares or debentures. It contains details like financials, business operations,
and risks. It helps investors make informed decisions. Issuing a false prospectus can lead to
legal penalties. It is required for public companies.

37. Who are directors?

Directors are individuals appointed to manage the affairs of a company. They form the Board
of Directors and act as agents and trustees of the company. They make strategic decisions
and ensure legal compliance. Directors have fiduciary duties toward the company and
shareholders. They are responsible for corporate governance.

38. What is the statement in lieu of prospectus?

A statement in lieu of prospectus is filed by a public company that does not issue a
prospectus. It must be submitted before the company allots shares. It contains similar
information as a prospectus. It ensures transparency and legal compliance. It is governed by
Section 70 of the Companies Act, 2013.

39. Name the statutory duties of directors.

Statutory duties of directors include:
1. Duty to act in good faith
2. Duty to avoid conflict of interest
3. Duty to disclose interest in contracts
4. Duty to not make secret profits
5. Duty to attend meetings
6. Duty to comply with the Companies Act
These duties promote ethical and legal functioning.

40. Explain the duty of directors as caretakers

Directors are caretakers of the company’s assets and operations. They must act in the best
interest of the company and its stakeholders. They should manage resources wisely, prevent
misuse, and ensure compliance with laws. As trustees, they must avoid negligence and
fraud. Their role is crucial for sustainable growth and trust.

41. What is the object of the Factories Act?

The main objective of the Factories Act is to regulate the working conditions in factories,
ensuring the health, safety, welfare, and rights of workers. It aims to prevent exploitation,
limit working hours, and provide safe and hygienic working conditions. The Act also governs
issues like overtime, wages, and child labor, promoting worker welfare and enhancing
productivity.

42. Discuss the scope and applicability of the Act

The Factories Act applies to any manufacturing process that involves 10 or more workers in a
factory. It applies to both private and public sector establishments engaged in manufacturing
goods, construction, and related activities. The Act covers aspects like working conditions,
health and safety measures, the welfare of workers, and employment standards. It also
applies to establishments operating in specific hazardous environments.

43. Explain the essentials of the term "Factory"

A factory is defined as a premises where 10 or more workers are employed for
manufacturing goods with the help of power or 20 or more workers without power. The
manufacturing process involves labor and machinery to produce goods for sale. The term
factory includes premises used for repairing or treating articles or materials, and it must
meet the minimum requirements specified under the Factories Act.

44. What do you mean by premises and precincts?

Premises refers to the physical site or building used for the purpose of manufacturing or
related activities under the Factories Act. Precincts refer to the surrounding areas of the
factory, such as gardens, yards, or open spaces, which are directly connected with the
operation of the factory. Both premises and precincts must comply with health and safety
standards outlined in the Act.

45. Which of the following are the manufacturing processes?

1. Bedi Making: Manufacturing process
2. Sea water into Salt: Manufacturing process
3. Raw Films into Finished Product: Manufacturing process
All of the above are considered manufacturing processes, as they involve converting
raw materials into a finished product, which is a key requirement under the Factories
Act.

46. Who is entitled to bonus under the Payment of Bonus Act, 1965?
The Payment of Bonus Act, 1965 entitles employees who have worked for at least 30 days in
a year in an establishment covered by the Act to receive a bonus. The employee must earn a
salary of up to ₹21,000 per month. Both permanent and temporary workers are eligible,
provided they meet the specified criteria regarding salary and working days.
47. Define 'Available Surplus' under Payment of Bonus Act, 1965.
Available surplus refers to the profit that remains after deducting certain amounts from the
gross profit of a company. These deductions include direct taxes, development and
depreciation reserves, and previous year's losses. The remaining amount is available for
distribution as bonus to employees under the Payment of Bonus Act.

48. Explain the meaning of 'Accounting year' under the Payment of Bonus Act, 1965.
Under the Payment of Bonus Act, 1965, the 'accounting year' refers to the financial year of
the company, which is the 12-month period used for calculating the company's profit and
loss. It typically begins on April 1 and ends on March 31 of the following year. The
accounting year is important for determining the bonus eligibility of employees.

49. Explain the meaning of 'Allocable Surplus' stated in the Payment of Bonus Act, 1965.
Allocable surplus refers to the portion of the available surplus that is earmarked for
distribution as a bonus to employees. It is calculated by deducting a certain percentage of
available surplus for the company’s reserves and other expenses. The remaining surplus is
allocated as bonus to eligible employees based on the formula prescribed in the Act.

50. Specify the kinds of establishments which are not covered under the Payment of
Bonus Act, 1965.
The Payment of Bonus Act, 1965 does not apply to the following types of establishments:
1. Seasonal establishments
2. Establishments with fewer than 20 employees
3. Workers earning more than ₹21,000 per month
4. Certain government organizations and public sector units
These exceptions are specified in the Act to cover only the eligible and majority of
private sector companies.

51. Can the Payment of Bonus Act be made applicable to an establishment in the public
sector?
Yes, the Payment of Bonus Act can be made applicable to establishments in the public sector
if the government issues a notification for it. However, the bonus formula and criteria may
differ based on public sector regulations. Public sector employees are generally governed by
specific rules that apply to them.
52. What is direct tax?
A direct tax is a tax that is levied directly on an individual or organization's income or wealth.
The burden of the tax cannot be shifted to another party. Examples include income tax,
corporate tax, and wealth tax. Direct taxes are paid directly to the government by the
taxpayer and are progressive in nature.

53. Discuss the rights of employees under the Payment of Bonus Act.
Employees have the right to receive a bonus if they have worked for at least 30 days during
the accounting year. The amount is based on their wages and the company's available
surplus. Employees are also entitled to a minimum bonus of 8.33% of their salary if the
company has no profits. They have a legal right to challenge non-payment or underpayment
of bonus.

54. What do you mean by establishment in the private sector?

An establishment in the private sector refers to any business or organization that is privately
owned and managed. These establishments are not government-controlled and operate for
profit. Private sector businesses include manufacturing units, service providers, and other
commercial enterprises. The Payment of Bonus Act, 1965 applies to many such
establishments.

55. What is the applicability of the Payment of Bonus Act?

The Payment of Bonus Act, 1965 applies to every factory, company, and establishment
where 20 or more employees are employed. It covers industries, service sectors, and other
establishments in the private sector, provided employees are earning wages below a certain
threshold. The Act mandates bonus payments based on available surplus and profits.

56. Discuss the offences and penalties of the inspectors.

Inspectors under the Payment of Bonus Act are authorized to ensure compliance with the
Act. They can inspect records, wages, and bonus payments. If they find non-compliance,
they can issue notices, levy fines, or take legal action. Penalties for non-payment or
underpayment of bonuses can include fines or imprisonment. The penalty aims to enforce
fair practices.

57. How will you set-on allocable profits in case of huge profits?
In the case of huge profits, the company may be required to "set on" or carry forward the
allocable surplus to the next accounting year. This allows the company to accumulate a
larger pool for bonus payments in the future. Setting on ensures that employees will receive
their fair share even in cases where profits fluctuate over time.
58. How will you compute available surplus under Section 5?
To compute available surplus under Section 5, you begin with the gross profit of the
company. Then, you deduct certain expenses like direct taxes, reserves, and previous year’s
losses. The remaining amount, after these deductions, is considered the available surplus.
This is the profit that can be allocated for distribution to employees as bonuses.

59. Define workman under the Industrial Disputes Act

A workman under the Industrial Disputes Act refers to any person employed to do manual,
unskilled, skilled, or clerical work in an industry, including those engaged in supervisory or
managerial roles. However, the term does not include employees in positions like managers
or supervisors who have the authority to hire or fire employees. Workmen are entitled to
rights under the Act regarding disputes, wages, and conditions.

60. What is meant by stoppage of work?

Stoppage of work refers to the cessation of normal operations in an industry or
establishment due to industrial disputes, like strikes, lockouts, or other disruptions. It may
occur temporarily or permanently and can affect productivity. A stoppage of work is usually
a result of unresolved conflicts between employees and employers, and it often leads to a
legal process for resolution.

61. Discuss the objectives of the Industrial Disputes Act

The objectives of the Industrial Disputes Act, 1947 are to promote harmony and industrial
peace by providing a legal framework for the settlement of disputes between employers and
employees. It aims to prevent industrial unrest, protect workers' rights, regulate layoffs,
retrenchments, and closures, and ensure the fair treatment of employees in industries. The
Act also promotes the establishment of labor courts and tribunals for resolving disputes.

62. What is conciliation?

Conciliation is a method of resolving industrial disputes by involving a neutral third party,
known as a conciliator, who helps the parties (employers and employees) reach a mutually
acceptable settlement. It is a non-binding process aimed at improving communication and
understanding between the parties. Conciliation is often the first step before more formal
proceedings like arbitration or adjudication.

63. What is the meaning of premises and precinct?

Premises refers to the physical building or structure where business or manufacturing
activities are conducted, such as a factory or office. Precincts refer to the surrounding areas
or boundaries of the premises, which may include the factory yard, gardens, and any spaces
directly related to the operation of the business. Both are relevant for legal compliance
under the Factories Act.

64. Define manufacturing process

A manufacturing process involves transforming raw materials or components into finished
goods through mechanical, physical, or chemical methods. This process typically involves the
use of machinery, labor, and technology. It can include steps such as assembly, fabrication,
and quality control, and is central to industries like textiles, automotive, and electronics.

65. How will you define a worker under the Factories Act, 1948?
Under the Factories Act, 1948, a worker is defined as any person employed in a factory to
carry out manual, skilled, semi-skilled, unskilled, clerical, or supervisory work. A worker is
also someone who is involved in the manufacturing process or handling machinery, and is
employed on a regular or temporary basis within the factory premises.

66. Who is called an occupier?

An occupier is the person who has control over the factory's premises and is responsible for
its operation. The occupier is typically the owner of the factory or the person designated to
manage it. They are responsible for ensuring that the factory complies with legal and safety
regulations under the Factories Act. In case of joint ownership, all owners are considered
occupiers.

67. What is the provision made under the Factories Act regarding dangerous parts of any
machinery?
The Factories Act mandates that dangerous parts of machinery should be securely fenced or
guarded to prevent workers from accidental injury. It requires that any hazardous moving
parts be effectively enclosed or isolated, and appropriate warnings and safeguards be put in
place. Regular maintenance and inspections of such machinery are required to ensure
worker safety.

68. Discuss the provision regarding compensatory holidays for employees under the
Factories Act
The Factories Act provides that workers who are required to work on their weekly day of rest
(usually Sunday) must be granted compensatory holidays. These holidays should be provided
within the same calendar month or within two months, depending on the agreement
between the employer and the employee. The provision ensures that workers are not
deprived of their rest and leisure time.
69. Comment on the provision for the prohibition of employment of children and
adolescents
The Factories Act prohibits the employment of children below the age of 14 in factories to
protect their health, education, and well-being. It also restricts the employment of
adolescents (between 14 and 18 years) by limiting their working hours and ensuring their
safety. These provisions aim to prevent child labor and safeguard young workers from
exploitation.

70. Define industrial establishment

An industrial establishment refers to any organization, factory, or business unit engaged in
manufacturing, processing, or servicing goods. It is typically a workplace where employees
are involved in industrial work, such as factories, mills, and workshops. Industrial
establishments must comply with relevant labor laws, including the Industrial Disputes Act
and the Factories Act.

71. Define consumer

A consumer is an individual who purchases goods or services for personal use and not for
resale or commercial purposes. Consumers are entitled to the right to access safe and
quality products and services, as well as to seek redressal in case of grievances. The
consumer protection laws aim to safeguard their rights and interests in the marketplace.

72. What is right to safety?

The right to safety ensures that consumers are protected from the risk of injury or harm
caused by unsafe or defective products and services. It guarantees that products meet safety
standards and are tested for potential hazards before being sold in the market. Consumers
can demand compensation for damages if their safety is compromised.

73. Define right to be informed

The right to be informed ensures that consumers receive adequate and accurate information
about the products or services they purchase. This includes details such as ingredients,
usage instructions, pricing, and potential risks. This right empowers consumers to make
informed decisions and protects them from deceptive or misleading advertising.

74. Discuss right to choose

The right to choose gives consumers the freedom to select from a variety of products and
services at competitive prices. It prevents monopolies or unfair practices that limit consumer
options. This right promotes a healthy marketplace where consumers have access to
different brands, features, and prices, allowing them to make choices that best suit their
needs.

75. What is right to be heard?

The right to be heard ensures that consumers have the opportunity to express their
grievances, concerns, or feedback regarding products or services. It also guarantees that
consumers can participate in forums or discussions that influence consumer policies and
decisions. This right is crucial for strengthening consumer protection mechanisms.

76. What is right to seek redressal?

The right to seek redressal allows consumers to claim compensation or remedy for any harm
or dissatisfaction caused by defective goods or services. Consumers can file complaints or
seek legal action if their rights are violated. This right is supported by consumer courts and
forums where consumers can seek justice.

77. Define consumer education

Consumer education involves the process of educating individuals and communities about
their rights and responsibilities as consumers. It aims to provide knowledge on how to make
informed decisions, recognize quality products, and understand consumer laws. Consumer
education helps individuals become aware of their legal protections and how to avoid
exploitation.

78. Define right to consumer education

The right to consumer education ensures that consumers are provided with adequate
information about their rights, products, and services. It empowers them to make informed
choices and protect themselves from fraud or exploitation. This right encourages
governments and organizations to provide educational programs that teach consumers
about their legal and financial rights.

79. What do you mean by consumer grievance redressal?

Consumer grievance redressal refers to the process of resolving complaints and issues faced
by consumers regarding defective products, services, or unfair practices. It involves a formal
mechanism through which consumers can file complaints and seek solutions. Consumer
forums, ombudsmen, and legal systems are part of this process, providing consumers with
the means to address grievances.
80. Prepare the diagram of integrated three-stage consumer complaint redressal
mechanism
I can help generate this diagram for you. Would you like me to create it?

81. What is district forum?

A district forum is a consumer dispute redressal forum at the district level. It is established
under the Consumer Protection Act to provide a platform for consumers to file complaints
about defective goods, services, or unfair trade practices. It is the first level of consumer
dispute resolution before escalating to higher courts.

82. What is the composition of district forum?

The district forum is typically composed of a president and two other members, who are
appointed by the state government. The president must be a retired judicial officer, while
the other members are usually experienced in consumer affairs and have knowledge of law,
economics, or other relevant fields.

83. Who heads the national commission?

The National Consumer Disputes Redressal Commission (NCDRC) is headed by a president,
who is typically a retired judge of the Supreme Court of India. The commission handles
appeals from state commissions and provides a final resolution on consumer disputes at the
national level.

84. Give the full form of IPR

The full form of IPR is Intellectual Property Rights. These rights protect the creations of the
mind, including inventions, literary and artistic works, designs, symbols, and names used in
commerce.

85. What is trademark?

A trademark is a distinctive symbol, word, phrase, logo, or other identifier that distinguishes
goods or services of one enterprise from those of others. Trademarks help consumers
identify the source of a product or service and prevent confusion. They are protected under
intellectual property law and can be registered to secure exclusive rights.
Communication Skills
1. Define Organizational Communication
Organizational communication refers to the process of exchanging information, ideas, and
messages within and outside an organization. It involves formal and informal communication
that helps in planning, decision-making, and coordination. It includes internal
communication among employees and external communication with stakeholders. Effective
communication ensures smooth workflow and goal achievement. It can be verbal, written,
or non-verbal.

2. What do you understand by the term system?

A system is a collection of interconnected parts working together to achieve a specific
purpose. In the context of communication, it means a structured method where information
flows logically. Each part of a system has a role, and they depend on each other. Systems can
be mechanical, biological, or organizational. Communication systems help in the smooth
transmission of messages.

3. Give at least 3 Examples of systems

1. The human body system – where organs work together to keep the body
functioning.
 2. A computer system – where hardware and software interact to perform tasks.
3. An educational system – where institutions, teachers, and students work together
for learning outcomes.

4. Why is clarity important in organizational communication?

Clarity helps ensure that the message is understood as intended without confusion. It
reduces chances of misinterpretation, errors, and delays in work. Clear communication saves
time and boosts productivity. It also enhances trust and transparency within teams. Clarity is
crucial for instructions, goals, and feedback to be effective.

5. Differentiate information and communication

Information is the data or content shared, such as facts or figures. Communication is the
process of transmitting that information between people. Information can exist without
communication, but communication always involves sharing information. Communication
requires a sender, message, medium, and receiver. Effective communication ensures the
information is understood.

6. Differentiate upward and downward communication

Upward communication flows from employees to management. It includes feedback,
suggestions, and concerns. Downward communication flows from management to
employees, involving instructions, policies, and decisions. Upward helps management
understand employee needs, while downward ensures directions are clearly given and
followed.

7. What are the consequences of poor external communication

Poor external communication can damage an organization's image and credibility. It may
lead to misunderstandings with customers, suppliers, or the public. Customer dissatisfaction
can increase, and sales may drop. Miscommunication can also cause legal issues or public
backlash. A strong external communication strategy is essential for brand trust.

8. Why is feedback important in communication?

Feedback ensures that the message was received and understood correctly. It helps the
sender know whether communication was effective. Feedback encourages dialogue and
improvement. In organizations, it boosts employee morale and enhances performance. It
also helps in identifying and correcting misunderstandings early.
9. What is the role of the receiver in the communication process?
The receiver decodes or interprets the message sent by the sender. The effectiveness of
communication depends on the receiver’s understanding and response. They provide
feedback, which completes the communication loop. The receiver’s perception, attention,
and clarity influence the outcome. Active listening is key to being a good receiver.

10. How does noise affect communication

Noise refers to anything that disturbs the message flow in communication. It can be physical
(background sound), psychological (stress), or semantic (language confusion). Noise distorts
the message, leading to misunderstandings. It reduces the effectiveness and clarity of
communication. Identifying and minimizing noise is essential for success.

11. Define Managerial communication

Managerial communication is the exchange of information between managers and their
teams. It involves planning, directing, controlling, and motivating through clear
communication. It includes meetings, emails, reports, and informal talks. Good managerial
communication promotes efficiency and team coordination. It also supports leadership and
decision-making.

12. How can effective communication create commitment among employees?

When communication is open and honest, employees feel respected and valued. It creates a
sense of trust and belonging. Clear goals and feedback align employees with the
organization's mission. Regular updates and recognition boost motivation. Effective
communication fosters loyalty and commitment to the organization.

13. Write short note on the PREP model

The PREP model is a structured way of expressing opinions and arguments. It stands for
Point, Reason, Example, and Point (restated). It helps in presenting thoughts clearly and
persuasively. For example, make a point, explain why, give an example, and repeat your
point for emphasis. It is useful in discussions and public speaking.

14. Give a few example of verbal communication in the workplace

 Team meetings where updates are shared.
 Phone calls with clients or coworkers.
 Presentations during project reviews.
 Interviews for hiring or evaluations.
  One-on-one discussions or negotiations.

15. Write few tips of effective email writing?

 Start with a clear subject line.
 Use professional tone and language.
 Be concise and to the point.
 Organize content with bullet points if needed.
 Always proofread before sending.
 Include a proper greeting and signature.

16. What are the problem chain pattern of communication?

In a chain communication pattern, information passes sequentially from one person to the
next. It resembles a relay system. It is useful for tasks that follow a strict sequence. However,
it can cause delays and distortion if one link fails. It is not ideal for quick decision-making or
feedback.

17. What are the objective of Bavelas Leavitt Experiment

The Bavelas-Leavitt experiment aimed to study how communication patterns affect group
performance. It tested different network structures like wheel, chain, and circle. The
objective was to understand task efficiency, leadership emergence, and satisfaction. It
showed centralized networks perform faster, while decentralized ones promote member
satisfaction.

18. What are the advantages of the wheel pattern of communication?

 It allows centralized decision-making.
 Ideal for tasks needing control and speed.
 The leader has access to all information.
 Reduces confusion in simple tasks.
However, it can burden the central person and reduce team involvement.

19. What effect does the communication pattern have on leadership?

Communication patterns determine how leadership develops and functions. Centralized
patterns (like wheel) enhance authority and control. Decentralized patterns (like all-channel)
promote participative leadership. The pattern influences decision-making, efficiency, and
team satisfaction. Good leaders adapt their style to the communication structure.

20. List 5 patterns of communication

1. Wheel Pattern – Centralized communication.
2. Chain Pattern – Sequential message flow.
3. Y Pattern – Partial centralization with branching.
4. Circle Pattern – Each member communicates with two others.
5. All-Channel Pattern – Free communication among all.

21. Define Semantic barrier

Semantic barriers occur due to misunderstandings of words, language, or symbols. It
happens when the sender and receiver interpret messages differently. Jargon, cultural
differences, and language proficiency cause these issues. These barriers lead to confusion
and poor communication outcomes.

22. What are filters? How do they affect communication?

Filters are mental or emotional biases that alter how we receive or send messages. They can
be based on beliefs, experiences, or emotions. Filters distort the original message, causing
misunderstanding. For example, a negative mindset may interpret neutral feedback as
criticism.

23. How can stereotypes and prejudices be overcome?

 Encourage cultural sensitivity and empathy.
 Offer training on diversity and inclusion.
 Promote open dialogue and collaboration.
 Challenge assumptions through awareness.
 Focus on individual behavior, not group labels.

24. Write a note on offering constructive feedbacks

Constructive feedback focuses on behavior, not the person. It should be specific, timely, and
balanced with positives. It aims to help the recipient grow and improve. It avoids blame and
encourages dialogue. Using "I" statements helps keep the tone respectful.
25. Can Psychological barrier cause communication breakdown? How?
Yes, psychological barriers like stress, fear, and anxiety affect message clarity and reception.
Emotional disturbances can distort how people express or understand messages. For
example, a stressed employee may misinterpret a neutral message as negative. Overcoming
these barriers requires empathy and support.

26. Define the social Comparison theory

The social comparison theory suggests people evaluate themselves by comparing with
others. It affects self-confidence, behavior, and communication. In organizations, it
influences job satisfaction and motivation. Constant comparison can lead to competitiveness
or low morale.

27. What is Perception?

Perception is the process of interpreting sensory input to form an understanding. It is
influenced by experience, culture, emotions, and beliefs. Perception shapes how messages
are understood and responded to. Each person perceives messages differently based on
their background.

28. How does self-Perception affect business communication?

A person’s self-perception affects how they express themselves and interact. Positive self-
perception leads to confidence and effective communication. Negative self-image may result
in hesitation, miscommunication, or poor presentation. Self-awareness is key in business
settings.

29. Give some examples of common business interpersonal communication occurrence

 Performance evaluations between manager and employee.
 Negotiations with clients or vendors.
 Brainstorming sessions with teams.
 Conflict resolution between coworkers.
 Informal conversations that build workplace relationships.

31. Define SWOT analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It is a strategic
planning tool used to evaluate internal and external factors affecting an individual or
business. Strengths and weaknesses are internal, while opportunities and threats are
external. It helps in identifying key focus areas and formulating strategies accordingly.

32. What is Johari window?

The Johari Window is a psychological tool used for self-awareness and improving
communication. It divides self-awareness into four quadrants: open, blind, hidden, and
unknown self. It helps individuals understand how they are perceived by others and
encourages open communication and feedback.

33. What does the blind self refer to in the Johari window?
The blind self represents aspects of an individual known to others but unknown to the
individual themselves. It includes habits, behaviors, or traits people notice but the individual
is unaware of. Reducing the blind area through feedback helps in personal and professional
development.

34. Why should one be aware of the weaknesses of one’s business or one’s self
Being aware of weaknesses helps in taking corrective actions before they become major
problems. It allows better planning, risk management, and personal growth. Recognizing
weaknesses can improve decision-making and foster a proactive approach to challenges.

35. How does SWOT Analysis help in Strategic Planning?

SWOT analysis helps identify core strengths to build on, weaknesses to improve,
opportunities to exploit, and threats to manage. It guides the formulation of strategies that
align with organizational goals. It also supports resource allocation and competitive
advantage.

36. Define Transactional analysis.

Transactional Analysis (TA) is a psychological theory and communication method developed
by Eric Berne. It analyzes interactions between individuals to understand behavior patterns.
TA focuses on ego states—Parent, Adult, and Child—to improve self-awareness and
communication.

37. What is meant by the PAC model?

The PAC model stands for Parent, Adult, and Child ego states. It is a part of Transactional
Analysis. The Parent reflects learned behavior, Adult is logical and rational, and Child
represents emotions and instincts. It helps understand and improve interactions.
38. List out the three states of Ego
1. Parent Ego State – Behaviors copied from parents or authority figures.
2. Adult Ego State – Logical and data-driven behavior.
3. Child Ego State – Emotional and impulsive responses from childhood experiences.

39. How can you keep the transaction complementary?

Transactions are complementary when the response matches the expected ego state. For
example, an Adult-to-Adult interaction is rational and clear. Avoiding cross or ulterior
transactions and understanding the other person’s state helps maintain healthy
communication.

40. List three benefits of transactional Analysis

1. Improves self-awareness and emotional intelligence.
2. Enhances interpersonal communication and relationships.
3. Helps resolve conflicts by understanding ego states and behavior.

41. What according to G W Porter, are the four broad categories of nonverbal
communication
G.W. Porter categorized nonverbal communication into:
1. Kinesics – Body movements.
2. Paralanguage – Voice tone and pitch.
3. Proxemics – Use of space.
4. Facial expressions and eye contact.

42. What are various uses of nonverbal communication?

Nonverbal communication supports verbal messages, conveys emotions, builds
relationships, regulates interactions, and expresses identity. It can also substitute or
contradict verbal communication. It enhances clarity and effectiveness of communication.

43. Expand the acronym SOFTEN in the context of body language.

S – Smile
O – Open posture
F – Forward lean
T – Tone of voice
E – Eye contact
N – Nod to show understanding

44. What are the various types of body language?

1. Facial expressions
2. Gestures
3. Posture
4. Eye contact
5. Touch (Haptics)
6. Gait (walking style)

45. Why is it that nonverbal communication is multifunctional in nature

Nonverbal communication performs multiple functions: complementing verbal messages,
replacing words, regulating conversations, and expressing feelings. It adds depth to
communication and helps convey messages when words are not enough.

46. Write a short note on personal appearance.

Personal appearance includes clothing, grooming, and physical presentation. It creates the
first impression and reflects professionalism, confidence, and attention to detail. In
communication, appearance affects how a message is received and interpreted.

47. Why is it important That your personal appearance should match your communicative
objective?
Matching appearance with the communication goal ensures credibility and consistency. For
example, dressing formally for a business meeting shows seriousness. It helps gain trust and
keeps the audience focused on the message.

48. What is the connection between one’s personal appearance and first impression?
First impressions are often based on appearance before a word is spoken. Personal
grooming, attire, and body language contribute to how one is judged initially. A good
appearance builds confidence and respect.
49. How do clothing and other artifacts stand as powerful signifiers of personal
appearance
Clothing and accessories signal professionalism, culture, status, and intent. A suit may
indicate authority, while a uniform shows role identity. These artifacts influence how one is
perceived in social and professional settings.

50. Why are people generally concerned about their personal appearance?
People care about appearance because it affects confidence, social acceptance, and career
prospects. It helps them express personality and identity. A positive appearance influences
interactions and leaves lasting impressions.
51. What are the benefits of identifying and deciphering facial expressions?
Understanding facial expressions helps in gauging emotions, building empathy, and
responding appropriately in conversations. It enhances interpersonal relationships, avoids
misunderstandings, and supports effective decision-making in both personal and
professional interactions.

52. List out four emotions that are easily conveyed through facial expressions.
1. Happiness
2. Anger
3. Sadness
4. Surprise
These emotions are universally recognized and often instinctively understood across
cultures.

53. Why is it important to make sure that your facial expressions always match with your
words?
Matching facial expressions with verbal communication builds trust and authenticity. Mixed
signals can confuse or mislead the listener. Consistent expressions help reinforce your
message and enhance credibility.

54. Explain the term Kinesics

Kinesics refers to body language and includes gestures, posture, facial expressions, and
movement. It conveys emotions, attitudes, and intentions nonverbally and plays a key role in
complementing or substituting verbal messages.
55. Why gait is considered as a significant body movement?
Gait—how a person walks—can indicate confidence, mood, and health. A brisk, upright walk
shows energy and purpose, while a slouched gait may reflect low confidence. It is often used
to judge personality at first glance.

56. List out any four positive body language gestures.

1. Smiling genuinely
2. Maintaining eye contact
3. Nodding while listening
4. Open posture with relaxed shoulders
These gestures promote trust and engagement in communication.

57. Write a short note on gestures.

Gestures are hand and arm movements used to express ideas or emotions. They can be
intentional (like waving) or unconscious (like fidgeting). Gestures support spoken words,
emphasize points, and convey enthusiasm or openness.

58. Why is eye contact very important in the context of communication?

Eye contact shows attentiveness, sincerity, and confidence. It builds trust and helps maintain
connection with the listener. Lack of eye contact can suggest dishonesty or disinterest,
weakening the impact of communication.

59. Write a short note on Haptics

Haptics refers to communication through touch, such as handshakes, hugs, or pats on the
back. It can convey warmth, empathy, and reassurance. In professional settings, appropriate
touch helps build rapport and trust.

60. Write a short note on proxemics

Proxemics is the study of personal space in communication. It reflects comfort levels,
relationships, and cultural norms. Proper use of space shows respect and professionalism,
while intrusion can cause discomfort.

61. Write any two positive aspects of handshake

1. A firm handshake conveys confidence and professionalism.
 2. It creates a positive first impression and fosters mutual respect in formal interactions.

62. What are the four kinds of distance, as categorized by Hall?

1. Intimate distance (0–18 inches) – for close relationships
2. Personal distance (1.5–4 feet) – for friends and acquaintances
3. Social distance (4–12 feet) – for formal interactions
4. Public distance (12 feet or more) – for public speaking or addressing groups

63. What are the 3 principles of space distancing in the organizational setup?
1. Hierarchy-based spacing – higher positions have more space
2. Functionality of space – layout based on tasks and roles
3. Cultural norms – space usage varies with organizational culture and geography

64. Explain the term Paralanguage

Paralanguage refers to the vocal elements that accompany speech, such as tone, pitch,
volume, and pauses. It does not involve actual words but conveys emotions, attitude, and
emphasis, affecting how the message is received.

65. How does the tone of the voice communicate?

Tone expresses emotions like anger, joy, sarcasm, or seriousness. It influences the listener’s
interpretation of the message. For instance, a warm tone builds rapport, while a harsh tone
may create distance or tension.

66. Define Chronemics

Chronemics is the study of how time affects communication. It includes punctuality, time
perception, and response timing. In professional settings, being timely signals respect and
reliability, while delays may indicate disinterest or inefficiency.

67. Write short notes on Sign language

Sign language is a visual language using hand gestures, facial expressions, and body
movements. It is primarily used by the deaf and hard-of-hearing communities. It is a
complete language with its own grammar and syntax.
68. How could one communicate by being silent?
Silence can convey agreement, discomfort, contemplation, or resistance depending on
context. It allows space for reflection and can prompt others to speak. Strategic silence is
often a powerful communication tool in negotiations.

69. How do the nonverbal cues help get message across?

Nonverbal cues support, reinforce, or replace spoken words. They help express emotions,
clarify intent, and regulate conversation flow. Effective use of gestures, facial expressions,
and tone enhances message clarity and impact.

70. Write down any two types of body language and give their interpretation
1. Crossed arms – Can indicate defensiveness or resistance.
2. Leaning forward while listening – Shows interest and engagement in the
conversation.
71. List out any four functions of nonverbal communication
1. Complementing – Supports verbal communication (e.g., smiling while greeting).
2. Regulating – Controls the flow of conversation (e.g., nodding to indicate turn-taking).
3. Substituting – Replaces words (e.g., hand gestures for "stop").
4. Contradicting – May show inconsistency with spoken words (e.g., saying "I'm fine"
while frowning).

72. What is the relevance of nonverbal communication in the context of a job interview?
Nonverbal cues like posture, eye contact, and attire play a major role in first impressions.
They convey confidence, professionalism, and interest in the job. Poor nonverbal signals may
affect the interviewer’s perception despite strong verbal answers.

73. List out any four essential nonverbal communication skills

1. Maintaining eye contact
2. Using appropriate gestures
3. Displaying facial expressions that match emotions
4. Maintaining a confident posture
These skills enhance clarity and strengthen interpersonal connections.
74. Define the term Culture
Culture refers to the shared beliefs, values, customs, and behaviors of a particular group or
society. It influences how people think, communicate, and interact. Culture shapes language,
etiquette, and perception in communication.

75. What is termed as interculture communication?

Intercultural communication is the exchange of information between people from different
cultural backgrounds. It involves understanding differences in values, norms, and language.
Effective intercultural communication reduces misunderstandings and builds mutual respect.

76. Write a short note on worldview

Worldview is the way individuals perceive and interpret the world around them. It is shaped
by culture, religion, experiences, and upbringing. Understanding worldviews helps in
adapting communication styles to avoid cultural conflict.

77. Why is attitude one of the major barriers to intrapersonal communication?

A negative attitude can distort self-perception and self-talk, leading to poor decision-making
and low self-esteem. It blocks honest self-reflection, reducing clarity in communication with
oneself and affecting personal growth.

78. What are the main causes of attitudinal barriers in communication?

1. Prejudice or bias
2. Lack of interest or motivation
3. Negative past experiences
4. Low self-esteem or overconfidence
These factors lead to misinterpretation and hinder open communication.

79. Define oral communication

Oral communication is the process of verbally exchanging information through spoken
words. It includes conversations, speeches, meetings, and presentations. It is direct,
immediate, and allows for instant feedback.

80. What are the types of oral communication?

1. Interpersonal communication – One-on-one conversations
 2. Group communication – Discussions, team meetings
3. Public speaking – Speeches, presentations
4. Telephonic communication – Calls, video conferencing

81. What are the five elements of oral communication?

1. Sender – Person delivering the message
2. Message – Information being shared
3. Medium – The spoken channel (in-person, phone, etc.)
4. Receiver – Listener or audience
5. Feedback – Response from the receiver

82. List a few characteristics of oral communication

1. Immediate feedback
2. Personal and direct
3. Flexible and spontaneous
4. Depends on tone and clarity
5. Prone to distortion if not clear

83. Provide few tips for creating an impact on the audience while delivering speech
1. Use a strong opening and closing.
2. Maintain eye contact and confident posture.
3. Vary your tone and pace.
4. Use examples and stories.
5. Encourage audience interaction.

84. What are the different types of persuasive communication?

1. Ethos – Appeal to credibility or character
2. Pathos – Appeal to emotions
 3. Logos – Appeal to logic or reason
These techniques help influence opinions and behavior.

85. Define Motivation

Motivation is the internal drive that prompts an individual to act towards a goal. It is
influenced by needs, desires, and rewards. In communication, motivation encourages
participation, learning, and performance.

86. Name the five levels in Maslow’s Hierarchy of Needs

1. Physiological needs – Food, water, shelter
2. Safety needs – Security, stability
3. Love and belongingness – Relationships, affection
4. Esteem needs – Recognition, respect
5. Self-actualization – Achieving one’s full potential

87. What is referred to as D – Needs?

D-Needs or Deficiency Needs refer to the lower four levels in Maslow’s hierarchy:
physiological, safety, love/belonging, and esteem. These are essential for survival and well-
being. Lack of them causes motivation to fulfill them.

88. What is interview

An interview is a formal conversation between an interviewer and a candidate to assess the
latter’s qualifications, skills, and suitability for a role. It can also be used for research or
investigation purposes.

89. What are the characteristics of an interview?

1. Structured interaction with a purpose
2. Two-way communication
3. Evaluative in nature
4. Can be formal or informal
5. Includes questions and answers for information exchange
90. Name a few interview skills
1. Effective listening
2. Clear articulation of thoughts
3. Confidence and eye contact
4. Research and preparation
5. Body language awareness

91. Why do you think an interview is an important selection procedure?

An interview helps employers assess a candidate’s qualifications, personality, and suitability
for a role. It allows for direct interaction, enabling evaluation of communication skills,
confidence, and professionalism. It also offers candidates a chance to learn about the job
and organization.

92. Name the different types of interviews

1. Structured Interview
2. Unstructured Interview
3. Panel Interview
4. Group Interview
5. Telephonic/Video Interview
6. Stress Interview
7. Behavioral Interview

93. What types of questions can you expect at an interview?

1. Personal questions – About background, interests
2. Educational questions – Academic performance
3. Experience-based questions – Past job roles
4. Situational questions – Problem-solving approach
5. Behavioral questions – Reaction to past events
6. Technical questions – Role-specific knowledge
94. What is the importance of group discussion?
Group discussions help assess a candidate’s communication, leadership, teamwork, and
critical thinking skills. It simulates a real workplace environment where team collaboration is
key. It also highlights a person's ability to listen and respond effectively.

95. What are the objectives of group discussion?

1. To evaluate communication and interpersonal skills
2. To assess leadership and problem-solving abilities
3. To test logical thinking and decision-making
4. To promote knowledge sharing and group synergy
5. To identify individuals who work well in teams

96. What are the roles that the participants can assume in a group discussion?
1. Initiator – Starts the discussion
2. Information Seeker/Giver – Shares data or asks for inputs
3. Clarifier – Explains ideas or opinions
4. Summarizer – Gives concluding points
5. Coordinator – Connects ideas and maintains order

97. What are the differences between a seminar and a conference?

A seminar is usually focused on a specific topic, with fewer participants and more
interaction. It aims at learning and discussion. A conference is larger, often formal, involving
presentations from multiple speakers and a wider audience for knowledge dissemination.

98. What are the types of conferences?

1. Academic Conference – For research and scholarly exchange
2. Business Conference – For industry professionals and networking
3. Press Conference – To address media/public
4. Video Conference – Remote communication between locations
5. Annual General Conference – For organizational reviews
99. What is a debate?
A debate is a structured argument where participants speak for or against a topic. It
encourages critical thinking, reasoning, and persuasion. Debates follow strict rules and help
improve public speaking, logic, and ability to defend viewpoints.

100. What are the elements of a presentation?

1. Introduction – Gaining audience attention
2. Body – Main content with facts and visuals
3. Conclusion – Summarizing key points
4. Delivery – Voice, body language, tone
5. Visual Aids – Slides, charts, videos to support the message
6. Q&A Session – Interaction with the audience
101. What are the three types of presentation?
1. Informative Presentation – Focuses on delivering information or facts.
2. Persuasive Presentation – Aims to convince the audience of a viewpoint.
3. Demonstrative Presentation – Involves showing how to do something, usually with
step-by-step visuals or examples.

102. What are the steps involved in planning to prepare for a presentation?
1. Define the objective
2. Know your audience
3. Research and organize content
4. Design visuals (slides, charts)
5. Rehearse delivery
6. Prepare for Q&A
7. Ensure technical readiness

103. What is paralanguage?

Paralanguage refers to the non-verbal elements of speech such as tone, pitch, volume, and
rate of speaking. It enhances or alters the meaning of spoken words. It helps convey
emotions, attitudes, and clarity in communication.
104. Name few fluency development strategies
1. Repeated reading
2. Listening and shadowing
3. Role-playing conversations
4. Practicing tongue twisters
5. Reading aloud
6. Watching English media with subtitles

105. What are vocal cues?

Vocal cues are elements like tone, pitch, speed, and volume that support spoken words.
They reflect the speaker’s mood, emphasis, and attitude. These cues help listeners interpret
the message correctly.

106. Name the three components of a business letter

1. Header – Includes sender’s and recipient’s address and date
2. Body – Main message of the letter
3. Closing – Signature, designation, and contact details

107. What is the importance of ambiguity and correctness in a business letter?

Ambiguity can lead to misunderstandings and errors. Correctness ensures the message is
clear, professional, and free from grammatical or factual mistakes. Both are crucial for
maintaining credibility and effective communication.

108. What are the elements of a business correspondence?

1. Date and address
2. Salutation
3. Subject line
4. Body of the message
5. Complimentary close
6. Signature and designation
 7. Enclosures (if any)

109. Why should technical abbreviations and jargons be avoided in a business

correspondence?
Not all recipients may understand industry-specific jargon or abbreviations. This can cause
confusion or misinterpretation. Using simple and clear language ensures that the message is
understood by a broader audience.

110. What is the role of approach in business communication?

The right approach determines how a message is received. A polite, clear, and professional
tone builds trust, avoids conflict, and encourages collaboration. It shapes the effectiveness
of communication.

111. What are the purposes of business writing?

1. To inform
2. To persuade
3. To request or respond
4. To document agreements
5. To establish professionalism and credibility

112. What is difference between business correspondence?

The question seems incomplete. Assuming it's about "types," business correspondence
includes letters, emails, memos, and reports. Each serves a different purpose—letters for
formal communication, memos for internal notices, and emails for quick interaction.

113. What are useful business letter tips?

1. Be concise and to the point
2. Use formal and respectful tone
3. Avoid grammar and spelling errors
4. Use proper formatting
5. Proofread before sending
6. Include clear subject and purpose
114. Write two examples of goodwill letters
1. Appreciation Letter – “We sincerely thank you for your continued support
throughout the year.”
2. Congratulatory Letter – “Congratulations on your recent promotion. We wish you
continued success.”

115. What kind of way has memo been in communication?

A memo is used for internal communication within an organization. It’s a brief, direct way to
share information, updates, or instructions across departments or teams, ensuring clarity
and accountability.

116. Are memos useful? Give 2 uses of memo

Yes, memos are useful.
1. To notify employees about policy changes or meetings
2. To document internal procedures or instructions clearly

117. Reach out to a large number of people. Is this statement true?

Yes, this statement is true. Tools like mass emails, newsletters, and digital platforms allow
businesses to communicate quickly and effectively with a wide audience, including
customers, clients, or employees.

118. Explain business memos

Business memos are short, formal documents used for internal communication. They convey
important information like updates, requests, or policy changes. Memos are structured,
objective, and used to keep teams informed and aligned.

119. Why are memos useful? Explain

Memos help in clear, concise, and quick internal communication. They keep a written record
of decisions, actions, or announcements. Memos also enhance coordination among
departments by ensuring everyone receives the same information.

120. What is an agenda? Give Example

An agenda is a structured list of topics to be discussed in a meeting. It helps participants
prepare and keeps the meeting focused.
Example:
Agenda for Team Meeting
1. Project updates
2. Deadlines review
3. Budget discussion
4. Q&A
121. What is the difference between minutes and agenda?
The agenda is a list of topics to be discussed in a meeting, prepared before the meeting.
Minutes are the written record of what was discussed and decided during the meeting. The
agenda helps plan the meeting, while minutes serve as documentation after it.

122. What is notice in an organisation?

A notice is a formal written communication used within an organization to inform employees
about important events, meetings, or decisions. It is usually brief, clear, and posted in
common areas or sent via email for quick dissemination.

123. What are the points to be mentioned in the minutes of the meeting?
Minutes should include:
1. Date and time of the meeting
2. Names of attendees and absentees
3. Agenda points discussed
4. Key decisions taken
5. Action items and responsible persons
6. Time of adjournment
7. Signature of the recorder

124. How does the minutes of the meeting help to maintain the record of the events in an
organisation?
Minutes provide a detailed and official record of discussions and decisions made in
meetings. They help track progress, ensure accountability, and serve as a reference for
future actions or legal needs. It maintains organizational transparency.
125. What are types of Order?
Types of orders include:
1. Purchase Order – Requesting goods/services
2. Sales Order – Confirmation from the seller
3. Work Order – Task assignment for internal operations
4. Standing Order – Repeated delivery without renewal
5. Service Order – For service-based tasks

126. What is enquiry?

An enquiry is a formal request for information about products, services, or terms from a
supplier or organization. It may precede a business transaction and can be either written or
verbal, aiming for clarity and prompt response.

127. What is solicited enquiry?

A solicited enquiry is made in response to an advertisement or offer from a seller. The buyer
contacts the seller to get more details about a known product or service. It is often more
focused and specific.

128. What is unsolicited enquiry?

An unsolicited enquiry is made without any prior advertisement or invitation. The buyer
contacts a seller independently to ask about products or services. It often serves as a general
interest or information-seeking step.

129. What is COD?

COD stands for Cash on Delivery, a payment method where the buyer pays for goods at the
time of delivery. It is commonly used in e-commerce and retail to build customer trust and
reduce online payment risks.

130. What are the salient features of resume?

A good resume is:
1. Brief and clear (1–2 pages)
2. Well-organized with proper headings
3. Includes personal info, education, skills, and experience
4. Free from errors
 5. Customized for the job role
6. Professionally formatted

131. What is the difference between thematic design and functional design?
Thematic design presents a resume around a central theme or strength (e.g., leadership).
Functional design focuses on skills and experience rather than chronological order, useful for
career changers or gaps in employment.

132. What are the various sections of a resume?

1. Personal Information
2. Career Objective or Summary
3. Educational Qualifications
4. Work Experience
5. Skills and Certifications
6. Achievements
7. References (optional)

133. What are special sections in a resume?

Special sections include:
 Languages Known
 Projects/Internships
 Volunteer Work
 Publications
 Professional Memberships
 Awards and Honors

134. What is performance appraisal report?

A performance appraisal report is a formal evaluation of an employee's work over a specific
period. It includes achievements, strengths, areas of improvement, and future goals. It is
used for promotions, training, or incentives.
135. What is the purpose of performance evaluation?
Performance evaluation helps assess employee productivity, identify training needs, set
goals, and recognize achievements. It also aids in decision-making for promotions, salary
hikes, or disciplinary actions, thus enhancing performance.

136. Write a short note on executive summary

An executive summary is a brief overview of a larger report, proposal, or business plan. It
highlights key points like purpose, findings, and recommendations. It is often read by
decision-makers to understand the essence without reading the entire document.

137. State a few reasons to use visual aids in business communication

Visual aids help to:
 Simplify complex data
 Enhance understanding and retention
 Keep audience engaged
 Highlight important information
 Support key messages visually

138. What are the elements that can be used in business writing?
1. Clarity and conciseness
2. Correct grammar and tone
3. Logical structure
4. Active voice
5. Proper formatting (headings, bullets)
6. Visuals like charts or tables (if needed)

139. What are the guidelines to understand the use of visual aids?
1. Keep visuals clear and relevant
2. Avoid clutter or excessive text
3. Use appropriate colors and fonts
4. Label charts and graphs
 5. Ensure visuals support your message
6. Practice using them during the presentation

140. What are 3 types of tables? What are the limitations of using tables?
Types:
1. Text tables
2. Statistical tables
3. Comparative tables
Limitations:
 Can be overwhelming with too much data
 Difficult to interpret without explanation
 Not visually engaging compared to charts

141. Why is personal appearance important in presenting information to an audience?

Personal appearance builds credibility and makes a positive first impression. It reflects
professionalism, boosts speaker confidence, and helps maintain audience attention. It also
supports non-verbal communication.

142. What are the suitable visual aids for presenting to a small group of audience?
1. Flip charts
2. Whiteboards
3. Printed handouts
4. Laptop presentations
5. Demonstration objects
These aids are interactive and easy to manage in small settings.

143. What are the limitations of using audio and video in presentation?
1. Technical issues or failures
2. May distract from the speaker’s message
3. Requires equipment setup
4. Can be time-consuming to create
 5. May not suit all audience types

144. What is a slideware? Name commonly used Slideware?

Slideware is software used to create visual presentations. Common examples include:
 Microsoft PowerPoint
 Google Slides
 Apple Keynote
They help organize content and support the delivery of messages visually.

145. What is an abstract? When should you write an abstract?

An abstract is a concise summary of a larger document like a report or research paper. It
should be written after completing the main content, providing a quick overview of purpose,
methods, findings, and conclusions.

146. State two types of abstracts.

1. Descriptive Abstract – Summarizes purpose and scope without details.
2. Informative Abstract – Includes purpose, methodology, results, and conclusion.

147. What are the good qualities of a good abstract?

1. Clear and concise
2. Self-contained and independent
3. Includes key points
4. Uses simple and objective language
5. Free from jargon and references
6. Limited to 150–250 words

148. What is an executive summary?

An executive summary is a condensed version of a full report, intended for decision-makers.
It outlines the main objectives, findings, conclusions, and recommendations, offering a quick
understanding without reading the entire report.
149. How long should an executive summary be?
It should typically be between 5% to 10% of the total document length. For most business
reports, it ranges from one to two pages, depending on the report’s complexity and
purpose.

150. What types of information goes in an executive summary?

 Purpose of the report
 Key findings or results
 Major recommendations
 Brief background/context
 Conclusion and potential impact

151. What are the contents of an executive summary?

1. Introduction
2. Problem or objective
3. Key findings or analysis
4. Recommendations
5. Conclusion
It summarizes the main points of a larger document.

152. What are the elements of an executive summary?

1. Title or heading
2. Purpose and scope
3. Summary of findings
4. Recommendations
5. Impact or implications
6. Conclusion

153. Why should you use appropriate language in executive summary?

Using appropriate language ensures clarity, professionalism, and engagement. It helps
communicate complex ideas simply and builds credibility with the audience, especially
decision-makers who rely on concise, accurate information.

154. What to avoid in executive summary?

Avoid:
 Technical jargon
 Lengthy background
 New information not in the report
 Repetition
 Ambiguity
 Overly promotional language