DCM1104 BUSINESS ORGANISATION JULY-AUG 2025

Description

SESSION	JULY-AUG 2025
PROGRAM	BACHELOR OF COMMERCE (B COM)
SEMESTER	I
COURSE CODE & NAME	DCM1104 BUSINESS ORGANISATION

 

 

Set – 1

 

 

Q1. Enumerate the advantages and disadvantages of Joint Stock Companies.  5+5     

Ans 1.

 (a) Advantages of Joint Stock Companies

A Joint Stock Company is one of the most significant forms of business organization because it provides a structured way to raise large amounts of capital and operate on a large scale. One major advantage of this form is limited liability, which protects shareholders from personal financial risk. Their liability is restricted only to the amount invested, and personal assets remain safe even if the company faces losses. This encourages wider participation from investors who prefer security in business dealings.

Another key advantage is the ability to raise substantial capital. Since ownership is divided

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Q2. Write a short note on:               

A Systematic Risks 5

B Primary Sector of Business 5      

 

Ans 2.

1. Systematic Risks

Systematic risk refers to the type of risk that affects the entire market or the economy as a whole. Unlike unsystematic risk, which is tied to a specific company or sector, systematic risk arises from external and uncontrollable factors. Examples include inflation, interest rate changes, recession, global crises, political instability, and currency fluctuations. These risks cannot be eliminated through diversification because they influence all industries

 

 

Q3. Describe the factors affecting the size of the business.           10       

Ans 3.

Factors Affecting the Size of a Business

Nature of the Industry

The size of a business is influenced first by the nature of the industry in which it operates. Some industries naturally require large-scale operations due to heavy investment, specialized machinery, and complex processes. Examples include steel, automobiles, textiles, cement, and petrochemicals. These industries cannot thrive on a small scale because production efficiency increases only with larger operations. On the other hand, activities such as tailoring, bakery work, handicrafts, or tutoring can function effectively on a small scale since

 

 

Set – 2

 

Q4. Discuss in detail the different types of business combinations. 10    

Ans 4.

Different Types of Business Combinations

Business Combinations

Business combinations refer to the joining together of two or more business units with the goal of achieving mutual benefits such as increased market share, reduced competition, improved efficiency, or expanded resources. Such combinations help firms grow, survive competitive pressures, and achieve economies of scale. The rise of globalization and technological advancement has further increased the need for strategic alliances among

 

 

Q5. Explain the role of the Federation of Indian Chambers of Commerce and Industry (FICCI) in promoting and protecting the interests of the Indian business community. 10

Ans 5.

Role of FICCI in Promoting and Protecting Indian Business Interests

FICCI

The Federation of Indian Chambers of Commerce and Industry (FICCI) is one of India’s oldest and most influential business organizations. Established in 1927, it serves as a bridge between the government, industries, and policymakers. FICCI plays a critical role in shaping economic policies and supporting the growth of Indian businesses both domestically and

 

 

Q6. Describe the objectives and key provisions of the Competition Act, 2002. 10         

Ans 6.

Objectives and Key Provisions of the Competition Act, 2002

The Competition Act, 2002 was enacted to replace the earlier Monopolies and Restrictive Trade Practices (MRTP) Act. Its main purpose is to promote fair competition in the Indian market, prevent anti-competitive practices, and protect consumer interests. The Act is enforced by the Competition Commission of India (CCI).

Objectives of the Competition Act

A key objective of the Act is to prevent practices that adversely affect competition. This