DCM3203 BUSINESS ENVIRONMENT MARCH 2025

Description

SESSION	MARCH 2025
PROGRAM	BACHELOR OF COMMERCE (B.COM)
SEMESTER	VI
COURSE CODE & NAME	DCM3203 BUSINESS ENVIRONMENT

 

 

 

Set – 1

 

Q1. (i) Explain the SWOT analysis and steps involved in the application.

(ii) Describe the instruments of monetary policy.  

Ans 1.

1. SWOT Analysis

SWOT analysis is an essential strategic planning tool used by businesses and organizations to identify and evaluate their internal strengths and weaknesses, as well as external opportunities and threats. The acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. It enables organizations to create a strategic plan by understanding what they do well, what needs improvement, where opportunities exist, and what external factors could hinder growth. This analysis is highly valuable in decision-making processes such as product launches, market expansion, or organizational

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Q2. Write a short note on the given topics:

(i) Changing profile of the Indian economy

(ii) Influence of culture on communication and decision-making

Answer 2

1. Changing Profile of the Indian Economy

Over the last seven decades, India’s economic structure has witnessed significant transformation. At the time of independence in 1947, India was predominantly an agrarian economy with agriculture contributing nearly 50% to the GDP. Today, the contribution of agriculture has reduced significantly, while the service sector has emerged as the dominant force, contributing over 50% of the GDP. This shift from a primary-sector economy to a service-driven economy highlights India’s gradual but impactful economic development.

One major change has been the move towards liberalization, privatization, and globalization,

 

 

Q3. (i) Describe the characteristics of a mixed economy.

(ii) Explain the role of Foreign Direct Investment.

Ans 3.

1. Characteristics of a Mixed Economy

A mixed economy is a blend of both capitalist and socialist elements, wherein the private and public sectors coexist and function together to contribute to national development. India is a classic example of a mixed economy, where both market-driven mechanisms and government interventions coexist. One of the most important features is the coexistence of public and private sectors. While private entities operate in sectors such as consumer goods, retail, and services, the government controls key infrastructure industries like defense, railways, and

 

 

 

Set – 2

 

 

Q4. (i) Discuss the different laws impacting the business in India.

(ii) “An ideal economy is based on three principles”. Elaborate the statement.

Ans 4.

1. Laws Impacting Business in India

India’s business environment is governed by a framework of laws that regulate various aspects such as company formation, consumer rights, taxation, trade practices, employment, and environmental protection. One of the most important laws is the Companies Act, 2013, which governs the incorporation, responsibilities, and dissolution of companies in India. It aims to enhance transparency, accountability, and good governance in corporate functioning. The Act mandates corporate social responsibility (CSR) for certain companies and has

 

 

Q5. (i) Describe the crisis of June 1991.

(ii) Discuss the benefits of privatization.

Ans 5.

1. Crisis of June 1991

The economic crisis of June 1991 is considered a turning point in India’s post-independence economic history. It was marked by severe balance of payments problems, skyrocketing inflation, a fiscal deficit, and a depletion of foreign exchange reserves to such an extent that the country had barely enough to finance imports for two weeks. The situation forced India to pledge gold to secure emergency loans from the International Monetary Fund (IMF) and the World Bank.

The crisis was triggered by both internal and external factors. Internally, the Indian economy

 

 

Q6.(i) Explain the concept of globalization and its benefits.

(ii) Write a short note on the structure of the WTO.

Ans 6.

1. Concept of Globalization

Globalization refers to the process of increased interconnectedness and interdependence among countries through the exchange of goods, services, capital, technology, and ideas. It implies the integration of national economies into the global economy, enabling businesses and individuals to operate on an international scale. This phenomenon has been accelerated by advancements in transportation, communication, and digital technologies, making global collaboration more efficient and accessible.

Globalization is characterized by several key features. These include the liberalization of