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What are the essential features of: a. Liberalisation, b. Privatizat...

What are the essential features of: a. | Class 12 Business Studies Chapter Business Environment, Business Environment NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter Business Environment. This page offers a step-by-step solution to the specific question from Exercise 3, Question 6: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 6:

What are the essential features of:
a. Liberalisation,
b. Privatization and
c. Globalisation?

Answer:

a) Liberalization

Liberalization means to liberate industry from the shackles of the licensing system. The economic reforms that were introduced were aimed at liberalizing the Indian business and industry from all unnecessary controls and restrictions. Liberalization signalled the end of the license permit quota and other restrictions that were put on the industries before 1991.

The essential features of liberalization are:

1. It stresses freedom of business and industry from unnecessary controls and restrictions of the government.
2. Emphasis was laid on simplifying export and import procedures.
3. Restrictions on the movement of goods and services were removed. 4) Public sector enterprises were dereserved.

b) Privatization

Privatization means to drastically reduce the role of the public sector. It refers to transfer of ownership, management and control of the public sector to the private sector. And to achieve this government adopted disinvestment of the public sector and referred the loss making and sick enterprises to the Board of industrial and Financial Reconstruction.

The essential features of privatization are:

1. It stresses the induction of private ownership, management and control in the public sector.
2. There was a significant reduction in the role of public sector enterprises for economic growth.
3. BIFR (Board on Industrial and Financial Reconstruction) was established for revival of loss making and sick enterprises.
4. Disinvestment of the public sector took place at a significant rate. Disinvestment means the process of sale of public sector enterprises to the private sector.

c) Globalization

Globalization means to encourage foreign private participation in India’s industrial development. It refers to integration of the various economies of the world leading towards the emerging of a cohesive or interconnected global economy. It also implies reducing the restrictions on the import and export such as licensing and tariffs.

The essential features of Globalization are:

1. It stresses the integration of domestic economies into a cohesive or interconnected global economy.
2. Licensing was abolished for imports.
3. The share of foreign equity participation was increased.
4. Foreign Investment Promotion Board (FIPB) was set up to promote foreign investments in India.

Other Questions of Chapter Business Environment

Why is understanding the business environment crucial for managers?

Explain the following terms:
a. Liberalisation
b. Privatization
c. Globalisation

The government of India announced Demonetization of ₹ 500 and ₹ 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing ₹ 500 and ₹ 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of ₹ 500 and ₹ 2,000 were issued by Reserve Bank of India after the announcement.

This step resulted in a substantial increase in the awareness about and use of Point of Sale machines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.

a. Enumerate the dimensions of the business environment highlighted above.
b. State the features of Demonetization.

What is the impact of legal changes on the business environment?

Explain, with examples, the various dimensions of the business environment.

What is the meaning of 'Business Environment'?

National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of virtual repository of learning resources with a single-window search facility. It provides support to all academic levels including researchers, life-long learners and differently-abled learners free of cost. State the dimensions of business environment highlighted above.

State the impact of demonetization on interest rates, private wealth and real estate.

What economic changes were initiated by the Government under the Industrial Policy, 1991? What impact have these changes made on business and industry?

Discuss the impact of globalization on the business environment.

Popular questions of class 12 Business Studies

What are the steps taken by management in the planning process?

Why is management considered to be a multi-dimensional concept?

Explain the procedure for selection of employees.

Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of Rs 12, 00,000 per year. Name the objectives of management achieved by Indian Railways in the above case.

Discuss the relevance of Taylor and Fayol’s contribution in the contemporary business environment.

Define scientific management. State any three of its principles.

Explain the qualities of a good leader? Do the qualities alone ensure leadership success?

Management is a series of continuous interrelated functions. Comment.

Sunrises Ltd. dealing in readymade garments, is planning to expand its business operations in order to cater to international market. For this purpose the company needs additional ₹ 80,00,000 for replacing machines with modern machinery of higher production capacity. The company wishes to raise the required funds by issuing debentures. The debt can be issued at an estimated cost of 10%. The EBIT for the previous year of the company was ₹ 8,00,000 and total capital investment was ₹ 1,00,00,000. Suggest whether issue of debenture would be considered a rational decision by the company. Give reason to justify your answer. (Ans. No, Cost of Debt (10%) is more than ROI which is 8%).

Ashita and Lakshita are employees working in Dazzling enterprises dealing in costume jewellery. The firm secured an urgent order for 1,000 bracelets that were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of Rs 100 per bracelet. Ashita was able to produce the required number within the stipulated time at the cost of Rs 55,000 whereas, Lakshita was able to produce only 450 units at a cost of Rs 90 per unit. State whether Ashita and Lakshita are efficient and effective. Give reasons to justify your answer.

Recently Viewed Questions of Class 12 Business Studies

What is the role of NGOs in Consumer Protection?

Discuss the role of SEBI in regulating the financial markets in India.

What is the role of the Central Consumer Protection Authority (CCPA)?

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

State the different networks of grapevine communications.

Kaul Consultants have launched www.naukaripao.com exclusively for senior management professionals. The portal lists out senior level jobs and ensures that the job is genuine through rigorous screening process.

a. State the source of recruitment highlighted in the case above.
b. State four benefits of the above identified source of recruitment.

Why are rules considered to be plans?

Can a large sized organisation be totally centralised of decentralised? Give your opinion.

Explain how management is both an art and a science.

What is the meaning of organizing in management?

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

Read the question carefully and focus on the core concept being asked.
Reference examples and data from the chapter when answering questions about Business Environment.
Review previous year question papers to get an idea of how such questions may be framed in exams.
Practice answering questions within the time limit to improve your speed and accuracy.
Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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