Environmental understanding helps business organisations in improving their image by showing their sensitivity towards the environment within which they are working.

 A vision statement describes the desired future position of a company.

 Minimum 10 persons are required to form a co-operative society.

Statutory corporation refers to a corporate body created by the Parliament or State Legislature by a special act which defines its powers, functions and pattern of management.

Liberalisation refers to the process of eliminating unnecessary controls and restrictions on the smooth functioning of business enterprises. Privatisation means transfer of ownership and/or management of an enterprise from the public sector to the private sector. Globalisation may be defined as “the growing economic interdependence of countries worldwide through increasing volume and variety of cross border transactions in goods and services and of international capital flows and also, through the more rapid and widespread diffusion of technology”. 

M-commerce is the ability to conduct commerce using a mobile device, such as a mobile phone, a Personal Digital Assistant (PDA), a smart phone or other emerging mobile equipments, such as dash top mobile devices.

The choice of the form of commercial organisation largely depends upon the given factors and many other factors such as continuity and stability, flexibility of operations, distinct ownership, etc.

A co-operative society after registration is recognised as separate legal entity by law. The income of co-operative society is legally taxable as per the Income Tax Act, 1961.

Flow has been defined as a method of production organisation where the task is worked on continuously or where the processing of material is continuous and progressive. Car manufacturing is an example of flow processing.

The basic concept of B2C model is to sell the product online to consumers. Online purchase of a book from flipkart is an example of this model.

 For a car manufacturing business, production management and quality assurance are the core business funtions. However, a car manufacturing firm can outsource customer relationship function from an outside agency.

Working capital budget specifies available working capital, i.e. investment in current assets like inventory, debtors, etc. at different points of time.

Operational strategy is concerned with how each part of a business is organised to deliver the corporate and business unit level strategic direction. Operational strategy focuses on issues of resources, processes, people, etc.

Transfer pricing enables multinational corporations to avoid taxes by manipulating prices in the case of intra-company transactions.

In business, secretarial division is reponsible for performing secretarial functions, i.e complying procedural formalities relating to corporate restructuring. For example, conducting Board Meetings, drafting agendas, etc.

Novation – when a new contract is substituted for existing contract either between the same parties or between different parties, the consideration mutually being the discharge of the old contract

 The doctrine of stare decisis means “adhere to the decision and do not unsettle things which are established”.

The Indian Contract Act has defined contract in Section 2(h) as “an agreement enforceable by law”.

 A contract becomes voidable when the consent of the parties is induced by coercion, undue influence, misrepresentation or fraud.

A contingent contract is a contract to do or not to do something if some event collateral to such contract does or does not happen. For example, A contracts to sell B 10 bales of cotton for Rs. 20,000 if the ship by which they are coming returns safely. This is a contingent contract. Contract of insurance and contracts of indemnity and guarantee are popular instances of contingent contracts.

Surety cannot be discharged from liability if the principal debtor fails to make the payment. In such a case, surety becomes liable to pay in place of principal debtor.

If the behaviour of a person arouses misunderstanding that he is a partner in a firm (when actually he is not), such a person is estopped from later on denying the liabilities for the acts of the firm. Such person is called partner by estoppel and is liable to all third parties.

 Any agreement with minor or with any person on behalf of minor is void.

A del credere agent is a mercantile agent. In the event of a third-party failing to pay, the del credere agent is bound to pay his principal the sum owned by third party.

A partner has the right to receive remuneration and interest on capital only if within the limits prescribed by the law as well as specified in the partnership deed.

According to Section 2(7) of the Sale of Goods Act, “goods” means every kind of movable property other than actionable claims and money and includes stock and shares, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale.

Mens rea means a guilty mind.

Nemo Dat Quod Non Habet - no one can pass a better title than he himself has

The dissolution of partnership takes place in the following circumstances: (a) By the expiry of the fixed term for which the partnership was formed (b) By the completion of the adventure (c) By the death of a partner (d) By the insolvency of a partner (e) By the retirement of a partner

 Right to claim damages is available in case of breach of condition as well as warranty.

A “promissory note” is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking, signed by the maker to pay a certain sum of money to, or to the order of, a certain person, or only to bearer of the instrument. Option (3) satisfies all the conditions of a promissory note.

Free transferability of shares is the feature of a public company, not a private company.

Accommodation bill is a bill in which a person lends or gives his name to oblige a friend or some person whom he knows or otherwise. Hence, accomodation bill is drawn, accepted or endorsed without consideration.

There is no material alteration in the following cases: (i) Correction of a mistake (ii) To carry out the common intention of the parties (iii) An alteration made before the instrument is issued and made with the consent of the parties (iv) Crossing a cheque (v) Addition of the words “on demand” in an instrument, where no time of payment is stated

Primary research is proactively created for a specific purpose. Primary research may include focus groups, qualitative surveys and phone interviews.

A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation is an intrapreneur.

X, Y and Z are features of intrapreneurship.

As per the Companies Act, 2013, all other businesses can be transacted at an Annual General Meeting except the following: (i)     Consideration of financial statements and the reports of Board of Directors and auditors (ii)    Declaration of any dividend (iii)   Appointment of directors in place of those retiring (iv)   Appointment and fixing of the remuneration of auditors

Strengths and weaknesses are often internal to the organisation, while opportunities and threats generally relate to external factors. For this reason, the SWOT Analysis is sometimes called Internal-External analysis and SWOT matrix is sometimes called an IE matrix.

Joseph Schumpeter believed that the concept of innovation is process of “creative destructions.” Innovation requires a fresh way of looking at things, an understanding of people, and an entrepreneurial willingness to take risks and to work hard.

Ongoing scanning at an almost unconscious level is passive scanning. No effort is made to select a particular information resource to scan. Only ad hoc decisions are made on the results of this type of scanning.

 Business plans should be concise and well written is not a myth, but a reality.

Strategic plan draws the clear layout of specific business’s venture, vision, missions, objectives, competencies, managerial abilities, technical proficiency, and sources of fund. Thus, vision and mission statements of an organisation are a result of strategic planning.

According to Peter F. Drucker, innovation is a means by which entrepreneurs exploit change as an opportunity for a different business or a different service.

Superstar entrepreneur is lead by charisma, charm and high energy. An entrepreneur like this has an overwhelming personality which works in his favour, so does in the favour of business. This personality often will cause to build business around own personal brand.

The necessity of entrepreneurship for production was first formally recognised by Alfred Marshall in 1890.

Self-efficacy is the belief in one’s capabilities to organise and execute the courses of action required to manage prospective situations. People with a weak sense of self-efficacy: – Avoid challenging tasks – Believe that difficult tasks and situations are beyond their capabilities – Focus on personal failings and negative outcomes – Quickly lose confidence in personal abilities

According to Schumpeter, “Entrepreneurship is essentially a creative activity or an innovative function”.

Environment scanning is careful monitoring of an organisation’s internal and external environments for detecting early signs of opportunities and threats that may influence its current and future plans.

PESTLE analysis is in fact, an audit of environmental influences on the business idea with the purpose of using this information to preascertain the factors affecting the likely project and thereby guiding strategic decision-making in accordance.