Line organisation is the oldest and simplest form of administrative organisation. According to this type of organisation, the authority flows from top to bottom in a concern. The line of command is carried out from top to bottom.

Outsourcing is popularly associated with IT-enabled services (ITES) and is also known as business process outsourcing (BPO). It is one of the largest job providers in India.

LLP has a separate legal entity, liable to the full extent of its assets. The liability of the partners would be limited to their agreed contribution in the LLP. Further, no partner would be liable on account of the independent or unauthorised actions of other partners and thus, allowing individual partners to be shielded from joint liability created by another partner’s wrongful business decisions or misconduct.

Security continues to be a problem for online businesses. Many people are reluctant to give out their credit card numbers via internet. For millions of potential cyber customers, the fear of credit card theft is a real one. Speed is not a problem in e-commerce since there is quick delivery of goods and redressal of consumer complaints. Maintenance costs are also very low. Organisations use just-in-time approach for stock instead of maintaining high inventory. Quality is also not a concern in e-commerce as the consumers have a wide range of options to choose before buying.

Porter wrote in 1980 that strategy targets either cost leadership, differentiation or focus. These are known as Porter's three generic strategies and can be applied to any size or form of business.

An industrial unit can be categorised as a small-scale unit if it fulfills the capital investment limit fixed by the Government of India for the small-scale sector. The Central Government has classified in the case of the enterprises engaged in the manufacture or production of goods, a small enterprise, where the investment in plant and machinery is more than twenty-five lac rupees, but does not exceed five crore rupees; in the case of the enterprises engaged in providing or rendering of services, a small enterprise, where the investment in equipment is more than ten lac rupees, but does not exceed two crore rupees.

Marketing mix is the combination of four inputs which constitute the core of a company’s marketing system, i.e. the product, the price structure, the promotional activities and the distribution system. Thus, planning is not a part of 'marketing mix'.

The government has taken every step to revive and restructure the public sector enterprises to improve their performance, productivity and profitability. Major emphasis has been laid on the sick and chronically loss-making enterprises which are capable of being revived. These enterprises are referred to Board for Industrial and Financial Reconstruction (BIFR) to prepare appropriate revival or rehabilitation package.

Market segmentation is the process of identifying distinct groups and/or sub-groups of customers in the market, who have distinct needs, characteristics, preferences and/or behaviours, and require separate product and service offerings and corresponding marketing mixes.

Co-operative marketing society is formed by small producers and manufacturers who find it difficult to sell their products individually. The society collects the products from the individual members and takes the responsibility of selling those products in the market. Gujarat Co-operative Milk Marketing Federation that sells AMUL milk products is an example of marketing co-operative society.

Following are the key drivers of globalisation:

1. Market: The domestic markets are no longer adequately rich. It is necessary to search for international markets and to set up overseas production facilities.
2. Low costs: Companies often set up overseas plants to reduce high transportation costs. Some companies set up plants overseas so as to be close to their raw materials supply and to the markets for their finished products.
3. Government policies: Governments want to encourage domestic business to expand overseas (it results in a flow of profits back into the domestic economy). So, there is a lot of help available for businesses looking to expand overseas.
4. Competition: High levels of competitive diversity, industry change and trade increase the potential for globalisation. 

The foundations of strong public enterprises, particularly the goods-producing sectors in the Indian economy, were firmly laid by our first Prime Minister Jawaharlal Nehru who was also inspired and supported by Josip Broz Tito and Abdel Gamal Nasser.

Ultra vires is a Latin phrase meaning "beyond the powers". If an act requires legal authority and it is done without such authority, it is called ultra vires.

Push factors force a company to look into new markets because their current markets are showing signs of problems. Pull factors lure a company to enter a market. Push factors: Saturation in domestic markets Economic difficulty in domestic markets End of product life cycle at home Excess capacity Risk diversification

Pull factors: Attractive overseas markets Increase sales Greater economies of scale Extension of product life cycle A competitive advantage Personal ambition

The principles of right and wrong that are accepted by an individual or organisation are what comprise a value system. The value system of the founders and those at the helm of affairs has important bearing on the choice of business, the mission and the objectives of the organisation, business policies and practices. These values guide the basic principles of business for a period of time which moulds an impression of positivism among people dealing with the business.

An original precedent is one which creates and applies a new rule of law. A declaratory precedent is one which is merely the application of an already existing rule of law.

Statutory meeting is a mandatory general meeting of the members of a company which is required to be held within a prescribed period of time. A general meeting of a company may be called by giving not less than 21 clear days’ notice, either in writing or through electronic mode.

A vision statement describes the desired future position of a company. A mission statement defines the company’s business, its objectives and its approach to reach those objectives.

An agreement not to marry at all or not to marry any particular person or class of persons is void as it is in restraint of marriage.

As per the Companies Act, 1956, every public company with share capital is required to hold a statutory meeting. However, as per Companies Act, 2013, all the companies, public as well as private, except for a one man company, are required to hold a statutory meeting.

Acceptance must be unqualified and absolute, and must correspond with all the terms of the offer.

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 a person is called a partner by estoppel and is liable to all third parties.

Every partner, whether active or dormant, has a right of free access to all records, books and accounts of the business and also to examine and copy them. Every partner has a right to take part in the conduct and management of the business. Every partner is entitled to share in the profits equally, unless different proportions are stipulated. However, a partner has no right to receive any fixed remuneration from the firm.

The expression “quantum meruit” literally means “as much as earned” or reasonable remuneration. It is used where a person claims reasonable remuneration for the services rendered by him when there was no express promise to pay definite remuneration.

As per statute, partnership is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Existence of an agreement is essential for partnership. An agreement between the partners may be expressed or implied. Thus, the relationship of partnership arises out of both statute as well as an agreement.

All partners are liable jointly and severally for all acts or omissions binding on the firm, including liabilities arising from contracts as well as torts.

There shall be a minimum of four board meetings every year and not more than 120 days shall intervene between two consecutive board meetings.

Voidable contract: An agreement which is enforceable by law at the option of one or more of the parties thereto, but not at the option of other or others, is a voidable contract. Thus, if the consent is not free, the contract becomes voidable at the option of the party whose consent was not free.

A promoter conceives an idea for setting-up a particular business at a given place and performs various formalities required for starting a company. A promoter may be an individual, firm or association of persons or a company.

An unpaid seller of goods has a right against both the buyer and the goods. An unpaid seller’s right against the goods are: (a) A lien or right of retention (b) The right of stoppage in transit (c) The right of resale (d) The right to withhold delivery

Rights of an unpaid seller against the buyer: An unpaid seller may sue the buyer for the price of goods in case of breach of contract, where the property in the goods has passed to the buyer or he has wrongfully refused to pay the price according to the terms of contract. 

A contract of sale of goods comprises of both executory as well as executed contracts.

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 an instrument is issued and made with the consent of the parties (iv) Crossing of instrument (v) Addition of the words “on demand” in an instrument where no time of payment is stated

A bill of exchange has been defined as an "instrument in writing containing an unconditional order signed by the maker directing a certain person to pay a certain sum of money only to or to the order of a certain person, or to the bearer of the instrument".

A ‘cheque’ is a bill of exchange drawn on a specified banker and not expressed to be payable otherwise than on demand, and it includes the electronic image of a truncated cheque and a cheque in electronic form.

The following are the parties to a cheque: A drawer: A person who draws a cheque A drawee: A banker of a drawer on whom a cheque is drawn A payee, holder, endorser and endorsee: Same as in the case of a bill

An acceptor is not a party to a cheque.

The word entrepreneur has a French origin. It originated during the Middle Ages when the term entrepreneur was applied to “a man in charge of great architectural works: castles and fortifications, public buildings, abbeys and cathedrals”. It is derived from the French word entreprendre, which means “to undertake”.

Albert S. Humphery was the originator of SWOT Analysis. SWOT is the analysis of a company’s Strengths, Weaknesses, Opportunities and Threats to identify a strategic niche that the company could exploit. SWOT Analysis merges the external factors (environment analysis, opportunities and threats identification) with the internal factors (company’s resource analysis, identification of company’s strengths and weaknesses). 

Porter’s Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. These are: (1) Supplier power (2) Buyer power (3) Competitive rivalry (4) Threat of substitution (5) Threat of new entry

Creativity is a function of three components: Expertise encompasses everything that a person knows and can do in the broad domain of his or her work knowledge and technical ability. Creative thinking refers to how you approach problems and solutions; the capacity to put existing ideas together in new combinations. Motivation is the drive and desire to do something, an inner passion and interest. 

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. There are three methods which may be used in environment scanning: SWOT Analysis PEST/PESTEL Analysis Industry Analysis

GE Model is not used for environment scanning.

Expansion into a new line of business is an opportunity for a firm. Useful opportunities can come from things such as: • Changes in technology and markets on both a broad and narrow scale • Changes in government policy • Changes in social patterns, population profiles, lifestyle changes, etc. • Local events

Business plans are for small as well as large companies. A small company can benefit from even a simple plan that is prepared in earnest.

Strategic plan draws the clear layout of a specific business’s venture; vision, mission, objectives, competencies, managerial abilities, technical proficiencies and sources of fund. A business plan is a document that summarises the operational and financial objectives of a business and contains the detailed plans and budgets showing how the objectives are to be realised. Thus, business plan cannot replace strategic plan. It lays down the best growth path and strategy.

Business plan does not emphasise on ideas and concepts only. The process of developing a business plan also involves determining the resources required, obtaining those resources and successfully managing the resulting venture.

Steve Jobs has given 7 principles largely responsible for success through innovation. These are described in his book, “The Innovation Secrets of Steve Jobs”. Out of these 7 principles, the 4^th principle is "Sell dreams, not products".

The primary task for running a successful venture is creating an idea.

Objectives of a business explain "what is to be achieved and by when". Strategy explains "how these objectives are to be achieved". A vision statement describes the desired future position of a company. A mission statement defines a company’s business, its objectives and its approach to reach those objectives.

Exchange rate is not a political factor in a business environment. Political factors include tax policy, employment laws, environmental regulations, trade restrictions and tariffs, political stability, etc. Exchange factors include current and projected economic growth, inflation and interest rates, exchange rates, stage of business cycle, unemployment and labour supply, etc. 

Market extension merger takes place between two companies that deal in the same product, but in separate markets. Product extension merger takes place between two business organisations that deal in products that are related to each other and operate in the same market. Horizontal merger occurs between firms who operate in the same space, often as competitors, offering the same goods or service. A vertical merger occurs when two or more firms, operating at different levels within an industry's supply chain, merge operations. Merger of an alcohol manufacturing firm with a cigarette manufacturing firm is an example of a product extension merger.

Cantillon referred entrepreneurs as one of the classes of ‘landowners’ who are financially independent aristocrats.

Following are the characteristics of entrepreneurship: – Innovation – Risk taking – Vision – Organising skills

The scarcity of capital in developing nations severely limits the number of non-farm jobs that can be created because investment costs per job are high in large and medium industries.