NIOS Free Solved Assignment 2022 – 2023
NIOS Business Studies 319 Free Solved Assignment 2022 – 23
Tutor Marked Assignment
Max. Marks: 20
(i) All questions are compulsory. The marks allotted for each question are indicated against each question.
(ii) Write your name enrolment numbers, AI name, and subject on the top of the first page of the answer sheet.
1. Answer any one of the following questions in about 40-60 words. 2
a) You want to start a Business, but you are unaware
about the Business risk. Analyze the factors that cause Business risks. (See Lesson-1)
Ans: Business Risk: Business risk means possibility of some occurrence, which might lead to some loss for the business. No business can run without some element of risk in it. In fact, business means assuming risk.
Causes of business risks may be classified as follows:
a) Natural Causes: Human beings have no control over the nature. Unforeseen events like heavy rains, famine, earthquake etc. affects business adversely.
b) Human causes: These include dishonesty, carelessness and negligence of employee, riots, strikes etc.
c) Economic Causes: Economic causes relate to fluctuations in demand and price or changes in the market conditions.
d) Physical Causes: These include all technical or mechanical causes, which affect the working of the business.
b) “Communication plays an important role for Business.” Agree or disagree? Share your view point in not more than 60 words. (See Lesson-2)
Ans: Communication is the life blood of business. It is an all pervasive function of management. Today the organizational structure is designed on the basis of specialization and division of labour. Large number of people work together who are functionally related to each other. Thus, coordination is must amongst the workmen. Co-ordination can be achieved only when there is mutual trust and understanding between them. This understanding is created by effective communication. Thus communication is an essential ingredient for effective management. Further the role of communication may be summed up as:
1. The objectives, plans and policies of the organization are cleared to the workers through communication.
2. It provides unity of direction to various activities of the enterprise.
3. It helps in controlling and coordinating the various activities of the organization.
4. It helps in motivating the workers of an organization.
5. It helps the managers to develop their managerial skill.
2. Answer any one of the following questions in about 40-60 words. 2
a) Mrs. Vanshika wishes to run a small business in our country. Give her some idea about the Government as well as various institutional support provided for the development of small business. (See Lesson-8)
Ans: Small businesses at present are backbone of the Indian economy. It not only creating employment opportunities in our country but also generating revenues for government. Considering these benefits Government of India is giving full to small businesses buy introducing various PLI scheme. Also Make in India concept is launched to promote manufacturing in India.
Not only government, various institutions are also giving full support for the promotion of small and rural industry:
a) National Bank of Agriculture and rural development (NABARD): It supports small and rural industries by offering credit facilities, counseling and consultancy services and organising training programs.
b) Rural Small Business Development (RSBDC): It provides management and technical support to small entrepreneurs in rural areas.
c) Small Industries Development bank of India (SIDBI): It provides direct and indirect assistance to meet credit needs of small business organisations.
d) National Commission for enterprises in the unorganized sector (NCEUS) – It helps in improving the productivity of small enterprises, to enhance the competitiveness and to provide facilities in the areas of credit technology and raw material.
e) Rural and Women Entrepreneurship Development (RWED) – It creates a business environment to encourage initiatives of rural people. Women entrepreneurs provide training and advisory services.
f) District industry Centers (DICs): It provides integrated administrative framework at district level. It provides all the services and support facilities to the entrepreneurs for setting up small industries.
b) Mr. Raj wishes to run a small business in our country. Explain him how small business plays an important role in the socio–economic development of country with the help of real life examples. (See Lesson-8)
Ans: Indian society has various problems like unemployment, scarcity of capital, unbalanced regional development, economic inequality etc. Small scale industries help in solving these problems and help in the socio- economic development.
a) Small scale industries are labour intensive and provide employment to large number of people in rural areas where large industries cannot be set up.
b) Small scale industries prevent concentration of economic power and lead to wide dispersal of income.
c) Small scale industries facilitate regional balanced development by setting up industries in rural areas.
d) Small scale industries use entrepreneurial abilities and un-utilised savings of people in remote areas.
e) Small scale industries provide valuable support to large scale industries by supplying them necessary inputs or distributing the final output.
3. Answer any one of the following questions in about 40-60 words. 2
a) Your friend running a manufacturing unit needs to hire more employees. Where can she source people from? (See Lesson-12)
Ans: Answer only one question
b) Ms Mehwish runs a boutique service, and needs to train new as well as the existing employees. Suggest the training methods she can use to train the employees. (See Lesson-12)
Ans: On-the-job training: When the employees are trained while they are performing the job then it is known as On the-job training. Under this method the employees learn by doing. This method is suitable only for technical jobs and the advantage of this method is employees can learn the practical problems while working on the job. The biggest disadvantage of on-the-job training is that it results in wastage of resources.
Commonly used methods used for on the job training are:
a) Apprenticeship programme/training: The workers seeking to enter skilled jobs are sent for apprenticeship training programme which is an on-the-job method of training. In the Apprenticeship Programme, a master worker or a trainer is appointed who guides the worker or learner regarding the skill of job. It is suitable for people seeking to enter skilled traits for example – plumbers, electricians, iron worker etc.
b) Job rotation: Job rotation is an on-the-job method of training in which the employee is shifted from one job position to other for short interval of time to make him aware of requirements of all the job positions. For example, in banks the employees are shifted from one counter to other so that they learn the requirements of all the counters.
c) Internship: Internship is an agreement between the professional institutes and the corporate sector when professional institutes send their students to various companies so that they can practice the theoretical knowledge acquired by them through professional institutes. Under this training programme the organizations get people with fresh ideas and latest knowledge and the companies have to pay very less amount of salary which is called stipend.
d) Coaching: In this method superior guides and instructs the trainee as a coach. He guides employee, how he can over-come his weakness and make his strength stronger, superior suggest the changes required in the behaviour and performance of the employee.
e) Induction or orientation training: Induction or orientation is a process of receiving and welcoming an employee when he first joins the company and giving him the basic information he needs to settle down quickly and happily and start work.
4. Answer any one of the following questions in about 100-150 words. 4
a) “XYZ” is aware of the fact that comparison of actual and standard performance may lead to other possible outcome. Help him to examine the situations (a) equal to (b)more than (c) less than the standard. (See Lesson-14)
Ans: Answer only one question
b) Mr. Ashok has a company, and has an option to issue different types of preference shares. State all the types preference shares a company can issue. (See Lesson-15)
Ans: Preference Share: According to Sec. 43 (a) of the Companies Act 2013, a share that carries the following two preferential rights is called ‘Preference Share’:
(i) Preference shares have a right to receive dividend at a fixed rate before any dividend given to equity Shares.
(ii) Preference shares have a right to get their capital returned, before the capital of equity shareholders is returned in case the company is going to wind up.
Types of Preference shares:
(a) On the basis of dividend: Cumulative and Non-cumulative preference shares
Cumulative preference shares are those which have the right to receive arrear of dividend before the dividend is paid to the equity shareholders.
Non-cumulative preference shares are those which do not have the right to receive arrear of dividends.
(b) On the basis of participation: Participating and non-Participating preference shares
Participating preference shares are those which have the rights to participate in remaining profits after payment of dividends to the equity shareholders.
Non-Participating preference shares are those which do not have the rights to participate in remaining profits after payment of dividends to the equity shareholders.
(c) On the basis of conversion: Convertible and Non-Convertible preference shares
Convertible preference shares are those which have the right to be converted into equity shares.
Non-convertible preference shares are those which do not have the right to be converted into equity shares.
(d) On the basis of redemption: Redeemable and Irredeemable preference shares
Redeemable preference shares are those which are redeemable after the expiry of specific period of time.
Irredeemable preference shares are those which are not redeemed by the company except in case of winding up.
5. Answer any one of the following questions in about 100-150 words. 4
a) Mr. Ahmed wants to set up a new enterprise. Guide about the financial institution that offers, and provides long and medium term finance to large enterprises. (See Lesson-16)
Ans: Financial institutions that offers medium and long term loans to large enterprises:
1. Commercial Banks: Commercial banks are leader in providing financial assistance to business units. Business can raise finance from commercial banks in the following ways
a) Term Loan: For medium term
b) Cash Credit: Interest is charged on the amount actually withdrawn.
c) Overdraft: Current Account holders are allowed to overdraw his A/c.
d) Discount of bill:
e) Banks provide short term finance in exchange for bill.
2. IFCI: The Industrial Finance Corporation of India (IFCI) was established in 1948 under a special Act of Parliament. It was set up to make medium and long term credits to industrial concerns in India. IFCI grants loan mainly for starting new ventures, expansion of existing capacity, replacement or renovation.
3. IDBI: IDBI was established in July, 1964. It was established with the object of recognizing and integrating the structure of the existing financial institution in the country for gearing up the needs of rapid industrialization.
4. SIDC: The State Industrial Development Corporation were incorporated under the Companies Act, 1956 as wholly owned state Govt. undertaking for promoting industrial development. Their main objective is the development of medium and large scale industries in their respective states.
b) Mr. XYZ enterprises have a shop which enjoys large scale purchase, or production of goods. Do you think that customer can bargain in these kinds of store? Share your own views. (See Lesson-22)
Ans: Answer only one question
6. Prepare any one project out of the following projects given below. 6
a) “XYZ” is running a business, and wants to promote a product in the market to increase sale. Guide him about the methods to do promotions. (See Lesson-21)
Ans: Answer only one question
b) Your friend in a society wants to form a co-operative society. Explain the benefits and limitations before he starts. (See Lesson-5)
Ans: A co-operative society is a voluntary association started with the aim of service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals. A Co-operative Society is established by group ten or more persons who voluntary come together for mutual benefit. It is based on the principles of collective effort, mutual self-help, equality and freedom.
Advantages of Cooperative Society
a) Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations.
b) No obstruction for membership: Nobody is obstructed to join on the basis of religion, caste, colour etc.
c) Limited liability: In most cases, the liabilities of the members of the society are limited to the extent of capital contributed by them.
d) Service motive: In Cooperative society members are provided with better good and services at reasonable prices.
e) Democratic management: Every member has equal rights through its single vote but can take active part in’ the formulation of the policies of the society.
Disadvantages or the limitations of a co-operative organisation:
a) Limited Capital: Co-operative societies are generally formed by the weaker section of the society. The members can invest only a limited capital.
b) Lack of Competent Management: Co-operative societies are managed by the elected representatives of the members who generally possess neither the experience, nor the technical and professional qualification to run a business organisation.
c) Lack of Secrecy: The affairs of a co-operative society are openly discussed in the meetings of the members. This makes it very difficult for the societies to keep their secrets closely guarded.
d) Non-cooperation and Infighting: The members of a society generally belong to the same locality or occupation; they have their own personal prejudices and professional jealousies against each other.
e) Lack of Motivation: Laws governing the co-operatives prescribe a ceiling on the vote of return. This may dampen initiative and efforts on the part of members.