[11/30, 4:07 PM] Olive: SECTION C
Trade Union:- an organized association of workers in a trade, group of trades, or profession, formed to protect and further their rights and interests.
(i) To provide for educational, cultural and recreational facilities.
(ii) To co-operate in and facilitate technological advance by broadening the understanding of workers on its underlying issues.
(Iii) To promote identity of interests of workers with their industry.
(iv) To offer responsive co-operation in improving levels of production and productivity, discipline and high standards of quality and
[11/30, 4:07 PM] Olive: NABTEB GCE ADVANCED COMMERCE ANSWERS
SECTION A; ANSWER ALL QUESTIONS
Social-cultural environment can be defined as that part of the firm’s external marketing environment in which social or cultural changes (that is, changes to the value system of a society) act to affect the firm’s marketing effort
Product Modification refers to the improvement of the existing products by making necessary changes in the characteristics, nature, size, packing and colour, etc., of the products so that the changes in demand of consumers may be dealt effectively. The purpose of the product modification is to maintain existing demand, attract new users and to face the competitors effectively.
(i) Improving Retention
(ii) Maximizing Profit
(iii) Increasing Sales Volume
(iv) Matching Competitors’ Prices
(4a) A market can be defined as a place where buyers and sellers can meet to facilitate the exchange or transaction of goods and services
(i) Makes consumers aware of the existence of products, services or ideas.
(ii) Informs people where to obtain goods and services.
(iii) Helps in bringing buyers and sellers together.
(iv) Educates people on how to make use of the products or services.
Documentary Credit is a payment technique whereby a bank commits itself, on behalf of its client (the importer), to pay to a beneficiary (the exporter) within a fixed period, the price of goods / services against the delivery by the exporter of previously agreed and compliant documents proving the value and shipment of the goods / services.
A revocable letter of credit is a type of letters of credit which can be modified, amended, or canceled by the issuing bank after its issuance without taking the persimmon or giving any prior notice to the beneficiary WHILE An irrevocable Letter of credit is a type of letter of credit which does not allow its issuing bank to modify, amend or cancel without seeking prior consent or giving an acknowledgment of the same to the beneficiary.
A bill of lading is a document accompanying freight that states the agreement between the shipper and the carrier and governs their relationship when goods are transported.
A clean bill of lading is a document issued by a carrier which indicates that the goods received in the vessel are in good condition and without any damage or defect.
A tariff is a tax imposed by a government on goods and services imported from other countries that serves to increase the price and make imports less desirable, or at least less competitive, versus domestic goods and services.
(i) To protect infant industries
(ii) To prevent dumping of goods
Open Market Operations:It is one of the most important ways of monetary control that is exercised by the central banks. Under this system, the central bank sells securities in the market when it wants to reduce the money supply in the market. It is done to increase interest rates. This policy is also known as the contractionary monetary policy. Similarly, when the central bank wants to increase the money supply in the market, it will purchase securities from the market. This step is taken to reduce the rate of interest and also to help in the economic growth of the country. This policy is known as the expansionary monetary policy.
Moral suasion: It is a qualitative method of credit control, being used by the central bank. Under this method, the Central Bank merely uses its moral influence on the commercial banks. It includes the advice, suggestion request and persuasion with the commercial banks to co-operate with the Central Bank. If the commercial banks do not follow the advice extended by the Central Bank, no penal action is taken against them. The success of this method depends upon the co-operation between the Central Bank and Commercial Banks and the respect the Central Bank commands from other banks.
(i) Commercial Bank:
Commercial banks are the back bone of the money market. They form one of the major constituents of the money market. These banks use their short term deposits for financing trade and commerce for short periods. The commercial banks invest their funds in the discounting of bills of exchange, i.e. both exchange bills or commercial bills and treasury bills or government bills to facilitate trade and commerce by mobilising the flow of money.
(ii) Central Bank:
The central bank plays a vital role in the money market. It is the monetary authority and is regarded as an apex institution. No money market can exist without the central bank. The central bank is the lender of the last resort and controller and guardian of the money market. The member banks may approach the central bank for loans and advances during emergency. It controls and guides the institutions working in the money market.
SECTION B; ANSWER AT LEAST ONE QUESTION FROM EACH PART
Industrial goods are materials used in the production of other goods.Industrial goods are bought and used for industrial and business use. They are made up of machinery, manufacturing plants, raw materials, and any other good or component used by industries or firms WHILE Consumer goods are finished products that are sold to and used by consumers. Consumer goods are ready for the consumption and satisfaction of human wants, such as clothing or food.
Sales forecasting is simply the estimation of future sales revenue. It is done by predicting how many sales a sales unit (a company, team, or individual salesperson) can make in the coming week, month, quarter, or year. The sales forecast is often based on historical data, industry averages, and the current status of the sales pipeline.
(i) SALES AND PROFITS: Foreign markets constitute a large share of the total business of manyfirms that have wisely cultivated markets abroad. For example, Coco-Cola’s foreign sales account for 80% of its total revenue.
(ii) DIVERSIFICATION: Domestic markets are affected by cyclical factors (i.e., recession) andseasonal factors which are likely to cause a drop in sales. So foray into overseasmarkets may help a firm avoid such a possibility. Foreign markets iron out fluctuations by providing outlets for excess production capacity.
(iii) INFLATION AND PRICE MODERATION: International marketing influences domestic firms to moderate their prices. Absence of imported products compels consumers to buy domestic products at higher prices, resulting in inflation.
(iv) STANDARDS OF LIVING: Trade affords participating nations and citizens higher standards ofliving. Without trade, product shortages force people to pay more for less,denying them the purchasing power to buy more
Fixed capital: It is the portion of total capital outlay of a business invested in physical assets such as factories, vehicles, and machinery that stay in the business almost permanently, or, more technically, for more than one accounting period. Fixed assets can be purchased and owned by a business, or they can be structured as a long-term lease.
Circulating capital: Circulating capital is money being used for core operations of a company. Circulating capital includes cash, operating expenses, raw materials, inventory in process, finished goods inventory, and accounts receivable. Circulating capital is frequently referred to as working capital or alternatively, revolving capital.
Capital owned: It is the money business owners (if it is a sole proprietorship or partnership) or shareholders (if it is a corporation) have invested in their businesses. In other words, it represents the portion of the total assets which have been funded by the owners/ shareholders money.
(i) Financial Planning; Financial management helps to determine the financial requirement of the business concern and leads to take financial planning of the concern. Financial planning is an important part of the business concern, which helps to promotion of an enterprise
(ii) Acquisition of Funds; Financial management involves the acquisition of required finance to the business concern. Acquiring needed funds play a major part of the financial management, which involve possible source of finance at minimum cost.
(iii) Proper Use of Funds; Proper use and allocation of funds leads to improve the operational efficiency of the business concern. When the finance manager uses the funds properly, they can reduce the cost of capital and increase the value of the firm.
(iv) Financial Decision; Financial management helps to take sound financial decision in the business concern. Financial decision will affect the entire business operation of the concern. Because there is a direct relationship with various department functions such as marketing, production personnel, etc.
[11/30, 4:07 PM] Olive: SECTION D
Method study is basically conducted to simplify the work or working methods and must go towards higher productivity. It is always desirable to perform the requisite function with desired goal minimum consumption of resources.
(i)Assist in employee’s selection: This is one of the major advantages provided by technique of job evaluation. It properly analyses the job specification in line with the competencies of candidates.
(ii) Specialization: Job evaluation assist in specialization of labor by organization. There are large number of job positions within an enterprise which requires many employees for performing them.
(iii) Prevents conflicts within organization: It resolves all conflicts within organization by paying peoples in a fair manner.
[11/30, 4:07 PM] Olive: (16a)
The managerial grid:- is a self-assessment tool by which individuals and organizations can help identify a manager’s or leader’s style. The grid was originally developed by Robert R. Blake and Jane S. Mouton in the 1960s and has evolved in subsequent decades.
A leader is expected to perform creative function of laying out goals and policies to persuade the subordinates to work with zeal and confidence.
The second function of a leader is to create and shape the organization on scientific lines by assigning roles appropriate to individual abilities with the view to make its various components to operate sensitively towards the achievement of enterprise goals.
A leader has to reconcile the interests of the individual members of the group with that of the organization. He has to ensure voluntary co-operation from the group in realizing the common objectives.
[11/30, 4:07 PM] Olive: (18a)
Planning is the specific process a construction manager uses to lay out how they will manage and execute a construction project, from design to building completion.
[11/30, 4:07 PM] Olive: SECTION A:
(i) Manpower Planning.
(iv) Training and Development.
Voidable contract is a formal agreement between two parties that may be rendered unenforceable for any number of legal reasons, which may include: Failure by one or both parties to disclose a material fact.
Management by Objectives (MBO):- is a strategic approach to enhance the performance of an organization. It is a process where the goals of the organization are defined and conveyed by the management to the members of the organization.