Business Studies 4 Marks Question

b) The Board of Director decides to set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour

c) The company for meeting its long term and short term needs should opted for equity source of fund and by loans from bank

d) Values promoted by the company are as follows :

1. Balance Regional Development: The company set up its first unit in hilly area of Himachal Pradesh, thereby helping development of the region

2. Motivation to employees: The company by providing educational and health needs of its employees and their family members , motivates the employees

3. Generation of employment: The company set up its first unit in hilly area of Himachal Pradesh because of cheap price of land and labour , thereby increasing the employment opportunity

4. Upliftment of rural area: The company has earned marked15% of its profit for Educational and Health needs of its employees and their family members of hilly region which in turn improves the standard of living and achieves upliftment of the rural area

b) It is a small scale industry

c) In the case of enterprises engaged in the manufacture or production of goods pertaining to any industries specified in the first schedule to the Industries (Development and Regulation) Act, 1951, Small enterprise: investment in plant and machinery is more than twenty-five lakh rupees but does not exceed five crore rupees

d)Values followed by the company are as follows :

1. Employment generation: The company opted for labour intensive technique due to easy availability of labour and to provide employment to local people

2. Balanced Regional Development: The company set up food and beverages processing plant in the rural area of Haryana thereby helping in balanced regional development

3. Concern for society: The company opted for labour intensive technique thereby showing concern towards the society

1. Acts as the focal point of industrialistion of the district.
2. Identifies projects for setting up of SSI units.
3. Issues permanent registration certificate to SSI units.
4. Provides marketing support to SSI units.
5. Acts as a link between the entrepreneurs and the lead bank of the district.
6. Helps businessman in obtaining licence from electricity board, water supply board, etc.

1. Intellectual Property (IP) systems can be critical in helping new ventures transform their innovation potential and creativity into market value and competitiveness.
2. Intellectual Property rights (IPR) allow innovative e innovative entrepreneurs to protect their inventions.
3. They may also have multiple other functions, such as signaling current and prospective value to investors, competitors and partners, accessing knowledge markets and networks, and preventing rivals from patenting related inventions.
4. Evidence at the firm level indicates a positive correlation between patenting and new ventures' growth, access to venture capital and survival. Data shows a huge upsurge in patent applications in the last decade, with a strong variation in the share of young patenting firms across countries.
5. Effective IP systems can facilitate access to finance and the development of markets for technology, both of which help innovative entrepreneurship.
6. Such systems also provide incentives to invest in R&D and innovation, and can encourage technology co-operation with firms, universities and PRIS.

1. The economic purpose is to stimulate and ensure fair competition and to protect consumers, by enabling them to make informed choices between various goods and services. The protection may last indefinitely, provided the sign in question continues to be distinctive.
2. Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets.
3. The social purpose is to provide protection for the results of investment in the development of new technology, thus giving the incentive and means to finance research and development activities.
4. A functioning intellectual property regime should also facilitate the transfer of technology in the form of foreign direct investment, joint ventures and licensing. While the basic social objectives of intellectual property protection are as outlined above, it should also be noted that the exclusive rights given are generally subject to a number of limitations and exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right holders and of users.

1. To create more employment opportunities with less investment.
2. To remove economic backwardness of rural and less developed regions of the economy.
3. To reduce regional imbalances.
4. To mobilize and ensure optimum utilization of unexploited resources of the country.
5. To improve standard of living of people.
6. To ensure equitable distribution of income and wealth.
7. To solve unemployment problem.
8. To attain self-reliance.
9. To adopt latest technology aimed at producing better quality products at lower costs.

1. While small-scale industries are mainly located in urban centres as separate establishments, the cottage industries are generally associated with agriculture and provide subsidiary employment in rural areas.
2. While small-scale industries produce goods with mechanised equipment employing outside labour, the cottage industries involve operations mostly by hand which are carried on primarily with the help of the members of the family.

• These are organised by individuals, with private resources;
• Normally use family labour and locally available talent
• The equipment used is simple
• Capital investment is small
• Produce simple products, normally in their own premises
• Production of goods using indigenous technology.

1. Large scale business houses are unwilling to invest in these areas. It leads to lack of employment opportunities in these areas.
2. There is disguised and seasonal unemployment in rural areas. This type of unemployment can best be tackled by developing small scale and village industries.
3. It is the duty of the government to ensure balanced development in all corners of the country.
4. It can help to make these areas developed and bring them at par with other areas of the country.

1. Growth poles for the informal sector in the form of clusters, in order to get external economic aid.
2. Potential for public private partnership in imparting the skills required by the informal sector.
3. Provision of micro finance and related services to the informal sector.
4. Providing social security to the workers in the informal sector.

1. Facilities for testing, toolmenting, training for entrepreneurship development.
2. Preparation of project and product profiles.
3. Technical and managerial consultancy.
4. Assistance for exports.
5. Pollution and energy audits.