Advertisements
Advertisements
Question
The government of India announced Demonetization of 500 and 1,000 currency notes with effect from the midnight of November 8, 2016. As a result, the existing 500 and 1,000 currency notes ceased to be legal tender from that date. New currency notes of the denomination of 500 and 2,000 were issued by Reserve Bank of India after the announcement.
This step resulted in a substantial increase in the awareness about and use of Point of Sale achines, e-wallets, digital cash and other modes of cashless transactions. Also, increased transparency in monetary transactions and disclosure led to a rise in government revenue in the form of tax collection.
a. Enumerate the dimensions of business environment highlighted above.
b. State the features of Demonetization.
Solution
a. The above case explains the economic environment of the business. The economic environment of the business refers to the changes in the system due to the economic policies made by the government. The Reserve Bank of India is an important regulator of the country's economic development.
b. Demonetisation refers to the withdrawal of the status of legal tender to the currency in circulation.
The features of demonetization are:
a. Demonetisation aimed at eliminating the stock of black money in the economy. Black money is unaccounted money. The people had to declare their unaccounted money and pay the tax as a penalty.
b. Since black money is there a root cause of bribery. This social evil was targeted to be removed from the foundation itself.
c. It also aimed at eliminating the counterfeit money. This type of money destabilizes the economy and increases the money in circulation leading to inflation.
d. It also targeted at keeping a check on the money laundering which refers to the hidden transfer of funds across the country.
e. It was expected to promote digital transactions in the economy. Fire the level of digital transactions means lower the level of cash transactions. It would shift the economy from a cash economy to a cashless economy
APPEARS IN
RELATED QUESTIONS
A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a science student of Progressive School to take a loan from State Bank of India to experiment and develop cars to be powered by fuel produced from garbage. He developed such a car and exhibited it in the Science Fair organised by Directorate of Education. He was awarded first prize for his invention.
Identify and explain the dimensions of business environment discussed in the above case.
How would you characterize business environment? Explain with examples, the difference between general and specific environment.
How would you argue that the success of a business enterprise is significantly influenced by its environment?
Explain, with examples, the various dimensions of business environment.
What is the social environment? Enumerate any three components of the social environment.
Enumerate the components of the macro environment of a business concern.
Answer the following question.
Mahinder Agro Ltd. started a new venture for the distribution of harmful and chemical fertilizers free vegetables. They conducted a survey to find out consumer preferences for such vegetables. They found that most of the consumers were concerned about the harmful chemicals being used in growing the vegetables. They found that 90% of the households were searching for its alternatives. The company contacted a group of agriculture experts to lay down the procedure for growing the vegetables by the farmers. They decided to train the farmers in new technology to grow chemical-free vegetables according to new innovative methods. The experts also suggested soil management techniques through which farmers would be able to create an abundant and lasting harvest.
Identify and explain the two dimensions of the business environment highlighted in the above para.
Celebration of Diwali is the example of ________.
The trend of health and fitness has created a demand for products like gyms, bottled mineral water, and food supplements, etc., these are the example of ________.
Which of the following is an example of social environment?
With the introduction of Photostat Machines in the market, the carbon paper industry was adversely affected. Which component of environment was responsible for it?
“The nature of the relationship of our country with foreign countries”, is a major element of which of the following components of the Business Environment?
India has launched its most advanced Geo-imaging satellite which will allow better monitoring of the subcontinent, including its borders with neighbouring countries, by imaging the country 4-5 times a day. The satellite is capable of near real time monitoring of floods and cyclones. The factor constituting the Business Environment being discussed above is ______.
Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as subsidies and low long term interest rates, for films with patriotic and certain other themes shot in J&K, for giving work opportunities to local artists, etc. This will have an impact on business enterprises in the state. Which component of business environment is highlighted above?
Alo a mobility platform is in the process of laying off 400-500 employees in a move aimed at driving cost efficiency. Which objective of management will the firm not be able to achieve by carrying out this process.
With a revolution taking place in the manufacturing of mobile phones with super class cameras, the business of cameras in the consumer market has taken a hit. Studies show that mobile phone photography has devastated the camera industry.
The dimension of business environment highlighted in the above case is:
With the presence of women in the workforce, there has been a shift towards formal wear, increased demand of electronic gadgets and increase in demand of cosmetics.
The related dimension of business environment referred in the above lines is ______.
What is meant by technological environment?
Criya Automobiles Ltd. plans to increase its production services in India, hence they want to analyse the economic environment of the business. Which one of the following factors should the company focus on?
