Business Environment Test - 45

Forecasting refers to the technique of gathering information regarding the future well in advance and making use of it in preparing a planning premises for the business which helps the management to take various decisions regarding the business matters. The correct steps of forecasting is 

Environment scanning can be defined as the process by which organisations monitor their relevant environment to identify opportunities and threats affecting their business. The environment scanning is applied to both external as well as internal scanning process as business environment includes both external as well as internal environment in which the business is practiced. Therefore, government analysis is not a type of business environment scanning. 

According to the Companies Act 1956, the financial year of a company can be more or less than a calendar year which is 12 months but it cannot exceed 15 months in order to make the accounts compact and comprehensive. 

Investors face problems to enter in emerging market countries when there are lots of barriers. These barriers can include tax laws, foreign investment restrictions, legal issues and accounting regulations that can make it difficult or impossible to gain access to the nation. The economic liberalization process begins by relaxing these obstacles and relinquishing some control over the direction of the economy to the private sector. This often involves some form of deregulation and a privatization of corporations. Major goals of economic liberalization are the free flow of capital between countries and the effectual allocation of resources and competitive advantages. This is generally done by decreasing protectionist strategies such as tariffs, trade laws and other trade barriers. One of the main effects of this improved flow of capital into the country is that it makes it inexpensive for companies to access capital from investors. A lower cost of capital enables companies to undertake lucrative projects that they may not have been able to with a higher cost of capital pre-liberalization, leading to higher growth rates.

Liberalization means relaxation of various government restrictions in the areas of social and economic policies. Liberalizing trade policy by the government that is removal of tariff, subsidies and other restrictions on the flow of goods and services between countries is also termed as liberalization. 

Core investment companies are non-banking financial companies (NBFCs) holding not less than 90% of their net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies. Core Investment CompaniesCore Investment Companies (CICs) are a specialized Non-Banking Financial Companies (NBFCs).A Core Investment Company registered with the RBI has an asset size of above Rs 100 crore.Their main business is acquisition of shares and securities with certain conditions.

 

Raising income is not an example of socio-cultural environment.