Business Studies Test - 31

A (Centralisation) is when decision-making is retained by top management, resulting in more control and less autonomy at lower levels.

B (Decentralisation) involves distributing decision-making authority across lower levels, promoting flexibility.

C (Functional structure) groups tasks based on similar functions such as marketing, production, etc.

D (Divisional structure) organizes tasks based on products, services, or geographical areas.

Changes in fashions and tastes of consumers will shift the market demand from existing product to new ones because the demands of people changed, so they don't want to buy old-fashioned products. They were fascinated by new modern products. Now, they buy new-fashioned products which has good quality and price than other products.

Legal environment is the environment which is governed by the legal system of the country. The laws which are passed by the government for business operation is called legal environment. Non-implementation of legal policies results in heavy fines, penalties & punishment &therefore every organization must follow all these regulations.
So in this case cigarettes carrying the statutory warning is an implementation made by the government which has to be followed which makes it the factor of legal environment.

Enacted in 1986, this Consumer Protection Act protects the interests of consumers in India against deficiencies and defects in goods or services. It makes provision for the establishment of consumer councils and other authorities for the easier and quicker settlement of consumers' disputes and related matters.

Business Environment can be defined as ‘’the forces, factors and institutions with which the businessman has to deal with to achieve its objectives’’. In general words we can say business environment is surroundings in which business exists. Environment Scanning: Complete awareness and understanding of business environment is known as environment scanning.

All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.

Privatization means conversion of public sector enterprises into private ownership by selling the shares of the company to private person or an organization, which means the shares cannot be sold to the public.

As the control and management transferred to private ownership, the role of public sector is reduced.

Uncertainty of future is risk in the investment. There is no clue that when the government policies will change and what it will do the rate of return for the long-term investors. Hence, there is always a fear of political uncertainties.

Because increase in competition in the market will give more choices to the consumer to consume whichever goods they want, resulting in decrease of fixed customers for a particular product line.

• A (Consumer Rights): Involves protecting consumers from unsafe goods or services that could harm them.
• B (Right to Seek Redressal): Consumers have the right to seek a remedy if a product or service does not meet expectations.
• C (Right to Information): Consumers have the right to access complete information about products to make informed decisions.
• D (Right to Consumer Education): Consumers should be educated about their rights and responsibilities to protect their interests effectively.