Business 2

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Sheet1 A

B (BRPSE)

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Board of Reconstruction of Public Sector Enterprises (BRPSE) was set up to a give strength the public sector enterprises. The main function of this Board (B consider reconstructing-financial, organizational and business-of central publi enterprises and suggest ways and means for funding such schemes. The Bo give advise the government on disinvestments/closure/sale for sick units also.

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2 (EOU), (EHTP), (BTP), (STP) the Export Oriented Unit (EOU) Scheme, Electronic Hardware Technology Pa Scheme, Software Technology Park (STP) Scheme or Bio-Technology Park (B scheme for manufacture of goods, including repair, re-making, reconditioning, engineering, and rendering of services. 3 (GDP)

Gross Domestic Product (GDP) deflator. Nominal GDP divided by real (consta GDP) multiplied by 100. Nominal GDP is the value of output measured in term prices prevailing in the accounting period in question. Real GDP is that output in terms of the prices prevailing in some base period. The value of the deflator base period is always 100.

4 (GNE)

Gross National Expenditure (GNE). The sum of all spending on consumption a investment plus government spending on goods and services and net exports exports minus imports). It is equivalent in value to GDP.

5 (IBRD) & (IDA)

The International Bank for Reconstruction and Development (IBRD)and the In Development Association (IDA)—provide low or no interest loans and grants t that have unfavorable or no access to international credit markets.

6 ADRs

American Depository Receipts (ADRs) are issued by a US bank as token of its foreign security on behalf of holders.

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7 Balance of payments accounts A record of all transactions involving a country's exports and imports of goods services, borrowing and lending.

7 8 Balance of trade

A record of a country's exports and imports of goods and services.

9 Base year

In calculating price indexes, values in the current year are compared to values arbitrarily chosen earlier or base year.

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9 10 Before policy 1991 licensing required for

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(a) Establishment of new undertaking, (b) Manufacture of new items (c) Subst expansion of capacity, (d) Continuation of business in certain cases (COB lice Change of location

11 BIFR

the Board of Industrial and financial Reconstruction (BIFR) BIFR have the res to decide whether a sick public sector unit could be restructured or whether it closed down.

12 BPCL

Bharat Petroleum Corporation Ltd. (BPCL)

13 Business environment

Business environment refers to all those internal and external factors which im functioning/performance of a firm and /or its decision making, particularly strat Although the scope of the term business environment includes in a broad sen internal and external factors impacting the business (i.e. internal and external environments) in its common usages it often refers to the external factors.

14 Business environment levels

Internal environment, Micro environment/task environment/operating environm Macro environment/general environment/remote environment

15 capabilities

The ability of affirm to accomplish its goal and to respond to competitor’s mov depends in its strengths and weakness.

16 Capital

Usually used in the "real" sense in economics to refer to machinery and equip structures and inventories, that is, produced goods for use in further productio Distinguished from "financial capital", meaning funds which are available to fin production or acquisition of real capital.

17 Capital account

That part of the balance of payments accounts which records a country's lend borrowing transactions.

18 Capital goods.

Unlike goods intended to be consumed, capital goods are used to produce oth Machinery in a factory would be an example of capital goods.

19 Capitalism

A system of economic organization characterized by the private ownership of of production, private property, and largely market-based control over the prod distribution of goods and services.

20 Central bank

An agency empowered by a government to manage a country's monetary and institutions, issue and maintain the domestic currency, and handle the official foreign exchange. Primarily a "bank for banks."

21 Command economy

In this system, most of the productive assets are owned and operated by the government.

22 Competition

In the general sense, a contest among sellers or buyers for control over the us productive resources. Sometimes used as a shorthand way of referring to per competition, a market condition in which no individual buyer or seller has any influence over price.

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23 Corp Bank

Corp Bank offers several Corporate Banking services. The Bank offers unique tailor-made for the requirement of Corporate & large business houses as well Medium Enterprises.

24 Corporation

A legal entity formed to conduct business and possessing certain privileges no to single proprietorships or partnerships, notably limited liability which confine shareholder's possible losses to the amount paid to purchase shares in the bu

25 CSO

Central statistical organization

26 Current strategy

A competitor’s strategy is most useful though of as its key operating policies in functional area of the business and how it seek to interrelate the function.

27 Development economics

A sub-discipline within economics specializing in the processes of long term g change, especially in the case of the less developed economies.

28 Disinvestment Commission

In August 1996 under the chairmanship of G. V. Ramakrishan the Disinvestme Commission was set up for drawing a long-term disinvestments programme fo PSUs.

29 Disposable income

The income a person or household has left to dispose of after income tax has deducted from personal income. Disposable income may either be spent on consumption or saved.

30 Dissaving

If individuals or households spend more than their current income they are sa dissaving.

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31 DUTY ENTITLEMENT The objective of DEPB is to neutralise the incidence of Customs duty on the im PASSBOOK SCHEME (DEPB) content of the export product. The neutralisation shall be provided by way of g duty credit against the export product. 32 Economic Growth

Economic Growth refers to the process of increase in real output over a period (Usually a year).

33 Economic System

An economic system provides the framework within an economy operates and various economic units and agents mould themselves to fit into the system.

34 EDRs, GDRs

European Depository Receipts (EDRs), Global Depository Receipts (GDRs) h emerged which are used to tap multiple foreign markets for equities with the h single instruments of dispository receipts.

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35 Entrepreneurship

The ability and willingness to undertake the organization and management of production. As well as making the usual business decisions, entrepreneurship associated with the functions of innovating and bearing risks.

36 EOU

Export oriented units

37 Equity

May be used in either of two unrelated senses. In the context of income distrib theory, refers to an objective, goal or principle implying "fairness". In a financia may refer to a share or portion of ownership

38 EU

Emergence of the European Union (EU) and introduction of Euro as common

39 Excess reserves

The difference between the amount of cash a bank wishes or is required to ho relation to its deposit liabilities and the amount it actually holds

40 Exchange rate

The price of one country's currency in terms of another's

41 External environment

External environment consists of a macro environment & micro environment

42 External environment factors

Micro (task/ operating) environment = customers, suppliers, competitors, publ Financiers, Marketing intermediaries; Macro (general / remote) Environment =economic factors, social/ cultural factors/ demographic factors/ political/govt. natural factors, technological factors, global factors.

43 FERA

Operation of foreign companies under the foreign Exchange Regulation Act (F 1973.

44 Fiat money

Fiat money. A type of money which has little or no intrinsic value in itself, but w decreed to be money by the government and is generally accepted in exchan Modern paper currencies are all fiat money, as are most coins in active circula

45 FIPB

Foreign Investment Promotion Board (FIPB) established to negotiate proposa large international firms and expedite clearances of the investment proposals;

46 Firms

Economic entities which buy or employ factors of production and organize the create goods and services for sale.

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47 Fiscal Policy

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Fiscal Policy is basically concerned with the use of taxes and government, tho issues relating to non-tax revenue, government borrowing and fiscal federalism closely associated with these factors for achieving pre-determined objectives.

48 Foreign Direct Investment FDI FDI is generally defined as “a form of long-term international capital movemen for the purpose of productive activity and accompanied by the intention of man control or participation in the management of a foreign firm.” 49 Foreign trade environmen

Foreign trade environment refers to the average state of conditions or circums which are dynamically changing and affect exporters and importers by influen export performance, import behaviour, competitiveness, cost conditions and e profitability. Foreign trade environment of a country is affected by world econo conditions.

50 GATT

The General Agreement on Tariffs and Trade (GATT), which was signed in 194 multilateral agreement regulating trade among about 150 countries. According preamble, the purpose of the GATT is the “substantial reduction of tariffs and o barriers and the elimination of preferences, on a reciprocal and mutually adva basis.”

51 GDP

GDP gets allocated in an economy by way of wages and salaries (to labour), i capital owners), rent (to land owners), profit (to entrepreneurs), indirect busine ( to government) and depreciation( to capital consumption).

52 Global environment

The Global environment refers to those factors which are relevant to business the WTO principles and agreements; others international conventions/treaties/agreements/declarations/protocols; economic and busine condition / sentiments in other countries etc.

53 Globalisation

Globalisation is a process of integrating economy of the country with the world economies. Globalisation means free movement of capital, goods, technolog and people

54 HPCL

Hindustan Petroleum Corporation Ltd. (HPCL)

55 Human capital

The stock of knowledge and acquired skills embodied in individuals

56 IDR Act

The industries (Development and Regulation) Act, 1951, amended from time t one of the weapons the government possess to regulate the development and the activities of the industrial sector.

57 IDRA Act.

The industries (development & regulation) Act 1951, empowers the central go to regulate the establishment and certain activities of the industrial undertakin means of licensing.. The licensing provision of the DRA may apply to industria undertaking set up by any person or authority including the government.

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58 IE

Industrial Estate (IE) Programme to encourage entrepreneurs to set up small and to expand existing units was started in the year 1955.

59 IFC, MIGA, ICSID

· International Finance Corporation (IFC) Multilateral Investment Guarante (MIGA)· International Centre for Settlement of Investment Disputes (ICSID)

60 IMF

International Monetary Fund (IMF)

61 India’s trade association

Confederation of Indian industry (CII), Federation of Indian Chambers of Com Industry (FICCI), Chambers of commerce and industry (ASSOCHAM) and fed Indian Exporters ‘ Organization (FIEO).

62 Indirect taxes

Taxes levied on a producer which the producer then passes on to the consum of the price of a good. Distinguished from direct taxes, such as sales taxes wh visible to the person who pays them.

63 Industrial license

A license contains particulars of the industrial undertaking its location the artic manufactured its capacity on the basis of the maximum utilization of plant and machinery and other appropriate conditions which are enforceable under the a also subject to a validity period with in which the licensed capacity should be established.

64 Industrial policy

The industrial policy indicated the respective role of the public, private, joint an cooperative sectors; small, medium and large scale industries and underlined national priorities and the economic development strategy.

65 Industrial Policy

Industrial Policy specifies the relative role of domestic and multinational enterp and small industries and public and private sector firms.

66 Industry

A group of firms producing similar products. Hence, the auto industry or the st industry.

67 Inferior good

A good for which the demand decreases when income increases. When a hou income goes up, it will buy a smaller quantity of such a good.

68 Inflation

A general rise in the average level of all prices.

69 Internal factors

Internal factors determine the potential of a company to meet the environment challenges.

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70 Internal factors

Vision, mission, objective, management structure and nature, internal power relationship, human resources, company image and brand equity, miscellaneo (physical assets, R & D, Financial factors).

71 Involuntary unemployment

Unemployment caused by a deficiency in aggregate demand.

72 Labour

The economically productive capabilities of humans, their physical and menta applied to the production of goods and services.

73 LAF

The recently introduced liquidity adjustment facility (LAF) provides a flexible a effective mechanism for injection of liquidity on a day-to-day basis thus smoot functioning of the call money market.

74 Laissez-faire economy

Laissez-faire economy in which the government plays little role in economic d making.

75 license

A license is a written permission from the government to an industrial underta manufacture specified articles included in the schedule to the Act. It a new com to be formed the industrial license in the first instance is issued in the name of applicant and later when the company has been formed , the necessary enclo to that effect will be made in the licence.

76 Lorenz curve

A curve showing the cumulative percentage of income plotted against the cum percentage of population.

77 Macro Environment

Macro Environment also known as General Environment and Remote environ refers to factors which affect business in general.

78 Macroeconomic Stability

It is manifested in the stability of the price level, exchange rate, interest rate, m supply, aggregate demand, balance of payments, employment rate, budgetary and eventually national income and output.

79 Macroeconomics

The branch of economic theory concerned with the economy as a whole. It de large aggregates such as total output, rather than with the behaviour of individ consumers and firms.

80 Market economy

It is an economic system in which the basic economic questions are left to the mechanisms for solutions.

81 Markets

Any coming together of buyers and sellers of produced goods and services or services of productive factors

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82 Micro environment

The micro environment is also known as the task environment and operating environment because the micro environment forces have a direct bearing on t operation of the firm.

83 Micro environment

The Micro environment consists of the actors in the company’s immediate env the affect the performance of the company. These include the suppliers, mark intermediaries, competitors, customers and the publics.

84 Minority goods

Goods which have a very low elasticity of supply. That is, even large increase price can call forth little, if any, additional supply, which means that only the ve can afford them. Large, secluded waterfront properties might be an example.

85 Mixed economy

In this system public and private sector playing important roles together & the government is both developmental and regulatory.

86 Monetary policy

It refers to the action of the government or the central bank of a country which directly or indirectly, supply of money, credit, rate of interest and the banking s

87 Money

Anything generally acceptable in exchange. Money serves a number of functio medium of exchange, it is used as a unit of account, and it can be used as a s value. In its latter use, it is an alternative to holding value in the form of goods types of financial assets such as stocks or bonds.

88 Monopoly

Strictly defined as a market situation in which there is a single supplier of a go service, but often used to suggest any situation in which a firm has considerab over market price.

89 Monopsonistic firm

A firm which is the sole buyer of a good or service, most likely of labour in a pa market.

90 MOU

One of the major initiatives of July 1991 Industrial policy towards the public se MOU (Memorandum-of-Understanding). This MOI envisages an arm’s length relationship between the PSUs and the administrative ministries

91 MRTP (ACT)

Monopolies and Restrictive Trade Practices (MRTP) Act was passed in 1969 a into force in 1970 (June 1) with the establishment of the MRTP Commission.

92 Multinational Corporations

A multinational corporation (MNC) or transnational corporation (TNC) or multin enterprise (MNE) or multinational organization (MNO) is a corporation/busines entity/enterprise that manages production establishments or delivers services two countries.

93 NAFTA

Increase in the number of free trade areas and custom union arrangements be countries notably North American Free Trade Area (NAFTA)

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94 National Income (NI)

GDP-D-T National income is obtained by deducting depreciation and busine from GDP, this is the income received by the owners and suppliers of land, lab capital in the form of rent wages, interest and profit.

95 Natural increase

Growth of the population due to an excess of births over deaths

96 Natural monopoly

A market situation in which economies of scale are such that a single firm of e size is able to supply the entire market demand.

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97 Natural rate of unemployment The rate of unemployment that would exist when the economy is operating at capacity. It would be equal to the amount of frictional unemployment in the sys

97 98 NDP

Net Domestic Product which is obtained by deducting depreciation from GDP.

99 Net investment

Total investment during some accounting period minus the amount of deprecia during the same period.

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99 100 Normal good

Any good for which the demand increases as incomes increase.

101 NRF

The government set up a National Renewal Fund (NRF). For the purpose to r redeploy retrenched labour and to provide compensation to public sector emp seeking voluntary retirement

102 NSSO

National sample survey organization (NSSO) under the CSO , government of defines the entire industry sector in terms of organized and non- organized se well as in terms of industrial enterprises run by household and non- household

103 Partnership

An unincorporated business owned by two or more people.

104 Per capita income

Total income divided by the size of the population.

105 Perfect competition

A market situation in which there are so many sellers (and buyers) that no one buyer) can exert any influence on the price. All participants in such markets ar takers".

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106 President of the World Bank,

Robert B. Zoellick,

107 Price

What must be paid to acquire the right to possess and use a good or service.

108 Private goods

A good which cannot be consumed without paying for it and the supply of whic reduced when it is consumed by a particular user of it.

109 privatisation

Privatization means transfer of ownership and /or management of an enterpris public sector to the private sector.

110 PRIVATISATION THROUGH DISINVESTMENT

For the purpose of privatization government has adopted the route of disinves means sale of public sector equity to the private sector and public ate large. Privatization for the government and instrument improving efficiency and prod PSUs.

111 Privatization

Privatization is a process implies the induction of private ownership in publicly enterprises or can say through this process by which government transfer the activity of PSUs to the private sector.

112 Privatization

The selling-off of publicly owned enterprises to private owners.

113 Profit

When a firm's revenues exceed its costs, profit is the difference between the t

114 public

A public is any group that has a actual potential interest in or impact on an org

115 Public goods

A good which can only be supplied to all if it is supplied to one and the availab which is not diminished by any one consumer's use of it.

116 Public interest

The notion that there is some kind of general interest of the community as a w can be affected by the actions of governments or private agents.

117 Public Sector

A Public Sector undertaking has dominant ownership management or the gov local authority or a government agency. Government plays a key role, directly indirectly in key functions like production, finance , marketing, distribution, pric investment etc.

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118 Public sectors rathans

BHEL (Bharat Heavy Electrical Ltd.), BPCL( Bharat Petroleum Corporation Ltd (Hindustan Petroleum Corporation Ltd.), IOC (Indian Oil Corporation Ltd.), IPC Petrochemicals Corporation Ltd.), ONGC ( Oil and Natural Gas Corpporation ( Steel Authority of India Ltd.), VSNL (Videsh Sanchar Nigam Ltd.), NTPC (Na Thermal Power Corporation Ltd.)., GAIL , MTNL, BEL (Bharat Electronics Ltd (Power Finance Corporation).

119 Quota

A limitation on the amount of a good that can be produced or offered for sale domestically or internationally

120 Resources

All those things which can be used to produce economic satisfaction

121 Saving

The act of abstaining from consumption. In terms of the national accounts, the between personal income less taxes and total consumption spending

122 Scarcity

The fact that human wants exceed the means of satisfying them.

123 Schedule

A table or list of values.

124 SDR

SDR (special drawing right),

125 Shareholder.

Owner of some fraction of the stock issued by a corporation.

126 SIDBI

Small Industries Development Bank of India (SIDBI) was established in April 1 an Act of Indian Parliament as a wholly-owned subsidiary of Industrial Develop Bank of India. SIDBI has since completed 8 years of service to the small scale at March 31, 1998, SIDBI had a total staff strength of 861 comprising of 685 professionals and 176 support staff.

127 SIDCs

State industrial development corporation encouraged the state governments with the development of industrial Estates/area through the SIDCs.

128 Sins/ pitfalls of privatisation

Lack of proper strategy, Connivance, wrong timing, lack of political consensus labour strategies, lack of political will, poor financial strategy, wrong environme prevalence of monopoly element, problem of cultural change etc.

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129 Social cost

The real cost to society of having a good or service produced, which may be g than the private costs incorporated by the producer in its market price.

130 Socialist market economy

In this system productive resources are owned by the estate but the resources production and distribution decision are based ion the principle of the market.

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130 131 Socialistic System

The socialist philosophy is reflected in the Preamble to the Constitution, which for social, economic and political justice and equality of status and opportunity

131 132 Special Economic Zones (SEZ)

Special Economic Zones (SEZ) are growth engines that can boost manufactu augment exports and generate employment

133 SSI

Small sector industries

134 Substitute goods

Goods which may be used in place of other goods.

135 Suppliers

Suppliers provide capital equipment inputs and raw material on a regular basi Suppliers relation are important for a firm.

136 Tariff

A tax imposed on an imported good.

137 Technology

Knowledge which permits or facilitates the transformation of resources into go services.

138 the business (STEP)

(The macro environment ) Social, Technological, Economical and Political

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139 The country’s premier research The Council of Scientific and Industrial Research (CSIR), institutions Indian Council of Agricultural Research (ICAR), Indian Council of Medical Research (ICMR), Department of Science and Technology (DST) 140 The new industrial policy

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The new industrial policy announced on July 24 1991

141 Tort

In law, a private or civil wrong.

142 Trade Policy

Basic objective of trade policy are to promote exports, regulate imports, impro of trade enhance export competitiveness and create conditions of export-led g

143 Unemployment

The non-utilization of labour resources; the condition in which members of the force are without jobs. Sometimes used more broadly to refer to the waste of r when the economy is operating at less than its full potential.

144 Value chain

The value chain display total value and consist of value activities and margin. activities are physically and technologically distinct activities a firm performs.

145 VISHESH KRISHI UPAJ YOJANA (SPECIAL AGRICULTURAL PRODUCE SCHEME)

VISHESH KRISHI UPAJ YOJANA (SPECIAL AGRICULTURAL PRODUCE SCHEME)The objective of the scheme is to promote export of fruits, vegetable flowers, minor forest produce, and their value added products, by incentivising of such products.

146 VSI

Very Small industries

147 Wages

The general term applied to the earnings of the factor of production, labour.

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147 148 Welfare State

A welfare state is continuously engaged in improving the average quality of life people and takes particular care of the weaker, marginal or vulnerable section society, which are prone to exploitation.

148 149 World Bank

The World Bank is a vital source of financial and technical assistance to devel countries around the world. made up of two unique development institutions : -International Bank for Reconstruction and Development (IBRD) ,International Development Association (IDA)

150 World bank Membership

Membership: 185 countries

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