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Demand refers to various quantities of a commodity that the consumer is ready to buy at different possible prices of that commodity. 

Quantity demanded refers to a specific quantity to be purchased against a specific price of the commodity.

No. Elasticity of demand is always measured as a percentage change in quantity demanded in response to a percentage change in price. 

It is a relationship between inputs used and output produced by the firm . Various combinations of inputs.

Demand is the quantity of a good that that the consumer is willing to buy at a price at a time. 

1. Price of related goods, income and tastes of the consumer are the determinants of demand. 

2. Law of demand states that other things remaining same, as the price of commodity increases, the quantity demanded by a consumer falls and vice-versa. 

3. Demand curve slopes downwards because of operation of diminishing marginal utility, income effect and substitution effect. 

4. Exceptions to the law of demand – conspicuous consumption, Giffen goods, Necessary goods, Expectations of future change in price. 

5. Change in quantity demanded or Movement along the demand curve- whenever there is a change in the price of commodity, the quantity demanded of the commodity changes, other things remaining constant. . 

6. Increase and decrease of demand: when demand changes not due to price but due to other factors like income, tastes & preferences then it is termed as change in demand.

Following are the determinant of demand.

(i) Income of the consumer : The effect of change in Income on the demand depends on the Nature of commodity. 

Normal Goods: If Income Increases the demand for normal goods Increases. ... 

Inferior goods : Their demand falls with an increase in the income.

(ii) Prices of related goods: 

Substitute goods: There is a direct (positive) relationship between the price of a good and demand of its substitute goods. If the price of coffee increases, its demand will fall and people will start consuming its substitute-tea.  

Complementary goods : There is a negative or inverse relationship between the price and demand of complementary goods. If the price of sugar increases, demand for tea will decrease. 

(iii) Tastes - If there is a favorable change in taste, demand will increase and the demand curve shifts rightwards and vice-versa. 

(iv) Expectations: If the expectation is for the prices to rise in future, then there is increase in demand and if the expectation is for the prices to fall in future then there is fall in demand.

(a)

E_P = ∆Q/∆P X P/ Q 

= 1/1 x 4/5 = 0.8

(b)

E_P = ∆Q/∆P X P/Q

= 1/ 1 x 3/5 = 0.6

Demand for good A is more elastic than that of good B.

Yes. A consumer attains his equilibrium when MU_x/P_x =MU_M, in case of single commodity.

Management as a science.

If MUx/Px > MUy/Py, then it means that satisfaction of the consumer derives from spending a rupee on Good X greater than the satisfaction derived from spending a rupee on Good Y.

The consumer will reallocate his income by substituting Good X for Good y. As the consumption of Good X increases the marginal utility derived from it goes on diminishing and reverse proposition occurs for Good  y, this process will continue till MUx/Px becomes equal to MUy/Py.

Management is an Art.

Management is an art it has the following features:

(i) Existence of the theoretical knowledge: As in art in management too, there is a lot of literature available in various areas of management which the manager has to specialise in.

(ii) Personalised application: Like in any art, in management too, a manager applies his acquired knowledge in a personalised and unique manner. This gives rise to different style of management.

(iii) Based on practice and creativity: Management satisfies this criteria as a manager gains experience through regular practice and becomes more effective.

Top Level management

(i) If MUx/Px > MUy/Py, then it means that satisfaction of Mr. Aman derived from spending a rupee on good X is greater than the satisfaction derived from spending a rupee on good Y.

Mr. Aman will reallocate his income by substituting good X for good Y As the consumption of good X increases, the marginal utility derived from it goes on diminishing and reverse proposition occurs for good Y, this process will continue till MUy/Py.

(ii) If Py falls, MUx/Px<  MUy/Py, then it means that satisfaction derived from spending a rupee on good X is lesser than the satisfaction derived from spending a rupee on good Y.

Mr. Aman will reallocate his income by substituting good Y for good X. As the consumption od Good Y increase, the marginal utility derived from it goes on diminishing and reverse proposition occurs for good X, this process will continue till MUx/Px becomes equal to  MUy/Py.

Cooperative oligopoly is a form of the market in which there are few firms in the market and all decide to avoid competition through a formal agreement. They collide to form a cartel, and fix for themselves output quota and market price. Non-cooperative oligopoly is a form of the market in which there are few firms in the market and each firm pursues its price and output policy independent of the rival firms. Each firm tries to increase its market share through competition.

When firms in oligopoly; produce homogenous products it is called perfect oligopoly, whereas when firms produce differentiated products it is called imperfect oligopoly.

Detailed Answer:

Perfect Oligopoly: If the firm produces homogeneous product, then it is called perfect oligopoly.

eg. : Cement, Steel, producing industries, etc.

Imperfect Oligopoly: If the firm produces differentiated product, then it is called imperfect oligopoly.

eg. : Cars, soft drinks, etc.

(i) The market in the question is ‘Oligopoly’

Explanation of anyone Feature, say Price Rigidity. Price rigidity is the tendency of oligopolistic firms to stick to the ongoing price of the product, with a view to avoiding any sort of price war.

                      Or

(ii) Indeterminateness of Demand Curve: In an Oligopoly form of market no single firm can predict its prospective sales with perfection. This is because any given change in the price/output decision by a rival firm would initiate a series of action, reactions and counter, actions by other. Therefore, there is no certain nature and position of demand curve under this form of market for a firm.

Lower level management.

At middle level management.

Differential Piece Wage System:

(i) Taylor wanted to differentiate between efficient and inefficient workers.

(ii) He wanted to reward efficient workers and introduced two rates of wage payment for those who performed equivalent to or above standard and for those who performed below standard.

(iii) The difference in the wage was enough for the inefficient worker to be motivated to perform better.

e.g., Standard output (per worker per day) = 10 units

Wage rate I = Rs.2 per unit (for output < 10 units)

Wage rate II = Rs.3 per unit (for output > 10 units)

Difference in units produced= 2

Difference in wages = Rs.15

Top level management.

(a) Social Objective 

(b) (i) Organizational objective and personal Objective 

(c) Growth for all and harmony among the employees of the organization 

(d) (i) Waste Management 

 (ii) Responsibility towards disadvantaged sections of the society

1. Top Level Management.

2. Top Level management.

3. Middle Level Management.

(a) Lower level management 

(b) Top level management.

(a) Harmony not discord which advocated that there should be complete harmony between management and the workers. To achieve this, Taylor called for a complete mental revolution on the part of both management and workers.

(b) Values which the company wants to communicate to the society are:

(i) Sensitivity towards the environment

(ii) Good behavior in human interaction.

Correct option is (b) Unity of direction

The principle of Taylor described in the above para is Co-operation, not Individualism.

It sates that there should be complete co-operation between the labour and the management. Competition should be replaced by co-operation.

Value which the company wants to communicate to the society are:

(a) Good behaviour in human interaction.

(b) Concern for the environment.

The principles of management increase the efficiency of the managers and enable them to fulfil their social responsibility.

Mental revolution involves a change in the attitude of workers and management towards one another from competition to cooperation. Both should realise that they require one another.

It refers to the change in the attitude of management and workers towards one another from competition to cooperation.

Correct option is (c) Both management and workers require each other.

Taylor emphasized that there should be complete transformation in the thinking / attitude of management and workers towards each other. Managers should share surplus with workers and the workers should work with full devotion.

1. 1526 CE

2. Daulatkhan Lodi

Correct option is (A) Preference shares

i. Board of Directors

ii. Board Meeting

iii. 7 days

i. Board of Directors

ii. Company Secretary

iii. Board Meeting

iv. Notice of Board Meeting

Following are the circumstances when a company secretary corresponds with a Director:

• Sending Notice and Agenda of routine Board Meeting.
• Requesting a director to disclose his interest in a particular contract.
• Forwarding the minutes of the meeting to the directors who were absent from the meeting.
• Intimation to the director about the provisions regarding absenteeism at board meetings.

The notice of the Board meeting is a document that is sent to all directors of the company. All types of companies are required to give notice of at least 7 days along with agenda before the actual day of the meeting. Notice of Board meetings is generally sent by hand delivery or by post or by electronic means.

The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.

Directors are elected representatives of shareholders. Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set. They have to exercise proper control, direction, and supervision. Directors exercise their powers and authorities collectively as a “Board”.

Business letters to directors must be brief and to the point. Unnecessary details, irrelevant matters must not be written, conciseness refers to ‘briefness’. It is said that ‘brevity is the soul of correspondence’.

• The Directors occupy a very important position in the company’s management.
• They are elected representatives of the shareholders.
• Directors are responsible for decision making, policy framing, and determination of plans for achieving the target set.
• They have to exercise proper control, direction, and supervision.
• Directors exercise their powers and authorities collectively as a “Board”.

Following are the points or precautions to be taken by the secretary while corresponding with Directors.

• Initiative: The secretary must take utmost care while corresponding with directors. He should take the lead to make arrangements for the board meetings. Secretary also helps the directors in conducting meetings.
• Accuracy: In correspondence with directors “accuracy” or perfectness is very much important. Whatever information, action, data, or reply is to be given, must be given accurately. Secretary should provide correct, accurate, and perfect information.
• Promptness: Every letter must be dealt with promptly, whatever might be the subject matter. Prompt replies always create a good impression about your organization, delays in correspondence may prove to be costly in a later stage.
• Brevity: The letter acts as a representative of the organization. Hence, the secretary should always provide all information in a compact manner. A letter should not be lengthy. Secretary should provide maximum information in minimum words.
• Politeness: In correspondence with directors simple and words and language must be used. Unnecessary use of big terms, long sentences should be avoided. Secretary should not use any harsh words.

i. Director is an elected representative of the shareholders.

ii. Director is responsible for the decision making and framing policies of a company.

While corresponding with Directors, simple words and language must be used. A letter must show empathy, respect, and mutual understanding. It helps to create goodwill. Unnecessary big terms, long sentences should be avoided. Secretary should not use any harsh words while corresponding with directors.

Payment and withdrawal facilities:

• A bank provides easy payment and withdrawal facility to its customers.
• The various facilities are cheque, withdrawal slips and drafts, pay order, ATM Facilities (Automatic Teller Machine), internet banking, debit card and credit card.

Correct Answer is: (b) Karta

Henry Fayol divided administrative principles of Industrial Unit in six parts for ease and clarification :

• Technical activities,
• Commercial activities,
• Financial activities,
• Safety activities,
• Accounting activities and
• Management activity.

Henry Fayol presented fourteen important principles of management based on his experience and knowledge; which have proved to be very useful in the field of management. The principles are as under:

• Principle of Division of Work
• Principle of Authority and Responsibility
• Principle of Discipline
• Principle of Unity of Command
• Principle of Unity of Direction,
• Sub-ordination of Individual interest to General interest
• Principle of Proper Remuneration to Personnel
• Principle of Centralization,
• Principle of Scalar Chain of Power,
• Principle of Order
• Principle of Equality,
• Principle of Stability of Personnel Tenure,
• Principle of Initiative
• ‘Espirit de Corps’ (Feeling of oneness).

Contribution of Peter F. Drucker in the Field of Management: Peter F. Drucker give special importance to Human Asset in business unit. In his main contribution ‘Management by Objective’ and ‘Principle of Self-regulation’ are main. He contributed mainly for Human Resource Management, Market Management and Stress Management. Hence, he is called Father of Modern Management.

(i) (b) servant

(ii) (b) representative of shareholders

(iii) (a) Articles of Association

Correct option is (B) Micro finance facility

A charter party is a formal agreement between ship owner and the exporter under which exporter hires an entire ship or a major part of ship either for a particular voyage or for a specific time period when the shipping is heavy. The hiring of ship for specific voyage is called voyage charter while this hiring of entire ship for a specific time period is called time charter.