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SESSION AUG 2022
PROGRAM BACHELOR OF COMMERCE (B.COM.)
SEMESTER I
COURSE CODE & NAME DCM1104 –BUSINESS ORGANISATION
Assignment Set – 1
1. “Firms which systematically analyze and diagnose the environment are more effective
than those which don’t.” Elucidate.
Ans: No business enterprise functions in a vaccum. It is a product of business ecology i.e.,
business environment. Nature, location, product/service, size, volume price, policies and
decisions of the business enterprise are influenced by the business environment.
A business units decisions and performance are influenced by a wide variety of factors,
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2. Business risk is the possibility of occurrence of losses or insufficient profits because of
various unexpected events which cannot be controlled by business. Explain its types and
causes.
Ans: 1. Internal business risk: It is associated with the operational efficiency of the firm.
The operational efficiency of the operation is reflected on the company’s achievement of its
preset goals and the fulfilment of the promises to its investors. The following are the key
internal factors creating
3. Discuss the preliminary considerations which a businessman should keep in mind
while selecting a form of business organisation.
Ans: Selection of an appropriate form of business organisation on the basis of possession and
administration is one of the important responsibilities of the entrepreneur. You must have
noticed that no particular form of business organisation can meet all kinds of our
requirements. Some may require more financial and managerial resources while others
Assignment Set – 2
4. Elaborate the procedure for formation of a company.
Ans: The whole process of formation of a company may be divided, for convenience,
into three parts. These are:
(i) Promotion;
(ii) Registration and
(iii) Floatation.
2. If a public company having share capital has not issued a prospectus, then it shall not
commence business or exercise its borrowing powers unless:
a) It has filed with the Registrar a statement in lieu of prospectus;
b) Every director of the company has paid to the company on each of the shares taken or
contracted to be taken by him and for
5. Mr. Udit conceived an idea to start a company. He consulted a Company secretary to
get the details. Company secretary helped list down Mr. Udit’s duties and liabilities in
the process of promoting the company. Explain the key duties and liabilities of Mr.
Udit.
Ans: Duties of promoters:-
The key duties of the promoters are:-
1. The promoters must not make any secret profit out of the property of the company.
For example, making profits from sale of the property without disclosing them to the
company and its members will be bound to refund the same to the company.
2. The promoters must make full disclosure of all relevant facts to the company including any
b) Federation of Indian Chambers of Commerce and Industry (FICCI)
Ans: FICCI is the leading and oldest summit business association in India, recognized in
1927. Through its 400 professionals, FICCI has spread its wings in 39 sectors of the
economy. FICCI’s has a dedicated think-tank on policy issues consisting of people from the
business, government and academic world. Its publications are extensively read for their in