1. What is Business Enterprise? Discuss various Forms of Business Enterprise?

The Business enterprise is a work organization especially created to produce goods and
services for the community. It produces goods for the market and consumers, that yield profits
for owners or dividends for share-holders.it generates services for employees in terms of jobs,
careers, incomes, perks and welfare.

The Theory of Business Enterprise is an analysis of two intertwined but clashing

motivations; that of business and that of industry. Business is the making of profits. Industry (or
the "machine process") is the making of goods. "The captains of industry" curtailed production in
order to keep prices and profits high. The worst fears of businessmen was a "free run of
production" which would essentially collapse all profits.

An Enterprise also produces by-products. Some of the important by-products produced by it are
revenue for the state, payable in the form of Various kinds of taxes; services for the community
such as employment promotion, skill formation, housing, medical care, transportations etc., and
power for the bosses of the enterprise which they may use to acquire personal status as well as
for distributing patronage or for influencing public policies or for social good.
5. Explain the concept of Benchmarking and discuss various types of Benchmarking.
-----Benchmarking Defined

Before more recent technology was invented, surveyors would chisel a horizontal mark in
a permanent structure, where a tool could be placed in the indention to help create a benchmark
with a level rod, helping them and future craftsmen to have a point of reference for building.

In the business world, companies use benchmarking as a point of reference as well. But instead
of having physical benchmarks carved in stone, they use benchmark reports as a way to compare
themselves to others in the industry. Benchmarking is the practice of a business comparing key
metrics of their operations to other similar companies.

You can also think of a benchmark report as a dashboard on a car. It is a way you can
quickly determine the health of the business. Much like a dashboard, where you can check your
speed, gas level, and temperature, a benchmark report can examine things like revenue,
expenses, production amounts, employee productivity, etc.

Benchmarking occurs across all types of companies, including private, public, nonprofit, and
for-profit, as well as industries e.g., technology, education, and manufacturing. Many companies
have positions or offices in the company that are in charge of benchmarking. Some of the
positions include:

Institutional researcher

Information officer

Data analyst

Consultant

Business analyst

Market researcher

Types of Benchmarking:-

Best practices - This is a benchmark report where companies choose to look at a

company or companies that they aspire to be like. By choosing companies that are on
the leading edge of the industry, they can identify best practices that help improve
their own company.
Peer benchmarking - This is a benchmark report where companies choose to look at
other businesses very similar to themselves. This allows companies to make sure they
are staying competitive with similar businesses.
 SWOT - This is a type of benchmarking report where companies gather data by
looking at strengths, weaknesses, opportunities, and threats to help understand their
climate.
Collaborative benchmarking - This is benchmarking as a part of a group. Many
industries have associations they can join e.g., The Association of Information
Technology Professionals, and The National Education Association. These
collaborative associations allow for members to provide information to the
association. The association can then provide benchmarking and best practice reports
for the membership.

Benchmarking Process

Step one: Determining benchmark focus - During this phase, the company determines the
specifics of the research project. (e.g., which companies will they include in the research
and what types of metrics they will compare).

Step two: Planning and research - During this phase, the company puts the resources
together to implement the project (e.g., develop surveys, seek cooperation from other
companies, and find databases already available).

Step three: Gathering data - During this phase, the data is collected through the
methodology determined in the planning and research phase.

Step four: Analysis - After gathering the data, the company uses statistical techniques to
examine and create the findings.

Step five: Recommendations - After analyzing the data and areas where the company can
improve, recommendations are developed.

Step six: Implementation - After reviewing recommendations, the company implements

those that are feasible.
6. Write short notes on
a. Formal Communication

b. Multinational Corporations (MNCs)

a. Formal Communication:

Formal communication refers to interchange of information officially. The flow of

communication is controlled and is a deliberate effort. This makes it possible for the information
to reach the desired place without any hindrance, at a little cost and in a proper way. This is also
known as Through Proper Channel Communication.

Characteristics:

(1) Written and Oral:

Formal communication can both be written and oral. Daily works are handled through oral
communication, while the policy matters require written communication.

(2) Formal Relations:

This communication is adopted among those employees where formal relations have been
established by the organisation. The sender and the receiver have some sort of organisational
relations.

(3) Prescribed Path:

The communication has to pass through a definite channel while moving from one person to
another. For example, to convey the feelings of a worker to the manager, the foremans help has
to be sought.

(4) Organisational Message:

This channel is concerned with the authorised organisational messages only and the personal
messages are out of its jurisdiction.

(5) Deliberate Effort:

This channel of communication is not established automatically but effort has to be made for its
creation. It is decided keeping in view the objectives of the organisation.
Types of Formal Communication

Formal communication is of two types:

(1) Vertical Communication:

(2) Horizontal Communication.

(1) Vertical Communication

Vertical communication is of the following two types:

(i) Downward Communication:

The communication by top hierarchy with their subordinates is called downward communication.
This communication includes orders, rules, information, policies, instructions, etc. The chief
advantage of the downward communication is that the subordinates get useful timely information
which helps them in their work performance,

(ii) Upward Communication:

This is quite the reverse of the downward communication. This flows from the subordinates to
the superiors. The subject-matter of this communication includes suggestions, reactions, reports,
complaints, etc. This sort of communication helps the superiors in taking decisions.

(2) Horizontal Communication

Horizontal communication takes place when two individuals of the same level exchange
information. Horizontal communication is used by the same level officers to solve the problems
of similar nature and profit by the experience of other people. The subject-matter of horizontal
communication includes information, requests, suggestions, mutual problems and coordination-
related information.
b. Multinational Corporations (MNCs)

Multinational Corporations

A multinational corporation (MNC) has facilities and other assets in at least one country
other than its home country. Such companies have offices and/or factories in different countries
and usually have a centralized head office where they coordinate global management. Very large
multinationals have budgets that exceed those of many small countries.

An enterprise operating in several countries but managed from one (home) country. Generally,
any company or group that derives a quarter of its revenue from operations outside of its home
country is considered a multinational corporation.

There are four categories of multinational corporations:

(1) a multinational, decentralized corporation with strong home country presence,

(2) a global, centralized corporation that acquires cost advantage through centralized production
wherever cheaper resources are available,

(3) an international company that builds on the parent corporation's technology or R&D, or

(4) a transnational enterprise that combines the previous three approaches.

The two main characteristics of MNCs are their large size and the fact that their worldwide
activities are centrally controlled by the parent companies.

Importing and exporting goods and services

Making significant investments in a foreign country
Buying and selling licenses in foreign markets
Engaging in contract manufacturingpermitting a local manufacturer in a foreign country to
produce their products
Opening manufacturing facilities or assembly operations in foreign countries