Q.1 Name two elements of internal environment affecting business.

The internal factors basically include the inner strengths and weaknesses. Internal factors can
affect how a company meets its objectives. Strengths have a favorable impact on a business.
Weaknesses have a harmful effect on the firm. Below, I have mentioned the most common
internal factors.
Organizational and operational
These are a part of the operational and administrative procedures. This includes
disorganized or inaccurate recordkeeping. Interruptions to your supply chain and outdated
or faulty IT systems are also factors you should evaluate .If you do not overcome these, your
customers might see you as unreliable. You can also lose all your data.
Innovation
Your business needs innovation in order to keep up with competitors. It is essential to get one step
ahead. Innovation could come in the form of marketing. It could also be through promotional
initiatives in the marketing plan, staff training, and welfare. Embracing new technology is the
best way to keep up with technological advancements. A lack of innovation can pose a serious
risk to a growing business. No innovation will cause a company to remain boring. The company
will become dull, stagnant and irrelevant

.Q.2 What is multi national enterprise?

A multi national corporation or worldwide enterprise is an organization that owns or
controls production of goods or services in one or more countries other than their home
country. It can also be referred as an international corporation, a "transnational corporation", or a
stateless corporation

Q3. Give two suggestions to the problems of small scale industries.

Two problems faced by small scale industries along with remedies are:
Lack of finance

They run short of funds for both short term and long term needs. At times, the funds
provided by financial enterprises are not enough. This results in these industries
having depend on private financiers who offer the sum for a hefty interest rate. As a
remedial measure, an integrated credit system can be established through they can be
given enough finance to meet both short and long term requirements. The interest rate
for these funds should also be such that it can be borne by the industry.

Raw material allocation

Often small-scale industries are neglected and they are not allocated enough materials
to meet the requirement. Alternatively, they are provided low quality raw materials
for a high price. A solution to this would be giving such enterprises equal priority as
their large-scale counterparts and provide them with good quality raw materials,
machinery and other raw materials required.

Q4 Define privatization.

The transfer of ownership, property or business from the government to the private sector is termed privatization.
The government ceases to be the owner of the entity or business.

The process in which a publicly-traded company is taken over by a few people is also called privatization. The
stock of the company is no longer traded in the stock market and the general public is barred from holding stake
in such a company. The company gives up the name 'limited' and starts using 'private limited' in its last name. .

Q5 What do you understand by fiscal policy?

Fiscal policy is the means by which a government adjusts its spending levels and tax rates to
monitor and influence a nation's economy. It is the sister strategy to monetary policy through
which a central bank influences a nation's money supply. These two policies are used in various
combinations to direct a country's economic goals. Here's a look at how fiscal policy works, how
it must be monitored, and how its implementation may affect different people in an economy.

Q2. What is technology? Explain the impact of technology on business.

Answer: -Technology is a body of knowledge devoted to creating tools, processing actions and
extracting of materials. The term ‘Technology” is wide and everyone has their own way of
understanding the meaning of technology. We use technology to accomplish various tasks in our
daily lives, in brief; we can describe technology as products, processes or organizations. We use
technology to extend our abilities, and that makes people as the most important part of any
technological system.
Technology is also an application of science to solve a problem. But what you have to know is that
technology and science are different subjects which work hand-in-hand to accomplish a specific
task or solve a particular problem.

We apply technology in almost everything we do in our lives, we use technology at work, we use it
to , extract materials , we use technology for communication, transportation, learning,
manufacturing, creating art if acts, securing data, scaling businesses and so much more.
Technology is human knowledge which involves tools, materials and systems. The application of
technology results in art if acts or products. If technology is well applied, it can benefit humans,
but if it is wrongly applied, it can cause harm to human beings.
Many businesses are using technology to stay competitive, they create new products and services
using technology, and they also use technology to deliver those products and services to their
customers on time. A good example is, mobile phones companies like Apple& Samsung, these
two electronics companies, use high end technology to create new smartphones and other
electronic devices to stay competitive. This competitive edge is gained through employing
advanced technology.

Let’s take a simple example on how people use technology

Communication Technology: This is a system that uses technical means to transmit information
or data from one place to another or from one person to another.

Communication is used for many purposes; it is used to convey ideas, exchange information
and express emotions. Humans use communication technology tools like phones, computers,
emails, fax, text messaging tools to stay in touch with friends and family , then, businesses use
communication technology tools to facilitate the flow if information in a workplace, to help in
decision making , to serve customers needs and requests, to promote new products or services to
targeted consumers and so much more

3. Explain Monetary policy & its effect on business .

An s :Monetary Policy:-

Monetary policy is the term used by economists to describe ways of managing the
supply of money in an economy. Monetary policy is the process by which the
monetary authority of a country controls the supply of money, o f t e n
t a r g e t i n g a r a t e o f interest f o r t h e p u r p o s e o f
promoting economic g r o wt h a n d s t a b i l i t y. Th e o f f i c i a l g o a l s u s u a l l y i n c l u d e
r e l a t i v e l y s t a b l e p r i c e s a n d l o w unemployment. Monetary economics provide
sin sight into how to craft optimal monetary policy.
Monetary policy is referred to as either being expansionary or contractionary, where
an expansionary policy increases the total supply of money in the economy more
rapidly than usual, and contractionary policy expands the money supply more
slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to
combat unemployment i n a recession by lowering interest rates in the hope that easy
credit will entice businesses into expanding. Contractionary policy is intended to slow
inflation in order to avoid the resulting distortions and deterioration of asset values.
Effect on business:-
The effect of an expansionary monetary policy is to lower the exchange
rate, weaken the financial account and strengthen the current account. A
restrictive monetary policy would be expected to result in the opposite: a higher
exchange rate, a stronger financial account and a weaker current account (a
more negative, or a less positive balance of trade).With a program of expansionary
(easy) monetary policy, the following sequence of e v e n t s w o u l d b e
expected to occur with regard to the income effect:
· The domestic GDP will rise.
. The rise in domestic GDP will tend to increase the demand for
imports. T h e i n c r e a s e i n i m p o r t s w i l l c a u s e t h e c u r r e n t
account to deteriorate.
· The increase in imports purchased will increase the need to convert domestic
to foreign currency. As a result, the exchange rate of the domestic
currency will decrease.
·With no government intervention, the financial account must now move toward a
surplus as the financial and current account must sum to zero. Due to the increase in
imports, foreigners will now have a surplus of the nation's currency. If foreigners do
not use that currency to purchase the country's exports (which would improve
the current account balance), they will ultimately need to invest that currency
in the a s s e t s o f t h e d o m e s t i c c o u n t r y . T h i s e x p l a i n s w h y
c o u n t r i e s s u c h as China and Japan invest large sums in assets such as U.S.
Treasuries. The holders of the U.S. currency must put it to work somewhere! Note
that foreign investors are often getting better rates of return than what might be
readily apparent because the value of the domestic currency is falling relative to their
own currency.