MBA 1st Year Economic Political Legal Business Environment Long Question Answer Practice Paper

MBA 1st Year Economic Political Legal Business Environment Long Question Answer Practice Paper: – In this Post you will find MBA 1 year related to important questions related to the answer such as the Economic Political Legal Business Answer and many other important questions. Long Questions are answer in English Section C

Section C

Long Answer Questions

MBA 1st Year Economic Political Legal Business Environment Long Question Answer Practice Paper
MBA 1st Year Economic Political Legal Business Environment Long Question Answer Practice Paper

Q. 1. What are the different organs of political institutions? Describe.

Ans. The different organs of political institutions?

  1. Legislature,
  2. Executive, and
  3. Judiciary

1. Legislature

The legislative organ of india is the parliament.

An assembly of elected representatives which exercises supreme political authority on behalf Of  the people. In India such a national assembly of elected representatives is called Parliament 

(a) Parliament is the final authority for making laws in any country. Parliaments all over the world

can make new laws, change existing laws, or abolish existing laws and make new ones in their place. 

(b) Parliaments all over the world exercise some control over those who run the government. In some countries like India, this control is direct and full. 

(C) Parliaments control all the money that governments have. In most countries, the public money can be spent only when the Parliament sanctions it. 

(d) Parliament is the highest forum of discussion and debate on public issues and national policy in any country. Parliament can seek information about any matter.

Two Houses of Parliament 

(a) In our country, the Parliament consists of two houses. The two houses are known as the Council of States (Rajya Sabha) and the House of the People (Lok Sabha). 

(b) The total number of elected members of Lok Sabha is 543+2 Anglo Indian nominated members. The total number of members of Rajya Sabha is 238+12 nominated members. 

(C) Members of Lok Sabha are elected by the people. Members of Rajya Sabha are elected by the MLAs and MPs. 

(d) The length of the term of Lok Sabha members is 5 years and that of Rajya Sabha members is 6 years.

(e) Lok Sabha can be dissolved but Rajya Sabha is permanent and only the members retire. Lok Sabha Exercises Supreme Power than Rajya Sabha: These are some points which show that Lok Sabha exercises supreme power than Rajya Sabha. 

(a) Any ordinary law needs to be passed by both the houses. But if there is a difference between the two houses, the final decision is taken in a joint session in which the view of the Lok Sabha is likely to prevail. 

(b) Lok Sabha exercises more powers in money matters. Once the Lok Sabha passes the budget of the government or any other money related law, the Rajya Sabha cannot reject but can only delay it by 14 days. 

(c) Most importantly, the Lok Sabha controls the Council of Ministers. Only a person who enjoys the support of the majority of the members in the Lok Sabha, is appointed as the Prime Minister. 

(d) If the majority of the Lok Sabha members say that they have ‘No confidence in the Council of Ministers, all ministers including the Prime Minister, have to quit. The Rajya Sabha does not have this power 

2. Executive

At different levels of any government we find functionaries who take day-to-day decisions and implement those decisions on behalf of the people. All those functionaries are collectively known as the executive Political and Permanent Executives

(a) Politician who is elected by the people for a specific period is called the political executive Political leaders who take the big decisions fall in this category. 

(b) Officers who are appointed on a long-term basis based on their qualification and experience they are called the permanent executive or civil servants. They remain in office even when the ruling party changes. 

Thus, the political executives have more powers than the non-political executives.

Concil of Ministers and Types of Ministers: Council of M hat includes all the ministers. It usually has 60 to 80 ministers of different ranks.

Cabinet ministers are usually top-level leaders of the ruling Party or parties whow are in – charge of the major ministries. Usually the cabinet  ministers meet to take decisions in the name of the cuncil of ministers.

Ministers of State with independent charge are usually in-charge of smaller ministrise. They  participate in the cabinet meetings only when specially invited. 

(c) Ministers of state or deputy ministers are attached to and required to assist cabinet ministers in their work.

Prime Minister and his Powers

Prime Minister is the most important politicla institution in the country.  The presdident appoints the leader of the majority party or the coalition of parties that commands a majority in the lok Sabha as Prime Minister,

1. As head of the government, the Prime Minister has wide ranging powers. 

2. He chairs cabinet meetings. He coordinates the work of different departments are final in case disagreements arise between departments.

3. He exercises general supervision of different ministries. All ministers work under his leadership. 

4. The Prime Minister distributes and redistributes work to the ministers. He also has the power to dismiss ministers. 

5. When the Prime Minister quits, the entire ministry quits. The cabinet is the most powerful institution in India and within the cabinet the Prime Minister is the most powerful. 

Prime Ministerial form of Government: The powers of the Prime Minister in all parliamentary democracies of the world have increased so much in recent decades that parliamentary democracies are seen as Prime Ministerial form of government.

The President and his Powers

The President is the head of the state. The President of India is like the Queen of Britain whose functions are to a large extent ceremonial. The President is elected by all the Members of Parliament (MPs) and Members of State Legislative Assemblies (MLAs).

1. The President supervises the overall functioning of all the political institutions in the country so that they operate in harmony to achieve the objectives of the state. 

2. All governmental activities take place in the name of the President. All laws and mo decisions of the government are issued in her name. 

3. All major appointments are made in the name of the President. These include tes of the Supreme Court and the High Courts, the Governors, of the Chief Justice of India, the Judges of the Supreme Court and the High Courts the Election Commissioners, ambassadors to other countries, etc. 

4. All international treaties and agreements are made in the name of the President ommander of the defence forces of India. President exercises 

5. The President is the supreme commander of the defence forces of India. President exercises all these powers only on the advice of the Council of Ministers

3. Judiciary

All the at country levels in a country put together are called the judiciary. The Indian ” the courts at different levels in a country put together are call lary consists of a Supreme Court for the entire nation, High Courts in the the courts at local level. 

Following are the types of cases or disputes handled by the courts:

Cases between citizens of the country. 

Cases between citizens and government.

Cases between two or more state governments; 

Cases between governments at the union and state level.

Powers of the Supreme Court and High Court 

(a) Supreme Court is the highest court of appeal in civil and criminal cases. It can hear appeals against the decisions of the High Courts. 

(b) The Supreme Court and the High Courts have the power to interpret the constitution of the country. They can declare invalid any law of the legislature if they find such a law or action is against the constitution 

(c) The Supreme Court can determine the constitutional validity of any legislation or action of the executive in the country, when it is challenged before them. This is known as the judicial review, 

(d) The powers and the independence of the Indian judiciary allow it to act as the guardian of the fundamental rights 

(e) Courts have given several judgements and directives to protect public interest and human rights. Anyone can approach the courts if public interest is hurt by the actions of government. This is called public interest litigation. 

Independence of the Judiciary 

(a) Independence of the judiciary means that it is not under the control of the legislature or the executive. The judges do not act on the direction of the government or according to the wishes of the party in power 

(b) The judges of the Supreme Court and the High Courts are appointed by the President on the advice of the Prime Minister and in consultation with the Chief Justice of the Supreme Court. Once a person is appointed as judge of the Supreme Court or the High Court, it is nearly impossible to remove him or her from that position.  

(c) A judge can be removed only by an impeachment motion passed separately by two-third members of the two houses of the Parliament. 

MBA 1st Year Economic Political Legal Business Environment Long Question Answer Practice Paper

Q.2. Explain the various variants (I.e. concept, assumptions, attitudes and practices) of capitalism.

Ans. Variants of Capitalism: There are two very different variants of capitalism. One familiar variant is the system traditionally practiced in the United States. This is referred to as individualistic capitalism. The other variant is the system practiced in Japan and in the unified European community This system is referred to as communitarian capitalism. These two variants of capitalism are important because most of the assumptions and practices underlying the individualistic system are incompatible with the assumptions and practices underlying the communitarian system. The particular variant of capitalism embraced by society, determines to a large extent how individuals interact with each other, how businesses interact with other businesses and government, how companies are managed and more specifically for the purposes of this text, how internal accounting systems are designed and used to measure and evaluate performance. As a result the dichotomy of capitalism provides a broad frame work for the study of management and management accounting.

Underlying Concepts, Characteristics and Assumptions: According to George Lodge, most countries display a mix of individualism and communitarianism. However the United States has tended to be the most individualistic and Japan has tended to be the most communitarian. Other nations are somewhere between the two extremes. A brief sketch of the key economic concepts, characteristics and assumptions underlying the two conflicting competitive models is provided in table 1. These include:

1. How to optimise the performance of a system. 

2. The key moving force in the economy. 

3. The motivation for work. 

4. The responsibility for training prior to employment. 

5. The relationship between government and business.

6. The purpose of government policy.

Table 1: Major Concepts and Assumptions Underlying the Economic System

Concepts and assumptions Pure communitarian capitalism Pure individualistic capitalism
How to optimize the performance of a system Cooperation at all levels will optmise the system. Competition at all levels will optimise the System.
The key driving force in the economy The desire to build for the future. The desire for current consumption and leisure.
Motivation for work Work provides utility, individuals live to work, Work provides disutility, individuals work to live
Responsibility for skills and training prior to employment Responsibility of society. Strong high schools and apprenticeship programs. Responsibility of the individual beyond relatively wrak high schools. Few apprenticeship programs.
Government policy.  Promotes growth in supply. Promotes growth in demand.

Major Business Conecpts, Attitudes and practices: Table 2 provides a summary comparison of twelve major business concepts, attitudes and practices underlying the two competitive models. These include:

  1. The organization’s dominant objective and focus.
  2. Organisational structure.
  3. How profits are used.
  4. The hierarchy of the organisations’s constituencies.
  5. Employment and job security.
  6. Responsibility for training after employment.
  7. The route to management.
  8. Management’s attitude towards teamwork.
  9. Management’s behavior in an economic recession
  10. Management’s view of leadership.
  11. Management’s attitude towards problems.
  12. The tools of management

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