1. JOSEPH’S COLLEGE OFCOMMERCE (AUTONOMOUS)

                              END SEMESTER EXAMINATION – OCTOBER 2014

M.COM – I SEMESTER

 BUSINESS PERSPECTIVES

Duration: 3Hrs.                                                                                          Max. Marks: 100

SECTION – A

1. Answer any SEVEN questions. Each carries 5 marks.                          (7×5=35)

 

1. Explain why ethics is important for any business.
2. Discuss the social impact of technology in India.
3. What is meant by the LPG policy?
4. What is CSR? What are the pressures for CSR in businesses?
5. Discuss corporate governance and the factors influencing it.
6. Differentiate fiscal policy and monetary policy with examples.
7. Explain the functions and recommendations of the Finance Commission.
8. What are the agencies in India to rehabilitate sick industries? What are their initiatives?
9. Briefly explain the process of analysis of environment by a business.

Section – B

 

1. Answer any THREE questions. Each carries 15 marks. (3×15=45)

 

10. Discuss the reasons for poor performance of public sector enterprises in India.
11. “A typical business unit seeks to achieve more than one objective.”
12. Explain the reasons for government intervention and regulations in business. What are the types of controls by government?
13. What is industrial sickness? What are its causes and remedies?
14. Explain the objectives and important initiatives of the Industrial Policy 1991.

 

Section –C

• Case Study – Compulsory         (20 marks)

                                                Privatisation is no ideology                                            

The former Prime Minister of India had ruled out privatisation of profit-making public sector undertakings (PSUs). In a press conference, he had specifically ruled out privatisation of GAIL and ONGC. Privatisation need not be an ideological pursuit, we agree. However, we have endorsed privatisation even of profit-making PSUs essentially on the ground that government ownership leads to sub-optimal efficiency. The political culture of the country has become such that PSUs are used by politicians and bureaucrats as a means of patronage and personal enrichment. Given the reality of this political culture, privatisation is indeed the solution. While ruling out privatisation of profitable enterprises in the state sector, the government cannot simultaneously be repudiating the goal of realising the maximum potential of the scarce production assets represented by the PSUs. While the political leaders in economic policymaking bodies have talked about autonomy for PSUs, talk is not enough. PSUs would have to be freed from control by ministries. And this freedom would have to be structured institutionally.

There is no reason for joint secretaries to the government of India to sit on the boards of state-owned companies. There is no reason for PSUs to be needlessly subjected to vigilance, CBI and other inquiries. Why should this country have two classes of owners, in terms of oversight of how well managements discharge their responsibility towards owners? The whole point is that company law, corporate governance, accounting and reporting norms for all companies, whether owned by the government or by the public at large, must ensure that the capital provided to company managements is put to optimal use. That goal can be met by the government acting as a portfolio investor, leaving the actual running of the company to professional management, who can be rewarded or sacked, depending on performance. Institutionalising such genuine autonomy must complement a policy of not privatising profit-making PSUs.

Questions:

16.

1. What are the main issues in this case?
2. What are the reasons for the sub-optimal efficiency of our PSUs?
3. Should profit making PSUs be privatised? Justify your views.
4. Suggest alternate remedial measures for making the PSUs efficient.

(5+5+5+5)

 

 

 

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