Friday, January 20

Fundamentals of Business (463) - Autumn 2022 - Assignment 1

Q. 1     What is capitalism? How it encourages people to do become entrepreneurs? Explain the benefits of capitalism over socialism.                                                     (20)

Capitalism is an economic system in which private individuals and businesses own the means of

production, and are able to operate for profit. It encourages people to become entrepreneurs by providing them with the opportunity to invest in and own businesses, and to reap the rewards of their success.

One benefit of capitalism over socialism is that it allows for economic growth and increased productivity. Under capitalism, businesses are able to invest in new technologies and techniques to improve their operations, which leads to increased efficiency and output. This in turn leads to higher standards of living for all members of society.

Dear Student,

Ye sample assignment h. Ye bilkul copy paste h jo dusre student k pass b available h. Agr ap ne university assignment send krni h to UNIQUE assignment hasil krne k lye ham c contact kren:

0313-6483019

0334-6483019

0343-6244948

University c related har news c update rehne k lye hamra channel subscribe kren:

AIOU Hub

 

Another benefit of capitalism is that it allows for innovation and competition. Under capitalism, businesses are constantly competing with each other to offer the best products and services at the lowest prices. This competition encourages businesses to be innovative and to find new and better ways of doing things, which can lead to greater choice and better quality goods and services for consumers.

Capitalism also encourages individuals to work hard and be productive, as they are able to keep the fruits of their labor. This in turn, leads to a higher standard of living for all members of society.

Capitalism also provides a wider opportunity of job and business opportunities, which leads to higher rates of employment and economic growth.

However, capitalism also has its drawbacks, such as income inequality and lack of government intervention in certain sectors. It is important to note that no economic system is perfect and each one has its own set of benefits and drawbacks.

 

Q.2      What are the memorandum of association and articles of association? Explain their Contents in detail.                                 (20)

The Memorandum of Association (MOA) and the Articles of Association (AOA) are the two primary documents that govern the formation and operation of a company.

The Memorandum of Association is a legal document that sets out the company's name, registered office, and the objects for which the company has been formed. It also includes the details of the company's authorized share capital and the names of the subscribers who are the initial members of the company. The MOA is a public document and is filed with the relevant government authority at the time of incorporation of the company.

The Articles of Association, on the other hand, is a document that sets out the rules and regulations for the internal management of the company. It lays down the rights and powers of the shareholders, directors, and other officers of the company, as well as the procedures for holding meetings and making decisions. The AOA also includes the company's bylaws and details the company's business operations. The contents of MOA usually include:

·       The name of the company

·       The registered office of the company

·       The main objects of the company

·       The authorized share capital of the company

·       The names, addresses, and occupation of the subscribers who are the initial members of the company

The contents of AOA usually include:

·       The rights and powers of the shareholders, directors, and other officers of the company

·       The procedures for holding meetings and making decisions

·       The bylaws and regulations for the internal management of the company

·       The rules and regulations for the transfer of shares

·       The procedure for appointing and removing directors

·       The powers and duties of the directors

·       The financial year of the company

It is important to note that the MOA and AOA are different in nature, but they are both fundamental documents that govern the functioning of a company and they are usually adopted together.

 

Q.3      Keeping in view the existing financial system of Pakistan, what are the various Sources from where the businesses can obtain funds for their expansion plans? (20)

In Pakistan, businesses can obtain funds for their expansion plans through a variety of sources including:

Banks and Financial Institutions: Businesses can obtain loans from commercial banks, development finance institutions, and microfinance banks. These loans can be secured or unsecured and may be offered at various rates of interest.

Capital Markets: Businesses can raise funds by issuing shares or bonds on the Pakistan Stock Exchange (PSX). This allows them to tap into the savings of the general public and raise large sums of money quickly.

Government and Development Agencies: Businesses can also obtain funds from various government and development agencies such as the Small and Medium Enterprise Development Authority (SMEDA), the Pakistan Industrial and Technical Assistance Centre (PITAC), and the National Bank of Pakistan (NBP). These agencies provide financial assistance to businesses in the form of loans, grants, and subsidies.

Investment from Angel Investors and Venture Capitalists: Businesses can also raise funds from individual investors who provide capital in exchange for an ownership stake in the company. These investors are often wealthy individuals or groups who are looking for high-growth potential investments.

Lease Financing: Businesses can also obtain funds for their expansion plans by leasing equipment, vehicles or other assets.

Foreign Investment: Foreign Direct Investment (FDI) is another source of funding for businesses in Pakistan, where foreign companies invest in local businesses and provide them with the capital and expertise they need to expand.

It's worth mentioning that there are also other sources of funding such as crowdfunding, peer-to-peer lending, and government grants, but they are less common in Pakistan as compared to other sources. Business owners should thoroughly research and evaluate all available options before deciding on the best source of funding for their expansion plans.

 

Q.4    Every business requires strong management. What is business management?

Explain the function of planning and organizing in detail.                      (20)

Business management is the process of achieving organizational goals by planning, organizing, directing, and controlling the efforts of an organization's members. It involves making decisions about how to allocate resources, setting objectives, and developing strategies for achieving those objectives.

Planning is the process of setting objectives and developing strategies for achieving those objectives. It involves analyzing the current situation, identifying opportunities and threats, and determining the best course of action to achieve the organization's goals. Planning is a crucial function of management as it enables the organization to anticipate and respond to changes in the business environment.

Organizing is the process of arranging and coordinating the various resources of an organization to achieve its objectives. It involves the design and development of an organizational structure, the allocation of tasks and responsibilities, and the provision of necessary resources. Organizing also includes the selection, training, and development of personnel. Organizing is important as it allows the organization to efficiently and effectively use its resources to achieve its goals.

More specifically, Planning includes:

·       Setting objectives

·       Identifying opportunities and threats

·       Analysing the current situation

·       Determining the best course of action

·       Developing strategies to achieve the objectives

·       Establishing budgets and plans for the allocation of resources.

Organizing includes:

·       Designing and developing an organizational structure

·       Allocating tasks and responsibilities

·       Providing necessary resources

·       Selecting, training, and developing personnel

·       Delegating authority and responsibilities

·       Establishing relationships and communication channels.

Both Planning and Organizing are interrelated and are essential to the success of any business. Planning provides the direction and focus for the organization, while organizing ensures that the necessary resources are in place to achieve the objectives set through planning. Together, they provide a framework for decision-making, allowing the organization to effectively and efficiently use its resources to achieve its goals.

 

Q.5    Without marketing, a business will not be able to make sufficient profits. What is The marketing mix? Explain its elements.                     (20)

The marketing mix is a set of tools that businesses use to promote and sell their products or services. It is also referred to as the "4 Ps" of marketing and includes Product, Price, Place, and Promotion.

Product: The product is the tangible or intangible item that is being offered to the customer. It includes product design, features, packaging, branding, and services that come along with the product.

Price: The price is the amount that a customer must pay to purchase the product or service. It includes the costs of production, distribution, and marketing, as well as any additional markups or discounts.

Place: The place refers to the location or distribution channels through which the product or service is made available to the customer. It includes decisions about where and how the product will be sold, such as online or in physical stores, and the logistics of getting the product to the customer.

Promotion: Promotion refers to the various methods that a business uses to communicate with and persuade potential customers to buy its products or services. This includes advertising, public relations, sales promotions, personal selling, and direct marketing.

Some models of marketing mix include additional Ps, such as People, Process, and Physical evidence, which emphasizes the importance of customer service, the design and operation of business processes and the tangible elements of the company that impact on customers such as the atmosphere of the store, layout and cleanliness.

Marketing mix is a powerful tool for businesses to gain a competitive advantage and reach their target market. Each element of the marketing mix is interrelated, and businesses must carefully consider how they will balance and use each element to achieve their marketing objectives.

 

Dear Student,

Ye sample assignment h. Ye bilkul copy paste h jo dusre student k pass b available h. Agr ap ne university assignment send krni h to UNIQUE assignment hasil krne k lye ham c contact kren:

0313-6483019

0334-6483019

0343-6244948

University c related har news c update rehne k lye hamra channel subscribe kren:

AIOU Hub