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AR-7917
B.Sc. (Forestry) (Sixth Semester) Examination
Paper-V : Entrepreneurship Development and Communication Skills
Time : Three hours
Maximum Marks : 60

Model answer

Dr. Anindita Bhattacharya


Department of Forestry, Wildlife & Environmental Sciences
Guru Ghasidas Vishwavidyalaya
Bilaspur, Chhattisgarh

AR-7917
B.Sc. (Forestry) (Sixth Semester) Examination
Paper-V : Entrepreneurship Development and Communication Skills
Time : Three hours
Maximum Marks : 60
Note : Section-A is compulsory. Attempt any four questions from Section-B
Section: A

1. Multiple Choice Questions

[201=20]

(i) For an entrepreneur, innovation is an important criterion is stated by


(a) Richard Cantillon

(b) Peter Drucker

(c) Joseph A. Schumpeter

(d) David McClelland

Ans : Joseph A. Schumpeter

(ii) Entrepreneurs are capitalist as stated by


(a) Adam Smith

(b) Jean Baptiste Say

(c) David McClleland

(d) Peter Drucker

Ans : Adam Smith

(iii) Drone entrepreneur are


(a) Adapt new technologies

(b) Refuge to adopt new changes

(c) Imitative

(d) None

Ans: Refuge to adopt new changes

(iv) Intrapreneur are the person who perform their operation


(a) Independently

(b) Dependently

(c) Personal capital investment

(d) Either a & c

Ans : Dependently

(v) Entrepreneur is a factor of


(a) Microeconomics

(b) Macroeconomics

(c) Economics

(d) All of the above

Ans : Microeconomics
(vi) Hagens Theory states that for entrepreneur motivation, emphasis is given on
(a) Social value

(b) Profit

(c) Religious faith

(d) None

Ans: Religious faith

(vii) Social & cultural effective element for development of entrepreneurship is


(a) Self dependency

(b) Courageous skill

(c) Rules & regulation

(d) Government policies

Ans : Government policies


(viii) Entrepreneur actually starts setting up of an enterprise by
(a) Planning

(b) Organizing

(c) Staffing

(d) Directing

Ans : Directing

(ix) How many distinct classes in village are there in India?


(a) 1

(b) 2

(c) 3

(d) 4

Ans : 3

(x) After generation of idea what is the next step in promotion of venture?
(a) Carrying detailed information

(b) Exploring the possibilities

(c) SWOT analysis

(d) All of the above

Ans : Exploring new possibilities

(xi) As stated by L.F. Urwick, business houses are made or broken by whom?
(a) Capitals

(b) Patents

(c) Markets

(d) Men

Ans : Men
(xii) The total job requirement in Indian economy as worked in 11th plan was
(a) 80 million

(b) 90 million

(c) 100 million

(d) 200 million

Ans : 100 million

(xiii) As reported by Stanworth and Currant that when business expands and grows in due course
of time, the entrepreneur plays the role of
(a) Doer

(b) Implementer

(c) Innovator

(d) All of the above

Ans : Implementer
(xiv) Maslows motivation theory is based on
(a) Human needs

(b) Achievement

(c) Behaviour

(d) All of the above

Ans : Human needs

(xv) What is the mean score in 5 point scale of creativity as a motivating factor?
(a) 2.85

(b) 3.50

(c) 3.66

(d) 3.76

Ans : 3.76

(xvi) Which is not a vocal element?


(a) Sound

(b) Pitch

(c) Volume

(d) Pause

Ans: Sound

(xvii) In EDPs, Ring Toss Game gives an indication of entrepreneurs potential for
(a) Risk taking

(b) Starting a game

(c) Innovation

(d) None

Ans : Risk taking

(xviii) The entrepreneur who wants to perform better required


(a) Training

(b) Skill

(c) Knowledge

(d) None

Ans : Training

(xix) Social Distance range from


(a) 4-12 feet

(b) 2-6 feet

(c) 12-30 feet

(d) Depends on situation

Ans : 4-12 feet

(xx) The relationship between society and corporation is like ship and
(a) Fuel

(b) Driver

(c) Sea

(d) None

Ans : Sea

Section : B (Attempt any four questions)

(1x10)

Q 2. Who is called as an entrepreneur? Describe the functions performed by the successful


entrepreneurs to run the enterprise. What is the need of an entrepreneur in the economy?
Ans 2: The word Entrepreneur is derived from a French word which means to undertake. In
the beginning of the 16th century, a Frenchman who organized and led a military expedition was
called Entrepreneur. This term was used in the business first of all by French economist
Cantilone in 18th century.

Definitions:
Entrepreneurs as organiser
(1) According to F.H. Frange, Entrepreneurship is the planning and organization of the various
means of production in the form a production unit

Entrepreneur as innovator
(2) According to Schumpter, Entrepreneurship is an innovative function.

Entrepreneur as profit maker


(3) According to Cole, Entrepreneurship is a purposeful activity of an individual, undertaking to
initiate, maintain profit by production or distribution of economic goods and services.

Entrepreneur as opportunity finders


(4) According to Peter F. Drucker, In business, it is economical to increase opportunities.
So the definition of entrepreneurship can be presented in the following three categories:
(1) Classical view: According to this view, entrepreneurs are related to the following elements:
(i) Capacity of bearing the risks and uncertainties of business
(ii) Ability of assembling and organizing of various means of production
(iii) Organizing the means of production in the form of a productive entity and ability of their
control and superintendence.

(2) Neo-classical view:


Some of the neo-classicists are Alfred Marshal and Joseph Schumpeter. According to this view,
an entrepreneur means having the following abilities:
(i) Ability to handle the various managerial tasks related to business like- planning, organizing
means of production, directing and controlling various tasks.
(ii) Ability to bring about new changes in business.

(3) Modern view: Peter Drucker came under this category. Entrepreneurs search for new
innovation and opportunities, decide in reference to social value, do social innovation and
provide progressive leadership to business.

Characteristics of an entrepreneur are:


(1) Hard work
(2) Desire for high achievement
(3) Highly optimistic
(4) Independence
(5) Foresight
(6) Good organizer
(7) Innovative
(8) Perseverance
(9) Team spirit

Functions of entrepreneurs
(I) Managerial functions: This is classified into five types
(1) Planning : It is a pre-determined course of action to accomplish the set of objectives. It helps
in smooth and effective completion and running of a business enterprise.
(2) Organising : This function refers to bringing together the men, material, machine, money etc.
to execute the plans.
(3) Staffing : It involves human resource planning and human resource management. It include
preparing inventory of personnel available, requirement of personnel, sources of manpower
recruitment, remuneration, training and development and periodic appraisal of personnel
working in the enterprise.
(4) Directing: This function actually starts setting up of enterprise. Here entrepreneur guides,
counsels, teaches, stimulates and activates the employees to work efficiently.
(5) Controlling: Here it is observed whether the activities have been performed according to the
plan or not. Here actual performance is compared with target performance.

(II) Promotional functions


(1) Identification and selection of business idea: The entrepreneur based on his/her knowledge,
experience and information gathered from various source, generates some possible business
ideas. Then the generated ideas are analyzed in terms of costs and benefits associated with them.
Then the most beneficial idea is selected to be pursued as business enterprise.
(2) Preparation of business plan or project report: Business plan is a well evolved course of
action devised by entrepreneur to achieve the specified objectives within a specified period of
time.
(3) Requirement of finance: The entrepreneur prepares short and long term requirement for
funds. The sources of supply for these funds are also mentioned.

(III) Commercial function:


(1) Production/Manufacturing: This function includes decisions relating to the selection of
factory site, design and layout, types of product to be produced, research and development and
design of the product.
(2) Marketing: Marketing is the performance of those business activities that direct the flow of
goods and services from producer to consumer.
(3) Accounting: The main objectives of any business enterprise are to earn profit and create
wealth and this ascertained through accounting. Accounting is the art of recording, classifying
and summarizing in a significant manner and in terms of money, transactions and events which
are, in part of least, of a financial character and interpreting the results thereof. Accounting
involves:
(i) Recording the transaction (ii) Classifying the transaction (iii) Summarizing the transaction
(iv) Preparing the final account (v) Analyzing and interpreting the results.

Need of entrepreneur in an economy


(1) Entrepreneur promotes capital formation.
(2) They create immediate and large scale employment.
(3) They promote balanced regional development.
(4) They help reduce the concentration of economic power.

(5) They promote the equitable redistribution of wealth, income and even political power in the
interest of the country.
(6) They encourage effective resource mobilization of capital and skill.
(7) By establishing industries, induce backward and forward linkage which stimulates the
process of economic development in the country.
(8) They promote countrys export business which is an important ingredient to economic
development.

Q 3. Delineate entrepreneur motivation. What are the various theories in support of


entrepreneurship motivation?
Ans: The word motivation originates from Latin word movere which means to move.
According to Fred Luthans Motivation is a process that starts with a physiological or
psychological deficiency or need that activates behaviour or a drive that is aimed at goal or
incentive. According to Stephen P. Robbins, motivation is The willingness to exert high levels
of effort toward organizational goals, conditioned by the effort and ability to satisfy some
individual need. So motivation is ones willingness to exert high level of efforts towards the
accomplishment of goal or fulfillment of need.

Theories of entrepreneurial motivation


(I) Economic theory: According to economists, when a nations economic conditions and
opportunities are suitable, economic development takes place. According to G.F. Papanek and
J.R. Harries, Economic motivation is the principal factor of all entrepreneur activities.

(II) Sociological theories: This theory believes that the birth of entrepreneurship takes place in a
special social culture. The following have given an important contribution in the propounding of
the sociological theories:
(1) Max Weber Peters Theory: This theory supports the fact that religious faith plays an
important role in the profession of the entrepreneur.
(2) Thomas Cochrans Theory : This theory believes that cultural values, desires and social
backing have an important place in the development of entrepreneurship.

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(3) Frank W. Youngs Theory : This theory believes that the expansion of entrepreneurial
activities is possible not through individuals but through groups only.
(4) Bert F. Hoselitz : According to this theory, the role of groups from cultural point of view, has
been important for the development of entrepreneurship and for economic development.
(5) Randall G. Stokes Theory: This theory believes that the economic activities based on
economic and social values are important for entrepreneurship development.
(6) Everett E. Hagen Theory: This theory concludes that community and religious classes give an
important contribution in the development of entrepreneurship.

(III) Psychological theories


(1) Joseph A. Schumpeters theory : As per Schumpeter, an entrepreneur is an innovation person,
who desires to earn profit through innovation.
(2) David C. McClellands theory: According to this theory, three important things are needed
for entrepreneur motivation:
(a) Need for achievement (b) Need for power (c) Need for affiliation
(3) Everett E. Hagen theory: According to him, when the business prestige of a person is hurt, he
maximizes his efforts in order to move ahead.
(4) The John Kunkels theory : According to him the development of entrepreneurship depends
upon the past and present social structure of any society.
(5) Maslows need hierarchy theory:

Self-actualization
Esteem

Social
Safety

Physiological

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This theory is based on human needs. There are five needs: (a) Physiological needs (Roti,
Kapada aur Makan) (b) Safety and security need (c) Social needs: Want affiliation from society
(d) Esteem needs (Self-esteem and self-respect) (e) Self-actualization (Self-fulfillment).

Q 4. Write the relationship and variances between competence and competency. What are
the major competencies of successful entrepreneur? Classify the different types of
entrepreneurs.
Ans: According to Boyatzis A competence is an underlying characteristic of a person which
leads to his/her effective or superior performance in a job. Hogg has defined competency as
competencies are the characteristics of a manager that lead to the demonstration of skills and
abilities, which result in effective performance within an occupational area. So competence is a
cluster of knowledge, skill, motive etc. which one uses to perform a certain job effectively.

Relationship between Competence and Competency


Difference between Competence and Competency
Competence

Competency

Skill based

Behaviour based

Standard attained

Manner of behaviour

What is measured

How the standard is achieved

So, competence describes what people can do while competency focuses on how they do it. The
former means a skill and standard of performance reached, while the latter refers to the
behaviour by which it is achieved. There are three component of competence:
(1) Knowledge : Knowledge is necessary to perform a task, but it is not sufficient. For example
reading the instruction manual for car driving does not make a person to drive a car. Training is
necessary for that.
(2) Skill : Knowledge and skill are required for performing a work.
(3) Motive : Motive is an urge to achieve ones goal.

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Thus, in order to perform a task like establishing and running an industrial unit effectively and
successfully, a person called entrepreneur needs to possess a set of knowledge, skill and motive.
Competence=Knowledge Skill

Major Entrepreneurial Competencies


Entrepreneurship Development Institute of India, under the guidance of David McClelland has
listed the following competencies:
(1) Initiative : It is the entrepreneur who initiates a business activity.
(2) Looking for Opportunities: He looks for an opportunity and takes appropriate actions as and
when it arises.
(3) Persistence : He/ She makes repeated efforts to overcome obstacles.
(4) Information Seeker : Takes individual research and consults experts to get information to
help reach the goal.
(5) Quality Conscious: He has always strong urge to excel to beat the existing standard.
(6) Committed to work : Does every sacrifice to get task completed.
(7) Efficiency seeker: Make always tenacious efforts to get the task completed within minimum
cost and time.
(8) Proper Planning: Formulates realistic and proper plans and then executes rigorously to
accomplish the task.
(9) Problem solver : Always tries to find out ways and means to tide over the difficult times.
(10) Self-Confidence : A strong believer in his strengths and abilities.
(11) Assertive: Good in asserting issues with others for the cause of his enterprise
(12) Persuasive: Able to successfully persuade others to do what he actually wants from them.
(13) Efficient monitor: Personally supervises the work so that it is done as per the standards laid
down.
(14) Employee well-wisher: Has great concern and also takes necessary measures to improve
the welfare of the employees working in his enterprise.
15. Effective strategist: Introduces the most effective strategies to effect employees to achieve
the enterprise goal.

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Individual research study


McCrory had given the following characteristics:
1. He invests his income in his enterprise.
2. He is versatile and resourceful.
3. He takes advantage of every opportunity.

B.C. Tandon had given the following characteristics:


1. Risk-bearer.
2. Adapt change.
3. Ability to use resource.
4. Good organizer and good manager.

So, entrepreneurial competencies are: (a) Enterprising (b) Risk bearer (c) Creative thinker (d)
Ambitious (e) High need achievement (f) Change agent (g) Hard worker (h) Good manager and
organizer (i) Good and prompt decision-maker (j) Strong commitment and firm determination.

Type of entrepreneurs
(I) Based on the type of business
(1) Trading entrepreneur: They procure the finished products from the manufacturer and sell
these to the customer directly.
(2) Manufacturing entrepreneur : They convert the raw materials into finished products.
(3) Agricultural entrepreneur : The entrepreneur who undertake agricultural pursuits are called
agricultural entrepreneurs.

(II). Based on the use of technology


(1) Technical entrepreneur : They establish and run science and technology-based industries.
(2) Non-technical entrepreneur. They are concerned with the use of alternative and imitative
methods of marketing and distribution strategies to make their business survive and thrive in the
competitive market.

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(III) Based on ownership


(1) Private entrepreneur : They are the sole owner of the enterprise and bears the entire risk
involved in it.
(2) State entrepreneur : When the trading or industrial venture is undertaken by State or the
Government, it is called state entrepreneur.
(3) Joint entrepreneur : When a private entrepreneur and the Government jointly run a business
enterprise, it is called joint entrepreneur.

(IV) Based on gender


(1) Men entrepreneur (2) Women entrepreneur

(V) Based on the size of enterprise


(1) Small-scale entrepreneur : They made investment in plant and machinery up to 1 crore.
(2) Medium-scale entrepreneur: They made an investment in plant and machinery above 1 crore
but below 5 crore.
(3) Large-scale entrepreneur: They made an investment in plant and machinery more than 5
crore.

(VI) Based on Clarence Danhof Classification


1. Innovating entrepreneurs: They introduce new goods, new method of production, discover
new market and reorganize the enterprise.
2. Imitative entrepreneur : They do not innovate the change themselves, they only imitate the
technique innovated by others.
3. Fabian entrepreneurs: They are characterized by great caution and skepticism in
experimenting any change in their enterprise.
4. Drone entrepreneurs: These are characterized by a refusal to adopt opportunities to make
changes in production even at the cost of severely reduced returns.

(VII) Others
(1). Solo operators : They work alone and if needed employ few employees

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(2). Active partners : They start an enterprise as a joint venture.


(3) Inventors : They develop new products through research and development.
(4) Challengers: These are the entrepreneur who plunges into the industry because of the
challenges it presents.
(5) Buyers: They buy the ongoing industry as they do not like to bear much risk.
(6) Life-timers: These entrepreneurs take business as an integral part to their life.

Q 5. Enumerate the plan of action for EDPs. Discuss the different activities and preparation for
EDPs.

Ans : Entrepreneurship development programmes (EDP) refers to inculcation, development and


polishing of entrepreneurial skills into a person needed to establish and successfully run the
enterprise. National Institute of Small Industry Extension Training, Hyderabad defined EDP as
An attempt to develop a person as entrepreneur through structural training. According to N.P.
Singh (1985) EDP is designed to help an individual in strengthening his entrepreneurial motive
and acquiring skills and capabilities necessary for playing his entrepreneurial role effectively.

Action plan for EDP


The EDP training programmes have the following plan of action
(1) General introduction to entrepreneurship : Here the participants are exposed to a general
knowledge of entrepreneurship such as factors affecting small-scale industries, the role of
entrepreneurs in economic development, entrepreneurial behaviour and facilities available for
establishing small-scale enterprises.
(2) Motivation training : Here efforts are made to inject confidence and positive attitude among
the participants towards business.
(3) Management skill : Knowledge of managerial skills in different functional areas like finance,
marketing, human resource and production, enables an entrepreneur to run the enterprise
smoothly and successfully.
(4) Support system and Procedure : The participants need to be exposed to the support available
from different institutions and agencies for setting up and running small-scale enterprises. This is

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followed by acquainting them with procedure for approaching them, applying and obtaining
support from them.
(5) Fundamentals of project feasibility study:

Under this, the participants are provided

guidelines on the effective analysis of feasibility or viability of the particular project relating to
marketing, organization, technical, financial and social aspects of the project.
(6) Plant visits: In order to familiarize the participants with real life situations in small business,
plant visits are also arranged.

The different activities and preparation for EDPs


An entrepreneurship development programme consists of the following three phases:
(1) Pre-training phase:

The activities and preparation required to launch the training

programme come under this phase. Following preparation is included:


(a) Selection of entrepreneur.
(b) Arrangement of infrastructure
(c) Tie-up of guest faculty for the training purposes
(d) Arrangement for the inauguration of the programme
(e) Selection of necessary tools and techniques to select the suitable entrepreneurs
(f) Formation of selection committee for selecting trainees
(g) Arrangement of publicity media and campaigning for the programme
(h) Development of application form
(i) Finalization of training syllabus
(j) Pre-potential survey of opportunities available in the given environmental conditions.

Selection procedure for EDP trainees


This process comprises of the following:
(1) Psychological test
(2) Finding out the socio-economic background of the candidates
(3) Personal interviews
To assess the suitability of the trainees by making the use of the following methods
(1) Analysis of the application blank

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(2) Psychological tests


(3) Group planning exercise
(4) Personal interview

(I) Analysis of the application blank


It contains questions relating to demographic, educational, family-background, previous
experience, social participant and level of aspiration of the candidate. Detailed analysis is done to
assess the suitability of the candidate to become an entrepreneur.

(II) Psychological tests


(1) Thematic Appreciation Test (TAT): This test is used to assess the candidates need for
achievement or power. Here six thematic pictures are shown for 30 seconds. Then the candidate
is asked to write a story about each picture within a short time of five minutes. This test may give
an indicator about the candidates need for achievement/power.
(2) Ring Toss game : The ring toss game is played with tree rings and one peg. The trainer
marks the distance from the peg and asks the candidates to select the distance for throwing all the
three rings. The risk propensity of the candidates is scored according to the distance chosen. The
candidates are categorized into the following categories based on their scores - (a) Blind Risktakers (BR) (b) Calculated and moderate risk-takers (c) Low risk-taker (LR)
(3) Locus of control : Here questionnaire are prepared and candidates responses are given score.
Locus of control are of two types: (a) Internal locus of control : Believe that they are the makers
of destiny, (b) External locus of control : Persons who believes in destiny. High score is given to
the candidates on internal locus of control.

(III) Group planning exercise


Usually simulated exercises are used to observe group behaviour of individuals. The trainer
assigns a task to the candidates and explains the objectives to be accomplished. The resources
required to perform the task are made available to the candidates to complete the task within a
definite period of time. The key behaviour observed by the trainer are the candidates

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commitment to task, planning and organizing ability and decision making ability and categorized
as: (a) Above average (b) Average (c) Below average

(IV) Personal interview


This is conducted to assess the knowledge, interest and skill required by the candidates. Then
scores are given to the candidates.

(V) Computation of final score


Finally, scores given on various dimensions are totaled. But it is advisable not to rank the
candidates for selection purposes based on their above total scores because the candidate may be
good at one or two dimension and at the same time, miserable poor on other dimensions.

(2) Training phase: The main objective of this phase is to bring desirable change in the
behaviour of the trainees. Here the candidates are motivated for achievement. Here the trainer
should observe the behavioural change of the trainee like- (a) The candidates should tuned
towards the proposed project (b) They should behave like an entrepreneur (c) There should be
positive change in outlook, skill, attitude etc. in the candidates. (d)The traits that are lacking in
the candidates (e) The candidate should be well informed about modern technology and
resources for establishment of an enterprise.
(3) Post training phase (Follow-up)
The ultimate objective of EDP is to prepare the participants to start the enterprise. This phase
involves assessment to judge how far the objectives of the programme have been achieved. This
is called follow up. It indicates the past performance, drawbacks and suggests guidelines for
framing future policies to improve the performances.

Q 6. Classify small scale industries. Present their essentials features and goals.

Ans : The Fiscal commission, 1950 defined small scale industry as one which is operated mainly
with hired labour usually 10 to 50 hands. The Small Scale Industries Board defined small-scale

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industry as a unit employing less than 50 employees, if using power, and less 100 employees
without the use of power and with a capital asset not exceeding 5lakhs.

Types of small scale industries


Small-scale industries can be classified into five main types:
(1) Manufacturing industries: Industries producing complete articles for direct consumption and
also processing industries
(2) Feeder industries specializing in certain types of products and services, e.g. casting,
electroplating, welding etc.
(3) Serving industries covering light, repair and shops necessary to maintain mechanical
equipment.
(4) Ancillary to large industries, producing parts and components and rendering services.
(5) Mining or quarrying
According to the provision of Micro, Small and Medium Enterprise Act, 2006 this are classified
into two classes:
(1) Manufacturing Enterprises: The enterprise engaged in the manufacturing or production of
goods pertaining to any industry specified in the first schedule to the industries (Development
and Regulation) Act, 1951.
(2) Service Enterprises : The enterprises engaged in providing services and defined in terms of
investment in equipment.
Enterprises engaged in the manufacture or production, processing or preservation of goods is
specified as follows:
(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed
25 lakh.
(ii) A small enterprise is an enterprise where investment in plant and machinery is more than 25
lakh but does not exceed 5 crore.
(iii)A medium enterprise is an enterprise where investment in plant and machinery is more than 5
crore but does not exceed 10 crore.

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Essential features
(1) A small or micro enterprise is generally one-man show. Here the activities of an enterprise
are carried out by one of the partners or directors.
(2) Here the owner is himself/herself a manager also. Thus these units are managed in a
personalized fashion.
(3) Compared to large units, a micro industrial unit has a lesser gestation period
(4) The scope of operation of micro and small industrial undertaking is generally localized
catering to the local and regional demands.
(5) Micro units use indigenous resources and therefore, can be located anywhere subject to the
availability of these resources like raw materials, labour etc.
(6) Micro enterprises are fairly labour intensive with comparatively smaller capital investment
than larger units.
(7) Using local resources, micro enterprises are decentralized and dispersed to rural areas. Thus it
promotes more balanced regional development and provides rural employment as well as prevent
the spread of urbanization.
(8) They are more change susceptible and highly reactive and receptive to socio-economic
conditions. They are more flexible to adapt changes.

Goals of small-scale industry


(1) To generate immediate and large scale employment opportunities with relatively low
investment.
(2) To eradicate unemployment problem from the country.
(3) To encourage dispersal of industries to all over the country covering small towns, villages
and economically lagging regions.
(4) To bring backward areas too in the mainstream of national development.
(5) To promote balanced regional development in the whole country.
(6) To ensure more equitable distribution of national income.
(7) To encourage effective mobilization of countrys untapped resources.
(8) To improve the level of living of people in the country.

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Q7. State the action-phase of Corporate Social Responsibility. What are the justifications for
the corporates to take social responsibility?

Ans: Business Corporation runs within the society. Just like a citizen, business as a corporate
citizen has an obligation towards the society to reciprocate for what it receives from the society.
This is known as social responsibility of business or corporate social responsibility. Holme and
Watts have defined it as A continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce and
their families as well as of the local community and society at large.
Keith Davis defined social responsibility of business as Social responsibilities refer to the
businessmans decisions and actions taken for reasons at least partially beyond the firms direct
economic or technical interest. Carroll and Buchholtz defined it as Corporate social
responsibility encompasses the economic, legal, ethical and philanthropic expectations placed on
organizations by society at a given point of time.

Strategy of Corporate Social Responsibility


The four strategies/ action-phase or action-phase of corporate social responsibility
(1) Reaction: At the first instance, the corporation denies its responsibility toward society
arguing that this is the responsibility of the government to take care of social issues. The purpose
of corporation is essentially to maximize its profit and profit only benefits society.
(2) Defense : Corporation may admit its responsibility for social issues but tries to avoid as much
as possible or tries to discharge the minimum social responsibility till it does not adversely affect
it, also called enlightened self-interest.
(3) Accommodation : Corporation admits and accepts its responsibility toward society and
discharges the same as demanded by different stakeholders.
(4) Proaction : This is the enlightened stage when corporation seeks to discharge social
responsibility by going beyond normal rules and norms set at this regard. That is, corporation
tries to do more for social issues than are expected of it.

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Forms of corporate social responsibility


According to Carroll, there are four responsibilities:
(1) Economic responsibility: A corporation has to meet its economic responsibilities in terms of
reasonable return to investors, fair compensation to employees, goods at fair prices to customers
etc.
(2) Legal responsibility : This responsibility demands that businesses abide by the law of land
and play by the rule of the game.
(3) Ethical responsibility : These responsibilities refer to obligations which are right, just and fair
to be met by corporation. The conduct of corporations that goes beyond law and contributes to
social well-being is called ethical.
(4) Philanthropic responsibility : It includes improvement in the quality of life of employees,
local communities and society at large. Making donation, building recreational facilities for
employees, support educational institution etc ate the examples of this responsibility.

Justification for corporate social responsibility


(1) Corporations perceived as being socially responsible might be rewarded with extra and/or
more satisfied customers, if irresponsible, may result in rejection or boycott by customers.
(2) Research reports that employees are attracted to and even become more committed to
corporation that shows socially responsible behaviour.
(3) Corporation that commit to social actions and programmes may also forestall legislation and
ensure greater corporate independence from government.
(4) Making positive contribution through socially responsible behaviour to society might be
regarded as a long-term investment in creating an improved and stable business context to do
business.
(5) Corporation through their actions cause some social problems like pollution etc and hence
they have a moral responsibility to solve these problems caused by them and also make efforts to
prevent such problems in future.
(6) Corporation as social actors uses social resources which are often scarce. Hence, they should
use these resources in responsible manner for the benefit of the society.

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(7) Corporate activities of one type or other like providing products and services, employment to
workers, and so on, have social impacts be positive or negative or neutral. Hence, corporation is
responsible to own the responsible to own the responsibility of these impacts.

Q8. Define Non-Verbal Communication. Categorize the elements of visible code.

Ans : Non-verbal communication refers to all external stimuli other than spoken or written
words and including body motion, characteristics of appearance, characteristics of voice and use
of space and distancing. All these non-verbal clues taken together are also known as body
language.

An attempt has been made to make a systematic study of elements which are visually perceived
and their role in communication. That is why these elements are collectively termed as visible
code. The elements of visible code are as follows:

(1)

Personal Appearance: Personal appearance creates the first impact on the audience. Ones

appearance may put the audience into a resistant or even a hostile attitude or induce in them a
receptive mood which is essential for the success of communication. Partly because of this some
dress code is prescribed by some institution. Type of dress and physical appearance are
important in interview, convocation etc.
(2)

Posture : Posture also conveys a wealth of meaning in an economical way. It is an

important part of body language and refers to the way one stands, sits and walks. The movement
of the body, the position of hands and legs and other parts of the body reveal an individuals
personality- whether he is vibrant, alive and dynamic, nervous and confident and self-assured. A
good speaker stands tall, feet together with the weight directly over the instep keeping his chin
on a line parallel to the floor or at right angles to the backbone. A drooping shoulder and a
protruding stomach indicate that the speaker is discouraged, tired and worn out. While different
situations will demand different sitting postures, one should keep ones back straight from waist
up, both feet should be on the floor, one slightly in front of other. The abdominal muscles should
be pulled in. the chest should come out in line. The walking posture is also important. For

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walking gracefully, leg movement should be free from hips, feet should be lifted from the floor,
and walking should be in straight line.
(3) Gestures: Gestures play a significant role in making the communication effective. Playing
with a ring, twisting a key-chain or clasping ones hand tightly robs a speaker of the
effectiveness of his communication. Sometimes gestures are used to communicate short message
such as yes, no, come in etc. To learn and to make appropriate gestures it would be useful
to practice before a mirror, seeking guidance from friends and colleagues who are considered
effective communicator.
(4)

Facial expression: Of all the body parts, the face is the most expressive. A smile

(friendliness), a frown (discontent), raising the eyebrows (disbelief), or tightening the jaw
muscles (antagonism) can add to the meaning being conveyed through verbal means. A wooden
expression on the face may prejudice the listeners whereas brightness in the eyes may keep their
interest sustained and also evoke an enthusiastic response. Biting the lips, raising the eyebrows at
regular intervals or blinking the eyes too often can certainly mar the smooth flow of
communication.
(5) Eye contact : It is said that eye is an extension of the brain and a window of the soul. Eye
contact between speaker and listener tells whether the speaker is sincere and also whether the
listener is interested. Eye contact is a mean of gaining feedback, enabling the communicator to
alter, adjust and reframe his message while transmitting it.
(6) Space distancing: Each communicator maintains a personal territory around himself. In
social condition, a zone ranging from 4 to 12 feet is maintained. This is called social distance. In
public gatherings the distance between the audience and the communicator is much greater- it
may range from 12 to 30 feet depending upon many other considerations. Space distancing
differs from culture to culture. In heightened emotional states of mind, the normal distancing is
ignored.