Business Environment

National Institute of Business Management

Chennai - 020 THIRD SEMESTER MBA Subject : Business Environment

Attend any 4 questions. Each question carries 25 marks (Each answer should be of minimum 2 pages / of 300 words)

25 x 4=100 marks

1. Explain the characteristic features of a mixed economy. Ans: Main Features of Mixed Economy: Having understood the meaning of mixed economy; we are now in a position to bring out the main features or characteristics of such an economy. It will also be clear from these characteristics how a mixed economy functions. The following are the main characteristics of a mixed economy: (i) Co-existence of the Public and Private Sectors. The chief characteristic of a mixed economy is that in this economy both public as well as the private sector work mutually. They co-exist. Generally, the basic industries, the industries concerned with the production of defence equipment, atomic energy, engineering industries, etc., are put in the public sector. Main Features of Mixed Economy Having understood the meaning of mixed economy, we are now in a position to bring out the main features or characteristics of such an economy. It will also be clear from these characteristics how a mixed economy functions. The following are the main characteristics of a mixed economy: (i) Co-existence of the Public and Private Sectors. The chief characteristic of a mixed economy is that in this economy both public as well as the private sector work mutually. They co-exist. Generally,

the basic industries, the industries concerned with the production of defence equipment, atomic energy, engineer-ing industries, etc., are put in the public sector. On the other hand, the consumer goods industries, small and cottage industries, agriculture, etc., are generally given to the private sector. It may be borne in mind that the government does not work against the private sector. On the contrary, the government helps and encourages the private sector by providing them...