What Improvements can be brought in MBA Education ?

>> November 28, 2009

Few days ago , I have started this blog after operating others like Accounting Education. I have tried to write contents relating to business environment topics in very simple language , so that all Indians who have admitted in MBA - Ist Semester   from non - commerce side ( from B.A. or B.Sc. ) can also understand different legal policies , laws and its provisions which  is also covered  in B.Com. level. For this , I have studied many referred books , so that contents will be useful for better preparation of examination of MBA . I have tried to write contents more realistic after reading referred books of experienced authors .

For improvement in MBA Education , it is the duty of lecturer and professors to explain more practical example relating to present business , so that this MBA education will become more practical .

I think examination should be more practical . MBA student should solve the business problem . Writing  the 5 answers  out of 10 Questions of MBA is not good examination for checking the talent of MBA students . If we want to make good MBA Scholars , then Shiksha ( Education ) should be more practical .

Even Assignment system is not good because , student can easily copy the contents from books or net and write it and get marks in internal assessment . If university want to give internal assessment , then MBA students should have to opportunity to go to Companies office , plant and factory and for some weeks and ask their work experience . A student who understood better in practically should give more internal assessment than one other .
Continue reading »

What is the NGO ? Discuss Its Type , Role And Legal Status ? Explain Various Methods in Which NGO Operates

Contents are covered under Business Environment of MBA Ist Semester 

Meaning of NGO 

NGO means non - government organisation. Any organisation who is doing non profit activity is called NGO . The aim to make NGO is to do social activities . These organisations do not involve in commercial activities . The source of fund may be private or govt. NGO collects fund through donation . Now , NGO are also known as private voluntary organisation . 

Continue reading »

What is ISO ? Explain its Standards ISO 9000 and ISO 14000 . Discuss Its Objectives , working and Versions

The following contents are covered under Business Environment of  MBA First semester 

Meaning of ISO

ISO means international standard organisation . In business environment , ISO word is so famous and International organisation provides standards to those business oraganisations who fulfill its conditions . It has
authority to issue certificate of quality management and quality environment . There are large numbers of business organisation who satisfy the conditions . They have  ISO certificate  .

ISO's official site is at the url  http://www.iso.org/iso/home.htm

ISO (International Organization for Standardization) is the world's largest developer and publisher of International Standards. This organisation has made by participation of all countries .Its central secretariat is in Geneva , Switzerland .It is NGO which helps to promote business by providing them solution of quality problems  .

Meaning of ISO 9000

This is the latest version of International organisation for standardisation which gives to those organisation who satisfy the following condition

  1. It fulfills the quality requirements of customers .
  2. It fulfills regulatory requirements .
  3. Customers satisfaction
  4. Continual improvement in quality management .
  5. Records should show how and where raw materials and products were processed, to allow products and problems to be traced to the source.
  6. You need to test and document whether the product meets design requirements, regulatory requirements and user needs.

Meaning of ISO 14000

ISO 14000 is standard certificate which gives to those business organisation who fulfill the conditions relating to quality environment . Quality environments means all measure to protect the environment from pollution .


  1. Company has minimized harmful effect on environment by proper control on waste and pollution.
  2. Achieve improvement in its environment  performance by planting the trees and other projects .
  3. ISO 9000 and ISO 14000 are given after taking test of products who apply for same and ISO takes also some fees for issuing the certificate . There is no guarantee , any quality of end products but almost  all ISO products are high quality .
  4. The certificate will be for three years and after this product will again review for giving certificate .

Objectives of ISO 9000 and ISO 14000

1. To Increase the goodwill of company

Main objective of getting these standards is to increase the goodwill of company. Customer can compare the quality of two companies , one is with ISO standard and other is without ISO standard . Goodwill may be in form of increase in sale or more promotion of product of company.

2. Control on Quality

After getting ISO standards , company has to control on quality  and it is the objective of ISO standards . ISO standard 9000 controls product's quality and ISO 14000 controls environment quality .

3. Revolution

After coming , ISO 9000 and ISO , 14000 companies  have started to label the product by eco labeling . Moreover awarness has come in the minds of company after ist ISO standard in 1987.

Working of ISO 

ISO 9000 is more powerful tool to get  confidence in market . Company can invite customers to check the quality before purchasing the products. It will only possible after implement ISO 9000 standards . Every product's package is with ISO 9000 and customer can understand its value .


  1. ISO 9001 : 1987
  2. ISO  9002 : 1987
  3. ISO 9003: 1987
  4. ISO 9000: 1987 , 1994 , 2000
  5. ISO 9000 : 2008
  6. ISO 9001 : 2008
ISO 14000 version

  1. ISO 14000 family version
  2. ISO 14001 : 2004 EMS 
  3. ISO 14020 ,14021 , 14022 , 14023 , 14024 , 14025
Continue reading »

FTDR Act 1992

>> November 26, 2009

Foreign trade development and regulation act was passed in 1992 . After this , old export control act 1947 was closed . All export and import are done by FTDR Act 1992 . FTDR Act is helpful to promote export
Continue reading »

Structure of Financial Institute in India

Following is the structure of financial institute in India .It has divided into two parts . One part is national financial institute and other part is state level financial institute .

Continue reading »

Development Banks

Definition of Development Bank 

A development bank is a financial institution which provides loan and other financial assistance to businessmen for development of enterprise .
Continue reading »

FEMA 2000

>> November 23, 2009

Definition of FEMA 2000

FEMA 2000 means Foreign exchange management Act 2000. Foreign exchange management act 2000 is very helpful law for development of foreign exchange market in India. It was passed in 1999 and came into effect from June 1, 2000 to entire country. After this foreign exchange regulation act ( FERA ) 1973 was closed . FEMA was most suitable for India corporate sector instead of FERA because almost all strict regulations of FERA were removed in FEMA .
Continue reading »

New Notification of Department of Telecommunications for National Security

After applying IT Act 2000 , Ministry of Communication and Information technology are taking many new steps for national security .
Continue reading »

Information Technology Act 2000

>> November 20, 2009

Introduction of Information Technology Act 2000

Information technology is one of the important law relating to Indian cyber laws. It had passed in Indian parliament in 2000. This act is helpful to promote business with the help of internet. It also set of rules and regulations which apply on any electronic business transaction.

Due to increasing crime in cyber space, Govt. of India understood the problems of internet user and for safeguarding the interest of internet users, this act was made.
Continue reading »

Main Provisions of Competition Act 2002

>> November 17, 2009

In 1969 Govt. has passed an act and it had given the name monopoly and restrictive trade practices (MRTP). It became popular with the name of MRTP 1969. This act has many provisions to control the
Continue reading »

Monopoly and Restrictive Trade Practice (MRTP ) Act 1969 and its Provisions

After 1947 , many big firms had entered in Indian economy and they were trying to operate business without any competitors . Govt. of India had understood the policy of big Corporate firms and for safeguarding the
Continue reading »

Presentation of Social Responsibility of Business

>> November 14, 2009

The following presentation shows the definition of social responsibility , arguments in favour and against and main social responsibilities .
Continue reading »

Fiscal Policy

Definition of Fiscal Policy 

Fiscal Policy is the main part of Economic Policy and Fiscal Policy's first word Fiscal is taken from French word Fisc  it means treasure of Govt. So we can define fiscal policy as the revenue and expenditure policy of Govt. of India .It is prime duty of Government to make fiscal policy . By making this policy , Govt. collects money from his different resources and utilize it in different expenditure . Thus fiscal policy is related to development policy . All welfare projects are completed under this policy

Continue reading »

Monetary Policy

>> November 13, 2009

Definition of Monetary Policy

Monetary policy is that part of economic policy in which central bank controls the cost and supply of money and credit by applying different techniques. It is also main function of central bank.
We all know, if supply and cost of money are not controlled. Then both are harmful for development of economy. In India RBI is sole institute who is taking steps to regulate money and credit by controlling its supply. Monetary policy regulates both volume and value of currency and credit.

Objective of Monetary Policy

  •      To control the supply of money.
  •     To control the cost of money and credit.
  •     Exchange stability 
  •      Full employment 

Instruments or technique of credit control / monetary policy:-

1. Bank Rate 

Bank rate is that rate which is charged by Central bank for issue loan to the member banks.  By changing it, central bank can control the credit. 

→ If Central bank increase this bank rate, all commercial banks will increase their interest rate by this loan become costly and flow of fund in the form of credit will decrease.

→ If central bank wants to expand credit, then Central bank will decrease bank rate, after this commercial bank can get advance and loan at cheap rate and by this way, they also decrease their interest rate. After this flow of cash in the form of loan will increases.

2. Open Market Operation 

Open market operation is the all action which is done by central bank for purchase and sale of member banks' security in open market. If RBI wants to contract the credit, then RBI will sell the security of member bank and member bank's flow of cash will stop. If RBI wants to expand credit in recession, then RBI will start to buy the security of member banks and member banks get cash and they can now use it for providing more loans to customers.

3. Cash Reserve Ratio / Statutory minimum reserve:-

Cash reserve ratio is the minimum percentage of the deposit to be kept as reserve by the banks with central bank. It can be used as the technique of monetary policy. By changing cash reserve ratio, RBI can contract or expand credit in Indian economy. 

→ If RBI wants to contract credit, and then RBI will increase this ratio. After this all banks have to keep more fund as reserve with RBI. So, they will decrease the amount of loan due to decrease the total fund available for enterprises. 

If RBI wants to expand credit, then RBI will decrease this ratio, after this all banks have to keep less fund as reserve with RBI. So, they will issue more credit to public. 

4. Changes in Marginal Requirement of loan:-

Marginal requirement is the difference between value of security and actual loan accepted by bank. Suppose a person wants to take loan of Rs. 80 , we has to give security of Rs. 100 then marginal requirement is Rs. 100 - Rs. 80  = Rs. 20 . 

→ If RBI wants to contract the credit , this rate will increase suppose , if RBI fixes it as 40 % , then customer can get loan of Rs. 60 after giving security of Rs. 100 . So , trend of getting loan will decrease . 

If RBI wants to expand the credit, this rate will decrease suppose, if RBI fixes it as 10% more people will take loan , if they get Rs. 90 in cash after giving security of Rs. 100 .

So , by this way RBI controls credit . 

5. Moral Persuasion / Inspiration 

RBI as central bank of country can control credit with moral persuasion. Under this persuasion, RBI can call a meeting of all commercial bank and give advice in discussion that they should not give loan for speculative purposes.

6. Rationing of Credit 

RBI has right to create ration of credit under monetary policy. It can be done by following way:-

  • To fix the amount of loan for a particular bank. 
  • To fix Quota for all banks. 
  • To fix Quota for different traders.

7. Regulation of consumer credit 

→ In case inflation, prices are increased. To control prices central bank contract credit to reduce the total amount of installment for payment. 

→ In case of deflation, prices are decreased to control prices central bank expand credit to increase the amount of installment. 
Continue reading »

Economic Policies

>> November 11, 2009

Definition of Economic Policies
All policies which are made for development of economy and its stability are called economic policies. Last year economic crisis and after coming its main roots, economic
Continue reading »

Transfer of Technology and its main method

>> November 9, 2009

Definition of Transfer of Technology

“Transfer of Technology means to sell the technology or to provide technology to other for getting money from that person. Technology includes skill, knowledge and new and fast production techniques and any
Continue reading »

Technological Environment

>> November 7, 2009

Definition of Technological Environment :-

“Technological Environment means the development in the field of technology which affects business by new inventions of productions and other improvements in techniques to perform the business
 work. "
Continue reading »

Social Responsibility of Business and Points in Favour and Against of it

>> November 4, 2009

Meaning of Social Responsibility of Business

Social responsibility is the duty of businessman to help the society to solve its major problems . Every enterprise is fully connected with society . He takes many things from society in the form of raw material ,
 work from employees and also pollute environment of society. After this , many social problems rise due to pollution . So businessman's prime duty is to support in the form of plantation near the area of factory providing free health facilities to employees and also donate some part of profit for welfare of poor community to uplift them . These days trends shows that almost all companies are taken steps for becoming responsible toward society .

Continue reading »

Social Environment of Business

>> November 3, 2009

Meaning of Social Environment

Social or Societary environment of business means all factors which affects business socially . Every business works in a society , so societies ' different factors like family , educational institutions and religion affects
business .

Continue reading »

About website

An educational site with 2,000+ articles, solutions, video-guides and tutorials .

Get Update on Mobile

Type svtuition.org in your mobile phone web browser for free access anytime, from any place.The content is designed specifically for cell phones and mobile devices.

Contact Us

Email : vinod@svtuition.org

Phone : +91-8557888436

Send an Email
Phone number and vCard
LinkedIn profile
Follow us on twitter