Business Functions

Business Function is the sum total of all activities carried on by all the business entities to create a product or deliver a service. Business organizations often lay down specific rules for business activities to make sure that activities are completed efficiently and economically.

STRATEGY
 "Strategy can be defined as the direction and scope of an organisation over the long term. This direction and scop achieves advantage for the organisation by configuring organization resources within challenging environment, to meet the needs of markets and to fulfill stakeholder expectations."
 
 BACKGROUND OF STRATEGY
(i)        The term strategy is derived from the Greek word 'Strategies' which means 'the art of the general'.
(ii)       Concept of Strategy was primarily used in military science where it implies the plan to win the battle.
(iii)      In business context strategy is a plan specially designed to match the potential of competitors.
(iv)     It reflects managerial response to changes In business environment.
 
PLANNING
Planning is defined as deciding in advance what is to be done, when is to be done, where is to be done, how is to be done, and by whom it is to be done. Planning is a predetermined course of action which is aimed at achieving a specified goal. Planning is an intellectual process characterized by thinking before doing. It is an attempt on the part of manager to anticipate the future in order to achieve better performance.
 
BUDGETARY CONTROL
With the help of budget, an individual is able to find out how much money they are taking in during a given period, and figure out the best way to divide it among a variety of categories. While making a personal budget, one can make a budget of expenses in a month to be incurred within given salary.
BUDGETING- It is a formulation of plans for future period. It is a method of formulating budgets.
BUDGETARY CONTROL- It is a technique where standard is set, so that it can be compared with actual performance.

FEATURES OF BUDGETARY CONTROL
·         Financial statement
·         Prepared for future control period.
·         It is a goal oriented.
·         Its components are Income, Expenditure , and employment of capital.
 
ADVANTAGES OF BUDGETING
·         Budgeting focuses on specific targets.
·         Budgeting is a source of motivation to employees.
·         Budgeting helps in utilization of resources.
·         It helps in achieving co-ordination.
·         It facilitates management by exception.
 
RESEARCH AND DEVELOPMENT
Research and development (also known as R & D) means discovering and developing new knowledge about products, processes, and services, so that this knowledge can help to create new and improved products, processes, and services that fill market needs.
 
These online MCQ Mock tests and MCQ questions includes all main concepts of the chapter in CS foundation Business Environment and Entrepreneurship

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