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 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
(i) The term
strategy is derived from the Greek word 'Strategies' which means 'the art of
(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
(iv) It reflects managerial response to changes
In business environment.
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.
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
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
Budgeting helps in utilization of resources.
It helps in achieving co-ordination.
It facilitates management by exception.
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
MCQ Mock tests and MCQ questions includes all main concepts of the chapter in
CS foundation Business Environment and Entrepreneurship