ASSIGNMENT DRIVE SPRING 2014
PROGRAM Bachelor of Business Administration
SEMESTER IV
SUBJECT CODE & NAME - BBA404-Small Business Management
BK ID B 1715 CREDIT & MARKS 2 Credits, 30 marks
You can pay in 6 installment of Rs 125-125 if u have any doubt.
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Q.No 1 Define small business and explain its characteristics.
(Definition of small business- 5, Characteristics of small business) 5= 10
Answer: The Micro, Small and Medium Enterprise Development Act, 2006 (MSMEDA) classifies all small businesses as given below. In case of enterprises engaged in the manufacture or production of goods pertaining to any industry specified in the first schedule to the Industries
2 Explain Porter’s five forces model. (Explanation) 10
Answer:
Five Forces Analysis helps to understand the power position of the firm and pin-points strengths and weaknesses in a company and discovers opportunities or threats within the industry.
3 Explain various sources of Working Capital. (Explanation) 10
Answer:
Sources of Working Capital:
1. Trade credit
Normally goods are not bought against cash. Generally suppliers extend credit ranging from 30 to 90 days for making payment. This is an important source of working capital finance. Prompt payment and healthy financial picture of a company enhance its creditworthiness. A larger amount of trade credit can be obtained by maintaining credit discipline.
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