PGT Commerce Level-3 (HTEТ), Exam 2019

The Companies Act, 2013 contains provisions enabling registration of One Person Company so that entrepreneurs are in a position to avail the benefits of registered companies.
Act defines 'One Person Company' or OPC as a company formed for any lawful purpose with only one person as its member.

One person company is a private company with one person subscribing to the Memorandum of Association [constitution of the company] and signing the Articles of Association [Regulations for internal management] in order to comply with the requirements of the Act in respect of registration.
The Act provides that the letters (OPC) in brackets to be suffixed with the name of 'One Person Company', wherever its name is printed, affixed or engraved.

The Hawthorne studies were conducted on workers at the Hawthorne plant of the Western Electric Company by Elton Mayo and Fritz Roethlisberger in the 1920s.
The Hawthorne studies were part of a refocus on managerial strategy incorporating the sociopsychological aspects of human behaviour in organizations.

Functions of a central bank may include:

• implementing monetary policies
• setting the official interest rate used to manage both inflation and the country's exchangerate and ensuring that this rate takes effect via a variety of policy mechanisms
• controlling the nation's entire money supply
• the Government's banker and the bankers' bank ("lender of last resort")
• managing the country's foreign exchange and gold reserves and the Government bonds
• regulating and supervising the banking industry.

The GE matrix eliminates the majority of the inherent weaknesses of the BCG matrix by employing composite measures of business strengths and industry attractiveness.
With the GE matrix, a strategist may plot a business in any of nine positions, as opposed to the BCG's four positions. GE's matrix also includes a corresponding increase in the number of advisable strategies identified.
The GE matrix consists of nine cells of different colours that indicate appropriate strategies for different businesses or products. The vertical axis represents industry attractiveness while the horizontal axis represents the strength of the business or product. Both axes have high, medium, and low locations.

Poisson distribution is a discrete probability distribution and is used widely in statistical work. It was developed by the Frenchman, Simeon Poisson (1781-1840). This happens in cases where the chance of any individual event being a success is small.
The distribution is used to describe the behaviour of rare events, for example, the number of accidents on the road. All Poisson distributions are skewed to the right and that is the reason Poisson probability distribution is also known as probability distribution of rare events.

Thus, extention and contraction of supply or change in quantity supplied of a commodity is due to change in the price of the commodity itself. A change in quantity supplied is indicated by a movement along a particular supply curve.
An upward movement along a supply curve is called 'extension of supply', and a downward movement along a supply curve is called 'contraction of supply'.

Excеptions to the Law of Demand: There are certain cases where the law of demand gets violated. That is, there is a direct relationship between price and quantity demanded of a good. If price rises, demand also rises and vice versa. The situations where the law of demand does not hold arе:
1. Giffen goods: The good is named after Sir Robert Giffen (1837-1910). Giffen good is necessarily an inferior good with very high negative income elasticity of demand. The good is consumed by low-paid wage earners who spend a large proportion of their income to buy it.
2. Goods of status: The goods of status are named after Thorstein Veblen (1857-1929) as Veblen goods. Veblen goods are prestigious goods. They promote social presitge of the holder. Prof. Veblen gave the example of diamonds. Diamonds and other precious stones are all status goods. Higher more the demand for them. the price,
3. Expectation of price rise in future: Consumer's expectations about price affect their buying behaviour. If price rises and the buyer expects further rise in price then it causes increase in the quantity bought. The reverse also holds.
4. Demonstration effect: Sometimes, a section of society tends to imitate the consumption pattern of higher income groups or some popular film star. In this case, the law of demand gets violated because people demand more of that commodity which the upper class people are buying, even at higher prices.
5. Emergency: In case of emergencies like war, curfew, drought or famine, the law of demand does not hold. In such situations, there is general insecurity and fear of shortage of necessities. Hence, consumers demand more goods even at higher prices.
6. Uncertain Product Quality of Good: For some goods price act as signals of its quality. Example: Marble stone is available in many similar qualities but their prices vary drastically. People demand more of a good at higher price since it means better quality to them.
7. Snob Appeal: Certain items of historical, culture or sociological importance hae a Snob appeal. These are classic pieces of art, antique sculptures, original manuscript, etc.
Whenever these items are auctioned in the market, their demand rises with rise in prices. Thus, the law of demand gets violated due to the operation of Snob effect.
8. Brand Loyalty: This is another exception to the law of demand where consumers show some kind of attachment to the product due to brand loyalties.
The consumers like the product to such an extent that their demand does not fall even if their prices rise. Thus, for the law of demand to hold good, such brand loyalties should be ruled out.