2. What is channel of distribution? Discuss the various factors which influence the choice of channel of distribution. (20)
Channels of Distribution | |
A channel of distribution or trade channel is defined as the path or route along which goods move from producers or manufacturers to ultimate consumers or industrial users. In other words, it is a distribution network through which producer puts his products in the market and passes it to the actual users. This channel consists of :- producers, consumers or users and the various middlemen like wholesalers,selling agents and retailers(dealers) who intervene between the producers and consumers. Therefore,the channel serves to bridge the gap between the point of production and the point of consumption thereby creating time, place and possession utilities. |
3. (a) “One man control is the best in the world” comment. "one man control is the best in the best in the world if that man is big enough to manage everything"because if one only owner in sole proprietorship can control every situation and can bear all the risk and also can manage everything than he / she is the one who can manage or handle every good or bad situation in his or her life. But in todays modern generation its not like this, if you see any where than there would be any business or any job we could see in partnership or there would be two or more owner of that business or job. And in that job or business everything is shared between the all owners of that. risk is also bear not only by one owner but by all the owner it is shared. for example:suppose there are three owner in any business than if any one had done any thing wrong in passing some information about how there business is, than he alone dont have to bear the risk but because of him they both also have to bear the risk.In this risk bearing is also limited for one, because he alone dont have to bear all the the risk. At last but not the least i would say heads off to the people who is the only owner of the business or any thing and who can bear all the risk without any one 's help and wish they would achieve there goal in there life
(b) What is stock exchange? Explain its various functions. (10+10) Stock Exchange (also called Stock Market or Share Market) is one important constituent of capital market. Stock Exchange is an organized market for the purchase and sale of industrial and financial security. It is convenient place where trading in securities is conducted in systematic manner i.e. as per certain rules and regulations. It performs various functions and offers useful services to investors and borrowing companies. It is an investment intermediary and facilitates economic and industrial development of a country. Stock exchange is an organized market for buying and selling corporate and other securities. Here, securities are purchased and sold out as per certain well-defined rules and regulations. It provides a convenient and secured mechanism or platform for transactions in different securities. Functions of a Stock Exchange
The efficient functioning of a stock exchange creates a conducive climate for an active and growing primary market for new issues. An active and healthy secondary market in existing securities leads to positive environment among investors. The following are some of the important functions of a stock exchange. * Providing Liquidity and Marketability to Existing Securities: The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. It gives investors the chance to disinvest and reinvest. This provides both liquidity and easy marketability to already existing securities in the market. * Pricing of Securities: volatility/”title=”handling the Share price fluctuations” >Share prices on a...