Question

Match the correct pairs.

Group 'A'	Group 'B'
a) Privatization b) Internal Environment c) Liberalization d) Political Environment e) Globalization	1) Unlimited Liability 2) Supreme Court Judge 3) Socialism 4) World Economy 5) Disinvestment 6) Delicensing 7) National Economic Relations 8) National Economy 9) Judicial System 10) Integration of Activities

Answer 1

Group 'A'	Group 'B'
a) Privatization b) Internal Environment c) Liberalization d) Political Environment e) Globalization	5) Disinvestment 1) Unlimited Liability 6) Delicensing 9) Judicial System 10) Integration of Activities

Explanations:
a) Disinvestment implies sale of equity and strategic sale of public sector units (PSUs) to the private sector. It is a step taken towards privatisation, i.e. assigning a greater role to the private sector and a gradual transfer of ownership (or management) of state-owned enterprises to private sector enterprises.

b) Unlimited liability is a factor that affects the working of a business environment to a large extent. This is because it is a part of the internal environment of a business. Internal environment includes new entrants, suppliers, buyers and other liabilities of business.

c) Delicensing was a step taken towards liberalisation. Under this, the number of industries under compulsory licensing was reduced to just six. That is, a licence was required for the establishment of a new business in only six industries.

d) Political environment affects business activity. It comprises the legislature, executive and judiciary. The judicial system includes the decisions of court. For example, an order passed by the Supreme Court could have positive or negative impact on the political environment.

e) Globalisation means integrating the activities of different countries, such that there is free flow of ideas, technologies, capital, goods, services, etc. Integration of activities, means that there is a merger of markets of different countries, such that anyone can buy goods from anywhere in the world.