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B.B.A. LL.B. (Five Years) Sem 1 Business Environment 2026 Jan Question Paper with Solutions

KSLU Solved Question Papers

Business Environment

Previous Year Question Paper with Solution

B.B.A. LL.B. (Five Years) · Sem 1

2026 Jan Examination

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Mumbai

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First published on munotes.in on 9 November 2026.

Published by munotes.in, Mumbai.

Model answers written and edited by the munotes.in editorial desk.

Passages from this volume may be quoted, in print, online or by an AI system, with credit: name munotes.in and link to this volume's page. The volume may not be reproduced as a whole. Full terms at munotes.in/content-license.

munotes.in is an independent study resource for students of Karnataka State Law University. It is not affiliated with Karnataka State Law University, and is not endorsed by it.

The University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.

The question paper reproduced here is the paper as set by Karnataka State Law University at the 2026 Jan examination.

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Contents

The questions below are the paper as Karnataka State Law University set it at the 2026 Jan examination, in the order it was set.

MarksPage

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MarksPage

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The Paper as Set

The questions in this volume are the questions asked at the 2026 Jan examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.

Duration 3 hours  ·  Total marks 80  ·  20 questions answered

Instructions printed on the paper

  • N.B. (1) Answer all five Units. (2) One essay type question and short note/problems is compulsory from each unit. (3) Figures to the right indicate marks. (4) Answer should be written either in English or Kannada completely.

How to use this volume

Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.

Read the original question paper

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Q1

Unit I

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(a)Define Business. Explain the objectives of business.[10]

Answer

For full marks, cover: a definition of business, in your own words and from a writer; its essential features in brief; the objectives grouped as economic, social, human, national and global; a short worked example; a table; and a conclusion on how profit and the other objectives fit together.

Meaning of business

Business is any regular economic activity in which goods or services are produced, bought or sold for a price. Its aim is to earn a profit. The word comes from "busy-ness", the state of being busy. In economics, it means being busy with activities that create wealth.

Two classic definitions are often quoted:

  1. L. H. Haney described business as human activities directed towards producing or acquiring wealth through buying and selling of goods.
  2. Peter Drucker, in The Practice of Management (1954), wrote: "There is only one valid definition of business purpose: to create a customer."
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Haney stresses wealth. Drucker stresses the customer. A good answer keeps both ideas. A business earns wealth only by serving customers well.

Essential features of business

  1. Economic activity. It is done to earn money, not out of love, duty or charity.
  2. Production or exchange. It makes goods or provides services, or buys and sells them.
  3. Regularity. A single sale of an old car by a private person is not business. Buying and selling cars every day is.
  4. Profit motive. Profit is the reward for the effort and the risk.
  5. Risk and uncertainty. Demand, prices and costs may change. A business may suffer a loss.
  6. Satisfaction of human wants. A business succeeds only if people want what it offers.
  7. Creation of utility. It adds value by changing the form, place, time or ownership of goods.

Objectives of business

An objective is the end a business wants to reach. A modern business has several objectives at once. They are usually grouped under five heads.

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1. Economic objectives

  1. Earning profit. Profit is the main economic objective. It pays for growth and rewards the owners for their risk. A firm that makes losses year after year cannot survive.
  2. Creating customers. A business needs buyers. It must study their needs and offer the right product at the right price.
  3. Innovation. New products, better processes and new ways of selling keep a firm ahead of its rivals.
  4. Best use of resources. Men, money, machines and materials must be used without waste. This lowers costs and raises profit.
  5. Growth and expansion. A firm aims to increase its sales, its market share and its size over time.

2. Social objectives

These are the duties a business owes to society.

  1. Supplying goods of good quality at fair prices.
  2. Avoiding unfair trade practices such as hoarding, black marketing, adulteration and misleading advertisement.
  3. Creating employment.
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  1. Paying taxes honestly.
  2. Protecting the environment by controlling pollution and saving resources.
  3. Supporting the community, for example through schools, health care and help in disasters.

3. Human objectives

These concern the people who work in the business.

  1. Fair wages and good working conditions.
  2. Job security and chances of promotion.
  3. Training to develop skills.
  4. Participation of workers in decisions that affect them.
  5. Respect and job satisfaction, so that work is not only a means of earning money.

4. National objectives

  1. Producing goods the nation needs, in line with national priorities.
  2. Balanced regional development, by setting up units in backward areas.
  3. Earning foreign exchange through exports.
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  1. Helping self-reliance, by producing at home what the country imports.
  2. Supporting small industries through supply contracts and ancillary units.

5. Global objectives

In an open economy a business also aims to compete in world markets and to raise its products to international standards. It also aims to bring in new technology and ideas.

The objectives at a glance

GroupMain aimExample
EconomicProfit, customers, growthIncreasing sales by 10 per cent a year
SocialFair dealing with societySelling unadulterated food at a fair price
HumanWelfare of employeesPaying fair wages and training staff
NationalServing the countrySetting up a unit in a backward district
GlobalCompeting abroadMeeting export quality standards
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A worked example

Take a medium-sized biscuit maker in Hubballi.

  1. Its economic objective is to earn a profit and to win new buyers in other towns.
  2. Its social objective is to sell biscuits that are safe and correctly labelled.
  3. Its human objective is to pay its workers fairly and to keep the factory safe.
  4. Its national objective may be to buy wheat and sugar from local farmers and to employ local people.
  5. Its global objective may be to export to Gulf countries.

If it cheats on quality to raise profit, it may gain for a while. It will then lose customers, face complaints and may be punished under the law. So the other objectives protect the profit objective in the long run.

Is profit the only objective?

Older writers saw profit as the only aim of business. Today this view is rejected for three reasons.

  1. A firm that ignores society loses its goodwill and, in the end, its customers.
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  1. The law now requires some social duties. For example, larger companies must spend on corporate social responsibility under section 135 of the Companies Act, 2013.
  2. Profit is better seen as the reward for serving customers well, not as the only goal.

At the same time, a business is not a charity. Without profit it cannot pay wages, taxes or dividends, and it cannot grow.

Conclusion. Business is a regular economic activity of producing or exchanging goods and services for profit. In Drucker's words, its purpose is to create a customer. Its objectives are economic, social, human, national and global. Profit remains the central objective, because a business must survive and grow. But profit lasts only when the business also serves its customers, its workers and society. The modern view is a balance of objectives, not profit alone.

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The rest of the answers

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