Correct Answer: Both statements are true.
   

Solution : The correct answer is (a) Both statements are true.

Statement 1 is true. The Foreign Exchange Regulation Act (FERA) was enacted in India in 1973 to regulate foreign exchange transactions, control capital flows, and manage foreign trade. It aimed to ensure the proper utilization of foreign exchange resources and prevent illegal transactions.

Statement 2 is also true. FERA was replaced by the Foreign Exchange Management Act (FEMA) in 1999. The introduction of FEMA brought significant changes to the regulatory framework governing foreign exchange transactions in India. It aimed to liberalize and simplify foreign exchange regulations, aligning them with the changing economic policies and facilitating foreign investments.

Therefore, both statements are true. FERA was enacted to regulate foreign trade, and it was later replaced by FEMA in 1991.

Correct Answer: Both assertions and reasons are correct, and the reason is the correct explanation of the assertion.

Solution : The correct answer is (a) Both assertions and reasons are correct, and the reason is the correct explanation of the assertion.

The assertion that scientific management principles aim to increase efficiency through job specialization is correct. Scientific management emphasizes breaking down work into specialized tasks to improve efficiency and productivity by allowing employees to focus on specific tasks.

The reason provided, stating that it allows employees to focus on specific tasks, leading to expertise, is also correct. Job specialization in scientific management does indeed enable employees to concentrate and become experts in their specific tasks, which enhances efficiency and productivity.

Correct Answer: Foreign Exchange Management Act

Solution : The correct answer is the Foreign Exchange Management Act.

The Foreign Exchange Regulation Act (FERA) in India was replaced by the Foreign Exchange Management Act (FEMA). FEMA came into effect on June 1, 2000, and it marked a shift from the stringent regulations of FERA to a more liberalised and market-oriented approach to managing foreign exchange in the country. FEMA focuses on facilitating external trade and payments rather than regulating and controlling foreign exchange transactions.

Correct Answer: Setting organizational goals and strategies

Solution : The correct answer is (c) Setting organizational goals and strategies

Planning in management involves defining the organization's goals and objectives, and determining the strategies and actions necessary to achieve them. In the context of a retail business like ABC Retailers, this would include setting goals related to providing a wide range of trendy clothing options and achieving specific financial and operational objectives, and then creating strategies to realize those goals.

Correct Answer: Securities and Exchange Board of India
 

Solution : The correct answer is (a) Securities and Exchange Board of India

The full form of SEBI is Securities and Exchange Board of India. SEBI is the regulatory body in India that oversees and regulates the securities market, protecting the interests of investors and promoting the development and regulation of the securities market.

Correct Answer: Time study

Solution : The correct answer is (b) Time study

Time study, a technique in scientific management, involves measuring the time taken to complete a specific task accurately. It aims to analyze and determine the standard time needed to perform a task efficiently using a prescribed method. ABC Manufacturing implementing time study aligns with their goal of standardizing and optimizing work processes, as it helps in understanding and improving the time required for various tasks, ultimately enhancing productivity and efficiency.

Correct Answer: Taking corrective financial action.

Solution : The correct answer is (d) Taking corrective financial action.

The last step in the process of controlling for XYZ Corporation would be to take corrective financial action based on the comparison of financial results with targets. After comparing the actual financial performance with the predetermined targets, if there are any deviations or discrepancies, the management team would need to take corrective actions to address these issues and bring the financial performance back in line with the desired targets. This step involves making adjustments, changes, or improvements to ensure that financial goals are met and profitability is optimized.

Correct Answer: Setting objectives and goals
  

Solution : The correct answer is (a) Setting objectives and goals

Setting objectives and goals is typically the initial phase in the planning process. This step involves clearly defining what the company aims to achieve and outlining the desired outcomes. By establishing specific objectives, XYZ Manufacturing Company can provide direction for the subsequent planning steps, such as identifying potential risks, allocating resources, and evaluating alternatives. Clear goals will help guide the development of strategies and action plans to revamp their production processes and regain market share.

Correct Answer: Extends throughout the organisation 

Solution : Planning is required at all levels of the management and in all types of organisations. It is not a function restricted to top level managers only but planning is done by managers at every level. That why pervasiveness of planning indicates that planning extends throughout the organisation.
Hence, option 2 is the correct answer.

Correct Answer: Cooperation not individualism

Solution : According to this principal there should be corporation between management and workers instead of individualism. Competition should be replaced by cooperation.

Hence,option B is correct.