Any activity is called an economic activity when it is done with a view to earning money. The motive of a business is to earn profit primarily. However, there are some other objectives as well like increasing market share, improvement in productivity, employee satisfaction, consumer satisfaction, social objectives, but the main and basic objective of a business is to make profits. Therefore, it is called economic activity.

For legal consultancy and chartered accountancy firm, partnership firm will be more suitable because it has:
(i) Ease of formation and closure
(ii) Balanced decision making
(iii) More funds
(iv) Sharing of risks
(v) Maintain secrecy

Various telecom services available for enhancing business are as follows:
(a) Cellular Mobile Services: These companies provide all types of telecom services like voice and non-voice messages, data services, PCO connectivity etc.
(b) Radio Paging Services: It is one way information broadcasting solution and has spread its reach to a large area. It includes services including tone only, numeric only and alpha/numeric only.
(c) Fixed Line Services: These services utilise any type of network equipment connected through fibre optic cable laid across the length and breadth of the country.
(d) Cable Services: These are linkages and switched services within a license area of operation to operate media services.
(e) VSAT Services: VSAT stands for Very Small Aperture Terminal. It is a satellite based communication service which is highly flexible and reliable communication solution in urban as well as rural areas. It is being used for tele-medicine, newspaper online, tele-education, online trading, e-banking etc.
(f) DTH Services: DTH stands for Direct to Home. It is also a satellite-based service provide by cellular companies which allows one to receive media services through a satellite with the help of a small dish antenna and a set up box.

Following are the major ethical concerns involved in outsourcing:
(a) Confidentiality: When a company outsources any of its functions, it has to share a lot of information and knowledge with outsourcing partner. He may not preserve the confidentiality. If company adopts outsourcing of complete processes or products, there is further risk that outsourcing partner may start his own business which may increase competition.
(b) Sweat Shopping: The firms which opt for outsourcing aim at lowering their costs, try to get maximum benefit from the low cost manpower of the host countries. Secondly, such works are outsourced which do not build much of competency and ability of outsourcing partners. So, they build blue collar workers by handing over doing skills rather than creating white collar workers by transferring thinking skills.
(c) Using Child Labour and not following Labour Laws: Outsourcing is engaging child labour and women in the factories. Moreover, there exists wage discrimination on the basis of sex of the worker. Workers are exploited by giving less than minimum wages.
(d) Resentment in the Countries: When MNCs contract out manufacturing, marketing, accounting, R and D etc. to developing countries, it may create resentment in home country. The people from developed countries may not like that the jobs which they could get have been transferred to developing nations for cost cutting.

Promoter is a person who conceives the idea of starting a business, examines the feasibility of idea, assemble various resources, prepare necessary documents and perform other activities needed to commence the business.
Functions of a promoter:
1. Identification of business opportunity;
2. Feasibility studies: the following feasibility studies may be undertaken:
(a) technical feasibility 
(b) financial feasibility
(c) economic feasibility;
3. Name approval;
4. Fixing up signatories to the Memorandum of Association;
5. Appointment of professionals;
6. Preparation of necessary documents.

Yes, I agree that Multinational Companies have done more harm than good. It is clear from the following disadvantages which it is creating for the economy.
1. It disregards national priorities.
2. It leads to creation of monopoly.
3. It leads to depletion of natural resources.
4. It leads to technology obsolete .
5. It creates threat to national sovereignty.

Three m's are required for setting up any business: men, money and machines:
For e-business some additional sources are required. It needs a website with allotted cyberspace. More is the cyberspace, more is the cost of website and vice-versa. Space requirement depends on scale of operations and how interactive a website is.

Nations trade because of following reasons:
(a) Unequal distribution of natural resources:
Resources are unequally distributed in natural resources. Some countries are abundant in one commodity and scarce in other while opposite is true for some other country. It makes a case for international trade and exchanging abundant commodity with scarce commodity by nations.
(b) Unequal availability of factors of production:
Different nations are endowed with different factors of production which includes land, labour, capital and entrepreneurship. For example, India is a labour abundant country. Therefore, it is advisable for India to produce such commodities which use labour intensive methods and exchange it for those which use capital-intensive methods. USA is a capital abundant country. Therefore, nations need to trade.
(c) Theory of Comparative Cost Advantage:
Due to these factors, some countries are in an advantageous position in producing selected goods and services which other countries cannot produce that effectively and efficiently and vice-versa. Consequently, each country finds it advantageous to produce those selected goods and services that it can produce more effectively at home and importing those goods in which other nations have a comparative cost advantage.
(d) Geographical Specialisation:
The international business as it exists today is the result of geographical specialisation. Even within a country, each state specialises in those goods for which it is geographically more suitable. Similarly, each nation specialises in those goods in which it is specialised as per availability of resources and exchanges it for other goods and services in foreign market.
(e) Cost minimization principle of firms:
Firms get involved in international business to minimise their costs and maximise their profits.

Given below are the areas where small businesses feel threatened from global competition:
(a) It is difficult to maintain quality standards, technological skills, financial credit worthiness, managerial and marketing capabilities of the large industries and MNCs.
(b) They have to face competition from giant sized MNCs along with medium and large scale enterprises. It brings cut throat competition for them.
(c) There is limited access to markets of developed countries because of stringent requirements of quality certification like ISO: 9000 etc.

The following are the major affiliated bodies of the World Bank.
(a) IBRD: The International Bank for Reconstruction and Development (IBRD) was established in 1945 to assist in the reconstruction of war affected countries. It mainly aims at facilitating the development of the poor nations of the world.
(b) IFC: The IFC, or the International Finance Corporation, was formed in 1956 as a separate legal entity to provide finance to the private sector in developing nations. The IFC is part of the World Bank Group. It has its own funds and functions. It is managed independently.
(c) MIGA: MIGA refers to the Multinational Investment Guarantee Agency. It was established in April 1988 with the objective of encouraging foreign direct investments in the less developed countries, insuring investors against political and noncommercial risks, providing advisory services, etc.
(d) IDA: The IDA, or the International Development Association, was established in 1960. Its basic objective is to provide loans and grants at concessional rates to countries whose per-capita income is very low. The loans provided by the IDA have high flexibility.

4G is abbreviated form of fourth generation, is the fourth generation of mobile telecommunication technology, succeeding 3G.

Contract manufacturing can take three forms:
(a) Getting produced certain parts of final products:
In case of automobiles or purses or shoes some parts are got manufactured from foreign countries which are used for the production of final products later.
(b) Assembly of components into final products:
In case of electronic items, different parts are assembled at that country where they are to be sold.
(c) Complete manufacture of the products:
In some cases, commodities like garments a contract is given for complete manufacturing and products are sold in brand name of foreign companies.

Social responsibility of business towards its shareholders or investors is most important of all other obligations.
If a business satisfies its investors, they are likely to invest more money in a project. As a result, more funds will flow in and the same can be utilized to modernise, expand and diversify the existing activities on a larger scale. Happy financiers can fulfill the rising demand of funds needed for its growth and expansion.
1. They need to give a fair return to shareholders.
2. They need to give true and fair information to shareholders.
3. They need to give them proper opportunity to participate.

Honesty is missing in this case and the principle of utmost good faith is violated and hence the person's beneficiary cannot get the claim for his policy.