Explanation

• Public policy is what the government chooses to do or not do.
• It includes decisions, actions, and deliberate inactions taken by the government.
• Public policy addresses public problems and societal needs.
• It may involve laws, regulations, programs, or government decisions.

Last verified on 13-08-2026

Explanation

• Public Choice Theory uses economic analysis to study public-sector decision-making.
• Applies economic assumptions (self-interest, rationality, incentives) to political behavior
• Examines voters, politicians, and bureaucrats as rational actors

Additional information

Classical and Bureaucratic theories focus on structure/roles rather than economic analysis as their method.

Last verified on 13-08-2026

Explanation

• Civil society is included in New Public Governance (NPG).
• NPG emphasizes cooperation among the government, private sector, and civil society.
• It focuses on networks, partnerships, participation, and collaboration.

Last verified on 13-08-2026

Explanation

• Market power exists when a firm can set price above marginal cost.
• It means the firm has the ability to influence the market price.
• Under perfect competition, firms generally cannot set price above marginal cost.
• Market power is commonly associated with monopoly and imperfect competition.

Last verified on 13-08-2026

Explanation

• Internal Management Accounts are NOT normally presented at an Annual General Meeting (AGM).
• Annual Financial Statements are presented to shareholders at the AGM.
• The Auditor’s Report is also presented as part of the annual reporting process.
• The Director’s Report provides information about the company’s performance and affairs.
• Internal management accounts are mainly prepared for internal decision-making and management use.

Last verified on 13-08-2026

Explanation

• A P/E ratio of 50 generally indicates a high valuation.
• The P/E (Price-to-Earnings) ratio compares a company's share price with its earnings per share.
• A P/E of 50 means investors are paying Rs. 50 for every Rs. 1 of current earnings.
• A high P/E may indicate high growth expectations or that the stock is relatively expensive.

Last verified on 13-08-2026

Explanation

• Decision-making which is too simplistic means choosing among alternatives without full analysis.
• It involves making a decision without carefully examining all relevant information.
• Such decisions may overlook risks, consequences, and better alternatives.
• Effective decision-making generally requires evaluating available information and alternatives.

Last verified on 13-08-2026

Explanation

• Market power: influencing price above the competitive level
• Firm has some ability to affect its product's market price
• Usually linked to limited competition
• Enables charging above the competitive price

Last updated on 25-08-2026 by NS

Explanation

• The organizing function is related to assigning duties, allocating resources, and structuring the organization.
• It determines who will do what and how tasks will be coordinated.
• It involves arranging people, authority, responsibilities, and resources.

Last verified on 13-08-2026

Explanation

• The concept of Politics-Administration Dichotomy was given by Woodrow Wilson.
• Woodrow Wilson introduced the idea in his famous 1887 essay, “The Study of Administration.”
• He argued that politics and administration should be treated as separate spheres.
• Politics focuses on policy-making, while administration focuses on policy implementation.

Last verified on 13-08-2026