1) Multinational Coorporation is a large company that owns or regulate production across nations.
2) they set up offices and factories where they get favorable factore such as availability of raw materials,cheap skilled and unskilled labours,transport and market and most importantly liberalised(free of trade restriction) government policies.
eg:cargill foods ,ford motors etc.

This statement is true because planning is only a means to an end.Internal Limitations of Planning :

1. Planning Leads to Rigidity
   A specific plan made in an organisation clearly indicates the objective to be achieved and the ways of doing work. Since, a manager may not be able to change these plans, it leads to rigidity.
2. Planning may not Work in a Dynamic Environment
   Business environment consists of social, economic, legal and other factors that keep on changing. The organisation has to adapt itself to such changes. But, planning cannot assess future trends exactly and thus fails in a dynamic environment.
3. Planning Reduces Creativity
   It is an activity, which is done by the top management and the rest of the members just implement these plans. They are neither allowed to deviate from plans nor are permitted to act on their own. Due to this, much of the initiative or creativity inherent in managers or other members gets lost or reduced, and there is nothing new or innovative in the organisation.
4. Planning Involves Huge Cost
   It usually involves a lot of time, effort and cost of the managers. Collection of data, boardroom meetings, investigations and discussions with experts involve a lot of expenditure of the organisation. Sometimes, the cost incurred may not justify the benefit derived from the plans.
5. Planning is a Time Consuming Process
   Sometimes, plans to be drawn up take so much of time that there is not much time left for their implementation. This leads to failure of planning.
6. Planning does not Guarantee Success
   Success of planning rests on its implementation. Lack of proper implementation may lead to failure of planning. Even if a plan has worked earlier, it may not work again, due to changes in the external environment.

1. Formal Organization is an organisation in which job of each member is clearly defined, whose authority, responsibility and accountability are fixed. Informal Organization is formed within the formal organisation as a network of interpersonal relationship when people interact with each other.
2. Formal organisation is created deliberately by top management. Conversely, informal organisation is formed spontaneously by members.
3. Formal organisation is aimed at fulfilling organisation’s objectives. As opposed to an informal organisation is created to satisfy their social and psychological needs.
4. Formal organisation is permanent in nature; it continues for a long time. On the other hand, informal organisation is temporary in nature.
5. The formal organisation follows official communication, i.e. the channels of communication are pre-defined. Unlike informal organisation, the communication flows in any direction.
6. In the formal organisation, the rules and regulations are supposed to be followed by every member. In contrast to informal communication, there are norms, values, and beliefs, that work as a control mechanism.
7. In the formal organisation, the focus is on the performance of work while in the case of an informal organisation, interpersonal communication is given more emphasis.
8. The size of a formal organisation keeps on increasing, whereas the size of the informal organisation is small.
9. In a formal organisation, all the members are bound by the hierarchical structure, but all the members of an informal organisation are equal.

Directing means giving instructions, guiding, counseling, motivating and leading the staff in an organization in doing work to achieve Organizational goals. Directing is a key managerial function to be performed by the manager along with planning, organizing, staffing and controlling. From top executive to supervisor performs the function of directing and it takes place accordingly wherever superior – subordinate relations exist.Directing is a continuous process initiated at top level and flows to the bottom through organizational hierarchy.

Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.
Function of management:

1. Planning: Planning is the very first functions of management. Management helps in deciding the way ahead for any organisation. It involves deeply analysing the market trends and accordingly making moves and plans. Basically, it means setting goals and developing a method to achieve them efficiently.
2. Organising: Once a plan is laid out, it’s proper implementation lies somewhat in the next functions of management. This function helps in establishing authorities, dividing workloads, assigning responsibilities, grouping tasks and allocating resources.
3. Staffing: This simply means finding and building the appropriate staff. Until and unless the right people aren’t employed the correct completion of tasks will remain a distant dream. Hence this management function ensures that suitable staff is available when needed by the organisation for completion of tasks. Also known as human resource function, it involves recruitment, placement, selection and training.
4. Directing: This functions of management involve guiding the team towards the right direction by leading. motivating and encouraging them. Working in a positive environment of motivation and encouragement brings out the best in people. Hence a good manager makes sure to encourage or criticise his/her subordinates at suitable times to maintain an atmosphere of willingness to work.

Trading procedure :

1. Selection of a Broker: The first step is to select a broker, who will buy/sell securities on behalf of the speculator/investor. This is necessary because trading of securities can only be done through SEBI registered brokers, who are members of stock exchange. Brokers may be individuals, partnership firms and corporate bodies.
2. Opening Demat Account with Depository: The next step is to open a demat account. Demat (Dematerialised) account refers to an account which an Indian citizen must open with the depository participant (banks and stock brokers) to trade in listed securities in "electronic form.
   The securities are held in the electronic form by a depository. ‘Depository’ is an institution/organisation which holds securities (e.g. shares, debentures, bonds, mutual funds, etc) in electronic form, in which trading is done.
3. Placing the Order: The next step is to place the order with the broker. The order can be communicated to the broker either personally or through telephone, cell phone, e-mail, etc.
   The instructions should specify the securities to be bought or sold and the price range within which the order is to be executed. Only the securities of listed companies can be traded on the stock exchange.
4. Executing the Order: According to the instructions of the investor, the broker buys or sells securities. The broker, then issues a contract note. A copy of the contract note contains the name and the price of securities, names of the parties, brokerage charges, etc. It is duly signed by the broker.
5. Settlement: This is the last stage in the trading of securities done by the brokers on behalf of their clients. The mode of settlement depends upon the nature of the contract. Equity spot markets follow a T + 2 rolling settlement. This means that any trade taking place on Monday gets settled by Wednesday. Stock, exchange operates from Monday to Friday between 9:55am and 3:30pm. Each exchange has its own clearing house, which assumes all settlement risk

Decentralization means delegation of authority at every level. It is the even and systematic distribution of decision making authority to the lowest level of management. Under decentralization every employee working at different levels gets some share in the authority. Decentralization is a policy matter and managers plan in advance whether to go for centralized or decentralized policy.

Placement agencies and management consultant  :

These agencies provide nation-wide service of matching demand and supply of work force and invite the bio-data and record from various job seekers and send them to suitable clients. These agencies charge fees for providing such service.