(a) Distinguish between Shut Down Cost and Sunk Cost as follows
1. Shut down costs are the expenses that have to be incurred during the shut down or stoppage of business operations. On the other hand, sunk costs are the expenses which have been committed and cannot be changed.
2. Rent and insurance of factory during its closure is a shut down cost. Investment already made in factory building is a sunk cost.
(b) Dialogue is an important element in Public relations because :
1. If a person goes on talking without allowing others to participate in the discussion or talk, then it becomes a monologue.
2. Dialogue reveals the true personality of a person.
3. It helps to reduce prejudice and builds up mutual confidence.
4. Effective dialogue requires impartial listening and understanding.
(c) Features of a Balance Sheet of a company are :
1. Balance Sheet is always prepared on a particular date.
2. It is prepared after the preparation of Income and Expenditure Account and Profit and Loss Account.
3. It shows financial position on a particular date.
4. It is not an account but a statement.
(d) Employee Relations : The expansion in the industrial work force has created serious problems in communication and relations with employees. Poor communication create misunderstanding. The foundation to good employee relations are sound personnel policies and their impartial implementation. Employees judge a company by its personnel policies and the practices of management in carrying out these policies.
(e) Current Assets : Current assets are those assets which are converted into cash within a short period, generally one year. No depreciation is charged on current assets. Examples of current assets are, cash in hand, debtors, stock etc.
