TUTOR MARKED ASSIGNMENT

COURSE CODE : BCOC-132

COURSE TITLE : Business Organisation and Management
ASSIGNMENT CODE : BCOC-132/TMA/2020-2021
COVERAGE : ALL BLOCKS
Maximum Marks: 100

Note: Attempt all the questions.

Q.1 (a) What are the marketing concepts? Explain the process of (10)
evolution of these concepts.

(b) Discuss the sources of raising finance through the equity (10)
shares and debentures? Compare their relative merits and
demerits.

Q.2 (a) What do you mean by Business Ethics? State the major (10)
components of business ethics.
(b) What is a Joint Stock Company? Explain how it overcomes (10)
the limitations of non – corporate form of organisation.

Q.3 Briefly comment on the following: (4X5)

(a) Partnership organisations emerged essentially because of the
limitations and failures of the sole proprietorships.
(b) Wealth maximisation is preferred over profit maximisation.
(c) Planning and decision making are two sides of the same coin.
(d) Money holds the key to work motivation in modern business
organisations.

Q.4 Distinguish between the following: (4X5)

(a) Internal Trade and External Trade
(b) Government and Non-government Companies
(c) Line Organisation and Functional Organisation
(d) Formal and Informal Communication

Q.5 Write short notes on the following: (4X5)

(a) Incubators
(b) International Business
(c) Organisational Manual
(d) Motivation
 BACHELOR OF COMMERCE

(Tutor Marked Assignment)

COURSE CODE : BCOC-132

COURSE TITLE : Business Organisation and Management

ASSIGNMENT CODE : BCOC-132/TMA/2020-2021

COVERAGE : ALL BLOCKS

Maximum Marks: 100

Note: Attempt all the questions.
Q.1 (a) What are the marketing concepts? Explain the
process of evolution of these concepts.
Ans. All the companies have different perception and orientation
towards the business and the marketplace. They follow different
philosophies of marketing. The Marketing concepts are classified into
five types:

1. Production concept.
2. Product concept.
3. Selling concept.
4. Marketing concept.
5. Societal concept
Production Concept.
It emerged during the initial stages of industrial revolution. As per this
concept producers believe that customers will buy a product that is
inexpensive and available easily and widely. So managers aimed at high
production efficiency with low cost and making the product easily
available to the customers by mass distribution efforts.
They believed that customers would automatically buy their products if
they offered low cost. This strategy is viable in developing countries
where companies want to expand with inexpensive production.
Limitations to this concept were that it does not consider consumer
needs and quality suffers due to low cost.

Product Concept.
This concept is different from the production concept where instead of
high production and low cost, emphasis is on product attributes. In this
concept producers believe that customers will buy the products which
have best features and attributes like quality, appearance etc. So they
stress more on improving the product, modifying it and adding
innovative features.

In this concept producer’s main emphasis is on improving product

features. Major limitation to this concept is that the producer is just
concerned about the product and its improvement not about other
factors like, price, distribution and promotion, which are equally
important for the success of the business.

Selling Concept.
In this concept producers believe that a customer will buy a product
only if aggressive selling and promotion is done for the product Main
aim is to maximize the sales volume by aggressive selling efforts.
Limitation to this concept is that producers first produce a product and
then decide to sell it without identifying what customers want
Producers are product-centered ignoring the needs of the buyers. It
focuses on the needs of the sellers and aim to earn profits through
sales volume. Seller is considered to be the king and customer is viewed
as the last link in business.

STARTING POINT: Factory → MEANS: Selling and

promotion → FOCUS: Product → ENDS: Profits through sales
volume
Marketing Concept.
This concept emphasizes on understanding what customer wants and
satisfying their needs by means of the product. It constantly stresses on
the needs of the buyers. It focuses on the customer and not just on the
product Customer is considered to be the king. Companies start from
target market, focus on customer’s needs and by means of the
integrated marketing earn profit through customer satisfaction more
efficiently than their competitors.

STARTING POINT: Target market → MEANS: Integrated

marketing → FOCUS: Customer needs → ENDS: Profits through
customer satisfaction
Societal Concept.
It aims to produce a product in such a way that preserves the society’s
well-being. The concept is based on the societal welfare. Companies
should not forget the social and the ethical issues in the process of
marketing. It emphasizes on efficient utilization of resources, societal
welfare and environmental concerns. Consumers are likely to favor
organizations which are concerned with meeting their wants, long-run
interests, and society’s long-run interests. The organization’s task is to
serve target markets in a way that it not only satisfies the wants but
also meets long-run individual and social requirements as the key to
attract and hold customers.

(b) Discuss the sources of raising finance through the

equity shares and debentures? Compare their relative
merits and demerits.
Ans. Equity Shares:
Shares which enjoy dividend and right to participate in the
management of Joint Stock Company are called equity shares, or,
ordinary shares. They are the owners and real risk bearers of the
company. Equity shares can be defined as per as our Indian Companies
Act (1956) as, “Shares which are not preference shares are equity
shares, or, ordinary shares”. Equity shareholders are the real owners of
the company and, therefore, they are eligible to share the profits of the
company. The share given to equity shareholders in profits is called
“Dividend”. The rate of dividend on these shares depends upon the
profits of the company. They may be paid a higher rate of dividend or
they may not get anything. These shareholders take more risk as
compared to preference shareholders. At the time of winding of
company, the capital is paid back last to them after all other claims
have been paid in full.
Advantages of equity share are following:

1. Equity shares do not create any obligation to pay a fixed rate of

dividend.
2. Equity shares can be issued without creating any charge over the
assets of the company.

3. It is a permanent source of capital and the company has to repay it

except under liquidation.

4. Equity shareholders are the real owners of the company who have
the voting rights.

5. In case of profits, equity shareholders are the real gainers by way of

increased dividends and appreciation in the value of shares.

Disadvantages of Equity Shares:

1. If only equity shares are issued, the company cannot take the
advantage of trading on equity.

2. As equity capital cannot be redeemed, there is a danger of over

capitalisation.

3. Equity shareholders can put obstacles for management by

manipulation and organising themselves.

4. During prosperous periods higher dividends have to be paid leading

to increase in the value of shares in the market and it leads to
speculation.

5. Investors who desire to invest in safe securities with a fixed income

have no attraction for such shares.

DEBENTURES:
When borrowed capital is divided into equal parts, then, each part is
called as a debenture or Whenever company want to borrow a large
amount of money for long but fixed period, it can borrow from the
general public by issuing loan certificate called debenture. Debenture
represents debt. For such debts, company pays interest at regular
intervals. It represents borrowed capital and a debenture holder is the
creditor of the company.Debenture holder provides loan to the
company and he has nothing to do with the management of the
company.
Advantages of Debentures:
 Creditors – Debenture holders are the creditors of the company.
 Allowing control over the company – Debenture holders have no
right either to vote or take part in the management of the
company.
 Reliable Source – These are repayable after a fixed period of time,
the company can make the best use of money. It helps long term
planning.
 Tax benefit – Interest paid on debenture is treated as a expense
and is charged to the profit of the company. Thus the company
saves income tax.
 Safety – Debenture are more secure. When the company is
winding up, they are repayable before any payment is made to
the shareholders.

Disadvantages of Debentures:
 More finance more difficulty – Debenture finance enables a
company to trade on equity. But more finance leaves little for
shareholders, as most of the profits may be require paying
interest on debentures.
 Burden in time of depression – During depression time the profit
of the company decline. It may be difficult to pay interest on
debenture. As interest goes on accumulating, it may lead to the
closure of the company.
 Can’t borrow money – Usually debentures are secure. The
company creates a charge on its assets in favour of debenture
 holders. So the company, which does not have own enough
assets, they cannot borrow money by issuing debentures.
 Burden – As the interest on debenture have to be paid every year
whether there are profits or loss. It becomes burden in case of
company incurs loses.

Q.2 (a) What do you mean by Business Ethics? State the

major components of business ethics.
Ans. Business ethics (also known as corporate ethics) is a form
of applied ethics or professional ethics, that examines ethical principles
and moral or ethical problems that can arise in a business environment.
It applies to all aspects of business conduct and is relevant to the
conduct of individuals and entire organizations.[1] These ethics originate
from individuals, organizational statements or the legal system. These
norms, values, ethical, and unethical practices are the principles that
guide a business. They help those businesses maintain a better
connection with their stakeholders.

Business ethics refers to contemporary organizational standards,

principles, sets of values and norms that govern the actions and
behavior of an individual in the business organization. Business ethics
have two dimensions, normative business ethics or descriptive business
ethics.

PRINCIPLES OF BUSINESS ETHICS

Conscience:-This is based on the inner feeling of a person to
detect wrong or right. On the basis, the businessmen can determine
different roles and behaviour at their levels.
Wish-less Work:-There is no need to perform all the tasks to be self-
centred or to be self-interest. Accordingly, we should perform all the
roles and behaviour of another person's for their esteemed interest.
We'd be devoted to our efforts to do the work for others.
 Publicity:-All activities should be well informed to every person
attached in business. It aims to remove the doubtfulness and
misunderstanding among people.
Esprit:-All activities should be based on values and service motive in
business. Businessmen should give due attention to make the best
possible services and try to develop a feeling of devotion and
truthfulness in services.
Purity:-Politeness, truthfulness are the ways to mental peace and
purity. It is most needful that every businessman should follow.
Humanity:-Respect human moral values, decorum, aspects in their
policies, programs, and different working areas. It is needful that every
businessman should follow human values and determine the path of
humanity.
Transparency:-Transaction should be well informed in a justified
manner with their different stakeholders and society.
Liking in expectations:-In order to establish the ethical norms and
conduct in business, it is required to follow all these good and
acceptable behaviour by businessmen. They must give and perform
some excellent examples as per the expectations of others.
Coordinates Ends and Means:-The businessmen should try to make a
coordinating or balancing form between their ends and means within
their work performance and it's allied activities. They should develop
their ventures within the limitations of resources and capacities.
Satisfaction:- Every businessman is required to create and develop
their role and behaviour to establish pleasure and happiness with the
other person and the society at large. Fore mostly, in business as per
their products and services, the customer should be satisfied at every
stage.
Cooperation with others:-Ethical norms motivate the feeling of
collaboration and team spirit. It is required that based on capacity and
available resources, the businessman should make full cooperation with
different other persons as per their good conduct and value-based
behaviour.
Communicability:- According to this principle, there is a need to make
effective means of communication with the internal and external
persons as engaged with business houses. The communication should
be in clear, open, and in a justified manner.
Rationality:- Based on the ethical code of conduct, every businessman
should analyze and self evaluate the good or bad, right or wrong,
ethical or unethical aspects within their business transaction and day to
day working of the business houses. They must follow the rational
attitudes and behaviour also.
Commitment:- According to this principle, every businessman should
be able to fulfill their commitments and assurance as given to other
people. The implementation of commitment should be based on
honesty and responsiveness too.
Universal Values:- It is required that every businessman should
conduct and perform the task and different business activities to be
based on universal assumptions, custom, and overall accepted norms
and Principles by society.

(b) What is a Joint Stock Company? Explain how it

overcomes the limitations of non – corporate form of
organisation.
Ans. The Indian Companies Act (1956) defines joint stock company as
“a company limited by shares having a permanent paid up or nominal
share capital of fixed amount divided into shares, also of fixed
amount, held and transferable as stock and formed on the principles
of having in its members only the holders of those shares or stocks
and no other persons.”

A joint stock company is an association of persons who are registered

under, Companies Act for carrying on some business. As per the Indian
Companies Act, it is defined as “a company limited by shares having a
permanent paid up or nominal share capital of fixed amount divided
into shares, also of fixed amount, held and transferable as stock and
formed on the principles of having in its members only the holders of
those shares and stocks and no other persons.” It is said to be an
artificial person because it is created by law Existence of a joint stock
company remains constant, Its life is not at all affected due to the
death, lunacy, insolvency of its shareholders.

Members’ liability in a company is limited by shares or by guarantee.

Such form of organization has to comply with varied statutory
requirements. It is suitable when large resources are required. A lot of
joint stock companies now-a-days, are coming up. Because of the
merits of joint stock company, it was able to overcome the limitations
of non-corporate form of organization.

Large capital: This form of organization is best suited, if the need arises
to raise the capital in large amounts. Shares and debentures can be
issued, if new capital is required by the company.
Limited liability: Shareholders have limited liability to the face value of
the shares held by them or guarantee given by them. They cannot use
their personal property to pay the dues of the company. Persons not
willing to take risk can use this form of organization. This feature is not
there in non-corporate form of organization.
Stability of existence: An important feature of a company is it has a
separate legal entity with perpetual succession The Corporation
continues i.e. the working of the company is not affected even if the
shareholder, director becomes insolvent.
Economies of scale: Companies can be involved in large scale buying,
selling etc, as they operate on large scale. Because of this, consumers
can obtain goods at cheaper prices.
Public confidence: The work of the government is to control and
regulate companies. It is the duty of the companies to get their
accounts audited by a C.A. and published. This helps in creating
confidence in public about the company’s working and functioning.
Transferability of shares: Shareholders can sell their shares at any time
without the consent of the other shareholders. They can even get their
shares converted into cash without much difficulty.
Risk diffused: As there are lot of members, the risk of the business is
divided among various members of the company. This proves to be an
advantage for small investors.
Tax benefits: It is duty of the companies to pay taxes at flat rates.
Companies do not follow any slab system for paying their taxes.
Companies, because of this, pay less amount of taxes on higher
incomes as compared to other forms of organization.
Scope for expansion: Companies can expand their business by issuing
new shares and debentures. They can follow this method because there
is no limit to the maximum number of shareholders.
Companies can also use some part of their profits which they normally
keep as reserve.

Q.3 Briefly comment on the following:

(a) Partnership organisations emerged essentially because of

the limitations and failures of the sole proprietorships.

Ans. Sole proprietorships and partnerships have the disadvantages of

limited resources, unlimited liability, limited managerial skills, etc. The
life and stability of these organisations also depend on the life and
stability of the proprietors/partners. Hence, they are not considered
suitable for large scale business, For large scale business, you require
large investment and specialised. Thus, Company form of organization
emerged essential because of the limitations of the sole Proprietorship
and partnership forms of organizations.

Sole proprietorship ended because of the many limitations few are

given below:

 Limited resources
 Limited managerial capacity
 Less stability
 No check and control
 Not suitable for large scale operations

You have learnt that the sole trader organizations have limited financial
resources, limited managerial ability and skills, and unlimited liability. In
case of expansion more capital and more managerial skills are required.
At the same time, the risk will also increase. A sole proprietor may not
be able to fulfil all these requirements. A person who lacks, managerial
skills may be having capital. Another person who is a good manager
may not be having sufficient capital. This calls for a situation where two
or more persons come together, pool their capital and skills, and
organize the business. This type of business organization is called
partnership organization. It grew essentially because of the limitations
and failure of the sole proprietorships.

(b) Wealth maximisation is preferred over profit maximisation.

Ans. Wealth Maximization: Wealth maximization means of

shareholder’s wealth. It is a combination of two words viz. wealth and
maximization. A wealth of a shareholder maximizes when the net worth
of company maximizes. Wealth maximization is the ability of a company
to increase the market value of its common stock over time. The
market value of the firm is based on many factors like their goodwill,
sales, services, quality of products. It helps in evaluating the overall
performance of the business organization. This helps in achieving
maximum dividend. It aims at increasing the worth of the firm.

Profit Maximization:
Profit Maximization is the capability of the firm in producing maximum
output with the limited input, or it uses minimum input for producing
stated output. It is termed as the foremost objective of the company.

The main objective of company should of wealth maximization rather

than profit maximization as there is always risk associated in achieving
profit. The risk can be neglected in short run but cannot be ignored in
long run. Shareholders who invest their money in company for better
returns and if they see nothing is being done to increase their wealth.
They will invest somewhere else. So, profit maximization should be
considered as a sole parameter but wealth maximization should be the
main motive of any firm. Profit maximization is a subset of wealth
maximization and its necessary for the survival in the market but when
it comes to decisions which will directly affect the interest of the
shareholders then, wealth maximization is a better operative criterion.

(c) Planning and decision making are two sides of the same
coin.
Ans. Planning and decision-making are the most important managerial
functions, and there are many relations between them.

Planning and decision-making, organizing, leading and controlling are

all interrelated. Planning and decision making is the most important
step of all managerial functions.

Definition of Planning

Planning managerial functions where managers are required to

establish goals and state the ways and means by which these goals are
to be attained.

Therefore planning is taken as the foundation for future activities.

Or in simple terms; planning is deciding in advance what is to be done.

Planning is thinking of doing.

Definition of Decision-making

Decision-making is the process of identifying a set of feasible

alternatives and choosing a course of action from them.

Planning and decision making are two sides of the same coin because
In the decision-making process, a manager identifies a specific situation
and finds the threats and opportunities that it offers.

By planning; manager finds these alternatives by testing and measuring

their effectiveness. They identify the pros and cons of each alternative.

After that, the managers must use their decision-making skills for
selecting one path of action. Decision making is the core of planning.
Unless a decision has been made, a plan cannot be implemented in the
field.
So we can say that planning and decision-making, both are interrelated.

(d) Money holds the key to work motivation in modern

business organisations.
Ans. Money is round and spins and let people spin around it. Money
motivates the people most and holds the key to all locks in a modern
business organization. No organization can survive without money and
its motivation aspect, though non-money motivation does help. It is the
money (financial motivation) which works wonders for a modern
business organization. When the needs of men are to be met, it is
money which helps with the meeting of human needs.

Money is a positive motivation and it has the capability of being given

different names and shapes. Even the non-financial motivation like
higher responsibility like job enrichment, efforts for self actualization
have to spend and use money for all these motivators.

Every modern business organization uses motivation for the successful

achievement of objectives, even customer satisfaction involves money
and its expenditure.

Money is perceived as power and every on waits to wield it. Human

nature is based on greed and greed for money is the greatest. Money
or financial motivation covers a vast majority in the organization and
majority cooperation is vital for the success of modern business
organization.

Q.4 Distinguish between the following:

(a) Internal Trade and External Trade
Internal Trade External Trade
 Definition
Internal trade is trade that involves buying External trade is referred to as a trade that
and selling taking place between two involves buying and selling of goods
parties which are located within the between two parties located in different
political and geographical boundaries of a countries or between two different
Country Countries
Countries Involved
Internal trade takes place between the External trade involves the transactions
country borders, therefore only one between two or more countries.
country is involved
Currency involved
Domestic currency will be used as the Payments for external trade transactions
medium of payment for all the are received in a currency that is mutually
transactions agreed by the two parties involved in the
Trade
Risk Involved
Internal trade has less risk as compared to External trade will be having more risk
external trade which can be due to currency fluctuations,
economic state of countries, etc
Impact on Foreign Reserve
No impact on foreign reserve as Foreign trade helps in adding to the foreign
transactions take place within the country reserve of the country
Restrictions
Internal trade has less restrictions External trade is subjected to many
restrictions as it is between two countries,
which involve different laws

(b) Government and Non-government Companies

Ans. There are certain differences between a government companies
and ‘non-government companies’ are as follows:
1) Paid-up capital : In the case of a government company not less than
51% of the paid-up share capital is held by the central government or
by the state government or jointly by the central or one or more state
governments. There can be any combination of the shares owned by
the central and state governments. But the total paid-up capital owned
by one or more governments should be 51 % or more, to make it a
government company. It may be noted that there are a few
government companies which have private participation in the equity.
In the case of non-government companies, major share of the paid-up
capital is held by the private individual.
2) Auditor appointment: The auditor of a government company is
appointed by the government on the advice of the Comptroller and
Auditor General of India (CAG). He is also empowered to direct the
auditor about the manner and method of auditing.
Sometimes, the CAG himself carries out the audit of government
companies under the
Companies Act. The Audit of a non-government company is appointed
.by the General Body of the company.
3) Annual reports : The annual reports along with audit reports of
government companies are laid before Parliament if it is a central
government company, and before the state legislature in case of a state
government company. In case of a non-government company, the audit
reports are laid before its General Body.
4) Provisions of the Companies Act: Central government has the power
to exempt any provision of the Companies Act from applying to a
government company except the provisions regarding audit. But,
central government has nothing to do with regard to the provisions of
the Companies Act relating to a non-government company.
(c) Line Organisation and Functional Organisation

Ans. There are certain differences between a Line Organisation and

Functional Organisation are as follows

1. Nature

Line Organizational Structure: It is simple and very easy to operate.

Functional Organizational Structure: It is complex type of
organizational structure.

2. Specialization

Line Organizational Structure: This type of organization is not

specialized or follows low level of specialization.
Functional Organizational Structure: It is fully specialized form of
organization. It hires specialists and experts for business operation.

3. Unity Of Command

Line Organizational Structure: Unity of command is strictly followed in

line organization.
Functional Organizational Structure: Unity of command is not properly
followed in functional organization.

4. Discipline

Line Organizational Structure: Discipline is strictly maintained in this

type of organization.
Functional Organizational Structure: There is a loose discipline or lack
of discipline in functional organizational structure.
5. Authority

Line Organizational Structure: This type of organization follows scalar

chain system or vertical authority.
Functional Organizational Structure: It follows functional or diagonal
authority system.

6. Economy

Line Organizational Structure: It is very economical form of

organizational structure.
Functional Organizational Structure: This type of organization is very
costly due to specialists and experts.

7. Work Load For Top Management

Line Organizational Structure: Top level management has more work

load due to single authority and responsibility.
Functional Organizational Structure: Top level does not have more
work load because responsibility and authority is divided among
department heads and specialists.

(d) Formal and Informal Communication

Ans.
BASIS FOR FORMAL INFORMAL
COMPARISON COMMUNICATION COMMUNICATION

Meaning A type of verbal A type of verbal

communication in which the communication in which the
interchange of information interchange of information
is done through the pre- does not follow any
defined channels is known channels i.e. the
as formal communication. communication stretches in
all directions.

Another Name Official Communication Grapevine communication

Reliability More Comparatively less

Speed Slow Very Fast

Evidence As the communication is No documentary evidence.

generally written,
documentary evidence is
present.

Time Consuming Yes No

Advantage Effective due to timely and Efficient because

systematic flow of employees can discuss
information. work related problems, this
saves time and cost of the
 organization.

Disadvantage Distortion due to long chain Spread of rumors

of communication.

Secrecy Full secrecy is maintained. It is difficult to maintain the

secrecy.

Flow of Only through predefined Can move freely.

Information channels.

Q.5 Write short notes on the following:

(a) Incubators: A business incubator is a company that helps new
and startup companies to develop by providing services such
as management training or office space. The National Business
Incubation Association (NBIA) defines business incubators as a catalyst
tool for either regional or national economic development. NBIA
categorizes their members' incubators by the following five incubator
types: academic institutions; non-profit development corporations; for-
profit property development ventures; venture capital firms, and
combination of the above.

This is also Facility established to nurture young (startup) firms during

their early months or years. It usually provides affordable space, shared
offices and services, hand-on management training, marketing support
and, often, access to some form of financing. Business incubators differ
from research and technology parks in their dedication to startup and
early-stage companies.

(b) International Business: International business refers to the

trade of goods, services, technology, capital and/or knowledge
across national borders and at a global or transnational scale.
It involves cross-border transactions of goods and services between
two or more countries. Transactions of economic resources include
capital, skills, and people for the purpose of the international
production of physical goods and services such as finance, banking,
insurance, and construction. International business is also known
as globalization.
To conduct business overseas, multinational companies need to bridge
separate national markets into one global marketplace. There are two
macro-scale factors that underline the trend of greater globalization.
The first consists of eliminating barriers to make cross-border trade
easier (e.g. free flow of goods and services, and capital, referred to as
"free trade"). The second is technological change, particularly
developments in communication, information processing,
and transportation technologies.
(c) Organisational Manual : ‘Manual’ means a hand-book.
Organisation manual is a handbook maintained in hard cover, in loose-
leaf form containing information about policies, operations, rules and
regulations, objectives, procedures, departmental details etc.

It is a useful guide to all the organizational members as it gives details

of the extent to which authority is exercised by every manager and a
detailed analysis of various jobs in terms of job content and job
responsibilities.

It is a supplement to organisation chart. While organisation chart gives

an overview of the organisation structure, organisation manual
describes the organisation structure in detail. A manual is, thus, wider
in scope and includes organisation chart. It is a useful tool for managers
to visualize the company as a whole and to view their responsibilities in
the context of overall organisational responsibilities.

(d) Motivation: Motivation is the word derived from the word

’motive’ which means needs, desires, wants or drives within the
individuals. It is the process of stimulating people to actions to
 accomplish the goals. In the work goal context the psychological factors
stimulating the people’s behaviour can be -

 desire for money

 success
 recognition
 job-satisfaction
 team work, etc

One of the most important functions of management is to create

willingness amongst the employees to perform in the best of their
abilities. Therefore the role of a leader is to arouse interest in
performance of employees in their jobs. The process of motivation
consists of three stages:-

1. A felt need or drive

2. A stimulus in which needs have to be aroused
3. When needs are satisfied, the satisfaction or accomplishment of
goals.

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