Students get through the TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business which is useful for their exam preparation.
TN State Board 11th Commerce Important Questions Chapter 2 Objectives of Business
Very short answer questions
Question 1.
Explain the concept of Business.
Answer:
An economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society is called business.
Question 2.
How would you classify business activities?
Answer:
Business activities can be classified in the following ways:
Question 3.
Write a note on Industry.
Answer:
The activities deal with the conversion of raw materials into finished goods. Which are connected with raisii%, producing or processing of consumer goods.
eg: bread, butter, cheese, shoes, or capital goods like machinery.
Question 4.
What is the barter system?
Answer:
Before the invention of money, goods were exchanged for other goods. This exchange of goods for goods is called the barter system.
Question 5.
List the auxiliaries of trade.
Answer:
The auxiliaries of trade consist of services such a transport, banking, insurance warehousing, advertising, and communication.
Question 6.
What is business risk? What is its nature?
Answer:
The term business risk refers to the possibility of inadequate profit or, even losses due to uncertainties, eg: Changes in taste and preferences of consumers. Strike, increased competition, change in government policy, etc. There are two types- speculative and pure.
Question 7.
What is meant by Entrepot trade?
Answer:
Entrepot trade means importing goods from one country and exporting the same to other countries.
Question 8.
Define wholesaler.
Answer:
According to Evelyn Thomas ‘A true wholesaler is himself neither manufacture nor a retailer but acts as a link between the two.
Question 9.
Define Retailer.
Answer:
According to Cundiff E.W and still, A retailer is a merchant or occasionally an agent whose main business is selling directly to the ultimate consumers.
Question 10.
What is wholesale trade?
Answer:
Wholesale trade is known as the purchase of goods in hulk from the manufacturers and sells them in lesser quantities to others.
Short answer questions
Question 1.
What is meant by Private Enterprises?
Answer:
An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government.
- Sole proprietorship, eg: Sundar Stationeries
- Partnership firms, eg: Ramesh Bros.
Question 2.
What is meant by Public Enterprises?
Answer:
An enterprise is said to be a public enterprise where it is owned, managed, and controlled by the Government or any of its agencies or both. Public enterprises may be organized in several forms such as,
- Departmental undertaking – Public Works Department (PWD)
- Public Corporation – Oil and Natural Gas Corporation (ONGC)
- Govemmeiit Company – State Trading Corporation (STC)
Question 3.
What is meant by Joint Enterprises?
Answer:
An enterprise is said to be a joint enterprise where it is owned, managed, and controlled by Government and private entrepreneurs, eg: Maruti Suzuki.
Question 4.
What is meant by commerce?
Answer:
It establishes a link between the producers and consumers of goods and maintains a smooth and uninterrupted flow of goods from producers to consumers.
Long answer questions
Question 1.
What are the types of Economic Activities?
Answer:
Types of Economic Activities: Economic activities are undertaken to earn money. Generally, people engage themselves in such activities on a regular basis and are said to be engaged in their occupation. Occupations may be classified into three categories based on the following: (i) Employment, (ii) Profession and (Hi) Business.
- Employment: It refers to the occupation in which people work for others and get remuneration in the form of wages or salaries: The one who is employed by others are called employees and the one who employs others is called employer, eg: Managers, Clerks, Bank officials, Factory workers etc.
- Profession: Professions are those
occupations that involve rendering personal services of a special and expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas. It includes professional activities which are subject to guidelines or codes of conduct laid down by professional bodies.’ Those engaged in a profession are called professionals and they earn income by charging professional fees. - Business: According to H.Haney, “Business may be defined as a human activity directed towards producing or acquiring wealth through buying and selling of goods”. Business activities are connected with raising, producing, or processing goods. The industry creates forth. utility to goods by bringing materials into the form which is useful for intermediate consumption (i.e., further use of the material in order industry) or final consumption by consumers.
Question 2.
Explain the activities on the basis of ownership?
Answer:
Activities on the Basis of Ownership: On the basis of ownership business activities may be broadly grouped into three categories.
- Private Enterprises: An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government, (i) Sole proprietorship, eg: Sundar Stationeries, (ii) Partnership firms, eg: – Ramesh Bros.
- Public Enterprises: An enterprise is said to be a public enterprise where it is owned, managed, and controlled by the Government or any of its agencies or both. Public enterprises may be organized in several forms such as, eg: (i) Departmental undertaking – Public Works Department (PWD), (ii) Public Corporation – Oil and Natural Gas Corporation (ONGC), (iii) Government Company – State Trading Corporation (STC).
- Joint Enterprises: An enterprise is said to be a joint enterprise where it is owned, managed, and controlled by Government and private entrepreneurs, eg: Maruti Suzuki.
For Own Thinking
Question 1.
Do you know that there are white-collar, blue-collar, pink-collar jobs?
Answer:
- Blue-collar: A blue-collar worker is a working-class person who performs manual labour, blue collar work may involve skilled or unskilled manufacturing, mining, oil field construction, eg: Managerial position.
- White-collar: The white-collar worker typically performs work in an office environment and may involve sitting at a computer or desk, eg: Mechanics.
- Pink collar: The third type of worker is a service worker is called a pink collar job whose labour is related to customer interaction. Entertainment sales or other service-oriented work, eg: Teachers, Doctors, Nurses.
Multiple choice questions
1. Activities undertaken with the object of earning:
(a) money
(b) wealth
(c) profit
(d) none
Answer:
(a) money
2. Example for Economic activity:
(a) selling by retail
(b) cooking food for the family
(c) both (a) and (b)
(d) none
Answer:
(a) selling by retail
3. Occupations may be classified into ………. categories.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3
4. The one who is employed by others is called:
(a) employees
(b) employers
(c) day-wages
(d) salaries
Answer:
(a) employees
5. On the basis of size business activities may be classified into ……….. categories.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(a) 2
6. Examples of consumer goods:
(a) plant
(b) pen, brush
(c) machinery
(d) all
Answer:
(b) pen, brush
7. An important feature of the business is:
(a) profit motive
(b) service motive
(c) both (a) and (b)
(d) none
Answer:
(a) profit motive
8. Activities undertaken to satisfy social and psychological needs are called ……… activities.
(a) non-economic
(b) economic
(c) business
(d) human
Answer:
(a) non-economic
9. All economic activities can be valued in ……… terms.
(a) physical
(b) monetary
(c) both (a) and (b)
(d) all
Answer:
(b) monetary
10. Economic activities are related to the creation of:
(a) wealth
(b) profit
(c) loss
(d) profit and loss
Answer:
(a) wealth
11. Economic activities are:
(a) irregular
(b) repetitive
(c) profit nature
(d) all
Answer:
(a) irregular
12. Economic activities are initiated to satisfy human:
(a) activities
(b) needs and wants
(c) only wants
(d) only needs
Answer:
(b) needs and wants
13. Industry creates ……… utility.
(a) place
(b) time
(c) form
(d) possession
Answer:
(c) form
14. On the basis of ownership business activities may be grouped into ……… categories.
(a) 2
(b) 3
(c) 4
(d) 6
Answer:
(b) 3
15. The profit that is expected in a business is always:
(a) certain
(b) compulsory
(c) uncertain
(d) optional
Answer:
(c) uncertain
16. Social objectives are those objectives of the business. Which are desired to be achieved for the benefit of the:
(a) society
(b) people
(c) government
(d) poor people
Answer:
(a) society
17. Economic objectives of business refer to the objective of earning:
(a) profit
(b) loss
(c) wealth
(d) all
Answer:
(a) profit
18. An enterprise that is owned, managed and controlled by persons other than the government it is called ………. enterprise.
(a) government
(b) private
(c) mixed
(d) public
Answer:
(b) private
19. (ONGC) Oil and Natural Gas Corporation is an example of:
(a) departmental undertaking
(b) public corporation
(c) government company
(d) private company
Answer:
(b) public corporation
20. (PWD) Public Works Department is an example of:
(a) government company
(b) private sector
(c) departmental undertaking
(d) public corporation
Answer:
(c) departmental undertaking