TN Board 11th Commerce Important Questions Chapter 3 Classification of Business Activities

Students get through the TN Board 11th Commerce Important Questions Chapter 3 Classification of Business Activities which is useful for their exam preparation.

TN State Board 11th Commerce Important Questions Chapter 3 Classification of Business Activities

Very short answer questions

Question 1.
What are the causes of business risk?
Answer:

1. Natural causes
2. Human causes
3. Economic causes
4. Physical causes and other causes.

Question 2.
What is the primary industry?
Answer:
Primary industry includes all those activities which are connected with the extraction and production of natural resources and reproduction and development of living organisms. Plants etc.

Question 3.
What is Human Resource Management?
Answer:
It aims at ensuring the availability of working people who have the necessary skills to perform various tasks in enterprises.

Question 4.
Define micro-units as per MSME?
Answer:
MSME development Act 2006 the above types of industries are defined as follows:
Micro unit: A unit wherein investment plant and machinery is up to Rs. 25 lakhs in care of manufacturing and up to Rs. 10 lakhs in care of service enterprises.
MSME: (i) Micro unit, (ii) Small unit,
(iii) Medium unit, (iv) Large unit.

Question 5.
What are the functions of commerce?
Answer:

1. Removing of the hindrance of person and that means lack of information of producer about consumer and to consumer about the producer. It is removed by advertising.
2. Transportation removes hindrance of place.

Question 6.
What is continuous industry?
Answer:
In the continuous industry, raw materials are fed from one end of the factory. They emerge as finished products from the other end after passing through several processes.

Question 7.
Who is a middle man?
Answer:
The term middle man “refers to all those who intervene from the primary producer to the ultimate consumer in the exchange of goods,

Question 8.
‘Mention any five of the large-scale retail units?
Answer:
Departmental stores, multiple shops, consumer’s co-operative stores, mail order business house and hire purchase and installment system. These are some of the large-scale retail units.

Question 9.
Name the utilities of commerce.
Answer:
Form utility, place utility, time utility.

Question 10.
Name the branches of commerce.
Answer:
Trade, transport, insurance, warehousing, banking, communications, advertisement and salesmanship.

Short answer questions

Question 1.
Differences between insurable risk and non-insurable risk is summarised below?
Answer:

Question 2.
What is E-commerce?
Answer:
The term e-commerce is known as ‘ Electronic Commerce’ used by the media to do business with consumers through the internet. Electronic commerce promises new ways of working for companies allowing them to react to real-time changes in the market by:

1. Gaining more knowledge about their customers and
2. Increasing the visibility of demand across their supply chains.

Question 3.
Explain the importance of commerce.
Answer:
Every person wants to lead a happy and comfortable life. Every nation wants to attain a high standard of living. This is possible when goods are produced in plenty at a cheaper cost. Goods flow from production centers to consumption centers. The continuous flow of goods from one country to another country has lead to the equalization of prices of many commodities in the international market. By frequent trade, contacts, people of different countries know of the culture and civilization of other countries. As a result, cultural integration takes place at the international level.

Question 4.
How communication is helpful in Trade Activities?
Answer:
The buyers and sellers need the services of various agencies for communicating their messages. The producers inform their customers about the production of goods. The intending buyers send orders to producers for the supply of goods. The services of post offices, private courier services, fax, telephones, cell phones, etc., are utilized for communication purposes.

Question 5.
What are the hindrances in commerce? Which agencies are used to remove these hindrances?
Answer:

1. Lack of personal contact: This hindrance is removed by traders and middlemen.
2. Distance or place: This hindrance is removed by transportation.
3. Finance: This hindrance is removed by banking.
4. Time or storage: This hindrance is removed by warehousing.

Question 6.
What is the role of profit in business?
Answer:
Profits play a vital role in any business earning of profits is essential for any business because of the following reasons given below:
Means of livelihood: Profit act as a means of livelihood for the entrepreneurs without profit entrepreneurs cannot continue with the business.
Rewards for taking risks: It provides a return for taking risks.
Funds for growth: It would provide funds for the growth of the business.

Multiple choice questions

1. Industry can be divided into ………….. types.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(a) 2

2. On the basis of activities industry can be divided into ……… types.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(b) 3

3. On the basis of size industry can be divided into ……… types.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(c) 4

4. Primary industries can be divided into ………. types.
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(a) 2

5 . Examples of Genetic industries,
(a) bricks
(b) stones
(c) piggery
(d) none
Answer:
(c) piggery

6. Conversion of raw materials into finished products are called ………. industries.
(a) manufacturing
(b) construction
(c) assembling
(d) none
Answer:
(a) manufacturing

7. Warehouse facilities create ………. utility.
(a) time
(b) place
(c) storage
(d) all
Answer:
(a) time

8. Business involves various types of:
(a) risk
(b) profit
(c) loss
(d) all
Answer:
(a) risk

9. Trade may be classified into:
(a) internal trade
(b) external trade
(c) both (a) and (b)
(d) all
Answer:
(c) both (a) and (b)

10. Internal trade may be classified into:
(a) wholesale
(b) retail
(c) both (a) and (b)
(d) none
Answer:
(c) both (a) and (b)

11. Trade is an essential part of:
(a) trade
(b) industry
(c) commerce
(d) all
Answer:
(c) commerce

12. Trade removes the hindrance of:
(a) person
(b) place
(c) time
(d) money
Answer:
(a) person

13. Trade means:
(a) buying
(b) selling
(c) buying and selling
(d) none
Answer:
(c) buying and selling

14. The term Industry means:
(a) group of firms
(b) company
(c) sole trader
(d) partnership
Answer:
(a) group of firms

15. The term E-commerce means:
(a) electronic commerce
(b) electric commerce
(c) economic activities
(d) non-economic activities
Answer:
(a) electronic commerce

16. Commerce creates form, place, and utility.
(a) time
(b) possession
(c) both (a) and (b)
(d) none
Answer:
(a) time

17. Trade involves two persons:
(a) buyer and seller
(b) wholesaler and retailer
(c) creditor and debtor
(d) All
Answer:
(a) buyer and seller

18. Example for extractive industries:
(a) Hunting
(b) Textile
(c) Paper
(d) Computer
Answer:
(a) Hunting

19. Business activities may be classified info:
(a) industry and commerce
(b) buyer and seller
(c) money and profit
(d) loss and profit
Answer:
(a) industry and commerce