Class 11th Important Questions for Business Studies

Class 11th Important Questions for Business Studies

Q: What are the components of economic activities?

Ans: Economic Activities = Business, Profession, Employment.

Q: What is the meaning of Economic activities?

Ans: Those activities whose objective is to earn money are called economic activities.

Q: Write the types of Economic Activities?

Ans: There are three types of economic activities:
1 Business
2 Profession
3 Employment

Q:Define Business.

Ans: Business refers to that economic activity that is conducted on a regular basis to earn profit through the production and sale of goods and services. For example a cloth shop, a transport company, etc.

Q: Define Profession.

Ans: Profession refers to that economic activity that is conducted by a person having some special knowledge and skill which is used impartially to serve the different sections of society. This includes legal practices, medical practice, etc. 

Q: Define Employment.

Ans: Employment is a kind of contract under which one works for others in lieu of remuneration. For example, working in factories, government offices, etc.

Q: What is Non-Economic Activity?

Ans: It refers to an activity that is undertaken with the objective of getting psychological satisfaction. For example, Social work, the Spread of religion, etc.

Q: What is a business objective?

Ans: Business objectives are needed in every area where performance and results affect the survival and prosperity of a business. 

Q: What are the objectives of Business?

Ans: There are some objectives of business:
1. Market Standing
2. Innovation
3. Productivity
4. Physical & Financial Resources
5. Earning Profits
6. Manager performance and development
7. Worker performance and attitude
8. Social Responsibility

Q: What is the role of Profit in Business?

Ans: An important feature of the business is to earn profit. The role of profit in business is brought out by the following facts:
1. For Long Survival
2. For Increasing Efficiency
3. For Rapid Growth
4. For Earning More Profit
5. For Building Prestige and Recognition

Q: What is the classification of Business Activities?

Ans: The classification of Business Activities are:

1. Industry
2. Commerce
(a) Trade
(b) Auxiliaries to Trade

Q: Define Industry. Explain the types of goods produced in the industry.

Ans: Industry includes all those activities through which the raw material is converted into the finished product. 
There are three types of goods manufactured in the industry:
1. Producer’s / Capital Goods: Those things which are used in production by other industries are called capital goods such as plant, machinery, etc.
2. Consumer Goods: Those things which are directly put to use are called consumer’s goods like bread, medicines, etc.
3. Intermediate Goods: Those industries manufacture goods as are processed in some other industry to produce some need-based goods. Such goods are called intermediate goods. For example, aluminum, plastic, etc.

Q: State the types of Industries.

Ans: 1. Primary Industry
2. Secondary Industry
3. Tertiary Industry

Q: Define Primary Industry?

Ans: It refers to that industry that produces unrefined raw materials out of which finished products are made.

Q: Define Secondary Industry?

Ans: It refers to that industry that uses the raw material produced by the primary industry and changes them into finished goods.

Q: Define Tertiary Industry?

Ans: It refers to the industry that produces services.

Q: What do you mean by Commerce?

Ans: It refers to the sum total of all those activities which are engaged in the removal of hindrances of Person, Place, Time, Risk, Finance, and Information in the exchange of commodities.

Q: What is Trade? Explain briefly different types of Trade.

Ans: It refers to the purchase and sale of goods or services with a profit motive. The classification of trade is following :

1. Home Trade: When the buying and selling of things take place within the national boundaries, it is called home trade.

(a) LOCAL TRADE

(b) STATE TRADE

(c) INTERSTATE TRADE

2. Foreign Trade: When the conduct of trade crosses national boundaries and reaches foreign lands, it is called Foreign trade. Foreign trade has three parts:

(a) IMPORT TRADE

(b) EXPORT TRADE

(c) ENTREPORT TRADE

Q: Define Auxiliaries to trade.

Ans: It refers to all those activities which are undertaken to overcome the hurdles appearing in the way of trade.

Q: What is Business Risk?

Ans: It refers to the possibility of inadequate profits or even losses in the business because of uncertainties.

Q: What are the causes of Business Risk?

Ans: Natural Causes, Human Causes, Economic Causes, Other Causes.