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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.

Class 11th Important Questions for Business Studies

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.




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:




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.

Hindrance of personMiddlemen
Hindrance of placeTransport and Communication
Hindrance of timeWarehousing
Hindrance of riskInsurance
Hindrance of financeBanking
Hindrance of informationAdvertising

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.

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