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.
| Hindrances | Solutions |
| Hindrance of person | Middlemen |
| Hindrance of place | Transport and Communication |
| Hindrance of time | Warehousing |
| Hindrance of risk | Insurance |
| Hindrance of finance | Banking |
| Hindrance of information | Advertising |
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.