TN STATE BOARD 11th COMMERCE - UNIT 1 - CHAPTER 2 - OBJECTIVES OF BUSINESS BOOK BACK ANSWERS 



II. Very Short Answer Questions

Question I .
Define Economic Activities.
Answer:
Economic activities are those activities which are undertaken to earn money or financial gain for livelihood.

Question 2.
What do you mean by Business?
Answer:
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

Question 3.
Define Profession.
Answer:
Professions are those occupations which involves rendering of 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.

Question 4.
What do you mean by Employment?
Answer:
It refers to the occupation in which people work for others and get remuneration in the form of wage.s or salaries.

III. Short Answer Questions

Question I .
What do you mean by human activities? Explain.
Answer:
Human activity is an activity performed by a human being to meet his/her needs and wants or may be for personal satisfaction. Human activities can be categorized into economic and non - economic activities.

Question 2.
Write short notes on:
1 . Business
2. Profession
Answer:
I .Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

2. Professions are those occupations which involves rendering of 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.

Question 3.
Explain the concept of 'Business'.
Answer:
Business refers to any human activity undertaken on a regular, basis with the object to earn profit through production, distribution, sale or purchase of goods and services. Business activities are connected with raising, producing or processing of goods. Industry creates form utility to goods by bringing materials into the form which is useful for intermediate consumption or final consumption by consumers.

Question 4.
Briefly state the human objectives of a business.
Answer:
Human objectives refer to the objectives aimed at the well - being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training. The human
objectives of business may thus include economic well - being of the employees, social and psychological satisfaction of employees and development of human resources.

IV. Long Answer Questions

Question I .
Explain the characteristics of Business.
Answer:
1 . Production or Procurement of Goods : Goods must be produced or procured in order to satisfy human wants.

2. Sale, Transfer or Exchange : There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

3. Dealing in Goods and Services : Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.

4. Regularity of Dealings : An isolated dealing in buying and selling does not constitute business. The transactions must be regular.

5. Profit Motive : An important feature of business is profit motive. Business is an economic activity by which human beings make their living.

6. Element of Risk : The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessmen.

Question 2. 
Compare Business with Profession and Employment:
Answer:

Question 3.
Discuss any five objectives of business.
Answer:
1 . Economic Objectives:
Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes creation of customers, regular innovations and best
possible use of available resources.

2. Social Objectives:
Social objective are those objectives of business, which are desired to be achieved for the benefit of the society. Since business operates in a society by utilizing its scarce resources, the society expects something in return for its
welfare.

3. Organizational Objectives:
The organizational objectives denote those objectives an organization intends to accomplish during the course of its existence in the economy like expansion and modernization, supply of quality goods to consumers, customers'
satisfaction, etc.

4. Human Objectives:
Human objectives refer to the objectives aimed at the well - being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training.

The human objectives of business may thus include economic well - being of the employees, social and psychological satisfaction of employees and development of human resources.

5. National Objectives: 
Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. 

Question 4. 
Distinguish between Economic and Non- Economic Activity

Answer:
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