TN STATEBOARD 11th COMMERCE UNIT 1- CHAPTER 2 – OBJECTIVES OF BUSINESS CHAPTER ADDITIONAL QUESTIONS

 

I. MULTIPLE CHOICE QUESTION

1. Occupation of a Lawyer is ______

ANS- Profession

 

2. Activities undertaken to satisfy social and psychological needs are called _________

ANS- Non-Economic activities

 

3. Occupation in which people work for other and get remuneration is known as ________

ANS- Employment

 

4. Economic activates performed for earing profits is known is ________

ANS – Business

 

5. Give one example for public enterprises.

ANS - Departmental undertaking - Public Works Department (PWD)

 

6. The reward for doing a business is ________

ANS- Profits

 

7. Large scale units require ________ capital

ANS – huge

 

8.______ are the examples of employees.

ANS - Managers, Clerks, Bank officials, Factory workers.

 

9. Human activities can be categorized into _________

ANS - economic and non-economic activities

 

II. VERY SHORT ANSWER QUESTION

1. What do you mean by non-economic activities?

Answer:

Activities undertaken to satisfy social and psychological needs are called non – economic activities.

 

2. State the examples of economic activities.

Answer:

Examples:

i. Production of goods by manufacturers

ii. Distribution of goods by wholesalers

iii. Selling by retailers

iv. Medical advice rendered by physicians

v. Accounting practice by chartered accountants

 

3. State the examples of Non-economic activities.

Answer:

Examples:

i. Cooking food for family

ii. Celebrating festivals

iii. Watching movies in a theatre

iv. Doing meditation

 

4. What are the source of initiation for the Economic and Non-economic activities?

Answer:

Source of Initiation:

Economic activities are initiated to satisfy human needs and wants.

Non-economic activities are initiated to satisfy emotional or sentimental pleasures.

 

5. What is the motive for economic activities and non-economic activities?

Answer:

Motive:

Economic:

Sole motive is to earn money or financial gain. e.g., working as a lawyer.

Non-Economic:

Undertaken for satisfaction of social, psychological or emotional needs. e.g., Visit to a temple

 

6. State the types of Economic Activities.

Answer:

A. Employment

B. Profession

C. Business

 

7. Define Business.

Business may be defined as “an activity involving regular production or purchase of goods and services for sale, transfer and exchange with an object of earning profit”.

 

According to James Stephenson business refers to “Economic activities performed for earning profits.”

 

According to H.Haney, “Business may be defined as a human activity directed towards producing or acquiring wealth through buying and selling of goods”.

               

Note: Study any one definition.

 

8. How Business Activities are classified?

Answer:

Business activities are classified on the basis of size, ownership and function.

 

9. State one example for both Private and Public Enterprises.

Answer:

Private Enterprises Example:

Sole proprietorship. Example - Sundar Stationeries

 

Public Enterprises Example:

Public Corporation - Oil and Natural Gas Corporation (ONGC)

10. State any two characteristics of Business.

Answer:

Sale, Transfer or Exchange

Profit Motive

 

11. State the meaning of National Objective.

Answer:

National Objectives Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice, etc. Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of business.

 

III. SHORT ANSWER QUESTION:

 

1. Write any three 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.

 

2. Write a note on:

1. Private Enterprises

2. Public Enterprises

3. Joint Enterprises

 

Answer:

a. Private Enterprises

An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government.

(i) Sole proprietorship. Example – Sundar Stationeries

(ii) Partnership firms. Example – Ramesh Bros.

 

b. Public Enterprises

An enterprise is said to be a public enterprise where it is owned, managed and controlled by Government or any of its agencies or both. Public enterprises may be organized in several forms such as,

(i)Departmental undertaking – Public Works Department (PWD)

(ii)Public Corporation - Oil and Natural Gas Corporation (ONGC)

(iii)Government Company - State

Trading Corporation (STC)

 

c. Joint Enterprises

An enterprise is said to be a joint enterprise where it is owned, managed and controlled by Government and private entrepreneurs.

Example - Maruti Suzuki

 

3. Difference between Economic Activity and Non- Economic Activity. (ANY 3)


4. What are the activities based on function?

Answer:

Activities on the Basis of Function On the basis of functions, business activities may be broadly grouped into two categories.

a. Industry

Industry includes all those business activities which are connected with raising, producing or processing of consumer goods. Example - bread, butter, cheese, shoes, or capital goods like machinery.

 

b. Commerce

It establishes a link between the producers and consumers of goods and maintains a smooth and uninterrupted flow of goods from producers to consumers.

 

For Own Thinking

 Question 1.

Do you know that there are white collar, blue collar, pink collar jobs? Collect the information and discuss.

Answer:

Examples:

White collar jobs – managerial positions

Blue collar jobs – skilled or unskilled working class, mechanics

Pink collar jobs- nursing, teaching, etc.

 

IV. LONG ANSWER QUESTION:

 

ALL BOOK BACK QUESTIONS IS ENOUGH

 

1. Explain the characteristics of Business

2. Compare business with profession and employment

3. Discuss any five objectives of business

4. Distinguish between economic and non-economic activity.