TN STATEBOARD 11th COMMERCE CHAPTER 2
TEST SOLUTIONS
OBJECTIVES OF BUSINESS CHAPTER TEST SOLUTIONS
TEST –2
PADVIKSHA BLOG
TOTAL MARKS: 25
I
Multiple Choice Questions (MCQ) (Mark- 5 x 1 = 5)
Write
all questions
1. The following does not characterize business
activity?
d) Salary or wages
2. Activities undertaken out of love and
affection or with social service motive are termed as:
c) Non - Economic Activities
3. The reward for doing a business is
________
a) Profit
4. Large scale units require ________
capital
d) Huge
5. The Primary objective of a business
is
a. Making Profit
II
Very short answer questions. (3x2=6)
Write
Any 3 Questions:
1. Define Economic Activities
Answer:
Economic activities are those activities
which are undertaken to earn money or financial gain for livelihood.
2. 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.
3. State one examples of each Economic
and Non- Economic activity.
Examples of economic activities.
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
Examples of Non-economic activities.
i. Cooking food for family
ii. Celebrating festivals
iii. Watching movies in a theatre
iv. Doing meditation
4. How Business Activities are classified?
Answer:
Business activities are classified on
the basis of size, ownership and function.
5. 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.
III
Short answer questions. (3 X 3 = 9)
WRITE
ANY 3 QUESTIONS
1. Write a note on:
·
Private
Enterprises
·
Public
Enterprises
·
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
2. Explain the classification of
‘Business’
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 (i.e., further
use of material in order industry) or final consumption by consumers.
Classification
Business activities are classified on
the basis of size, ownership and function.
3. Briefly state the human objectives of
a business.
Answer:
Human objectives refer to the objectives
aimed at the well - being as well as fulfilment 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.
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.
5. 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 (1 x 5 = 5)
WRITE
ANY ONE QUESTION
1. Compare business with profession and employment.
2. 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 fulfilment 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.