After completing the graduation Salman and Ram decided to set up a flour mill to earn
income. There main job is to purchase wheat from the market and have ground it into flour.
Their flour is available in the packets of 5 kg 10 kg and 20 kg. They sell these under the
brand name “Desh ka Atta” and earn a reasonable profit of 10% on cost. They worked very
hard to flourish the business on a regular basis and hence in no time their brand became
popular in the market. The main reasons for the success of their business are superior
quality and low price. Their business was running very well but one day the flour mill caught
fire and as a result they had to suffer a heavy loss. However, Salman and Ram did not lose
their heart and worked even harder. Gradually their business was back to normal. Now they
are fully satisfied with their business.
Quoting the lines from the above para, explain any four characteristics of the business
Answers
Please give the information shortly not in a long please
Answer:
(i) An economic activity : " After completing their grduation , Salman and Ram decided to set up a flour mill to earn income." Business is considered to be an economic activity because it is undertaken with the object of earning money or livelihood.
(ii) Profit earning " they sold theses under the brand name ' Desh ks Atta ' and earn a reasonable profit of 10% on cost." One of the main purposes of business is to earn money by way of profits . Profits is essential to cover costs and risks of the business . Every business must earn a reasonable profit to survive and grow.
(iii) Dealing in goods and services in a regular basis " They worked very hard to flourish the business on a regular basis. . . " Business involves dealings in goods or services on a regular or daily basis . One single transaction of sale or or purchase does not constitute business.
(iv) Element of risk " . . ., the flour mill caught fire ,and as a result they had to suffer a heavy loss" Risk impolies the uncertainty of reward or the possibility of loss . there is laways some element of risk involved in business , e.g ., fire , theft , accidents , etc