Question

Ashok is engaged in the production of readymade garments using cotton cloth. Identify the business activity in which Ashok is involved. Also name and define the utility created by Ashok.[All India 2015]

Answer 1

The name of the Utility created by Ashok is called as "Form" Utility.

Explanation:

• In the given case,it has been stated that Ashok is engaged in production of readymade garments using cotton cloth.

• Therefore,the type of business activity in which Ashok is engaged in is called as Manufacturing Business Activity or Production Business Activity.

• In this type of business activity,raw materials are converted into finished goods and then sold in the market to gain profits.

• Also,the type of utility created by Ashok by indulging in manufacturing of readymade garments is called as "Form" utility.

• In Form utility,raw materials(cotton in this example) is converted into finished goods(readymade garments) after going through certain process inside the manufacturing factory or workplace,such processes can be Weaving,spinning,threading,coloring,packaging,etc.

• Such goods are either sold to traders in the market or sold by the manufacturer himself.

Answer 2

Answer:

The business activity in which ashok is involved is manufacturing. The utility created by ashok is form utility. Form utility means changing the form of raw material into finished product.