How does commerce helps to overcome Hindrance of Risk and Exchange in Business?
[b] Explain with examples different types of External Trade?
[c]Give two difference between Firm and Company?
[d] What is Spoken Communication?
Answers
Explanation:
Choice Questions
Question 1. Which of the following does not characterise business activity?
(i) Production of goods and services
(ii) Presence of risk
(iii) Sale or exchange of goods and services
(iv) Salary or wages
Question 2. Which of the broad categories of industries covers oil refinery and sugar mills?
(i) Primary (ii) Secondary
(iii) Tertiary (iv) None of them
Question 3. Which of the following cannot be classified as an auxiliary to trade?
(i) Mining (ii) Insurance
(iii) Warehousing (i v) Transport
Question 4. The occupation in which people work for others and get remunerated in return is known as
(i) Business (ii) Employment
(iii) Profession (iv) None of them
Question 5. The industries which provide support services to other industries are known as
(i) Primary industries (ii) Secondary industries
(iii) Commercial industries (iv) Tertiary industries
Question 6. Which of the following cannot be classified as an objective of business?
(i) Investment (ii) Productivity
(iii) Innovation (iv) Profit earning
Question 7. Business risk is not likely to arise due to
(i) Changes in government policy (ii) Good management
(iii) Employee dishonesty (iv) Power failure
Answer: 1. (iv) 2. (i) 3. (i) 4. (ii) 5. (iv) 6. (i) 7. (ii)
II. Short Answer Type Questions
Question 1. State the different types of economic activities.
Answer: Different types of economic activities are of three types:
Business refers to those economic activities which are concerned with the production or purchase and sale of goods or supply of services with the main object of earning profits.
Profession refers to those activities which require special knowledge and skill to be applied by individuals in their occupations.
Employment refers to the occupation in which people work for others and get remunerated in return.
Question 2. Why is business considered an economic activity?
Answer: Any activity is called an economic activity when it is done with a view to earning money. The motive of a business is to earn profit primarily. However, there are some other objectives as well like increasing market share, improvement in productivity, employee satisfaction, consumer satisfaction, social objectives but the main and basic objective of a business is to make profits. Therefore, it is called economic activity.