Notes of OC chapter 3...
business services part 1...
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Answers
Explanation:
2. Which of the broad categories of industries covers oil refinery and sugar milts?
(a) Primary
(b) Secondary
(c) Tertiary
(d) None of these
Answer (b) Oil refinery and sugar mills process tharnateriats (crude oil and sugarcane) which have already been extracted at the primary stage.
3. Which of the following cannot be classified as an auxiliary to trade?
(a) Mining
(b) Insurance
(c) Warehousing
(d) Transport
Answer (a) Activities which are meant for assisting trade are known as auxiliaries to trade. These do not comprise of mining as it is not a support service for trade.
4. The occupation in which people work for others and get remunerated in return is known as
(a) Business
(b) Employment
(c) Profession
(d) None of these
Answer (b) People engaged in business are entrepreneurs who earn income in the form of profit. Professionals provide services directly to clients and do not work for others.
5. The industries which provide support services to other industries are known as
(a) Primary industries
(b) Secondary industries
(c) Commercial industries
(d) Tertiary industries
Answer (d) Tertiary industries provide support services to facilitate activities of primary and secondary industries.
6. Which of the following cannot be classified as an objective of business?
(a) Investment
(b) Productivity
(c) Innovation
(d) Profit earning
Answer (a) Investment has to be made to start and run a business, thus it is an Input and not an objective of business.
7. Business risk is not likely to arise due to
(a) changes in government policy
(b) good management
(c) employee dishonesty
(d) power failure
Answer (b) Good management does not cause any chance of loss or reduction in profits.
Short Answer Type Questions
Question 1. State the different types of economic activities.
Answer : Economic activities are those by which we can earn our livelihood. Economic activities may be further divided into three categories, namely business, profession and employment e.g, a person running a garment business a doctor operating in his chnic and a teacher teaching in a school- all three are doing so to earn their livelihood and are, therefore, engaged in an economic activity.
Question 2. Whyis business considered an economic activity?
Answer : Business may be defined as an economic activity involving the production and sale of goods and services undertaken witn a motive of earning profit by satisfying human needs in society Business IS considered to be an economic activity because it is undertaken with the aim of earning money or livelihood and not because of any sentimental reason like love, affection or sympathy
Question 3. Explain the concept of business.
Answer : The term ‘business’ is denved from the word busy’. Thus, business means being busy. However, in a specific sense, business refers to any occupation In which people regularly engage in an activity with an objective of earning profit. The activity may consist of production or purchase of goods for sale, or exchange of goods or supply of services to satisfy the needs of other people in the society.
Question 4. Howwould you classify business activities?
Answer : Various business acnvmes may be classified into two broad categories ndustry and commerce. industry is concerned With the production or processing of goods and materials. Industries may be divided Into three broad categories namely primary, secondary and tertiary Commerce includes all those activities which are necessary for facilitating the exchange of goods and services. Commerce includes two types of activities, vtz.,
trade and
auxiliaries.
Question 5. What are various types of industries?
Answer : Industry refers to economic activities which are connected With conversion of resources into useful goods. Industnes may be divided into three broad categories namely primary, secondary and teruary
Primary Industries include all those activities, which are connected with the extracnon and production of natural resource