Question

Rama bought a readymade dress for 5000. Her friend liked the design of dress very
much, so Rama sold the same dress to her friend for 5500 and made a profit of 3500.
After completing her studies Rama opened a shop of selling readymade dresses for
girls.
(a) Can transaction between Rama and her friend be termed as business?
(b) State the features related to a.
(c) Can the sale of dresses on her shop be called as business?​

Answer 1

Answer:

She didn't make a profit of 3500. Only 500.

Answer 2

A) = No, B) = countinuity, C) Yes

Explanation:

A) No,

• The transaction between Rama and her friend cannot be considered as a business transaction or activity.

B) countinuity,

• The reason of this transaction to not consider as a business transaction is, that a business transaction carries countinuity, Which means it will be considered a business activity, only when an activity to earn profit, happens on regular basis. In this case it occurs only one time. Thus, this is not a business transaction or activity.

C) Yes

• Sale of a dress on her shop will be considered as a business, because there will be a continuity in business transactions.