Question:
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.
Nature and Purpose of Business
Q 1.
Explain the concept of business.
Q 2.
Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.
Q 3.
Explain political and legal causes of business risks.
Q 4.
Define Profession. Discuss its salient features.
Q 5.
What are the functions of commerce?
Q 6.
"No business is risk free."Do you agree? Justify your answer, mentioning the nature and causes of business risk.
Q 7.
What are various types of industries?
Q 8.
If you need , to start doing an economic activity to earn livelihood for your family, which one would you like and why?
Q 9.
What is business risk? What is its nature?
Q 10.
Explain any two business activities which are auxiliaries to trade.
Q 11.
Explain the characteristics of business.
Q 12.
Define commerce. Discuss its importance in the business world.
Q 13.
State the different types of economic activities.
Q 14.
If one starts a business, which objective will be of utmost importance to you and why?
Q 15.
Why is business considered an economic activity?
Q 16.
Compare business with profession and employment.
Q 17.
How would you classify business activities?
Q 18.
What is the role of profit in business?
Q 19.
Why does business need multiple objectives? Explain any five such objectives.
Q 20.
Explain with examples the various types of industries.
Q 21.
Explain the concept of business risk and its causes.
Q 22.
What factors are important to be considered while starting a business? Explain.
Q 23.
What are the hindrances in the commerce? Which agencies are used to remove these hindrances?
Q 24.
Compare business with profession and employment.
Q 25.
Describe the activities relating to commerce.
Q 26.
Distinguish between industry, trade and commerce.
Q 27.
Distinguish between industry, trade and commerce.
Q 28.
"Risk is the element which makes the business different from other economic activities."Do you agree? Justify your answer.
Q 29.
Explain the economic and social objectives of the business.
Q 30.
"Economic and non-economic activities don't substitute, but complementary to each other."Do you agree? Explain.
Q 31.
What are the functions of commerce?
Q 32.
"Earning of profits is the main objective of a business and other objectives are there to aid it only."Do you agree? Justify your answer.
Q 33.
Differentiate between economic and non-economic activities.
Q 34.
Differentiate between insurable risks and non-insurable risks.
