Question:
What is the role of profit in business?
Answer:
Profits play a vital role in any business. Earning of profits is essential for any business because of the following reasons given below:
- Means of Livelihood: Profits act as a means of livelihood for the entrepreneurs. Without profits, entrepreneurs cannot continue with the business.
- Rewards for taking risks: It provides returns for taking risks.
- Funds for Growth: It would provide funds for growth of the business.
- Symbolic of efficiency and efficacy: Profits symbolise that management is efficient and business is operating in a healthy manner.
- Enhancement in goodwill: A business making higher profits has a better goodwill and reputation in the market.
Nature and Purpose of Business
Q 1.
Explain political and legal causes of business risks.
Q 2.
Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.
Q 3.
Explain the concept of business.
Q 4.
What are the functions of commerce?
Q 5.
Define Profession. Discuss its salient features.
Q 6.
"No business is risk free."Do you agree? Justify your answer, mentioning the nature and causes of business risk.
Q 7.
What is business risk? What is its nature?
Q 8.
What are various types of industries?
Q 9.
Explain any two business activities which are auxiliaries to trade.
Q 10.
If you need , to start doing an economic activity to earn livelihood for your family, which one would you like and why?
Q 11.
Why is business considered an economic activity?
Q 12.
State the different types of economic activities.
Q 13.
Explain with examples the various types of industries.
Q 14.
Explain the characteristics of business.
Q 15.
How would you classify business activities?
Q 16.
If one starts a business, which objective will be of utmost importance to you and why?
Q 17.
Why does business need multiple objectives? Explain any five such objectives.
Q 18.
Define commerce. Discuss its importance in the business world.
Q 19.
What is the role of profit in business?
Q 20.
Compare business with profession and employment.
Q 21.
Explain the concept of business risk and its causes.
Q 22.
What are the hindrances in the commerce? Which agencies are used to remove these hindrances?
Q 23.
Distinguish between industry, trade and commerce.
Q 24.
What factors are important to be considered while starting a business? Explain.
Q 25.
Describe the activities relating to commerce.
Q 26.
Compare business with profession and employment.
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.
