Business Studies

Nature and Purpose of Business

Question:

Explain the characteristics of business.

Answer:

Characteristics of business are as follows:

  1.  An economic activity: All business activities are economic activities and are done for the sole purpose of earning money.
  2. Production and procurement of goods and services: A business activity involves production or procurement of goods and services. A manufacturer is involved in production, while a shopkeeper is involved in procurement.
  3. Sale and exchange of goods and services for the satisfaction of human needs: Sale and exchange of goods and services is done to satisfy human needs.
  4. Dealing in goods and services on a regular basis: One time dealing in goods or services cannot be termed as a business. The business should happen on a regular basis.
  5. Profit earning: Profit earning is the fundamental motive of doing a business. Other objectives cannot be attained without it.
  6.  Uncertainty of returns: Returns can never be certain in business activity. This happens because of external factors which are outside the control of the business organization.
  7. Element of risk: An element of risk is always present in business activity.
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Nature and Purpose of Business

Q 1.

Explain political and legal causes of business risks.

Q 2.

Explain the concept of business.

Q 3.

Can profits be the sole objective of a business? Justify your answer by giving suitable reasons.

Q 4.

What are the functions of commerce?

Q 5.

Define Profession. Discuss its salient features.

Q 6.

State the different types of economic activities.

Q 7.

"No business is risk free."Do you agree? Justify your answer, mentioning the nature and causes of business risk.

Q 8.

Explain with examples the various types of industries.

Q 9.

What is business risk? What is its nature?

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.

What are various types of industries?

Q 13.

Explain any two business activities which are auxiliaries to trade.

Q 14.

Explain the characteristics of business.

Q 15.

If one starts a business, which objective will be of utmost importance to you and why?

Q 16.

How would you classify business activities?

Q 17.

Define commerce. Discuss its importance in the business world.

Q 18.

Why does business need multiple objectives? Explain any five such objectives.

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.