Business Studies

Nature and Purpose of Business

Question:

Explain with examples the various types of industries.

Answer:

Different types of industries are as follows:

  1. Primary industry: Primary industry includes all those activities, which are connected with extraction and production of natural resources and reproduction and development
    of living organisms, plants, etc. Primary industries are of two types.
    • Extractive: It refers to those industries under which something is extracted out of the earth, water or air. e.g., coal, iron, gas etc.
    • Genetic: It refers to those industries under which the breed of animals and vegetables are improved and made more useful e.g., poultry farms, tree planting etc.
  2. Secondary Industry: Secondary industry includes all those activities, which me connected with using the materials, which have already been extracted at the primary stage. It is of two types.
    • Manufacturing: These industries convert raw materials or semi finished products into finished products, e.g., paper from bamboo, sugar from sugar cane. It has further-been divided into four parts.
    • Analytical: Different things are manufactured out of one thing e.g., petrol, diesel, gasoline out of crude oil.
    • Processing: Those industries wherein useful things are manufactured by making the raw material to pass through different production processes e.g., steel from iron ores.
    • Synthetic: Many raw materials are mixed to produce more useful product e.g., paints, cosmetics etc.
    • Assembling: The parts manufactured by different industries are assembled to produce new and useful product e.g., computers, watches etc.
    •  Construction Industry: Such type of industries include construction of roads, bridges, buildings etc.
  3.  Tertiary or Service Industry: Tertiary industry includes all those activities, which are concerned with providing support services to primary and secondary industries as well as activities relating to trade. It includes banking, finance, insurance, communication, transportation etc.
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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.

"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 the characteristics of business.

Q 14.

Explain with examples the various types of industries.

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.

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.