Question:
Explain the economic and social objectives of the business.
Answer:
- Economic Objectives:
- Creating consumers: It means producing and distributing such useful goods and services which satisfy the consumers.
- Innovation: Innovation includes production of new products, replacing older products with latest and with new ones, improvement and modernisation in production methods so as to improve quality and/or reduce cost.
- Effective utilisation of Resources: A business tries to minimise and optimise its resource usage so as to minimise the cost and maximise the profits. By reducing cost and increasing profits, it ensures survival, growth, expansion and diversification.
- Earning profits: According to Dicksee, "Business is a form of activity pursued primarily with the objective of earning profit for the benefit of those on whose behalf activity is conducted.
- Creating Goodwill: When a business is able to make good profits and other economic activities, its goodwill amongst investors and competitors goes up.
- Social Objectives
- Quality product: A business aims at providing qualify product so that it has good demand in the market and consumers feel satisfied to consume it. Inferior goods do not satisfy consumers.
- Environment protection: Another social objective of a business is protecting the environment from pollution of any kind and to ensure that nonrenewable resources are not depleted.
- Fair and reasonable price: Prices must be fair and reasonable. Business aims at maximizing social satisfaction in right sense instead of maximizing profit.
- Generating employment: Business activities aim at providing employment opportunities for entrepreneurs and self-employed persons. Who provide some goods and services to businessmen?
- Social security: Businessmen follow certain social welfare programmes like group insurance, provident fund, pension fund, medical facilities of employees, etc. it enhances social security.
- Good industrial relations: Employees are an important part of an organization. Their problems and grievances must also be considered, while running a business. Business must aim at building sound industrial relations.
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.
