Business Studies

Nature and Purpose of Business

Question:

Explain political and legal causes of business risks.

Answer:

The causes of business risk include:

  1. Changes in government policies regarding foreign trade
  2. Entry of multinational companies
  3. Changes in laws affecting the business like licensing, taxation etc.
  4.  Changes in consumer laws and labour laws.

For example, an increase in tax rates may reduce profit margin of the business or an
increase in minimum wages may increase labour cost for the business.

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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.

State the different types of economic activities.

Q 10.

Explain any two business activities which are auxiliaries to trade.

Q 11.

If you need , to start doing an economic activity to earn livelihood for your family, which one would you like and why?

Q 12.

Why is business considered an economic activity?

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.

Define commerce. Discuss its importance in the business world.

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.

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.