4. However, in a specific sense, business refers to an occupation in which people regularly engage in activities related to purchase, production and/or sale of goods and services with a view to earning profits. Therefore, every enterprise must aim at improving its workers performance. Thus, one essential characteristic of business is that there should be sale or exchange of goods or services between the seller and the buyer. 2. 5. Along with the transport facility, there is also a need for communication facilities so that producers, traders and consumers may exchange information with one another. Explain any five such objectives. Commerce includes two types of activities, viz., (I). This may further be divided into. Rendering of personalized, expert services. Availability of physical facilities including machines and equipment, building and supportive services is a very important factor to be considered at the start of the business. (viii) Competent and committed worked force: Preparing for IIT JEE or AIPMT or CA CPT, © Copyright Pivotal | These are concerned with using the materials, which have already been extracted at the primary stage. Advertising helps in providing information about available goods and services and inducing customers to buy particular items. Capital is required for investment in fixed assets like land, building, machinery and equipment and in current assets like raw materials, book debts, stock of finished goods, etc. With the help of Notes, candidates can plan their Strategy for particular weaker section of the subject and study hard. Candidates who are pursuing in Class 11 are advised to revise the notes from this post. Agriculture, mining and fishing are some of the examples of these industries. Every business invests money (capital) to run its activities with the objective of earning profit. Availability of raw materials and labour; power supply and services like banking, transportation, communication, warehousing, etc., are important factors while making a choice of location. Each form has its own merits and demerits. These industries provide service facilities. What are the various types of industries? As has been mentioned earlier, economic activities may be divided into three major categories viz. For students who plan to study commerce, Business Studies is an integral part of your syllabus. If the entrepreneur is confident that the demand for the proposed product is likely to be good over time and he can arrange the necessary capital for business, he will start the operation at a large scale. 7. Speculative risks arise due to changes in market conditions including fluctuations in demand and supply, changes in prices or changes in fashion and tastes of customers. Any mistake in this regard can result in high cost of production, inconvenience in getting right kind of production inputs or serving the customers in the best possible way. 5. These activities may be broadly classified into two groups —. Included in this category are transport, banking, insurance, warehousing, communication, packaging and advertising. Also, there is always a possibility of losses being incurred, in spite of the best efforts put into the business. Which of the following does not characterize a business activity? Professional code of conducts is to be followed. This will help the students because the Revision Notes of class 11 is created by a team of skilled and experienced teachers. In addition, activities of cattle-breeding farms, poultry farms, and fish hatchery come under the class of genetic industries. No business can survive for long without earning profit. Some factors favor a large size whereas others tend to restrict the scale of operation. One single transaction of sale or purchase, therefore, does not constitute business. Business may be defined as an economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society. Processing industry which involves successive stages for manufacturing finished products, as in the case of sugar and paper. Pure risks involve only the possibility of loss or no loss. Explain. These industries process such materials to produce goods for final consumption or for further processing by other industrial units. Protection against these risks is provided by insurance of goods. Capital investment required as per size and nature of business. Natural calamities, change in demand and prices, changes in government policy, improvement in technology, etc., are some of the examples of uncertainty which create risks for business because the outcome of these future events is not known in advance. Its a fun way of learning using assessments. One of the objectives of business is to earn profits on the capital employed. After the decisions relating to the above mentioned factors have been taken, the entrepreneur can go ahead with actual launching of the enterprise. It is caused by some unfavorable or undesirable event. Nature and Purpose of Business 11th Business CBSE NCERT Chapter 1 Marketing along with videos,solved papers and worksheets.These are helpful for students in … Manufacturing industries may be further divided into four categories on the basis of method of operation for production. Innovation is the introduction of new ideas or methods in the way something is done or made. What factors are important to be considered while starting a business? Risk can be minimized, but cannot be eliminated. It is used as a measure of efficiency. Objectives are needed in every area where performance and results affect the survival and prosperity of business. Profit is thus the reward for risk taking. must be protected against fire, theft and other risks also employees are required to be protected against the risks of accident and occupational hazards. Objectives refer to all that the business people want to get in return for what they do. The first topic that is covered in this chapter in Notes of BST Class 11 Chapter 1, is an introduction to the concept of business, its nature and purpose in the economy. (a) Production of goods and services (b) Presence of risk (c) Sale or exchange of goods and services (d) Salary or wages (d) Salary or wages 2. Explain any two business activities which are auxiliaries to trade. Industry refers to economic activities, which are connected with conversion of resources into useful goods. The activity may consist of production or purchase of goods for sale, or exchange of goods or supply of services to satisfy the needs of other people. Services may include facilities offered to consumers, business firms and organizations in the form of transportation, banking, electricity, etc. If a student is unable to keep up with the pace of the … → Physical requirements: These requirements include machinery, other equipment, tools and technology that add to the efficiency of a business. Thus, banking helps business activities to overcome the problem of finance. Manager performance and development, therefore, is an important objective.
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