Why is business considered as economic activity?
Business is considered an economic activity because it has got the following features:
1. Profit Motive: Business means production, purchase and sale of goods with profit motive. Earning profit for satisfying needs make the business an economic activity.
2. Business activities require use of scarce resources: To run business concern the owner must have adequate capital, raw materials and skilled workers. Business requires sufficient funds to be invested in it. All these activities involve monetary transactions. So business is an economic activity.
3. Satisfying human wants: business is a source of income for businessmen and their families. Business can, therefore, be regarded as an economic activity not only as a means of earning income by businessmen but also as a means of satisfying the wants of people.
Popular Questions of Class 11 Business Studies
- Q:-
What factors are to be considered while starting a business? Explain.
- Q:-
Discuss the development of indigenous banking system in Indian subcontinent.
- Q:-
What were the different types of Hundi in use by traders in ancient times?
- Q:-
Define Industry. Explain various types of industries giving examples.
- Q:-
List the major exports and imports in ancient India.
- Q:-
Define business. Describe its important characteristics.
- Q:-
State the different types of economic activities.
- Q:-
Evaluate the need for outsourcing and discuss its limitations.
- Q:-
Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
- Q:-
Define services and goods.
Recently Viewed Questions of Class 11 Business Studies
- Q:-
1. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship (b) Partnership
(c) Company (d) All business organisations2. The karta in Joint Hindu family business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability3. In a cooperative society the principle followed is
(a) One share one vote (b) One man one vote
(c) No vote (d) Multiple votes4. The board of directors of a joint stock company is elected by
(a) General public (b) Government bodies
(c) Shareholders (d) Employees5. Profits do not have to be shared. This statement refers to
(a) Partnership (b) Joint Hindu family business
(c) Sole proprietorship (d) Company6. The capital of a company is divided into number of parts each one of which are called
(a) Dividend (b) Profit
(c) Interest (d) Share7. The Head of the joint Hindu family business is called
(a) Proprietor (b) Director
(c) Karta (d) Manager8. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s cooperative (b) Consumer’s cooperative
(c) Housing cooperative (d) Credit cooperative9. A partner whose association with the firm is unknown to the general public is called
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) Secret partner - Q:-
What is Hundi?
- Q:-
What is business risk? What is its nature?
- Q:-
Define services and goods.
- Q:-
Describe various types of insurance and examine the nature of risks protected by each type of insurance.
- Q:-
What do you understand by maritime trade?
- Q:-
What factors are to be considered while starting a business? Explain.
- Q:-
What is e-banking. What are the advantages of e-banking?
- Q:-
Elaborate the steps involved in on-line trading.
- Q:-
What were the different types of Hundi in use by traders in ancient times?
- NCERT Chapter