Question 1

Q1: Which objective of business is discussed in the above case?

Accepted Answer

The primary objective of business discussed in the case study is Innovation. Dipak Bharali did not just follow the traditional method of expanding his business by purchasing more looms. Instead, he thought 'outside the box' and pushed himself to create a machine, 'Chaneki', that would automate the p...

Question 2

Q2: How has the identified objective of business contributed to the growth of business unit? Give reasons.

Accepted Answer

The objective of innovation has significantly contributed to the growth of the business unit in the following ways:    Increased Productivity: The case states that the 'Chaneki' device made the machine run 40 times faster than manual weft insertion. This drastic increase in speed led to a major rise...

Question 3

Q3: Why does business require multiple objectives for its sustainable growth?

Accepted Answer

A business requires multiple objectives for its sustainable growth because it has to balance a number of needs and goals to survive and prosper in the long run. Focusing on a single objective, such as profit maximization, can be detrimental.    Balancing Stakeholder Interests: A business interacts w...

Question 4

Q1: Discuss the development of indigenous banking system in Indian subcontinent.

Accepted Answer

The indigenous banking system in the Indian subcontinent developed primarily to support the extensive trading activities that were the mainstay of the ancient economy. As trade flourished, both internally and with foreign lands, it generated surplus income, creating a need for financial institutions...

Question 5

Q2: Define business. Describe its important characteristics.

Accepted Answer

Definition of Business: Business is defined as an economic activity involving the regular production or procurement of goods and services with the objective of earning profit by satisfying human needs in society. Important Characteristics of Business Activities: 1.  An Economic Activity: Business is...

Question 6

Q3: Compare business with profession and employment.

Accepted Answer

Business, profession, and employment are the three main types of economic activities. They can be compared on the following bases: | Basis                 | Business                                                    | Profession                                                                  | Emp...

Question 7

Q4: Define Industry. Explain various types of industries giving examples.

Accepted Answer

Definition of Industry: Industry refers to economic activities that are connected with the conversion of resources into useful goods. It generally involves activities where mechanical appliances and technical skills are used, such as producing, processing, breeding, and raising of animals. Types of...

Question 8

Q5: Describe the activities relating to commerce.

Accepted Answer

Commerce includes all those activities which are necessary for facilitating the free flow and exchange of goods and services from producers to consumers. It acts as a link between producers and consumers. The activities relating to commerce can be classified into two broad categories: 1. Trade: Trad...

Question 9

Q6: Explain any five objectives of business.

Accepted Answer

While profit is a primary objective, a business needs to pursue multiple objectives to survive and prosper in the long run. Five important objectives of business are: 1.  Market Standing: This refers to the position of an enterprise in relation to its competitors. A business must aim to build a stro...

Question 10

Q7: Explain the concept of business risk and its causes.

Accepted Answer

Concept of Business Risk: The term 'business risk' refers to the possibility of a business earning inadequate profits or even incurring losses due to uncertainties or unexpected events. It is an inherent part of every business. Risk arises because future events are unpredictable. There are two main...

Question 11

Q8: What factors are to be considered while starting a business? Explain.

Accepted Answer

Starting a business requires careful planning and consideration of several basic factors to ensure its success. The key factors to be considered are: 1.  Selection of Type of Business: The first decision is about the nature and type of business to undertake. This choice is influenced by customer req...

Question 12

Q1: Why is business considered as economic activity?

Accepted Answer

Business is considered an economic activity because it is undertaken with the primary objective of earning money or a livelihood. Unlike non-economic activities, which are performed out of love, sympathy, or patriotism, business activities such as the production, purchase, and sale of goods and serv...

Question 13

Q10: State the causes of risks involved in business?

Accepted Answer

The causes of risks involved in business can be classified into the following categories: 1.  Natural Causes: These are risks arising from natural calamities over which humans have little control, such as floods, earthquakes, heavy rains, and famine. 2.  Human Causes: These risks are due to human ac...

Question 14

Q2: How does business contribute to the economic development of a country?

Accepted Answer

Business contributes significantly to the economic development of a country in several ways:    Growth and Development: Business activities lead to the overall growth and development of the economy by producing goods and services that satisfy human needs.    Income Generation: Trading and commerce,...

Question 15

Q3: State the different types of economic activities.

Accepted Answer

Economic activities are those undertaken to earn a livelihood. They can be broadly divided into three main categories: 1.  Business: Activities involving the production, procurement, and sale of goods and services with the objective of earning profit. 2.  Profession: Occupations that require special...

Question 16

Q4: State the meaning of business.

Accepted Answer

Business refers to an occupation in which people regularly engage in economic activities related to the purchase, production, and/or sale of goods and services with the main objective of earning profits by satisfying human needs in society. It is a broad term that encompasses industry, trade, and co...

Question 17

Q5: How would you classify business activities?

Accepted Answer

Business activities can be classified into two broad categories: 1.  Industry: This category is concerned with the production or processing of goods and materials. It involves the conversion of resources into useful goods. Industry can be further divided into primary, secondary, and tertiary industr...

Question 18

Q6: What are the various types of industries?

Accepted Answer

Industries can be divided into three broad categories: 1.  Primary Industries: These are concerned with the extraction and production of natural resources and the reproduction of living organisms. They are further divided into:        Extractive Industries: (e.g., farming, mining, fishing)        Ge...

Question 19

Q7: Explain any two business activities which are auxiliaries to trade.

Accepted Answer

Two business activities which are auxiliaries to trade are: 1.  Transport and Communication: Transport removes the hindrance of place by facilitating the movement of raw materials to the place of production and finished goods from factories to the markets for consumption. It connects producers and c...

Question 20

Q8: What is the role of profit in business?

Accepted Answer

Profit plays a crucial role in business and is considered an essential objective for several reasons:    Source of Income: It is a primary source of income for business owners.    Source of Finance: Profits can be reinvested in the business for expansion and growth requirements.    Indicator of Effi...

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