p.6
Role of Business in Economic Development
What is the current status of the Indian economy?
It is emerging as one of the faster growing economies in the world and a preferred FDI destination.
p.12
Classification of Business Activities
What do tertiary industries provide?
Support services to primary and secondary industries and activities related to trade.
p.4
Historical Context of Trade in India
Who were some notable travelers that referred to India's prosperity?
Xuanzang, Al Beruni, Ibn Batuta, and Francois.
p.2
Role of Business in Economic Development
What role did family-based workshops play in economic life?
They were important components for manufacturing.
p.17
Objectives of Business
Why is innovation important for a business?
No business can flourish in a competitive world without innovation.
p.11
Classification of Business Activities
What are some important extractive industries?
Farming, mining, lumbering, hunting, and fishing operations.
p.15
Objectives of Business
What do business objectives refer to?
What business people want to achieve in return for their activities.
p.4
Historical Context of Trade in India
Which city was known as a major center for the export of stones?
Pataliputra (modern-day Patna).
p.1
Introduction to Business, Trade, and Commerce
What do human beings require to satisfy their needs?
Different types of goods and services.
p.15
Introduction to Business, Trade, and Commerce
How does advertising differ from public relations?
Advertising is a paid activity, while PR is usually unpaid and focuses on building relationships.
p.18
Business Risks and Their Nature
What are pure risks in business?
Examples include fire, theft, or strike, which may result in loss.
p.6
Role of Business in Economic Development
What factors contribute to the growth of the Indian economy?
Rising incomes, savings, investment opportunities, increased domestic consumption, and a younger population.
p.6
Historical Context of Trade in India
What economic challenges did India face before 1991?
Weak financial system, inadequate infrastructure, high defense expenditure, high fiscal deficits, and continuous balance of payments deficits.
p.15
Introduction to Business, Trade, and Commerce
What is a popular PR tool mentioned in the text?
Press releases in print and social media platforms.
What is defined as trade in commerce?
The buying and selling of goods.
p.8
Characteristics of Business Activities
What are the two levels at which business activities can be undertaken?
Small and individual level (e.g., shopkeeper) or large scale (e.g., cooperative society or company).
p.18
Objectives of Business
How does the principle 'No risk, no gain' relate to business?
Greater risk involved in a business leads to a higher chance of profit.
p.11
Classification of Business Activities
What is an example of a genetic industry?
Seeds and nursery companies.
p.12
Classification of Business Activities
What are the primary activities involved in the construction industry?
Construction of buildings, dams, bridges, roads, tunnels, and canals.
p.1
Introduction to Business, Trade, and Commerce
How do people typically buy goods and services?
By going to the market, either physical or electronic over the internet.
p.7
Introduction to Business, Trade, and Commerce
How is business defined?
As an economic activity involving the production and sale of goods and services undertaken with the motive of earning profit by satisfying human needs.
p.4
Historical Context of Trade in India
What was India's estimated share of the world's wealth between the 1st and 7th centuries CE?
About one-third to one-fourth.
p.7
Economic Activities and Their Importance
What is the barter system?
An old method of exchange of goods and/or services for another set of goods and/or services.
p.6
Characteristics of Business Activities
What does the term 'business' specifically refer to?
An occupation involving regular activities related to the purchase, production, and/or sale of goods and services with the aim of earning profits.
p.9
Business Risks and Their Nature
What factors can contribute to business risks?
Changes in consumer taste, production methods, workplace strikes, increased competition, fire, theft, accidents, and natural calamities.
p.12
Characteristics of Business Activities
What skills are essential in the construction industry?
Engineering and architectural skills.
p.18
Business Risks and Their Nature
Can business risks be completely eliminated?
No, risks can be minimized but not eliminated.
p.11
Classification of Business Activities
What do extractive industries supply?
Basic raw materials from natural sources.
p.6
Historical Context of Trade in India
What major economic reform approach was adopted in India in 1991?
A three-pronged approach of stabilization, restructuring, and globalization.
p.17
Objectives of Business
How is productivity measured?
By comparing the value of output with the value of inputs.
p.11
Classification of Business Activities
What do genetic industries focus on?
Breeding plants and animals for further reproduction.
p.1
Historical Context of Trade in India
What motivated explorers like Columbus and Vasco da Gama to locate India?
The desire to find trade routes and the wealth associated with Indian goods.
p.7
Characteristics of Business Activities
What is one characteristic that defines business activities?
Business is considered an economic activity because it is undertaken with the objective of earning money or a livelihood.
p.17
Objectives of Business
What types of resources do businesses require?
Physical resources (like plants and machines) and financial resources (funds).
p.11
Classification of Business Activities
What do secondary industries do?
Use materials already extracted to produce goods for final consumption or further processing.
p.15
Introduction to Business, Trade, and Commerce
Why is it practically impossible for producers and traders to contact every customer?
Due to the large number of potential customers.
p.10
Classification of Business Activities
What is included in the term 'industry'?
Activities involving mechanical appliances and technical skills, as well as groups of firms producing similar goods.
p.1
Historical Context of Trade in India
What historical significance does the Indian subcontinent hold in trade?
It was referred to as 'Swaran Bharat and Swaran Dweep' by travelers due to its prosperity.
p.16
Objectives of Business
What is the primary objective of a business?
To reap more than what has been invested, with profit being the excess of revenue over cost.
p.6
Classification of Business Activities
How are economic activities classified?
Into economic activities, which earn a livelihood, and non-economic activities.
p.8
Characteristics of Business Activities
What must be done before goods are offered for consumption?
They must be either produced or procured by business enterprises.
p.1
Objectives of Business
What is the central focus of business activities?
The production and sale of goods and services required by people.
What is the purpose of insurance in business?
Insurance provides protection against various risks such as fire, theft, and accidents, ensuring recovery of losses and compensation.
p.18
Business Risks and Their Nature
What are human causes of business risks?
Unexpected events like dishonesty, negligence, strikes, and management inefficiency.
p.2
Economic Activities and Their Importance
What are the main economic activities mentioned?
Agriculture, domestication of animals, weaving, dyeing fabrics, making clay pots, and handicrafts.
p.10
Classification of Business Activities
What does industry refer to?
Economic activities connected with the conversion of resources into useful goods.
p.14
Transport and Communication
What role does transport play in business activities?
Transport facilitates the movement of raw materials to production sites and finished products to consumers, overcoming the obstacle of place.
p.2
Economic Activities and Their Importance
What were Hundi and Chitties used for?
They were used as documents to facilitate the transfer of money for trading activities.
p.18
Business Risks and Their Nature
What factors determine the degree of risk in a business?
The nature and size of the business.
How do banks support business activities?
Banks provide necessary funds for acquiring assets, purchasing raw materials, and meeting other expenses, thus overcoming financial challenges.
p.15
Objectives of Business
What is the relationship between revenue and cost in the context of business objectives?
Profit is the excess of revenue over cost.
What services do commercial banks offer to traders?
Commercial banks offer overdraft, cash credit facilities, loans, collection of cheques, remittance of funds, and discounting of bills.
p.10
Classification of Business Activities
What is an example of an extractive industry?
Industries that extract natural resources.
p.16
Business Risks and Their Nature
What can happen if a business focuses too much on profit?
It may neglect responsibilities towards customers, employees, investors, and society, leading to opposition and loss of business.
p.3
Role of Business in Economic Development
What role did the indigenous banking system play in trade?
It provided additional capital funds for manufacturers, traders, and merchants for expansion and development.
p.20
Starting a Business: Key Factors
Why is the location of a business enterprise important?
Mistakes in location can lead to high production costs and inconvenience in operations.
p.6
Role of Business in Economic Development
What initiatives has the Government of India launched to support economic growth?
‘Make in India’, ‘Skill India’, and ‘Digital India’.
p.1
Economic Activities and Their Importance
What is the role of different people in the market?
They engage in various economic activities such as production and manufacturing to supply goods and services.
What two types of activities does commerce include?
Trade and auxiliaries to trade.
p.9
Business Risks and Their Nature
What is the element of risk in business?
Risk is the uncertainty associated with an exposure to loss caused by unfavorable events.
p.7
Economic Activities and Their Importance
Is the barter system considered an economic activity? Why?
Yes, because it involves the exchange of goods and services with the objective of fulfilling needs.
p.17
Objectives of Business
What must every enterprise aim for to ensure survival and progress?
Greater productivity through the best use of available resources.
p.2
Role of Business in Economic Development
What significant role did business play in the development of the economy in ancient India?
Trading activities contributed significantly to its prosperity and gains.
p.19
Business Risks and Their Nature
What are some unforeseen events that can cause business risks?
Political disturbances, mechanical failures, and fluctuations in exchange rates.
p.20
Starting a Business: Key Factors
What factors influence the scale of operation for a business?
Confidence in demand for the product and ability to arrange necessary capital.
p.4
Historical Context of Trade in India
What was Peshawar known for in ancient trade?
An important exporting center for wool and importing horses.
p.1
Characteristics of Business Activities
How does business influence our daily lives?
It has a major influence alongside other institutions like schools, hospitals, and political parties.
p.11
Classification of Business Activities
How are secondary industries divided?
Into manufacturing industries and construction industries.
p.3
Economic Activities and Their Importance
What types of banks evolved to support trade and agriculture?
Commercial and industrial banks for trade, and agricultural banks for loans to agriculturists.
p.16
Objectives of Business
What does innovation entail in a business context?
The introduction of new ideas or methods in the way something is done or made.
p.17
Business Risks and Their Nature
What do speculative risks involve?
Both the possibility of gain and the possibility of loss due to changes in market conditions.
p.17
Business Risks and Their Nature
What do pure risks involve?
Only the possibility of loss.
p.9
Business Risks and Their Nature
What is the risk level associated with employment?
Fixed and regular pay; no or little risk.
p.20
Starting a Business: Key Factors
Why is tax planning necessary for businesses?
Due to the influence of various tax laws on business operations.
p.13
Introduction to Business, Trade, and Commerce
What role does transport play in commerce?
It removes the hindrance of place by moving goods to markets.
p.13
Classification of Business Activities
How do auxiliaries to trade support business activities?
By facilitating movement, storage, financing, risk coverage, and sales promotion of goods.
p.17
Objectives of Business
What are the two kinds of innovation in business?
Innovation in products or services and innovation in skills and activities needed to supply them.
p.7
Classification of Business Activities
What distinguishes economic activities from non-economic activities?
Economic activities are performed to earn a livelihood, while non-economic activities are performed out of love, sympathy, or sentiment.
p.1
Role of Business in Economic Development
What did Raghuraj Chaudhary emphasize about business?
That there is a lot more to business than merely making money; it leads to growth and development.
p.14
Transport and Communication
Why is communication important in business?
Communication facilities allow producers, traders, and consumers to exchange information, which is essential for business activities.
p.10
Classification of Business Activities
What are the three broad categories of industries?
Primary, secondary, and tertiary.
p.19
Business Risks and Their Nature
What financial problems can lead to business risks?
Rise in interest rates for borrowing and levy of higher taxes.
p.9
Classification of Business Activities
What are the three major categories of economic activities?
Business, Profession, and Employment.
p.7
Classification of Business Activities
Give an example of an economic activity.
A health worker treating her patient.
p.7
Classification of Business Activities
Give an example of a non-economic activity.
A store owner sympathizing with a needy elderly person and giving medicines for free.
p.18
Business Risks and Their Nature
What are economic causes of business risks?
Uncertainties related to demand, competition, pricing, and collection of dues.
p.8
Characteristics of Business Activities
What distinguishes a business activity from a personal transaction?
Business involves regular dealings in goods or services, not just a single transaction.
p.4
Historical Context of Trade in India
What was Mathura's significance in trade?
An emporium of trade with many routes from South India.
p.9
Comparison of Business, Profession, and Employment
How is profit earned in business compared to professional fees?
Profit in business is uncertain and irregular, while professional fees are generally regular and certain.
p.3
Role of Business in Economic Development
What did the existence of various towns indicate about merchant communities?
It indicated the prosperity of merchant communities and professional classes.
p.13
Introduction to Business, Trade, and Commerce
How does trade remove the hindrance of persons?
By making goods available to consumers from producers.
What are auxiliaries to trade?
Services that assist trade, including transport, banking, insurance, warehousing, communication, packaging, and advertising.
p.18
Business Risks and Their Nature
What creates business risks due to uncertainties?
Natural calamities, changes in demand and prices, government policies, and technological improvements.
p.2
Business Risks and Their Nature
Why was there a need for an intangible form of exchange of money?
To mitigate the risks of theft and robbery during long-distance travel.
p.12
Economic Activities and Their Importance
How does commerce facilitate the flow of goods?
By providing necessary links between producers and consumers.
p.20
Starting a Business: Key Factors
What is an important decision regarding the size of a business?
Determining whether it will be in the MSME sector or a large-scale enterprise.
p.18
Business Risks and Their Nature
What are natural causes of business risks?
Natural calamities like floods, earthquakes, and heavy rains.
p.9
Starting a Business: Key Factors
What is required for establishing a business?
Entrepreneur's decision and other legal formalities, if necessary.
p.10
Comparison of Business, Profession, and Employment
What is the difference in transfer of interest between business types?
Transfer is possible with formalities in some businesses, while it is not possible in others.
p.8
Characteristics of Business Activities
What is an essential characteristic of business regarding goods and services?
There should be a sale or exchange of goods or services between the seller and the buyer.
p.1
Classification of Business Activities
What are the steps involved in business?
Business starts with production and ends with consumption, involving a series of steps to make finished products reach consumers.
p.4
Historical Context of Trade in India
What was Indraprastha known for?
A commercial junction where most routes converged.
p.20
Starting a Business: Key Factors
What does financing a business involve?
Providing necessary capital for starting and continuing the business.
p.9
Comparison of Business, Profession, and Employment
What type of qualifications are needed for a profession?
Qualifications, expertise, and training as prescribed by the professional body.
p.4
Historical Context of Trade in India
What industry was Varanasi famous for?
Textile industry, particularly for gold silk cloth and sandalwood workmanship.
p.16
Objectives of Business
How do objectives help a business?
They enable the business to analyze performance and take necessary steps for improvement.
p.19
Starting a Business: Key Factors
What is the first decision an entrepreneur must make?
The nature and type of business to be undertaken.
p.5
Historical Context of Trade in India
Why was Madura significant in trade?
It was the capital of the Pandayas and controlled the pearl fisheries of the Gulf of Mannar, attracting foreign merchants.
p.13
Business Risks and Their Nature
How is protection against risks provided in commerce?
Through insurance of goods.
p.13
Classification of Business Activities
What are auxiliaries to trade?
Activities that assist trade, such as transport, banking, insurance, warehousing, and advertising.
p.10
Classification of Business Activities
What do primary industries focus on?
Extraction and production of natural resources and reproduction of living organisms.
p.16
Objectives of Business
Why is profit considered an essential objective of business?
It serves as a source of income, finance for expansion, indicates efficient working, reflects society's approval, and builds reputation.
p.2
Role of Business in Economic Development
What was the impact of credit transactions on commercial operations?
They enhanced commercial operations.
p.17
Objectives of Business
What does social responsibility in business refer to?
The obligation of business firms to contribute resources for solving social problems.
p.11
Classification of Business Activities
What is the role of manufacturing industries?
Producing goods through processing raw materials.
p.10
Classification of Business Activities
What types of examples are given for different business activities?
Shops and factories for industry; legal, medical professions, and jobs in banks for commerce.
p.19
Role of Business in Economic Development
How does entrepreneurship contribute to economic development?
By providing self-employment and creating opportunities for employment and profession.
p.8
Business Risks and Their Nature
What does 'uncertainty of return' refer to in business?
The lack of knowledge regarding the amount of profit that will be earned.
p.11
Classification of Business Activities
What is a processing industry?
Involves successive stages for manufacturing finished products, like sugar and paper.
p.11
Classification of Business Activities
What is an assembling industry?
Assembles different component parts to make a new product, like televisions or cars.
p.13
Introduction to Business, Trade, and Commerce
What types of hindrances does commerce address?
Hindrances related to persons, place, time, risk, finance, and information.
p.5
Historical Context of Trade in India
What was Broach known for?
It was the greatest seat of commerce in Western India, linked with important marts by roadways.
p.13
Introduction to Business, Trade, and Commerce
What is the purpose of storage and warehousing in commerce?
To remove the hindrance of time by holding stocks of goods.
p.3
Historical Context of Trade in India
What was the trade situation in the Indian subcontinent historically?
The Indian subcontinent enjoyed a favorable balance of trade where exports exceeded imports.
p.8
Characteristics of Business Activities
What types of goods can businesses deal in?
Consumable items (e.g., sugar, ghee) and capital goods (e.g., machinery, furniture).
p.17
Objectives of Business
What is one of the main objectives of a business?
To earn profits on the capital employed.
Why is warehousing important for businesses?
Warehousing helps in storing goods to prevent loss or damage and ensures availability when needed, maintaining reasonable price levels.
p.10
Characteristics of Business Activities
What is a key characteristic of professional conduct in business?
A professional code of conduct must be followed.
p.17
Business Risks and Their Nature
What does the term 'business risk' refer to?
The possibility of inadequate profits or losses due to uncertainties or unexpected events.
p.11
Classification of Business Activities
What is an analytical industry?
An industry that analyzes and separates different elements from the same materials, like an oil refinery.
p.3
Economic Activities and Their Importance
What were some major export items from ancient India?
Spices, wheat, sugar, indigo, opium, sesame oil, cotton, live animals, and animal products.
p.16
Objectives of Business
Why can't maximizing profit be the sole objective of a business?
Because businesses must balance multiple objectives to achieve excellence and ensure long-term survival and prosperity.
p.19
Starting a Business: Key Factors
What factors should be considered when starting a business?
Factors in the environment and individual perceptions of desirability and feasibility.
p.8
Characteristics of Business Activities
What happens if goods are produced for personal consumption?
It cannot be called a business activity.
p.3
Historical Context of Trade in India
What was the significance of the term 'Swaran Bhoomi' in relation to India?
It referred to the Indian subcontinent's reputation as a land of wealth, as noted by travelers.
p.13
Business Risks and Their Nature
What risks do goods in transport and storage face?
Risks of loss or damage due to theft, fire, accidents, etc.
p.2
Historical Context of Trade in India
What routes were prominent for trading purposes in ancient times?
Silk route and maritime trade.
p.4
Historical Context of Trade in India
What role did Taxila play in ancient trade?
A major center on the land route between India and Central Asia, also a city of financial and commercial banks.
p.7
Comparison of Business, Profession, and Employment
What is the role of emotions in distinguishing economic and non-economic activities?
Economic activities are motivated by financial gain, while non-economic activities are motivated by emotions like love or sympathy.
p.3
Historical Context of Trade in India
Name some major trade centers in ancient India.
Patliputra, Peshawar, Taxila, Indraprastha, Mithila, Maduram, Surat, Ujjain, Kanchi.
p.8
Objectives of Business
What is one of the main purposes of business?
To earn income by way of profit.
p.11
Classification of Business Activities
What does a synthetic industry do?
Combines various ingredients into a new product, such as cement.
p.20
Starting a Business: Key Factors
Why are physical facilities important for a business?
They include machines, equipment, and buildings necessary for operations.
p.20
Starting a Business: Key Factors
What is essential for converting resources into desired outputs?
A competent and committed workforce.
p.8
Characteristics of Business Activities
What is an example of a business activity?
Cooking food and selling it in a restaurant.
p.5
Historical Context of Trade in India
What was the significance of Tamralipti?
It was one of the greatest ports connected by sea and land with the West and the Far East.
p.13
Introduction to Business, Trade, and Commerce
What is trade?
The sale, transfer, or exchange of goods, either physical or virtual.
p.5
Historical Context of Trade in India
What significant change occurred in the Indian economy during the British Empire?
India shifted from being an exporter of processed goods to an exporter of raw materials and a buyer of manufactured goods.
p.19
Starting a Business: Key Factors
Who is referred to as an entrepreneur?
A person who sets up their own business.
p.5
Role of Business in Economic Development
What was the objective of India's planned development after independence?
To achieve a self-reliant socialistic pattern of society.
p.9
Characteristics of Business Activities
What is the nature of work in business?
Provision of goods and services to the public.
What is the significance of warehousing in relation to production?
Warehousing allows businesses to hold stock of goods that are not immediately sold or consumed, facilitating timely availability.
p.20
Starting a Business: Key Factors
What types of assets require capital investment?
Fixed assets like land and machinery, and current assets like raw materials and stock.
p.5
Historical Context of Trade in India
What goods were exported from Ujjain?
Agate, carnelian, muslin, and mallow cloth.
p.5
Historical Context of Trade in India
What was Surat known for during the Mughal period?
It was the emporium of western trade, famous for textiles with gold borders (zari).
p.20
Starting a Business: Key Factors
What should entrepreneurs plan regarding their workforce?
Identify skill requirements and plan for training and motivation.
p.13
Introduction to Business, Trade, and Commerce
What is the function of advertising in commerce?
To inform consumers about available goods and services.
p.16
Objectives of Business
What is market standing in business?
It refers to maintaining goodwill and reputation to succeed and form a distinct identity in the market.
p.20
Starting a Business: Key Factors
What factors should be considered when choosing a business location?
Availability of raw materials, labor, power supply, and services like banking and transportation.
p.16
Objectives of Business
Why is innovation important for a business?
It is central to growth and provides a competitive edge in the market.
p.7
Characteristics of Business Activities
What is the significance of understanding the characteristics of business activities?
It helps to appreciate how business activities differ from other societal activities.
p.3
Economic Activities and Their Importance
What were some major imports into ancient India?
Horses, animal products, Chinese silks, linen, wine, gold, silver, and copper.
p.3
Historical Context of Trade in India
What types of towns existed in ancient India?
Port towns, manufacturing towns, mercantile towns, sacred centers, and pilgrimage towns.
p.5
Historical Context of Trade in India
What did the Chinese traders purchase in Kanchi?
Pearls, glass, and rare stones.
p.3
Classification of Business Activities
What is 'Hundi' in the context of Indian trade?
A financial instrument used by Indian merchant communities for trade transactions.
p.5
Historical Context of Trade in India
What was Kaveripatta known for in terms of trade?
It was a center for trade in perfumes, cosmetics, silk, wool, cotton, and precious stones, and also for shipbuilding.
p.9
Comparison of Business, Profession, and Employment
What distinguishes a profession from business?
A profession requires membership in a professional body and a certificate of practice.
What types of risks does insurance cover in business?
Insurance covers risks related to factory buildings, machinery, goods in stock or transit, and employee accidents.
p.5
Role of Business in Economic Development
What characterized the measures taken towards India's economic rebuilding?
Centralized economic planning and emphasis on public investment in basic and key industries.
p.17
Business Risks and Their Nature
What are the two types of business risks?
Speculative risks and pure risks.
p.19
Starting a Business: Key Factors
What is the definition of entrepreneurship?
A systematic, purposeful, and creative activity of identifying a need, mobilizing resources, and organizing production to deliver value.
p.8
Objectives of Business
Why do businessmen strive to maximize profits?
Because no business can survive for long without profit.
p.13
Introduction to Business, Trade, and Commerce
What is commerce primarily concerned with?
Removing hindrances in the process of exchange.
p.19
Starting a Business: Key Factors
What influences an entrepreneur's decision on the type of business?
Customer requirements in the market and the entrepreneur's technical knowledge and interest.
p.13
Economic Activities and Their Importance
What role do banking and financing institutions play in commerce?
They provide the capital required for various activities.
p.13
Role of Business in Economic Development
Why is trade essential for large-scale production?
It makes goods available to consumers, which is necessary for large-scale production.
p.15
Introduction to Business, Trade, and Commerce
What are the two main tools used to promote products and services?
Advertising and Public Relations (PR).
