Samacheer Kalvi 11th Commerce Guide Chapter 2 Objectives of Business

Tamilnadu State Board New Syllabus Samacheer Kalvi 11th Commerce Guide Pdf Chapter 2 Objectives of Business Text Book Back Questions and Answers, Notes.

Tamilnadu Samacheer Kalvi 11th Commerce Solutions Chapter 2 Objectives of Business

11th Commerce Guide Objectives of Business Text Book Back Questions and Answers

EXERCISE

I. Choose the Correct Answer

Question 1.
The Primary objective of a business is ……………………
a) Making Profit
b) Not Making Profit
c) Special skill
d) None of the above
Answer:
a) Making Profit

Question 2.
Occupation of a Doctor is ……………….
a) Employment
b) Business
c) Profession
d) Sole Proprietor
Answer:
c) Profession

Question 3.
The following does not characterize business activity?
a) Production of goods and services
b) Presence of Risk
c) Sale or exchange of goods and services
d) Salary or wages
Answer:
d) Salary or wages

Question 4.
Activities undertaken out of love and affection or with social service motive are termed as:
a) Economic activities
b) Monetary activities
c) Non Economic Activities
d) Financial Activities
Answer:
c) Non Economic Activities

II. Very Short Answer Questions

Question 1.
Define Economic Activities.
Answer:
Economic activities are those activities which are undertaken to earn money or financial gain for livelihood.

Question 2.
What do you mean by Business?
Answer:
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale, or purchase of goods and services.

Question 3.
Define Profession.
Answer:
Professions are those occupations which involve rendering of personal services of a special and expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas.

Question 4.
What do you mean by Employment?
Answer:
The occupation through which people work for others and get remuneration in the form of wages or salaries is known as employment.
E.g. Managers, Clerks, Bank officials, Factory workers etc.

III. Short Answer Questions

Question 1.
What do you mean by human activities? Explain.
Answer:
Human activity is an activity performed by a human being to meet his/her needs and wants or maybe for personal satisfaction. Human activities can be categorized into economic and non – economic activities.

Question 2.
Write short notes on:
(a) Business
(b) Profession
Answer:
Business:
Business refers to any human activities undertaken on a regular basis with the objective to earn profit through production, distribution, purchase, and sale of goods and senders. It is connected with raising, producing, or processing goods. Business activities are classified on the basis of size, ownership, and function.

Profession:
The occupation involves the rendering of personal services of a special and expert nature. It is a career for someone who is competent in their respective areas. It includes professional activities which are subject to guidelines or codes of conduct laid down by professional bodies. The persons engaged in the profession are called professionals and they earn income by charging professional fees.

Question 3.
Explain the concept of ‘Business.
Answer:
Business refers to any human activity undertaken on a regular, basis with the object to earn profit through production, distribution, sale, or purchase of goods and services. Business activities are connected with raising, producing, or processing goods. The industry creates form utility to goods by bringing materials into the form which is useful for intermediate consumption or final consumption by consumers.

Question 4.
Briefly state the human objectives of a business.
Answer:
It refers to the objectives aimed at the well being as well as the fulfillment of expectations of employees as also of people who are disabled, handicapped, and deprived of proper education and training. It includes the economic well-being of the employees, social and psychological satisfaction of employees, and the development of human resources.

IV. Long Answer Questions

Question 1.
Explain the characteristics of Business.
Answer:
1. Production or Procurement of Goods: Goods must be produced or procured in order to satisfy human wants.

2. Sale, Transfer, or Exchange: There must be a sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

3. Dealing in Goods and Services: Goods produced or procured may be consumer goods like cloth, pen, brush, bag, etc., or producer-goods like plant and machinery. Services refer to activities like a supply of electricity, gas or water, transportation, banking, insurance, etc.

4. Regularity of Dealings: An isolated dealing in buying and selling does not constitute a business. The transactions must be regular.

5. Profit Motive: An important feature of the business is profit motive. Business is an economic activity by which human beings make their living.

6. Element of Risk: The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessman.

Question 2.
Compare business with profession and employment.
Answer:

Nature of Difference	Business	Profession	Employment
Mode of Establishment	Promoter’s decision registration and other formalities as prescribed by law	Membership of a professional body or certificate of practice	Service contract or letter of appointment
Nature of work	Goods and services provided to the public	Personalized service of expert nature	Performing work assigned by the employer
Qualifications	No minimum qualifications are essential	Education and training in the specialized field	Specialized knowledge not required in all cases
Basic Motive	Earning profits by satisfying the needs of society	Rendering service	Earning wages or salary by serving the employer
Capital	Capital investment required as per the size of the firm	Limited capital necessary for the establishment	No capital required
Reward	Profits	Professional fee	Salary or Wages
Risk	Profits are uncertain and irregular	The fee is regular and certain, never negative	Fixed and regular pay, no risk
Transfer of Interest	Transfer possible with some formalities	Not possible	Not transferable
Code of Ethics	No specific code of conduct, moral and ethical dealings only	Professional code of ethics, generally public advertisement prohibited	Rules and regulations of the employing organization

Question 3.
Discuss any five objectives of the business.
Answer:
1. Economic Objectives:
Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes the creation of customers, regular innovations, and best possible use of available resources.

2. Social Objectives:
Social objectives are those objectives of the business, which are desired to be achieved for the benefit of society. Since business operates in society by utilizing its scarce resources, the society expects something in return for its welfare.

3. Organizational Objectives:
The organizational objectives denote those objectives an organization intends to accomplish during the course of its existence in the economy like expansion and modernization, the supply of quality goods to consumers, customers’ satisfaction, etc.

4. Human Objectives:
Human objectives refer to the objectives aimed at the well being as well as the fulfillment of expectations of employees as also of people who are disabled, handicapped, and deprived of proper education and training.

The human objectives of business may thus include the economic well-being of the employees, social and psychological satisfaction of employees, and development of human resources.

5. National Objectives:
Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations.

Question 4.
Distinguish between economic and non-economic activity.
Answer:

Nature of difference	Economic activities	Non-Economic activities
Definition	Economic activities are those activities which are undertaken to earn money or financial gain for livelihood. E.g. Fruit Seller selling fruits	Non-economic activities are those activities which are undertaken for the sake of pleasure, performed out of love, sympathy, sentiments, etc. E.g Mother cooks for her family.
Motive	The sole motive is to earn money or financial gain. E.g. working as a lawyer.	Undertaken for the satisfaction of social, psychological, or emotional needs. E.g Visit a temple or teaching lesser privileged children
Money	All economic activities can be valued in	Non-economic activities cannot be
Measurement	monetary terms. E.g. Doctor charges Rs.500 as a consultation fee	valued in monetary terms. These are an expression of a thought, feeling or a gesture. E.g An NGO distributes free clothes to poor children.
Outcome	All economic activities result in the production, procurement, distribution, and consumption of goods and services. E.g Nokia produces cell phones and sells across India through its distributors	The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity. E.g Sana enjoys teaching orphans in an orphanage.
Relationship	Economic activities are related to the creation of wealth. E.g Ram saved part of his salary to purchase a house of his own.	Non-economic activities do not create wealth. E.g. Money received as donations are spent on charity work.
Durations	Economic activities are repetitive. They are done on a regular basis to earn a living. E.g. Ice cream seller sells ice creams every evening.	Non-economic activities may not be undertaken regularly. Usually, they are done during free time. E.g Sana visits an orphanage in her free time.
Sources of Initiation	Economic activities are initiated to satisfy human needs and wants.	Non-economic activities are initiated to satisfy emotional or sentimental pleasures.

11th Commerce Guide Objectives of Business Additional Important Questions and Answers

Question 1.
Human activities can be categorised into …………….. types.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(b) Two

Question 2.
Which of the following is not characterized as economic activities?
a) Production of goods by the manufacturer
b) Selling by retailers
c) Medical advice rendered by a physician
d) Celebrating festivals
Answer:
d) Celebrating festivals

Question 3.
Occupations may be classified into ……………. categories.
(a) One
(b) Two
(c) Three
(d) Four
Answer:
(c) Three

Question 4.
Occupation in which people work for others and get remuneration is known as ………………….
a) Profession
b) Business
c) Exchange of services
d) Employment
Answer:
d) Employment

Question 5
………………. refers to the occupation in which people work for others and get remuneration in the form of wages or salaries.
(a) Employment
(b) Profession
(c) Business
(d) Industry
Answer:
(a) Employment

Question 6.
Economic activities performed for earning profits is known as ……………
a) Business
b) Employment
c) Profession
d) Avocation
Answer:
a) Business

Question 7.
An enterprise which is owned, managed and controlled by Government and private entrepreneurs are known as ……………
a) Public Enterprise
b) Private Enterprise
c) Joint Enterprise
d) Co-operative Society
Answer:
c) Joint Enterprise

Question 8.
Which one of the following is the example for Public Enterprises?
a) State Trading Corporation (STC)
b) Ramesh Bros
c) Maruti Suzuki
d) Sole Trader Concern
Answer:
a) State Trading Corporation (STC)

Question 9.
The National Objectives of business is ……………………
a) Promote Social justice
b) Special skill
c) Making a profit
d) Satisfaction of employees
Answer:
a) Promote Social justice

Question 10.
The primary objective of a business is ……………
a) Making Profit
b) Not Making Profit
c) Special skill
d) None of the above
Answer:
a) Making Profit

Question 11.
Occupation of a Doctor is …………..
a) Employment
b) Business
c) Profession
d) Sole proprietor
Answer:
d) Sole proprietor

Question 12.
The following does not characterize business activity …………………….
a) Production of goods and services
b) Presence of Risk
c) Sale or exchange of goods and services
d) Salary or wages
Answer:
c) Sale or exchange of goods and services

Question 13.
Activities undertaken out of love and affection or with social service motive are termed as …………….
a) Economic activities
b) Monetary activities
c) Non-Economic activities
d) Financial activities
Answer:
a) Economic activities

Question 14.
The economic activity which is connected with the conversion of resources into useful goods is known as ……………..
a) Commerce
b) Trade
c) Industry
d) Business
Answer:
a) Commerce

II. Very Short Answer Questions

Question 1.
What do you mean by non-economic activities?
Answer:
Activities undertaken to satisfy social and psychological needs are called non-economic activities.

Question 2.
What do you mean by Employment?
Answer:
The occupation through which people work for others and get remuneration in the form of wages or salaries is known as employment.

Question 3.
What are Private Enterprises?
Answer:
An enterprise is said to be a private enterprise where is owned, managed, and controlled by persons other than Government.

Question 4.
What are Joint Enterprises?
Answer:
When an enterprise is owned, managed, and controlled by Government and private entrepreneurs, it is known as joint enterprises. E.g. Maruti Suzuki.

Question 5.
What is Joint Enterprise?
Answer:
An enterprise is said to be a joint enterprise where it is owned, managed, and controlled by Government and private entrepreneurs. Example – Maruti Suzuki

Question 6.
How do you explain large-scale business?
Answer:
The units which require large capital, employ a large number of workers and produce the goods on large scale is known as Large Scale business.
E.g: Suffola, Sunflower oil industries. (Extraction of edible oil from oilseeds in oil mills.)

IV. Long Answer Questions

Question 1.
Briefly explain the Business activities on the basis of Ownership.
Answer:
On the basis of ownership business activities may be broadly grouped into three categories.

D Private Enterprises:
An enterprise is said to be a private enterprise where it is owned, managed, and controlled by persons other than Government.

Sole proprietorship.
Example – Sundar Stationeries
D Partnership firms.
Example – Ramesh Bros.

Public Enterprises:
An enterprise is said to be a public enterprise where it is owned, managed, and controlled by the Government or any of its agencies or both. Public enterprises may be organized in several forms such as

• Departmental undertaking – Public Works Department (PWD)
• Public Corporation – Oil and Natural Gas Corporation (ONGC)
• Government Company – State Trading Corporation (STC)

Joint Enterprises:
An enterprise is said to be a joint enterprise where it is owned, managed, and controlled by Government and private entrepreneurs.
Example: Maruti Suzuki.

Question 2.
Write any three characteristics of Business.
Answer:
1. Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.

2. Sale, Transfer, or Exchange:
There must be a sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

3. Dealing in Goods and Services:
Goods produced or procured may be consumer goods like cloth, pen, brush, bag, etc., or producer goods like plant and machinery. Services refer to activities like a supply of electricity, gas or water, transportation, banking, insurance, etc.