the businessperson would earn lower profits. (c) Warehousing- It refers to the holding or preservation of goods until they are transported for final consumption. Therefore, while starting a business, the availability of alternatives to raise funds must be carefully analysed. A business involves production and exchange of goods and services. Q2 :Explain the characteristics of business. (c) Employment: In this type of economic activity people are hired by organisations to work on a regular basis and are paid in exchange of their services. Business, as an integral part of society, must contribute to solving social problems such as poverty, lack of employment opportunities and environmental pollution. 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. Hence, business is considered an economic activity. (a) Changes in government policy two-internal and external trade. Notes : Nature & Purpose of Business Class 11 Notes | EduRev notes for Class 11 is made by best teachers who have written some of the best books of just for education and the Notes : Nature & Purpose of Business Class 11 Notes | EduRev images and diagram are even better than Byjus! Among the major activities that are performed by an industry are production, processing and manufacturing. Answer : Commerce includes exchange of goods and services. Agriculture, mining and fishing are some of the activities undertaken by primary industries. Thus, every business must aim at creating a healthy environment that encourages its workers to make a positive contribution . EduRev is like a wikipedia The absence of a banking and finance system can obstruct the free movement of goods. (d) Results due to unforeseen circumstances: Risks emerge because of unforeseen circumstances and uncertainties. The higher the profits, the higher is the amount reinvested in the business, and consequently, the higher are the growth prospects and vice versa. Advertisements through television, the Internet, newspapers, the radio and various other media educate the buyers and make them more aware of the goods on sale. Every business, irrespective of its size and nature, whether organised or unorganised, faces risk. It is the capacity to earn profits that decides the sustainability and future growth prospects of a business. Notes : Nature & Purpose of Business Class 11 Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check Q16 :Business risk is not likely to arise due to Although the degree of risk may differ from business to business, there is no way in which a business can escape risk. Analytical industries: These industries analyse a single product (raw material) and then refine and separate different elements from it to prepare their final products. Tertiary industries provide facilities to primary and secondary industries, such as transport and banking, to enable them to function. Answer : It is quite rational for anyone who invests a certain amount of money in business to expect a higher amount in return. SMALL BUSINESS CLASS- XI BUSINESS STUDIES 2. You can download Free Notes : Nature & Purpose of Business Class 11 Notes | EduRev pdf from EduRev by Business, profession and employment can be compared as shown in the chart below. It is no more limited to earning profits and have multiple objectives. Answer : A business can be started by an entrepreneur depending on his or her decision to do so and subject to the fulfillment of certain legal formalities. 3. Business is a continuous process in which semi-finished goods are procured, some value is added to them and the final goods are traded in the market. (c) Commercial industries Let us study this further. If goods and services are produced only to fulfill the businessperson’s own needs, then this activity cannot be considered a business as the goods and services are meant merely for self-consumption. The remuneration paid to blue-collar employees (basically, workers) is termed ‘wages’, while the remuneration paid to white-collar employees (particularly, officers) is termed ‘salary’. FUNDAMENTALS OF ORGANIZING, ITS NATURE, IMPORTANCE AND PROCESS PRESENTED BY, NEELAM BARA AMAN KUMAR SINHA ARJEEUN TIGGA AMBARISH NAFDE VINAY PRATEEK 2. LEARNING OBJECTIVES . The following are some of the important factors that must be considered while starting a business. In this regard, the entrepreneur must appropriately identify the requirement of human resources for the business, both at the worker level and at the managerial level. This is because it does not facilitate trade but infact forms the basis of trade. The common medium of exchange is money. Salary or wages is not a characteristic of business. As against synthetic industries that combine different raw materials to prepare a new product, assembling industries combine parts that are final products in themselves to produce a new product.


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