BUSINESS STUDIES CLASS 11 NOTES

     Small scale industries are small in size but play a big role in the economic development of a developing country like in India. India has adopted the ideal of a socialistic pattern of societyy with full employment, balanced regional development and self-reliance as the major objectives.       Small scale firms are helpful in the achievement of these goals in the following ways :   1. Employment : Small scale firms use labour-intensive techniques and, therefore, they have high potential to provide employment to a larger number of people per unit of capital. For every worker employed in large scale industries, about three workers are engaged in small scale industries. Small firms promote self-employment particularly among the educated and professional class. They also provide employment to agriculturists who remain idle during a part of the year. Several studies have revealed that the employment generating capacity of small scale industries is about ten times more than that of the l

Business activities may broadly be classified into two categories:   Industry – Industry involves the production of goods and materials   Commerce – Commerce is concerned with the distribution of goods and services.   Industry and Its Types     Industry means the production of goods for sale by the application of human or mechanical power. It is concerned with changing the form of goods from any stage from raw material to finished product. Thus, Industry creates utilities for the satisfaction of human wants and to earn profits.   Examples of Industry - Converting  cotton into  cloth,  breeding  cattle , constructing houses.   Industry involves in the production of consumer goods and producer goods. Consumer goods are produced for direct use by people e.g. bread butter, cloth, spices etc. Producer goods or capital goods are required for the production of consumer goods e.g. raw materials, machinery, equipment, plastic, rubber,  aluminum ,  etc.     Characteristics of Industry     1.