BUSINESS STUDIES CLASS 11 NOTES

True or False A) The sale of old TVset by Mr. Y does not constitute business B) Industry creates form utility C) Fishing is an extractive industry D ) Transportation is a part of trade    E) Trade involves more risk than industry  F) Warehousing removes the hindrance of place G) Assembling of a radio set is a genetic  H) Commerce is a part of trade. Answers : True - a, b, c   False - d, e, f, g, h Fill in the blanks A) Poultry firm is a ______ Industry. B) Mining is a  ______ Industry C) A sugar mill is a _____ industry D) Metro rail is a _____ industry E) An oil refinery is a _____ industry F) Cloth making is a _____ industry G) Motor cycle plant is  _____ industry  H) A fertilizer plant is _____ industry  Answers  : a- Genetic , b- extractive , c - manufacturing, d- construction, e- analytical, processing, g- assembling, h- synthetical

     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...

            Commerce and Its Nature            Commerce refers to all those activities which are necessary for bringing goods from the place of their consumption. Commerce includes not only trade but also services such as transport, warehousing, packaging, insurance, banking and sales promotion which are incidental or auxillaries to trade. Characteristics of Commerce 1. Economic Activity : Commerce is an economic activity because it consists of activities which are undertaken for earning profits. A trader buys goods with the aim of selling them at a profit. 2. Exchange of goods and services : Commerce involves exchange and distribution of goods and services. Goods may be purchased or produced for sale. 3. Profit Motive : The motive of commercial activities is to earn profits. Any activity which does not have the aim of profit will not be a part of commerce. 4. Regularity of transaction : An isolated transaction does no...

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,...