Chapter - 1 Business, Trade and Commerce
Question 1
What are the different types of economic activities?
Answer: There are various types of economic activities. Namely,
• Profession
• Business
• Employment
Question 2
Name one economic pursuit, in which expertise is required.
Answer: Profession is an economic pursuit, in which expertise is required.
Question 3
Name the industries that furnish support to other fellow industries.
Answer: Tertiary industries are involved in furnishing support to all the primary and
secondary industries.
Question 4
Can fishing be contemplated as a primary industry?
Answer: Yes.
Question 5
Categorise the occupation in which the employees work for others and get paid in
return.
• Profession
• Business
• Employment
• None of the above
Answer: Employment
Question 6
Sort the following into a business concern, employment and profession.
• Farmer
• Clerk
• Lawyer
• Doctor
Answer:
• Farmer – Business
• Clerk – Employment
• Lawyer – Profession
• Doctor – Profession
Question 7
What is the reward that a businessman earns for bearing risk?
Answer: When a businessman bears the risk, the reward that he’ll get is – earning the
profit.
Question 8
What is the difference between Business and Profession?
Answer:
Business Profession
In the business, capital investment In the profession, limited capital is
is necessary according to the size required for the establishment of the
and nature of the business. business enterprise.
Here, profits are uncertain. Here, the risk factor is not to that
extent.
Question 9
Mention the risks that are involved in the business.
Answer: Every aspect has its own risk factors. So does business has too. Namely,
• Business risks arise due to a few uncertain and unexpected situations
• It is a quintessential part of any business
• However, profit is the reward for bearing the risks
Question 10
What are the objectives of a business?
Answer: Objectives of business are mentioned below:
• Innovation: Every business concern must come up with novice ideas, inventions
and implement them; which are helpful for survival and growth.
• Productivity: Productivity is certainly determined by contrasting the value of the
output with the value of the input.
• Earning Profits: Any business entity that is operating must earn a reasonable
amount of profits in order to sustain survival and growth.
Question 11
What is commerce and its significance in modern life?
Answer: Commerce is the control of business among economic agents. Usually, it
refers to the exchange of commodities, services or items of value, among companies or
entities.
The significance of Commerce are,
• Commerce acts as a catalyst between the manufacturers and customers
• It establishes employment opportunities
• It encourages trade in the Global level
• Assists in the growth of developing the industries
• Helps during exigencies like the natural calamities – earthquake, flood, drought
etc.,
Question 12
Under which type of industry do oil refinery and sugar mills are classified?
Answer: Secondary industry
Question 13
What are the differences between primary and secondary industry?
Answer:
Primary Secondary
Pursuits that are concerned with These industries manufacture raw
the extraction and manufacturing materials to produce the commodities
of natural resources. for final utilisation.
Classified as follows: Classified as follows:
• Extractive industries • Manufacturing industries
• Genetic industries • Construction industries
Example: Mining, fishing Example: Oil refinery, Sugar mill
Question 14
How does a trader get rid of the hindrance of a person?
Answer:
• Getting rid of hindrance of a person by making the commodities obtainable to the
customers from the manufacturers via trade.
• Transportation removes hindrance of a location by transporting the commodities
from the place of manufacturing to the market place for selling purpose.
• However, insurance removes the hindrance of perils of loss or damage of
commodities due to dire, theft and accidents etc.,
• Advertising removes the hindrance of the data by keeping the customers
informed regarding the commodities and services that are obtainable in the
market place.
Question 15
Insurance is known as the tertiary industry. Explain.
Answer: Insurance is the support service to both the primary and secondary industries.
The tertiary industry is the section of the economy that contributes services to its
customers, including a broad array of businesses such as schools, financial institutions
and restaurants. It is also called as the tertiary sector or service industry/sector.
