Nature and scope of business

Testing 1 (Direct questions)

1. Define business and bring out the features of business.
2. What is Profession? Explain features.
3. Explain the features of employment.
4. Describe various objectives of business unit.
5. What is the role or importance of profit in business?
6. What is business risk? Explain the causes of business risk.
7. (A) Give the classification of Business activities.
(B) What do you mean by commerce?
8. What is Trade? Explain the types of trade.
9. What are Auxiliaries to Trade?
Distinguish between:
(1) Industry and Commerce
(2) Business and Commerce
(3) Commerce and Trade
(4) Trade and Auxiliaries to Trade.
(5) Business V/s. Profession V/s. Employment.
State with reasons whether the following statements are True or False:
(1) Human wants are limited.
(2) Business includes industry and commerce.
(3) Commerce is concerned with production of goods.
(4) Industry is concerned with the supply side of goods.
(5) Transport creates time utility.
(6) Trade includes commerce.
(7) Business and Commerce have same meaning.
(8) Industry represents demand side while commerce represents supply side.
(9) Intermediaries are unavoidable in modern distribution system.
(10) The scope of commerce is wider than business.
(11) Industrial developments create employment opportunities.
(12) The aim of business is to make profit only.
(13) The object of business is to earn profit.
(14) Trade means buying and selling of goods.
(15) The scope of commerce is limited.
(16) Profession and Business is one and the same thing.
(17) Warehousing creates time utility only.
(18) Transport has place utility.
(19) Coal mining is a manufacturing industry.
(20) Commerce is a branch of business.
(21) Business is a branch of economics.
(22) Commerce depends more on men than machinery.
(23) Wholesaler is in direct contact with ultimate consumers.
(24) Commerce is a wider term than business.
(25) Risk is inevitable in business activities.
(26) Tertiary industry depends upon primary and secondary industry.
(27) Internal traders handle import and export.
(28) Business can be expanded with the help of mercantile agent.
(29) Industrial activities take place after commerce finishes its role.
(30) Changing fashions is one of the important causes of business risk.
(31) Available resources should be used to its maximum.

Testing II
Select the proper answer from the possible choices given in the brackets:
(1) The term commerce is ________ than the term trade. (narrow, wider)
(2) Business includes ______ and ______ (production, distribution,
consumption)
(3) ________ means buying and selling within the country. (Home Trade,
Foreign Trade)
(4) The problem of distance is solved by _______ (money, transport,
warehousing)
(5) Commerce is branch of _____ (business, industry, trade)
(6) Publicity creates ________ (value, utility, demand)
(7) The problem of risk is overcome by _________ (transport, warehousing,
insurance)
(8) Return in business is called ______ (fees, profit)
(9) A courier agent is a ______ (professional, businessman, employee)
(10) Raw material is converted into finished product by _______ industry.
(genetic, extractive, manufacturing)
(11) Actual buying and selling of goods is known as ______ (profession, trade,
industry)
(12) The activity that removes difficulty of risk is _______ (insurance, transport,
adverting)
(13) National level code of conduct is prepared by _____ (professional,
businessmen, employees)
(14) Building of dams is an activity done under -____ industry. (primary,
secondary, tertiary)
(15) Difficulty in finance is solved by _____ (insurance, mercantile, agent,
banking)
(16) A business unit depends upon _____ for selling its output. (industry, society,
employees)
(17) Re-export is similar to _____ (import, export, entrepot)
(18) Retailer is not directly related to _____.
(manufacturer, wholeseller, customer)

Match the following pairs:
(1) Group A Group - B
(1)
(2)
(3)
(4)
(5)
Industry
Warehousing
Insurance
Wholesale
Auxiliaries to Trade
(a)
(b)
(c)
(d)
(e)
Covering of risk
Remove difficulties of trade.
Internal trade
Supply
Creates time utility.

(2) Group A Group - B
(1)
(2)
(3)
(4)
(5)
Banking
Trade
Industry
Insurance
Warehousing
(a)
(b)
(c)
(d)
(e)
Home Trade
Problem of distance
Difficulty of place
Risks in business
Production of goods
(6)
(7)
Transport
Import Trade
(f)
(g)
Buying and selling of goods
Finance

(3) Group A Group - B
(1)
(2)
(3)
(4)
(5)
Morning Walk
Genetic Industry
Local currency
Employment Generation
Business Risk
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
Social objective
Foreign Trade
Warehousing
Horticulture
Non-economic activity
Economic objective
Internal trade
Mining
Insurance
Banking

Write a word or phrase or a term which can substitute each one of the following
statements:
(1) A regular activity concerned with production, distribution of goods and
services for profits.
(2) The industry that depends upon nature.
(3) Buying and selling of goods against money or moneys worth.
(4) Trade in which goods are sold to other country.
(5) Activities that remove all the difficulties in trade.
(6) Name the business activity which is concerned with production of goods and
services.
(7) Name the business activity which is concerned with distribution of goods
and services.
(8) The activity which provides mobility to men and material.
(9) An aid to trade which creates time utility.
(10) An aid to trade which solves the problem of finance.
(11) An activity which is performed for money consideration.
(12) An occupation by which a person agrees to provide expert services for a fee.
(13) Name the industry which is concerned with reproduction of plants and
animals.
(14) Agencies which help in the smooth conduct of business.
(15) Trade transactions between two countries.
(16) An agency which solves the problem of finance.
(17) An activity motivated by profit.
(18) The type of trade in which goods are sold in large quantities.
(19) Trade within the country.
(20) An occupation in which services are rendered for money.
(21) Human activities conducted for earning money.
(22) A type of trade that sales the goods directly to ultimate consumers.
(23) Trade that takes place between the traders of two different countries.
(24) An aspect of business which is concerned with the production of goods.
(25) Various services which facilitate smooth flow of goods and services from
seller to buyer.
(26) The type of industries that provide services.
(27) The type of industries that creates immovable wealth.
(28) Monetary returns earned by a professional for rendering expert services.
(29) An aspect of business which is concerned with distribution of goods.
(30) A type of industry which takes out the wealth from the earth.
Fill in the blanks:
(1) Business is industry and _________.
(2) Industry represents ________ side of goods.
(3) Commerce is trade and ______.
(4) Trade carried on within the country is ______.
(5) Warehousing creates ______ utility in goods.
(6) Commerce comprises a series of activities concerned within ______ of
goods.
(7) Human occupations can be divided into _____ and ______.
(8) Internal trade is divided into two parts _____ and ______.
(9) The problem of distance is solved by ________.
(10) Industries comprises of series of activities concerned with _____ of goods.
(11) Commerce is a branch of ______.
(12) Trade means _______.
(13) Commerce means ______.
(14) Foreign trade is divided into _____, _____ and ______.
(15) The return in business is called ______.
(16) The return in profession is called ______
(17) Business is a part of ______ activities.
(18) Role of commerce starts after the role of ______ gets over.
(19) Wholesale trade is a link between _____ and retailer.
(20) A professional charges _____ as his monetary return.
(21) In earlier days ______ was the basic aim of any business.
(22) Creation of customers is one of the _____ objective of a business.
(23) A reward for taking risk is _______.
(24) Purchasing goods from another country is known as ____ trade.
(25) Services are provided by _____ industry.
Write short notes on
(1) Human activities.
(2) Concept of business
(3) Features of Profession.
(4) Features of Employment.
(5) Economic objectives of business.
(6) Social objectives of business.
(7) Any seven role of profit in business.
(8) Causes of business risk.
(9) Types of Industries.
(10) Concept of Commerce.
(11) Types of Home Trade.
(12) Types of classification of Foreign Trade.
(13) Transport.
(14) Warehousing as an auxiliary to trade.
(15) Insurance.
(16) Banking.
(17) Mercantile Agent.
(18) Advertising and Salesmanship.
(19) Classification of Trade.
(20) Primary Industry.

Write Short Answers for the following:
(1) How does advertising help trading activities?
(2) How do government policies affect business risk?
(3) Describe the scope of internal trade.
(4) Give the classification of foreign trade.
(5) Explain the role of auxiliaries to trade in trading activities.
(6) How does transport help trading activities?
(7) Why is it necessary for a business organization to create customers?
(8) How does banking and insurance help trading activities?
(9) Explain the types of Human Activities.
(10) What are the types of secondary industry?
(11) What is meant by export trade?
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