Ch-1: Business Activity

Question 1

Define:

Specialisation

Answer 1

Specialisation is the process of concentrating on one area and becoming an expert in it

Question 2

Give an example of specialisation

Answer 2

BD specialises in production of jute, fertile, etc

Question 3

Define:

Division of Labour:

Answer 3

Division of labour is the seperating of work processes into a number of tasks performed by workers, according to the task they are specialised in

Question 4

State the advantages of division of labour

Answer 4

1. Takes up less time
2. Better quality products
3. Works efficiently
4. Cheaper and quicker to train workers

Question 5

State the disadvantages of division of labour

Answer 5

1. If any of the workers are absent, no one can replace them
2. The workers may get bored in the long run, resulting in procastination, leading to lower quality products

Question 6

Define:

Business

Answer 6

A business is an entity or organization that brings all the factors of production together to produce goods or services to satisfy others

Question 7

What is the formula to find added value?

Answer 7

Added value = Price of the product - Cost of raw materials

Question 8

How to increase added value?

Answer 8

1. Increase the price of the product and keep the cost of raw materials same
2. Lower the cost of raw materials but keep the price same