Ch:1 Concept Of Business Flashcards
What is meant by un-commended human activities.
Un-commanded activities include all those activities, taking place in the body, where we have no control of our own,
e.g., the palpitation of heart and the working of stomach etc.
Define commanded human activities.
The activities in which human desire plays an important part i.e., speaking,
walking and thinking, etc. are called commanded human activities.
Define the term profession
When a person provides his services to society on the basis of his specialized
knowledge and experience in a particular field, it is known as profession (e.g.) doctors, professors, engineers and accountants etc.
Define employment and give its types.
When a person provides his services to another person or any institution on the
basis of predetermined terms and conditions (fixed salary) is known as employment or services.
This may be of three types:.
(a) Government Service
(b) Semi Government Service
(c) Private Service
What are non-economic activities and give their examples.
These activities are done for personal satisfaction and not to earn profit or income.e.g.
(i) Religious activities
(ii) Rights of the parents and relatives
(iii) Patriotism
(iv) Social welfare
What is meant by economic/productive activities.
All commercial and industrial activities, which are connected with the production
and acquisition of wealth are known as economic/productive activities.
Define the term business.
Any legal economic activity that provides goods and services on a regular basis, undertaken or performed for the purpose of earning profit is called business.
Explain the objective of business management.
Management is the backbone of a business. Every business, irrespective of its size and nature, has management to manage and control the various factors of production.
How a business can serve the society
Beside earning profit a business also provides many social services. For example:
(i) Production of quality goods at lower prices.
(ii) Availability of goods in all the areas.
(iii) Promotion and assistance in the cultural activities.
What is meant by favourable balance of payment.
The function and object of business is to make balance of payment favourable by
increasing exports and decreasing imports. Because, this position makes the country prominent in the world.
How does a business make the savings of people profitable.
Business provides following opportunities of investment to the people.
1-Owners own investment (owners equity).
(ii) Investment by purchasing shares and debentures.
(iii) Investment in the shape of Partnership, Musharika or Modarba.
How does a business improve the standard of living of people
It is the national duty and object of business to provide better standard of living to the people. Because, the income of people increases with the expansion in, business activities (e.g.) The developed countries are rich on account of stable business activities.
Define businessman.
A businessman is a person who is engaged in buying and selling or production of goods and services to earn profit.
Or
Every person who is connected with any legal activity for the purpose of making a profit. The person may be a distributor of goods or consultant or owner of a factory
What are the qualities of good businessman.
(1) Ability of foreseeing.
(ii) Courteous.
(iii) Hard working.
(iv) Honest.
(v) Confident.
(vi) Ability to plan and organize.
(vii) Experienced and skilled.
What stages are to be kept in mind before starting a business.
FOR DOING BUSINESS
1-nature of business
2-government restrictions
3-size of business
4- business organisation
5- place of business
6-government incentives
FOR RUNING BUSINESS
1-capital
2-management
3-availability of machines
4-raw material
5-labour force
6-power resources
7-means of transportation
8-distributors
RESULTS OF A BUSINESS
1-chances of loss
2-chances of expansion
3-future of business
