Chapter 1 Long Questions Flashcards
Characteristics of a business
- Goods and services
- Profit motive
- Element of risk
- Management
- Capital
- Employment
- Regular transaction
- Creation of Utility
- Transaction for a price
- Reasonable profit
- Exchange Ideas
- Creating Customers
- innovation
- Services of middlemen
- Culture
Elements of a good business
- Effective management
- Large capital
- Planning
- Innovation
- Use of tech
- Quality product
- Increase in sales
- Sound organizational structure
- Reasonable profit
- Ideal location
- Trained staff
- Morden machinery
- Regular demand
- Use of resources
- Favorable balance of payment
Objectives of a business
- Profit Objective
- Social services
3 Employment - Investment
- Nationd Interest
- Economic Dev.
- Innovation.
- Use of tech.
- Optimum Compination
- sales function
- benefit for Employees
- training
- Better living standards
- Use of resources
- Favourable balance of payment
Personal and professional qualities of a business man
- Foresight
- Courteous
- Hardworking
- Honest
- Man of principle
- Confident
- Leadership
- Patient
- Ability to plan and organize
- Capital
- Experienced
- Technical skills
- Desire for progress
- Ability of innovation
- Coordination
- Business knowledge
- Market knowledge
- Social responsibility
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 business.
Any legal activity undertaken or performed for the purpose of earning profit is called business.
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 persos or any institution on the basis of predetermined tems and conditions (fixed salary) is known as employment or service. This may be of three types:
(a) Government Service
(b) Semi Government Service
(c) Private Service
What are non-economie activities and give their examples.
These activities are done for personal satisfaction and not to eam profit or income. c.g.
(i) Religious activities
(Ii) Rights of the parents and relatives
(iii) Patriotism
(iv) Social welfare
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.
Besides 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
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.
Why the effective management is important for a business.
Effective and good management solves many problems of the business. Therefore, good management is necessary to run the business efficiently.
