TN State Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 1.
Define Economic Activities?
Answer:
Activities undertaken with the object of earning money are called economic activities.
eg: Retailer selling goods on his shop.

Question 2.
What do you mean by Business?
Answer:
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production,
distribution, purchase and sale of goods and services.
eg: Fishing, Mining.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 3.
Define Profession?
Answer:

  1. Profession includes those activities, which require special knowledge and skill to be
  2. It includes activities regarding professionals, people who are engaged in a profession are called as professionals, eg: Doctors, lawyers, engineers.

Question 4.
What do you mean by Employment?
Answer:

  1. Employment refers to the occupation in which people work for others and get . remuneration in return in the form salary or wages.
  2. The one who is employed by others are called employees and
  3. The one who employs others is called employers.
    eg: Managers, clerks, factory workers.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 5.
What do you mean by human activities? Explain.
Answer:

TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business 1

Human activity is an activity performed by a human being to meet his / her needs and wants or may be for personal satisfaction. Human activities can be categorized into economic and non-economic activities. The chart below gives a snapshot of human activities.

Economic activities:
Activities undertaken with the object of earning money are called economic activities,
eg: (i) Production of goods by manufacturers,
(ii) Distribution of goods by wholesaler.

Non-economic activities:
Activities under-taken to satisfy social and psychological needs are called non-economic activities,
eg: (i) Cooking food for family,
(ii) Celebrating festivals.

Question 6.
Write short notes on:
(i) Business,
(ii) Profession
Answer:
(i) Business:
Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.

(ii) Professions:
Professions are those occupations which involves rendering of personal services of a special arid expert nature. A profession is something which is more than a job. It is a career for someone who is competent in their respective areas. Those engaged in a profession are called professionals and they earn income by charging professional fee.
eg: Doctors, Engineers.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 7.
Explain the concept of ‘Business’.
Answer:
Business activities are connected with raising, producIng or processing of goods. Industry creates form utility to goods by bringing materials into the form which is useful for intermediate consumption
(i.e., further use of material in order industry) or final consumption by consumers.

Question 8.
Briefly state the human objectives of a business.
Answer:

  1. Human objectives refer to the objectives aimed at the well-being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training.
  2. The human objectives of business may thus include economic well-being of the employees, social and psychological satisfaction of employees and development of human resources.

Question 9.
Explain the characteristics of Business.
Answer:
The essential characteristics of business are as follows:
(i) Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.

(ii) Sale, Transfer or Exchange:
There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.

(iii) Dealing in Goods and Services:
Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.

(iv) Regularity of Dealings:
An isolated dealing in buying and selling does not constitute business. The transactions must be regular.

(v) Profit Motive:
An important feature of business es profit motive. Business is an economic activity by which human beings make their living.

(vi) Element of Risk:
The profit that is expected in a business is always uncertain because it depends upon a number of factors beyond the control of the businessman. For example, change in consumer preference. That is why profit is said to be reward for risk-taking. Thus any business activity includes an element of risk too.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 10.
Compare business with profession and employment.
Answer:

TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business 2

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 11.
Discuss any five objectives of business.
Answer:
(i) Economic Objectives:
Economic objectives of business refer to the objective of earning profit and also other objectives that are necessary to be pursued to achieve the profit objective, which includes creation of customers, regular innovations and best possible use of available resources.

(ii) Social Objectives:
Social objective are those objectives of business, which are desired to be achieved for the benefit of the society.

(iii) Organisational Objectives:
The organisati-onal objectives denote those objectives an organization intends to accomplish during the course of its existence in the economy like expansion and modernization, supplyof quality goods to consumers, customers’ satisfaction, etc.

(iv) Human Objectives:
Human objectives refer to the objectives aimed at the well¬being as well as fulfillment of expectations of employees as also of people who are disabled, handicapped and deprived of proper education and training.

(v) National Objectives:
Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice, etc.

Question 12.
Distinguish between economic and non economic activity.
Answer:

Economic Activities

Non Economic Activities

Economic activities arc those activities which are undertaken to earn money or financial gain for livelihood, eg: fruit seller selling fruits. Non-economic activities are those activities which are undertaken for the sake of pleasure, performed out of love, sympathy, sentiments etc. eg: Mother cooks for her family.
Motive: Sole motive is to earn money or financial gain, eg: Working as a lawyer. Undertaken for satisfaction of social, psycho -logical or emotional needs, eg: Visit to a temple.
Money Measurement:All economic

activities can be valued in monetary terms, eg: Doctor charges ? 500 as consultation fee.

Non-economic activities cannot be valued in monetary terms. These are an expression of a thought, feeling or a gesture, eg: An NGO distributes free clothes to poor children.
Relationship: Economic activities are related to creation of wealth, eg: Ram saved part of his salary to purchase a house of his own. Non-economic activities do not create wealth, eg: Money received as donation is spent on charity work.
Outcome All econqmic activities result in production, procurement, distribution and consumption of goods and services, eg: Nokia produces cell phones and sells across India through its distributors. The end result of a non-economic activity is the mental, emotional or psychological satisfaction of the person doing the activity, eg: Sona enjoys teaching orphans in an orphanage.
Durations: Economic activities are repetitive. They are done on a regular basis to earn a living, eg: Kulfi ice cream seller sells ice creams every evening. Non-economic activities may not be undertaken regularly. Usually they are done during free time, eg: Shankar visits orphanage in her free time.

Question 13.
Do you know that there are white collar, blue collar, pink collar jobs?
Answer:
Blue collar:
A blue collar worker is a working class person who performs manual labour, blue collar work may involved skilled or
unskilled manufacturing, mining, oil field construction.
eg: Managerial position.

White collar:
The white collar worker typically performs work in an office environment and may involve sitting at a computer or desk.
eg: Mechanics.

Pink collar:
A third type of worker is a service worker is called pink collar job whose labour is related to customer inter action. Entertainment sales or other service oriented work.
eg: Teachers, Doctors, Nurses.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Choose the correct answer:

Question 1.
The Primary objective of a business is:
(a) making profit
(b) not making profit
(c) special skill
(d) None of the above
Answer:
(a) making profit

Question 2.
Occupation of a Doctor is:
(a) employment
(b) business
(c) profession
(d) sole proprietor
Answer:
(c) profession

Question 3.
The following does not characterize business activity?
(a) production of goods and services
(b) presence of Risk
(c) sale or exchange of goods and services
(d) salary or wages
Answer:
(d) salary or wages

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

Question 4.
Activities undertaken out of love and affection or with social service motive are termed as:
(a) economic activities
(b) monetary activities
(c) non-economic activities
(d) financial activities
Answer:
(c) non-economic activities

Samacheer Kalvi 11th Notes Commerce Chapter 2 Objectives of Business

→ Main aim of Business is to earn profit. Commerce is considered to be part of business. Business deals with goods and services.

→ Exchange of goods and services should frequently takes place. The profit motive is an important distinguishing feature of business.

→ It is any activity concerned with earning money through production and exchange of goods and services.

→ Risk element is always present so profit is uncertain. Human Activity is an activity performed by a human being to meet his / her needs and wants or may be for personal satisfaction.

Samacheer Kalvi TN Board 11th Commerce Important Questions Chapter 2 Objectives of Business

→ Human activities may be two economic and non-economic activities.

→ Activities undertaken with the object of earning money are called economic activities (i.e.) production of goods by manufacturers selling by retailers.

→ Non-economic activities:
Activities undertaken to satisfy social and psychological needs are called non-economic activities (i.e.) looking good for family.

→ Celebrating festivals doing meditation economic objective of business is to earn profit. Social objective of business which are desired to be achieved for the benefit of the society.

TN Board 11th Commerce Important Questions

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