1. Evolution of Business

Business has changed over time as human needs, technology and trade have developed.

2. Human Activities

Human activities are divided into two broad categories.

3. Economic Activities

Industry is concerned with the production, processing and extraction of goods and services. It is classified into three broad categories.

Primary Industry

Secondary Industry

Manufacturing Industry

Tertiary Industry

Q1. Which of the following is an economic activity?

Q2. The main objective of a business is to:

Q3. Which one of the following is a non-economic activity?

Q4. Which feature distinguishes a business from a one-time sale?

Q5. Which of the following is NOT a characteristic of business?

Q6. A doctor who provides medical treatment after obtaining an MBBS degree is engaged in:

Q7. Which activity is carried out under an employer–employee relationship?

Q8. Which of the following is the first stage in the evolution of business?

Q9. Which of the following activities involves the sale or exchange of goods?

Q10. Which statement is correct?

Q11. Which of the following is an economic objective of business?

Q12. Which objective focuses on providing quality goods at reasonable prices?

Q13. The possibility of inadequate profits or losses due to uncertainties is known as:

Q14. Which one of the following is NOT a cause of business risk?

Q15. Which characteristic is always associated with business risk?

Q16. Which industry is engaged in extracting natural resources?

Q17. Dairy farming is an example of:

Q18. Which of the following belongs to the Secondary Industry?

Q19. Which type of manufacturing industry converts crude oil into petrol, diesel and kerosene?

Q20. Construction of bridges, roads and buildings comes under:

Q21. Commerce includes:

Q22. Buying and selling of goods and services is known as:

Q23. Trade carried on within the boundaries of a country is called:

Q24. Wholesale trade mainly involves:

Q25. Which type of trade involves selling goods to another country?

Q26. Import trade means:

Q27. Entrepot trade refers to:

Q28. Which of the following is an auxiliary to trade?

Q29. Which auxiliary helps in protecting business against financial losses due to risk?

Q30. Which auxiliary creates awareness about products among consumers?

Q31. Rohan started selling homemade chocolates every weekend to earn profit. Which characteristic of business is shown?

Q32. A company earns high profits but sells unsafe products. Which objective of business is being ignored?

Q33. A lawyer provides legal advice after obtaining a law degree and Bar Council registration. This activity is an example of:

Q34. A retailer purchases goods from a wholesaler and sells them to final consumers. This is an example of:

Q35. A farmer grows wheat only for his family’s consumption. This activity is:

Q36. A factory purchases raw cotton and converts it into cloth. This activity belongs to:

Q37. Which auxiliary to trade mainly helps businesses by providing financial assistance and credit?

Q38. A trader buys laptops from Japan and sells them directly to Nepal without bringing them into India. This is:

Q39. Which statement is correct regarding business risk?

Q40. Which of the following best explains the relationship between Industry, Trade and Commerce?

Q41. Which of the following is the best example of an economic activity?

Q42. Which feature makes business different from gambling?

Q43. Which of the following is NOT an auxiliary to trade?

Q44. Which industry is mainly concerned with providing services to consumers and businesses?

Q45. Which objective of business helps in building goodwill among customers?

Q46. A company stores goods safely before selling them during the festive season. Which auxiliary to trade is involved?

Q47. Which of the following correctly matches the activity with its type?

Q48. A businessman imports coffee beans from Brazil into India. This is:

Q49. Which statement is correct?

Q50. Which of the following best defines Commerce?

Q1.

Riya prepares handmade candles at home and sells them regularly through an online marketplace. Identify the economic activity and justify your answer.

Q2.

A doctor starts his own clinic after completing MBBS and registering with the Medical Council. Explain why this is a profession and not a business.

Q3.

Rahul works as an accountant in a private company and receives a fixed monthly salary. Identify the type of economic activity and give two reasons.

Q4.

A businessman earns huge profits but knowingly sells defective electrical products. Which objective of business has been ignored? Explain.

Q5.

A farmer grows vegetables only for his family’s consumption. Is this a business activity? Give reasons for your answer.

Q6.

A company stores its products in warehouses before supplying them during the festive season. Which auxiliary to trade is being used? Explain its importance.

Q7.

A trader purchases tea from Assam and sells it in Delhi through wholesalers and retailers. Identify the type of trade involved and explain the distribution process.

Q8.

A manufacturing company converts raw cotton into fabric. Identify the type of industry and explain your answer with suitable reasons.

Q9.

A businessman imports laptops from Japan and sells them in India. Identify the type of trade and explain how it differs from export trade.

Q10.

A company faces heavy losses due to floods. Identify the cause of business risk involved and explain whether such risks can be completely eliminated.

Q11.

A poultry farm breeds high-quality chickens using scientific methods to increase egg production. Identify the type of industry involved and justify your answer.

Q12.

A petroleum refinery converts crude oil into petrol, diesel and kerosene. Identify the type of manufacturing industry and explain your answer.

Q13.

An automobile company purchases tyres, engines, batteries and seats from different suppliers and assembles them into a finished car. Identify the type of manufacturing industry.

Q14.

A clothing company advertises its products through television, newspapers and social media before launching a new collection. Which auxiliary to trade is being used? Explain its importance.

Q15.

A trader purchases mobile phones from China and sells them directly to customers in Nepal without bringing them into India. Identify the type of trade and explain your answer.

Q16.

A company transports fresh fruits from Himachal Pradesh to different cities across India using refrigerated trucks. Which auxiliary to trade is involved? Why is it important for the business?

Q17.

A start-up takes a bank loan to purchase new machinery and expand production. Which auxiliary to trade is involved? Explain how it supports business growth.

Q18.

A business owner purchases insurance for his factory against fire and theft. Explain why insurance is considered an important auxiliary to trade.

Q19.

A construction company is building a national highway connecting two major cities. Identify the type of industry involved and state two characteristics of this industry.

Q20.

A young entrepreneur wants to start an online clothing business. Suggest any four characteristics of business that he should understand before starting the venture.

Case Study 1 – Online Bakery

Ananya started an online bakery from her home. She prepares cakes every day and sells them through social media. She earns regular profits and reinvests some of the income to expand her business.

1. Identify the economic activity.
2. State any two characteristics of business shown in the case.
3. What is the main objective of Ananya’s activity?

Case Study 2 – Chartered Accountant

Rahul completed his Chartered Accountancy course and obtained membership of ICAI. He now provides taxation and auditing services to different clients and charges professional fees.

1. Identify the economic activity.
2. Why is this not a business?
3. Name any two features of a profession.

Case Study 3 – Floods Affect a Factory

A textile factory suffered heavy losses after severe floods damaged its machinery and raw materials. Production stopped for several weeks.

1. Which concept of Business Studies is highlighted?
2. Identify the cause of the risk.
3. Can such risks be completely eliminated? Give a reason.

Case Study 4 – Coffee Exporter

A company purchases coffee from farmers in Karnataka and exports it to Germany. To ensure safe delivery, it uses banks, insurance companies and transport services.

1. Which type of trade is involved?
2. Name any three auxiliaries to trade mentioned in the case.
3. Why are auxiliaries important for business?

Case Study 5 – Automobile Company

An automobile company purchases engines, tyres, batteries, seats and other parts from different suppliers. These parts are assembled to manufacture finished cars.

1. Identify the type of industry.
2. Name the type of manufacturing industry.
3. Give one more example of the same manufacturing process.

Case Study 6 – Helping Others

Every Sunday, Meera visits an old-age home and teaches elderly people how to use smartphones. She does not charge any money and enjoys helping others.

1. Identify the type of activity.
2. Is this an economic activity? Give a reason.
3. State the main objective of this activity.

Case Study 7 – Dairy Farm

A dairy farm uses scientific breeding techniques to improve the quality of cows and increase milk production. The milk is supplied daily to nearby cities.

1. Identify the type of industry.
2. Which branch of the industry does it belong to?
3. Give one more example of this branch.

Case Study 8 – Supermarket Chain

A supermarket purchases goods in large quantities from manufacturers and wholesalers. It stores the goods in warehouses and sells them to customers through its retail outlets. It also advertises special discounts through newspapers and social media.

1. Name any two auxiliaries to trade mentioned in the case.
2. Which type of trade is carried out by the supermarket?
3. Why is advertising important for such businesses?

Case Study 9 – Road Construction Project

ABC Infrastructure Ltd. has been awarded a government contract to construct a six-lane expressway connecting two major cities. The project requires huge investment, skilled labour and advanced machinery.

1. Identify the type of industry.
2. State any two characteristics of this industry.
3. Give one more example of a similar project.

Case Study 10 – New Business Venture

Neha plans to start an online handicraft business. Before investing, she studies customer demand, arranges finance from a bank, purchases insurance for the business and hires a transport company to deliver products across India.

1. Identify any three auxiliaries to trade mentioned in the case.
2. Why is business risk unavoidable in this venture?
3. State the primary objective of Neha’s business.

PYQ 1 (2 Marks)

Differentiate between Business and Profession on any two bases.

PYQ 2 (3 Marks)

Explain any three characteristics of Business.

PYQ 3 (3 Marks)

State any three causes of Business Risk.

PYQ 4 (5 Marks)

Explain the classification of Industry with suitable examples.

PYQ 5 (5 Marks)

Explain Commerce and its auxiliaries.

PYQ 6 (3 Marks)

Explain any three objectives of business.

PYQ 7 (5 Marks)

Differentiate between Business, Profession and Employment.

PYQ 8 (5 Marks)

Explain the different types of Industries with suitable examples.

PYQ 9 (3 Marks)

Differentiate between Internal Trade and External Trade.

PYQ 10 (5 Marks)

Explain the role of Auxiliaries to Trade in facilitating business activities.

Instructions: Choose the correct answer and click “Submit Quiz” to see your score.

Instructions: Attempt all questions and click “Submit Quiz” to view your score.

Instructions: Select the correct answer for each question and click Submit Quiz.

Instructions: Choose the correct answer and click Submit Quiz to view your score.

Instructions: Answer all questions and click Submit Quiz to see your score.

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