Nature and Scop of Business

Introduction To Business (Short questions & answers) 

Q:     What is business?

Ans:   Business means all those activities which are related to the production and distribution of goods and services with the object of earning profit.

Q:     Write any three objectives of businessman.

(1)     Earning profit    (2) Supply of standard quality of goods    (3) Creating markets

Q:     Write any three qualities of good businessman.

Ans:  (1) Technical skill    (2) Knowledge of business   (3) Honesty

Q:     Write different kind of industries.

Ans:   (1) Extractive Industries     (2) Constructive Industries    (3) Manufacturing Industries

Q:      What is commerce?

Ans:   Commerce is a branch of business, which includes trade and also all those activities which are related to the transfer of goods from producer to consumers.

Q:      What is trade?

Ans:   Trade means buying and selling of goods with the motive of earning profit.

Q:      Write the types of trade.

Ans:  (1) Internal trade   (2) External trade

Q:     Write three functions of modern business.

Ans:   (1) Production Function   (2) Financial Function     (3) Management Function

Q:      Write three problems before establishing a new business.

 Ans:   (1) Selection of business      (2) Demand for the product    (3) Provision of capital

Q:      What is business organization?

Ans:    Business organization is an institution organized and operated to provide goods and services to the society under the incentive of private.

Q:      Write kinds of organizaton.

Ans:    (1) Material Organization       (2) Human Organization

Q:      What do you mean by economic activities?

Ans:    The activities directed towards the production and acquiring of wealth is called economic activities.

Q:      Mention the obstacles which can commerce removed.

Ans:   (1) Place Obstacle    (2) Danger Obstacle   (3) Human Hurdle

Q:     Write the components of business.

Ans:   There are two components of business.
(1) Industry      (2) Commerce

Sole Proprietorship

Q:    What is sole proprietorship?

Ans:  A business organization in which one person owns and operates the whole business is called sole proprietorship.

Q:    Give any three examples of sole proprietorship.

Ans:   (1) Retailer     (2) Beauty Parlor    (3) Carpenter

Q:     Give any three examples of sole proprietorship.

Ans:   (1) Easy formation     (2) Personal Interest     (3) Sole claim on frofit

Q:    Give any three disadvantages of sole proprietorship.

Ans:   (1) Unlimited liability      (2) Shortage of capital       (3) Lack of specialization

 Q:     Write any three points on legal position of sole proprietorship.

Ans:   (1) No separate legal entity    (2) Unlimited liability     (3) Not regulated by special act