Forms of Business Organization in Class 11 Business

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Questions and Answers

What is a key feature that distinguishes a single transaction from a business activity?

Sale of goods

Risk factor

Regular basis (correct)

Profit motive

Which factor is essential for a business to survive in the long run?

Risk-taking

Lack of information

Uncertainty

Profitability (correct)

What type of activities are necessary for facilitating the exchange of goods and services?

Transportation

Commerce (correct)

Industry

Production

Why is risk considered an integral part of business operations?

To manage unfavorable factors Signup and view all the answers

Which type of organization focuses on processing goods and materials for production purposes?

Industrial organization Signup and view all the answers

What differentiates a business from self-consumption production according to the text?

Regular basis of transactions Signup and view all the answers

Which of the following is NOT a form of business organization?

Entrepreneurship Signup and view all the answers

What is the primary objective of every business according to the text?

Profit Signup and view all the answers

Which of the following is a feature of business activities?

Minimum pollution Signup and view all the answers

What is the primary purpose of rectification of errors in accounts?

Proof of efficiency Signup and view all the answers

What is the risk in business associated with?

Supply chain disturbance Signup and view all the answers

Why should an organization give something back to society?

To motivate employees Signup and view all the answers

Which of the following is a feature of business activities?

Guided by the motive of earning profits Signup and view all the answers

What is the main objective of business according to the text?

To earn profits by satisfying human needs Signup and view all the answers

In the context of business, what does the term 'employment' refer to?

Regular work for another individual in exchange for remuneration Signup and view all the answers

Which type of activity should not be considered as a business activity?

Performing activities based on love or sympathy Signup and view all the answers

What distinguishes a profession from a business?

Businesses are guided by profit motive, whereas professions have ethical codes of conduct Signup and view all the answers

Which of the following best describes the classification of business activities based on the text?

Involves both production and procurement of goods & services Signup and view all the answers

Study Notes

Characteristics of Business

Business involves facilities like banking, transportation, etc.
It involves sale or exchange of goods and services, excluding production for self-consumption.
Business activities are performed on a regular basis, and a single transaction does not constitute a business.

Forms of Business Organization

Business organizations can take various forms, such as industries, commerce, etc.

Classification of Business Activities

Industry refers to the production or processing of goods and materials.
Commerce is concerned with the facilitation of exchange of goods and services.

Definition of Business

Business refers to an occupation that involves regular activities related to the purchase, production, sale, or procurement of goods and services with the primary objective of earning profits.

Economic and Non-Economic Activities

Economic activities are performed to earn money, such as a manager working in an office or a worker in a factory.
Non-economic activities are performed out of love, sympathy, etc., such as a housewife feeding her family.

Profession and Employment

A profession refers to activities that require special knowledge and skill, such as CA or lawyers.
Employment refers to an activity in which an individual works regularly for another person and receives remuneration in return.

Features of Business Activities

Business activities are economic in nature and guided towards earning profits.
They involve the production or procurement of goods and services.

Objectives of Business

The primary objective of business is to earn profits, but it is not the sole objective.
Other objectives include growth, survival, and social responsibility.

Business Risk

Business risk refers to the possibility of inadequate profits or even losses due to uncertainty or other reasons, such as changes in demand, increasing competition, and supply chain disturbances.

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Description

Learn about the forms of business organization, business, trade, and commerce including definitions and characteristics such as profit motive and uncertainty. Understand that regular basis transactions and profit motive are crucial for a business to survive.