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Questions and Answers
What is a key feature that distinguishes a single transaction from a business activity?
What is a key feature that distinguishes a single transaction from a business activity?
Which factor is essential for a business to survive in the long run?
Which factor is essential for a business to survive in the long run?
What type of activities are necessary for facilitating the exchange of goods and services?
What type of activities are necessary for facilitating the exchange of goods and services?
Why is risk considered an integral part of business operations?
Why is risk considered an integral part of business operations?
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Which type of organization focuses on processing goods and materials for production purposes?
Which type of organization focuses on processing goods and materials for production purposes?
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What differentiates a business from self-consumption production according to the text?
What differentiates a business from self-consumption production according to the text?
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Which of the following is NOT a form of business organization?
Which of the following is NOT a form of business organization?
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What is the primary objective of every business according to the text?
What is the primary objective of every business according to the text?
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Which of the following is a feature of business activities?
Which of the following is a feature of business activities?
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What is the primary purpose of rectification of errors in accounts?
What is the primary purpose of rectification of errors in accounts?
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What is the risk in business associated with?
What is the risk in business associated with?
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Why should an organization give something back to society?
Why should an organization give something back to society?
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Which of the following is a feature of business activities?
Which of the following is a feature of business activities?
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What is the main objective of business according to the text?
What is the main objective of business according to the text?
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In the context of business, what does the term 'employment' refer to?
In the context of business, what does the term 'employment' refer to?
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Which type of activity should not be considered as a business activity?
Which type of activity should not be considered as a business activity?
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What distinguishes a profession from a business?
What distinguishes a profession from a business?
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Which of the following best describes the classification of business activities based on the text?
Which of the following best describes the classification of business activities based on the text?
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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.
