CBSE Class 11 Business Administration Introduction To Business Operation Notes

Other Subjects Concept Notes for Class 11: Introduction To Business Operation

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CBSE Class 11 Business Administration Introduction To Business Operation Notes 1

CBSE Class 11 Business Administration Introduction To Business Operation Notes 2


A Case Study
 
Sania was a very talented girl who loved to do flower arrangements. On any Birthday or party or occasion she would always gift her near & dear ones with a bouquet made by her. Seeing her interest & creativity Sania’s mother advised her to contact a florist and sell her flower arrangements to that particular shop. She approached many local florists but all denied saying that they don’t want any help. Dejected, she came back & thought of a brilliant idea of starting her own florist outlet. In 2010 she started her own outlet at home. Her flower arrangements were widely appreciated. Slowly and steadily she started getting orders from hotels, for marriages, parties, functions, retail outlets, online orders. The orders picked up faster than she could even dream of. Now she needed more money to buy flowers & other accessories. She borrowed money from bank to cover all her expenses. In 2014 her sales increased manifold (almost 60%) from 2010. Her success story is an example for all those people who have concept in mind & want to earn.
 
CBSE Class 11 Business Administration Introduction To Business Operation Notes 3
 
1.1 Human Activities
 
After reading Sania’s story it is clear that all human beings have different needs and to satisfy these needs they perform any activity. Such activities are termed as ‘Human activities’. It can be divided into 2 categories :—
 
(i) Economic Activities :- Those activities which aim at earning a livelihood are termed as Economic Activities. It is concerned with proper allocation & use of Economic resources. For example -
 
• Doctor, Lawyer, teacher working in their profession.
• Working in a factory or office.
• Production, distribution & consumption of goods & services.
 
Economic Activities can further be classified into 4 categories:-
 
1) Business
2) Profession
3) Employment
4) Services
 
(ii) Non-Economic Activities:- Activities undertaken to satisfy emotional, social and psychological needs are termed as Non Economic Activities. They cannot be measured in monetary terms. For example –
 
• Businessman working in old age homes on Sunday.
• Teacher teaching his/her own child.
 
1.2 Types of Economic Activities : -
 
Economic Activities can be further classified into 4 types –
 

1. Business :- Business refers to those economic activities which are connected with production, purchase, sale or distribution of goods or services with the motive of earning profit. For example – Manufacturing, wholesale, shop owner etc.
CBSE Class 11 Business Administration Introduction To Business Operation Notes 4
 

2. Profession :- Profession refers to that economic activity which requires specialized knowledge & skill to render service to various section of society. The individuals engaged in this activity are called professionals. For example – Lawyer, Doctor, Painter etc.
CBSE Class 11 Business Administration Introduction To Business Operation Notes 5
 

3. Employment :- Employment refers to that economic activity where people work for others & get some remuneration in return (like wages, salaries). People who are working are called employees & who hire them for jobs are called employers. For example – Working in offices, factories, school, shops etc.
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4. Services :- It includes all economic activities whose output is not physical product or manufacturing. It is generally consumed at the time it is produced. It provides convenience, recreation, comfort for example – Health services, security services, consulting, airways, hospitality etc.

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