CBSE Class 11 Business Studies Business Trade and Commerce Worksheet Set 02

Very Short Answer Type Questions

Question . ABC Ltd. Inventing a new machinery to curb its production problem. Which objective it is trying to achieve?
Answer : Company is trying to achieve Innovation objective. Innovation can be defined as a distinctive manner of thinking that brings about more efficient solutions to modern issues

Question. What type of industry is fishing?
OR
What type of industry are poultry farms and plant nurseries?
OR
Which one of the broad categories of industries covers oil refinery and sugar mills?
Answer : 
Fishing-Primary Industry
Poultry Farm and Plant nurseries-Primary Industry
Oil Refinery and sugar mills- Secondary Industry

Question. A person sells his domestic furniture at a profit, will it be considered a business? Explain the characteristic of business which is being stressed upon.
OR
Mr Sonu sold his washing machine & refrigerator on Quikr as he was shifting base to London. Is this a business activity?
Answer : No, It is not considered as business. Business involves dealings in goods or services on a regular basis. One single transaction of sale or purchase, therefore, does not constitute business.

Question. Name the occupation in which people work for others and get remunerated in return.
a. Business
b. Profession
c. Employment
d. None of the above
Answer : Employment.
Employment refers to the condition of having paid work

Short /Long Answer type Questions :

Question. Identify the service which is related to the following cases: 
(a) The service which helps in removing hindrance of time.
(b) The service which helps in removing hindrance of risk.
(c) The service which helps in removing hindrance of knowledge.
(d) The service which helps in removing hindrance of place.
(e) The service which helps in removing hindrance of exchange of information among producers, consumers and traders.
Answer.  (a) Warehousing. (b) Insurance. (c) Advertising. (d) Transport. (e) Banking.

Question. Yash is a student of class xii commerce and he is good in studies. His father gifted him a pen on his birthday. The cost of pen is ` 80. After few days Sumit sold his pen to his friend Rounaq for ` 100. He was very happy to earn profit of ` 20. After completed his studies he has started a pen manufacturing company in the name of M/s Sumit Pvt. Ltd. Due to good image of his pen his sales increasing day by day and he is earning huge profits. Then he has decided to give scholarship to week girls child of his school.
(a) Can the transaction between Yash and Rounaq be termed as business transaction? Why?
(b) Can the transaction made by M/s Yash Pvt. Ltd. be termed as business transaction?
(c) Identify the one value involved here. 
Answer.  (a) No. Reason : Single transaction cannot constitute business.
(b) Yes. Reason : Regular transaction by M/s Yash Pvt. Ltd. to earn profits.
(c) Value Point : Promoting girls education.

Question. Deepak Wadhwa and Sons have been carrying on the business of diamond cutting since the last three generations in Bhuj, Gujarat. Since Bhuj is prone to earthquakes, the firm has decided to insure their business premises and inventory with Star Insurance Company.
Which kind of risks the company is trying to minimise?
Answer.  Natural causes.

Question. Identify the characteristics of business in the following statements: 
(a) Departmental stores purchasing goods from small manufacturers and selling under one roof.
(b) A car dealer buys and sells cars on regular basis.
(c) A furniture dealer buys office chairs at ₹ 500 each and sells them for ₹ 650 each. ₹ 150 per chair is the extra money earned to meet business expenses and for future growth.
(d) Workers at Maruti Udyog Ltd. went on strike for more than a month demanding raises in wages. The company suffered huge losses due to loss of production and sale.
Answer.  (a) Production or procurement of goods and services.
(b) Dealing in goods and services on a regular basis.
(c) Profit earning.
(d) Element of risk.

Question. Darshan Sharma prepares ‘Sohanpapri’ for customers during Diwali season every year. He prepared more ‘Sohanpapri’ due to increased demand with adulterated ingredients. He employeed women and children for packing and paid them less salary. This way he generated good profit from himself.
(a) Which objective of business is not fulfilled?
(b) Give any two values neglected by Darshan Sharma.
Answer.  Social objective.
Value Points:
(i) Child labour. (ii) Pure ingredients.

Question. Classify the following into primary, secondary and tertiary industries. 
(a) Banking. (b) Lumbering. (c) Oil refinery.
(d) Warehousing. (e) Mining. (f) Sugar industry.
Answer.  Primary industries : (b) and (e).
Secondary industries : (c) and (f).
Tertiary industries : (a) and (d).