UP Board Solutions Class 10 Commerce Chapter 25 Organisation and Enterprise

UP Board Solutions For Class 10 Commerce Chapter 25 Organisation And Enterprise

Organisation And Enterprise Objective Type Questions (1 Mark)

Question 1. The term enterprise means:
(a) Risk-taking
(b) Profit Making
(c) A borrowed loan from market
(d) None of these
Answer: (a) Risk-taking
In simple words: Enterprise, in a business context, fundamentally refers to the willingness to undertake risks and innovate in pursuit of new business opportunities.

🎯 Exam Tip: Focus on understanding the core definitions of business terms as they often appear in objective questions.

Question 2. Modern business has become very - - - - - - - -
(a) easy affair
(b) doubtful affair
(c) complicated affair
(d) None of these
Answer: (c) complicated affair
In simple words: Due to globalization, technological advancements, and increased competition, modern business environments are intricate and challenging.

🎯 Exam Tip: Relate the characteristics of modern business to real-world complexities to answer such conceptual questions.

Question 3. The functions of organisation and enterprise are - - - - - - - - -
(a) different
(b) similar
(c) dependable each other
(d) None of these
Answer: (a) different
In simple words: Organisation focuses on structuring and managing resources, while enterprise deals with risk-taking and innovation, making their primary functions distinct.

🎯 Exam Tip: Differentiate between key concepts like 'organisation' and 'enterprise' by listing their unique functions for clarity.

Question 4. The entrepreneures are the owners of business and the organisers are the - - - - - - - - of the business.
(a) Customers
(b) Debtors
(c) Creditors
(d) Employers
Answer: (d) Employers
In simple words: Entrepreneurs own the business and bear the primary risks, while organizers are typically the employees who manage and coordinate its operations.

🎯 Exam Tip: Understand the roles and relationships between different stakeholders in a business structure, especially owners and managers.

Question 5. The organisers get salary for the service they render to the business, the entrepreneures get - - - - - - - - - - - for taking risks.
(a) Salary
(b) Rent
(c) Wages
(d) Profit
Answer: (d) Profit
In simple words: Organizers are compensated with a fixed salary for their management efforts, whereas entrepreneurs earn profit as a reward for assuming business risks.

🎯 Exam Tip: Remember the basic economic principle that profit is the reward for risk-taking by entrepreneurs.

Question 6. Which of the following items is not the Capital from Economics point of view?
Answer: (c) Jewellery
In simple words: From an economic perspective, capital refers to goods used for future production, and while fixed deposits, investments in shares, and government securities serve this purpose, personal jewellery is generally considered a consumer good, not productive capital.

🎯 Exam Tip: Differentiate between personal assets and productive capital based on their primary economic function for exam questions.

Organisation And Enterprise Definite Answer Type Questions (1 Mark)

Question 1. Is there no need for any research for the successful organisation? Give answer in Yes or No.
Answer: No.
In simple words: Research is crucial for successful organization to identify opportunities, mitigate risks, and adapt to changing market conditions effectively.

🎯 Exam Tip: Always consider the importance of information and research in any business or organizational activity.

Question 2. In enterprise an attempt to undertaking risk and bear uncertainty? Give answer in Yes or No.
Answer: Yes.
In simple words: Enterprise inherently involves taking calculated risks and dealing with uncertainties to achieve potential rewards or profits.

🎯 Exam Tip: Recognize that risk-taking and uncertainty are fundamental characteristics of any entrepreneurial endeavor.

Organisation And Enterprise Very Short Answer Type Questions (2 Marks)

Question 1. What is the organisation?
Answer: The organisation is an important factor of production and enterprise is different from an organisation. Some economists still think that organisation and enterprise are the same and can be used interchanging. In common language, the organisation means a systematic arrangement of different parts of a thing to achieve the desired result. In economics also we use the term organisation in the same sense.
In simple words: Organisation refers to the systematic arrangement and coordination of various elements or resources to achieve a specific goal efficiently. It is a key factor in production, distinct from the entrepreneurial function of risk-taking.

🎯 Exam Tip: Define 'organisation' clearly by emphasizing its role in systematic arrangement and goal achievement in an economic context.

Question 2. Point out any two points of difference between organiser and entrepreneur.
Answer: The functions of organisation and enterprise are different. The joint-stock company is the most typical business unit in which the organisation is undertaken by a paid manager and enterprise by shareholders. The functions of organisation and risk-bearing are theoretically separate. Organisers supervise and administer business while entrepreneurs take a risk. The entrepreneurs are the owners of the business and the organisers are the employees of the business.
The organisers get a salary for the services they render to the business, the entrepreneurs get profits for taking risks and get nothing if the business does not make any profit. The entrepreneurs bear losses when the business runs into a loss.
In simple words: Organizers are employees who manage operations and receive a salary, while entrepreneurs are owners who take risks and earn profits or bear losses. Organizers administer, whereas entrepreneurs innovate and bear the ultimate responsibility.

🎯 Exam Tip: When differentiating, focus on key aspects like role (owner vs. employee), compensation (profit vs. salary), and primary function (risk-taking vs. administration).

Organisation And Enterprise Short Answer Type Questions (4 Marks)

Question 1. Discuss any four functions of the organiser.
Answer: Functions of the organiser are as follows:
(a) Sale of the Product: He tries to achieve the speedy sale at a maximum price.
(b) Provision of Proper Tools to Labourer: He provides necessary tools and machinery to labourers and does not let machinery stand idle.
(c) To find out an entrepreneur: After completing the investigations regarding the most profitable channel of investing productive resource, the organiser finds out an entrepreneur who is ready to undertake risk in the proposed business.
(d) The localisation of Production: The organiser locates the production unit itself. In doing so he keeps in his mind several consideration such as nearness to the raw material and the power resources, availability of trained labour, transport facilities, providing to the market etc.
In simple words: The organizer's key functions include ensuring efficient product sales, providing necessary tools and resources to laborers, identifying potential entrepreneurs for investment, and strategically locating production units based on factors like raw materials and market access.

🎯 Exam Tip: When listing functions, provide clear and concise explanations for each point, demonstrating a comprehensive understanding of the organizer's role.

Question 2. Define the importance of organisation.
Answer: Modern business has become a very complicated affair. It is affected by many factors. Even a small factor may change the entire form of business. Big business firms use complicated machinery which needs constant care. Labourers of varying degree of skill and ability are engaged by them. Thus a business house of today is difficult to run without the expert guidance of an organiser. He brings together the three factors of production land, labour and capital and organises them so efficiently that they give the best results. Without an organiser, these factors can reap no fruit. Without him, capital will go waste. Labour will be misdirected. Without an organiser, production is not possible in this world.
In simple words: Organisation is vital in modern business as it provides the expert guidance needed to manage complex operations, integrate factors of production (land, labor, capital), and ensure their efficient utilization. Without it, resources would be wasted, efforts misdirected, and production impossible.

🎯 Exam Tip: Highlight the role of organisation in managing complexity, optimizing resources, and ensuring the smooth functioning and productivity of a business.