BUSINESS STUDIES

HOLIDAY HOMEWORK
CLASS XI

Q1. Which of the following is not a characteristic of business activity?

(i) Production of goods and services (ii) Presence of risk
(iii) Sale or exchange of goods and services (iv) Salary or wages

Q2. Which of the broad categories of industries covers oil refinery and sugar mills?
(i) Primary (ii) Secondary (iii) Tertiary (iv) None of them

Q3. Which of the following cannot be classified as an auxiliary to trade?

(i) Mining (ii) Insurance (iii) Warehousing (iv) Transport

Q4. The occupation in which people work for others and get remunerated in return is known as
(i) Business (ii) Employment (iii) Profession (iv) None of them

Q5. The industries which provide support services to other industries are known as
(i) Primary industries (ii) Secondary industries
(iii) Commercial industries (iv) Tertiary industries

Q6. Which of the following cannot be classified as an objective of business?

(i) Investment (ii) Productivity (iii) Innovation (iv) Profit earning

Q7. Which of the following is the correct difference between business and profession?
a) The reward for business is professional fee while that of profession is profit.
b) Transfer of interest is possible in profession but not in business.
c) Code of conduct is essential in profession, but not essential in business.
d) Larger capital is required in profession than in business.

Q8. Jawaharlal prepares ‘Ghujiya’ for customers during Holi season every year. He prepared more ‘Ghujiya’
than he could sell this year. He employed women and children also and paid them less salary manufacturing
on the packages. This way he generated profit for himself.
(a) Which objective of business is overlooked by him?
(b) Explain the other objectives of business.

Q9. Different situations in different business are being elaborated below:

(i) Raghunath Gorkha had a match stick factory in Nepal which got destructed by the recent earthquake.
(ii) Mr Arya, a senior manager in a telecom company shared confidential information about the company with a
competitor which led to huge losses for the company.
(iii) Vodafone Co. was charged with evasion of tax and asked to pay fine in cross which would lead to heavy
losses for the company.
(iv) Type writers becoming redundant.

(a) Which characteristic of business is being referred to in all the above cases?
(b) How can you classify the different cases based on this characteristic?

Q10. Baahubali has set up a mango juice factory in Shimla with a production capacity of 10,000 packs of
different sizes. He plans to market the fruit juice packs with the brand name- ‘Juice Delight’. The
fruits used in his factory are either grown in orchards in Shimla or taken from different parts of the
country like Kashmir, Nasik. The juice boxes are sent to all parts of the country for consumption. All
 the fruits purchased from different parts of the country are stored in a cold storage of his factory.
Also, the juice packets before being delivered to various parts of the country are kept in stock so that
they can be made available when required. Material and goods held in stock or transit are subject to
risk of loss or damage. So, protection is required against such risks. Explain all the auxiliaries of
trade mentioned in the above case.

Q11. “An activity can be economic activity in one situation and non-economic in another situation.”
Give an example to justify the given statement.

Q12. Aman and Sandeep completed their studies and planned to start their own business. Aman's father is
working in Portand Cement manufacturing company as a supervisor. He told them that the
company manufactures cement which requires raw materials like limestone, shells, chalks, slate etc.
He also told them that limestone is most often mined from a quarry owned by Adarsh Ltd. He also
told them that his company was facing a problem of storing the limestone because of shortage of
space and suggested them to start a warehousing business.
a) Identify the categories of industries which Portand Cement manufacturing company and Adarsh
Ltd. are engaged in.
b) Explain the further classification of industries identified in part (a).

Q13. “Sole proprietorship is a one man show but a single person cannot manage all the things.”
In the context of the above statement, explain the various limitations of sole proprietorship.

Q14. Explain the role of profit in the business organization.

Q15. Explain any two business activities which are auxiliaries to trade.

Q16. What is business risk? What is its nature?

Q17. Describe the activities relating to commerce.

Q18. Explain the various causes of business risks.