ASSIGNMENT

GRADE: XI
SUBJECT: BUSINESS STUDIES
CHAPTER 1: BUSINESS, TRADE AND COMMERCE

CASE STUDY 1.1

Q.1. Ankita is the Manager in a MNC. She has been recently promoted as the India Head of the
company. For which, Ankita is required to shift to Pune in the new accomodation provided by the
company. As the new home is fully furnished, she sold her furniture of old home to in an auction
organised by him through an advertisement in the newspaper. To her surprise, she got a great
response from the auction and was able to sell the entire furniture.
(i) Will this auction be considered as a business?
(ii) State the feature of business which is being highlighted in the given example.
Q.2. Kavita is a chartered accountant working in a government firm and she gets ₹1,00,000 per month.
She is planning to start her own practising firm in the basement of her home, where she expects to
earn ₹2,50,000 per month. She took advice of a friend, Surbhi, who is leading importer and exporter
of ready-made garments, earning approx. ₹7,00,000 per month. In context of the given case:
(i) Indentify the type of economic activity that Surbhi is engaged in.
(ii) Will there be any change in type of economic activity of Kavita by shifting from government firm
to private practice?
(iii) What term is used for the reward, which Kavita and Surbhi are presently earning and which Kavita
expects to earn in her CA practice?

CASE STUDY 1.2

Q.1. Climax Ltd. decided to open up a new factory for readymade garments in the remote area of
Bihar. Company's aim is to generate employment opportunities for the unemployed youth and to
raise standard of living of people in the rural areas. Identify the objective of business which is
followed by the company.
Q.2. In the first year of operation, the revenues generated by Smart Enterprises from sale of its
products are just sufficient to cover the cost of production.
(i) Which organisational objective is met in the given case?
(ii) What are the two other organisational objectives, which the company is yet to achieve?
Q.3. Mercury Industries decided to donate 5% of its sales to 'Girl Child Upliftment Organisation for
improving the condition of girl child in India. This initiative by the company was highly appreciated by
the public and their sales increased by 20%, Identify the objective depicted in the given case.
CASE STUDY 1.3
Q.1. Three friends Amar, Akbar and Anthony completed their studies and planned to join their
father's business. Amar got engaged in his sugarcane farm, Akbar joined his father's sugar mill and
Anthony joined the transport business of his father. Identify the different types of industries being
discussed in the given case.
Q. 2. Tushar runs a well known fashion store (dealing in women wear) in Mumbai. He procures
garments from different fashion designers and sells them to dealers all over the country. He also owns
a godown to hold the surplus stock. Due to sudden increase in demand and to maintain stock for peak
period, Tushar took a loan of 10,00,000 from Kotak Bank. He has also taken an insurance policy worth
2 crores for his business.
Identify the'Auxiliaries of Trade' being used by Tushar in his business by quoting lines from the given
case.
Q.3. Identify the type of industry highlighted in each of the following individual cases:
(i) Raman is engaged in the industry of obtaining coal from a mine.
(ii) Sachita imports different components from China and assemble them to make Computer.
(iii) Sandhya has a cement factory.
(iv) Akhil is engaged in the construction of flyovers.
(v) Namit joined his father's business of poultry farming.

CASE STUDY 1.4

Q. 1. Chavi was a successful businesswoman and owned a departmental store. She was aware of the
fact that profit is the reward of risk bearing. So, in order to earn more profits, she opened two more
departmental stores and employed a team of young staff to look after the stores. Initially, the staff
was very sincere and Chavi earned huge profits from her 3 departmental stores. However, over the
last two years, her business is running into losses. On close analysis, she found that her staff was not
giving much attention to the customers. Moreover, there were many cases of embezzlement
(misappropriation of funds) by the employees.
Identify and explain the main cause behind the losses in the Chavi's Business.
Q. 2. The following cases highlight the various situations in which entrepreneurs suffered huge losses.
Identify the cause of business risk indicated in the given cases:

(i) Alok's factory was completely destroyed due to floods.

(ii) Tarang was a leading manufacturer of basic keypad mobiles. However, demand for such mobiles
drastically decreased after the origin of smart phones.
(iii) Craft Ltd. is known for its technically advanced gadgets. The company is planning to launch a latest
model of speakers, which is not yet released in India. However, before the company could bring out
its model, the same type of speaker was launched by one of its competitor. On scrutiny, it was
discovered that one of the employees shared the technical aspects of the speaker
with the competitor.

OBJECTIVE QUESTIONS
FILL IN THE BLANKS
1. Supply of quality products at fairer prices is an example of _________ .
2. Documents such as _______ and Chitti were used under the Indigenous Banking System to carry
out transactions in which money passed from hand-to-hand.
3. During the Roman Empire, ________ was particularly valued and was known as Black Gold.
4. If an activity is performed without the aim of earning money, then it is a _______ activity.
5. People engaged in business on income in the form of____________.
6. The basic motive of ___________ is to render services besides earning income.
7. ______________ industry includes all those activities, which are connected with extraction and
production of natural resources and reproduction and development of living organisms, plants,
etc.
8. The maritime routes linked the east and the west by sea and were used for the trade of spices
and known as ______________.
9. ________________ and _________________ trade is concerned with the buying and selling of
goods and services within the geographical boundaries of a country.
10. Banks and financial institutions overcome the hindrance of _________.
11. Advertising helps in hindrance of _____________.
12. _____________ overcomes the hindrance of place.
13. _____________ industry includes all those activities, which are connected with using the
materials, which have already been extracted at the primary stage.
14. Attending a religious ceremony is a/an _____________ (Economic/Non-Economic) activity.
15. Star Ltd. is taking steps to control air pollution in its nearby areas. The firm is trying to achieve
___________ objective of the business.
16. _____________ (Pure/Speculative) only involves the possibility of loss or no loss.
17. _____________ industry provides support services to primary and secondary industries as well
as activities relating to trade.
18. ___________ requires qualification and training as prescribed by the employer.
19. ___________ activities are undertaken to earn a living.
20. ___________ requires special knowledge and skills in the occupation to earn fees.
21. Occupation in which people work for others and get salary or wages is termed as
_____________.
22. ______________ are the activities undertaken to satisfy social and psychological needs.
23. _____________ includes activities which are connected with production, purchase and sale of
goods with the aim of earning profit.

TRUE OF FALSE
1. Profession does not require any minimum qualification.
2. The prime objective of a economic activity is to earn money.
3. A single transaction of sale or purchase also constitutes business.
4. A mother teaching her son is a non-economic activity.
 5. Business means a state of being busy and non-economic activities.
6. The reward for employment is in the form of profit.
7. Business involves dealing in goods and services on a regular and recurring basis.
8. Trade removes this hindrance of person by creating a link between producers and consumers.
9. It is possible to transfer the interest in case of employment.
10. Sale of old mobile does not constitute business.
11. Profit is the reward for risk-taking.
12. Commerce and industry are interchangeable terms.
13. Conversion of sugar cane into sugar is an example of analytical industry.
14. All business risks are insurable.
15. A worker constructing his own house is an economic activity.

MATCHING TYPE QUESTIONS

Q.1. Match the statements given under A with the correct options given under B.

(A) (B)
(i) Synthetical Industry a. Industry engaged in analysing and separating basic raw materials into
different finished products.
b. Industry engaged in combining two or more raw materials together in
the manufacturing process to make the final product.

Q.2. Match the statements given under A with the correct options given under B.

(A) (B)
(i) Economic Activity a. It is performed with the aim of earning money.
(ii) Non-economic Activity b. It is performed to get mental satisfaction.

Q.3. Match the statements given under A with the correct options given under B.

(A) (B)
(i) Genetic Industries a. Industried engaged in raising products from natural sources.
(ii) Extractive Industries b. Industries engaged in breeding plants and animals for their use in
further reproduction.

Q.4. Match the statements given under A with the correct options given under B.

(A) (B)
(i) Processing Industry a. Industry engaged in analysing and separating basic raw materials into
different finished products.
(ii) Analytical Industry b. Industry engaged in combining two or more raw materials together in
the manufacturing process to make the final product.
c. Industry in which a product passes through various stages to become a
final product.
Q.5. Match the statements given under A with the correct options given under B.
(A) (B)
(i) Advertising a. Hindrances of Persons
(ii) Warehousing b. Hindrance of Place
(iii) Trade c. Hindrance of Time
(iv) Transport d. Hindrance of Information

MULTIPLE CHOICE QUESTIONS (MCQs) AND MULTIPLE RESPONSE QUESTIONS

(MRQs)
In the following Questions, there may be one or more than one correct answer. You have to
mark all the correct answers.
1. Which of the following does not characterise business activity?
(a) Production of goods and services (c) Sale or exchange of goods and services
(b) Presence of risk (d) Salary or wages
2. Which of the broad categories of industries covers oil refinery and sugar mills?
(a) Primary (c) Tertiary
(b) Secondary (d) None of them
3. Which of the following cannot be classified as an auxiliary to trade?
(a) Mining (c) Warehousing
(b) Insurance (d) Farming
4. The occupation in which people work for others and get remunerated in return is known as:
(a) Business (c) Profession
(b) Employment (d) None of them
5. The industries which provide support services to other industries are known as:
(a) Primary industries (c) Commercial industries
(b) Secondary industries (d) Tertiary industries
6. Which of the following cannot be classified as an objective of business?
(a) Investment (c) Savings
(b) Growth (d) Profit earning
7. Business risk is not likely to arise due to:
(a) Changes in government policy (c) Employee dishonesty
(b) Good management (d) Profit earning
8. __________ removes the hindrance of risk.
(a) Trade (c) Insurance
(b) Transportation (d) Advertising
9. Machinery imported from China was further sold to Nepal. It is:
(a) Entrepot (c) Export
(b) Import (d) None of these
10. Automobile and computer industry are the example of:
(a) Processing Industry (c) Synthetic Industry
(b) Assembling Industry (d) None of these
11. Star Ltd. opened a new Branch in Kochi. Which of the following organisational objective is being
fulfilled?
(a) Profit (c) Survival
(b) Growth (d) None of these
12. 'Strikes come under which type of risk:
(a) Natural causes (c) Economic causes
(b) Human causes (d) None of these
13. The economic activity in which there is no need of capital is:
(a) Business (c) Employment
(b) Profession (d) Both (a) and (c)
14. Akshat enjoys teaching orphans in his free time. It is an example of:
(a) Economic Activity (c) Both (a) and (b)
(b) Non-economic Activity (d) None of these
15. Commerce includes
(a) Business and Trade (c) Trade and Aids to trade
(b) Business and industry (d) None of these
16. Warehousing facilitates the availability of goods as and when required. By doing this, which of the
following utilities are provided by warehousing?
(a) Place Utility (c) Both (a) and (b)
(b) Time Utility (d) Neither (a) nor (b)
17. Shivam's factory was destroyed due to earthquake. Identify the cause of business risk:
(a) Economic Causes (c) Natural Causes
(b) Human Causes (d) Other Causes

ASSERTION REASON QUESTIONS (ARQs)

1. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given
below:
Assertion (A): Business is a non-economic activity.
Reason (R): Business is undertaken with the aim of earning money.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion
(A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
2. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given
below:
Assertion (A): Auxiliaries to Trade are generally referred as services.
Reason (R): Auxiliaries to Trade facilitate activities relating to industry and trade. Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion
(A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
3. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given
below:
Assertion (A): Every profession restricts the entry on the basis of examination or education.
Reason (R): A strict code of conduct exists in every profession.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion
(A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
4. Read the following statements: Assertion and Reason. Choose one of the correct alternatives given
below:
Assertion (A): Warehousing facilitates the availability of goods as and when required.
Reason (R): Warehousing removes this hindrance of place by providing facility of storage of goods.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion
(A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.