class-12 (introduction to management) chapter-1

 

BUSINESS NOTES

 

 

Business studies chapter-1 for class 11

          Business studies (class-11)   chapter-1

Topics included:

• Human Activities
• Features / Characteristic of business
• Objective of business
• Importance of profit in business
• Business activities 

                                        

          

                                          HUMAN ACTIVITIES

  1.ECONOMIC ACTIVITIES                         2. NON- ECONOMIC                                                                                                   ACTIVITIES

                             

Serial No.	Point of basis	BUSINESS	PROFESSION	EMPLOYMENT
1.	Meaning	Relates economic activities and involves sales distribution of goods and services, purchase etc.	Relates to activity which requires special qualifications and skills to do.	When a person work for some another person  and is remunerated(gets salary) in return
2.	Objective	Main objective is to earn profit	Main objective is to provide services	Main objectives is to earn  income by satisfying the employer
3.	In return	Gets profit	Gets  fees	No risk
4.	Level of risk	High risk	Little risk	No risk
5.	Commencement (starting business)	Can be started anytime when decision is taken.	Can be started only when a person have legal degree or qualification.	Can be started when Agreement is signed by a person.
6.	Investment	High investment	Little investment	No investment
7.	Continuity	Can carry on after the death of owner	Cannot carry on after the death of professional person.	Cannot carry on if not mentioned in agreement.

 

                       

Point  of  basis	ECONOMIC ACTIVITIES	NON- ECONOMIC ACTIVITIES
meaning	When a person work to earn money is economic activity.	When a person work to provide psychological satisfaction.
Types	Three types- business, profession, employment.	No types
example	Ex. Producer sales its product, doctor takes fees for the treatment etc.	Ex.  Going to temples ,helping our elders etc.

                          
                               
                     
                                


(Features of business)

·       AN ECONOMIC ACTIVITY:

 According to this feature business is an economic activity    because its main motive is to earn profit.

·       ARRANGEMENT OF GOOD AND SERVICES: Generally most of the firms produces or arranges goods and services (as raw material) to convert them into finished goods.

·       EXCHANGE OF GOODS AND SERVICES:  According to this characteristic of business when goods and services are exchanged in return of money then only that event will be known as business.

·       EXCHANGE OF GOODS AND SERVICES ON REGULAR BASIS:

This feature unfolds that when goods and are exchanged on regular basis then that event will be considered as business.

·        PROFIT EARNING:

 This feature is one of the most important features which state that the main motive of business is to earn profit not to provide mental satisfaction.

·       UNCERTAIN RISK:

As we all know that our future is uncertain that’s why there are always some chances for the occurrence of risk. Risk from the business cannot be eliminated but its level can be reduced.

       


  

OBJECTIVES OF BUSINESS

ü ECONOMIC OBJECTIVE:    According to this objective business should earn profit in order to overcome its cost of production for survival and to grow in the competitive market.

ü SOCIAL OBJECTIVE:  This objective deals with the welfare of the society. A business must fulfill some of the under listed  social work:

a)    Avoid pollution

b)    Provide employment

c)     Avoid unfair trade practices

d)    Provide good quality products at reasonable price

ü  INDIVIDUAL OBJECTIVE: This feature deals with the employees of the organisation. It must fulfill some important responsibilities towards employees and workers. Like :

a)  Providing competitive salary

b) Safe working conditions

c)  Benefits after retirement

d) Personal development

                  

                                                                                                                                   

                     // IMPORTANCE OF BUSINESS AND BUSINESS                                          ACTIVITIES WILL BE INCLUDED IN 2^ND PART

browse this link to reach to 2nd part-https://businessgyanm.blogspot.com/2020/10/business-studies-chapter-1-for-class-11.html