Which one of the following is NOT an Auxiliary to trade?
Auxiliary to trade helps in smooth flow of trade. Insurance, warehouses and transport helps in smooth flow of trade but mining does not helps in smooth flow of trade.
Name the activity of commerce that removes the hindrance of time.
Warehousing activities remove hindrance of time by facilitating holding of stocks of goods to be sold when required.
Which of the following is not a characteristic of a business activity?
Business activity is an activity which is an engaged in primary purpose of making a profit, salary and wages are expenses to a business. Hence it is not a primary business activity.
Which one of the following is NOT the objective of the business?
Investment is a monetary asset purchased with the motive of earning profit in future.
The business objectives helps guide processes and overarching guidelines for the business for productivity, innovation, profit planning etc.
What reward does an entrepreneur get for risk bearing in business?
Profit is an exclusive reward for the entrepreneur, for making business decisions under unpredictable and uncertain economic conditions. In short, Knight theory implies that uninsurable risks are uncertainty of a business and profit is the reward for uncertainty bearing.
Which one of the following is an economic activity in which specialized knowledge is required?
Profession requires specialized knowledge as an economic activity. Examples can be teacher, doctor, advocate and many more.
Why should a business earn profit?
Profit is a requirement for business because it helps in the development of the company positions in the market. Given that most firms and entrepreneurs invest in order to make a return, the profit earned by a business can be used to measure the success of that investment.
Which one of the following economic activity is directed towards producing or acquiring wealth through buying and selling of goods?
Profession is concerned with rendering services Employment is concerned with working for others and getting rewarded with salary or wages. Management is concerned with achieving the described goals.
Bad debts due to non-payment of debt by debtor are an example of which type of business risk?
Debtors are humans and when they convert into bad debts i.e they are not in position to pay back to the business entrepeneurs, it causes loss to the firm.
The latest generation of mobile phones has many features like faster internet browsing, Bluetooth etc. This is an example of which objective of business?
Innovative business can gain much profit easily . And new generation likes to purchase new and latest technology product. So innovation is usually considered the objective of a business that wants to earn profit.