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This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinations
Q Which of the following does not characterise business activity?
- a)Sale or exchange of
- b)Production of goods
- c)Presence of risk and services
- d)Salary or wages goods and services
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 1...
Salary or wages are paid as remuneration to workers who work for others and is not a characteristic of business.
This question is part of UPSC exam. View all Commerce courses
Most Upvoted Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 1...
yaa from the word salary we are getting to know that it is paid which is involved in employment
Community Answer
This a MCQ (Multiple Choice Question) based practice test of Chapter 1...
Nature and Significance of Business
Introduction:
Business is an economic activity that involves the exchange of goods and services for the purpose of earning profit. It plays a crucial role in the development of an economy as it generates employment opportunities, contributes to the GDP, and fosters economic growth.
Characteristics of Business Activity:
1. Sale or Exchange of Goods and Services:
- Business involves the sale or exchange of goods and services to satisfy the needs and wants of customers.
- The primary objective is to earn profit by providing products or services that have value in the market.
2. Production of Goods and Services:
- Business activities include the production of goods and services.
- Goods are tangible products that can be seen and touched, such as cars, clothes, and electronics.
- Services are intangible activities that are provided to customers, such as banking, healthcare, and transportation.
3. Presence of Risk and Uncertainty:
- Business activities are associated with risks and uncertainties.
- These risks may arise due to changes in market demand, competition, government regulations, natural disasters, etc.
- Business owners need to take calculated risks and make decisions accordingly.
4. Profit Orientation:
- Business aims to earn profit as a reward for the risks undertaken and efforts made.
- Profit is the excess of revenue over expenses and is essential for the survival and growth of a business.
5. Continuity:
- Business activities are carried out with the intention of long-term operations.
- Businesses strive to establish themselves in the market and maintain continuity in their operations.
Explanation of the Correct Answer:
Option 'D' states that salary or wages do not characterize business activity. This is because salary or wages are payments made to employees for their work or services rendered, which are not directly related to the core business activity. While salary or wages are essential for the smooth functioning of a business, they do not define the nature of business itself. Business activities primarily revolve around the production, sale, and exchange of goods and services, as well as the presence of risk and profit orientation.
In summary, business activities involve the sale or exchange of goods and services, the production of goods and services, the presence of risk and uncertainty, profit orientation, and continuity. Salary or wages, although important for the functioning of a business, do not characterize the nature of business activity.
Introduction:
Business is an economic activity that involves the exchange of goods and services for the purpose of earning profit. It plays a crucial role in the development of an economy as it generates employment opportunities, contributes to the GDP, and fosters economic growth.
Characteristics of Business Activity:
1. Sale or Exchange of Goods and Services:
- Business involves the sale or exchange of goods and services to satisfy the needs and wants of customers.
- The primary objective is to earn profit by providing products or services that have value in the market.
2. Production of Goods and Services:
- Business activities include the production of goods and services.
- Goods are tangible products that can be seen and touched, such as cars, clothes, and electronics.
- Services are intangible activities that are provided to customers, such as banking, healthcare, and transportation.
3. Presence of Risk and Uncertainty:
- Business activities are associated with risks and uncertainties.
- These risks may arise due to changes in market demand, competition, government regulations, natural disasters, etc.
- Business owners need to take calculated risks and make decisions accordingly.
4. Profit Orientation:
- Business aims to earn profit as a reward for the risks undertaken and efforts made.
- Profit is the excess of revenue over expenses and is essential for the survival and growth of a business.
5. Continuity:
- Business activities are carried out with the intention of long-term operations.
- Businesses strive to establish themselves in the market and maintain continuity in their operations.
Explanation of the Correct Answer:
Option 'D' states that salary or wages do not characterize business activity. This is because salary or wages are payments made to employees for their work or services rendered, which are not directly related to the core business activity. While salary or wages are essential for the smooth functioning of a business, they do not define the nature of business itself. Business activities primarily revolve around the production, sale, and exchange of goods and services, as well as the presence of risk and profit orientation.
In summary, business activities involve the sale or exchange of goods and services, the production of goods and services, the presence of risk and uncertainty, profit orientation, and continuity. Salary or wages, although important for the functioning of a business, do not characterize the nature of business activity.
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This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer?
Question Description
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer?.
This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for This a MCQ (Multiple Choice Question) based practice test of Chapter 1 - Nature and Significance of Business of Business Studies of Class XI (11) for the quick revision/preparation of School Board examinationsQ Which of the following does not characterise business activity?a)Sale or exchange ofb)Production of goodsc)Presence of risk and servicesd)Salary or wages goods and servicesCorrect answer is option 'D'. Can you explain this answer?.
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