IMPORTANT SHORT QUESTIONS AND THEIR
ANSWERS IN BUSINESS STUDIES (Class XI)
1. What do you mean by Business?
The term business is derived from the word ‘busy’. The business is a
stage of being busy. It refers to those economic activities which are
connected with the production or purchase and sale of goods or supply of
services with the main objective of earning profit. People engaged in
business to earn income in the form of profit.
2. What do you mean by economic activities?
Economic activities are those activities undertaken by people with
the object of earning money for livelihood.
Eg: production of goods in factory, sale of goods by a shopkeeper.
3. What is Commerce?
Commerce is the sum total of all those activities which are concerned
with the transfer of goods and services from the producers to the consumers.
Commerce includes two types they are trade and auxiliaries to trade.
4. What do you mean by Joint Hindu Family Business?
Joint Hindu Family Business refers to a business which is owned by
the members of Joint Hindu Family. It is also known as Hindu undivided
family business. It is one of the oldest forms of business organisation found
only in India.
5. Define ‘Partnership’.
The Indian Partnership Act, 1932 defines partnership as “the relation
between persons who have agreed to share the profit of the business carried
on by all or any one of them acting for all”.
ANSWERS IN BUSINESS STUDIES (Class XI)
1. What do you mean by Business?
The term business is derived from the word ‘busy’. The business is a
stage of being busy. It refers to those economic activities which are
connected with the production or purchase and sale of goods or supply of
services with the main objective of earning profit. People engaged in
business to earn income in the form of profit.
2. What do you mean by economic activities?
Economic activities are those activities undertaken by people with
the object of earning money for livelihood.
Eg: production of goods in factory, sale of goods by a shopkeeper.
3. What is Commerce?
Commerce is the sum total of all those activities which are concerned
with the transfer of goods and services from the producers to the consumers.
Commerce includes two types they are trade and auxiliaries to trade.
4. What do you mean by Joint Hindu Family Business?
Joint Hindu Family Business refers to a business which is owned by
the members of Joint Hindu Family. It is also known as Hindu undivided
family business. It is one of the oldest forms of business organisation found
only in India.
5. Define ‘Partnership’.
The Indian Partnership Act, 1932 defines partnership as “the relation
between persons who have agreed to share the profit of the business carried
on by all or any one of them acting for all”.
