It assists in removal of the hindrance cause due to finance. 5. Transport and communication Banking and finance Insurance Warehousing Advertising Objectives of Business Chapter 1 class 11 Business Studies Notes explain business activities to be falling under the categories of primary, secondary and tertiary. Business is established for the purpose of earning profit. Auxiliaries to Trade: All those activities which help in removing various hindrances which arise in connection with the production and distribution of goods are called auxiliaries to trade. These activities are - Transportation Warehousing Communication Advertising Insurance Packaging Banking #SPJ6 (i) Transport and Communication: Production of goods . Manufacturing: These industries convert raw materials or semi-finished products into finished products e.g., paper from bamboo, sugar from sugar cane. These people act as mediators between the producer and consumers. The auxiliaries to trade class 11 topic provide a basic idea of the trade units in the business sector. Explain any two business activities which are auxiliaries to trade. Entreport: Importing goods and services from one country and exporting to some third country. All these activities are regulated and managed by one of the auxiliaries used to trade the products. are certain contributions which a business can make and help in the development of community. For Example social work, religious activities etc. Download CBSE class 11th revision notes for Chapter 1 Nature and Purpose of Business class 11 Notes Business Studies in PDF format for free. 8. Nature of business means the type of business done by an individual. 2. Sale or exchange of goods & services There should be sale or exchange of goods and service between the seller & the buyer. ", Unacademy is Indias largest online learning platform. Meaning: Commerce refers to all those activities which are concerned with the transfer of goods and services from the producers to the consumers. This article offers economic study materials and notes. Communication is another important auxiliary component of trade, as communication is instrumental in the exchange of information between parties to a trade, which includes producers, traders and consumers. 2. Hence, extensive storage space is required to keep the products safely. Extractive industries: These industries provide some basic raw materials that are mostly products of the natural environment. This decision depends upon the size, scale and type of business activities he wants to carry on. Drawer bears the costs if goods get lost in transit. What are various aids to trade? Chapter 1 Class 11 Business Studies are divided into two parts. They were used:- -As remittance instruments (to transfer funds from one place to another), -As credit instruments (to borrow money), -For trade transactions (as bills of exchange). Production or procurement of goods and services. Insurance: The risk of loss or damage to the factory building, machinery, furniture, goods held in stock or goods in course of transport due to theft, fire, accidents, etc. This categorisation presents each auxiliary briefly and provides a detailed description of its requirements. He serves as a connecting link between the producer and retailer. This objective can be achieved by reducing wastages and making efficient use of machines and equipments, human resources, money etc. (a) Changes in government policy. The buying and selling of goods and services with an aim to earn profit is termed as trade. People involved in a business will spend money for buying raw materials and to produce finished products. We indulge in multifarious activities in our daily lives. 2. As a result, a business either manufactures the goods on its own or purchases them from producers, and then sells them to end customers. They provide market support and enhance the performance of an organisation. So it becomes obligatory on the part of the businessman to do something for the society. An auxiliary to trade is a crucial element to enter the product in the market and expand a companys business. Every business enterprise must aim at greater productivity to ensure continuous survival and growth. The various types of intermediaries in business as explained in Class 11th Business Studies Chapter 1 Notes are (1) brokers and agents, (2) distributors, (3) retailers, (4) wholesalers and resellers. it involves: It refers to the purchase of goods and services from other countries. It includes organised activities and efforts of groups or individuals in selling definite services and goods with a profit objective. Not only for survival but it is also required for growth and expansion of business. (4) For Building prestige and Recognition: For gaining prestige in the Society, Business had to satisfy all the parties concerned. Buying and selling between the states. (iii) Employee Welfare: Employees are a valuable asset and they make significant contributions towards the success of business. Sale or exchange of goods and services for creating value. Auxiliaries are an integral part of commerce in particular and business activity in general. Transport. Advertising: Advertising is a very essential auxiliary to trade as it helps in the promotion of the goods and services. 1. Class 11 Business Studies notes on Chapter 1 Nature and Purpose of Business class 11 Notes Business Studies are also available for download in CBSE Guide website. The main aim of doing a business is to earn profit. Hence, this is a crucial task that involves the market value and potential of the company. These are (1) Economic objectives and (2) Social Objectives. 1. For example: demand for a particular product may decline due to change in tastes preferences of consumers, or increase in competition etc. For example, the cement industry. Characteristics of business are :- Economic activity. In fact, these activities support not only trade, but also industry and hence, the entire business activity. For example selling your old books, or furniture and purchasing a new one is not termed as business. All objective may be classified into two broad categories. Hence before understanding what business is, Lets understand the types of activities: : Economic activities are any activities that are carried out with the goal of earning money and livelihood. All those causes which cannot be considered under the above causes are the other causes, such as exchange rate fluctuations etc. Auxiliaries to trade | Nature and purpose of business | class 11 | business studies | video 3Nature and Purpose of Business - Class 11 - Business studies Nat. Tax planning: Because of increasing tax laws in the country every business has to do proper tax planning in advance to save itself from any problem in future. Physical facilities: include machinery equipment building etc. Rules set by the employer are to be followed. It assists in removal of the hindrance cause due to place. Students can study the Class 11 Business Studies Chapter 1 from the NCERT book. Hundi: It is an instrument of exchange used in old times which involved a contract that warrants the payment of money, a promise or order which is unconditional, and can be exchanged through transfer by valid negotiation. Notes of Business Studies Class 11 Chapter 1 mentions different types of industries as various sectors of activities within Indian economy. These causes include unexpected events caused by man, such as negligence of employees, power failure, employees or customers dishonest practices etc. Economic causes: The economic causes involve the changes and variations taking place in the economy such as uncertainties due change of technology and method of production,political disturbances, change in prices, tax rates etc. To get started, download the app now! Activities which are meant for assisting trade are known as auxiliaries to trade. Business, trade and commerce Business An occupation in which people regularly engaged in activities relating to purchase / production and sale of goods and services with a view to earning profits. Genetic industries: These industries do breeding of plants and animals for their use in further reproduction. Warehousing: Warehousing helps to store the goods safely. 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A business cannot survive without making profits. It can be a partnership firm, a sole proprietorship firm, a company etc. Selecting the line of business: The first thing to be decided by the entrepreneur is the line and type of business to be undertaken. All business activities are associated with risks, and transportation of goods is one of the significant risk-prone activities. Its various aspects have been discussed in Chapter 1 Class 11 Business Studies Notes by Vedantu. No risk, no gain is applicable to every business. Hence, these auxiliaries define the growth rate and potential of an organisation. All the concepts of Chapter 1 of Class 11 Business Studies are explained in brief in, The most important objective of a business is to establish a position in the market. (iii) Insurance: It provides a cover against the loss of goods, in the process of transit, storage, theft, fire and other natural calamities. Choice of form of Business organization: The next decision must be taken is to finalize the form of business i.e., to set up sole proprietorship., partnership or joint stock company. Question Bank Solutions 10345. You can go through the questions and solutions below which will help you to get better marks in your examinations. (c) Employee dishonesty. Storage and warehousing activities remove the hindrance of time by facilitating holding of stock of goods to be sold as and when required. (iv) Community service: Business should contribute something to the society where it is established and operated Library, dispensary, educational institutions etc. Today studying economics means understanding several different ways in which the world functions. It is classified into two categories: 1. Location of business enterprise: It's another important factor while starting a business. Business Trade and Commerce Class 11 Business Studies MCQs Questions with Answers. Activities which are meant for assisting trade are known as auxiliaries to trade. Hence before understanding what business is, Lets understand the types of activities:Classification of Activities. That is intra-state trade. Tax planning: The entrepreneur must try to analyze the types of taxes because there are a number of tax laws in the country which affect the functioning of business. 4.Profit is the reward for risk taking: A business gets profit as return for undertaking risk. The auxilliaries to trade help to remove the various bottlenecks such as place , time, person, risk and exchange. These important auxiliaries ensure a smooth flow of goods from producers to the consumers. Concept of Business: Business refers to those economic activities involving the purchase production and / or sale of goods and services with a motive of earning profit by satisfying human needs in society. (ii) The different auxiliaries to trade that are being used by Mr. Liyaquat in his business are : (a) Transport "He procures . 3. It assists in curbing hindrances of persons. Element of risk: All business activities carry some elements of risk because future is uncertain and business has no control over several factors like, strikes, fire, theft, and change in consumer taste etc. Banks provide the facility of credit for easy availability of funds for the business. For example, a worker working in a factory , a teacher teaching in school. What are the various important factors which have to be considered while starting a business? Are you preparing for Exams? : It is an instrument of exchange used in old times which involved a contract that warrants the payment of money, a promise or order which is unconditional, and can be exchanged through transfer by valid negotiation. A teacher training his daughter at home. 2. They help to build customer trust and increase customer satisfaction by taking feedback. Brokers and agents may act as a crucial link between buyers and sellers. The major categories are . Production or procurement of goods and services: Business includes all the activities concerned with the production or procurement of goods & services for sales. Trade: Refers to buying and selling of goods and services with the objective of earning profit. Proper planning and training should be done for hiring employees at the right position and at the right time and cost. They result in heavy losses of life, property & income in business. The extent of risk depends upon the nature and size of business. Dealing in goods and services on daily basis . : These industries do breeding of plants and animals for their use in further reproduction. For Example social work, religious activities etc. Trade | Auxiliaries to trade | Objectives of Business | class 11 | business studies | Ch 1 | ep-03 | Bhai Ki Padhai Commerce Classification of business . The resources of business are scarce so these must be utilized in the best possible manner so that the business can get maximum benefit from their resources. (2) For growth & Expansion: All businessmen want their business to expand and to grow. 4. It earns profit by selling its products or services to members of society. Warehousing: Usually, goods are not sold or consumed . Competent and committed workforce: Every business needs competent workforce to run its business operations smoothly. Role of Business in The Development of Economy: Business activities have been undertaken since the ancient era. Revision Notes for Class 11 Business StudiesDownload as PDF. Any mistake in this can result in high losses to business. There are two types of business risks: 1. Business risks arise due to uncertainties: Lack of knowledge of what is going to happen in future create uncertainties in business.
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