NCERT Business Studies Solutions Class 11 Chapter 1

 NCERT Business Studies Solutions Class 11 Chapter 1 Short Questions

1. Name any five major trading cities of ancient India?

The trading cities of ancient India are:

Pataliputra

Taxila

Indraprastha

Mohenjo Dara

Mathura

2. What is Hundi?

Hundi is a financial instrument that was developed in medieval India to carry out transactions related to trade and credit. It is an unconditional written order made by a person directing another person to pay a specified sum of money to the person named in the order. It can be changed by transfer by valid negotiation.

3.List the major exports and imports in ancient India.

India's export items are - spices, wheat, sugar, indigo, opium, cotton, parrot, sesame oil, live animals and animal products such as hides, skins, horns, furs, tortoise shells, sapphires, pearls, quartz, crystal, lapis , granites, lazuli, turquoise and copper etc.

The import items consisted of horses, animal products, Chinese silk, linen and flax, wine, glass, gold, silver, tin, lead, copper, rubies, coral, amber, etc.

4. What were the different types of Hundred used by traders in ancient times?

The types of hundi are:

Shah Jog Hundi: Paid to a venerable man

Jokhmi Hundi: It is a type of hundi which is applicable for goods transported by ship

Nam Jog Hundi: Payable to the nominated party or their order

Dhani Hundi: It is paid to the owner of the hundi

Jawabi Hundi: A type of hundi that resembles a money order.

Darshani Hundi: Payable on the spot

Miadi Hundi or Muddati Hundi: Hundi which is due after a certain period

5. What do you understand by maritime trade?

A type of trade that involves the transportation of goods by sea using ships as the primary medium is called maritime trade. There are special regulations for this kind of trade, because transporting goods by sea is a risk.

6.List the different types of economic activities.

The various economic activities are:

Profession: These are activities that require specialized skills and knowledge and people who engage in these are known as professionals

Employment: It is a type of economic activity where people are paid for the service they provide and are known as employees.

Entrepreneurship: This is an economic activity that deals with the trading of goods and services with the motive of making a profit.

7. Why is entrepreneurship considered an economic activity?

Business is said to be an economic activity because the sole purpose of starting a business is to earn a living and also to make a profit from the activity. Therefore, it is considered an economic activity.

8. State the purpose of the business.

Business is an occupation where people engage in activities related to the purchase or production and sale of goods and services with the sole aim of making a profit and therefore produce or sell goods and services that are in demand.

9. How would you classify business activities?

Business activity can be classified as:

Industry

commerce

Industry: These are activities related to the processing of raw materials into the form of a final product. The role of the industry is to provide value to the raw material for consumption by end users (consumers). Sectors are divided into primary, secondary and tertiary according to the function they perform.

Business: Mainly deals with trading and related activities. It involves the exchange of goods and services. Commerce deals with two types of activities: trade and trade support workers. When goods are bought and sold, it is referred to as trade and ancillary activities related to trade which include banking, transportation, advertising, communication. Trade provides the necessary connection that must exist between producers and consumers.

10. What are the different types of industries?

The industry can generally be divided into three types:

Primary industries: These types of industries focus on obtaining raw materials and examples are mining, fishing and agriculture.

Secondary Industries: These industries are primarily concerned with the production of goods from raw materials and include the automobile, steel, and electronics industries.

Tertiary Industries: These industries provide services and support to primary and secondary industries and trade-related activities.

11. Explain any two business activities which are ancillary business activities.

Activities that facilitate the exchange of goods and services are referred to as aids to trade. Two examples:

Banking and Finance: Funds are required to acquire assets, purchase raw materials and also cover other expenses. These funds can be obtained from the bank. Therefore, banking helps business activities to fulfill the required funds.

Advertising: It is an important part of marketing which includes product promotion and accurate promotion only helps to reach potential viewers which will lead to sales.

What role does profit play in business?

Profit is the only purpose for which a business is run. Without profit, the company will not last long. In order for the business to operate regularly, part of the profit must be reinvested. It helps in business growth. The role of profit in business is that it is essential for business expansion.

What is business risk? What is his nature?

Business risk, this term is referred to as the possibility of making disproportionate profits or losses due to unforeseen or unexpected circumstances. This can happen when demand for a particular product decreases due to increased competition or a change in customer preferences.

The nature of business risks is:

Risk-related profit: Profit is earned as a reward for the risk taken in business.

The level of risk taken depends on the scale of the business

Risk is a necessary part of any business.

Business risk arises as a result of uncertainties in business.