{"id":21865,"date":"2022-07-18T12:43:30","date_gmt":"2022-07-18T07:13:30","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=21865"},"modified":"2025-12-22T13:14:33","modified_gmt":"2025-12-22T07:44:33","slug":"11th-ocm-chapter-1-exercise","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/","title":{"rendered":"11th OCM Chapter 1 Exercise (Introduction of Commerce and Business) Maharashtra Board &#8211; Free Resource"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69eddf66b2162\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69eddf66b2162\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#11th_OCM_Chapter_1_Exercise\" >11th OCM Chapter 1 Exercise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Chapter_1_%E2%80%93_Introduction_of_Commerce_and_Business\" >Chapter 1 &#8211; Introduction of Commerce and Business<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_A_Select_the_correct_option_and_rewrite_the_sentences\" >Q.1 (A) Select the correct option and rewrite the sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_B_Match_the_pairs\" >Q.1 (B) Match the pairs.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_C_Give_one_wordphraseterm_for_the_following_statements\" >Q.1 (C) Give one word\/phrase\/term for the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_D_State_True_or_False\" >Q.1 (D) State True or False.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_E_Find_the_odd_one\" >Q.1 (E) Find the odd one.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_F_Complete_the_sentences\" >Q.1 (F) Complete the sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_G_Complete_the_following_table\" >Q.1 (G) Complete the following table.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1_H_Answer_in_one_sentence\" >Q.1 (H) Answer in one sentence.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q1I_Correct_the_underlined_word_and_rewrite_the_following_sentences\" >Q.1(I) Correct the underlined word and rewrite the following sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q2_Explain_the_following_termsconcepts\" >Q.2 Explain the following terms\/concepts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q3_Study_the_following_casesituation_and_express_your_opinion\" >Q.3 Study the following case\/situation and express your opinion.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q4_Distinguish_between\" >Q.4 Distinguish between.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q5_Answer_in_brief\" >Q.5 Answer in brief.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q6_Justify_the_following_statements\" >Q.6 Justify the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q7_Attempt_the_following\" >Q.7 Attempt the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Q8_Answer_the_following\" >Q.8 Answer the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#11th_OCM_Textbook_Solutions\" >11th OCM Textbook Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-1-exercise\/#Check_out_other_posts_related_to_11th_Commerce\" >Check out other posts related to 11th Commerce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"11th_OCM_Chapter_1_Exercise\"><\/span>11th OCM Chapter 1 Exercise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/11th-OCM-Chapter-1-Exercise-1024x576.webp\" alt=\"11th OCM Chapter 1 Exercise\" class=\"wp-image-22419 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/11th-OCM-Chapter-1-Exercise-1024x576.webp 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/11th-OCM-Chapter-1-Exercise-300x169.webp 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/11th-OCM-Chapter-1-Exercise-768x432.webp 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/11th-OCM-Chapter-1-Exercise.webp 1280w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">11th OCM Chapter 1 Exercise<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-vivid-green-cyan-background-color has-text-color has-background has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Chapter_1_%E2%80%93_Introduction_of_Commerce_and_Business\"><\/span><strong>Chapter 1 &#8211; <strong><strong>Introduction of Commerce and Business<\/strong><\/strong><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_A_Select_the_correct_option_and_rewrite_the_sentences\"><\/span>Q.1 (A) Select the correct option and rewrite the sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) A Lawyer is _____.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">a) a Professional person <br><\/mark><\/strong>b) a Businessman <br>c) an employee<\/p>\n\n\n\n<p><strong>2) Raw material is converted into finished product by _____ industry.<br><\/strong>a) genetic <br>b) extractive <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">c) manufacturing<\/mark><\/strong><\/p>\n\n\n\n<p><strong>3) Actual buying and selling of goods is known as _____.<\/strong><br>a) profession <br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\"><strong>b) trade <br><\/strong><\/mark>c) industry<\/p>\n\n\n\n<p><strong>4) National level code of conduct is prepared for _____.<\/strong><br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">a) professionals <br><\/mark><\/strong>b) businessmen <br>c) employees<\/p>\n\n\n\n<p><strong>5) Construction of dams is an activity done under _____ industry.<\/strong><br>a) primary <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">b) secondary <br><\/mark><\/strong>c) tertiary<\/p>\n\n\n\n<p><strong>6) The problem of distance is solved by _____.<\/strong><br>a) bank <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">b) transport <br><\/mark><\/strong>c) warehousing<\/p>\n\n\n\n<p><strong>7) Commerce is a branch of _____.<\/strong><br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">a) business <br><\/mark><\/strong>b) industry <br>c) trade<\/p>\n\n\n\n<p><strong>8) Monetory Returns in business is called _____.<\/strong><br>a) fees <br>b) salary <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">c) profit<\/mark><\/strong><\/p>\n\n\n\n<p><strong>9) A business unit depends upon _____ for selling its output.<\/strong><br>a) industry <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">b) society <br><\/mark><\/strong>c) employees<\/p>\n\n\n\n<p><strong>10) Warehousing creates _____ utility in goods.<\/strong><br>a) place <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">b) time <br><\/mark><\/strong>c) form<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_B_Match_the_pairs\"><\/span>Q.1 (B) Match the pairs.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">a) Helping disabled person<\/td><td class=\"has-text-align-center\" data-align=\"center\">1) Social objective<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">b) Genetic Industry<\/td><td class=\"has-text-align-center\" data-align=\"center\">2) Foreign Trade<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">c) Local currency<\/td><td class=\"has-text-align-center\" data-align=\"center\">3) Sericulture<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">d) Solve social problems<\/td><td class=\"has-text-align-center\" data-align=\"center\">4) Non-economic activity<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">5) Internal Trade<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">6) Mining<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">7) Profit<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">8) Economic activity<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Answers.   <br>a. 4) Non-economic activity<br>b. 3) Sericulture<br>c. 5) Internal Trade<br>d. 1) Social objective<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_C_Give_one_wordphraseterm_for_the_following_statements\"><\/span>Q.1 (C) Give one word\/phrase\/term for the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) A regular activity concerned with production and distribution of goods and services for profits.<br><strong>Answer: Business<\/strong><\/p>\n\n\n\n<p>2) Human activities that are conducted for earning money.<br><strong>Answer: Economic activities<\/strong><\/p>\n\n\n\n<p>3) Buying and selling of goods against money or money\u2019s worth.<br><strong>Answer: Trade<\/strong><\/p>\n\n\n\n<p>4) Activities that remove all the difficulties in trade.<br><strong>Answer: Auxiliaries to trade<\/strong><\/p>\n\n\n\n<p>5) The type of industries that creates immovable wealth.<br><strong>Answer: Construction Industry<\/strong><\/p>\n\n\n\n<p>6) Name the business activity which is concerned with production of goods and services.<br><strong>Answer: Industry<\/strong><\/p>\n\n\n\n<p>7) Name the business activity which is concerned with distribution of goods and services.<br><strong>Answer: Commerce<\/strong><\/p>\n\n\n\n<p>8) The activity which provides mobility to men and material.<br><strong>Answer: Transport<\/strong><\/p>\n\n\n\n<p>9) An aid to trade which creates time utility.<br><strong>Answer: Warehousing<\/strong><\/p>\n\n\n\n<p>10) An occupation by which a person agrees to provide expert services for a fees.<br><strong>Answer: Profession<\/strong><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_D_State_True_or_False\"><\/span>Q.1 (D) State True or False.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Business is an economic activity. <strong>(True)<\/strong><\/p>\n\n\n\n<p>2) Every profession is practiced for earning money. <strong>(True)<\/strong><\/p>\n\n\n\n<p>3) Primary industries are concerned with nature. <strong>(True)<\/strong><\/p>\n\n\n\n<p>4) Trade includes commerce. <strong>(False)<\/strong><\/p>\n\n\n\n<p>5) Warehousing removes difficulty of time. <strong>(False)<\/strong><\/p>\n\n\n\n<p>6) Trade includes buying and selling of goods and services. <strong>(True)<\/strong><\/p>\n\n\n\n<p>7) Profit leads to an increase in the overall efficiency of the organization. <strong>(True)<\/strong><\/p>\n\n\n\n<p>8) Plant nursery is an example of an extractive industry. <strong>(False)<\/strong><\/p>\n\n\n\n<p>9) Industry creates form utility. <strong>(True)<\/strong><\/p>\n\n\n\n<p>10) Retailer is the link between manufacturer and wholesalers. <strong>(False)<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_E_Find_the_odd_one\"><\/span>Q.1 (E) Find the odd one.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Agricultural Industry, Extractive Industry, Genetic Industry, <strong>Manufacturing Industry<\/strong>.<\/p>\n\n\n\n<p>2) Import Trade, Export Trade, <strong>Wholesale Trade<\/strong>, Entrepot Trade.<\/p>\n\n\n\n<p>3) Banking, Insurance, Transport, <strong>Manufacturing<\/strong>.<\/p>\n\n\n\n<p>4) Tea, Milk, Coffee, <strong>Machinery<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_F_Complete_the_sentences\"><\/span>Q.1 (F) Complete the sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Economic activities are those activities which are conducted to <strong><span style=\"text-decoration: underline;\">earn money<\/span><\/strong> .<\/p>\n\n\n\n<p>2) <strong><span style=\"text-decoration: underline;\">Commerce<\/span><\/strong> includes marketing of goods and services.<\/p>\n\n\n\n<p>3) Business is an <strong><span style=\"text-decoration: underline;\">economic<\/span><\/strong> activity.<\/p>\n\n\n\n<p>4) The basic purpose of <strong><span style=\"text-decoration: underline;\">business<\/span><\/strong> is to earn profit.<\/p>\n\n\n\n<p>5) Professionals, charge <strong><span style=\"text-decoration: underline;\">fees<\/span><\/strong> in exchange of expert services.<\/p>\n\n\n\n<p>6) <strong><span style=\"text-decoration: underline;\">Employer<\/span><\/strong> is the person who offers the work.<\/p>\n\n\n\n<p>7) <strong><span style=\"text-decoration: underline;\">Profit<\/span><\/strong> is considered as a reward for assuming several business risks.<\/p>\n\n\n\n<p>8) Industry creates <strong><span style=\"text-decoration: underline;\">form<\/span><\/strong> utility.<\/p>\n\n\n\n<p>9) In <strong><span style=\"text-decoration: underline;\">wholesale<\/span><\/strong> trade, goods are purchased and sold in bulk.<\/p>\n\n\n\n<p>10) <strong><span style=\"text-decoration: underline;\">Retailer<\/span><\/strong> is the link between wholesaler and customer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_G_Complete_the_following_table\"><\/span>Q.1 (G) Complete the following table.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A&nbsp;<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1) Trade between different countries<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><span style=\"text-decoration: underline;\">External trade<\/span><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2) Purchases of goods and services<br>from another country.<\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong><span style=\"text-decoration: underline;\">Import Trade<\/span><\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3) <strong><span style=\"text-decoration: underline;\">Export trade<\/span><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Selling of goods and services to<br>foreign customer.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4) <strong><span style=\"text-decoration: underline;\">Wholesaler<\/span><\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">Link between producer and retailer.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_H_Answer_in_one_sentence\"><\/span>Q.1 (H) Answer in one sentence.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) What is an Economic Activity?<br>Answer:<\/strong> Activities that involve production, distribution and consumption of goods and services for money or money\u2019s worth at all levels within a society is called economic activity. For e.g. worker working in a factory.<\/p>\n\n\n\n<p><strong>2) What is Non-economic Activity?<\/strong><br><strong>Answer:<\/strong> Non-economic activities are those human activities which are performed to satisfy personal, social, religious, cultural and sentimental requirement without monetary expectations. For e.g. reading books, serving people, cooking by mother etc.<\/p>\n\n\n\n<p><strong>3) What do you mean by Wholesale Trade?<br>Answer:<\/strong> In wholesale trade, goods are purchased and sold in bulk. A wholesaler purchases in large quantities from the producers and sells in small quantities to the retailers.<\/p>\n\n\n\n<p><strong>4) What is the meaning of Retail Trade?<br>Answer:<\/strong> Retail trade is business activity associated with the sale of goods to the final consumers. A retailer is the one who purchases from the wholesaler or sometimes directly from the producer and sells them in smaller quantities to final consumer<\/p>\n\n\n\n<p><strong>5) What do you mean by Import Trade?<br>Answer:<\/strong> When goods and services are purchased from another country it is called as import trade.<\/p>\n\n\n\n<p><strong>6) What is the meaning of Export Trade?<br>Answer:<\/strong> When goods and services are sold to foreign buyers then it is called as export trade.<\/p>\n\n\n\n<p><strong>7) What is an Entrepot Trade?<br>Answer:<\/strong> It is the combination of import\/export trade. It involves importing the goods from one country and reselling these goods to another country. e.g. Indian Seller importing goods from Japan and re-exporting same goods to Africa.<\/p>\n\n\n\n<p><strong>8) What is meant by Auxiliaries to Trade?<br>Answer:<\/strong> All those activities that facilitate smooth flow of goods from manufacturing centers to the consumption centers are called aids to trade or auxiliaries to trade.<\/p>\n\n\n\n<p><strong>9) What is Trade?<\/strong><br><strong>Answer:<\/strong> Trade denote buying and selling of goods and services. Trade is an exchange of goods and services with money or money\u2019s worth.<\/p>\n\n\n\n<p><strong>10) What do you mean by Commerce?<\/strong><br><strong>Answer:<\/strong> Commerce is that part of business activity which is concerned with distribution of goods and services produced by Industry.<\/p>\n\n\n\n<p><strong>11) What is Primary Industry?<\/strong><br><strong>Answer:<\/strong> Primary industry is concerned with nature. It is a nature-oriented industry. The products of primary industry may be used as the input of secondary industry.<\/p>\n\n\n\n<p><strong>12) What is Secondary Industry?<\/strong><br><strong>Answer:<\/strong> These industries depend on primary industries. They convert the raw material provided by primary industry into finished products. e.g. Tomatoes provided by primary industry are used for making sauce and ketchup.<\/p>\n\n\n\n<p><strong>13) What do you mean by Genetic Industry?<\/strong><br><strong>Answer:<\/strong> Genetic industries are engaged in reproduction and multiplication of plants and animals. e.g. animal husbandry, sericulture, horticulture etc.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1I_Correct_the_underlined_word_and_rewrite_the_following_sentences\"><\/span>Q.1(I) Correct the underlined word and rewrite the following sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) Business is <strong><span style=\"text-decoration: underline;\">non-economic<\/span><\/strong> activity.<br><strong>Answer:<\/strong> Economic<\/p>\n\n\n\n<p>2) Barter exchange is an exchange with <strong><span style=\"text-decoration: underline;\">money<\/span><\/strong>.<br><strong>Answer:<\/strong> Goods<\/p>\n\n\n\n<p>3) Profession <strong><span style=\"text-decoration: underline;\">can be transferred to other person<\/span><\/strong>.<br><strong>Answer:<\/strong> cannot be transferred to other person.<\/p>\n\n\n\n<p>4) Capital is required for <strong><span style=\"text-decoration: underline;\">employment<\/span><\/strong>.<br><strong>Answer:<\/strong> Business<\/p>\n\n\n\n<p>5) <strong><span style=\"text-decoration: underline;\">Industry<\/span><\/strong> creates place utility.<br><strong>Answer:<\/strong> Transport<\/p>\n\n\n\n<p>6) <strong><span style=\"text-decoration: underline;\">Commerce<\/span><\/strong> represents supply side of market.<br><strong>Answer:<\/strong> Industry<\/p>\n\n\n\n<p>7) The basic purpose of business is to <strong><span style=\"text-decoration: underline;\">provide services<\/span><\/strong>.<br><strong>Answer:<\/strong> earn profit<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q2_Explain_the_following_termsconcepts\"><\/span>Q.2 Explain the following terms\/concepts.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) Business<\/mark><\/strong><br><strong>Answer:<\/strong> Business represents organized efforts by an individual or group of individuals\u2019. It is a systematic attempt by business persons to produce goods and services and sell them in the market, to reap the reward by way of profit. It satisfies multiple and complex needs of the society .<\/p>\n\n\n\n<p>Prof. Haney &#8211; \u201cBusiness activities are all those human activities which are directed towards the production and processing of wealth.\u201d<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) Profession<\/strong><\/mark><br><strong>Answer: <\/strong>Profession is that part of economic activities under which a person uses his educational knowledge and special skill to render services for earning some income. e.g. Doctor, Lawyer, Chartered Accountant etc. Professionals get fees in exchange of their services.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">3) Employment<\/mark><\/strong><br><strong>Answer:<\/strong> It is an economic activity in which people work for others. There is employer employee relationship. Employer is the person who offers the job and the person who accepts the job is called employee. Remuneration and terms and conditions are agreed by both of them.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) Home Trade<\/strong><\/mark><br><strong>Answer:<\/strong> In this trade, buying and selling of goods and services takes place within the geographical boundries of a country. It uses local currency for the exchange of goods and services. Home trade if further divided into wholesale trade and retail trade.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) Foreign Trade<\/strong><\/mark><br><strong>Answer:<\/strong> When trade takes place between different countries, it is known as foreign trade. When boundaries of two countries are crossed then different currencies are used. It is further divided into Import trade, Export trade, and Entrepot trade.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>6) Economic Activity<\/strong><\/mark><br><strong>Answer:<\/strong> Activities that involve production, distribution and consumption of goods and services for money or money\u2019s worth at all levels within a society is called economic activity. For e.g. worker working in a factory.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>7) Non-economic Activity<\/strong><\/mark><br><strong>Answer:<\/strong> Non-economic activities are those human activities which are performed to satisfy personal, social, religious, cultural and sentimental requirement without monetary expectations. For e.g. reading books, serving people, cooking by mother etc. <\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q3_Study_the_following_casesituation_and_express_your_opinion\"><\/span>Q.3 Study the following case\/situation and express your opinion.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">1) Jaysukh oil mills produce refined oil. The entire production is purchased by Rupesh oil Depot, who in turn sells it to various retailers. Mrs. Prachi purchased 2 kg oil from Balaji Groceries. <br><\/mark><strong>Identify:<\/strong><\/p>\n\n\n\n<p>i) Wholesaler<br>ii) Retailer<br>iii) Consumer<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>i) Wholesaler &#8211; Rupesh Oil Depot<br>ii) Retailer &#8211; Balaji Groceries<br>iii) Consumer &#8211; Mrs. Prachi<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">2) Mr. Pranav is a tin manufacturer in India. Mr. Jack of England sells goods to M\/s. Frank Corporation in North America and Mr. Williams of USA buys various goods from Brazil.<\/mark><\/p>\n\n\n\n<p>i) Who is importer?<br>ii) Who is manufacturer?<br>iii) Who is exporter?<\/p>\n\n\n\n<p><strong>Solution:<\/strong><br>i) M\/s. Frank Corporation and Mr. Williams of USA are importer. <br>ii) Mr. Pranav is a manufacturer.<br>iii) Mr Jack of England is exporter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q4_Distinguish_between\"><\/span>Q.4 Distinguish between.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) Industry and Commerce<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sr.<br>No.<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Point of <br>difference<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Industry<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Commerce<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">Industry is engaged in production of goods and services.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Commerce is engaged in distribution of goods and services.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">Location<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is located in factories and<br>workshops.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is conducted in markets and<br>offices.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">Utility<\/td><td class=\"has-text-align-center\" data-align=\"center\">It creates form utility<\/td><td class=\"has-text-align-center\" data-align=\"center\">It creates place, time and<br>possession utility<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td class=\"has-text-align-center\" data-align=\"center\">Resources<\/td><td class=\"has-text-align-center\" data-align=\"center\">It uses machine and manpower<\/td><td class=\"has-text-align-center\" data-align=\"center\">It requires more manpower<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td class=\"has-text-align-center\" data-align=\"center\">Capital<\/td><td class=\"has-text-align-center\" data-align=\"center\">Huge capital is required to start industry<\/td><td class=\"has-text-align-center\" data-align=\"center\">Commerce comparatively requires less capital<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6<\/td><td class=\"has-text-align-center\" data-align=\"center\">Interdependence<\/td><td class=\"has-text-align-center\" data-align=\"center\">Industrial activities are meaningless without commerce.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Commercial activities cannot be<br>started without the production of<br>goods &amp; services.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7<\/td><td class=\"has-text-align-center\" data-align=\"center\">Conducted by<\/td><td class=\"has-text-align-center\" data-align=\"center\">Producers and manufacturers<\/td><td class=\"has-text-align-center\" data-align=\"center\">Traders, mercantile agents etc.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8<\/td><td class=\"has-text-align-center\" data-align=\"center\">Classification<\/td><td class=\"has-text-align-center\" data-align=\"center\">Primary, Secondary and Tertiary<br>industry<\/td><td class=\"has-text-align-center\" data-align=\"center\">Trade and Auxiliaries to Trade<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">9<\/td><td class=\"has-text-align-center\" data-align=\"center\">Market force<\/td><td class=\"has-text-align-center\" data-align=\"center\">It represents supply side of<br>market<\/td><td class=\"has-text-align-center\" data-align=\"center\">It represents demand and supply side of market<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>2) Business and Commerce<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sr.<br>No.<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Point of <br>difference<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Business<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Commerce<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is an economic activity which deals in production and distribution of goods and services.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is a part of business which is concerned with distribution of goods and service<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">Concept<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is a broader concept as it includes commerce.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is a narrow concept as it is a<br>part of business.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">Skill<\/td><td class=\"has-text-align-center\" data-align=\"center\">It requires technical as well as<br>marketing skill.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It requires only marketing skill<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td class=\"has-text-align-center\" data-align=\"center\">Classification<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is classified into Industry and<br>Commerce.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is classified as trade and<br>auxiliaries to trade.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>3) Business and Profession<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sr.<br>No.<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Point of <br>difference<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Business<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Profession<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">In this economic activity, goods and services are produced<br>and distributed<\/td><td class=\"has-text-align-center\" data-align=\"center\">In this economic activity, expert services are rendered.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">Reward \/ Return<\/td><td class=\"has-text-align-center\" data-align=\"center\">Businessmen earn profit.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Professional charges fees.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">Capital<br>investment<\/td><td class=\"has-text-align-center\" data-align=\"center\">Capital investment depends on size and nature of business.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Limited capital investment is<br>required except the self-employed professional.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td class=\"has-text-align-center\" data-align=\"center\">Nature of work<\/td><td class=\"has-text-align-center\" data-align=\"center\">It provides goods and services to the public.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It renders personalized expert<br>services.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td class=\"has-text-align-center\" data-align=\"center\">Qualification<\/td><td class=\"has-text-align-center\" data-align=\"center\">No minimum qualification is<br>prescribed.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Expert knowledge and training in a particular field needed.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6<\/td><td class=\"has-text-align-center\" data-align=\"center\">Decision Making<\/td><td class=\"has-text-align-center\" data-align=\"center\">Businessmen are free to take the decisions.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Professionals take expert decisions in their profession.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7<\/td><td class=\"has-text-align-center\" data-align=\"center\">Risk<\/td><td class=\"has-text-align-center\" data-align=\"center\">Profit is uncertain and irregular so high risk is present.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Fees is generally not certain and regular.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8<\/td><td class=\"has-text-align-center\" data-align=\"center\">Examples<\/td><td class=\"has-text-align-center\" data-align=\"center\">Builders, Grocers, Super market etc.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Doctor, C.A., Lawyer etc.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>4) Employment and Profession<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Sr.<br>No.<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Point of <br>difference<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Employment<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Profession<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">Meaning<\/td><td class=\"has-text-align-center\" data-align=\"center\">In this economic activity, one person works under another person.<\/td><td class=\"has-text-align-center\" data-align=\"center\">In this economic activity, expert services are rendered.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">2<\/td><td class=\"has-text-align-center\" data-align=\"center\">Reward \/ Return<\/td><td class=\"has-text-align-center\" data-align=\"center\">An employee receives wages or<br>salary<\/td><td class=\"has-text-align-center\" data-align=\"center\">Professional charges fees.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">3<\/td><td class=\"has-text-align-center\" data-align=\"center\">Capital<br>investment<\/td><td class=\"has-text-align-center\" data-align=\"center\">No capital investment is necessary.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Limited capital investment is<br>required except the self-employed professional.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">4<\/td><td class=\"has-text-align-center\" data-align=\"center\">Nature of work<\/td><td class=\"has-text-align-center\" data-align=\"center\">They perform the work as per service contract.<\/td><td class=\"has-text-align-center\" data-align=\"center\">It renders personalized expert<br>services.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">5<\/td><td class=\"has-text-align-center\" data-align=\"center\">Qualification<\/td><td class=\"has-text-align-center\" data-align=\"center\">It is prescribed by the employer.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Expert knowledge and training in a particular field needed.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">6<\/td><td class=\"has-text-align-center\" data-align=\"center\">Decision Making<\/td><td class=\"has-text-align-center\" data-align=\"center\">Employee does not have any power to take any decision.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Professionals take expert decisions in their profession.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">7<\/td><td class=\"has-text-align-center\" data-align=\"center\">Risk<\/td><td class=\"has-text-align-center\" data-align=\"center\">Fixed and regular pay is given by<br>employer as per contract so no risk<br>is involved.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Fees is generally not certain and regular.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">8<\/td><td class=\"has-text-align-center\" data-align=\"center\">Examples<\/td><td class=\"has-text-align-center\" data-align=\"center\">Clerk, Teacher, Officers etc.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Doctor, C.A., Lawyer etc.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q5_Answer_in_brief\"><\/span>Q.5 Answer in brief.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">1) State any four features of profession.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> Profession is that part of economic activities under which a person uses his educational knowledge and special skill to render services for earning some income. e.g. Doctor, Lawyer, Chartered Accountant etc.<\/p>\n\n\n\n<p><strong>Features of Profession:<\/strong><\/p>\n\n\n\n<p><strong>1) Aim <\/strong><\/p>\n\n\n\n<p>Every profession is practiced for earning money. Also they render services to their clients and solve their problems.<\/p>\n\n\n\n<p><strong>2) Qualification<\/strong><\/p>\n\n\n\n<p>A profession can be practiced only after acquiring required qualifications. Each profession has a certain set of body of knowledge. This knowledge has to be acquired only by systematic and formal training. One cannot practice profession, unless this knowledge is acquired.<\/p>\n\n\n\n<p><strong>3) Financial Returns<\/strong><\/p>\n\n\n\n<p>Professionals get fees in exchange of their services. Income received by professional is not fixed. Professionals can be employed in an organization or self employed. A working Chartered Accountant gets salary but those who practice privately i.e. self-employed get fees.<\/p>\n\n\n\n<p><strong>4) Capital<\/strong><\/p>\n\n\n\n<p>Profession can be practiced independently or professionals accept a job in any organization. Independent practicing professional requires huge capital for setting his practice. It differs from profession to profession.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">2) State any two types of industries<\/mark>.<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>The term industry also means group of firms producing similar or related goods e.g. Sugar industry refers to all manufacturing units producing sugar from sugarcane.<\/p>\n\n\n\n<p><strong>A) Primary Industry :<\/strong> Primary industry is concerned with nature. It is a nature-oriented industry. The products of primary industry may be used as the input of secondary industry. Primary industries are of three types.<\/p>\n\n\n\n<p>a) Agriculture Industry<br>b) Extractive Industry<br>c) Genetic Industry<\/p>\n\n\n\n<p><strong>B) Secondary Industry :<\/strong> These industries depend on primary industries. They convert the raw material provided by primary industry into finished products. e.g. Tomatoes provided by primary industry are used for making sauce and ketchup.<br>Secondary Industries are of two types.<\/p>\n\n\n\n<p><strong>a) Manufacturing Industry<\/strong><br><strong>b) Construction Industry<\/strong><\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">3) Give two types of Foreign Trade.<\/mark><\/strong><\/p>\n\n\n\n<p> <strong style=\"color: initial;\">Answer:<\/strong> <br>When trade takes place between different countries, it is known as foreign trade. When boundaries of two countries are crossed then different currencies are used. <br>It is further divided as :<\/p>\n\n\n\n<p><strong>i) Import Trade<\/strong><br>When goods and services are purchased from another country it is called as import trade.<\/p>\n\n\n\n<p><strong>ii) Export Trade <\/strong><br>When goods and services are sold to foreign buyers then it is called as export trade.<\/p>\n\n\n\n<p><strong>iii) Entrepot Trade<\/strong><br>It is the combination of import\/export trade. It involves importing the goods from one country and reselling these goods to another country. e.g. Indian Seller importing goods from Japan and re-exporting same goods to Africa.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">4) State any four Auxiliaries to Trade.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>All those activities that facilitate smooth flow of goods from manufacturing centers to the consumption centers are called aids to trade or auxiliaries to trade. These activities play supportive role. They help in removing hindrances which arise during the production and distribution of goods and services. <\/p>\n\n\n\n<p><strong>Following are various Auxiliaries to Trade.<\/strong><\/p>\n\n\n\n<p><strong>i) Transport<\/strong><br>The goods are produced at one place but they are demanded over a wide area. So goods are to be sent to different places where they are demanded. Modes of transport facilitate movement of men and materials from one place to another.<\/p>\n\n\n\n<p><strong>ii) Warehousing<\/strong><br>There is a gap between production and consumption. Certain goods are produced throughout the year but consumed only in a particular part of the year and vice versa. Warehouses are also called godowns. Price is maintained at a reasonable level and there is a continuous supply of goods and services.<\/p>\n\n\n\n<p><strong>iii) Insurance <\/strong><br>There are various risks involved in the business. The goods may be destroyed while in production process or in transit due to accidents or in storage due to fire or theft. The businessmen would like to cover these risks Insurance companies come to their rescue. to insure his goods and pay premium regularly. Risks cannot be avoided completely but they can be minimized by taking insurance policy.<\/p>\n\n\n\n<p><strong>iv) Banking<\/strong><br>We require money to start the business and to run it smoothly. Banks supply money. Adequate funds can be obtained from the bank. Bank provides loans, overdraft, cash credit etc. to businessmen. Banks also provide many services like cheques, drafts debit cards, credit cards, online transactions etc. It helps the traders to carry their business activities smoothly.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">5) State any four features of employment.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>It is an economic activity in which people work for others. There is employer-employee relationship. Employer is the person who offers the job and the person who accepts the job is called employee. Remuneration and terms and conditions are agreed by both of them.<\/p>\n\n\n\n<p><strong>1) Aim<\/strong><br>The main aim is to earn money for meeting needs of the employees and employers.<\/p>\n\n\n\n<p><strong>2) Qualifications<\/strong><br>Each job requires some qualification. Skilled or unskilled labour is required as per the nature of the job. For skilled job some specific qualifications are required e.g. Job of nurse. But no specific qualification for unskilled job is necessary. e.g. Office boy.<\/p>\n\n\n\n<p><strong>3) Monetary Returns<\/strong><br>Wages or salaries is given as a financial return to employee after completion of work. Wages are decided in advance before appointment. Wages are paid. daily or weekly. Salary is paid monthly. Along with salary other benefits like bonus, quarters to stay, subsidized food in canteen etc. also can be given to employees.<\/p>\n\n\n\n<p><strong>4) Capital<\/strong><br>No capital is required for employment because employer invests and provides everything to the employee for completing the job.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">6) Write any four objectives of business.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>a) Earning Profit<\/strong><br>Profit is required for survival of the business and for its growth.<\/p>\n\n\n\n<p><strong>b) Searching New Customers<\/strong><br>Business organizations have to work hard to create new customers and also to maintain the existing customers.<\/p>\n\n\n\n<p><strong>c) Innovations<\/strong><br>It is a development or positive change which results into improvement in product or process of production. It has to spend money on R&amp; D (Research and Development), market survey, use of technology etc.<\/p>\n\n\n\n<p><strong>d) Best Possible Use of Resources<\/strong><br>Resources are scarce and have alternative uses. They should be used to its maximum and should not be wasted. Optimum use of resources ultimately leads to increasing profits.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">7) State any four features of business.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>1) An Economic Activity<\/strong><br>Business is an economic activity as it is undertaken to earn money or livelihood. It is not because of love, affection, feelings, sentiment etc.<\/p>\n\n\n\n<p><strong>2) Two Parties<\/strong><br>Every business transaction involves an exchange. Minimum two parties are required for exchange i.e. the seller and the buyer. Business transaction is a result of an agreement between the buyer and the seller which may be oral or written.<\/p>\n\n\n\n<p><strong>3) Profit Motive <\/strong><br>The basic purpose of business is to earn the profit from its activities. Businessmen try to maximize profits either by increasing the volume of sales or reducing its costs. It is the spine of business which keeps the business going on in the long term. The amount of profit may differ from business to business.<\/p>\n\n\n\n<p><strong>4) Production of Goods and Services<\/strong><br>Before exchanging the goods and services, they should be produced by business enterprises. Goods are either manufactured or procured from the supplier, with the aim of selling it further to the consumers for profit.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">8) State any two types of primary industry.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>Primary Industry<\/strong><br>Primary industry is concerned with nature. It is a nature-oriented industry. The products of primary industry may be used as the input of secondary industry. <br>Primary industries are of three types.<\/p>\n\n\n\n<p><strong>a) Agriculture Industry<\/strong><br>This includes farming and cultivation of land. The quality of products depend on many factors like fertility of land, climatic conditions, rainfall etc.<\/p>\n\n\n\n<p><strong>b) Extractive Industry<\/strong><br>This industry draws out products from natural resources i.e. soil, air and water. Generally the products are in raw form and they are used by manufacturing and construction industries for producing finished products e.g.. extracting oil and minerals from underground, fishing and forestry etc. It may be used in crude form and may be sent to other industries for further processing.<\/p>\n\n\n\n<p><strong>c) Genetic Industry<\/strong><br>Genetic industries are engaged in reproduction and multiplication of plants and animals. e.g. animal husbandry, sericulture, horticulture etc.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q6_Justify_the_following_statements\"><\/span>Q.6 Justify the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Retailer is in direct contact with ultimate consumers.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) Retailer is a trader operating in the chain of distribution.<br>b) Retailer deals with the ultimate consumer.<br>c) Retailer is the last link in the chain of distribution.<br>d) Goods flow from the producer to the consumer in the given way:-<br>   Producer &#8211;&gt; Wholesaler &#8211;&gt; Retailer &#8211;&gt; Consumer<br>e) Therefore, retailer comes into direct contact with the  ultimate consumer.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">2) Commerce is a wider term than Trade.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer: <\/strong><br>a) Commerce is a part of business activity. Business is Divided into industry and commerce.<br>b) Commerce is concerned with the distribution of goods and services produced by Industry.<br>c) Commerce is further divided into Trade and Auxiliaries to Trade.<br>d) Trade means buying and selling of goods and services.<br>e) All those activities that facilitate the smooth flow of goods from manufacturing centers to the consumption centers are called aids to trade or auxiliaries to trade.<br>f) Thus, it is said that commerce is a wider term than trade. <\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>3) Risk is inevitable in business activities.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) Risk is the key element of every business which is concerned with exposure to loss.<br>b) These risks include changes in consumer tastes, likes-dislikes, fashions, changes in the methods of production, fire, theft, natural calamities, etc.<br>c) No business is free from the above-mentioned factors.<br>d) It is due to some unfavorable or undesirable event. Every business will have some or other risk.<br>e) Intensity of risk can be minimized but can\u2019t be avoided.<br>f) Thus, risk is inevitable in business activities.<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>4) Combination of Import-export trade is entrepot trade.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Import, export, and entrepot are the parts of foreign trade.<br>b) When goods and services are purchased from another country it is called as import trade.<br>c) When goods and services are sold to foreign buyers then it is called as export trade.<br>d) Entrepot is the combination of import and export trade.<br>e) It involves importing the goods from one country and reselling these goods to another country.<br>f) E.g. Indian Seller importing goods from Japan and re-exporting same goods to Africa.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">g) Thus, a combination of Import-export trade is entrepot trade.<\/mark><\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>5) Transport creates place utility.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Transport is one of the important auxiliaries to trade.<br>b) Because the goods are produced at one place but they are demanded over a wide area.<br>c) So goods are to be sent to different places where they are demanded.<br>d) Different modes of transport facilitate the movement of men and materials from one place to another.<br>e) Transport carries goods to the place where they are demanded and it creates place utility.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">f) Thus, we can say that transport creates place utility.<\/mark><\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>6) Industrial activities take place before commerce starts its role.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) Industry and commerce are the two parts of the business.<br>b) Both the parts are complimentary to each other. They are dependent on each other.<br>c) Industry converts the raw material into usable finished products.<br>d) Commerce is that part of business activity that is concerned with the distribution of goods and services produced by Industry.<br>e) Production of goods comes first and it is followed by the distribution or selling of goods.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">f) Thus, Industrial activities take place before commerce starts its role.<\/mark><\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>7) Available resources should be used to its maximum.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Resources are always scarce. The demand for resources is more and the availability of resources is less.<br>b) Similarly, resources belong to society but businesses use them for production and provide the finished goods to society.<br>c) So it is necessary to use the resources carefully. Wastage of resources should be avoided.<br>d) Wherever possible, recycling and reusing the resources should be considered by the businesses.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">e) Thus, available resources should be used to their maximum.<\/mark><\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>8) Wholesaler is a link between retailer and manufacturer.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Wholesalers and retailers are the important intermediaries in trade.<br>b)  They help to bring the goods from the manufacturer to the final consumer.<br>c) A wholesaler purchases in large quantities from the producers and sells in small quantities to the retailers.<br>d) Both the wholesalers and retailers are part of the chain of distribution, which is shown below,<br>   Producer &#8211;&gt; Wholesaler &#8211;&gt; Retailer &#8211;&gt; Consumer<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">e) Thus, we can say that wholesaler is a link between retailer and manufacturer.<\/mark><\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>9) Business is a part of economic activities.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) Economic activities are those activities that are done with the intention of making money.<br>b) A person has to earn money for his livelihood.<br>c) Economic activities are mainly of three types.<br>i) Employment ii) Profession iii) Business<br>d) Business is an economic activity as it is undertaken to earn money or livelihood. It is not because of love, affection, feelings, sentiment, etc.<br>e) The basic purpose of business is to earn a profit from its activities.<br>f) Thus, business is a part of economic activities.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q7_Attempt_the_following\"><\/span>Q.7 Attempt the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">1) What do you mean by commerce?<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>Commerce is that part of business activity that is concerned with the distribution of goods and services produced by Industry. It includes all those activities which are essential for maintaining a free and uninterrupted flow of goods. <\/p>\n\n\n\n<p>Commerce bridges the gap between producers and consumers by exchanges of goods and services for money or money\u2019s worth. <br>Commerce is further divided into Trade and Auxiliaries to Trade.<\/p>\n\n\n\n<p><strong><strong>Trade<\/strong><\/strong><\/p>\n\n\n\n<p>Trade denote buying and selling of goods and services. Trade is an exchange of goods and services with money or money\u2019s worth. Goods are made available to consumers in different markets. Trade facilitates the transfer of ownership and possession of goods and services from the seller to the buyer.<\/p>\n\n\n\n<p><strong><strong>Auxiliaries to Trade<\/strong><\/strong><\/p>\n\n\n\n<p>All those activities that facilitate the smooth flow of goods from manufacturing centers to the<br>consumption centers are called aids to trade or auxiliaries to trade. <\/p>\n\n\n\n<p>These activities play a supportive role. They help in removing hindrances that arise during the production and distribution of goods and services. Following are various Auxiliaries to Trade.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">2) What is the meaning of export trade?<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>Foreign Trade \/ External Trade:<br><\/strong>When trade takes place between different countries, it is known as foreign trade. When the boundaries of two countries are crossed then different currencies are used. It is further divided as :<br><strong>i) Import Trade:<\/strong> When goods and services are purchased from another country it is called as import trade.<br><strong>ii) Export Trade:<\/strong> When goods and services are sold to foreign buyers then it is called as export trade.<br><strong>iii) Entrepot Trade:<\/strong> It is the combination of import\/export trade. It involves importing the goods from one country and reselling these goods to another country. e.g. Indian Seller importing goods from Japan and re-exporting same goods to Africa.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">3) State the role of auxiliaries to trade in trading activities.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>Role of auxiliaries to trade:<\/strong><\/p>\n\n\n\n<p>1) All those activities that facilitate the smooth flow of goods from manufacturing centers to the consumption centers are called aids to trade or auxiliaries to trade.<br>2) These activities play a supportive role.<br>3) They help in removing hindrances that arise during the production and distribution of goods and services.<br>4) Different auxiliaries to trade such as transport, warehousing, insurance, banking, advertising, etc. help trading activities.<br>5) Modes of transport facilitate the movement of men and materials from one place to another.<br>6) With the help of warehouses, price is maintained at a reasonable level and there is a continuous supply of goods and services.<br>7) Risks can be minimized by taking an insurance policy.<br>8) Advertising is an effective aid in selling goods.<br>9) Mercantile Agents bridge the gap between buyer and seller.<\/p>\n\n\n\n<p class=\"has-contrast-color has-text-color\"><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">4) What are the different types of secondary industries?<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>Secondary Industry<strong> <\/strong>industries depend on primary industries. They convert the raw material provided by the primary industry into finished products. e.g. Tomatoes provided by the primary industry are used for making sauce and ketchup.<\/p>\n\n\n\n<p>Secondary Industries are of two types.<\/p>\n\n\n\n<p><strong>a) Manufacturing Industry<\/strong><br>These industries are engaged in transforming raw materials into finished products with the help of machines and manpower. The final goods may be capital goods or consumer goods. e.g. textiles, sugar, paper industry, etc.<\/p>\n\n\n\n<p><strong>b) Construction Industry<\/strong><br>These industries are engaged in the construction of buildings, dams, bridges, roads, tunnels, canals, metro, etc. In the case of other industries, goods can be produced at one place and sold at another place but goods made and sold by these industries are at one place. This is the only industry that creates immovable wealth.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">5) State the types of human activities.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>All human beings require different types of goods and services to satisfy their needs. So they<br>keep themselves busy and do some activity throughout their life. <br>All activities can be classified as economic and non-economic activities.<\/p>\n\n\n\n<p><strong>Non-Economic Activities<\/strong><\/p>\n\n\n\n<p>Non-economic activities are those human activities that are performed to satisfy personal, social, religious, cultural, and sentimental requirements without monetary expectations. For e.g. reading books, serving people, cooking by mother, etc.<\/p>\n\n\n\n<p><strong>Economic Activities<\/strong><\/p>\n\n\n\n<p>Activities that involve the production, distribution and consumption of goods and services for money or money\u2019s worth at all levels within a society are called economic activities. For e.g. worker working in a factory.<br>Thus, economic activities facilitate earning a livelihood.<br>Economic activities are divided into three types.<br>1) Business<br>2) Profession<br>3) Employment<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">6) Describe the scope of internal trade.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br><strong>Home Trade \/ Internal Trade<\/strong><\/p>\n\n\n\n<p>In this trade, buying and selling of goods and services take place within the geographical boundaries of a country. It uses local currency for the exchange of goods and services.<\/p>\n\n\n\n<p><strong>It is further divided as follows<\/strong>:<\/p>\n\n\n\n<p><strong>i) Wholesale Trade <\/strong><br>In wholesale trade, goods are purchased and sold in bulk. A wholesaler purchases in large quantities from the producers and sells in small quantities to the retailers. He is the link between the producer and the retailer.<\/p>\n\n\n\n<p><strong>ii) Retail Trade<\/strong><br>Retail trade is a business activity associated with the sale of goods to the final consumers. A retailer is the one who purchases from the wholesaler or sometimes directly from the producer and sells them in smaller quantities to the final consumer. The retailer is the link between the wholesaler or sometimes manufacturer and the ultimate consumer.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">7) How does banking and insurance help trading?<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>All those activities that facilitate the smooth flow of goods from manufacturing centers to the consumption centers are called aids to trade or auxiliaries to trade. These activities play a supportive role. They help in removing hindrances that arise during the production and distribution of goods and services.<\/p>\n\n\n\n<p><strong>Banking<\/strong><\/p>\n\n\n\n<p>We require money to start the business and to run it smoothly. Banks supply money. Adequate funds can be obtained from the bank. Bank provides loans, overdrafts, cash credit, etc. to businessmen. Banks also provide many services like cheques, drafts debit cards, credit cards, online transactions, etc. It helps the traders to carry out their business activities smoothly.<\/p>\n\n\n\n<p><strong>Insurance<\/strong><\/p>\n\n\n\n<p>There are various risks involved in the business. The goods may be destroyed while in the production process or in transit due to accidents or in storage due to fire or theft. The businessmen would like to cover these risks Insurance companies come to their rescue. <\/p>\n\n\n\n<p>They undertake to compensate for the loss suffered due to such risks. The businessman has to insure his goods and pay premium regularly. Risks cannot be avoided completely but they can be minimized by taking an insurance policy.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" target=\"_blank\" rel=\"noreferrer noopener\">Solution of other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-textbook-solutions\/\">Solution of all Chapters of OCM<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\">8<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q8_Answer_the_following\"><\/span>Q.8 Answer the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">1) Give a comparative analysis of business, profession, and employment.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"580\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1-1024x580.png\" alt=\"\" class=\"wp-image-22554 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1-1024x580.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1-300x170.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1-768x435.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1-1536x870.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-1.png 1678w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/580;\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"477\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2-1024x477.png\" alt=\"\" class=\"wp-image-22555 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2-1024x477.png 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2-300x140.png 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2-768x357.png 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2-1536x715.png 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2022\/07\/Give-comparative-analysis-of-business-profession-and-employment-2.png 1680w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/477;\" \/><\/figure>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\"><strong>2) Define business. Explain its features.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><br><\/mark><\/strong><\/strong>Business represents organized efforts by an individual or group of individuals. It is a systematic attempt by business persons to produce goods and services and sell them in the market, to reap the reward by way of profit. It satisfies multiple and complex needs of society.<\/p>\n\n\n\n<p><strong>Prof. Haney &#8211;<\/strong> \u201cBusiness activities are all those human activities which are directed towards the production and processing of wealth.\u201d<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">Features of Business <\/mark><\/strong><\/p>\n\n\n\n<p><strong>1) An Economic Activity<\/strong><\/p>\n\n\n\n<p>Business is an economic activity as it is undertaken to earn money or livelihood. It is not because of love, affection, feelings, sentiment etc.<\/p>\n\n\n\n<p><strong>2) Two Parties<\/strong><\/p>\n\n\n\n<p>Every business transaction involves an exchange. Minimum two parties are required for exchange i.e. the seller and the buyer. Business transaction is a result of an agreement between the buyer and the seller which may be oral or written.<\/p>\n\n\n\n<p><strong>3) Profit Motive<\/strong><\/p>\n\n\n\n<p>The basic purpose of business is to earn a profit from its activities. Businessmen try to maximize profits either by increasing the volume of sales or reducing its costs. It is the spine of business that keeps the business going on in the long term. The amount of profit may differ from business to business.<\/p>\n\n\n\n<p><strong>4) Production of Goods and Services<\/strong><\/p>\n\n\n\n<p>Before exchanging the goods and services, they should be produced by business enterprises. Goods are either manufactured or procured from the supplier, with the aim of selling it further to the consumers for profit.<\/p>\n\n\n\n<p><strong>5) Exchange of Goods and Services<\/strong><\/p>\n\n\n\n<p>Business involves transfer of goods and services directly or indirectly with money or money\u2019s worth. Monetary exchange is the exchange with money e.g. buying a notebook for cash. On the other hand in case of Barter Exchange goods and services are exchanged for some other goods and services. e.g. wheat is exchanged for rice.<\/p>\n\n\n\n<p><strong>6) Dealings in Goods and Services<\/strong><\/p>\n\n\n\n<p>Every type of business transaction is concerned with either goods or services. In the absence of goods and services business can not take place. These goods are consumer goods or capital goods. However, services created for business purposes are intangible which are essential for doing business e.g. transportation, banking, insurance etc.<\/p>\n\n\n\n<p><strong>7) Continuity in Dealings<\/strong><\/p>\n\n\n\n<p>Every business requires regularity in transactions. One single transaction does not constitute business e.g. If a person sells his own motor car and earns profit then it will not be considered as business activity. But if he is a car dealer so he sells and purchases cars regularly then, it is considered as business activity.<\/p>\n\n\n\n<p><strong>8) Uncertain Returns<\/strong><\/p>\n\n\n\n<p>In business, the returns are never predictable or guaranteed. Businessmen may earn a profit or suffer a loss.<\/p>\n\n\n\n<p><strong>9) Element of Risk<\/strong><\/p>\n\n\n\n<p>Risk is the key element of every business which is concerned with exposure to loss. It is due to some unfavorable or undesirable event. Every business will have some or other risk. The intensity of risk can be minimized but can\u2019t be avoided. Certain factors are beyond the control of businessmen like changes in consumer tastes, likes-dislikes, fashions, changes in the methods of production, fire, theft, natural calamities, etc. No business is free from the above mentioned factors.<\/p>\n\n\n\n<p><strong>10) Customer Satisfaction<\/strong><\/p>\n\n\n\n<p>Customer satisfaction is the ultimate aim of all economic activities and business is not an exception to it. The modern business believes in satisfying the customers by providing quality products and services at a reasonable price. The purpose of the business is to create and retain customers.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">3) Describe various objectives of a business.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>All business activities are guided by objectives. They are further classified as<\/p>\n\n\n\n<p>1) Economic Objectives<br>2) Social Objectives<\/p>\n\n\n\n<p><strong>1) Economic Objectives<\/strong><\/p>\n\n\n\n<p><strong>a) Earning Profit<\/strong><\/p>\n\n\n\n<p>Profit is required for survival of the business and for its growth.<\/p>\n\n\n\n<p><strong>b) Searching New Customers<\/strong><\/p>\n\n\n\n<p>Business organizations have to work hard to create new customers and also to maintain the existing customers.<\/p>\n\n\n\n<p><strong>c) Innovations<\/strong><\/p>\n\n\n\n<p>It is a development or positive change which results into improvement in product or process of production. It has to spend money on R&amp; D (Research and Development), market survey, use of technology etc.<\/p>\n\n\n\n<p><strong>d) Best Possible Use of Resources<\/strong><\/p>\n\n\n\n<p>Resources are scarce and have alternative uses. They should be used to its maximum and should not be wasted. Optimum use of resources ultimately leads to increasing profits.<\/p>\n\n\n\n<p><strong>2) Social Objectives<\/strong><\/p>\n\n\n\n<p><strong>a) Supplying Quality Products<\/strong><\/p>\n\n\n\n<p>Every business has to provide quality products to its customers. Quality means a combination of purity, safety, durability, utility etc.<\/p>\n\n\n\n<p><strong>b) Avoiding Unfair Trade Practices<\/strong><\/p>\n\n\n\n<p>Unfair trade practices like black marketing, misleading advertisements, wrong measurement etc. should be avoided. It is important for survival and growth of a business unit.<\/p>\n\n\n\n<p><strong>c) Employment Generation<\/strong><\/p>\n\n\n\n<p>Business is a socio-economic institution. Businesses should create jobs for skilled and unskilled people. It should provide employment opportunities to economically backward and divyang persons.<\/p>\n\n\n\n<p><strong>d) Welfare of Employees<\/strong><\/p>\n\n\n\n<p>Skilled and unskilled workers are part of society. So if employees are properly taken care of, it brings welfare to society. This can be achieved by providing fair and regular remuneration, good working conditions, impartial personnel policies, offering incentives, etc.<\/p>\n\n\n\n<p><strong>e) Help to Solve Social Problems<\/strong><\/p>\n\n\n\n<p>Due to rapid industrialization, many social problems arise like traffic jams, growth of slums, air and water pollution, etc. Businesses should be aware of this and should try to reduce them.<\/p>\n\n\n\n<p><strong>f) Contributing to the Welfare of the Society<\/strong><\/p>\n\n\n\n<p>The business houses should take care of the general welfare of society. For that they should give donations for good causes, offer scholarships for higher education, etc.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">4) Explain the <strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-accent-2-color\">importance of profit in business.<\/mark><\/strong><\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>Every business operates with an aim to earn profit which is the excess of revenue over cost.<br>Profit = Revenue &#8211; Total cost<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-contrast-color\">Following are the importance of profit in business:<\/mark><\/strong><\/p>\n\n\n\n<p><strong>1) Returns to Investors<\/strong><\/p>\n\n\n\n<p>The people who invest money in the business expect fair returns on their capital. This is possible if adequate profits are earned by the business.<\/p>\n\n\n\n<p><strong>2) Research and Development (R&amp;D)<\/strong><\/p>\n\n\n\n<p>Adequate profit enables a firm to spend more on R &amp; D . This can lead to better technology and lower costs. Innovative products benefit the whole nation.<\/p>\n\n\n\n<p><strong>3) Growth and Expansion<\/strong><\/p>\n\n\n\n<p>Retention of profit is the internal source of funds. This profit can be used for increasing the volume of business through expansion and diversification. The portion of the profit is re-invested in the business for further development.<\/p>\n\n\n\n<p><strong>4) Increases Efficiency<\/strong><\/p>\n\n\n\n<p>Profits facilitate payment of various dues in time. It also motivates the employees working in the organization. This finally leads to an increase in the overall efficiency of the organization.<\/p>\n\n\n\n<p><strong>5) Means of Livelihood<\/strong><\/p>\n\n\n\n<p>Businessmen earn profits which is their means of livelihood. By earning sufficient profits they can live a decent standard life through the satisfaction of various wants.<\/p>\n\n\n\n<p><strong>6) Reward for Risks<\/strong><\/p>\n\n\n\n<p>Profit is considered as a reward for assuming several business risks. Profits also serve as a protection against those risks which cannot be insured e.g. fall in demand, adverse government policy, etc.<\/p>\n\n\n\n<p><strong>7) Survival<\/strong><\/p>\n\n\n\n<p>It helps the business to continue to exist in the market. If the business does not make enough profit, it will not survive in the growing competitive environment. Profit means survival in a competitive environment.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"11th_OCM_Textbook_Solutions\"><\/span>11th OCM Textbook Solutions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Chapter Name <\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-2-exercise\/\">2) Trade<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-3-exercise\/\">3) Small Scale Industry and Business<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-ocm-chapter-4-exercise\/\">4) Forms of Business Organisation &#8211; I<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-5-exercise\/\">5) Forms of Business Organisation &#8211; II<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-6th-chapter-exercise\/\">6) Institutes Supporting Business<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-7-exercise\/\">7) Business Environment<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-ocm-chapter-8-exercise\/\">8) Introduction to Management<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Check_out_other_posts_related_to_11th_Commerce\"><\/span>Check out other posts related to 11th Commerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-notes-maharashtra-board\/\">Textbook Solutions of 11th Commerce (All Subjects)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-books-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/11th-commerce-books-pdf\/\"> Free PDF of 11th Commerce Textbooks <\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":22419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[5325],"class_list":["post-21865","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsc-maharashtra-board","tag-11th-ocm-chapter-1-exercise"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/21865","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=21865"}],"version-history":[{"count":11,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/21865\/revisions"}],"predecessor-version":[{"id":41120,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/21865\/revisions\/41120"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/22419"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=21865"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=21865"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=21865"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}