Revising notes in exam days is on of the best tips recommended by teachers during exam days. All these activities are regulated and managed by one of the auxiliaries used to trade the products. Proper planning and training should be done for hiring employees at the right position and at the right time and cost. Competent and committed workforce: Every business needs competent workforce to run its business operations smoothly. (i) Avoidance of Anti-Social and Unfair trade practices: Anti-Social practices include hoarding, black marketing and adulteration. 4. : These industries do breeding of plants and animals for their use in further reproduction. The economic objectives of business are follows: (i)Earning profit: Profit means excess of income over the expenditure. : In business there should be transfer or exchange of goods or services for value. It earns profit by selling its products or services to members of society. a. Availability of machines, equipment, building is also considered while starting a business. In this way, the complete cycle of processing and consumption ends. Risk is an essential part of every business: No business can avoid risk although the amount of risk may vary from business to business. Plant layout: Showing the physical arrangement of machines and equipment needed to manufacture a product. No business can survive without earning profit. The extent of physical facilities depends upon the nature and size of business and availability of funds. 2. Therefore, this is an essential factor determining the sales and profit earned by the company. (iii)Innovations: Innovation means making new products or adding new features of old products for making it more useful, improving methods of production & distribution exploring new markets, etc. Download our apps to start learning, Call us and we will answer all your questions about learning on Unacademy, Access free live classes and tests on the app. 1. The trading unit connects the global market and the business sector, where one uses the end products generated by the other. The buying and selling of goods and services with an aim to earn profit is termed as trade. Human activities are classified into Economic & non-economic activities. : It's another important factor while starting a business. Auxiliaries to trade | Aids to trade | Class 11 | Explained in English1.EXPLAIN VARIOUS TYPES OF AIDS TO TRADE. It includes organised activities and efforts of groups or individuals in selling definite services and goods with a profit objective. Brokers and agents may act as a crucial link between buyers and sellers. Synthetical industry: These industries bring together materials and ingredients from varied sources and combine them to form a new product. Secondary activities involve a direct transformation of raw materials into marketable products. Goods may consist of consumable items. As a result, a business either manufactures the goods on its own or purchases them from producers, and then sells them to end customers. It assists in curbing hindrances of risk. A person can enter primary, secondary or tertiary industry, based on the possibility of profit, demand, customer preference etc. Banking and finance: It helps business activities to overcome the problem of finance by lending loans and credit facilities since business can't survive if funds are not available for procuring material. (i) Analytic: Different things are manufactured out of one material e.g., petrol, diesel, gasoline out of crude oil. This decision depends upon the size, scale and type of business activities he wants to carry on. It involves teamwork to achieve goals. Economic Activities: Economic activities are any activities that are carried out with the goal of earning money and livelihood. 2. Hence all the efforts of the businessman are directed towards the earning of sufficient profit. Social responsibility: Every business must work in a socially desirable manner and contribute some resources for solving social problems. 6. Every business must aim at increasing its productivity through the efficient use of resources. It assists in removal of the hindrance cause due to finance. Profession: Includes those activities which require special knowledge & skills in the occupation. The most important objective of a business is to establish a position in the market. People involved in a business will spend money for buying raw materials and to produce finished products. Before taking this decision he must find out availability of raw materials, power, labour, banking, transportation etc. Business Risk: Business risk refers to the possibility of inadequate profits or even losses due touncertainities or unexpected events. (i) Manufacturing - These industries convert raw materials or semi-finished products e.g. 5. Productivity: It is a measure of efficiency. silver creek opening day 2021; lightweight summer vest with pockets; restaurants near horseshoe casino bossier city. Question Bank Solutions 10345. Ans. This objective can be achieved by reducing wastages and making efficient use of machines and equipments, human resources, money etc. These industries are concerned with further processing of the material extracted at the primary sector so as to convert them into a finished product. Foreign trade 4. Also, read the importance of WPI and the difference between WPI and CPI. Advertising: Advertising is a very essential auxiliary to trade as it helps in the promotion of the goods and services. In these days of competition, a business can be successful only when it creates new designs, better machines, improved techniques, new varieties etc. For Example social work, religious activities etc. For example, petrol, diesel etc all are made from one basic material that is crude oil. Therefore, the activities include farming, forestry, fishing, quarrying, mining etc fall under the primary sector. document.getElementById("ak_js_1").setAttribute("value",(new Date()).getTime()); Nature and Purpose of Business class 11 Notes Business Studies, Forms of Business Organisation class 11 Notes Business Studies, Private, Public and Global Enterprises class 11 Notes Business Studies, Business Services class 11 Notes Business Studies, Emerging Modes of Business class 11 Notes Business Studies, Social Responsibilities of Business and Business Ethics class 11 Notes Business Studies, Small Business class 11 Notes Business Studies, Internal Trade class 11 Notes Business Studies, International Business class 11 Notes Business Studies, Sources of Business Finance class 11 Notes Business Studies, Social Responsibilities of Business and Business Ethics Class 11 Notes Business Studies, CBSE Internal Assessment Marks Distribution, CBSE Class 12 Hindi Elective Syllabus 2022-23, CBSE Class 12 English Core Syllabus 2022-23, CBSE Class 12 English Elective Syllabus 2022-23, CBSE Class 12 Accountancy Syllabus 2022-23, CBSE Class 12 Biotechnology Syllabus 2022-23. Business Studies Class 11 Notes Chapter 1 An Overview of the Chapter, Chapter 1 Class 11 Business Studies Notes Overview, Economic Activities are Further Divided Into, Occupation of selling services or goods having profit objectives, Paid occupation requiring formal qualification and prolonged training, Chapter 1 in Class 11 Business Studies is about Business, Trade, and Commerce. Location of business enterprise: It's another important factor while starting a business. : Business consists of sale or exchange of goods and services with the primary objective of earning money. Transport and communication Banking and finance Insurance Warehousing Advertising Objectives of Business Comparison of Business , Profession and Employment. He serves as a connecting link between the producer and retailer. myCBSEguide provides sample papers with solution, test papers for chapter-wise practice, NCERT solutions, NCERT Exemplar solutions, quick revision notes for ready reference, CBSE guess papers and CBSE important question papers. Transport and Communication: Transportation helps in the movement of raw material and finished products from the place of production to the place of consumption. Are you preparing for Exams? It also involves all the activities that assists in removal of hindrances of people, place, time, finance, risk, information faced during the exchange of goods and services. Choice of form of Business organization: The next decision must be taken is to finalize the form of business i.e., to set up sole proprietorship., partnership or joint stock company. Physical facilities: include machinery equipment building etc. Example, Mining of iron ore. a. These revision notes and important examination questions have been prepared based on the latest Business Studies books for Class 11. Indian firms may import some goods from America and export the service to Nepal . WPI represents the change in commodities prices at the wholesale level. These include wholesalers, retailers etc. Hundi: It is an instrument of exchange used in old times which involved a contract that warrants the payment of money, a promise or order which is unconditional, and can be exchanged through transfer by valid negotiation. The first chapter gives detailed information about business and its features. In this chapter, students will study the different aspects of the business. Economics is described as the "study of how societies utilise limited resources to produce valued commodities and divide them among individuals. Warehousing: Warehousing helps to store the goods safely. : In every business enterprise before the consumption, production takes place. Its various aspects have been discussed in Chapter 1 Class 11 Business Studies Notes by Vedantu. Revising notes in exam days is on of the best tips recommended by teachers during exam days. e.g., production of goods in 8 factory, distribution of goods by a wholesaler or retailer. Any economic activity which is carried out by a person with specialised knowledge and skills in order to serve society is called profession. To explain the auxiliaries to trade, various factors need to be highlighted to understand the importance of balance between trading units and manufacturing companies. Business Studies Class 11 Notes Chapter 1 elaborate a host of factors that have to be given due consideration before setting up a business. A wholesaler buys goods in large quantities from the producers and sell them to other dealers. The location of business is dependent on the easy availability of raw materials and labour, banking services, transportation services nearby etc. It is classified into two categories: 1. It includes farming, mining, etc. For example, different components of various industries are brought together to assemble them and convert it into a television, computer, car etc. Importing goods and services from one country and exporting to some third country. National Trade: Buying and selling between the states. 1. (2) For growth & Expansion: All businessmen want their business to expand and to grow. The manufacturing centres are located on the outskirts of any location. We indulge in multifarious activities in our daily lives. The following are some important aids or auxiliaries to trade in an economy according to nature and purpose of business class 11 notes. 7. Genetic Industry refers to those industries under which the breed of animals and vegetables are improved and made more useful e.g., poultry farms, dairy farming, fish hatchery, cattle breeding etc. Activities which are meant for assisting trade are known as auxiliaries to trade. (iv) Warehousing: There is generally a time lag between the production and consumption of goods. The explanations of these may be found in Business Trade And Commerce Class 11 Notes. Business Studies Class 11 Ncert Chapter 1 discusses the following topics . such welfare facilities help to improve physical and mental health of employees. Production of goods for the purpose of personal consumption is not termed as business. Mathura 2. For Example, banking industry, transportation industry, communication industry, etc. Warehousing: Warehousing refers to the process of stocking of goods so that it can be delivered to customers effectively. Profit Earning: The main purpose of business is to earn profit. They dont have much storage space. Hence, profit is the reward for risk taking. Every business has to handle both losses as well as profits. If a person is optimistic about all the factors, he can open up his business on a large scale, and vice versa. No business can survive without earning profit. 2. Question. (ii)Market standing/creation of customer: Business can survive for a longer period only if is able to capture a big share in the market & has market standing. Construction industries: These industries are involved in the construction sector, and it involves constructive works such as building dams, bridges , buildings,etc. Selection of type of business: First step is to decide the nature and size of business which person wants to do. They are regarded as the financial backbone of the trade. Natural causes: These are due to natural causes such as floods, earthquakes, etc. : Every business objective is to earn more and more profit in order to survive and also for growth purposes. Types of Economic Activities Economic activities can be divided into three categories Business Profession Employment 3. What are various aids to trade? For example selling your old books, or furniture and purchasing a new one is not termed as business. : Because of increasing tax laws in the country every business has to do proper tax planning in advance to save itself from any problem in future. Required fields are marked *. Those are quaternary activities and quinary activities. If you would like to contribute notes or other learning material, please submit them using the button below. That is Inter-state trade. Auxiliaries to trade assists the buying and selling of the goods and services by removing the hindrances of place, people, time, finance, risk and information. Dealing in goods & services at a regular basis: There should be regularity of dealings or exchange of goods & services. 5. For Example social work, religious activities etc. (c) Auxiliaries to trade (d) None of these Answer Question. Answer. It is further divided into four parts. (5 MARKS)ANSWER: Trade or exchange of goods a. Types of home tradeTypes of home trade Wholesale trade Retail trade 6. It depends upon customer requirements in the market and also the knowledge that person has about the product. All the concepts of Chapter 1 of Class 11 Business Studies are explained in brief in Vedantus Revision Notes. An auxiliary to trade is a crucial element to enter the product in the market and expand a companys business. Drawer bears the costs if goods get lost in transit. For instance, tea is mainly produced in Assam; cotton in Gujarat and Maharashtra; jute in West Bengal and Orissa and so on. Business activities can be divided primarily into economic activities and non-economic activities. What is the name of Chapter 1 Class 11 Business Studies? Economic causes: They are related to a chance of loss due to change in market condition e.g., fluctuations in demand and prices, competition, change in technology etc. Do you need help with your Homework? 4. Communication enables easy interaction by one party with the another who are far away from each other. Analytical industry: These industries separate and bifurcate different elements from the basic material, so as to produce various by-products from the same element. It is further divided into following categories: It includes all those activities which are concerned with the extraction and production of natural resources and development of plants, etc. The manufacturing units are only responsible for the manufacturing of products. Transportation makes it possible to reduce the time taken for connecting two different geographical locations. An economic activity: Business in considered as an economic activity because it is undertaken with the objective of earning money. Revision Notes for Class 11 Business Studies Download as PDF CBSE Class 11 Business Studies Revision Notes Chapter 1 Nature and Purpose of Business ECONOMIC AND NON ECONOMIC ACTIVITIES All Human beings have different types of needs. Warehousing: Usually, goods are not sold or consumed . Auxiliaries to trade are also known as business services. Physical and financial resources: Every business enterprise must acquire physical resources like land,plant and financial resources like funds according to their requirements and use them efficiently. This categorisation presents each auxiliary briefly and provides a detailed description of its requirements. Human Causes: Human causes include such unexpected events like dishonesty, carelessness or negligence of employees, strikes, riots, management inefficiency etc. 1. The terms and conditions of services contract are to be allowed. Every person has little control or no control over these causes. It embraces all those activities which are necessary for maintaining a free flow of goods and services. Not only for survival but it is also required for growth and expansion of business. He invests money in a business but tries his best to earn profit by using different strategies in a business. It can be: Buying and selling within a single state. Pataliputra 2. Greater the risk involved in a business, higher is the chance of profit. A business cannot service without earning profit. Business is an integral part of society. Business should not indulge in such practices. (iii) Synthetic: Many raw materials are mixed to produce more useful product e.g., paints, cosmetics, cement. As a result, a business either manufactures the goods on its own or purchases them from producers, and then sells them to end customers. 1. Advertising removes hindrance of information-by informing consumers about the goods and services available in the market. Nature of business means the type of business done by an individual. The internal auxiliaries for the trade of any product or service include: The external auxiliaries for trading units define the overall layout of the business sector for the promotion and management of their product in the market. All objective may be classified into two broad categories. Auxiliaries to trade help in the removal of hindrances in the process of exchange:-. These industries provide some basic raw materials that are mostly products of the natural environment. Get all the important information related to the CBSE Class 11 Exam including the process of application, important calendar dates, eligibility criteria, exam centers etc. Any economic activity which involves doing work for someone else in consideration of money is termed as employment. They were used:- -As remittance instruments (to transfer funds from one place to another), -As credit instruments (to borrow money), -For trade transactions (as bills of exchange). All the concepts of Chapter 1 of Class 11 Business Studies are explained in brief in, The most important objective of a business is to establish a position in the market. (4) For Building prestige and Recognition: For gaining prestige in the Society, Business had to satisfy all the parties concerned. it involves: Imports: It refers to the purchase of goods and services from other countries. The businessmen always have multiple objectives. Class 11 Business Studies Ch 1 Notes introduce new concepts to students about business, trade and commerce. Removing the hindrance of person by marking goods available toconsumers from the producers. (iii) Enterpot: Where goods are imported for export to other countries e.g. Economic causes: The economic causes involve the changes and variations taking place in the economy such as uncertainties due change of technology and method of production,political disturbances, change in prices, tax rates etc. Banks provide the facility of credit for easy availability of funds for the business. Any economic activity that is undertaken regularly and continuously to satisfy the societal needs as well as to earn profit through the mechanism of sale and purchase of goods and services is called a business. So, in order to fulfill those needs they have to perform some or the other activity. It assists in removal of the hindrance cause due to place. For development of business additional capital is needed. 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