8th Std Social Science Notes.
by Veeresh. P
Business studies
EVOLUTION AND GROUTH OF COMMERCE
I Fill in the blanks with appropriate words in the following sentences:
1. The economic activity that provides technical or specialized personal services to the consumers is called ________
2. In olden days the goods were exchanged for goods, which were called ________ system of exchange.
3. The full responsibility of paper money vests with ______
4. The emergence of communities and villages took place during ______________ stage.
5. The main cause for International trade was _________
6. Trade and commerce contribute to the economic development of a country by paying __________ and ___________ to the government.
Ans: (1) profession (2) barter (3) Central Bank (4) agricultural
(5) geographical discovery (6) rates, taxes, duties.
II. Answer each of the following questions in 2 or 3 sentences:
1. What is an economic activity?
Ans: We need goods and services to satisfy our needs. Goods are produced by agriculture and industry. We require services too. The activities which are concerned with the production and exchange of goods and services are called economic activities.
2. Give the meaning of trade and Commerce.
Ans: Trade is the buying and selling of goods. On the other hand commerce includes trade and aids to trade or auxiliaries to trade. The aids to trade include transport, banks, warehouses, advertisement agencies, insurance, etc.
3. What is meant by Barter system of exchange?
Ans: In the early period of trade, barter system was followed. The goods produced were directly exchanged. The direct exchange of goods for goods or other things is called barter system of exchange.
4. What is a profession?
Ans: Profession is mainly concerned with rendering of specialized technical and personal services. Eg, lawyers, doctors, chartered accountants, etc.
5. 'What are aids to trade? Name them.
Ans: Commerce includes trade and aids to trade or auxiliaries to trade. These aids include transport, banks, warehouse facilities, advertisement agencies, insurance, etc.
6. What are craft guilds?
Ans: A body of professional craftsmen such as carpenters,
blacksmiths, weavers, builders came into existence. These professional groups formed the craft guilds. They carried on the production of goods in their houses and supplied to the agriculturists.
III. Answer each of the following questions in a paragraph:
1. How do production and exchange playa very important
role in our daily life?
Ans: The distribution of goods and services is called exchange. Exchange is the connecting link between production and
consumption. The goods produced at a place have to reach consumers at different places. During the course of production, the producers take into consideration, the market study, transportation, storage of goods, determination of price, advertisement, etc. All these aspects are included in the process of exchange of goods and services. The exchange system has become the foundation for business.
2. Explain the different types of economic activities.
Ans: Economic activities are broadly classified into three types. They are - (1) Business, (2) Profession and (3) Employment.
(1) Business- it is mainly concerned with production and
exchange of goods and services.
(2) Profession- it is mainly concerned with rendering of
specialized technical and personal services. Example-
lawyers, doctors, chartered accountants, etc.
(3) Employment- it is the work undertaken by the people
under an employer for salary or wages. Example-agriculture labourers, industrial labourers.
3. What are the difficulties of Barter system of exchange? How has money solved these problems?
Ans: The important problems of barter system of exchange are
(1) Lack of double co-incidence of wants-when two parties exchange goods with each other.
(2) Lack of common measure of value-it is very difficult to
decide the quantity of one commodity to another. E.g.- for one cow how many sheep to be exchanged.
(3) Difficulty of sub-division-it was very difficult to divide
some animals or things.
(4) Difficulty to store the goods or to transport-movement of goods from one place to another.
Money has solved the problem of barter system. Paper money is a token which generally comprises of bank notes issued by the central bank of the country.
4. Which are the important stages of economic evolution? Briefly explain anyone.
Ans: The important stages of economic evolution are as follows:
(1) Hunting and fishing stage,
(2) Pastoral stage,
(3) Agricultural stage,
(4) Handicraft stage,
(5) Barter system stage,
(6) Money Economy stage,
(7) Town Economy stage and
(8) International Trade stage.
(1) Hunting and fishing stage: It was the earliest human civilization. During this stage man was a wanderer. He moved in groups from one place to another in search of food. Man hunted animals for food. No economic activity existed during this stage.
BUSINESS - MEANING AND IMPORTANCE
I. Fill in the blanks with appropriate words:
1. The best example for Entrepot trade is ___________
2. Cottage industries are mainly concentrated in ________
3. The manufacture of chemicals is carried out in ________ industries.
4. The sole objective of business should be earning ______ profit.
5. To safeguard the quality of goods __________ institution has been started.
Ans: (1) Singapore (2) villages (3) small scale (4) reasonable
(5) Bureau of Indian Standard
II. Answer each of the following questions in 2 to 4 sentences:
1. Which are the different types of mobile shops?
Ans: Mobile traders do not have a fixed place to carryon their
trade. The important types of mobile shops are Hawkers,
Peddlers, Street vendors and Market vendors.
2. Who are wholesalers?
Ans: Wholesale traders buy goods in large quantity from producers and sell them to the retailers in small quantities. Generally, they deal with one or two types of goods.
3. Name the three types of foreign trade.
Ans: The three types of foreign trade and are (a) Import (b) Exports and (c) Entrepot.
4. Mention the important goods produced by cottage and
small scale industries.
Ans: Some of the important goods produced by cottage and small scale industries are carpentry, smithy, carpet, weaving, pottery, blanket making, stone carving, etc.
5. Which organizations overcome the hindrance of place
and risk?
Ans: To overcome the hindrance of place the service of transportation are used. Road transport, Railways, water transport and air transport are different media.
6. Mention the antisocial activities of traders to earn more
profit.
Ans: To earn more profits, some anti social practices are followed. They are adulteration, charging excess or abnormal rates, using false weights and measure, creating artificial scarcity by hoarding the goods and carrying out black marketing, etc.
7. What are the steps taken by the government to
overcome the antisocial practices in business?
Ans: The steps taken by the government to overcome the antisocial practices in business are-
a) The government has Public Distribution System.
b) To maintain the standard of goods and essential commodities. Bureau of Indian standard ISI and AGMARK marks are printed on commodities to certify their
quality.
I. Answer each of the following questions in 8 - 10 sentences:
1. What are the economic objectives of business?
Ans: The sale objective of business includes earning reasonable profit that is sufficient to enable the business to cover the costs and the business man lead a normal comfortable life. Business supplies goods and services to the consumers and thus creates consumers. It uses the available resources to produce the goods that are sufficient to consumers. It produces such goods that are required from time to time according to changes that take place. It brings changes in production by adopting new techniques. It also enables the consumers to know about the changes in products through advertisement.
2. What are the social objectives of business?
Ans: Business produces goods and supplies the goods that are
required for the development of a nation. It provides employment to many and pays them fair wages and salaries and helps them to improve their standard of living. Business contributes its share to the economic development of a nation by paying rates, taxes and duties. Business also contributes a fair share for the social welfare of the nation by starting and running of schools, colleges, hospitals and also by maintaining public gardens.
3. Mention the services rendered by retail traders.
Ans: Retailers carry out their trade at places where consumers Iive. They render various services to the consumers. Some of them are-
(a) They are the last connecting link in the distribution of
goods.
b) They supply variety of goods to meet the demand of
the consumers.
c) They store the goods to meet the demand of the consumers.
d) They take the risk of loss in business or loss of goods.
e) They grade the goods and supply according to the tastes of the consumers.
f) They provide credit facilities to the consumers; give more information about newly available goods in the market.
g) Suggest alternative goods if the particular goods' are not available.
4. List out the different retail traders and write two /three
sentences on each of them.
Ans: The important types of retailers are (a) Permanent shops and (b) Itinerant traders.
(a) Permanent shops: They are opened at a fixed place and
carry out trade.
b) Itinerant or Mobile traders: They do not have fixed place to carryon their trade. The important among them are -
(1) Hawkers- they carry goods on their heads, move from' door to door' and sell their goods, e.g. vegetables, fruits. (2) Street traders- they display goods in busy street corners and sell them to the consumers.
(3) Market sellers- weekly markets take place at villages or towns once in a week. The surrounding villagers bring the goods which they have grown or produced and sell them
5. Explain briefly the two types of Industries.
Ans: The two types of industries are- (1) Primary industries and (2) Secondary industries.
(1) Primary industries: These industries produce goods by
using the natural resources. E.g. agricultural, fishing, dairy farming, mining, etc. These industries are further divided as- (a) genetic industries and (b) extractive industries.
(a) Genetic industries are engaged in reproduction of different crops, plants and animals. E.g. horticulture, dairy farming, poultry fanning.
(b) Extractive industries- are engaged in extracting different raw materials and ores from the earth. E.g. extraction of ores, drilling of oil, etc.
(2) Secondary Industries: They are labour oriented industries. They are further divided into a) Manufacturing and b) Construction industries.
a) Manufacturing industries are engaged in converting raw materials or semi finished products into finished products. Eg- converting iron ore into steel.
b) Construction industries- are engaged in construction of roads, canals, bridges, etc.
6. What is the need for foreign trade to a country?
Ans: No country I in the world is self sufficient in all the natural resources. Some countries have plenty of natural resources. Using the available natural resources they produce more goods than they require and the excess is exported to other countries. In the same way some countries have deficit of some natural resources and, depend on other. Countries for their requirement and import them. Thus there is a great need for foreign trade. The need for foreign trade is increasing day by day. It also helps to foster friendship among the counties.
EMERGENCE OF DIFFERENT
FORMS OF BUSINESS ORGANISATIONS
I. Fill in the blanks in the following sentences with
appropriate words:
1. The concern that is owned and managed by a single person is called ___________
2. The Indian partnership Act was passed in the year
_____ to regulate the affairs of the partnership firms.
3. The Maximum number of partners in a firm which carries out banking business is ____________
4. The Head of the Hindu undivided family business is known as ___________
5. The only business concern under private business organization found in India is __________
Ans: (1) sole trading (2) 1932 (3) ten (4) Karta (5) Hindu undivided family business.
II. Answer the following questions in one or two sentences.
1. Which are the small scale business organizations?
Ans: Small Scale organizations under private sector are mainly
divided into three types. They are
a) Sole trading concern,
b) Partnership firm and
c) Hindu undivided family firms.
2. How do sole trading concerns help the consumers?
Ans: Sole trading concerns directly come into contact with the
consumers. They understand the likes and dislikes of the
customers and supply goods accordingly.
3. What are partnership firms?
Ans: In the partnership firms, two or more persons join together and carry out the business. The Partnership act defines the partnership firms as the relation between the persons to have agreed to share the profits of a business carried on by all or any of them acting for all.
4. Who are sleeping dormant partners?
Ans: The sleeping dormant partners contribute capital but, do not take active part in day-to-day transactions of the firm. The profits and losses are shared in proportion to their capital contribution.
5. How is the dissolution of partnership firm easy?
Ans: Partnership forms can be dissolved easily. An) partner can apply for dissolution by giving fourteen days notice or with the consent of all the partners it can be dissolved
III. Answer the following questions:
1. Mention any four merits of sole trading concerns.
Ans: The merits of sole trading concern are as follows:
1) No legal formalities are required to commence the business.
2) It can be started by own capital.
3) The owners enjoy all the profits and bear all the losses.
4) They directly come into contact with the consumer.
5) They render social service also.
2. Mention any four limitations of sole trading concerns.
Ans: The limitations of sole trading concerns are as follows:
1) Capital is limited and they cannot expand the business.
2) Since it is run by a single person the managerial ability is limited.
3) All losses are to be borne by a single person.
4) Life of the sole trading concerns may be short, with the death or insolvency of the sole trader.
3. How is partnership firms started? Explain briefly.
Ans: Partnership firm Act was passed in 1932. According to the section 4 of partnership act the partnership firm is defined as the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The maximum number of partners is fixed to ten if they carry out the banking business and twenty in case of carrying out general business.
4. Who are the different types of partner's?
Ans: The different types of partners are as fallows-
(1) Active partners- they take active part in carrying out
day-to-day affairs. They contribute fixed amount of
capital, and share profits and losses in proportion to their
capital contribution.
(2) Sleeping partners-they contribute capital but do not take active part in day-to-day transactions of the firm. The profits and losses are shared in proportion (0 their capital contribution.
(3) Nominal Partners- they neither contribute capital not
take active participation in day to day transactions of the firm. They are not entitled for any share in profit but are
liable for business losses.
(4) Minor partners- are those who have not yet attained
the age of 18 years. A minor cannot become a partner
but by mutual agreement of partners, he can be admitted
as a partner.
5. Mention any four merits of partnership firms.
Ans: Merits of partnership firms are as follows:
(1) Easy to form-no legal formalities are required for the
formation of partnership firm.
(2) More capital-Partnership is formed by more than two persons, so the capital investment is more.
(3) Better efficiency-Division of labour can easily be adopted so there is better managerial ability and efficiency.
(4) Credit worthiness-the liability of partners is unlimited so it leads to increase in credit worthiness.
(5) Sharing of business loss- the entire partners share the profit and loss.
6. Mention any four demerits of partnerships firms.
Ans: The demerits of partnerships firms are as follows:
(1) The disunity among the partners may hamper business and it leads to disputes.
(2) Since the' number of partners is limited, the capital
contribution is also limited.
(3) Liability is unlimited, so it discourages many people to
join as partners.
(4) Reckless and foolish decisions of some partners may lead to heavy setbacks.
(5) Partnership firms lack continuity, the death or insolvency of one partner may lead to dissolution.
7. What are the advantages of registering a partnership
firm?
Ans: The advantages of registering a partnership firm are as follows:
(1) A Registration firm can file a suit in the court of law
against third party. But it is not possible in case of an
unregistered firm.
(2) A registered firm can file a case against the other partners against the loans they owe to the firm.
(3) However third parties can file a case against an
unregistered firm for the recovery of loans.
(4) Any partner can file a case against the firm or other
partners for the dissolution of the firm or the settlement
of accounts.
8. Explain briefly about "Hindu undivided family business".
Ans: Hindu undivided family business: They are found only in India. They are in accordance with 'Hindu Law'. They are the firms which consist of all the male members of the Hindu family, descendants from a common male ancestor. Only three successive generations of male members namely sons, grandsons and great grandsons acquire the birth right or interest in the ancestral property. The eldest or senior most member of the family manages the business and he is called 'Karta'. The liability of Karta is unlimited.
LARGE SCALE BUSINESS
ORGANISATIONS
I. Fill in the blanks with appropriate words in the following
sentences:
1. The formation of co-operative societies is regulated as per The Indian Co-operative Act of ___________
2. The first co-operative society in the world was started by
____ in _____________(country).
3. The maximum number of members in cooperative
societies is _____________
4. The co-operative societies come into existence after receiving _________ from ___________
5. The first co-operative society was stated in Karnataka at _________
6. The first stage of the formation a Joint stock company is _________
7. The most important documents required to start Joint companies are __________ and ____________
8. The multinational companies were first started in
_________ (country).
9. The examples of multinational Companies with Indian origin are ____________ and ______________
10. The first share market was started in India at _________
Ans: (1) 1912, (2) Robert Owen, England (3) ten
(4) application, promoters (5) Kanaginahala in Gadag district (6) promotion (7) Memorandum of Association; Articles of association (8) USA (9) WIPRO, INFOSYS.
II. Answer the following questions:
1. Give four examples of public utility service companies.
Ans: Public Utilities are government undertaking but they are established to provide essential products or services to the Public. They do not intend to earn profits. Some of the public utility services are cooking gas, water, electricity, railways, posts, telegraph, etc.
2. Mention any six features or characteristics of cooperative Societies.
Ans: The features or characteristics of co-operative societies are follows:
(1) They are voluntary organizations
(2) The membership is open to all adults irrespective of
caste, religion, creed and gender.
(3) There is no limit for maximum membership.
(4) There is democratic, management. All the members attend the General Body Meeting and each member has one vote irrespective of capital invested (not less than 6.25%). Profit is distributed equally among all the members.
(5) They are registered organizations with government control.
(6) One portion of the profit is transferred to general fund.
3. Mention the different types of co-operative societies.
Ans: (1) Credit Co-operative societies
(2) Marketing Co-operative societies
(3) Producers Co-operative societies
(4) Consumers Co-operative societies
(5) Farmers Co-operative societies
(6) House building Co-operative societies
(7) Co-operative societies for different services such as -supply of drinking water, improvement of education,
etc.
4. List out the merits and demerits of co-operative societies.
Ans: Merits of Co-operative Societies: (1) It is easy to form
Co-operative societies. (2) There is no need for heavy
capitaI. (3) AII the members have equaled right and
responsibilities. (4) It runs on democratic principle. (5) Each member has one vote. (6) The liability of the members is limited. (7) They help the members to develop thrift (savings). (8) They are golden medium between capitalism and socialism.
Demerits of Co-operative Societies: (1) The societies have
limited capital resources, so large scale business is not
possible, (2) It is very difficult to get suitable staff. (3) There are chances of mismanagement and misuse of money, corruption and favoritism.
5. Which are the stages to formulate Joint Stock Companies?
Ans: The stages to formulate Joint Stock Companies are as
follows: (1) Promotion (2) Registration (3) Capital
subscription (4) Commencement of business
6. Mention the advantages of Joint stock companies.
Ans: The advantages of Joint Stock Companies are as follows:
(1) The liability of share is limited.
(2) There is no limit for share holders in the public limited
companies; hence there is a possibility of raising more
capital.
(3) The shares in public limited companies are freely
transferable. It encourages the public to come forward
or invest their money in companies.
(4) A Public Joint Stock company has a perpetual succession. The death or insolvency of any director or member does not lead to the dissolution of the company.
(5) It is possible to run large scale business.
(6) Large scale production helps for goods to be produced
at lower cost and can sell at competitive prices.
(7) The public limited companies provide employment to a large number of people.
(8) The companies contribute to the economic development of a nation by paying rates, taxes and duties to the government.
(9) Joint Stock companies help a country to earn foreign
exchange.
7. What 'are the advantages of multinational companies to
home country?
Ans: The advantages of multinational companies to home country are as follows
(1) They obtain raw materials from host countries.
(2) They may also obtain the technological and administrative skills from the host countries.
(3) They export raw materials and finished products to host countries thus their profit is more.
(4) It is possible to earn profit, royalty and through administrative agreement with host countries.
(5) They create more employment opportunities in the home country.
8. What are the important functions of stock exchanges?
Ans: The capital of a joint-stock company is divided into small
units called shares. The joint stock companies can also raise capital through issue of debentures. The share or debenture holders can sell and buy these shares and debentures at any time. For this purpose Stock exchanges are established. In India the first share market was started in 1875 at Mumbai and even today, it is one of the prestigious stock markets in the world. The other stock exchanges are secondary share markets. Only the shares and debentures of listed out Joint stock companies can enter into these stock exchange facilities to carry out their business through electronic media. All the stock exchanges are controlled by a Board called Securities Exchange Board of India (SEBI).
-@-@-
No comments:
Post a Comment