Sovereign Gold Bond Scheme Everything you need to know! 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. Financing the proposition: For every business, availability of capital or funds is an important factor while starting a business. (4) For Building prestige and Recognition: For gaining prestige in the Society, Business had to satisfy all the parties concerned. Explain any two business activities which are auxiliaries to trade. Every business is exposed to certain risks, these risks can either be due to natural factors, human factors, financial factors, or personal factors. To download Nature and Purpose of Business class 11 Notes, sample paper for class 11 Chemistry, Physics, Biology, History, Political Science, Economics, Geography, Computer Science, Home Science, Accountancy, Business Studies and Home Science; do check myCBSEguide app or website. (iv)Optimum utilization of resources: It refers to the best use of men, material, money and machinery employed in business. 7. This concludes the topic of Auxiliaries to Trade, which is an important topic of Business Studies for Commerce students. For example, the cement industry. Extractive industries: These industries provide some basic raw materials that are mostly products of the natural environment. 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. It is of two types. (ii) Export Trade: If goods are sold to other countries it is called export trade. Construction industries: These industries are involved in the construction sector, and it involves constructive works such as building dams, bridges , buildings,etc. it involves: It refers to the purchase of goods and services from other countries. For example, the cement industry. An overview of these activities is given below. Banking and Finance: Banks and financial institutions help drive the wheels of the trade. 5. What is Hundi? Advertisement Remove all ads. As they know that in case of good profits they will get good compensation for their efforts so it finally helps in increasing the efficiency of business. Launching the enterprise: After all these steps, a person can go ahead with starting a business. The people who are involved in trade are referred to as traders.. Trade can be bifurcated as: a. Download CBSE class 11th revision notes for Chapter 1 Nature and Purpose of Business class 11 Notes Business Studies in PDF format for free. It helps the businesses in making the customers aware about the product features that are instrumental in fulfilling the customer requirements. Brokers and agents may act as a crucial link between buyers and sellers. Hence, the product needs to be brought to the market. We indulge in multifarious activities in our daily lives. We indulge in multifarious activities in our daily lives. : Every business objective is to earn more and more profit in order to survive and also for growth purposes. explain the types of trade class 11 - phcontractor.com Communication enables easy interaction by one party with the another who are far away from each other. Storage and warehousing activities remove the hindrance of time by facilitating holding of stock of goods to be sold as and when required. 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). Topics. What is the name of Chapter 1 Class 11 Business Studies? Hence all the efforts of the businessman are directed towards the earning of sufficient profit. Any mistake in this can result in high losses to business. Commerce includes all the activities which are required for the exchange of goods and services. Buying and selling between the states. 7. 5. No business can survive without earning profit. The business objective is to ensure the welfare of employees by providing good working conditions, fair wages, and facilities such as housing, medical, etc. Ans. Activities which are meant for assisting trade are known as auxiliaries to trade. Provide safety to the product in terms of storage and packaging. Thus, banking helps business activities to overcome the problem of finance. MCQ Questions for Class 11 Business Studies Chapter 1 Nature and It can be a partnership firm, a sole proprietorship firm, a company etc. . Production or procurement of goods and services. MCQ Questions For Class 11 Business Studies Chapter 1 Business Trade Business is done to use raw materials to generate output, producing goods, and earning money. Also, read the importance of WPI and the difference between WPI and CPI. It embraces all those activities which are necessary for maintaining a free flow of goods and services. A teacher training his daughter at home. For Example social work, religious activities etc. Assembling industry: These industries bring together different components of various firms to form a new product. Download revision notes for Nature and Purpose of Business class 11 Notes Business Studies and score high in exams. This difficulty is removed by an important aid to trade known as Transport. He invests money in a business but tries his best to earn profit by using different strategies in a business. Concept of Business: Business refers to those economic activities involving the purchase production and / or sale of goods and services with a motive of earning profit by satisfying human needs in society. 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(ii) Generation of Employment: Now days, employment is the biggest problem of society. Pataliputra 2. Greater the risk involved in a business, higher is the chance of profit. Chapter 1 in Class 11 Business Studies is about Business, Trade, and Commerce. For Example, banking industry, transportation industry, communication industry, etc. Business should provide employment to more and more people living in the country. Answer: What are various aids to trade? Business Services class 11 Notes Business Studies - myCBSEguide To proceed with the manufacturing and business life cycle, there is a need to transfer these products or services to the end-user or intermediate consumers. : After all these steps, a person can go ahead with starting a business. 4. Construction, manufacturing etc. : These industries bring together different components of various firms to form a new product. There existed transfer of goods both within and outside the country, and the income received from such economic business activities were used for further investments. Analytical industry: These industries separate and bifurcate different elements from the basic material, so as to produce various by-products from the same element. [Answered] Explain. the auxiliaries to trade. - Brainly.in Solve questions and compare with the answers provided below. Auxiliaries to trade are also known as business services. Nature and Purpose of Business Class 11 Important Extra Questions Are you preparing for Exams? Hence, profit is the reward for risk taking. Explain the difference between Industry, Commerce, and Trade. Following are the characteristics of business risks. Hence, it requires transportation to deliver the products to the potential buyers. Given that students will be reading these for the first time, it becomes imperative that there is a clear understanding of the concepts from the very beginning. Its various aspects have been discussed in Chapter 1 Class 11 Business Studies Notes by Vedantu. 2.Construction industries: Industries that are involved in the construction of buildings, dams, bridges, roads as well as tunnels and canals. Communication is another important auxiliary component of trade, as communication is instrumental in the exchange of information between parties to a trade, which includes producers, traders and consumers. Business studies notes ch01 nature and purpose of business Processing industry: These industries are involved in the extraction and processing of resources and raw materials, so as to produce semi-finished or finished products. The common communication services are postal service, telephone, fax, internet etc. These include wholesalers, retailers etc. Various communication services including email, fax, mobile telephone services and the internet are helpful in facilitating trade. Risk is an essential part of every business: No business can avoid risk although the amount of risk may vary from business to business. Example- cattle breeding, poultry farms. 6. Banks provide the facility of credit for easy availability of funds for the business. The major categories are . 1. The economic objectives of business are follows: (i)Earning profit: Profit means excess of income over the expenditure. In such a situation, participating in Vedantu's online classes will be of considerable help in preparing this chapter. Various communication services including email, fax, mobile telephone services and the internet are helpful in facilitating trade. Every business in order to survive in a competitive environment should innovate its products or develop new ideas to tackle competition. Therefore, this is an essential factor determining the sales and profit earned by the company. People engaged in this sector are known as white-collar workers. It is further divided into four parts. The most important objective of a business is to establish a position in the market. : These industries are involved in the extraction and processing of resources and raw materials, so as to produce semi-finished or finished products. Rules set by the employer are to be followed. Profit earning : The primary objective of every business is to earn more and more profit. : It is a measure of efficiency. (iv) Warehousing: There is generally a time lag between the production and consumption of goods. 2. 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They are generally known as 'Services' since they . Banking removes hindrance of finance-by providing funds to a businessman for acquiring assets, purchasing raw materials and meeting other expenses. Proper selection of objectives is essential for the success of a business. Hence all the efforts of the businessman are directed towards the earning of sufficient profit. Production or procurement of goods and services: Business includes all the activities concerned with the production or procurement of goods & services for sales. If a person is optimistic about all the factors, he can open up his business on a large scale, and vice versa. Work is as per the contract and the rules of service. The businessmen always have multiple objectives. The various types of intermediaries in business as explained in Class 11th Business Studies Chapter 1 Notes are - (1) brokers and agents, (2) distributors, (3) retailers, (4) wholesalers and resellers. Profession: Includes those activities which require special knowledge & skills in the occupation. Indraprastha 4. Example: Consumers look for ISI mark on electrical goods, FPO mark on food products. Save my name, email, and website in this browser for the next time I comment. 2. Explain how. That is intra-state trade. It assists in curbing hindrances caused due to information. Any economic activity which involves doing work for someone else in consideration of money is termed as employment. 1. These are due to natural causes such as floods, earthquakes, etc. Even if you wish to have an overview of a chapter, quick revision notes are here to do if for you. For example: demand for a particular product may decline due to change in tastes preferences of consumers, or increase in competition etc. Those are (1) determination of the line of business, (2) deciding on the magnitude of the operation, (3) form and nature of ownership, (4) business location, (5) capital or financing options, (6) physical facilities necessary for business operation, (7) plan layout, and (8) engagement of the workforce. Human causes: These causes include unexpected events caused by man, such as negligence of employees, power failure, employees or customers dishonest practices etc. 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. It is drawn against dispatched goods. Business is an economic activity because the main aim of doing a business is to earn money. paper from bamboo, sugar from Sugar cane. Auxiliaries to trade | Nature and purpose of business | class 11 Transports, banking, insurance, warehousing, and advertising are regarded as auxiliaries to trade, i.e., activities playing a supportive role. Auxiliaries to trade | Aids to trade | Class 11 | Explained in English1.EXPLAIN VARIOUS TYPES OF AIDS TO TRADE. a. Concept Notes & Videos 634. : For every business, goodwill is the most important aspect to stand out from its competitors. CBSE quick revision note for class-11 Mathematics, Physics, Chemistry, Biology and other subject are very helpful to revise the whole syllabus during exam days. To get started, download the app now! Primary Industry: The primary industry includes those activities through which the natural resources are used to provide raw material for other industries Primary industries are of two types. Degree of risk depends mainly upon the nature and size of business: Level of risk is lower for small scale business while it is higher for large scale organization. One may require reference materials beyond the regular text. Starts after completing some legal formalities if needed. Auxiliaries to Trade :- All those activies which help in removing various hindrances which arise in connection with the production and distribution of goods are called auxiliaries to trade. 4. Students should understand the concepts clearly to score high marks. Service sector includes commercial firms engaged in banking . Revising notes in exam days is on of the best tips recommended by teachers during exam days. (i) Transport and Communication: Production of goods . Class 11 Business Studies Ch 1 Notes introduce new concepts to students about business, trade and commerce. There are various advantages of having auxiliaries to trade as they help strengthen its internal and external connections. Such welfare activities help to improve the physical and mental health of workers. To make people buy these products, there is the requirement for verbal or promotional conversation to know about the features and quality of the product. Advertising and Public Relations: It helps them to increase the sales and widen the customer base by promoting business products or services at a wide spectrum. Trade | Auxiliaries to trade | Objectives of Business | class 11 | business studies | Ch 1 | ep-03 | Bhai Ki Padhai Commerce Classification of business . People start big or small businesses depending on the amount of money they have. Identify the incorrect one (a) Loss is the reward for risk bearing (b) Business risks are due to uncertainties (c) Risk is an essential component of every business (d) Degree of risk depends mainly upon the nature and size of business Not only for survival but it is also required for growth and expansion of business. Primary activities relate to production or extraction of natural resources; Secondary activities pertain to processing or raw materials such as manufacturing; Tertiary activities offer service facilities. HOME TRADEHOME TRADE The purchase and sale of goods inside the country is called home trade also known domestic local' or 'internal trade' 5. The explanations of these may be found in Business Trade And Commerce Class 11 Notes. 2. Distributors are particularly common in the case of manufacturing companies, positioned between a wholesaler and the company. An overview of these activties is given below. Business, trade and commerce Business An occupation in which people regularly engaged in activities relating to purchase / production and sale of goods and services with a view to earning profits. It can be: Buying and selling within a single state. 6. 3. Extractive Industry refers to those industries under which something is extracted out of the earth, water or air e.g., coal, iron, gas etc. Size of Business: Every person has to decide whether it wants to operate on a large scale or at a medium scale. Selecting the line of business: The first thing to be decided by the entrepreneur is the line and type of business to be undertaken. Warehousing: Usually, goods are not sold or consumed . That is Inter-state trade. These will help you a lot to understand all the important topics given in your NCERT Class 11 Business Studies textbook. Secondary activities involve a direct transformation of raw materials into marketable products. 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. Along with transport communication is also an important service. Question. Auxiliaries to trade refers to the factors that are essential for bringing the goods from the place of their production to the place of their consumption. But, the main purpose of doing a business is to earn money or profit. In some businesses, people offer a wide range of services. Risk is an essential part of every business. It involves teamwork to achieve goals. The type of risks that can occur in a business can be fire, accident, theft or damage to equipment or products. Business Risk: Business risk refers to the possibility of inadequate profits or even losses due touncertainities or unexpected events. It assists in curbing hindrances of persons. Types of Economic Activities Economic activities can be divided into three categories Business Profession Employment 3. 2. Write the objectives of Business Class 11 Chapter 1? it involves: Imports: It refers to the purchase of goods and services from other countries. : Business consists of sale or exchange of goods and services with the primary objective of earning money. Business, Trade and Commerce. Transportation helps in the movement of raw material and finished products from the place of production to the place of consumption. 2. Advertising creates awareness about the product or service which converts into sales. 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. If a person is optimistic about all the factors, he can open up his business on a large scale, and vice versa. 4.Profit is the reward for risk taking: A business gets profit as return for undertaking risk. It is dependent upon the type and size of business. Hallmark on Jewellery. Also there is always a possibility of losses. This article offers economic study materials and notes. Non Economic activities: Activities which are performed out of love, affection, sympathy, etc , and without the aim of earning profit are called non economic activities. 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. 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.