Business Studies for Class 11 Chapter 1 Nature and Purpose of Business Index Terms

Learn CBSE Business Studies Index Terms for Class 11, Chapter 1 Including Definitions and Meanings

1. Business – Business is concerned with an occupation where individuals consistently participate in financial and economic activities connected with the creation, production, and provision of services and products with the intention of procuring benefits and profits by fulfilling the needs and requirements of the consumers.

2. Profession – A profession is a focused group of people who stick to moral guidelines and who hold themselves out as and are acknowledged by the general population as having unique information and abilities. In a broadly perceived group of learning obtained from exploration, schooling, and preparing at a high level. These individuals or a group are ready to apply this information and exercise these abilities and skills for the sake of other people.

3. Employment – Employment in business is the occupation where individuals work for other people and receive compensation consequently. The people who are employed by others are known as business representatives and employees, and these workers are recruited by businesses and employers. For example, Any individual working for others on a compensation or salary basis, who could be an Accountant, Sales Manager, Assistant, and so forth.

4. Industry – The industry is a category of active enterprises and organisations which produce or sell products, services, or sources of revenue. Industries are commonly categorised in business as the primary industry, secondary industry, and tertiary industry.

5. Primary Industries – The essential or primary sector of the Indian economy is principally founded on the accessibility of natural resources or assets. The products produced by this sector are generally dependent on the accessibility of normal assets or natural resources. Natural assets are likewise needed for the execution of specific processes in this area or sector. Every service in this sector is totally subject to the presence of adequate regular or natural assets just to maintain the necessary everyday tasks.

6. Genetic Industries – Under the primary industries, genetic industries are included. These industries include all the production of raw materials, which can be enhanced by human involvement in the development process.

7. Secondary Industries – The secondary industry is the sector of the Indian economy that is subject to natural ingredients. These normal or natural ingredients are utilised to produce the services or products that are offered to consumers. These items are dated for utilisation toward the end. This sector is the best sector as far as worth or value-added products and services. The most unmistakable illustration of this area is transportation and assembling.

8. Manufacturing Industries – The industry where the goods are produced in large quantities after processing from raw materials to more valuable products is called the manufacturing industry. Manufacturing industries are sub-categories of secondary industries.

9. Analytical Industries – Analytical industries are those where natural resources and raw materials are broken down into various useful products. For example, oil refineries separate crude oil into petrol, diesel, kerosene, and gasoline.

10. Synthetical Industries – Synthetic industries are those that add two or more raw materials to form a new product. For example, the cement industry uses coal, gypsum, concrete, and plastics.

11. Processing Industries – Processing industries are concerned with processing raw materials in various stages of production. For example, steel industries and textile industries.

12. Construction Industries – Construction industries are an important part of a nation’s economy as it helps in building the overall infrastructure. These industries work together to construct roads, bridges, buildings, dams, tunnels, and fly-overs.

13. Tertiary Industries – The tertiary business is the service sector of an economy, including clinical suppliers, instructors, monetary administrations, hairstyles, and fitness coaches, among numerous others. The tertiary sector can be partitioned comprehensively into non-profit and profit segments.

14. Commerce – Commerce is referred to as an economic activity that involves the exchange of goods and services or valuables between two entities. It involves purchasing goods and services from large organisations. Commerce mainly deals with transactions taking place between nations.

15. Trade – Trade is referred to as a basic economic activity that involves buying and selling different goods and services between two or more parties involved in the transaction. Trade that takes place between two parties is called bilateral trade, while the same occurring between more than two parties is called multilateral trade.

16. Internal Trade – Internal trade is defined as buying and selling of products and services within the geographical boundaries of a nation. So the trading that happens within a country’s limit is known as internal trade. In this trading, no import or customs duty is imposed because these goods and services are produced and consumed domestically. Internal trade is categorised into two different sections, a) wholesale trade and b) retail trade.

17. External Trade – External trade is referred to as a trade that involves buying and selling of goods between two parties located in different countries or between two different countries.

18. Auxiliaries to Trade – Auxiliaries to trade and exchange allude to the variables that are fundamental for bringing the merchandise or products from the spot of their manufacturer to the spot of their utilisation. In direct words, these are fundamental functions and services that help the business.

19. Transportation – Transportation is a way of movement of human beings and goods from one place to another. The use of transportation depends upon one’s need to move things from the place of their availability to the place of their use. Human beings use various methods to move goods, commodities, and ideas from one place to another. The four major means of transport are roadways, railways, waterways, and airways.

20. Communication – Communication is a process that involves sending and receiving messages through verbal and non-verbal methods. The sender sends a message, and the receiver receives the message and sends it back with feedback to the sender again. The methods of communication involve oral and speech communication and written and graphical representations. Additionally, it includes the cultural sphere, a tool utilised to communicate, location, etc. Though it looks simple, communication is generally a very complicated subject.

In other words, communication is a two-way means of communicating information in the form of thoughts, opinions, and ideas between two or more individuals with the purpose of building an understanding.

21. Banking – Banking is directly or indirectly connected with the trade of a country and the life of each individual. It is an industry that manages credit, cash, and other financial transactions. In banking, the commercial bank is the most influential institution for any country’s economy or for providing any credit to its customers.

22. Insurance – Insurance policies provide protection against the various types of uncertainties that can occur in the life of an individual. Having health insurance can help people cover up the expenses paid for any diseases, while accident insurance can help them in getting cover for any kind of accidents that may occur.

23. Warehousing – Warehousing was initially viewed as a provision of static units for keeping and storing goods in a scientific and systematic manner so as to maintain their original quality, value, and usefulness, but now it is viewed as a logistical service provider of the right quantity, at the right place, in the right time, in the right physical form at the right cost.

24. Advertising – Advertising is a marketing strategy that includes paying for space to showcase and promote a cause, service, or product. Genuine promotional messages are called ads for short or advertisements. The objective of carrying out advertising is to contact individuals probably going to pay for an organisation’s goods and services and captivate them to purchase.

25. Business Risk – The term business risk deals with the chance and possibility of a business making insufficient gains because of vulnerabilities and uncertainties, for instance: changes in preferences, changing preferences of customers, lock-outs and strikes, extreme competition, changes in government policy, obsolescence, and so forth.

26. Pure Risk – Pure risk is a class of chance that can’t be controlled and has two results: complete misfortune or no misfortune by any means. There are no opportunities for gain or benefit when pure risk is included.

Pure risk is, for the most part, pervasive in the circumstances like catastrophic events, death, and fires. These circumstances can’t be anticipated and are unchangeable as far as anybody might be concerned. Pure risk is also known as absolute risk.

27. Subsidised Risk – The preventive measures adopted to reduce or minimise the business risk either temporarily or permanently, and allowing the company to face little or no loss from its economic activities is called subsidising risk.

We hope that the offered Business Studies Index Terms for Class 11 with respect to Chapter 1: Nature and Purpose of Business, will help you.

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