📖 Chapter Summary: Introduction of Commerce and Business

Commerce and business are vital parts of our everyday life. The chapter starts with an example-based discussion among students and their counselor, introducing the ideas of economic and non-economic activities.

🔹 Non-Economic Activities

These are activities done without any monetary gain, like helping a friend, cooking for family, or reading for joy.

🔹 Economic Activities

These include business, profession, and employment, where a person does work to earn money.

• Business: Involves production, distribution, and sale of goods/services to earn profit.
• Profession: Specialized services like doctor, CA, lawyer for a fee.
• Employment: Work under someone for salary or wages.

🔹 Objectives of Business

• Economic: Earning profit, acquiring customers, innovation
• Social: Supplying quality products, avoiding unfair trade, employee welfare, solving social issues

🔹 Role of Profit

Profit is necessary for:

• Growth
• R&D
• Risk reward
• Reputation
• Continuity of business

🔹 Classification of Business

1. Industry:

• Primary (Agriculture, Mining)
• Secondary (Manufacturing, Construction)
• Tertiary (Services like banking, tourism)

1. Commerce: Distribution of goods and services through:

• Trade (Home and Foreign)
• Auxiliaries to Trade (Transport, Warehousing, Banking, Insurance, Advertising)

❓ Question & Answer (Competitive/School Level)

🔸 Q1: What is an Economic Activity?

Ans: Any activity done with the aim of earning money or livelihood is called an economic activity.

🔸 Q2: Name any two non-economic activities.

Ans:

1. A mother cooking for her child
2. A person planting trees for environmental care

🔸 Q3: Define Business.

Ans: Business is an economic activity involving the production and distribution of goods and services to earn profit.

🔸 Q4: Distinguish between Business and Profession (Any 2 points)

BusinessProfessionProfit-orientedService-orientedNo minimum qualificationRequires special education

🔸 Q5: State any two features of Employment.

Ans:

1. Fixed salary or wages
2. Work under an employer with agreed conditions

🔸 Q6: What is meant by Auxiliaries to Trade?

Ans: Activities like transport, warehousing, and advertising that help in smooth movement of goods and services are called auxiliaries to trade.

🔸 Q7: Mention two objectives of business.

Ans:

1. Earning profit
2. Supplying quality products to society

🔸 Q8: Define Industry. Give its two main types.

Ans: Industry involves the production of goods/services. Types:

• Primary Industry (like Agriculture)
• Secondary Industry (like Manufacturing)

🔸 Q9: Explain any two roles of profit in business.

Ans:

1. Profit is a return on investment for business owners
2. It helps in expansion and growth of business

🔸 Q10: List any four Auxiliaries to Trade.

Ans:

1. Transport
2. Warehousing
3. Banking
4. Insurance