Moving ahead with our nature and purpose of business class 11 notes, various business activities can be classified into 2 categories:. As explained above in the definition of commerce, let us now understand some of the important functions of commerce as per our nature and purpose of business class 11 notes. The functions of commerce help in removing the following hindrances such as:.
Let us now move on in this blog on nature and purpose of business class 11 notes further by classifying commerce into different categories. As per the chapter of Nature and Purpose of Business Class 11, commerce can be classified into 2 categories:. The following are some important aids or auxiliaries to trade in an economy according to nature and purpose of business class 11 notes. Objectives are needed in every area that influences the survival and prosperity of business. Hence the main objectives of a business are:.
As we have studied above, business risk is an important factor or an important element of the business. It will always remain a part of it till the time business exists. The nature of business risk is as follows:. According to the nature and purpose of business class 11 notes, there are 4 main causes of business risk. These are:. Here is the list of major factors that are required to commence or start a business. These factors are:. This brings us to the end of this blog on Nature and Purpose of Business Class 11 notes.
Choosing the right stream after class 12th is important. Having a good understanding of all the concepts is not required to excel in the exams but also to develop the knowledge about the subject. With these notes, they can study smartly, have a complete revision of the chapter Nature and Purpose of Business before the exam and be well prepared to tackle any type of question that may be asked in the examination. Chapter Notes - Nature and Purpose of Business. EduRev App. All Courses for Commerce on EduRev.
Bookkeeping And Accounting Class 12 Hindi. Accountancy Class Crash Course of Micro Economics -Class Statistics for Economics - Class XI. Mathematics Maths Class Bookkeeping And Accounting Class Crash Course of Accountancy - Class English Class English Snapshot Class In other words, industry refers to economic activities which are connected with raising, producing and processing of goods and services.
Types of Industries Industries are divided into two broad categories: i Primary industries ii Secondary industries. Primary industries include all those activities which are connected with extraction, producing and processing of natural resources. These industries may be further sub-divided into two types: a extractive and b genetic. Secondary industries are concerned with the materials which have already been produced at the primary stage.
For example, mining of iron ore is a primary industry, but manufacture of steel is a secondary industry. Products of these industries are used either directly for consumption such as food grains, fruits and vegetables or as raw materials such as cotton, sugar-cane, etc.
Reproduction and multiplication is the main activity in these industries, such as, agriculture, animal husbandry, dairy, poultry, pisciculture etc. Main products are milk, wool, butter, cheese, meat, egg, fish, seeds of plants, etc. Secondary industries may also be of two types: a manufacturing, and b construction. Cotton is converted onto textiles and iron one is converted into in these industries. It creates a form utility of the product. Their output do not consists of movable goods.
It makes use of the output of other industries like brick, cement, steel etc. Characteristics of Commerce Commerce is the sum total of all the activities connected with the placing of the product before the ultimate consumer. It provides the necessary link between the producer and the consumer of goods. Commerce includes all those business activities which are undertaken for the sale or exchange of goods and services and facilitates their availability for consumption and use - through trade, transport, banking, insurance, and warehousing.
Thus commerce includes trade and auxiliaries to trade, that is transport, banking, insurance and warehousing. The main characteristics of commerce are as follows: i Commerce is the sum total of activities which facilitate the availability of goods to consumers from different producers. Trade and its types Trade is an integral part of commerce and refers to sale and transfer of goods. It involves actual buying and selling of goods. It means exchange of goods and services for cash or credit.
Traders help in directing the flow of goods to the most profitable market. They also bring about equitable distribution of goods on a national and international scale. It is because goods are produced on a large scale and it is difficult for producers to reach individual customers, that trade is said to remove the hindrance of persons through traders.
Goods acquire place utility through trade. The primary object of home trade is to bring about proper distribution of goods within the country. It may be divided into two types a Wholesale Trade and b Retail Trade a Wholesale Trade: Wholesale trade involves buying goods from producers and selling them in small quantities to retailers. The wholesaler generally deals in large quantities of goods of a limited number of varieties.
He serves as a connecting link between the producer and the retail dealer. A retailer usually purchases goods from wholesalers or manufacturers and deals in a variety of goods of different manufacturers. It implies buying and selling of goods by traders of two different countries. It creates a very wide market for goods produced in different countries. External trade involves a Export and b Import. Export is concerned with the sale of goods to foreign countries. Import trade relates to the purchasing of goods from other countries.
Meaning Production of Sum total of Exchange of goods goods and activities for price through services for connected with buying and selling sale transfer of goods from producers to consumers 2. Utility Creates form Creates time Creates time and utility and place place utility and utility removes hindrance of persons 3.
Broad Four types: Two types: Two types: classifi- genetic, Trade and internal and cation extractive, auxiliaries external manufacturing to trade and construction Inter-relationship between Industry, Trade and Commerce All the three branches of business are closely related to each other.
Each depends upon the other for the achievement of aims and objectives of business. For example, industry is concerned with the production of goods and services, trade is related with sale and purchase of products, and commerce arranges for their distribution.
Industry can succeed only if goods are marketed and without production of goods, there cannot be commerce and trade. Hence, trade provides necessary support to industry and commerce. Thus, industry, trade and commerce are inter-dependent and cannot operate in isolation. Service facilities also provide necessary support to trade. Nature and Scope of Business :: 13 II. Transportation helps trade by facilitating the movement of goods and passengers from one place to another.
All kinds of goods can be transported in large quantities over long distances. A business can depend upon a number of modes of transportation - land transport road, railways, and pipeline , water transport inland waterways, coastal and sea and air transport domestic and international. Communication : Now-a-days it is not possible to have business without communication. Communication implies transmission of information, ideas, opinions, etc between two or more persons.
It is a systematic and continuing process of telling, listening and understanding. Communication may be of two types - i internal and ii external. If you enjoyed this article on Nature of Business , we recommend you look into the following legal terms and concepts.
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