L-3 Classification of Business Activities
A. One Word to One
Sentence Questions
Q. 1. Name some
Industrial Goods.
Ans. Machinery, Equipments, Tools, Plants etc.
Q. 2. Name some
Intermediate Goods.
Ans. Rubber, Plastics, Aluminium.
Q. 3. What are
the categories of Industries ?
Ans. Primary, Secondary, Tertiary.
Q. 4. Which
type of industries are included in the Primary Industry ?
Ans. Genetic Industries, Extractive Industries.
Q. 5. Name two
types of secondary industries.
Ans. (i) Construction Industry
(ii)
Manufacturing Industry.
Q. 6. Name the types
of manufacturing industries.
Ans. (i) Analytical Industry
(ii)
Synthetic Industry
(iiii)
Processing Industry.
Q. 7. Name the
categories of service industry.
Ans.
(i) Transport
(ii)
Insurance
(iii)
Warehousing
(iv).
Banking
(v)
Advertising.
Q. 8. What is
insurance?
Ans. It provides coverage for all types of risks
related to business.
Q. 9. Name the
components of commerce.
Ans. Trade and Aids to Trade.
Q. 10. Name the
types of trades.
Ans. Internal Trade, External Trade, Wholesale Trade,
Retail Trade.
Q. 11. What is
retail trade?
Ans. Retail trade involves buying of goods from the
manufacturers and selling them in small quantatities.
Q. 12. What do
you mean by Aids to Trade?
Ans. The agencies which facilitate trade are known as
aids to trade.
Q. 13. Define
business risks.
Ans. According to Wheeler, “Risk is the chance of
loss. It is the possibility of some unfavourable occurrence.”
Q. 14. Name the
causes of business risks.
Ans. (i) Physical Causes
(ii)
Natural Causes
(iii) Human
Causes
(iv)
Economic Causes.
Q. 15. Write
down two physical causes of business risk.
Ans. (i) Wear and Tear of machinery
(ii)
Mechanical defects in machines.
Q. 16. Write
down two economic causes of business risk.
Ans. (i) Fluctuations in Demand
(ii)
Increase in Competition.
B. Fill in the
blanks
1............ fills the gate between producer of goods
and service and their consumers.
2. Construction Industry is an example of.........
3. ......... provides coverage for all types of risks
related to business.
4. ......... is used for storing of raw materials and
finished goods.
5. ......... removes the hindrance of finance.
6. Commerce is basically concerned with the transfer
of.................
7. When the goods are produced according to local
demands it is called..............
Ans.
1. Service industries 2. secondary industries, 3. Insurance, 4. Warehousing, 5.
Banking, 6.
goods 7, local trade.
C. True or False
1. Commerce is concerned with exchange of goods and
services for profit.
2. Banks make the consumer aware about the
availability of goods in the market.
3. Trade refers to purchase and sale of goods and
services.
4. When the trader of one country purchases goods from
seller of the foreign countries,it is known as export trade.
5. Banks provide short term and long term funds to the
business enterprises.
Ans. 1. True, 2. False, 3. True, 4. False 5. True
D. MCQ
1. The units
which are engaged in manufacturing of products are collectively known as:
(a) Firms
(b) Commerce
(c) Industry
(d) Trade
2. Import and
Export Trade is an example of:
(a) Internal
Trade
(b) Foreign Trade
(c) External Trade
(d) Both b and c
3..........
deals only with buying and selling of goods.
(a) Trade
(b) Industry
(c) Commerce
(d) All of the above
4. The trade is
confined to the boundaries of the state is known:
(a) Provincial Trade
(b) Local Trade
(c) External Trade
(d) None of the above
5. Which one of
the following is not the type of foreign trade?
(a) Import Trade
(b) Export trade
(c) Provincial Trade
(d) Entrepot trade
6. Which of the
following services come under aids to trade?
(a) Banking and Insurance
(b) Transportation and Communication
(c) Both (a) and (b)
(d) None of the above.
Ans.
1. (c), 2. (d), 3. (a), 4. (a), 5. (c), 6. (c)
