Commercial Applications
Which of the following statements is/are correct?
- All business activities involve sale or exchange of goods and services for some consideration.
- Every business enterprise produces or buys goods and services for selling them to others.
- The primary objective of a business is to earn money and acquire wealth.
- All of these
Answer
All of these
Reason — All three statements correctly describe business. Business involves sale or exchange of goods and services for consideration (price), every business enterprise produces or buys goods to sell them to others, and the primary objective of business is to earn money and acquire wealth through profits.
Related Questions
What is the purpose of economic activities?
- These activities are performed only for wage or salary.
- These activities are not expected to create money income.
- These activities are undertaken to earn a living through production and sale of goods and services.
- These activities do not result in creation of wealth.
Statement I: Non-economic activities are undertaken not for earning money but for personal satisfaction.
Statement II: Non-economic activities involve social, religious, patriotic and non-financial motives.
- Statements I and II are wrong
- Statement II is correct but I is wrong
- Statements I and II are correct but II is not an explanation of I
- Statements I and II are correct and II is an explanation of I
Statement I: Business is regarded as an economic activity.
Statement II: The objective of business activities is to sell the goods and services for profit.
- Both I and II are wrong
- I is correct and II is wrong
- Both I and II are correct but II is not an explanation of I
- Both I and II are correct and II is an explanation of I
Which of the following statements is wrong regarding industry?
(i) Industry includes all those business activities which involve extracting, multiplying, growing, processing, assembling and constructing useful products.
(ii) The term 'industry' refers to a group of firms producing similar or related goods.
(iii) The business enterprises which undertake industrial activities are known as industrial enterprises.
(iv) People who own and control industries are called manufacturers.
- Only (i) is wrong
- Only (ii) is wrong
- (iv) is wrong
- All of them are wrong