Commercial Applications
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
Commercial Orgs Intro
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Answer
Both I and II are correct and II is an explanation of I
Reason — Both statements are correct. Statement II explains Statement I — business is regarded as an economic activity because its objective is to sell goods and services for profit. The profit motive, along with the use of scarce resources, makes business an economic activity, distinguishing it from non-economic activities like social or religious work.
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Related Questions
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
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
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
Which of the following statements is wrong regarding industry?
(i) Extractive industries are those industries which are concerned with the discovery and extraction of natural resources.
(ii) Genetic industries are those industries which are concerned with reproducing and multiplying plants and animals.
(iii) Manufacturing industries are those industries which are concerned with providing commercial services.
(iv) Industries which employ complex technology and long production cycles are called heavy industries.
- (i) is wrong
- Only (iii) is wrong
- (i), (ii), (iv) are wrong
- None of them