Business Concepts B.E Question Bank : selvamtech.com
Name of the College : Selvam College of Technology
Subject Code/Name : 080190028 – Business Concepts
Dept : Mechanical Engineering
Degree : B.E
Year/Sem: : IV/VII
Website : selvamtech.com
Document Type : Question Bank
Download Model Question Paper : https://www.pdfquestion.in/uploads/selvamtech.com/3246-080190028%20%96%20BUSINESS%20CONCEPTS.pdf
Selvam Tech Business Concepts Question Paper
BUSINESS ENVIRONMENT
Unit – I
1. What do you mean by business?
All human activities relating to the production of goods and services for satisfying human wants are called ‘Business’ Human activities are of two kinds (i) Economic (ii) Non- Economic.
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Economic activities are those activities which are related to the production of wealth. Every person is engaged in some kind of work to earn his living. All these activities create utilities. Non economic activities are those activities which are in the form of social service etc.
2. Define business.
According to L.H.Haney, “Business may be defined as human activity directed towards producing or acquiring wealth through buying and selling of goods.” According to Peterson and Plowman, ‘Business may be defined as an activity in which different persons exchange something of value , whether goods or services for mutual gain or profit’
3. State the Objectives of business.
The Objectives of business are classified into three types
(i) Economic objectives
(ii) Social objectives
(iii) Human objectives
(i) Economic objectives
The initial main objective of a business is the earning of sufficient profits to give reasonable reward to the investors of the capital and to provide future capital. In other words, business enterprise is brought into existence only with a view to earn profit.
(ii) Social objectives
The business must provide to the society:
i) Good quality products at the lowest possible price.
ii) Setting up and keeping standards of quality of goods and services.
iii) Control on monopoly tendencies.
iv) Fair trade practices.
(iii) Human objectives
The business owes to the workers to provide them:
i) Fair wages.
ii) Healthy working conditions
iii) Social protection
iv) Adequate opportunity for collective bargaining.
v) Stability of employment.
5. What do you mean by Trade?
Trade is the voluntary exchange of goods, services, or both. Trade is also called commerce or transaction. A mechanism that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and services. Later one side of the barter were the metals, precious metals (poles, coins), bill, paper money. Modern traders instead generally negotiate through a medium of exchange, such as money. As a result, buying can be separated from selling, or earning. The invention of money (and later credit, paper money and non-physical money) greatly simplified and promoted trade. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade.
Unit – II
6. What is internal trade or Domestic trade or Home trade?
Buying and selling of goods and services within the boundaries of a nation are referred to as internal trade. Whether the products are purchased from a neighborhood shop in a locality or a central market or a departmental store all these would be considered to be examples of internal trade.
7. What are the Types of internal trade?
Internal trade can be classified into two broad categories viz,
(i) Whole sale trade: This trade relates to the purchase of goods in large quantities from producers and their sale to retailers in small lots.
(ii) Retail trade: This is the last link in the economic chain where the human wants are satisfied. The retailers keep his goods at convenient place where from the supplies to the consumers.