8th Standard, Social, BUSINESS studies, CHAPTER-15
MEANING AND IMPORTANCE of BUSINESS STUDIES
Exercises
I. Fill in the blanks with appropriate words:
1. The best example for Entrepot trade is Singapore and Middle East countries.
2. Cottage industries are mainly concentrated in villages.
3. The manufacture of chemicals is carried out in small scale industries.
4. The sole objective of business should be earning reasonable profit.
5. To safeguard the quality of goods Bureau of Indian standards institution has been started.
II . Answer each of the following questions in two to four sentences:
6. Which are the different types of mobile shops?
Answer: The different types of mobile shops are as follows.
1. Hawkers,
2. Peddlers,
3. Street vendors or footpath traders
4. Market vendors.
7. Who are wholesalers?
Answer: Wholesale traders buy goods in large quantity from producers and sell them to the retailers in small quantities. Generally, they deal with one or two types of goods.
8. Name the three types of foreign trade.
Answer: The three types of foreign trade are as follows.
- Export
- Import
- Entrepot
9. Mention the important goods produced by cottage and small scale industries.
Answer: The important goods produced by cottage and small scale industries are as follows.
Cottage industries: Carpentry, smithy, carpet weaving, pottery, blanket making, stone carving
Small scale industries: Chemical industry, manufacture of engineering goods, shoes, bicycles, fans, radios, sewing machine, soaps, garments.
10. Which organizations overcome the hindrance of place and risk?
Answer: To overcome the hindrance of place the services of transportation are used. To overcome the hindrance of risk the services of Insurance companies are used.
11. Mention the antisocial activities of traders to earn more profit.
Answer: To earn more profits, some antisocial practices are followed, and some of them are-adulteration, charging excess or abnormal rates, using false weights and measures, creating artificial scarcity, hoarding the goods and carrying out black marketing etc.
12. What are the steps taken by the government to overcome the anti-social practices in business?
Answers: In our country the Government has introduced Public Distribution System to avoid anti-social practices. To maintain the standard of goods and essential commodities the government has opened an institution – Bureau of Indian standards. ISI and AGMARK marks are printed on goods and commodities to certify their quality etc. Every industrial product must have a seal on its cover pack, the quantity, the date of manufacture, date of expiry, Maximum retail price (MRP). It is a legal mandatory provision. Government has also opened Janatha bazaars, consumer co-operative societies etc. to supply essential commodities to the people. Despite these measures, business becomes public cheating, in the absence of business ethics.
III . Answer each of the following questions in eight to ten sentences:
13. What are the economic objectives of business?
Answer: We are under the impression that earning profit is the main objective of business. But it is not so, the sole objective of business includes earning reasonable profit that is sufficient to enable the business to cover the costs and the business man to lead a normal comfortable life. Business supplies goods and services to the consumers and thus creates consumers. It uses the available resources to produce the goods that are sufficient to consumers. It produces such goods that are required according to the changes that take place from time to time. It brings changes in production by adopting new techniques. It also enables the consumers to know about the changes in products through advertisement.
14. What are the social objectives of business?
Answers: Business produces and supplies the goods that are required for the development of a nation. It provides employment to many and pays them fair wages and salaries and helps them to improve their standard of living. Business contributes its share the economic development of a nation by paying rates, taxes and duties. Business also contributes a fair share for the social welfare of the nation by starting and running of schools, colleges, hospitals, stadiums and also by maintaining public gardens etc.
15. Mention the services rendered by retail traders.
Answer: the services rendered by retail traders are as follows.
- They are the last connecting link in the distribution of goods.
- They supply variety of goods produced by different producers to the consumers.
- They store the goods to meet the demand of the consumers.
- They take the risk of loss in business or loss of goods.
- They grade the goods and supply according to the tastes of the consumers.
- They provide credit facilities to the consumers, give more information about the newly available goods in the market and suggest alternative goods for the particular goods that are not available.
16. List out the different retail traders and write two/three sentences on each of them.
Answer: List of the different retail traders are
- Permanent shops: They are opened at a fixed place and carry out trade.
- Itinerant or Mobile Traders: They do not have a fixed place to carry on their trade. The important among them are Hawkers, Peddlers, Street vendors and Market vendors.
- Hawkers: They carry goods on their heads, move from “door to door” and sell their goods. They generally sell only one or two type of goods. e.g. – Vegetables, fruits, flowers etc.
- Peddlers: They carry their goods on wheeled carts and sell them to the consumers at their doors. They generally sell more than one type of goods.
- Street vendors or footpath traders: They display goods in busy street corners or on pavements and sell them to the consumers.
- Market vendors: Weekly markets take place at villages or towns once in a week. Different traders take their goods to these markets and sell them to the consumers.
17. Explain briefly the two types of Industries.
Answer: The two types of Industries are Primary Industries and Secondary Industries.
Primary Industries: Primary industries produce goods by using the natural resources. e.g. – agriculture, fishing, dairy farming, mining etc. These industries are further divided as: genetic industries and extractive industries.
Secondary Industries: They are labour oriented industries. They are further divided into manufacturing industries and construction industries.
18. What is the need of foreign trade to a country?
Answer: No country in the world is self-sufficient in all the natural resources. Some countries have plenty of natural resources. Using the available natural resources they produce more goods than they require and the excess is exported to other countries. In the same way some countries have deficit of some natural resources and depend on other countries for their requirement and import them. Thus there is a great need for foreign trade. The need for foreign trade is increasing day by day. It also helps to foster friendship among the countries.
Additional Questions
- What is cottage industry? Give example.
Answer: Cottage industries are also called household industries. They are carried out by craftsmen in their own houses with the help of family members or apprentices (persons who like to learn work). Carpentry, smithy, carpet weaving, pottery, blanket making, stone carving etc. are some examples.
- What is Small scale industry? Give example.
Answer: These are organized on a small scale in a particular place (sheds). They use electric power and some machines. They employ labourers and adopt modern techniques. Chemical industry, manufacture of engineering goods, shoes, bicycles, fans, radios, sewing machine, soaps, garments are some examples for small scale industry.
- What is foreign trade?
Answer: The trade between two countries is called foreign trade.
- Mention the activities of the wholesalers which helps retailers and consumers.
Answer: The activities of the wholesalers are as follows.
1. They help the retailers in many ways such as supplying goods to the retailers in small quantities.
2. They provide credit facility to the retailers, whenever required.
3. They advertise for goods on behalf of the retailers.
4. They supply market trends to the retailers.
5. They do not keep high margin of profit.
6. They render some services to the producers such as market trends, prices and taste of the consumers.
7. Advertise on behalf of the producers.
8. They also provide storage facility for goods.
IV. Activity:
1. Visit weekly market near your place and learn how buying and selling is carried on there and write an essay.
