Chapter 1

Business Trade and Commerce

1. X Ltd. suffered a loss due to bursting of boiler.

a) Natural Cause b) Political Cause
c) Physical Cause d) Economic Cause
2. What is the modern concept of business?
3. Which route links the east and west by sea?
4. What is the meaning of Maritime Trade.?

5. Give one word substitute for the following sentences:

(a)The process of exchange and distribution of goods and services.
(b)Buying and selling of goods and services.
(c)Buying and selling of goods in large quantities.
6. --- was a major port in the 17th century On the Coromandel Coast and ----- were the principal
exports
7. Name the major centre of textile industry and became famous for beautiful gold silk cloth and
sandalwood workmanship.
8. Pure risk may result in profits as well as losses. (True / False)
9. Business risk can be eliminated’. (True / false)
10. Which were the major exports and imports in ancient India?
11. Which sector of commerce removes the hindrance of place, finance, risk, storage and
information to consumers?
12. Which hindrance of commerce is highlighted in the following activities?
a. It removes the geographical separation between producers and
consumers.
b. Warehousing facilitate holding of goods till they are required.
c. Advertising informs the consumers about the goods and services available in the market.
13. Rakesh’s father gifted him a cricket bat on his birthday. The cost of the bat was Rs 700/-.Few
months later, Rakesh sold it to Nishant and earned a profit of Rs 50/-.Can the transaction
between Rakesh and Nishant be termed as business transaction? If so why or why not?
14. A chartered accountant as a professional is bound by code of conduct prescribed by the Institute
of chartered accountants of India. Mr.X aleading CA advices his client ,a businessman, about the
techniques to     convert his black money into white money and thus avoid income taxIs the
conduct of Mr. X justified? Give reasons for a your answer
15. XYZ Power Ltd. Set up a factory for manufacturing solar lanterns in a remote village as there was
no reliable supply of electricity in rural areas. They revenue earned by the company was
sufficient to cover the costs and the risks. The demand of the lanterns was increasing day-by-
day. So the company decided to increase production to generate higher sales. For this, they
decided to employ people from the nearby villages as very few job opportunities were available
in that area. The company also decided to open school and creches for the children of its
employees. Identify and explain the multiple objectives of business.