Class 11 Business Studies - Chapter Business, Trade and Commerce NCERT Solutions | Explain the concept of business risk and
Explain the concept of business risk and its causes.
Business risk refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events. Causes of business risks are as given:
1. Natural causes: Human beings have little control over natural calamities like flood, earthquake, lightning, heavy rains, famine, etc. they result in heavy loss of life, property and income of business.
2. Human causes: Human causes include such unexpected events like dishonesty, carelessness or negligence of employees; stoppage of work due to power failure; strikes, riots; management inefficiency, etc.
3. Economic causes: These includes uncertainties relating to demand for goods, competition, price, collection of dues from customers, change to technology or method of production, etc. Financial problems like rise in interest rate for borrowing, levy of higher taxes, etc. also come under this type of causes as they result in higher unexpected cost of operation of business.
4. Other causes: These are unforeseen events like political disturbances, mechanical failures, such as the busting of boiler, fluctuations in exchange rates, etc. which lead to the possibility of business risks.
More Questions From Class 11 Business Studies - Chapter Business, Trade and Commerce
- Q:-
What factors are to be considered while starting a business? Explain.
- Q:-
Discuss the development of indigenous banking system in Indian subcontinent.
- Q:-
What were the different types of Hundi in use by traders in ancient times?
- Q:-
Define Industry. Explain various types of industries giving examples.
- Q:-
Why is business considered as economic activity?
- Q:-
List the major exports and imports in ancient India.
- Q:-
Define business. Describe its important characteristics.
- Q:-
State the different types of economic activities.
- Q:-
Describe the activities relating to commerce.
- Q:-
List any five major commercial cities of ancient India?
Popular Questions of Class 11 Business Studies
- Q:-
What is the role of promoters in the formation of a company?
- Q:-
Define services and goods.
- Q:-
State any three differences between e-business and traditional business.
- Q:-
1. The structure in which there is separation of ownership and management is called
(a) Sole proprietorship (b) Partnership
(c) Company (d) All business organisations2. The karta in Joint Hindu family business has
(a) Limited liability (b) Unlimited liability
(c) No liability for debts (d) Joint liability3. In a cooperative society the principle followed is
(a) One share one vote (b) One man one vote
(c) No vote (d) Multiple votes4. The board of directors of a joint stock company is elected by
(a) General public (b) Government bodies
(c) Shareholders (d) Employees5. Profits do not have to be shared. This statement refers to
(a) Partnership (b) Joint Hindu family business
(c) Sole proprietorship (d) Company6. The capital of a company is divided into number of parts each one of which are called
(a) Dividend (b) Profit
(c) Interest (d) Share7. The Head of the joint Hindu family business is called
(a) Proprietor (b) Director
(c) Karta (d) Manager8. Provision of residential accommodation to the members at reasonable rates is the objective of
(a) Producer’s cooperative (b) Consumer’s cooperative
(c) Housing cooperative (d) Credit cooperative9. A partner whose association with the firm is unknown to the general public is called
(a) Active partner (b) Sleeping partner
(c) Nominal partner (d) Secret partner - Q:-
1. A government company is any company in which the paid up capital held by the government is not less than
(a) 49 per cent (b) 51 per cent
(c) 50 per cent (d) 25 per cent2. Centralised control in MNC’s implies control exercised by
(a) Branches (b) Subsidiaries
(c) Headquarters (d) Parliament3. PSE’s are organisations owned by
(a) Joint Hindu family (b) Government
(c) Foreign Companies (d) Private entrepreneurs4. Reconstruction of sick public sector units is taken up by
(a) MOFA (b) MoU
(c) BIFR (d) NRF5. Disinvestments of PSE’s implies
(a) Sale of equity shares to (b) Closing down private sector/public operations
(c) Investing in new areas (d) Buying shares PSE’s6. The equity-based joint venture does not include
(a) Cooperative development (b) Company
(c) Partnership (d) Limited liability partnership - Q:-
What is meant by Social Responsibility in Business?
- Q:-
Define 'Memorandum of Association' and its significance.
- Q:-
What is e-banking. What are the advantages of e-banking?
- Q:-
How does outsourcing represent a new mode of business?
- Q:-
What are the causes of environmental pollution by businesses?
Recently Viewed Questions of Class 11 Business Studies
- Q:-
List and briefly explain any two distinguishing features of a Joint Stock Company.
- Q:-
Discuss the limitations of electronic mode of doing business. Are these limitations severe enough to restrict its scope? Give reasons for your answer.
- Q:-
Explain the role and significance of Public Sector Enterprises in India.
- Q:-
Explain the role and services offered by the Indian Postal Department.
- Q:-
What is the 'Certificate of Incorporation,' and why is it important?
- Q:-
Explain the concept of B2C commerce.
- Q:-
Analyze the factors influencing the choice of a business organization with examples.
- Q:-
Explain briefly the principles of insurance with suitable examples.
- Q:-
Differentiate between a Private Limited Company and a Public Limited Company.
- Q:-
Discuss the importance of the 'Articles of Association' in a company.
- All Chapters Of Class 11 Business Studies
- All Subjects Of Class 11