Nature and Purpose of Business – NCERT Class 11 Business Studies Chapter 1 Summary

Nature and Purpose of Business - NCERT Class 11 Summary

Nature and Purpose of Business - NCERT Class 11 Summary

This chapter introduces the basic concept of business, its nature, objectives, and how it is different from other human activities. Here's a concise and SEO-friendly summary.

🔹 Meaning of Business

Business refers to human activities involving production or purchase and sale of goods and services with the motive of earning profit.

🔹 Economic and Non-Economic Activities

  • Economic Activities: Activities done to earn money (e.g., trade, employment, profession).
  • Non-Economic Activities: Activities done for personal satisfaction (e.g., charity, hobbies).

🔹 Types of Economic Activities

  • Business: Buying & selling goods/services for profit.
  • Profession: Specialized services in exchange for a fee.
  • Employment: Working for others and earning salary/wages.

🔹 Characteristics of Business

  • Deals in goods and services
  • Profit motive
  • Involves risk
  • Requires capital investment
  • Continuous in nature

🔹 Objectives of Business

  • Economic Objectives: Profit earning, market share, innovation.
  • Social Objectives: Welfare of society, fair prices, employment.
  • Human Objectives: Employee welfare and motivation.

🔹 Classification of Business Activities

  • Industry: Production of goods.
  • Commerce: Distribution and exchange (Trade + Aids to trade).

🔹 Business Risks

Business risk refers to the possibility of loss or inadequate profits due to uncertainties like competition, changes in taste, or natural calamities.

📌 Conclusion

Understanding the nature and purpose of business helps students develop a foundation in commercial knowledge, and appreciate its role in economic development and society.

🔖 Labels:

Business Studies, Class 11, NCERT, Business Purpose, Blogger Education Post, Economic Activities, Chapter 1

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