CLASS 1 1Business studies

CHAPTER – NATURE AND PURPOSE OF

HUMAN ACTIVITIES

Activities performed by human beings to meet needs and wants or for personal satisfaction. Human activities can be categorized as Economic and Non-Economic activities.

TYPES OF ECONOMIC ACTIVITIES

BUSINESSEMPLOYEMENTPROFESSION

CLASSIFICATION OF INDUSTRIES

INDUSTRY-◦PRIMARY INDUSTRIES EXTRACTIVE INDUSTRIES GENETIC INDUSTRIES

oSECONDARY INDUSTRIES MANUFACTURING INDUSTRIES ANALYTICAL INDUSTRIES SYNTHETICAL INDUSTRIES PROCESSING INDUSTRIES ASSEMBLING INDUSTRIES CONSTRUCTION INDUSTRIES

TERTIARY INDUSTRIES provide supporting services to primary and secondary industries.

They provide services in the field of banking , communication, transportation, advertising, warehousing etc.

CHARACTERSTICS OF BUSINESS

ECONOMIC ACTIVITYSALE OR EXCHANGE OF GOODS AND

SERVICESPROFIT MOTIVEELEMEN TOF RISKUNCERTAINITY OF RETURNDEALING ON REGULAR BASIS

OBJECTIVES OF BUSINESS

ECONOMIC OBJECTIVESProfitSurvivalGrowth

Social objectives Employment opportunities Social welfare Employee welfare and development

ROLE OF PROFIT

REWARD FOR BEARING RISKCREATING CREDITWORTHINESSYARDSTICK FOR BUSIENSS PERFORMANCE

Business risk

CAUSES OF BUSINESS RISK

NATURAL CAUSESHUMAN CAUSES ECONOMIC CAUSESEXTERNAL CAUSES

TYPES OF BUSINESS RISK

SPECULATIVE RISKSPURE RISKSINSURABLE RISKSUNINSURABLE RISKS