Internal trade | Business Studies | Class 11
Internal trade Means, Buying, and selling products or services within the boundaries of the country. There are two types of Internal trade Internal trade consists of Wholesale Trade, Retail Trade. Wholesale trade Buying and selling of goods and services in Large Quantities. They mainly deal in offering goods and services directly from the manufacturers to the Retailer and Ultimate Customers. As Compared to retailers and manufacturers, they store goods in large quantities to remove hindrances...
7 min read →Formation of a company | Business Studies | Class 11
The formation of a company is a complex process that involves completion of legal formalities and procedures. There are three steps or stages involved in the formation of a company. They are: Promotion Incorporation Subscription of capital Commencement of business It should be emphasised that just the first two stages listed above are applicable for private limited companies. In other words, a private company may begin operations as soon as it receives its certificate of formation. Promotion...
5 min read →Meaning and Nature of International Business | Business Studies | Class 11
Introduction International business has entered into a new era of reforms. India too did not remain cut-off from these developments. India was under a severe debt trap and was facing crippling balance of payment crisis. In 1991, it approached the International Monetary Fund (IMF) for raising funds to tide over its balance of payment deficits. IMF agreed to lend money to India subject to the condition that India would undergo structural changes to be able to ensure repayment of borrowed funds....
16 min read →Meaning and Nature of Small Business | Business Studies | Class 11
Introduction In India, the village and small industries sector consists of both traditional and modern small industries. This sector has eight subgroups. They are handlooms, handicrafts, coir, sericulture, khadi and village industries, small scale industries and power looms. The last two come under the modern small industries, while the others come under traditional industries. Village and small industries together provide the largest employment opportunities in India. Several parameters can...
18 min read →Sources of Business Finance | Business Studies | Class 11
Introduction Business is concerned with the production and distribution of goods and services for the satisfaction of needs of society. For carrying out various activities, business requires money. Finance, therefore, is called the life blood of any business. The requirements of funds by business to carry out its various activities are called business finance. A business cannot function unless adequate funds are made available to it. The initial capital contributed by the entrepreneur is not...
21 min read →Social Responsibilities of Business and Business Ethics | Business Studies | Class 11
Concept of Social Responsibility Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society. The assumption of social responsibilities by business enterprises implies that they respect the aspirations of society and would try their best to contribute to the achievement of these aspirations along with their profit interests. This idea is in contrast to the common notion...
16 min read →Emerging Modes of Business | Business Studies | Class 11
E-Business e-business may be defined as the conduct of industry, trade and commerce using the computer networks. The network you are most familiar with as a student or consumer is the internet. Whereas internet is a public thorough way, firms use more private and, hence more secure networks for more effective and efficient management of their internal functions. e-business is broader than e-commerce: Just as the term business is a broader term than commerce, e-business is a more elaborate...
16 min read →Business Services | Business Studies | Class 11
What are the basic features of services? There are five basic features of services. These features also distinguish them from goods and are known as the five I’s of services. Intangibility: Services are intangible, i.e., they cannot be touched. They are experiential in nature. One can only experience it. Often, the quality of the offer cannot be determined before consumption/purchase. It is, therefore, important for the service providers that they consciously work on creating a desired...
25 min read →Private Sector and Public Sector | Business Studies | Class 11
Introduction There are all kinds of business organizations ; small or large, industrial or trading, privately owned or government owned existing in our country. These organizations affect our daily economic life and therefore become part of the Indian economy. Since the Indian economy consists of both privately owned and government owned business enterprises, it is known as a mixed economy. The Government of India has opted for a mixed economy where both private and government enterprises are...
19 min read →Forms of Business Organization | Business Studies | Class 11
Introduction If one is planning to start a business or is interested in expanding an existing one, an important decision relates to the choice of the form of organization. The most appropriate form is determined by weighing the advantages and disadvantages of each type of organization against ones own requirements. Various forms of business organizations from which one can choose the right one include: Sole proprietorship, Joint Hindu family business, Partnership, Cooperative societies, and...
29 min read →Business, Trade and Commerce | Business Studies | Class 11
Concept of Business The term business is derived from the word busy. Thus, business means being busy. However, in a specific sense, business refers to an occupation in which people regularly engage in activities related to purchase, production and/or sale of goods and services with a view to earning profits. The activity may consist of production or purchase of goods for sale, or exchange of goods or supply of services to satisfy the needs of other people. In every society people undertake...
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