Students can download Class 8 Business Studies Chapter 2 Business and Industry Important Questions, KSEEB Class 8 Social Science Important Questions and Answers helps you to revise the complete Karnataka State Board Syllabus and to clear all their doubts, score well in final exams.
Karnataka State Syllabus Class 8 Social Science Business Studies Important Questions Chapter 2 Business and Industry
What is business?
Business is an organisation or enterprising entity engaged in commercial, industrial or professional activities.
Stephenson defines business as, “the regular production or purchase and sale of goods undertaken with the objective of earning profit and acquiring wealth through the satisfaction of human wants”.
What are the main objectives of business?
Business has two main objectives. They are
- Economic objectives and
- Social objectives.
What are the economic objectives of business?
The economic objective of business includes earning reasonable profit that is sufficient to enable the business to cover the costs and the businessman to lead a normal comfortable life.
Describe the role of business in the economy.
Business supplies goods and services to the consumers and thus creates consumers. It uses the available resources to produce sufficient goods for consumers. It produces such goods that are required from time to time according to changes that take place. It brings changes in production by adopting new techniques. It also enables the consumers to know about the changes in products through advertisements.
What are the social objectives of business?
The social objectives of business are:
- To produce and supply goods that are required for the development of a country.
- To provide employment to. people and pay them fair wages and thereby help to improve their standard of living.
- To contribute to economic development of the nation by paying taxes and duties.
- To contribute to the welfare of society by establishing and developing social services.
What is trade? Which are the different types of trade?
Trade is the activity of buying, selling, or exchanging goods or services between people, firms, or countries. Trade is divided into three types. They are:
- Home Trade
- Foreign Trade
- Entrepot Trade.
What is home trade?
The trade within the country is called home trade. This trade is carried on through retailers and wholesalers.
Mention the services rendered by retail traders.
Retailers carry out their trade at places where consumers live. They buy goods from the wholesalers and sell them to consumers. The services provided by retailers are:
- They supply a variety of goods produced by different producers to the consumers.
- They store goods to meet the demands of the consumers.
- They take the risk of loss in business or loss of goods.
- They grade and divide the goods and supply according to the needs and tastes of the consumers.
- They provide credit facilities to the consumers.
- They give more information about the newly introduced goods in the market and suggest alternatives for goods that are not available.
Explain the different types of retailers.
Retail trade is carried on in different ways. The important types are
- Permanent shops: They are opened at a fixed place and carry on trade.
- Itinerant or mobile traders: They do not have a fixed place to carry on their trade.
Important among them are:
- Hawkers: They carry goods on their heads, move from door to door and sell their goods. They generally sell only one or two types of goods.
- Pedlars: They carry their goods on wheeled carts and sell them to the consumers at their doorstep. They generally sell more than one type of goods.
- Street vendors or footpath traders: They display goods in busy street corners or on pavements and sell them to the consumers.
- Market sellers (shandy sellers): These traders bring their goods to the weekly markets held in different villages and sell their goods.
Name the different types of itinerant or mobile traders.
The different types of mobile traders are: hawkers, pedlars, street vendors and market sellers.
Who are wholesalers?
Wholesalers are those who buy goods in large quantities from producers and sell them to the retailers in small quantities.
What are the benefits the retailers get from the wholesalers?
The wholesalers help the retailers in many ways. They are:
- They supply goods to the retailers in small quantities.
- They provide credit facility to the retailers.
- They advertise for goods on behalf of the retailers.
- They provide market trends to the retailers.
- They do not keep high margin of profits.
- They also provide storage facility for goods.
What is foreign trade?
Foreign trade is the exchange of capital, goods and services between countries.
Name the three types of foreign trade.
The three types of foreign trade are: Imports, Exports and Entrepot trade.
Give the meaning of imports, exports and entrepot trade.
- Imports: Imports are goods, services and products brought into a country from another country.
- Exports: Exports are goods, services and products sent from one country to another country.
- Entrepot trade: Entrepot trade refers to buying of goods from one country with a view to sell them to other countries.
Why is foreign trade necessary for a country?
Foreign trade arises from the fact that no country in the world is self-sufficient in all the natural resources. Some countries have plenty of natural resources. Using those resources they produce more goods than what they need and the surplus production is exported to other countries.
In the same way, some countries have shortage of some natural resources and depend on other countries for their requirements and import them. Thus there is a great need for foreign trade.
What is an industry?
An industry is an economic activity concerned with production of goods, extraction of minerals and provision of some services.
How are industries classified?
Explain briefly the two types of industries.
Industries may be classified into two main types. They are: Primary industries and Secondary industries. Primary industries are further divided into genetic industries and extractive industries. Secondary industries are further divided into manufacturing and construction industries.
What are primary industries? Give examples.
Primary industries are industries that produce goods by using natural resources. Examples: Agriculture, fishing, dairy farming, mining, etc.
What are genetic industries? Give examples.
Genetic industries are industries engaged in reproduction of different crops, plants and animals. They help to increase the wealth of a nation. eg: Horticulture, dairy farming, poultry farming, etc.
What are extractive industries? Give examples.
Extractive industries are industries engaged in extracting different raw materials and ores from the earth. eg: Extraction of ores, drilling of oil wells etc.
What are secondary industries? What are its types?
Secondary industries are industries that convert the raw materials provided by primary industries into products. Secondary industries are labour-oriented industries. They are of two types i.e., manufacturing industries and construction industries.
- Manufacturing industries convert raw materials or semi-finished products into finished products. Producing steel from iron ore, sugar from sugarcane are examples of manufacturingindustries.
- Construction industry is engaged in construction of roads, bridges, canals, etc. This industry helps in the development of economic activities like transport, communication, etc.
What are manufacturing industries? Give examples.
Manufacturing industries are industries engaged in converting raw materials or semi finished products into finished products. They are mainly labour oriented and supply finished products to consumers. eg: Converting iron ore into steel, extracting sugar from sugarcane etc.
What are construction industries? Give examples.
Construction industries are industries engaged in the construction of roads, canals, bridges, etc. These industries help in the quick development of economic activities like transport, communication, etc.
What are cottage industries? Give examples.
Cottage industries are also called household industries. They are carried on by craftsmen in their own houses with the help of family members. They are mainly concentrated in the villages and produce goods mainly for the local market. Examples: Carpet weaving, pottery, stone carving, etc.
What are small-scale industries?
Small-scale industries are organized on a small-scale in a particular place. They use electric power and some machines. They employ workers and use modern techniques. The goods are manufactured both for local and external market.
Mention the important goods produced by cottage industries and small-scale industries.
Products of cottage industries: Carpentry products, smithy products, pottery, baskets, mats, stone carving, etc. Products of small-scale industries: Chemical products, soaps, footwear, bicycles, readymade garments, radios, sewing machines, engineering products, etc.
What are the hindrances to business, trade and industry?
The hindrances to business, trade and industry are hindrance of place, hindrance of risk of loss, hindrance of time, hindrance of finance, hindrance of knowledge, etc.
How does transport help to overcome the hindrance of place?
The different means of transport like road transport, rail transport, air transport and water transport help to reach the goods from producers to retailers and from retailers to consumers. They thus help to overcome the hindrance of place.
How can the hindrance of finance be overcome?
Finance is required at every stage of business. In the distribution of goods from the producers to the consumers there is the hindrance of finance. Banks, by providing finance to traders, help in the smooth conduct of business.
How do insurance companies help overcome the hindrance of loss or risk?
In any business there is always the risk of loss due to accidental damage or destruction of goods, or due to natural calamities. Insurance companies, by covering the risks and making good the loss, help in the smooth conduct of business.
How does storage help to overcome the hindrance of time?
All the goods that are produced are not consumed at the same time. They have to be supplied to consumers wherever and whenever they are required. Hence they need to be stored. For this purpose, there are scientifically constructed warehouses with cold storage facilities. By aiding storage of goods, warehouses help to overcome the hindrance of time.
How does advertising help overcome hindrance of knowledge?
Knowledge about existing goods, or new goods, or alternatives is to be given to consumers. Advertising brings goods and services to the knowledge of prospective buyers. It provides information about available goods and induces consumers to buy the goods. Thus advertising helps overcome hindrance of knowledge.
Which organisations help overcome the hindrance of place and risk?
Transport including road transport, railway transport, water transport and air transport helps overcome the hindrance of place. Hindrance of risk is overcome by insurance companies.
Mention the antisocial activities of traders to earn more profit
What are the unethical practices adopted by businesses?
Some traders, with the objective of earning more profit, resort to unethical and anti-social practices like adulteration, charging high prices, using false weights and measures, creating artificial scarcity by hoarding the goods, black marketing, etc.
What steps have been taken to curb unethical and antisocial trade practices?
What are the steps taken by the government to overcome antisocial practices in business?
In order to curb unethical and anti-social trade practices, the following steps have been taken:
- Public distribution system has been started and goods are made available at fixed prices.
- The Bureau of Indian Standards has been set up to maintain the standard of goods and essential commodities.
- Every packed product is required to have information about its price, date of manufacture, weight, expiry date, maximum retail price, etc., on its package.
- ISI or AGMARK marks are required to be printed on goods and commodities to certify their quality.
Multiple Choice Questions
The objective of business should be to earn ________ profit.
Who, among the following, move from door to door to sell goods?
(B) Street vendors
(C) Street traders
(D) Shandy sellers.
Traders who buy goods in large quantities from the producers and sell them in small quantities to retailers are called
(A) market sellers
(C) itinerant traders
(D) shandy sellers.
The buying of goods by a country from another country for its own use is called.
(B) export trade
(C) entrepot trade
(D) import trade.
(D) import trade.
The country known as the centre of entrepot trade is
(B) Sri Lanka
Fishing, dairy farming, poultry farming, etc., are _________ industries.
Household industries are also called _______ industries.
Which organisation tries to remove the hindrance of lack of knowledge?
Which one of the following is not an unethical practice of traders?
(A) Black marketing
(B) Unauthorised hoarding
(C) Earning reasonable profit
(D) Artificial scarcity.
(C) Earning reasonable profit
To certify the quality of agricultural products is printed on the package.
Fill In The Blanks
- The best example for entrepot trade is singapore.
- Cottage industries are mainly concentrated in rural areas.
- Manufacture of chemicals is carried out in small scale industries.
- The sole objective of business should be earning reasonable profit.
- To safeguard the quality of goods Bureau of Indian Standards institution has been started.
- To certify the quality of manufactured products ISI symbol is marked on them.
- Banks help overcome the hindrance of finance.
- Products like mats, baskets, pottery, carvings, etc., are produced in Cottage industries.
- Genetic and extractive industries are called primary industries.
- The last link in the distribution of goods is retailer.