Madhya Pradesh Board Class 11 Business Studies — Flashcards for Quick Revision

A: Business is an economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society. It includes all activities fro

A: 1. Economic activity 2. Production or procurement of goods and services 3. Sale or exchange of goods and services 4. Dealings on a regular basis 5. Profit earning motive 6. Uncertainty of return 7. El

A: Economic activities are undertaken to earn livelihood (like a worker in factory, doctor in clinic). Non-economic activities are performed out of love, sympathy, or sentiment (like housewife cooking fo

A: Sole proprietorship is a form of business organisation owned, managed and controlled by an individual who is the recipient of all profits and bearer of all risks. 'Sole' means 'only' and 'proprietor'

A: Unlimited liability means the owner is personally responsible for payment of debts if business assets are insufficient. The owner's personal possessions can be sold to repay business debts. Example: I

A: 1. Quick decision making - No need to consult others, leading to timely capitalisation of opportunities 2. Confidentiality - Can maintain secrecy about business operations 3. Direct incentive - Sole r

A: The oldest and most traditional form of organizing public enterprises. These are established as departments of the ministry and are considered part of the ministry itself. They have no separate legal

A: 1. Funding comes directly from Government Treasury through annual budget appropriation 2. Employees are government servants with same conditions as other government employees 3. Subject to direct cont

A: A public enterprise brought into existence by a Special Act of Parliament. It is a corporate body with defined powers and functions, financially independent with control over a specified area or comme