Business Studies 4 Marks Question

Entrepreneur: The owner of a business is known as an Entrepreneur or we can say that the person who set-up a business. That person is the co-ordinator, organiser of resources and gives shape to the business.
Entrepreneurship: It is the dynamic process of interaction between the person and the environment. It means starting up one's own business, concerned with strategic decisions of resource allocation and involves huge risk to create value and earn a profit.
Enterprise: The output of the entrepreneurship process is known as the Enterprise. It is something that attempted to be performed. It provides employment opportunities, professional opportunities and business opportunities which helps in building up the economy of a nation.
Thus, an entrepreneur refers to a person/individual who starts up a business. He is the one who takes up the basic idea of setting up the business. In the process of setting up the business, he undertakes risk coordinates production resources, and undertakes innovation. This whole process of setting up a new business is called entrepreneurship. The final result that is the business that is established after undertaking the process of entrepreneurship is called an enterprise. In simple words, an entrepreneur is a person who undertakes the process of entrepreneurship to set up an enterprise.

Business ethics refers to a set of moral values or standards pr norms that govern the activities of a businessman. Ethics defines what is right and what is wrong.
Elements of business ethics:
i. Identification: It means that businessmen should be competent enough to rank and identify the ethical issues in order of importance.
ii. Evaluation: It means that businessmen must develop the rules and regulations in order to evaluate the ethical issues of the business.
iii. Imagination: A businessman should be imaginative enough that he should think about society before taking any decision about the business. He must be aware of the areas towards which people are sensitive.
iv. Tolerance: Businessmen must have the quality to tolerate ethical disagreement.
v. Obligations: The business decision taking process should be evaluated so that it must fulfill ethical obligations.

Following are the different kinds of organizations that come under the public sector:
i. Departmental Undertaking: This is the oldest and traditional form of public enterprises. It is managed by government officials as one of the government departments. It is under the control of the concerned minister of the department, who is answerable to the government through parliament.
ii. Statutory Corporation: Statutory Corporation is a corporate body with a separate legal existence, set up under a special act of parliament or of the state legislature which defines its power and functions.
iii. Government Company: According to the Indian Companies Act 1956, a government company means any company in which not less than 51 per cent of the paid-up capital is held by the government or by any state government or partly by the central government and partly by one or more state governments. They are established purely for business purposes.

There are actually innumerable advantages of e-Business, the most obvious one being the ease of doing business. Some of the major advantages of e-business are as follows:
i. Easy to Set Up: It is easy to set up an electronic business. You can set up an online business even by sitting at home if you have the required software, a device, and the internet.
ii. Cheaper than Traditional Business: Electronic business is much cheaper than a traditional business. The cost taken to set up an e-business is much higher than the cost required to set up a traditional business. Also, the transaction cost is effectively less.
iii. Global reach: There are no geographical boundaries for e-business. Anyone can order anything from anywhere at any time. This is one of the benefits of e-business.
iv. Government Subsidies: Online businesses get benefits from the government as the government is trying to promote digitalization.
v. Flexible Business Hours: Since the internet is always available. E-business breaks down the time barriers that location-based businesses encounter. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website.
vi. E-business means freedom: Opening an e-business means freedom - freedom of location, freedom to work and freedom to push your company where you want it to go.

i. The different types of economic activities both the friends are engaged in are: Karan is doing Business whereas the occupation of Priyanshu is Employment.
ii. The difference between Business and Employment is given below:

S. No.	Basis	Business	Employment
1	Qualification	There is no minimum qualification required for running a business successfully.	A person should be qualified in accordance with the nature of employment that he/she wishes to take up.
2	Reward	Profit earned is the reward for a businessman.	An employee is paid salary/wages.

Business is the buying, selling and exchange of goods and services for profit motive.
Business activities can be classified into the following two broad categories:
i. Industry: It refers to economic activities in which raw materials are processed and converted into useful products. During the process, value addition to the raw materials takes place, and the final products have a higher value compared with the raw materials. For instance, a piece of cloth has a higher value than the cotton from which it is produced. Therefore, we can say that industries produce goods that are readily consumable by the final consumers. Among the major activities that are performed by industry are production, processing and manufacturing.Industries are classified into three categories:
a. Primary Industry - it includes activity connected with the production of wealth directly from natural resources etc.
b. Secondary Industry - This industry is concerned with converting raw material into finishing product.
c. Tertiary Industry - These industries are concerned with providing those services which facilitate the flow of goods and services.
ii. Commerce: Unlike industry, commerce does not involve manufacturing or production. It basically involves trading and its related activities. Commerce includes exchange of goods and services. It primarily aims at the circulation of these goods and services so as to keep them within the reach of the final consumers. The major commercial activities are transportation, advertisement, packaging, warehousing, banking, communication, etc. Hence, it can be said that commerce bridges the gap between the producers and the consumers. Trade can be further classified into two-internal and external trade.

The functions of retailers are as follows:
i. Financing: Retailers provide goods to consumers often on a credit basis to their regular customers. This increases the level of consumption and hence the standard of living of salaried class.
ii. Supplying market information: Since the retailer is in direct contact with the consumers, he provides information regarding their tastes, preferences, and attitudes, etc. to the wholesaler. This information helps them in making important marketing decisions.
iii. Convenience in buying: Retailers provide goods to consumers according to their requirements through the door to door services or by telephone etc. Usually, they are situated near residential areas and remain open for long hours.
iv. Risk bearing: A retailer has to bear the risk if the change in style and fashion occurs when the goods are stored in large quantities in the warehouses.
v. After sales services: Retailers sometimes provide home delivery and after sales service to costumers.

Four features of wholesale trade are as follows:
i. The wholesale deals in one or few items of goods.
ii. Wholesaler requires a large amount of capital to be invested in the business.
iii. Wholesaler buys goods from the manufacturer in large scale.
iv. Wholesaler sells the goods to retailers as per their requirement.