PDF Notes: Class11_Business_Studies_Final

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    What is the primary objective of business?

    To earn profit.

    What defines a sole proprietorship?

    Single ownership with unlimited liability.

    How does a partnership differ from a sole proprietorship?

    Partnership involves multiple owners sharing profits.

    What is a key feature of a public company?

    Shares are available for public trading.

    What is the role of wholesalers in the supply chain?

    They buy in bulk and sell to retailers.

    What is the significance of retained earnings?

    It is a source of internal financing for growth.

    What is trade credit?

    Credit extended by suppliers allowing delayed payment.

    What is the main function of the National Small Industries Corporation (NSIC)?

    To promote and support small scale industries.

    What is the purpose of the Goods and Services Tax (GST)?

    To unify the tax structure across the country.

    What is a key benefit of international trade?

    Access to a wider market for goods.

    What does the term 'e-business' refer to?

    Conducting business activities using the internet.

    What is the principle of utmost good faith in insurance?

    Both parties must disclose all relevant information.

    What is a letter of credit?

    A bank guarantee for payment to the exporter.

    What is the difference between equity shares and preference shares?

    Equity shares have voting rights; preference shares do not.

    What is the role of the World Trade Organization (WTO)?

    To regulate international trade and resolve disputes.

    What is the significance of a bill of lading?

    It serves as a receipt for goods shipped.

    What is the main advantage of using a debit card?

    Immediate access to funds in the bank account.

    What is the purpose of a pro forma invoice?

    To provide a quotation for goods before sale.

    What is the main characteristic of a departmental store?

    Offers a wide variety of products under one roof.

    What is the primary function of retail trade?

    Selling goods directly to consumers.

    What is the importance of business ethics?

    Guides businesses in making socially responsible decisions.