Business is an economic activity.2. It includes the activities of production or purchase and distribution.3. It deals in goods and services.4. It implies regularity of transactions.5. It aims at earning profits through the satisfaction of customer wants,6. It involves risk, it is not certain that adequate profit will be earned.7. It creates utilities.8. It serves a social purpose by improving people’s standard of living.

Fill in the blank: Business ______ is often defined as the manners, customs, or behaviours that are expected of individuals within a work environment.

Profit is:YOUR ANSWERYour Answerthe income a business makes.the same as revenue.totally dependent on the costs of a business.the difference between a business’s revenue and costs.

Through production,(1) consumers’ needs are fulfilled. (2) consumers’ wants are fulfilled.(3) needs and wants are fulfilled. (4) resources are used to fulfill consumers’ needs.(5) consumers’ standard of living would increase by increasing consumers’ income. (……..)02. Characteristics of business and business activities are given below.A – Fulfillment of needs and wantsB – Motivated by profitC – Existence riskD – Adding value to resourcesE – An economic activity(1) A, B, C (2) B, C, E (3) B, G, E(4) A, D, E (5) B, C, D03. The first stage of business evolution is,(1) personal specialization (2) industrial revolution (3) barter system(4) direct production (5) use of money04. Production sectors and their contents are given in column X and Y respectively in the following table.X YA – Agricultural sectorB – Industrial sectorC – Service sector1. Livestock production2. Frostry works3. Waste management4. Information and communication5. Water treatment and supply6. Dwelling and property businessSelect the answer which correctly matches the production sectors in the column X and their contents incolumn Y.(1) A – 1, 3 B – 2, 5 C - 4, 6 (2) A – 1, 3 B – 2, 4 C – 5, 6(3) A - 1, 2 B – 3, 5 C – 4, 6 (4) A – 1, 4 B – 2, 3 C – 5, 6(5) A – 1, 3 B – 2, 6 C – 4, 5

Define business economics and explain its nature and scope of business economics.

What can we be sure about the revenue a business earns?YOUR ANSWERYour AnswerRevenue is the income a business earns from the sales it makes.The revenue it earns at some stage will decrease.It is difficult to increase revenue.A business cannot change the revenue it earns, so it will remain the same.