NIOS Class 10 Business Studies Chapter 2 Industry and Commerce

NIOS Class 10 Business Studies Chapter 2 Industry and Commerce Solutions to each chapter is provided in the list so that you can easily browse throughout different chapters NIOS Class 10 Business Studies Chapter 2 Industry and Commerce Notes and select need one. NIOS Class 10 Business Studies Chapter 2 Industry and Commerce Question Answers Download PDF. NIOS Study Material of Class 10 Business Studies Notes Paper 215.

NIOS Class 10 Business Studies Chapter 2 Industry and Commerce

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Also, you can read the NIOS book online in these sections Solutions by Expert Teachers as per National Institute of Open Schooling (NIOS) Book guidelines. These solutions are part of NIOS All Subject Solutions. Here we have given NIOS Class 10 Business Studies Chapter 2 Industry and Commerce Solutions, NIOS Secondary Course Business Studies Solutions for All Chapter, You can practice these here.

Industry and Commerce

Chapter: 2

NIOS TEXTBOOK QUESTIONS ANSWERS

Intext Questions 2.1

1. Tick the correct alternative:

(i) Industry is concerned with production/ distribution.

Ans:- Production.

(ii) Commerce is mainly concerned with production/ distribution.

Ans:- Distribution.

(iii) One who buys and sells in large quantities is a wholesaler/retailer.

Ans:- Wholesaler.

(iv) The medium which moves men, materials from one place to another is called insurance/transport.

Ans:- Transport.

II. Dalmia Oil Mills produce refined oil. The entire production is lifted by Ruchi oil depot, who in turn sells it to various retailers. Mrs. Priti purchased 2 kg of oil from Balaji Groceries. Name the following:

Ans:- 

Intext Questions 2.2

(i) The industries engaged in growing plants are known as 

(a) Construction Industries. 

(b) Manufacturing Industries. 

(c) Extractive Industries. 

(d) Genetic Industries. 

Ans:- (d) Genetic Industries.

(ii) Industries engaged in the construction of building, roads and bridges etc. are known as 

(a) Construction Industries. 

(b) Manufacturing Industries. 

(c) Extractive Industries. 

(d) Genetic Industries. 

Ans:- (a) Construction Industries.

(iii) E-Commerce means buying and selling goods and services. 

(a) Electronically. 

(b) In person. 

(c) Through Post offices. 

(d) Through T.V. 

Ans:- (a) Electronically.

(iv) Aid to trade includes. 

(a) Banking.

(b) Manufacturing. 

(c) Buying. 

(d) Selling. 

Ans:- (a) Banking.

(v) E-Commerce does not include 

(a) A2A. 

(b) B2B. 

(c) B2C. 

(d) G2G.

Ans:- (a) A2A .

1. What do you mean by business? Explain the various types of business activities.

Ans:- The term ‘business’ has been defined by different authors in their own way. According to Urwick and Hunt, “Business is any enterprise which makes, distributes, or provides any article or service, which other members of the community need and are able and willing to pay for it. 

Business activities may be broadly classified into two categories:

(i) Industry: The production side of business activity is referred to as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products. 

The term industry refers to that part of the business activity which is concerned with:

(a) Extracting materials like coal, iron ore, petroleum. (Called extractive industry).

(b) Processing and converting raw materials into finished products like soap, bread, fans, machines, cement (called manufacturing industry).

(c) And Construction activity like buildings, dams, bridges, roads (called construction industry).

(ii) Commerce: Commerce is mainly concerned with distribution of goods. It embraces all those functions which are essential for maintaining a free and uninterrupted flow of goods. Therefore, the term commerce included “trade” and “aids to trade”. 

2. Define e – commerce. Describe its advantages?

Ans:- Commerce or Electronic Commerce means buying and selling of goods and services on the Internet. 

E-Commerce (e-commerce) or electronic commerce, a subset of e business, is the purchasing, selling, and exchanging of goods and services over computer networks (such as the Internet) through which transactions or terms of sale are performed electronically.

The advantages of e – commerce are discussed below: 

(i) Wider choice: With the help of a well-developed computer networking system, business units can operate at the national as well as global level. The customers thus, have a wider choice of products and services. The businessmen also get a wider market for their products and services.

(ii) Improved customer services: Suppliers of goods and services can offer a wide range of services to the customers, before as well as after sales such as information about products, guidance for use, responding to customers’ querries about quality and usefulness of the product, etc.

(iii) Quick response to customer needs: In e-commerce business transactions take far less time as compared to the normal process of buying and selling. This is because the producers cut short the distribution channel and supply products and services directly to consumers.

(iv) Cost saving and price reduction: There is substantial cost saving in business transactions conducted through e-commerce. There is no need to display goods in showrooms or keep large stock in godowns. The number of employees required to carry on the business is less. Thus, the cost of operation naturally comes down. So the customers may get goods at a lower rate.

(v) Market information: Access to market information available through the internet enables business concerns to identify varied customer needs and produce new goods and better services accordingly.

3. What is meant by industry? Discuss various types of industries.

Ans:- The production side of business activity is referred to as industry. It is a business activity, which is related to the raising, producing, processing or manufacturing of products. The products are consumer’s goods as well as producer’s goods. Consumer goods are goods, which are finally used by consumers. E.g. Food grains, textiles, cosmetics etc. 

There are various types of industries. These are mentioned as follows:

(i) Primary Industry: Primary industry is concerned with production of goods with the help of nature. It is a nature-oriented industry, which requires very little human effort. e.g. Agriculture, farming, forestry. fishing, horticulture, etc.

(ii) Genetic Industry: Genetic industries are engaged in re-production and multiplication of certain spices of plants and animals with the object of sale. The main aim is to earn profit from such sale. e.g. plant nurseries, cattle rearing, poultry, cattle breeding, etc.

(iii) Extractive Industry: Extractive industry is concerned with extra or drawing out goods from the soil, air or water. Generally products of extractive industries come in raw form and they are used by manufacturing and construction industries for producing finished products. e.g. mining industry, coal mineral, oil industry, iron ore, extraction of timber and rubber from forests, etc.

(iv) Manufacturing Industry: Manufacturing industries are engaged in transforming raw material into finished product with the help of machines and manpower. The finished goods can be either consumer goods or producer goods. e.g. textiles, chemicals, sugar industry, paper industry, etc.

(v) Construction Industry: Construction industries take up the work of construction of buildings, bridges, roads, dams, canals, etc. This industry is different from all other types of industry because in case of other industries goods can be produced at one place and sold at another place. But goods produced A Building under Construction and sold by constructive industry are erected at one place.

(vi) Service Industry: In modern times service sector plays an important role in the development of the nation and therefore it is named as service industry. The main industries, which fall under this category, include hotel industry, tourism industry, entertainment industry, etc.

4. What are the types of e – commerce?

Ans:- E – commerce can be classified as follows: 

(i) B2B (Business-to-Business): Companies doing business with each other such as manufacturers selling to distributors and wholesalers selling to retailers. Pricing is based on quantity of order and is often negotiable.

(ii) B2C (Business-to-Consumer): Businesses selling to the general public typically through catalogues utilising shopping cart software. By dollar volume, B2B takes the price, and the consumer to do the transaction.

(iii) C2B (Consumer-to-Business): A consumer posts his project with a set budget online and within hours companies review the consumer’s requirements and bid on the project. The consumer reviews the bids and selects the company that will complete the project. C2B empowers consumers around the world by providing the meeting ground and platform for such transactions.

(iv) C2C (Consumer-to-Consumer): There are many sites offering free classifieds, auctions, and forums where individuals can buy and sell things to online payment systems like Pay Bill where people can send and receive money online with ease. eBay’s auction service is a great example of where person-to-person transactions take place everyday since 1995. 

5. What is meant by the auxiliaries to trade? Explain.

Ans:- All activities that facilitate smooth flow of goods from manufacturing centres to the consumption centres are called aids or auxiliaries to trade. 

Aids to trade may be classified into five categories:

(i) Transportation: Selling all the goods produced at or near the production centres is not possible. Hence, goods are to be sent to different places where they are demanded. The medium which moves men and materials from one place to another is called transport.

(ii) Warehousing: Storage is indispensable in these days of mass production. The goods should be stored carefully from the time they are produced till the time they are sold, hence, the need for warehousing. Warehouses are also called godowns.

(iii) Insurance: The goods may be destroyed while in production process or in transit due to accidents, or in storage due to fire or theft, etc. The businessmen would like to cover these risks. Insurance companies come to their rescue in this regard.

(iv) Advertising: Advertising is an effective aid in selling the goods. The producer, through advertisement, communicates all information about his goods, to the prospective consumers and create in them a strong desire to buy the product. Advertising can be carried in different ways. It can be indoor or outdoor. Communicating with people through advertising, when they are in their homes, is called indoor advertising. 

(v) Banking: Now-a days we cannot think of business without banks. To start the business or to run it smoothly we require money. Banks supply money. A bank is an organization which accepts deposits of money from the public. withdrawable on demand or otherwise, and lends the same to those who need it.

6. As a businessman what are the different aids to trade you are using in your daily transaction of business? Comment.

Ans:- As a businessman all aids are necessary in business. 

(i) Transportation: It is not possible to sell all products produced in or near the production centre. Therefore, the goods must be sent to different places where they are needed.

(ii) Warehousing: In today’s mass production, storage is critical. From the moment of manufacture to the moment of sale, the goods must be stored carefully, so storage is required.

(iii) Insurance: Insurance is necessary in a business in which an individual or organisation receives financial protection and reimbursement of damages from the insurer or the insurance company.

(iv) Advertising: Advertising is an effective tool for product sales. Manufacturers of advertisements, all of which are information about their products and potential.

(v) Banking: These days, we cannot think of a business without a bank. To start a business or to run a business smoothly, we need funds. Provide financial and advisory services to small and medium businesses as well as larger corporations.