business
CHAPTER: INTRODUCTION TO BUSINESS
1.1 HUMAN ACTIVITIES
Meaning of Human Activities
Activities that human beings perform in daily life are called human activities.
Human activities are divided into two types:
Economic activities
Non-economic activities
ECONOMIC ACTIVITIES
Meaning
Economic activities are activities performed to earn money or income.
Examples
Farmer growing crops to sell
Factory or office employees working for salary
Businessperson buying and selling goods for profit
Main Features
Earning motive
Creates wealth
Uses resources like land, labour, capital
NON-ECONOMIC ACTIVITIES
Meaning
Non-economic activities are activities not done to earn money, but for satisfaction, duty, fitness, or recreation.
Examples
Visiting a temple
Helping flood or earthquake victims
Playing sports for fun
Gardening
Watching TV or listening to radio
Main Features
No earning motive
Gives satisfaction and happiness
Based on emotions and feelings
II. Economic or Non-Economic
i. Playing football with friends – Non-economicii. Teaching in a school – Economiciii. Attending a sick relative – Non-economiciv. Listening to radio – Non-economicv. Selling fruits and vegetables – Economicvi. Cooking at home for family – Non-economicvii. Working in an office – Economic
1.2 TYPES OF ECONOMIC ACTIVITIES
Economic activities are done regularly to earn money and are called occupations.
Types of Occupations:
Business
Profession
Employment (comes later in the chapter)
BUSINESS
Meaning
Business is an occupation where goods and services are produced and sold regularly to earn profit.
Examples
Manufacturing
Trading
Transport
Banking
Insurance
Mining
PROFESSION (IMPORTANT)
Meaning
A profession is an economic activity in which people provide specialized services after getting proper education and training.
Examples
Doctor
Lawyer
Teacher
Chartered Accountant
Engineer
Key Points (Very Exam-Important)
Requires special knowledge
Needs qualification and training
Follows a code of conduct
Earns income as fees or salary
Service motive is important