Ridha Fathima

1. Primary Activities 🌱

These involve taking resources directly from natureExamples:

• Farming

• Fishing

• Mining

• Hunting

1. Entrepreneur vs Manager

• Entrepreneur → A person who starts and runs their own business, takes risks, and is self-dependent.

• Manager → A person who works for someone else and manages tasks without taking business risks.

👉 Key difference:Entrepreneurs take risks + own the business, while managers work under someone and don’t bear risk.

2. Intrapreneur

• An intrapreneur is like an entrepreneur inside a company.

Economic objectives of business mainly focus on earning profit and achieving other goals that support profit-making, such as creating customers, innovation, and efficient use of resources.

Profit EarningProfit is the lifeblood of business, necessary for survival in a competitive market. It helps businessmen earn a living and expand their business by reinvesting profits.

To achieve profit, businesses must also focus on:

(i) Creation of customersA business cannot survive without customers. It must provide quality goods and services at reasonable prices and attract more customers through marketing activities.

(ii) Continuous innovationsBusiness must adapt to changes by improving products, production, and distribution methods. Innovation helps in reducing costs and increasing sales, leading to higher profits.

(iii) Best possible use of resourcesBusiness should use resources like men, materials, money, and machines efficiently by reducing wastage, using machines properly, and employing skilled workers.

Economic Activities

• Done with the aim of earning money

• Involves production, distribution, or exchange of goods/services

• Helps in livelihood and economic growth

• Examples: farming, teaching (job), running a shop, working in an office, factory work

• Result: Income (wages, salary, profit)

Human Activities (Research Points)

Human activities refer to all actions performed by human beings in daily life.

These activities are undertaken to satisfy human needs and wants.

Human activities can be broadly classified into economic activities and non-economic activities.

Economic Activities (Research Points)

Economic activities are performed with the primary objective of earning income.

Business activities are carried out to achieve certain goals called objectives. The objectives of business are classified into five categories:

Economic Objectives

Social Objectives

Human Objectives

National Objectives

Global Objectives

(iii) Regular exchange of goods and services

• Business activities must be carried out regularly and continuously.

• A single or isolated transaction is not considered business.

• Example: Selling an old car once is not business; buying and selling cars regularly is business.

(iv) Requires investment

• Every business needs investment in the form of:

1.3 MEANING OF BUSINESS

Explanation (in simple words)

When you go to the market, you see many goods like food items, clothes, books, phones, etc.These goods do not appear on their own.

👉 First, goods are produced in factories, farms, or workshops.👉 Then, they are transported from the place of production to markets.👉 Finally, they are sold to customers like us.

Apart from goods, many people provide services such as:

• Transport of goods and passengers