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At a Glance
• A business is a state of being busy as an individual or as an organization in a profit earning economic activity.
• There are four types of businesses: Manufacturing, Services, Merchandising and Hybrid.
• Sole Proprietorship business is owned by a single person who has day-to-day responsibilities for running the
business.
• Partnership business is legally owned and operated by two or more individuals (partners) for the purpose of earning
profits.
• Corporation is a business organization with a separate legal entity created by individuals or shareholders who come
together to pursue a common goal.
• Limited Liability Company is most suitable and popular for small or low risk businesses and is a blend of sole
proprietorship, partnership and corporation.
• An Entrepreneur is a person who invests his time, energy and money to initiate an exclusive idea for a new venture.
• Entrepreneurship is the act of executing an innovative idea in a business.
• The output of the innovative process of setting up a business is called an enterprise.
• The main elements of entrepreneurship are: Innovation, Organisation,Risk Bearing and Perception.
• Entrepreneurs help in increasing foreign exchange reserves of the country, thereby increasing economic development.
• An entrepreneur should have good social skills to build his network of potential investors, suppliers, customers, and
creditors.
• Feeling a large responsibility for the business may sometimes be scary and brings a lot of mental instability. Funds
management, unpredictable market, employees' reactions and sometimes less time for family may lead to emotional
setback for an entrepreneur.
• An entrepreneur lives his own dreams. He can pursue what he is passionate about in his life.
Exercise
Solved Questions
SECTION A (Objective Type Questions)
uiz
A. Tick ( ) the correct option.
1. In business, which of the following along with the profits is equally important?
a. Family trips b. Child education
c. Old parents' medicine d. Customer Satisfaction
2. Which of the following business type uses raw material, labour, technology, capital and other resources for the
production of finished goods?
a. Manufacturing b. Service
c. Merchandise d. All of the above
3. In which of the following business, service cannot be stored in warehouses or boxes?
a. Manufacturer b. Service
c. Merchandise d. Trading
112 Touchpad Artificial Intelligence (Ver. 2.0)-IX

