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REVISIT



              ▶ 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.
              ▶ The main objectives of a business are to meet economic, social, employee and national goals.
              ▶ 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


                                          SECTION A (Objective Type Questions)

        A.  Choose 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


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