Part I
Foundations of Business
2024-25
Chapter 1 .indd 1 13-01-2021 09:40:02
, Chapter 1
Business, Trade and Commerce
LEARNING OBJECTIVES
After studying this chapter, the learner:
i. Appreciates the contribution of business activities in the growth and
development of an economy;
ii. Discusses the concept and objectives of business;
iii. Categorises business activities into occupation, profession, and
employment
iv. Classifies industry in different types;
v. Explains Risk and Profit as a reward of Risk; and
vi. Enumerates factors for starting a business.
2024-25
Chapter 1 .indd 2 13-01-2021 09:40:02
, BUSINESS, TRADE AND COMMERCE 3
Imran, Manpreet, Joseph and Priyanka have been classmates in Class X. After
their exams are over, they happen to meet at a common friend Ruchita’s house.
Just when they were sharing their experiences of examination days, Ruchika’s
father Raghuraj Chaudhary intervenes and asks about their well-being. He also
enquires about their career plans. But none of them had a definite reply. Raghuraj
who himself is a successful businessman tells them about business as a career
opportunity. Joseph gets excited by the idea and says “yes, business is really good
for making lots of money”. Raghuraj tells them that ‘there is a lot more to business
than merely money’. Business activities lead to growth and development of any
country, he added. He further tells them that the roots of business activities can be
traced back to ancient times and how trading helps in the prosperity of the Indian
subcontinent. Priyanka said that they have read about the Silk Route in their history
textbooks. Raghuraj then gets busy with his day-to-day tasks. However, the four
classmates begin raising questions. The conversation of the four classmates focused
on how trading activities were conducted during ancient times. How far can the
roots of trading activities be traced? Why was the Indian subcontinent referred to
as ‘Swaran Bharat and Swaran Dweep’ by the then travellers to India? What made
Columbus and Vasco da Gama undertake journeys to locate India? They decided
to meet the commerce teacher of their school to find out answers to many such
questions about the development, nature and purpose of business.
1.1 Introduction distribution and exchange so that the
needs and wants of customers are
All human beings, wherever they may
satisfied. Business is a major economic
be, require different types of goods
activity which is concerned with the
and services to satisfy their needs.
production and sale of goods and
If we look around, we observe people
require different types of products services required by people. Business
and services to satisfy their needs. is central to our lives. Although our
How do they buy them? They go to the lives are also influenced by many other
market, either physical or electronic institutions in modern society, such as
over internet, where they find variety of schools, colleges, hospitals, political
shops and sellers offering the required parties and religious bodies; business
commodities and choose the best has a major influence on our daily
which they require. lives. It, therefore, becomes important
Have you ever wondered how do that we understand the concept,
these products and services are made nature and purpose of business.
available in the market. The necessity Business starts with production
of supplying goods and services is and end with consumption. Making the
done by different set of people engaged finished products reach the consumer
in various economic activities such involves a series of steps. The work of
as production, manufacturing and production of goods is covered under
2024-25
Chapter 1 .indd 3 13-01-2021 09:40:02
Foundations of Business
2024-25
Chapter 1 .indd 1 13-01-2021 09:40:02
, Chapter 1
Business, Trade and Commerce
LEARNING OBJECTIVES
After studying this chapter, the learner:
i. Appreciates the contribution of business activities in the growth and
development of an economy;
ii. Discusses the concept and objectives of business;
iii. Categorises business activities into occupation, profession, and
employment
iv. Classifies industry in different types;
v. Explains Risk and Profit as a reward of Risk; and
vi. Enumerates factors for starting a business.
2024-25
Chapter 1 .indd 2 13-01-2021 09:40:02
, BUSINESS, TRADE AND COMMERCE 3
Imran, Manpreet, Joseph and Priyanka have been classmates in Class X. After
their exams are over, they happen to meet at a common friend Ruchita’s house.
Just when they were sharing their experiences of examination days, Ruchika’s
father Raghuraj Chaudhary intervenes and asks about their well-being. He also
enquires about their career plans. But none of them had a definite reply. Raghuraj
who himself is a successful businessman tells them about business as a career
opportunity. Joseph gets excited by the idea and says “yes, business is really good
for making lots of money”. Raghuraj tells them that ‘there is a lot more to business
than merely money’. Business activities lead to growth and development of any
country, he added. He further tells them that the roots of business activities can be
traced back to ancient times and how trading helps in the prosperity of the Indian
subcontinent. Priyanka said that they have read about the Silk Route in their history
textbooks. Raghuraj then gets busy with his day-to-day tasks. However, the four
classmates begin raising questions. The conversation of the four classmates focused
on how trading activities were conducted during ancient times. How far can the
roots of trading activities be traced? Why was the Indian subcontinent referred to
as ‘Swaran Bharat and Swaran Dweep’ by the then travellers to India? What made
Columbus and Vasco da Gama undertake journeys to locate India? They decided
to meet the commerce teacher of their school to find out answers to many such
questions about the development, nature and purpose of business.
1.1 Introduction distribution and exchange so that the
needs and wants of customers are
All human beings, wherever they may
satisfied. Business is a major economic
be, require different types of goods
activity which is concerned with the
and services to satisfy their needs.
production and sale of goods and
If we look around, we observe people
require different types of products services required by people. Business
and services to satisfy their needs. is central to our lives. Although our
How do they buy them? They go to the lives are also influenced by many other
market, either physical or electronic institutions in modern society, such as
over internet, where they find variety of schools, colleges, hospitals, political
shops and sellers offering the required parties and religious bodies; business
commodities and choose the best has a major influence on our daily
which they require. lives. It, therefore, becomes important
Have you ever wondered how do that we understand the concept,
these products and services are made nature and purpose of business.
available in the market. The necessity Business starts with production
of supplying goods and services is and end with consumption. Making the
done by different set of people engaged finished products reach the consumer
in various economic activities such involves a series of steps. The work of
as production, manufacturing and production of goods is covered under
2024-25
Chapter 1 .indd 3 13-01-2021 09:40:02
