The correct answer is option 2- A-II, B-I, C-IV, D-III.
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LIST I
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LIST II
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A. Economic activity involving the production and sale of goods and services
undertaken with a motive of earning profit by satisfying human needs in society
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II. Business
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B. It helps business firms to overcome the problem of storage and
facilitates the availability of goods when needed
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I. Warehousing
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C. It facilitates movement of raw material, to the place of production and
the finished products from factories to the place of consumption
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IV. Transport
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D. Economic activities which are connected with conversion
of resources into useful goods
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III. Industry
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* Economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society- Business.
Business refers to an occupation in which people regularly engage in activities related to purchase, production and/or sale of goods and services with a view to earning profits. If you look around you will observe that people undertake various activities to satisfy their needs. These activities may be broadly classified into two groups — economic and non-economic activities. Economic activities are those by which we can earn our livelihood, whereas, non-economic activities are performed out of love, sympathy, sentiment, patriotism, etc. For example, manager working in an office and a teacher teaching in a school are doing so to earn their livelihoods and are, therefore, engaged in an economic activity. On the other hand, a housewife cooking food for her family, or a boy helping an old man cross the road are performing non-economic activities since they are doing so out of love or sympathy. Economic activities further divided into three categories namely business, profession and employment. Business may be defined as an economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs in society.
* It helps business firms to overcome the problem of storage and facilitates the availability of goods when needed- Warehousing.
Usually, goods are not sold or consumed immediately after production. They are held in stock to make them available as and when required. Special arrangement must be made for the storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilitates the availability of goods when needed. Prices are, thereby, maintained at a reasonable level through continuous supply of goods.
* It facilitates movement of raw material, to the place of production and the finished products from factories to the place of consumption- Transport.
Transport removes the hindrances of place by moving goods from the place of production to the markets for sale. Transport facilitates movement of goods from one place to another. Production of goods generally takes place in particular locations. For instance, tea is mainly produced in Assam; cotton in Gujarat and Maharashtra; jute in West Bengal and Odisha; sugar in U.P., Bihar and Maharashtra and so on. But these goods are required for consumption in different parts of the country. The obstacle of place is removed by transport through road, rail or coastal shipping. Transport facilitates movement of raw material, to the place of production and the finished products from factories to the place of consumption.
* Economic activities which are connected with conversion of resources into useful goods- Industry.
Industry refers to economic activities, which are connected with conversion of resources into useful goods. Generally,the term industry is used for activities in which mechanical appliances and technical skills are involved. These include activities relating to producing or processing of goods, as well as, breeding and raising of animals. The term industry is also used to mean groups of firms producing similar or related goods. |
