Eco - 01 Solved Assignments
IGNOU B.Com ECO-01 Solved Assignments 2011
Course Code: Eco-01
Assignment code: Eco-01/TMA/2010-11
By-Mizbah Khan
Ans1.
Essential Features of Business:
Business refers to the human activities engaged in production and/or exchange of want satisfying goods and services carried with the intention of earning profits. We can list the following five broad features of business:
1 Dealings in goods and services: Business deals with goods and services. The goods maybe consumer goods such as sweets, bread, cloth, shoes, etc: They may be producer's goods such as machinery, equipment, etc., which are used to produce further goods for consumption. Business also deals with services such as transport, warehousing, banking, insurance, etc., which are intangible and invisible goods.
2 Production and/or exchange: You can call an economic activity a 'business' only when there is production or transfer or exchange or sale of goods or services for value. If goods are produced for self-consumption or presentation as gift, such activities shall not be treated as business. In a business activity, there must be two parties i.e., a buyer and a seller. Such activity should concern with the transfer of goods or exchange of goods between a buyer and a seller. The goods may be bartered or exchanged for money.
3 Continuity and regularity in dealings: A single transaction shall not be treated as business. An activity is treated as business only whon it is undertaken continually or at . least recuriently. For example, if a person sells his residential house, it is not contidered as business. If he repeatedly buys houses and sells to others, such activity comes under business. But how frequently the transaction should occur depends on the nature of the activity. For example, a ship building company takes a long time to manufabure and sell a ship. At the same time, a vegetable vendor purchases vegetables from the market in the morning and sells out to his customers by
Course Code: Eco-01
Assignment code: Eco-01/TMA/2010-11
By-Mizbah Khan
Ans1.
Essential Features of Business:
Business refers to the human activities engaged in production and/or exchange of want satisfying goods and services carried with the intention of earning profits. We can list the following five broad features of business:
1 Dealings in goods and services: Business deals with goods and services. The goods maybe consumer goods such as sweets, bread, cloth, shoes, etc: They may be producer's goods such as machinery, equipment, etc., which are used to produce further goods for consumption. Business also deals with services such as transport, warehousing, banking, insurance, etc., which are intangible and invisible goods.
2 Production and/or exchange: You can call an economic activity a 'business' only when there is production or transfer or exchange or sale of goods or services for value. If goods are produced for self-consumption or presentation as gift, such activities shall not be treated as business. In a business activity, there must be two parties i.e., a buyer and a seller. Such activity should concern with the transfer of goods or exchange of goods between a buyer and a seller. The goods may be bartered or exchanged for money.
3 Continuity and regularity in dealings: A single transaction shall not be treated as business. An activity is treated as business only whon it is undertaken continually or at . least recuriently. For example, if a person sells his residential house, it is not contidered as business. If he repeatedly buys houses and sells to others, such activity comes under business. But how frequently the transaction should occur depends on the nature of the activity. For example, a ship building company takes a long time to manufabure and sell a ship. At the same time, a vegetable vendor purchases vegetables from the market in the morning and sells out to his customers by