NCERT Solutions for Class 11 Business Studies Chapter 1

NCERT Solutions for Class 11 Business Studies Chapter 1 by Extramarks have answers to all the practise questions listed at the end of Class 11 Business Studies Chapter 1 Business, Trade, and Commerce. These solutions are made by subject matter experts while keeping in mind the guidelines prepared by the CBSE.

NCERT Solutions for Class 11 Business Studies – Chapter 1

The NCERT Solutions for Class 11 Business Studies Chapter 1 covers all of the questions listed at the end of Business Studies Chapter 1 in the textbook. Students can be confident that they are referring to accurate study material because the solutions are prepared by our subject-matter experts. 

Access NCERT Solutions for Class 11 Business Studies Chapter 1 – Business, Trade, and Commerce

Class 11 NCERT Solutions Business Studies – Chapter 1  

Referring to these solutions will help students understand how to approach and solve problems from this chapter. Extramarks has consulted subject matter experts to write the explanations for all the answers. The material provided by Extramarks helps students to effectively revise and go through the answers before their exams. 

About Business Studies Class 11 Chapter 1 

Human beings’ various needs must be met, and in order to do so, they must engage in a variety of activities. One of the major economic activities is business. The main function of business is to earn profit from the production of goods and services from raw materials. To understand the topic of business, trade, and commerce, this chapter is divided into two sections.

  • The first section (Section 1) deals with the history of trade and commerce in ancient India.
  • The second section (Section 2) deals with the nature, concept, and purpose of businesses.

Objectives of Learning the Chapter 1 of Business Studies Class 11 

Here are the topics covered in the chapter:

  • History of trade and commerce, including indigenous banking systems and the rise of intermediaries.
  • Role of transport in business, trade, and commerce.
  • Major trade centres in ancient India.
  • Major imports and exports in ancient India.
  • The position of the Indian subcontinent in the world economy (1AD to 1999)
  • Characteristics of business activities
  • Comparison between business employment and professions
  • Classification of business activities
  • Industry and its types 
  • Commerce and its types 
  • Business risk and objectives 
  • Fundamental factors in starting a business.

For a complete understanding of the chapter, students are advised to go through the NCERT Solutions for Class 11 Business Studies Chapter 1 – Business, Trade, and Commerce on Extramarks’s website.

Role of Extramarks in Your Success

Extramarks is India’s no. 1 online learning platform. We provide the best learning assistance and help students perform better for achieving success. The subject matter experts at Extramarks meticulously prepare the study materials that students can access as per their convenience. NCERT Solutions for Class 11 Business Studies Chapter 1 provided by Extramarks are beneficial for students to develop conceptual and fundamental understanding of answers to the chapter’s questions.

Related Questions 

  1. What are some of the Most Commercial Cities in Ancient India? What are the Major Imports and Exports in Ancient India?

Answer: Some of the major cities in ancient India were 

  • Indraprastha
  • Mathura
  • Mohenjodaro
  • Pataliputra
  • Taxila 

The major import items in ancient India were animal products, horses, Chinese silk, linen, wine, flax, gold, tin, silver, lead, amber, copper, coral, etc.

The major export items in ancient India were spices, indigo, wheat, opium, sugar, parrot, sesame oil, cotton, live animals, and animal products (like horns, sapphires, skin, fur, tortoiseshell), etc.

  1. Describe the roles of profit in business briefly  

The profit is the sole purpose of why the business is done, and without it, the sustainability of the business is not possible for a long duration. A part of the profit is reinvested in the business for operating it regularly, and this also helps in the growth of the business. Therefore, the role of profit is crucial in the expansion of the business. 

Q.1 List any five major commercial cities of ancient India?

Ans-

Pataliputra known as Patna today.
Peshawar (commercial transaction between India, China and Rome in the first century A.D.)
Taxila (Land route between India and Central Asia)
Indraprastha (commercial junction on the royal road where most routes leading to the east, west, south and north converged)
Mithila (traded at ports on the islands of java, Sumatra and Borneo)

Q.2 What is Hundi?

Ans-

Hundi is an instrument of exchange which was prominent in the subcontinent. It involved a contract which

  • Warrant the payment of money, the promise or order which is unconditional
  • Capable of change through transfer by valid negotiation.

Q.3 List the major exports and imports in ancient India.

Ans-

Exports Imports
Spices Horses
Wheat Animal products
Sugar Chinese silk
Indigo Flax and Linen
Opium Wine
Sesame oil Gold
Cotton Silver
Parrot Coral
Animal products like hides, skin, furs, horns, pearls, etc. Glass
Amber, etc.

Q.4 What were the different types of Hundi in use by traders in ancient times?

Ans-

Name of Hundi Border Classification Functions of Hundi
Dhani-jog Darshani Payable to any person-no liability over who received payment.
Sah-jog Darshani Payable to a specific person. Someone ‘respectable’. Liability over who received payment.
Firman-jog Darshani Hundi made payable to order.
Dekhan-har Darshani Payable to the bearer.
Jokhmi Muddati Darwn against dispatched goods. If goods lost in transit, the drawer or holder bears the costs and the Drawee carries no liability.

Q.5 What do you understand by maritime trade?

Ans-

Maritime trade is the kind of trade that involves the transport of goods through the sea, using ships.

Maritime trade was another important branch of global trade network. Malabar Coast, on which Muziris is situated, has a long history on international maritime trade going back to the era of the Roman Empire.

Q.6 Discuss the development of indigenous banking system in Indian subcontinent.

Ans-

Indigenous banking system played a prominent role in lending money and financing domestic, and foreign trade with currency and letter of credit. With the development of banking, people began to deposit precious metals with lending individuals functioning as bankers or Seths, and money became an instrument for supplying the manufacturers with a means of producing more goods.

Documents such as Hundi and Chitti were in use of carrying out transactions in which money passed from hand to hand. Hundi is an instrument of exchange, which was prominent in the subcontinent. It involved a contract which (i) warrant the payment of money, the promise or order which is unconditional (ii) capable of change through transfer by valid negotiation.

The emergence of credit transactions and the availability of loans and advances enhanced commercial applications. The Indian subcontinent enjoyed the fruits a favourable balance of trade, where exports exceeded imports with large margins and the indigenous banking system benefitted the manufacturers, traders and merchants with additional capital funds for expansion and development.

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FAQs (Frequently Asked Questions)

The financial instrument developed in the medieval period of ancient India to carry out all the transactions related to trade and credit was called Hundi. The process of making this unconditional order was to provide writing made by the person directing another to pay a certain amount of money to the individual named in the order. However, it was impossible to change it through transfer after valid negotiation.

In medieval India, the types of Hundi used by ancient traders based on their purposes were:

  • Shah Jog Hundi
  • Jokhmi Hundi 
  • Nam Jog Hundi 
  • Dhani Hundi 
  • Jawabi Hundi 
  • Darshani Hundi 
  • Miadi or Muddati Hundi 

Business activities can be broadly categorised into two, namely – Industry and Commerce. Industry involves all activities concerned with the processing of raw materials to create the final product. The role of industries is to provide a transformed product using the raw materials, to the end-users or consumers. Industries can be further classified according to their function into primary, secondary, and tertiary. 

Commerce deals with the trading of related activities like the exchange of services and goods. Commerce provides a vital link between producers and consumers. The two types of commerce activities are trade and auxiliaries to trade. 

Various economic activities associated with the conversion of resources into useful goods are generally termed industry. Industries conduct the producing and processing of goods, as well as, breeding and raising of animals or producing a bulk quantity of similar goods.

The various types of industries are: 

  • Primary industries: Industries that are concerned with the extraction and production of natural resources and reproduction and development of living organisms etc. For example, farming, hunting, mining, lumbering, and fishing operations.
  • Secondary industries: These are concerned with the conversion of the materials, which have already been extracted in the primary industries. For example, construction and engineering industries, manufacturing industries, etc. 
  • Tertiary industries: Tertiary industries are responsible for providing support services to primary and secondary industries. For example, insurance, warehousing, transport, communications, banking, advertising, and packaging. 

 

The major exports and imports in ancient India were:

Exporting items like wheat, spices, sugar, opium, parrot, sesame oil, indigo, cotton, live animals, and animal products – hides, skin, furs, horns, tortoise shells, pearls, sapphires, quartz, crystal, lapis, lazuli, granites, turquoise, and copper, etc.

Importing items like animal products, horses, Chinese silk, wine, flax, linen, various metals, and stones like rubies, glass, amber, coral, etc.

Five major commercial cities of ancient India are as follows:

  • Pataliputra (Patna)
  • Peshawar
  • Taxila
  • Mathura
  • Indraprastha 

Extramarks offers Class 11 NCERT Solutions for Chapter 1. These solutions are prepared by subject matter experts. The use of examples and pictures in preparing the solutions makes them interesting and easy to understand for students.