Class 8 Social Science

KSEEB Solutions Class 8 Business Studies Chapter 1 Components Of Business Studies Points To Remember

The term business is derived from the word ‘busy’. This business means being busy. The shopkeeper, the wholesaler, and the manufacturer are doing business and therefore they are called Businessmen. Business is an economic activity, which is related to the continuous and regular production and distribution of goods and services for satisfying human wants. The activities which are concerned with the production and exchange of goods and services are called economic activities.

Economic activities can be broadly classified into three types they are:

1. Business
2. Profession
3. Employment

• An employer is a person who appoints people to do work under him. The people who are appointed to do the work are called employees. An employer is also called the owner and the employee is called the worker.
• The distribution of goods and services is called the exchange.
• ‘Consumption’ is the art of using services and goods. ‘Consumer’ is a person who buys goods or uses services for his or her consumption.
• The evolution that has taken place in commerce may be called the “evolution of commerce” or “history of business”.
• Commerce is the part of a business that is concerned with the distribution of goods and services.
• The important stages are:

1. Hunting and fishing stage
2. Pastoral stage
3. Agricultural stage
4. Handicraft stage
5. Barter system stage
6. Money Economy stage
7. Town Economy stage
8. International Trade stage

• No economic activity existed during the Hunting and Fishing stage.
• Though man had reached some higher level of development in the Pastoral stage commerce did not exist.
• The simple form of division of labor started in the Agricultural stage.
• The barter system of exchange came into existence in the Handicrafts stage.
• The important problems of the Barter system are Lack of double co-incidence of wants, Lack of common measure of value, Difficulty of subdivision, and Difficulty to store the goods or to transport them.
• Nowadays bank money in the form of cheques, drafts, bills, credit card, debit card, etc., play a very important role.
• Magellan, a Portuguese navigator with the help of the king of Spain, set sail to circum navigate the world.
• That is what we say” Magellan was the first whose ship called Victoria sailed round the world”.
• The Industrial Revolution took place in England.

Components Of Business Studies Exercises

Fill in the blanks with appropriate words in the following sentences:

1. The economic activity that provides technical or specialized personal services to consumers is called a Profession
2. In the olden days, goods were exchanged for goods, which was called the Barter system of exchange.
3. The full responsibility of paper money vests with the Reserve Bank of India.
4. The emergence of communities and villages took place during the Agricultural stage.
5. The main cause for International trade was The Industrial Revolution.
6. Trade and commerce contribute to the economic development of a country by paying taxes and duties to the government.

Class 8 Business Studies Components Of Business Studies KSEEB Notes 

Answer each of the following questions in two or three sentences:

Question 1. What is an economic activity?
Answer: The activities which are concerned with the production and exchange of goods and services are called economic activities.

Question 2. Give the meaning of trade and Commerce.
Answer: Buying and selling goods and services are called trade Commerce is the part of a business that is concerned with the distribution of goods and services.

Question 3. What is meant by the Barter system of exchange?
Answer: The direct exchange of goods for goods or other things is called the Barter system of Exchange.

Question 4. What is a profession?
Answer: A profession is mainly concerned with rendering specialized technical and personal services, Examples:-Lawyers, doctors, chartered accountants, etc.

Question 5. What are aids to trade? Name them.
Answer: The economic activities which help in trade are called aids to trade. The aids to trade include transport, banks, warehouse facilities, advertisement agencies, insurance, etc.

Question 6. What are craft guilds?
Answer: The bodies of craftsmen professionals such as carpenters, blacksmiths, weavers, and builders came into existence are craft guilds

Answer each of the following questions in a paragraph:

Question 1. How do production and exchange play a very important role in our daily life?
Answer: Exchange is the connecting link between production and consumption. The goods produced at a place have to reach consumers at different places. During the course of production, the producers take into consideration, the market study, transportation, storage of goods, determination of price, advertisement, etc.

Question 2. Explain the different types of economic activities.
Answer:
Economic activities can be broadly classified into three types they are:

1. Business
2. Profession
3. Employment

1. Business: It is mainly concerned with the production and exchange of goods and services.
2. Profession: It is mainly concerned with the rendering of specialized technical and personal services. Example:-Lawyers, doctors, chartered accountants, etc.
3. Employment: It is the work undertaken by the people under an employer for salary or wages, for Example:- agricultural laborers, or industrial laborers.

Question 3. What are the difficulties of the Barter System of exchange? How has money solved these problems?
Answer:
The difficulties of the Barter System of exchange are:

• Lack of double co-incidence of wants
• Lack of common measure of value
• Difficulty of sub-division
• Difficulty to store the goods or to transport
• To overcome the difficulties of the Barter system of exchange many mediums of exchange were used, Example:- The skins of the animals, cowry shells, etc., later metals were used as the medium of exchange.

Question 4. Which are the important stages of economic evolution? Briefly explain to anyone.
Answer:
The important stages are:

1. Hunting and fishing stage
2. Pastoral stage
3. Agricultural stage
4. Handicraft stage
5. Barter system stage
6. Money Economy stage
7. Town Economy stage
8. International Trade stage

Components Of Business Studies Additional Questions And Answers

Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:

Question 1. The term business is derived from the word

1. Busy
2. Trade
3. Vyapar
4. Commerce

Answer: 1. Busy

Question 2. Who are not called Businessmen?

1. Wholesaler
2. producer
3. Retailer
4. Consumer

Answer: 4. Consumer

KSEEB Business Studies Chapter 1 Class 8 Multiple Choice Questions 

Question 3. It is mainly concerned with the rendering of specialized technical and personal services.

1. Business
2. Profession
3. Employment
4. Service

Answer: 2. Profession

Question 4. It is the work undertaken by the people under an employer for salary or wages.

1. Business
2. Profession
3. Employment
4. Service

Answer: 3. Employment

Question 5. A person who appoints people to do work under him is

1. Employer
2. Employees
3. Worker
4. Broker

Answer: 1. Employer

Question 6. The people who are appointed to do the work are called

1. Employer
2. Employees
3. Owner
4. Broker

Answer: 2. Employees

Question 7. The distribution of goods and services is called

1. Exchange
2. Production
3. Consumption
4. Distribution

Answer: 1. Exchange

Question 8. The art of using services and goods is

1. Exchange
2. Production
3. Consumption
4. Distribution

Answer: 3. Consumption

Question 9. The stage in which no economic activity existed is

1. Hunting and Fishing stage
2. Agricultural stage
3. Handicrafts stage
4. Barter system stage

Answer: 1. Hunting and Fishing stage

Question 10. The stage in which commerce did not exist is

1. Industrial stage
2. Agricultural stage
3. Handicrafts stage
4. Pastoral stage

Answer: 4. Pastoral stage

Fill in the blanks with appropriate words in the following sentences:

1. The stage in which the simple form of division of labor started is the Agricultural stage
2. The connecting link between production and consumption is Exchange
3. Drafts and bills are Bank money.
4. A Portuguese navigator who set his sail to circumnavigate the world in Magellan
5. The first ship which sailed around the world is Victoria
6. The first navigator whose ship sailed around the world Magellan

Answer each of the following questions in a sentence:

Question 1. What is Business?
Answer: Business is mainly concerned with the production and exchange of goods and services.

Question 2. Who is a consumer?
Answer: ‘Consumption’ is the art of using services and goods. ‘Consumer’.

Question 3. Who are craftsmen?
Answer: To fulfill these requirements some people engaged themselves in making tools and also constructing houses. They were called craftsmen.

Question 4. What are the local markets?
Answer: The producers started meeting at a fixed place at periodical intervals for exchange purposes. They were called local markets.

Answer each of the following questions in a paragraph:

Question 1. Differentiate between Employer and employee
Answer: An employer is a person who appoints people to do work under him. The people who are appointed to do the work are called employees. An employer is also called the owner and the employee is called the worker.

Question 2. Which are the factors producers keep in their minds while producing?
Answer: During the course of production, the producers take into consideration, the market study, transportation, storage of goods, determination of price, advertisement, etc.

Question 3. What is included in commerce?
Answer: Commerce includes production, business, industry, banking, insurance agency, advertisement, transportation, and other factors which facilitate the exchange of goods and services to consumers.

Question 4. Why did the Barter system fail to satisfy consumers?
Answer:
The difficulties of the Barter System exchange are:

• Lack of double co-incidence of wants
• Lack of common measure of value
• Difficulty of sub-division
• Difficulty to store the goods or Lo transport

Question 5. The 21st century is called the age of information technology. Why?
Answer: Internet banking, mobile banking, privatization of insurance, advancement of telecommunication services, online shopping, e-commerce, better transportation facilities, electronic media, and others have spread all over the world.

Class 8 Business Studies Chapter 1 Guide On Components Of Business Studies KSEEB 

Question 6. Differentiate between the Hunting and Fishing stage and the Pastoral stage.
Answer:
Hunting and Fishing stage:

• A man was a wanderer.
• There was no fixed place for him.
• He moved in groups from one place to another in search of food.
• They hunted animals for food. Fishing was also carried out by them.
• They gathered fruits, roots, and nuts for food. They lived in caves or hollows of trees.
• They covered their bodies with the leaves or skins of the animals to protect their bodies from the sun, wind, and rain.
• No economic activity existed during this stage.

Pastoral stage:

• People learned about the domestication of animals.
• The animals were provided food to eat and skins to cover their bodies.
• They moved from one place to another in search of grasslands.
• The man had reached some higher level of development.
• Commerce did not exist.

KSEEB Solutions Class 8 Business Studies Chapter 2 Business And Industry Points To Remember

A business is an organization or enterprising entity engaged in commercial, industrial, or professional activities. A business can be profit earning entity or a non-profit organization that operates to fulfill a charitable mission. Stephenson defines business as, “The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants.”

• The business has two main objectives:

1. Economic objectives
2. Social objectives

• Trade is divided into three types. They are:

1. Home Trade,
2. Foreign Trade
3. Entrepot Trade.

• Trade within the country is called home trade. It is carried through Retailers and Wholesalers.
• Retail trade is carried out in different ways. They are Permanent shops, Itinerant or mobile traders.
• Wholesale traders buy goods in large quantities from producers and sell them to retailers in small quantities.
• The trade between two countries is called foreign trade. Foreign trade can be classified into three types. They are Imports, Exports and Entrepot trade.
• Imports refer to a country buying goods from other countries for its use.
• Exports refer to a country selling its goods to other countries for their use.
• Entrepot Trade refers to buying goods from one country with a view to selling them to other countries.
• Singapore and Middle East countries are the best examples of entrepot trade.
• The industry is concerned with the production of goods, extraction of minerals and also providing some services.
• Primary Industries produce goods by using natural resources, for Example:- agriculture, fishing, dairy farming, mining, etc. These industries are further divided into genetic industries and extractive industries.
• Genetic industries are engaged in the reproduction of different crops, plants, and animals. They help to increase the wealth of a nation, for Example: – through horticulture, dairy farming, poultry farming, etc.
• Extractive Industries are engaged in extracting different raw materials and ores from the earth. (It is also called the non-renewable industry) Example: – Extraction of ores, drilling of oil wells, etc.,
• Manufacturing Industries are engaged in converting raw materials or semi-finished products into finished products. They are mainly labor-oriented and supply finished products to consumers, for Example:- Converting iron ore into steel, Sugar out of sugarcane, etc.
• Construction Industries are engaged in the construction of roads, canals, bridges, etc. These industries help in the quick development of economic activities like – transport and communication etc.
• Cottage industries are also called household industries. Carpentry, smithy, carpet weaving, pottery, blanket making, stone carving, etc. are some examples.
• In our country to avoid such practices, the Government has introduced Public Distribution System.
• Every industrial product must have a seal on its cover pack, which contains the quantity, the date of manufacture, the date of expiry, and the Maximum retail price (MRP). It is a legally mandatory provision.

Class 8 Business Studies Business And Industry KSEEB Notes 

Business And Industry Exercises

Fill in the blanks with appropriate words:

1. The best example of Entrepot trade in Singapore.
2. Cottage industries are mainly concentrated in villages.
3. The manufacture of chemicals is carried out in Small Scale industries.
4. The sole objective of business should be earning Maximum profit.
5. To safeguard the quality of goods Bureau of Indian Standards institution has been started.

Answer each of the following questions in two to four sentences:

Question 1. What is the Business?
Answer: Business is an important economic activity mainly concerned with the production and distribution of goods and services to consumers.

Question 2. Which are the different types of mobile shops?
Answer: The important mobile shops are Hawkers, Peddlers, Street vendors, and Market vendors.

Question 3. Who are wholesalers?
Answer: Wholesale traders buy goods in large quantities from producers and sell them to retailers in small quantities.

Question 4. Name the three types of foreign trade.
Answer:
The three types of foreign trade are:

1. Home Trade,
2. Foreign Trade
3. Entrepot Trade.

Question 5. Mention the important goods produced by a cottage and small-scale industries.
Answer: Carpentry, smithy, carpet weaving, pottery, blanket making, stone carving, etc. are some examples.

Question 6. Which organizations overcome the hindrance of place and risk?
Answer:

• Hindrance of place-Transportation
• Hindrance of Loss-Insurance companies

Question 7. Mention the antisocial activities of traders to earn more profit.
Answer: Some of the antisocial activities of traders are – adulteration, charging excess or abnormal rates, using false weights and measures, creating artificial scarcity by hoarding the goods and carrying out black marketing, etc. These are unethical business practices.

Question 8. What are the steps taken by the government to overcome the antisocial practices in business?
Answer: The Government has introduced Public Distribution System. To maintain the standard of goods and essential commodities the government has opened an institution-Bureau of Indian Standards.ISI and AGMARK marks are printed on goods and commodities to certify their quality etc. Every industrial product must have a seal on its cover pack, which contains the quantity, the date of manufacture, the date of expiry, and the Maximum retail price (MRP). It is a legally mandatory provision.

Business And Industry Answer each of the following questions in eight to ten sentences:

Question 1. What are the economic objectives of business?
Answer: The sole objective of business includes earning a reasonable profit that is sufficient to enable the business to cover the costs and the businessman to lead a normal comfortable life. The business supplies goods and services to the consumers and thus creates consumers. It uses the available resources to produce goods that are sufficient for consumers. It produces such goods that are required from time to time according to changes that take place. It brings changes in production by adopting new techniques. It also enables the consumers to know about the changes in products through advertisement.

KSEEB Class 8 Business Studies Chapter 2 Questions And Answers 

Question 2. What are the social objectives of business?
Answer: Business produces goods and supplies the goods It provides employment to many and pays them fair wages and salaries and helps them to improve their standard of living. It contributes its share to the economic development of a nation by paying rates, taxes, and duties. It also contributes a fair share to the social welfare of the nation by starting and running schools, colleges, and hospitals, and also by maintaining public gardens, etc.

Question 3. Mention the services rendered by retail traders.
Answer:
The services rendered by retail traders are:

• They are the last connecting link in the distribution of goods.
• They supply a variety of goods produced by different producers to consumers.
• They store the goods to meet the demand of the consumers.
• They take the risk of loss in business or loss of goods.
• They grade the goods and supply according to the tastes of the consumers.
• They provide credit facilities to the consumers, give more information about the newly available goods in the market and suggest alternative goods of the particular goods that are not available.

Question 4. List out the different retail traders and write two/three sentence on each of them.
Answer:
The important types are:

• Permanent shops: They are opened at a fixed place and carry out trade.
• Itinerant or Mobile Traders: They do not have a fixed place to carry on their trade. Example: Hawkers, Peddlers, Street traders or Footpath traders, Permanent shops Hawkers Peddlers Street traders.

Question 5. Explain briefly the two types of industries.
Answer: Industries may be classified into two main types. They are Primary Industries and Secondary Industries.

• Primary Industries: produce goods by using natural resources, for Example: – agriculture, fishing, dairy farming, mining, etc. These industries are further divided into genetic industries and extractive industries
• Secondary Industries: They are labor-oriented industries. They are further divided into Manufacturing industries and Construction industries.
• Manufacturing industries: These industries are engaged in converting raw materials or semi-finished products into finished products. They are mainly labor oriented and supply finished products to consumers, for Example:- Converting iron ore into steel, Sugar out of sugarcane, etc.
• Construction Industries: They are engaged in the construction of roads, canals, bridges, etc. These industries help in the quick development of economic activities like – transport and communication etc.

Question 6. What is the need for foreign trade with a country?
Answer: No country in the world is self-sufficient in all the natural resources. Some countries have plenty of natural resources. Using the available natural resources they produce more goods than they require and the excess is exported to other countries. Countries depend on other countries for their requirement and import them. It also helps to foster friendship among the countries.

Business And Industry Additional Questions And Answers

Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:

Question 1. Trade within the country is called

1. Home Trade
2. foreign trade
3. Entrepot Trade
4. Export

Answer: 1. Home Trade

Question 2. The trade carried through Retailers and Wholesaler is

1. Home Trade
2. Foreign Trade
3. Entrepot Trade
4. Export

Answer: 1. Home Trade

Question 3. The traders who carry out their trade at places where consumers live are called

1. Retailers
2. wholesaler
3. Exporter
4. Distributor

Answer: 1. Retailers

Question 4. An Example of mobile Traders is

1. Hawkers
2. Electrical goods seller
3. Shop keepers
4. Shandy sellers

Answer: 1. Hawkers

Question 5. The traders who carry goods on their heads, move from “door to door” and sell their goods.

1. Market sellers
2. Street traders
3. Hawkers
4. Shandy sellers

Answer: 3. Hawkers

KSEEB Business Studies Chapter 2 Class 8 Multiple Choice Questions 

Question 6. The traders who sell their production weekly markets are

1. Market sellers
2. Street traders
3. Hawkers
4. Shandy sellers

Answer: 4. Shandy sellers

Question 7. The trade between two countries is called

1. External trade
2. Internal trade
3. Local trade
4. Local business

Answer: 1. External trade

Question 8. A country buying goods from other countries for its use is called

1. Business
2. Import
3. Export
4. Entrepot

Answer: 2. Import

Question 9. A country selling its goods to other countries for their use is called

1. Commerce
2. Import
3. Export
4. Entrepot

Answer: 3. Export

Question 10. Buying goods from one country with a view to selling them to other countries is called

1. Commerce
2. Import
3. Export
4. Entrepot

Answer: 4. Entrepot

Business And Industry Answer each of the following questions in two to four sentences:

Question 1. Mention the types of retailers.
Answer:
The important types are:

• Permanent shops
• Itinerant or mobile traders.

Question 2. What is foreign trade? Mention its types.
Answer: The trade between two countries is called foreign trade. Foreign trade can be classified into three types. They are Imports, Exports and Entrepot trade.

Question 3. What is business according to Stephenson?
Answer: Stephenson defines business as, “The regular production or purchase and sale of goods undertaken with an objective of earning profit and acquiring wealth through the satisfaction of human wants.”

Question 4. What is trade? Mention its type
Answer: Trade is a part of the business. It is mainly concerned with buying and selling goods to consumers. Trade is divided into three types. They are:

1. Home Trade
2. Foreign Trade
3. Entrepot Trade

Business And Industry Answer each of the following questions in eight to ten sentences:

Question 1. What are the functions of the wholesale Trader?
Answer:

• They deal with one or two types of goods.
• They help the retailers in many ways such as supplying goods to the retailers in small quantities.
• They provide credit facilities to retailers.
• They advertise goods on behalf of the retailers.
• They supply market trends to retailers.
• They do not keep a high margin of profit.
• They render some services to the producers such as market trends and advertise on behalf of the producers. They also provide storage facilities for goods.

Class 8 Business Studies Chapter 2 Guide On Business And Industry KSEEB 

Question 2. Mention the different types of Industries.
Answer:
Types of Industries:

1. Primary Industries:

• Genetic Industries
• Extractive Industries

2. Secondary Industries:

• Manufacturing Industries
• Constructive Industries

Question 3. Differentiate between Primary Industries and Secondary Industries.
Answer:

• Primary Industries: These industries produce goods by using natural resources, for Example:- agriculture, fishing, dairy farming, mining, etc. These industries are further divided into genetic industries and extractive industries.
• Secondary Industries: They are labor-oriented industries. They are further divided into Manufacturing industries and Construction industries.

Question 4. Differentiate between Genetic industries and Extractive Industries.
Answer:

• Genetic industries: These industries are engaged in the reproduction of different crops, plants, and animals. They help to increase the wealth of a nation, for Example:- through horticulture, dairy farming, poultry farming, etc.
• Extractive Industries: They are engaged in extracting different raw materials and ores from the earth. (It is also called the non-renewable industry) Example:- Extraction of ores, drilling of oil wells, etc.

Question 5. Differentiate between Manufacturing Industries and Construction Industries.
Answer:

• Manufacturing Industries: These industries are engaged in converting raw materials or semi-finished products into finished products. They are mainly labor oriented and supply finished products to consumers, for Example:- Converting iron ore into steel, Sugar out of sugarcane, etc.
• Construction Industries: They are engaged in the construction of roads, canals, bridges, etc. These industries help in the quick development of economic activities like – transport and communication etc.

Question 6. Differentiate between Cottage Industries and Small Scale Industries.
Answer:

• Cottage Industries: Cottage industries are also called household industries. They are carried out by craftsmen in their own houses with the help of family members or apprentices (persons who want to learn work). They are mainly concentrated in the villages and produce goods mainly for the local markets. Carpentry, smithy, carpet weaving, pottery, blanket making, stone carving, etc. are some examples.
• Small-Scale Industries: These are organized on a small scale in a particular place (sheds). They use electric power and some machines. They employ laborers and adopt modern techniques. The chemical industry and the manufacture of engineering goods, shoes, bicycles, fans, radios, sewing machines, soaps, and garments are some examples of small-scale industries. The goods are manufactured both for the local and external markets.

Question 7. What are the hindrances to Business, Trade, and Industry?
Answer:
The hindrances of Business, Trade, and Industry are:

• Hindrance of place-Transportation
• Financial Services-Banks
• Hindrance of Loss-Insurance companies
• Hindrance of Time-Storage
• Hindrance of Knowledge-Advertisement

Question 8. How do the banks help businesses?
Answer: In the distribution of goods from the producers to the consumers there is the hindrance or problem of finance. The supply of finance is required in all stages. Money is required to exchange goods. These problems are solved by banks. Banks provide finance to traders and serve to conduct business smoothly.

Question 9. How do Insurance companies help businesses?
Answer: While moving goods from producers to consumers or while the goods are stored in warehouses, There is a problem of damage or destruction. To overcome these hindrances insurance facilities are available. Insurance companies help businesses by making good the loss incurred by fire or water or that caused by natural calamities and thus help for the smooth conduct of business.

KSEEB Solutions Class 8 Business Studies Chapter 3 Forms Of Business Organisations Points To Remember

Today we see different forms of business organizations. They are:

1. Sole trading Concerns,
2. Partnership firms,
3. Hindu undivided family firms,
4. Co-operative Societies.
5. Joint stock companies.

• Sole Trading Concerns is run by a single person. He enjoys all the profits and is fully responsible for losses Sole trader takes the help of his family members or appoints some.
• No legal formalities are required to commence the business.
• Sole trading concerns are not free from some disadvantages. They are: Capital is limited and they cannot expand the business. Since it is run by a single person, managerial ability is limited.
• The limitations of sole trading concerns lead to the formation of partnership firms. Partnership firms were passed in 1932.
• There are several types of partners, but generally, we find Active or working partners, Sleeping partners, Nominal partners, and minors There shall be a deed of partnership.
• Generally, it is in writing, duly stamped, and signed by all the partners.
• No legal formalities are required for the formation of partnership firms.
• Partnership firms are formed by more than two persons, so the capital investment is more.
• The liability of partners is unlimited, so it leads to an increase the credit worthiness.
• Partnership firms can be dissolved easily. Any partner can apply for dissolution by giving fourteen days’ notice or with the consent of all the partners it can be dissolved.
• There is no provision for registration of sole trading concern. The Indian Partnership Act of 1932 provides for the registration of partnership firms.

Forms Of Business Organisations Exercises

Fill in the blanks in the following sentences with appropriate words:

1. The business concern that is owned and managed by a single person is called Sole Trading Concerns
2. The Indian Partnership Act was passed in the year 1932 to regulate the affairs of partnership firms.
3. The minimum number of partners in a line that carries out banking business is 10
4. The Head of the Hindu undivided family business is known as “KARTA”.
5. The only business concern under private business organizations found in India.

Answer the following questions in one or two sentences each:

Question 1. Which are the small-scale business organizations?
Answer:
The small-scale business organizations are:

• Sole trading Concerns.
• Partnership firms
• Hindu undivided family firms.
• Co-operative Societies.
• Joint stock companies

Question 2. How do sole trading concerns help consumers?
Answer: They understand the likes and dislikes of the customers and supply goods accordingly they pay rates, taxes, and duties to the government.

Class 8 Business Studies Forms of Business Organisations KSEEB Notes 

Question 3. What are partnership firms?
Answer: The firms established by more than 2 members are called partnership firms.

Question 4. Who is the sleeping or dormant partners?
Answer: They contribute capital but do not take an active part in the day-to-day transactions of the firm. The profits and losses are shared in proportion to their capital contribution.

Question 5. How is the dissolution of a partnership firm easy?
Answer: Any partner can file a case against the firm or other partners for the dissolution of the firm or for the settlement of accounts.

Forms Of Business Organisations Answer the following questions:

Question 1. Mention any four merits of sole trading concerns.
Answer:

• No legal formalities are required to commence the business.
• It can be started by own capital.
• No difficulties arise in day to day running of the business.
• The owner enjoys all the profits and bears all the losses.
• They directly come into contact with the consumers.
• They render some social services also.
• They provide employment to some people.
• They help in the distribution of wealth.
• They understand the likes and dislikes of the customers and supply goods accordingly they pay rates, taxes, and duties to the government.

Question 2. Mention any four limitations of sole trading concerns.
Answer: Capital is limited and they cannot expand the business. Since it is run by a single person, the managerial ability is limited All the losses are to be borne by a single person. Life of the sole trading concerns may be short, with the death or insolvency of the sole trader, the trading concerns will be closed.

Question 3. How are partnership firms started? Explain briefly.
Answer: The limitations of sole trading concerns lead to the formation of partnership firms. In these firms, two or more persons join together and carry out the business. Partnership firms Act was passed in 1932. According to section 4 of the partnership act, the partnership firm is defined as the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all. The maximum number of partners is fixed to Ten if they carry out the banking business and twenty in case of carrying out general business.

Question 4. Who are the different types of partners?
Answer: There are several types of partners, They are: Active or working partners, Sleeping partners, Nominal partners, and Minor partners.

Question 5. Mention any four merits of partnership firms.
Answer:

• Easy to form
• More capital
• Better efficiency
• Creditworthiness
• Sharing of business loss
• Secrecy of business
• Simple dissolution

Question 6. Mention any four demerits of partnership firms.
Answer:

• Sometimes the disunity among the partners may hamper business and leads to disputes.
• Since the number of partners is limited, the capital contribution is also limited.
• Liability is unlimited, so it discourages many people to join as partners.
• Reckless and foolish decisions of some partners may lead to heavy setbacks
• Partnership firms lack continuity; the death or insolvency of one partner may lead to the dissolution
• It is difficult to transfer the share of partners to others.
• Owing to the lack of control by the government and publishing of accounts, partnership firms can not gain public support.
• The secrecy of the business cannot be maintained since there are two or more two partners.

Question 7. What are the advantages of registering a partnership firm?
Answer:

• A Registered firm can file a suit in a court of law against a third party. But it is not possible in the case of an unregistered firm.
• A Registered firm can file a case against the other partners for the loans they owe to the firm.
• However third parties can file a case against an unregistered firm for the recovery of loans.
• Any partner can file a case against the firm or other partners for the dissolution of the firm or for the settlement of accounts.

KSEEB Class 8 Business Studies Chapter 3 Questions And Answers 

Question 8. Explain briefly about “Hindu undivided family business”.
Answer: They are found only in India. They are formed owned and managed by Joint Hindu families in accordance with “HINDU LAW”. They are the firms that consist of all the male members of the Hindu family, descendants from a common male ancestor. Only three successive generations of male members namely, sons, grandsons, and great-grandsons acquire the birthright or interest in the ancestral property. The eldest or senior member of the family manages the business and he is called “KARTA”. And he is the head of the family. The liability of Karta is unlimited. But the liability of other members is limited to the extent of their share in the business.

Forms Of Business Organisations Additional Questions And Answers

Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:

Question 1. The business where a person is an owner and the manager is

1. Sole trading Concerns
2. Partnership firms.
3. Hindu undivided family firms.
4. Co-operative Societies.

Answer: 1. Sole trading Concerns.

Question 2.The limitations of the sole trading concerns lead to the formation of

1. Joint stock companies.
2. Partnership firms
3. Hindu undivided family firms.
4. Co-operative Societies.

Answer: 2. Partnership firms

Question 3.The Partnership firms Act was passed in

1. 1935
2. 1950
3. 1932
4. 1951

Answer: 3. 1932

Question 4. The partner who takes part in day-to-day business is called

1. Working partners
2. Sleeping partners
3. Nominal partners
4. Minor partners

Answer: 1. Working partners

Question 5. The partner who contributes capital but does not take an active part in the day-to-day transactions of the firm is called

1. Working partners
2. Sleeping partners
3. Nominal partners
4. Minor partners

Answer: 2. Sleeping partners

KSEEB Business Studies Chapter 3 Class 8 Multiple Choice Questions 

Question 6. The Indian Partnership Act was passed in the year

1. 1932
2. 1935
3. 1947
4. 1931

Answer: 1. 1932

Forms Of Business Organisations Answer the following questions in four to five sentences each:

Question 1. What is Certification of Registration?
Answer: The Registrar after satisfaction that all the provisions have been complied with, issues a certificate called “Certificate of Registration”.

Question 2. What is a partnership deed?
Answer: An agreement that is in writing, duly stamped, and signed by all the partners.

Question 3. Who are the Sleeping Partners?
Answer: They contribute capital but do not take an active part in the day-to-day transactions of the firm. The profits and losses are shared in proportion to their capital contribution.

Question 4. Who are the Nominal Partners?
Answer: They neither contribute capital nor take active participation in the day-to-day transactions of the firm. They are not entitled to any share in profit but they are liable for business losses.

Question 5. Who are the Active Partners?
Answer: Active Partners contribute a fixed amount of capital, share profits and losses in proportion to their capital contribution and take an active part in carrying out the day-to-day affairs of the business.

Class 8 Business Studies Chapter 3 Guide On Forms Of Business Organisations KSEEB 

Question 6. Mention the name of different forms of business organizations.
Answer:

• Sole trading Concerns.
• Partnership firms
• Hindu undivided family firms.
• Co-operative Societies.
• Joint stock companies.

Question 7. What are the features of Sole trading Concerns?
Answer:
The features of Sole trading Concerns are:

• It is one of the oldest and simplest forms of business organization.
• It is owned and managed by a single person.
• It is easy to start this kind of business.
• These concerns are run by the sole traders for profits.
• The sole trader uses his own skill and is responsible for all the losses.
• A sole trader takes the help of his family members or appoints some workers to help him in business.
• Generally, they are small in size.

KSEEB Solutions Class 8 Economics Chapter 3 National Income And Sectoral Aspects Of The Indian Economy Points To Remember

National income refers to the total value of goods and services produced annually in a country. Simon Kuznets has defined national income as, “the net output of commodities and services flowing during the year from the country’s productive system in the hands of the ultimate consumers”. Naturally, national income indicates the size of the country’s productive system, the volume of consumption, savings, and investments made in various sectors as well as its transactions with other countries. However, unlike the measurement of individuals, The average income of the people of a country in a particular year is called per capita income (PCI) for that year. In India, the Central Statistical Organization (CSO) estimates and publishes the national income data.

Read and Learn More KSEEB Solutions for Class 8 Social Science

Any economy consists of many activities because people need various goods and services for consumption.
Many other goods are ‘manufactured’, i.e, raw materials are transformed into more useable and storable forms.
The quality of service depends upon the ability of the provider rather than the raw materials unlike in agricultural and manufacturing activities.
The primary sector consists of all nature-based activities like agriculture and allied activities like Sericulture, Horticulture, Animal husbandry, Poultry, Fishery, Floriculture, etc.
The secondary sector also called as manufacturing sector, converts raw materials into finished products.
The tertiary sector is also called Service Sector. It has been growing at a fast rate throughout the world including India.
The service sector is the largest contributor to the national income at 59% and employs about 28% of workers.
Small-scale industries are labor-intensive in character. They generate huge employment opportunities.
Small entrepreneurs stimulate the redistribution of wealth, income, and political power in a society.
The Government of India has taken many measures like Startup India, Standup India, MUDRA Bank, etc. to help small-scale industries.
A holding refers to the area of land cultivated by a household.
Supply of credit from formal sources like banks and co-operatives to the agricultural sector has been inadequate leading to greater borrowing from informal sources at a higher interest rate. Farmers should be guaranteed remunerative prices for their produce. For this purpose, markets and marketing infrastructure need to be strengthened.
An insurance scheme that covers and compensates the losses of farmers for all types of risks needs to be put in place.

Solutions For National Income And Sectoral Aspects KSEEB Class 8 

National Income And Sectoral Aspects Of The Indian Economy Exercises

Fill in the blanks with a suitable word.

1. Per capita income = National income divided by Total Population.
2. The Agency responsible for the estimation of national income in India is Central Statistical Organization.
3. The highest share in the national income of India today is from Tertiary Sector.
4. Small-scale industries are defined in terms of investment.
5. India’s agriculture is said to be Gamble with monsoons.
6. The extent of irrigated areas in India is about 30 percent of the cultivated area.

Answer the following questions and discuss them in groups.

Question 1. Define national income.
Answer: National income refers to the total value of goods and services produced annually in a country.

Question 2. If the total income of a family of 5 members in 2015 was Rs. 567890, calculate the per capita income of the members of the family.
Answer: Percapita Income = National Income / Total population
Percapita Income = 5,67,890/5 = 1,13,578.

Question 3. State how small industries are helpful for the growth of a country like India.
Answer: There were 488.46 lakh enterprises working in the country in 2013-14, which employed 11.14 crores of people with a total investment of Rs. 13,63,700 crores. The share of MSMEs in the national income in 2013-14 was 7.8 percent. They account for 35% of the gross value of the output in the manufacturing sector, about 80% of the total industrial employment, and 40% of the total export of the country.

Question 4. What are the reasons for the decline in the size of agricultural holdings in India?
Answer: As the population dependent on agriculture has increased, the holdings have been subdivided into smaller pieces. According to the Agricultural Census of 2011-12, small (1 to 2 hectare) and marginal (below 1 hectare) holdings together accounted for nearly 85 percent of all holdings. Further, the average size of holdings was just 1.16 hectares in 2011 -12. It is not possible to take up any kind of development work on such a small piece of land. The modem methods of production cannot be conveniently adopted. As a result, productivity is lower and farmers are poorer.

Class 8 Economics National Income And Sectoral Aspects KSEEB Notes 

Question 5. Examine the reasons for the crisis in Indian agriculture.
Answer:
The reasons for the crisis in Indian agriculture are:

Uneconomic size of the cultivated holding.
High population pressure.
Rain-fed farming and recurrence of droughts.
Partial impact of the green revolution.
A decline in public investments in irrigation and other related infrastructure.
Inadequate credit from institutional sources.
Inability to get Remunerative Prices.

Question 6. Discuss the measures to overcome an agricultural crisis in  India.
Answer:

Increasing public investment: There is an urgent need to step up the government investment in drought proofing, water harvesting, research in new varieties of seeds, new cultivation methods that use less water, and retain soil fertility, extension, and training of farmers in adoption of efficient crop production practices.
Expanding credit availability: The small and marginal farmers, who hesitate to approach a bank or any financial institution, should be ensured a greater amount of credit.
Marketing reforms: Farmers should be guaranteed remunerative prices for their produce. For this purpose, markets and marketing infrastructure need to be strengthened.
Crop Insurance: An insurance scheme that covers and compensates the losses of farmers for all types of risks needs to be put in place.
Counseling and moral support: There is a need to set up counseling centers at the village level to provide moral support to distressed farmers so that they do not resort to the extreme step of committing suicide.
Regulating private money lenders: Apart from the above, there is a need to regulate the activities of money lenders so that they do not oppress the poor farmers who have borrowed from them for various purposes.

National Income And Sectoral Aspects Of The Indian Economy Additional Questions And Answers

Choose the correct alternative and Write the complete answer along with its alphabet in the sheet provided:

Question 1. The institute which estimates and publishes the national income data is

1. The Central Statistical Organization
2. Income tax department
3. The National planning commission
4. Finance Department of India

Answer: 1. The Central Statistical Organization

Question 2. The materials are transformed into more useable and storable forms is called

1. Manufactured
2. Raw materials
3. Semi-finished
4. Produce

Answer: 1. Manufactured

Question 3. Some services are more valuable as they

1. Cannot be stored
2. Are costly
3. Are limited
4. Are unlimited

Answer: 1. cannot be stored

Question 4. An Example of the primary sector is

1. Sericulture
2. Industries
3. Transport
4. Communication

Answer: 1. Sericulture

KSEEB Class 8 Economics Chapter 3 Questions And Answers 

Question 5. An Example of the secondary sector is

1. Horticulture
2. Animal husbandry
3. Poultry
4. power generation

Answer: 4. power generation

Question 6. The manufacturing sector is also called as

1. Agrarian sector
2. Secondary sector
3. Tertiary sector
4. Service sector

Answer: 2. Secondary sector

Question 7. The service Sector is also called

1. Agrarian sector
2. Secondary sector
3. Tertiary sector
4. Manufacturing sector

Answer: 3. Tertiary sector

National Income And Sectoral Aspects Of The Indian Economy Answer the following questions:

Question 1. The possession of natural resources will not decide the level of development. Justify.
Answer: African countries are less developed despite having rich natural resources. Thus, it is not merely the possession of natural resources that decides the level of development but also how far these resources are converted into useful goods and services for generating income and wealth.

Question 2. Which are the factors that influence measuring national Income?
Answer:

The rate of economic growth
Changes in average living standards
Changes in the distribution of income

Question 3. What is National income according to Simon Kuznets?
Answer: Simon Kuznets has defined national income as, “the net output of commodities and services flowing during the year from the country’s productive system in the hands of the ultimate consumers”.

Question 4. What is Per Capita Income?
Answer: The average income of the people of a country in a particular year is called per capita income (PCI) for that year.

Question 5. How is Per Capita Income calculated? 
Answer:
Per Capita Income = (National Income)/(Population)

Question 6. Explain the importance of the primary sector.
Answer: In the primary sector, agriculture is the predominant activity and has the largest share of national income. So let us concentrate on the role and importance of agriculture in the Indian economy. Even today, it is considered to be the backbone of our economy.

Question 7. Explain the importance of the secondary sector.
Answer: Industry contributes nearly one-third of national income, has helped in building the basic infrastructure like transportation, power, and communications, and produces a wide array of consumer goods that you use in your daily life.

Question 8. Which activities come under the services sector?
Answer: Telephone services; educational institutions; hospitals; health centers; hotels; restaurants; financial and banking establishments; coaching, training, and consultancy activities; and social service agencies come under the services sector.

Question 9. Explain the importance of the tertiary sector.
Answer: The service sector is the largest contributor to the national income at 59% and employs about 28% of workers. It has helped in attracting a huge amount of foreign capital and in earning large sums of foreign exchange. India earned Rs.5 lakh crores through exports of services in 2014-15.

National Income And Sectoral Aspects KSEEB Class 8 Textbook Solutions 

Question 10. What are the problems of Small Scale Industries?
Answer:
The problems of Small Scale Industries are:

Non-availability of raw materials
Problem of finance
Low technical skill
Marketing problems
Competition from large-scale industries

Question 11. What are the measures undertaken by Government to develop small-scale industries?
Answer: The Government of India has taken many measures like Startup India, Stand up India, MUDRA Bank, etc. to help the small-scale industries.

Question 12. What are the causes of Agricultural Distress?
Answer:
The measures undertaken by Government to develop the small scale industries are:

Uneconomic size of the cultivated holding
High population pressure
Rain-fed farming and the recurrence of droughts
Partial impact of the green revolution
A decline in public investments in irrigation and other related infrastructure
Inadequate credit from institutional sources
Inability to get Remunerative Prices