CBSE SOLUTIONS-2025-26
CLASS-9
UNIT-IV Entrepreneurship Skill-I
Chapter-2 Types of Business Activities
Question-A Fill in the Blanks:
1. A business can be defined as an organisation where goods and services are exchanged for one another or for money.
Answer: Business
2. Managing ____ effectively is critical as a businessman may need to forecast cash flow.
Answer: Finance / Money
3. Once the products are ready, it is important to have a ____ strategy in place to help generate sales.
Answer: Marketing
4.____ business is also called buy and sell or trading business.
Answer: Merchandising
5. An ____ is someone who initiates to organise a project to take benefit of an opportunity and, as the decision maker, decides what, how and how much of goods or services will be produced.
Answer: Entrepreneur
Question B – True or False
1. A manufacturing business uses raw materials, parts or components, labour and factory to assemble finished goods.
Answer: True
2. Textile, car, furniture, and mobile phone industry is a type of hybrid business.
Answer: False
3. A merchant in business sells a product without changing its form.
Answer: True
4. A manufacturing unit of car is found in every local market.
Answer: False
5.Leadership skill is not required to run a business.
Answer: False
Question C – Choose the Correct Answer
1. Under which type of business will you categorise a restaurant, as it provides dining service or offering a fine meal?
(A) Manufacturing
(B) Merchant
(C) Service
(D) Hybrid
Answer: (C) Service
2.Sale of cold bottle of water and serving customer orders is an example of:
(A) Manufacturing
(B) Merchant
(C) Service
(D) Hybrid
Answer: (D) Hybrid
3. A form of organisation where business is owned and controlled by a single individual who bears all the risks and is the only recipient of all the profits. Identify the form of business.
(A) Joint Hindu Family
(B) Association of Persons
(C) Sole Proprietorship
(D) Cooperative Society
Answer: (C) Sole Proprietorship
4. An association of persons who get together to protect their economic interests is called:
(A) Manufacturing
(B) Merchant
(C) Service
(D) Cooperative Society
Answer: (D) Cooperative Society
5. Which of the following values you will not find in an entrepreneur?
(A) Great value of self-determination through excellence
(B) Highly favourable towards challenges of medium risk
(C) Neither too easy nor ruinous challenges
(D) Lack of initiative and fear of risk
Answer: (D) Lack of initiative and fear of risk
Question D – Short Answer Questions
1. Define the term Business.
Answer: Business is an economic activity where goods and services are produced, bought, sold, or exchanged with the main objective of earning profit and satisfying human needs.
2. List the types of business with example.
Answer: Major types of business:
Manufacturing Business – Produces goods using raw materials. Example: Car factory.
Trading/Merchant Business – Buys and sells goods without changing their form. Example: Retail shop.
Service Business – Provides services instead of physical goods. Example: Restaurant, school.
Hybrid Business – Involves both goods and services. Example: Hotels, hospitals.
3. Differentiate between Manufacturing and Wholesaler.
Answer:
Manufacturing
* Converts raw materials into finished goods.
Example: Car company, textile mill.
Wholesaler
* Buys goods in bulk from manufacturers and sells to retailers.
Example:
Grain wholesaler, electronics wholesaler.
4. Give an example of Hybrid Business.
Answer: A restaurant is a hybrid business because it prepares meals (manufacturing) and also provides dining services (service).
5. List the key features of Service-based Business.
Answer: Features:
* Intangible in nature (cannot be touched).
* Inseparable (produced and consumed at same time).
* Cannot be stored for future use.
* Quality depends on skill of service provider.
* Customer satisfaction is the main goal.
Question E – Long Answer Questions
1. What do you understand by a Sole Proprietorship firm?
Answer: A sole proprietorship is a business owned, controlled, and managed by a single individual. The owner provides the capital, takes all decisions, bears the risk, and enjoys all the profits. It is the simplest and oldest form of business organisation. Examples: Small shops, local businesses, beauty parlours.
2. Why is partnership considered by some to be a relatively unpopular form of business ownership?
Answer: Partnership is sometimes unpopular because:
Unlimited liability of partners.
Disputes and differences may arise between partners.
Limited resources compared to companies.
Lack of continuity (business may dissolve if a partner dies or leaves).
Decision-making can be slow as consent of all partners is required.
3. Why is it important to choose an appropriate form of organisation?
Answer: Choosing the right business form is important because:
It decides how much capital can be raised.
It affects the risk and liability of owners.
It influences decision-making power and control.
It determines government rules, taxation, and legal requirements.
It ensures long-term stability and growth of business.
4. Describe Sole Proprietorship and Partnership forms of business.
Answer: Sole Proprietorship:
*Single owner manages and controls business.
*Full profit and risk belongs to one person.
*Suitable for small-scale businesses.
*Quick decision-making and simple setup.
Partnership:
*Business owned by two or more persons (up to 50 in India).
*Partners share profit, risk, and responsibilities.
*Governed by Indian Partnership Act, 1932.
*More capital than sole proprietorship, but disputes may arise.
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