Easy2Siksha Sample Papers
GNDU Most Repeated (Important) Quesons
B.Com 1st Semester
BUSINESS ORGANIZATION
(Based on 4-Year GNDU Queson Paper Trend Analysis: 2021–2024)
Must-Prepare Quesons (80–100% Probability)
SECTION-A (Nature, Scope & Social Responsibility of Business)
1. Concept / Denion / Meaning of Business & Its Types / Scope (4 mes)
2021 (Q2), 2022 (Q1), 2023 (Q1), 2024 (Q1)
Appears every year in some form – Denion, Nature, Scope, or Types of
Business.
2. Social Responsibility of Business (4 mes)
2021 (Q1), 2022 (Q2), 2023 (Q2 – as Business Ethics), 2024 (Q2)
Core recurring topic – may appear as “Ethics,” “Need of Social Responsibility,”
or “Benets of Ethical Business.”
2025 Smart Predicon Table
(Based on 4-Year GNDU Paper Trend: 2021–2024)
Secon
Queson Topic
Years
Appeared
Priority
A
Denion / Nature / Types of
Business
2021–24
Very High (100%)
A
Social Responsibility / Business Ethics
2021–24
Very High (100%)
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Secon
Queson Topic
Years
Appeared
Priority
B
Joint Stock Company – Merits &
Demerits
2021, 2024
High (Emerging
Trend)
2025 GUARANTEED QUESTIONS (100% Appearance Trend)
Top 5 Must-Prepare Quesons (Appeared in All or Almost All Years)
1. Denion / Meaning / Types / Scope of Business
2. Social Responsibility of Business / Business Ethics
High-Probability Trends to Watch for 2025
• “Social Responsibility & Business Ethics” appear every year, so expect a theory-
based conceptual queson again.
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GNDU Most Repeated (Important) Answer
B.Com 1st Semester
BUSINESS ORGANIZATION
(Based on 4-Year GNDU Queson Paper Trend Analysis: 2021–2024)
Must-Prepare Quesons (80–100% Probability)
SECTION-A (Nature, Scope & Social Responsibility of Business)
Concept / Denion / Meaning of Business & Its Types / Scope (4 mes)
2021 (Q2), 2022 (Q1), 2023 (Q1), 2024 (Q1)
Appears every year in some form – Denion, Nature, Scope, or Types of Business.
Ans: Imagine you’re walking through a busy market on a sunny morning.
You see a vegetable seller arranging fresh fruits, a shopkeeper smiling as customers buy
clothes, and a big showroom displaying the latest phones.
Now pause for a second and think — what connects all of them?
Whether it’s a roadside stall or a multinational company, they all exist for one main
purpose — to do business.
Business is everywhere around us. It shapes our economy, provides us goods and
services, creates jobs, and helps a country grow.
But what exactly is “business”? Why do people do it? What are its types and scope?
Let’s explore all this step by step — in a simple and story-like way that makes learning
feel natural.
Meaning and Concept of Business
The word ‘Business’ comes from the word ‘busy’, which means being occupied or
engaged in some work.
So, in simple terms, business means being busy in some economic activity with the
purpose of earning money.
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Business is not just about buying and selling. It’s about creating value — producing
goods, offering services, and satisfying human needs while earning a profit.
Let’s take an example —
When a baker bakes bread and sells it to customers, he is doing business. He invests
money, time, and skill to make bread, sells it at a price higher than the cost, and earns
profit.
That’s the essence of business — investment + production or distribution + profit
motive.
Definitions of Business (Simplified)
To understand the meaning more clearly, let’s see how experts define it:
1. L. H. Haney –
“Business may be defined as human activity directed toward producing or
acquiring wealth through buying and selling of goods.”
➤ Meaning: Business means earning income through trade and production.
2. Urwick and Hunt –
“Business is any enterprise which makes, distributes, or provides any article or
service which others need and are willing to pay for.”
➤ Meaning: Business satisfies the needs of people for a price.
3. B. O. Wheeler –
“Business is an institution organized and operated to provide goods and services
to society under the incentive of private gain.”
➤ Meaning: Business serves society but also aims at personal profit.
Hence, in the simplest way —
Business is any lawful activity undertaken with the objective of earning profit by
producing or selling goods or services to satisfy human needs.
Essential Features of Business
To identify whether an activity is business or not, it must have certain features. Let’s
explore them like a checklist:
1. Economic Activity:
Business is an economic activity — it’s done for earning money, not for love or
charity.
2. Production or Exchange:
Business involves either producing goods or exchanging them for value.
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3. Profit Motive:
The primary aim is to earn profit — profit is the lifeblood of business.
4. Risk and Uncertainty:
Every business faces risks — like changes in price, demand, or competition.
5. Continuous Process:
Business is not a one-time event. It involves continuous buying, producing, and
selling.
6. Customer Satisfaction:
No business can survive without satisfying its customers’ needs.
7. Legal and Ethical:
Business must operate within the law and follow ethical standards.
Objectives of Business
While profit is important, business has several other objectives too. Let’s understand
them simply:
1. Economic Objectives:
o Profit Earning: The main goal of every business.
o Production of Goods & Services: To meet the needs of people.
o Creation of Employment: Businesses provide jobs to many.
o Market Creation: Expanding markets for goods and services.
2. Social Objectives:
o Customer Satisfaction: Providing quality goods at fair prices.
o Social Welfare: Contributing to society through welfare activities.
o Environment Protection: Adopting eco-friendly production.
3. Human Objectives:
o Employee Welfare: Ensuring fair wages, training, and safety.
o Personal Growth: Giving opportunities for self-development.
4. National Objectives:
o Economic Development: Strengthening national income and exports.
o Self-reliance: Reducing dependence on foreign goods.
Hence, a good business balances profit with purpose, serving both the owner and
society.
Types of Business Activities
All business activities can be broadly divided into two categories:
1. Industry
2. Commerce
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Let’s understand both in a humanized and easy way.
1. Industry – The Production Side
Industry refers to all those activities concerned with production and processing of
goods and materials.
It converts raw materials into finished products that can satisfy human wants.
For example:
A cotton mill turning raw cotton into cloth — that’s industry.
Types of Industries:
1. Primary Industry:
Deals with extraction of natural resources.
➤ Example: Farming, Fishing, Mining.
2. Secondary Industry:
Converts raw materials into finished goods.
➤ Example: Textile mills, steel factories.
3. Tertiary Industry:
Provides support services to other industries.
➤ Example: Transport, Banking, Insurance.
So, industry is the backbone of production — it gives us the goods we need.
2. Commerce – The Distribution Side
Commerce begins after production.
It includes all activities that help in the distribution of goods from producers to
consumers.
It ensures that products reach the right people at the right place and time.
Components of Commerce:
1. Trade: Buying and selling of goods.
2. Aids to Trade: Services that support trade such as:
o Transport and Communication
o Banking and Finance
o Insurance
o Warehousing
o Advertising
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So, if industry creates goods, commerce makes sure those goods reach the market.
Types of Business Organizations
Every business needs a structure to operate. Let’s explore the main types of business
organizations with simple examples.
1. Sole Proprietorship:
Owned and run by one person.
➤ Example: A small grocery shop or bakery.
Advantages: Easy to start, full control.
Disadvantages: Unlimited liability, limited resources.
2. Partnership:
Owned by two or more people sharing profit and loss.
➤ Example: A law firm or medical clinic.
Advantages: More capital and skills.
Disadvantages: Disagreements and shared risks.
3. Joint Hindu Family Business:
Operated by members of a Hindu Undivided Family.
➤ Example: Traditional family businesses in India.
Advantages: Continuity and trust.
Disadvantages: Limited growth.
4. Co-operative Society:
Formed for mutual benefit, not for profit.
➤ Example: Amul Dairy Co-operative.
Advantages: Equal voting rights, social welfare.
Disadvantages: Slow decision-making.
5. Joint Stock Company:
A large business owned by shareholders.
➤ Example: Reliance Industries, Tata Motors.
Advantages: Huge capital, limited liability.
Disadvantages: Complex rules, less personal control.
6. Public Enterprises:
Owned and managed by the government.
➤ Example: Indian Railways, LIC.
Advantages: Social welfare, public accountability.
Disadvantages: Bureaucracy, less flexibility.
Scope of Business
Easy2Siksha Sample Papers
The scope of business means the range of activities that fall under business.
Business today is not limited to buying and selling — it covers a wide range of functions
that touch almost every part of our lives.
Let’s divide its scope into three simple dimensions:
1. Production Scope
• Involves manufacturing and creation of goods and services.
• Includes industries like agriculture, mining, manufacturing, construction, etc.
• Ensures continuous innovation and improvement.
2. Marketing Scope
• Includes market research, product promotion, pricing, advertising, and customer
service.
• Helps connect producers with consumers.
• Builds brand loyalty and customer satisfaction.
3. Financial Scope
• Deals with arranging and managing money.
• Involves investment decisions, capital management, and banking.
• Without finance, no business can run effectively.
Importance of Business in Modern Life
Business is not just about profit; it is the foundation of economic and social
development.
Here’s how business plays a vital role in our lives:
1. Provides Goods and Services:
Business fulfills our daily needs — from food to technology.
2. Generates Employment:
Creates jobs at every level, reducing unemployment.
3. Improves Standard of Living:
By offering better products and income opportunities.
4. Contributes to National Income:
Adds to GDP through production and trade.
5. Encourages Innovation:
Inspires creativity and new technologies.
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6. Promotes International Relations:
Through global trade and exchange of goods.
7. Ensures Social Welfare:
Many businesses engage in CSR (Corporate Social Responsibility) activities.
Conclusion: Business – The Pulse of Progress
Imagine a world without business — no shops, no goods, no transport, no income. Life
would stand still.
Business is the engine of modern civilization — it moves money, materials, and minds.
It starts with an idea, grows with effort, and survives with trust.
A businessperson is not just a trader or producer but also a creator of opportunities,
jobs, and innovations.
Thus, business is not merely an economic activity — it’s a lifeline that connects
individuals, society, and the nation.
2. Social Responsibility of Business (4 mes)
2021 (Q1), 2022 (Q2), 2023 (Q2 – as Business Ethics), 2024 (Q2)
Core recurring topic – may appear as “Ethics,” “Need of Social Responsibility,” or
“Benets of Ethical Business.”
Ans: Social responsibility means that while earning profits, a business must also consider
the impact of its actions on society and the environment.
• It is the obligation of business to act in ways that protect and improve the
welfare of society, not just maximize profits.
• In other words: “As society allows a business to exist and grow, the business must
give back by acting responsibly.”
Story Analogy: If society is a garden, businesses are the trees. They take nutrients
(resources, labor, money) from the soil, but they must also give back shade, oxygen, and
fruits.
Why Social Responsibility Matters
1. Moral Obligation
o Businesses use society’s resources, so they must act in society’s interest.
o Example: A company should not sell harmful products just to earn profit.
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2. Long-Term Self-Interest
o A business that cares for society earns goodwill, loyalty, and long-term
survival.
o Example: A company that treats workers well will have more committed
employees.
3. Public Image
o Customers prefer socially responsible companies.
o Example: Brands that promote eco-friendly packaging attract more
buyers.
4. Government Regulation
o If businesses act irresponsibly, governments impose strict laws.
Responsible behavior reduces legal troubles.
5. Better Environment for Business
o Healthy, educated, and prosperous societies create better markets for
products.
Areas of Social Responsibility
Let’s return to Mr. Kapoor’s shoe factory. What responsibilities does he have?
1. Responsibility Towards Shareholders/Owners
• Provide fair returns on investment.
• Ensure transparency and honesty in financial dealings.
2. Responsibility Towards Employees
• Provide fair wages, safe working conditions, and opportunities for growth.
• Respect workers’ rights and dignity.
Story Note: If Mr. Kapoor pays his workers fairly and ensures safety, they will be more
loyal and productive.
3. Responsibility Towards Consumers
• Supply quality goods at fair prices.
• Avoid unfair trade practices like false advertising.
Example: Selling shoes with durable material instead of cheap, harmful substitutes.
4. Responsibility Towards Community and Society
• Avoid pollution, support education, healthcare, and local development.
• Contribute to social welfare programs.
Story Note: Mr. Kapoor could build a water treatment plant to stop polluting the river.
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5. Responsibility Towards Government
• Pay taxes honestly.
• Follow laws and regulations.
Examples of Social Responsibility in Action
• Tata Group: Known for philanthropy, building schools, hospitals, and supporting
rural development.
• Infosys Foundation: Works in education, healthcare, and rural upliftment.
• ITC’s e-Choupal: Helps farmers get fair prices through digital platforms.
These examples show that businesses can balance profit with people’s welfare.
Arguments in Favor of Social Responsibility
1. Business is Part of Society: It cannot ignore social problems.
2. Resources and Power: Businesses have money, technology, and influence to
solve issues.
3. Public Expectations: Modern consumers demand ethical behavior.
4. Sustainable Growth: Profit without responsibility is short-lived.
Arguments Against Social Responsibility
Some critics argue:
• The main purpose of business is profit, not charity.
• Social responsibility increases costs and reduces competitiveness.
• Social problems should be solved by government, not business.
Balanced View: While profit is essential, ignoring social responsibility can harm
reputation, invite legal trouble, and threaten long-term survival.
Recap in a Narrative Table
Stakeholder
Responsibility of Business
Example
Owners
Fair returns, transparency
Honest financial reports
Employees
Fair wages, safety, respect
Safe factory conditions
Consumers
Quality goods, fair prices
Durable shoes, no false ads
Community
Pollution control, welfare
Water treatment plant
Government
Obey laws, pay taxes
Timely tax payments
Wrapping the Story
So, the Social Responsibility of Business is not an optional extra—it is the backbone of
ethical and sustainable growth.
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• Businesses must balance profit with responsibility.
• They owe duties to owners, employees, consumers, community, and
government.
• In the long run, socially responsible businesses earn trust, goodwill, and stability.
Final Analogy: If profit is the fuel of business, social responsibility is the steering wheel.
Without fuel, the car won’t move; without the steering wheel, it will crash. A truly
successful business needs both.
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