Activities done without monetary expectation are:

Non-economic activities. Non-economic activities are done for personal, social or sentimental reasons.

A tailor stitching clothes for a customer is:

Economic activity. He earns money, so it is economic.

Which is NOT an economic activity type?

Serving elders at home. Serving elders at home is non-economic.

Commerce consists of:

Trade and aids to trade. Commerce = trade + aids to trade.

Economic activities are performed to earn:

Money or money's worth. They involve money or money's worth.

Maharashtra State Board · HSC Commerce · Class 11 (Std XI)

Class 11 OCM Chapter 1: Introduction of Commerce and Business

Short notes, key concepts, quick revision and practice MCQs with answers

Human activities are economic or non-economic. Economic activities (business, profession, employment) are done to earn money; non-economic ones satisfy personal, social or sentimental needs without monetary expectation.

Key concepts: Introduction of Commerce and Business

Non-economic activities: Done for personal, social, religious, cultural or sentimental reasons, without money in return (e.g. a mother cooking for the family).
Economic activities: Production, distribution and consumption of goods and services for money or money's worth (e.g. a factory worker, a tailor).
Business, profession, employment: The three types of economic activity: business (organised efforts for profit), profession (specialised skilled service for a fee) and employment (work for wages/salary).
Role of profit: Profit is the reward for risk-taking and is needed for survival, growth and expansion of business.
Classification of business: Industry (primary, secondary, tertiary) and Commerce (trade and aids to trade).

Quick revision: important points

Same activity can be economic or non-economic (mother stitching vs tailor stitching).
Commerce = trade + aids to trade (banking, transport, insurance, warehousing, advertising).
Economic activities help people earn a livelihood.

Practice MCQs with answers

Activities done without monetary expectation are:
1. Economic activities
2. Non-economic activities
3. Business
4. Employment
Show answer
Answer: B. Non-economic activities
Non-economic activities are done for personal, social or sentimental reasons.
A tailor stitching clothes for a customer is:
1. Non-economic activity
2. Economic activity
3. Religious activity
4. Voluntary service
Show answer
Answer: B. Economic activity
He earns money, so it is economic.
Which is NOT an economic activity type?
1. Business
2. Profession
3. Employment
4. Serving elders at home
Show answer
Answer: D. Serving elders at home
Serving elders at home is non-economic.
Commerce consists of:
1. Trade and aids to trade
2. Only manufacturing
3. Only mining
4. Only agriculture
Show answer
Answer: A. Trade and aids to trade
Commerce = trade + aids to trade.
Economic activities are performed to earn:
1. Only respect
2. Money or money's worth
3. Only love
4. Only knowledge
Show answer
Answer: B. Money or money's worth
They involve money or money's worth.

All Class 11 OCM chapters

Chapter 1: Introduction of Commerce and Business
Chapter 2: Trade
Chapter 3: Small Scale Industry and Business
Chapter 4: Forms of Business Organisation - I (Private Sector)
Chapter 5: Forms of Business Organisation - II (Public Sector)
Chapter 6: Institutes Supporting Business
Chapter 7: Business Environment
Chapter 8: Introduction to Management

Class 11 OCM notes: all chapters