Principles of Commerce

I .COM I
According to the Syllabus of FBISE & BISE Rwp.

CHAPTER: 1

CONCEPT OF BUSINESS
Q1: Define Commanded Human Activities?
Ans: All those activities which are under our control and desire play a very important role in it. e.g., walking,
Speaking, and sleeping
Q2: Define Un-commended Human activities?
Ans: All those activities which take place in body and human has no control on it are called un-commanded human
activities. For Example working of stomach, Heart Beating.
Q3:Define the Term Business?
Ans: Any legal Economic activity which is done or performed for the purpose of earning profit is called Business.
For example, Shop keeper, whole seller etc
Q4: Define the Term Profession?
Ans: When a person provides his services to society on the basis of specializes Knowledge and experience in a
particular field is called profession. For example, Doctor, Accountant and professor etc.

Q5: Define Economic and Non-Economic activities?

Ans: Economic activities:

All those activities which are done for the purpose of earning profit or income are called economic activities.
For example, Business, Teaching etc

Non-Economic Activities:

All those activities which done for personal and not for earning profit or income are called non-economic
activities. For example, religious activities, parental activities etc

Q6: What is meant by favorable balance of payment?

Ans: The function and object of business is to make balance of payment favorable by increasing export and by
decreasing import. Because, this position makes the country prominent in the world.

Q7: What is the role of planning in a Good Business?

Ans: Planning Play a very important role in the success of the Business. Planning means what to do, how to do and
when to do. Planning also help to fixed the responsibilities of each person.

Q8: what is the Role of active management in business?

City Standard College

Al Ahmed Plaza Range Road Near Shallay Valley Rwp. Cantt.
Ph: 051-8434139, 0345-5820808 , 0333-5323805 Page 1
 Principles of Commerce
I .COM I
According to the Syllabus of FBISE & BISE Rwp.

Ans: Active Management is the back bone of any business. The top level management has the perform decision making
role while lower level management have to take care of work. Timely decisions are the assets of a business that is
perform by active management. Without management no business can flourished.

Long Questions

Q 1: Define businessman? What are the qualities of a good businessman?

INTRODUCTION

A business man is a person involved in business in particular someone undertaking activities (commercial or
industrial) for the purpose of earning profit. He performs some activities or produce goods in order to make
desirable profit.
DEFINITION

“Business man is a person who is engaged in buying and selling or in production of goods and services to
earn profit”.
OR

‘A businessman is a person involved in the business sector in particular someone undertaking activities
for the purpose of generating cash flow, sales, and revenue by utilizing a combination of human and
capital”.

QUALITIES OF A GOOD BUSINESSMAN

PERSONAL QUALITIES

1) Foresight
A good businessman must have the quality of foresight. He must keep in touch with the business world.
2) Courtesy
Courtesy is to business what oil is to machinery. It costs nothing but wins a reputation. So businessman has
to win the heart of everyone with his polite manners.
3) Bold or Courage
Courage is a great asset of a businessman. A good businessman should be a courageous and bold person.
4) Hardworking
A businessman must be hard working. Without have working no business can be successful. If the owner is
not hard working then other workers of the business can’t be hardworking.
5) Discipline
A good businessman should have to care about the discipline of the business. If he doesn’t care about
the discipline then nobody obeys the discipline
6) Honesty
A businessman should be honest in dealing with others. Honesty of a businessman helps him in his business.

City Standard College

Al Ahmed Plaza Range Road Near Shallay Valley Rwp. Cantt.
Ph: 051-8434139, 0345-5820808 , 0333-5323805 Page 2
 Principles of Commerce
I .COM I
According to the Syllabus of FBISE & BISE Rwp.

7) Personality
A businessman should have a graceful personality because it can impress his customers. If his
personality is not good or not graceful then his business can’t go well.
8) Self-Confidence
A good businessman should have self-confidence. Without self-confidence he can’t make quick
decisions and business suffers a lot.

PROFESSIONAL QUALITIES

9) Ability to Plan
A businessman, if he wants to shine in business, must have the ability to plan and organize it.

10) Activator
He had to activate his workers. If he activates his workers then this is good for business.

11) Cooperation
A good businessman should have to cooperate with his workers. With the help of cooperation with his
workers he can run his business well.

12) Decision Making

A good businessman should be a good and quick decision maker. Quick decision of a businessman is an
important asset of businessman

13) Knowledge
A good businessman should have knowledge of his business. It should be supplemented by the
knowledge of trade, finance, marketing, income tax, etc.

14) Responsibility
A successful businessman should have to realize his responsibilities. If he doesn’t do his duty then his
business can’t go well.

15) Reviewer
A good businessman has to review his mistakes, which he committed in the past, and try his best never
to do it again in his life.

16) Technical Skills

A good businessman must have the knowledge about technical skills. He should have complete
command of specialized knowledge in his field, which he has to perform

City Standard College

Al Ahmed Plaza Range Road Near Shallay Valley Rwp. Cantt.
Ph: 051-8434139, 0345-5820808 , 0333-5323805 Page 3