Business Studies Class XI

68 Important terms related to Class XI Business Studies terms

Advertising
activities which are concerned with informing customers about the product
American Depository Receipts (ADRs)
instruments issued in America by non US companies in order to obtain foreign capital
Auxiliaries to trade
activities which support/facilitate trade
B2B Commerce
transactions between business firms
B2C Commerce
transactions between business and customers
Bank
institution which accepts deposits and provides loans
Borrowed Funds
funds which are raised through loans or borrowings
Business
economic activity which involves production/purchase and sale of goods and services to earn profit
Business Ethics
moral principles governing what is right and what is wrong in business
Business Finance
funds which are used for conduct of business
Business Risk
possibility of earning inadequate profits or suffering losses in business
Business Services
activities used by enterprises to conduct their business
C2C Commerce
transactions between two or more customers
Chain Stores
networks of retail shops, which are owned by the single business enterprise, also known as multiple shops
Commerce
includes activities which are necessary for sale or exchange of goods and services
Company
artificial person having a separate legal entity, perpetual succession and a common seal
Cooperative Society
voluntary association of persons who join together with the motive of welfare of the members
Debenture
acknowledgement of a debt by a company
Departmental Stores
large establishment which sells a wide variety of products and aim to satisfy all needs of the customers under one roof
Departmental Undertaking
public sector enterprises which are formed and operated as a part of the department of the ministry
Economic Activity
activity performed to earn money
Electronic Banking
conduct of banking transactions over the internet using computer and other electronic devices, commonly referred to as e-business
Electronic Business
conduct of business activities over internet or any other computer network, commonly referred to as e-business
Employment
economic activity which involves working for others in return of salary or wages
Entrepreneur
a person who sets up a business
Entrepreneurship
process of setting up a business
Global Depository Receipts (GDRs)
instrument issued abroad by a company to raise funds in some foreign currency
Global Enterprise
a company which has business operations in more than one country, also called MNC (Multinational Corporations)
Government Company
any company in which atleast 51 percent of the paid up capital is held by the central government or by any state government or partly by central government and partly by one or more state governments
Indian Depository Receipts (IDRs)
instrument issued in India to enable foreign company to raise funds from Indian market.
Industry
economic activity which is concerned with conversion of resources into products
Innovation
creating something new
Insurance
activity concerned with providing protection against various risks
Inter Corporate Deposits
short term deposits made by one company with another
Internal Trade
buying and selling of goods within the geographical boundaries of a country
International Business
business activities which take place beyond geographical boundaries of a country
Intra B Commerce
interaction among various departments and persons within the firm
Itinerant Retailers
retailers who keep on moving from place to place to sell their products
Joint Hindu Family Business
form of business organisation in which the business is owned and carried on by the members of a hindu undivided family
Joint Venture
when two or more business firms join together for mutual benefit
Karta
eldest member of a hindu undivided family
Liability
obligation to pay or give back
Market Standing
position of an enterprise in relation to its competitors
Multinational Corporation (MNCs)
a company which has business operations in more than one country, also known as global enterprise
Outsourcing
getting the work done by an outside agency
Owners' Funds
funds provided by owners of the business
Partnership
agreement between two or more persons to run a business and share its profits and losses
Partnership Deed
written agreement which contains the terms and conditions that govern the partnership
Primary Industry
industry which is connected with extraction of natural resources and reproduction of living organisms
Productivity
measure of efficiency, it is calculated by comparing value of outputs with the value of inputs
Profession
economic activity which involves application of specialised knowledge and skills to serve the society
Proprietor
owner of the business, person who owns and manages a business, person who has invested money in a business
Public Deposits
deposits raised by organisations directly from the public
Public Private Partnership
arrangement between public and private sector for provision of public services
Retail Trade
buying of goods and services in relatively small quantities from wholesalers and selling them to the ultimate consumers
Retained Earnings
a part of profits retained in the business for future use
Secondary Industry
industry that takes raw materials as input and creates finished products as output
Share
smallest unit of the capital of a company
Share Capital
capital obtained by issue of shares
Social Responsibility
duty or obligation of business towards various sections of society
Sole Proprietor
a person who owns and manages a business alone
Statutory Corporation
public sector enterprise which is set up by a special act of parliament
Tertiary Industry
industry which is concerned with providing support services to primary and secondary industries
Trade
buying and selling of goods and services to earn profit
Trade Credit
credit granted by one trader to another for the purchase of goods and services
Transportation
movement of goods from place of of production to place of consumption
Warehousing
activity which is concerned with storage of goods
Wholesale Trade
buying and selling of goods and services in large quantities for the purpose of resale or intermediate use