ICSE Class 11 Business Studies — Flashcards for Quick Revision

A: Business environment means the forces, factors, and institutions that are internal or external to a business and beyond its control. These forces affect the working, growth, and success of a business

A: Business environment is the set of external factors, geographical factors, and other conditions that are uncontrollable and affect the decisions of a firm or company.

A: Dynamic means that business environment keeps changing over time and is not static. For example, GST introduced in 2017 changed the indirect tax system and affected business operations.

A: An entrepreneur is a person who undertakes an enterprise. Such a person combines labour, capital, and other inputs to produce or sell a product or service, introduces innovation, assembles resources,

A: Richard Cantillon was the first to use the term entrepreneur for economic activities. He described the entrepreneur as an agent who buys means of production at certain prices and sells the product at

A: The concept of entrepreneur is associated with three elements: risk-bearing, organising, and innovating. Risk-bearing means accepting uncertainty, organising means arranging factors of production, and

A: Business risk is the chance of loss in business activities due to events that create adverse situations contrary to expectations. It is linked to future uncertainty and may reduce profit or cause loss

A: Risk is the chance of loss and the possibility of some unfavourable occurrence. In business, this means an enterprise may face loss because future events do not always move as expected.

A: A peril creates the risk, while a hazard increases the degree of risk. Fire is a peril because it creates a chance of loss, while stored petrol is a hazard because it increases the possibility of loss