NCERT Solutions for Class 11 Business Studies

NCERT - Business Studies

Business Studies is one of the important subjects of the Commerce stream which deals with the study of Economics and Management. As it is a relatively new subject for the Class 11 Commerce students, therefore, they must refer to the NCERT books for clearing their basics. But when students are facing difficulty while solving some of the complex questions, they can refer to the NCERT Solutions for Class 11 Business Studies.

Students can solve their doubts by referring to these solutions. The NCERT Solutions for Class 11 Business Studies have been prepared to help students to comprehend the difficult topics easily. These solutions strengthen your foundation, and at the same time enhance your ability to tackle different types of questions with ease.  Going through these solutions will make you exam-ready and will go a long way in helping you improve your overall score in the examination.

The modules of Business Studies include Foundations of Business and Finance and Trade. All these topics have to be grasped properly to understand the emerging modes of business and how internal trade and international business work. Our well-experienced subject matter experts, who have curated the NCERT Solutions for Class 11 Business Studies have explained these topics in an easy-to-understand language.  

The NCERT Solutions have been prepared in accordance with the latest CBSE syllabus. The solutions have been arranged in chapter-wise sequence to facilitate easy browsing. 

NCERT Solutions for Class 11 Business Studies  (Chapter-Wise Description)

Chapter 1: Business,Trade and Commerce

In Class 11 NCERT Business Studies Chapter 1, you will study about important topics like the development of trade and commerce, basic factors before starting a business among others. Also, the practice of Hundi by Indian Merchant Communities and its functions are explored in this chapter. 

Moving further, you will understand the concept of Transportation, including land and water, which was popular in ancient times and helpful in maintaining trade. The second part of the chapter introduces you to the nature and concept of Business. Also, the characteristics of business activities and classification of the same. 

The economic activities through which conversion of resources into useful goods are called Industries. Also, the different types of Industries, like Primary, Secondary, and Tertiary are discussed briefly. 

Later, another vital topic of commerce, consisting of two main activities-trade and auxiliaries to trade. Further, objectives, multiple aims, risks, and crucial factors involved in business are discussed briefly.

List of Topics

  • History of Trade and Commerce
  • Transport
  • Nature and Concept of Business
  • Industry
  • Commerce & Trade
  • Business Risks

Type of Questions: Solve short answer questions, long answer questions, fill in the blanks given in the chapter. 

Chapter 2: Forms of Business Organisation

In chapter 2 of NCERT Class 11 Business Studies, you will learn different forms of business organisations. Further, the topics like features, merits, limitations associated with proprietorship are discussed to help you in understanding the chapter thoroughly. 

Then, Joint Hindu Family Business is the organisation that is found only in India. Being one of the oldest forms of business, its essential features are control, formation, continuity, liability and minor members. Also, know its merits and limitations. The next type of Business organisation is Partnership. 

The Indian Partnership Act 1932, defines Partnership as the relation between two persons who decides to share the profit and loss of the business. Also, learn features, types, limitations and merits related to Partnership Business. 

Later, Cooperative Society in which people work together with others for a common purpose. You will also study the common features, merits, limitations and classification of the same. Next Business category is Joint Stock Company. Also, topics of types of companies and choices of the Business organisation are explored in the chapter. 

List of Topics in the Chapter:

  • Sole Proprietorship
  • Joint Hindu Family Business
  • Partnership
  • Cooperative Society
  • Choice of a form of Business Organisation

Type of Questions: Multiple-choice questions, short and long answer type questions. 

Chapter 3: Private, Public and Global Enterprises

The organisation which affect our daily economic life and become part of Indian Economy are classified into two sectors-public and private. The business owned by individuals or group of people come under Private sector, and businesses that are owned and controlled by government are referred to as Public sector.  

There are three kinds of public sector enterprises, Government Company, Departmental Undertaking and Statutory Corporation. Also, the changing role of public sector enterprises is discussed in the chapter briefly. 

Global Enterprises are large industrial organisations which seem to extend their marketing and industrial network. The important term Majority Owned Foreign Affiliates (MOFA) is introduced and explained in the chapter. Also, learn different features of Global Enterprises. 

When two organisations join hands for mutual benefits are termed as Joint Ventures. These joint ventures can either be private or government-owned. These are of two types- Contractual Joint Venture and Equity-based joint venture. Further, Contractual Joint Venture is divided into Cooperation Agreement/Strategic Alliances, and Equality-based are divided into Partnership, Company and Limited Liability Partnership. 

List of Topics in the Chapter:

  • Private & Public Sector
  • Forms of Organising Public Sector Enterprises
  • Changing Role of Public Sector
  • Global Enterprises
  • Joint Ventures

Type of Questions: Attempt short answer type questions, long answer type questions and multiple-choice based questions given at the end of NCERT Class 11 Business Studies Chapter 3. 

Chapter 4: Business Services

The intangible activities that provide the satisfaction of wants and are not linked with products are termed as Services. The intangibility, inventory, involvement, inconsistency, inseparability are the five major features of services. Also, the major differences between services and goods are explained in the chapter. 

The three basic categories of services are Social services, Personal services and Business services. A company where the business of banking like accepting, lending, depositing of money from the public is termed as Banking. Also, features, types, functions of banks are explored in the chapter. 

The concept of Insurance with its functions, principles are provided in the chapter briefly. Also, the different types of insurance policies like fire insurance, marine insurance are covered in the topic. 

For establishing links with the outside world, i.e. with customers, competitors and suppliers; communication services are essential for every business type. The two major communication services are- Postal and Telecom. Later, transportation and warehousing used in the business are discussed. 

List of Topics in the Chapter:

  • Nature of Services
  • Types of Services
  • Banking
  • Insurance
  • Communication Services
  • Transportation

Type of Questions: Multiple-choice based questions, short & long answer type questions. 


Chapter 5: Emerging Mode of Business

The conduct of industry, trade and commerce using the computer networks is defined as e-Business. Also, e-Commerce consists of firm’s interactions with the customers and suppliers over the internet. The scope of the same is wide, covering all types of business sectors. 

In this chapter, you will find brief discussions of various constituents of e-Businesses like B2B Commerce, B2C Commerce, Intra B Commerce, and C2C Commerce. The different advantages and limitations of e-Business are further discussed in the next sub-topic of the chapter. 

There are three stages of online transaction, which you will learn in the lesson, starting from registration to payment mechanism. Also, understand the challenges linked with the e-Business such as transactions risks, data storage risks, and the threat to intellectual property and privacy.  

Later, the concept of Outsourcing, its scope, features, need for Outsourcing, concerns over Outsourcing are thoroughly explained in the chapter. 

List of Topics in the Chapter:

  • e-Business
  • Benefits of e-Business
  • Limitation of e-Business
  • Online Transactions
  • Security and safety of e-Business
  • Resources required for successful e-Business
  • Outsourcing

Type of Questions: Short answer type questions, long answer type questions and multiple-choice based questions. 


Chapter 6: Social Responsibilities of Business & Business Ethics

The obligation to take decisions after considering objectives and values of society is termed as the social responsibility of business. Also, learn the need for the social responsibility of business and arguments for the social responsibility of business.  

Further, you will learn about the different kinds of social responsibility in NCERT Class 11 Business Studies Chapter 6. Also, understand the social responsibility towards the shareholders, workers, consumers, government and different communities. 

The protection of the environment is also a part of the Social Responsibility of business. There are two kinds of environmental damage, which are man-made and natural. The causes of pollution and the need for pollution control are discussed in the chapter. 

The relationship between objectives, practices, techniques and goods for society come under Business Ethics, which is a major part of every business. Then, elements of business ethics are covered  in the concluding part of the chapter.  

List of Topics in the Chapter:

  • Concept of Social Responsibility
  • Need for Social Responsibility
  • Kinds of Social Responsibility
  • Social Responsibility towards different interest groups
  • Business and Environmental Protection
  • Business Ethics 

Type of Questions: Attempt short and long answer type questions, multiple-choice questions provided at the end of the chapter. 


Chapter 7: Formation of a Company

Chapter 7 of NCERT Class 11 Business Studies describes the stages in the formation of a Company and the steps needed in each stage of the formation. The process of formation of a company is divided into three distinct stages- Promotion, Incorporation and Subscription of Capital. 

Promotion deals with the business idea and the implementation to form a company. Then, a promoter is a person who undertakes all the required steps to form a company. Also, various functions of the promoters are discussed thoroughly. 

The required documents for submitting the form of a company are Memorandum of Association, Articles of Association, Consent of Proposed Directors, Agreement, Statutory Declaration, and Receipt of Payment of fees.  

Later in the chapter, you will learn about Incorporation and effects of the certification of Incorporation. Then, if a company raises the required funds from the public by means of issues of securities like shares, debentures etc. are termed as a capital subscription. There are six steps, which are needed to raise funds from the public.  

List of Topics in the Chapter:

  1. Formation of the Company
    1. Promotion of a Company
    2. Functions of a Promoter
    3. Requirement of documents
    4. Incorporation
    5. Capital Subscription

Type of Questions: True or false, MCQs, short and long answer type questions. 


Chapter 8: Sources of Business Finance 

Business Finance is considered as the finance required by the business to establish and run various operations. Also, the classification of sources of funds accessible for business is divided into three major bases. The three platforms are- on the basis of the period, ownership and the source of generation. 

Then, sources of finances are discussed, which are Retained Earnings, Trade Credit, Factoring, Lease Financing, Public Deposits, Commercial Paper, issue of Shares, Debentures, Commercial banks, and Financial Institutions. Also, you will learn about their merits, limitations and different features. 

Moving ahead in chapter 8 of NCERT Class 11 Business Studies, you will study another major topic which is International Financing. The international sources from which funds can be raised are International Capital Markets, International Agencies & Development Bank etc. 

Later, you will know the factors affecting the choices of the sources of funds, including long term, short term, fixed and fluctuating.  The various factors such as cost, control, risk profile, flexibility & ease, tax benefits, among others. 

List of Topics in the Chapter:

  • Meaning, Nature and Significance of Business Finance
  • Classification of Sources of funds
  • Sources of Finance
  • International Financing 

Type of Questions: Multiple-choice based questions, short and long answer type questions. 


Chapter 9: Small Business and Entrepreneurship

The size of the business in our country is marked with reference to small businesses and small industries. Then, the classification of enterprises into two categories- services and manufacturing. Further, these classification is divided into three types of enterprises.

Proceeding further, understand the role of small business in India and Rural India. The next topic to consider is the problems of small business, including finance, marketing, raw materials, labour, quality, managerial skills, technology, sickness, global competition, and capacity utilization. 

Then, the different assistances provided by the government to help small scale businesses. The support measures and programs introduced by the government for the promotion of small and rural industries are- The District Industries Centers, Rural & Women Entrepreneurship Development and many more. 

The concluding part of the chapter includes Entrepreneurship Development, characteristics of Entrepreneurship, Startup India scheme, types of IPs are thoroughly explained. 

List of Topics in the Chapter:

  • Types of Small Business
  • Role of Small Business in India
  • Role of Small Business in Rural India
  • Problems of Small Business
  • Government Assistance to Small Business
  • Entrepreneurship Development

Type of Questions: Attempt short and long answer type questions given at the end of the chapter to make crystal-clear concepts.  


Chapter 10: Internal Trade

The exchange of goods and services to earn profit are classified into two categories-internal trade and external trade. The buying and selling of goods and services within the boundaries of any particular nation are referred to as internal trade. 

The wholesale trade deals with the buying and selling of goods and services in large quantities. Also, learn the services of wholesalers, manufacturers, retailers and consumers. The selling of goods and services directly to the consumers are termed as retailers. 

The classification of retailers is done on the basis of ownership, size, and merchandise. The Itinerant retailers, fixed shop retailers, are then discussed in the lesson. Then, fixed small retailer shops, including general stores, departmental stores, chain stores, multiple stores, are also described briefly. 

List of Topics in the Chapter:

  • Internal Trade
  • Wholesale Trade
  • Retail Trade
  • Types of Retailing Trade
  • Role of Commerce

Type of Questions: Solve short answer type questions and long answer type questions. 


Chapter 11: International Business

The business activities that take place across the national frontiers are referred to as an international business. It involves not only buying and selling of goods and services but also production and marketing of goods and services. 

The major differences between international and domestic business are discussed covering their objectives, hurdles etc. The term called proforma invoice is introduced, which is related to export procedures. Other steps like docking charges to the port, pre-shipment finance from the bank, production or procurement of the goods are further explored. 

The import procedures like several formalities, import license, import-export code, documents, acceptance of bill are further provided in the chapter. Later, you will read the various International Trade Institutions which help in promoting import and export of business and their services. 

List of Topics in the Chapter:

  • Meaning of International Business
  • Export-Import Procedures & Documentation
  • Foreign Trade Promotion
  • International Trade Institutions

Type of Questions: MCQs, short answer type questions, long answer type questions. 

Benefits of Using NCERT Solutions for Class 11 Business Studies

  • The solutions have been curated by the expert teachers of Goprep, who are well-experienced in their domain.
  • Solutions to all the questions of the NCERT Book of Business Studies for Class 11 have been provided.
  • Use of easy-to-understand language in the NCERT Solutions helps students in getting clarity of the subject matter.
  • Utilizing the NCERT Solutions for Class 11 Business Studies will help students in understanding the concepts better.
  • Error-free solutions have been provided, which will help students in solving the questions accurately.
  • The solutions can be accessed from anywhere without incurring any cost.


Which features are included in the NCERT Solutions?

These solutions are a compilation of the answers to the questions given in the NCERT books, which have been prepared in accordance with the latest syllabus of the Central Board of Secondary Education (CBSE). The solutions have been prepared by teachers who have many years of experience in their field. Lucid language has been used while preparing the answers so that students can understand every point discussed in the answers.

How will the NCERT Solutions for Class 11 Business Studies help me in getting a good score in the exam?

All the questions asked in the subject of Business Studies Class 11 are from the NCERT books. Therefore, solving every question of all the chapters of these books becomes a must. In such a scenario, the NCERT Solutions come to the rescue as going through these solutions will help students in scoring better. Additionally, students can also solve the previous years’ papers for securing a good score in the exam.

How long do I need to go through the entire NCERT Class 11 Business Studies     Solutions? 

The amount of time required to cover the entire solutions depends on your study plan. If you use these solutions regularly while solving questions from the NCERT books, the syllabus can be covered well before the commencement of the exam.

Will I get answers to all the chapters in NCERT Solutions For Class 11 Business Studies?

The NCERT Solutions offered by Goprep cover all the chapters of Class 11 Business Studies. The subject experts have provided error-free solutions to all the questions of every chapter. 

Final Words

Class 11 Commerce students might initially face a problem in understanding the complex topics of Business Studies as this subject is new for them. NCERT Solutions will students to overcome the challenges posed by this subject. Preparing with the NCERT Solutions for Class 11 Business Studies will the students in solving the questions by following an easy approach. By using this methodology to prepare this subject, students will be able to increase their knowledge of the subject and get a good score in the Class 11 exam of Business Studies.