KSLU Solved Question Papers
Business Environment
Previous Year Question Paper with Solution
B.Com. LL.B. (Five Years) · Sem 1
2025 Jan Examination
munotes.in
Mumbai
B.Com. LL.B. (Five Years) Sem 1 Business Environment 2025 Jan Question Paper with Solutions
First published on munotes.in on 9 November 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2025 Jan examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2025 Jan examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2025 Jan examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 80 · 20 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1
Unit I
(a)Define business and discuss the scope and objectives of business.[10]
Answer
For full marks, cover: a definition of business with two writers' views; its features in brief; its scope under industry, commerce and the newer fields of modern business; its objectives under economic, social, human, national and global heads; a short example; and a conclusion linking scope and objectives.
Definition of business
Business is any regular economic activity in which goods or services are produced, bought or sold for a price. Its aim is to earn a profit by satisfying human wants.
- L. H. Haney described business as human activities directed towards producing or acquiring wealth through buying and selling of goods.
- Peter Drucker, in The Practice of Management (1954), wrote: "There is only one valid definition of business purpose: to create a customer."
The first view stresses wealth. The second stresses the customer. A business earns wealth only by serving customers.
Features in brief
- An economic activity carried on for income.
- Production or exchange of goods and services.
- Regular dealings, not a single sale.
- Profit as the reward.
- Risk and uncertainty.
- Satisfaction of human wants. A business succeeds only if people want what it offers.
- Creation of utility, by changing the form, place, time or ownership of goods.
Scope of business
The scope of business means the range of activities it covers.
1. Industry produces goods.
- Primary industry takes goods from nature. It may be extractive, such as mining and fishing, or genetic, such as dairy and nurseries.
- Secondary industry converts raw materials into finished goods (manufacturing) or builds roads and buildings (construction).
- Tertiary industry provides services such as transport, banking, insurance, health and education.
2. Commerce moves goods from producers to consumers.
- Trade: internal trade (wholesale and retail) and external trade (import, export and entrepot).
- Aids to trade: transport, warehousing, banking, insurance, advertising and communication. Each removes a hindrance of place, time, finance, risk or information.
3. Modern fields include information technology and IT-enabled services, e-commerce, digital payments, logistics, tourism and entertainment, financial services, research and start-ups. Services now form the largest part of India's economy. The Ministry of Statistics' estimates for 2025-26 put the tertiary sector at about 54 per cent of gross value added at current prices.
Objectives of business
1. Economic objectives
- Profit, the main economic aim, which rewards owners and pays for growth.
- Creating customers, since profit comes only from satisfied buyers.
- Innovation in products and methods.
- Productivity, meaning the best use of men, money, machines and materials.
- Growth in sales, market share and size.
2. Social objectives
- Supplying quality goods at fair prices.
- Avoiding unfair practices, such as adulteration and misleading advertisements.
- Generating employment and paying taxes honestly.
- Protecting the environment and helping the community.
3. Human objectives
- Fair wages and safe working conditions.
- Training, job security and chances of promotion.
- Respect and participation of workers.
4. National objectives
- Production according to national priorities.
- Balanced regional development.
- Exports and self-reliance.
5. Global objectives
- Competing in world markets and meeting international standards.
Is profit the only objective?
Older writers treated profit as the only aim of business. That view is no longer accepted, for three reasons.
- Goodwill. A firm that cheats customers or harms society loses trust, and with it, its customers.
- Law. Many social duties are now legal duties. Larger companies must spend on corporate social responsibility under section 135 of the Companies Act, 2013. Consumer, labour and pollution laws also impose duties.
- Long-term profit. Profit is best seen as the reward for serving customers well, not as an end in itself.
At the same time, a business is not a charity. Without profit it cannot pay wages, taxes or dividends, and it cannot grow. The modern view is a balance of objectives, with profit at the centre.
Scope and objectives together
| Scope | Related objective |
|---|---|
| Industry | Productivity, innovation, quality goods |
| Commerce | Creating customers, fair prices, honest trade |
| Scope | Related objective |
|---|---|
| Modern fields | Growth, innovation, exports |
| All fields | Profit with social, human and national responsibility |
Example
A dairy firm in Mandya shows the scope of business in one chain. It buys milk from farmers (primary) and processes it into curd and butter (secondary). It transports, stores, insures and advertises its products (aids to trade). It sells them through shops and online (trade).
Its objectives cover every head. It wants to earn a profit and grow (economic) and to sell safe products at fair prices (social). It also aims to treat its workers well (human) and to support local farmers (national).
Conclusion. Business is a regular economic activity of producing and exchanging goods and services for profit, whose purpose is to create customers. Its scope covers industry, commerce and many new fields of modern business. Its objectives are economic, social, human, national and global. Profit is the core objective. It lasts only when the business also serves its customers, workers and society across the whole of its wide scope.
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