1] Wholesaler is in direct contact with ultimate consumers .

Ans: The above statement is false.

Reasons:
1] wholesaler is not in direct contact with the ultimate consumers .
2] Wholesalers purchase directly from the producers or manufactures
3]Retailer purchase good from wholesaler to fulfil consumers wants.
4] wholesaler is conducted on a large scale.
5]Wholesaler can distribute goods anywhere.
6]Wholesaler cannot distribute goods out of the country without the government
permission
7]The trader who do wholeselling is called
as wholesalers.
8]A wholesaler collets information about consumers tastes, fashion, etc. from the
various retailer and supplies the same information to the manufactures.
9] The manufacturers helps the consumers to satisfy their maximum want.
3] Risk is inevitable in business activities .
Ans : The above statement is true.
REASONS ;
1] The possibility of failure or loss associated with business is called business risk.
2] The business of any nature is always exposed to avariety of risk which may drive
the entrepener into loss.
3] Risk bearing is very much essential for an entre prener .
4] If thw businessman succed in bearing the risks ,he is rewarded with profit.
5] Risk exists in all business irrespective of its scale , scope and nature.
6] Risk is inevitable. It can be minimized or can be transferred to insurance by
paying insurance premium but cannot be avoided.
7] Sometimes risk cannot be transferred to insurance company.
8] Thus risk cannot be avoided completely from the business.
4] Tertiary industry depends upon primary and secondary industry.
Ans: The above statement is true.
Reasons;
1] A branch of business concern with the production of goods and services and
wealth is called as industry. Industry may be classified as primary industry ,
secondary industry and tertiary industries.
2]
Primary industry produces agricultural products secondary industry produces
consumers goods
3] Tertiary or service
industries are those industries which provide services.
4] Tertiary do not manufacture any tangible product however they nable other
industries to have smooth buying and selling of goods and services
5] These type industries provide services transport banking , insurance etc.
6] As a result tertiary industry increase rapidly with the growth and development of
the primary and secondary industries.

5] The given statement is false.

Reasons:
1] The import export trade is external trade.
2] The definition of internal trade is the trade which is held in country.
3] In internal trade there is wholesale trade and retail trade.
4] In wholesale trade the goods are buyed in large quantity from producers.
5] In retail trade goods are buyed in small quantity from wholeseller and sold to
consumers .
6] The defination
of external trade is the trade taking place outside the country.
7] In external trade there is inport trade export trade and enterport trade.
8] In export trade the goods are sold out of the country.
9] In import the goods are bought inside the country.
10] In enterport the goods are first import and then exported to another country.
6] Business can be expanded with the help of mercantile agents.
Ans: The above statement is true.
Reasons:
1] Business is an economic activity involves production and distribution of goods
and services.
2] Every business activity is
concerned with either making of goods or creation of services
3] Mercantile agents are middleman in the chain of distribution of goods and
services
4] Mercantile agents
bridges the bridges the gap between firm to seller product and the business
activities.
5] Mercantile agents help the business firm to expand the extent of business
activities
6] factors , brokers ,
consigeners etc are some of the example of mercantile agents.
Transport creates place utility.
Ans The above statement is true.
Reasons:
1] Transport refers to the movement of goods and passengers.
2] Transport ensures the movement of raw material upto the factories for
production.
3] Transport
assures the movement of finish goods upto the final consumers for distribution.
4] Transport create place utility and solves the difficulty of pace for trade.
Industries activities take place after commerce finish his role .
Ans: The above statement is false.
1] Industries form the basis of the whole business unless goods are made available
distribution is not possible.
2] Industries conduct the raw material into the goods that is why activities take
place before commerce.
3] Commerce is that aspect of business which is engaged in distribution of goods
and services.
4] Without industries activities

commerce is senseless .
5] Commerce takes place when the raw material is converted into finish goods
6] industries activities take place because it requires huge capital
7] Commerce finishes his role after industrial activities as it comparatively require
less capital
8] Industries require man
power and machine power.
9] Commerce requires more man power.
1o] Industries activities is conducted by producers and manufactures.
8] Commerce is a wider term than business.
Ans: The above statement is false.
Reasons:
1] Business is an activity which involves production and distribution of goods and
services
2] Commerce is engaged
with distribution of goods and services produced industry.
3] Business includes industry and industry and commerce.
4] Commerce includes only trade and auxiliaries / aids to trade.
5] Business is wider term than commerce because commerce is a part of business ,
but business is not a part of anyone.
6] So, commerce activities like [trade and aids to trade] exist because business
activity is there.
7] Business activity can be helped
by advertisement , transport , warehousing.
8]So, commerce is not a wider term than business.
9] Changing fashion is one of the important cause of business risk.
Ans: The above statement is true.
Reasons;
1] Business is an economic activity involves production and distribution of goods
and services.
2] usually the change in
fashion lead to effect the preference of the customers.
3] The change in fashion affect the terms and power of purchasing of the consumers
4] The adverse affect of fashionable trends lead to fall in demand of the user.
5] When the fashion have been changed the business man have to change his
deadstock.
6] The business man has
to bring innovative idea to run his business smoothly.
10] Available resources should be used to its maximum.
Ans: The above statement is true.
Reasons:
1] Most of the resources are scarce [limited] and have many alternative uses.
2] When wastage is restricted then the profit increase and the resources are also
used to its maximum.
3] Cost of production can also be controlled by reducing the wastages and using the
resources up to its maximum.
4] Maximum use of resources ultimately leads to increasing profits.

5] If available resources are used to its maximum than it can be conserved for
future generation.
6] Available of resources are limited and human wants are unlimited.