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6. State with reasons whether the following statements are 'True' or 'False':

a) Employment involves greater risk than business.
b) Earning profits is the sole objective of business.
c) Employment is an economic activity.
d) A business activity may be without a profit motive.
e) Risk is an essential element of every business activity.



Answer :

GinnyAnswer

Final answer:

Explanation of statements related to business, employment, profits, and risk.


Explanation:

True or False Statements:

  1. a) Employment involves greater risk than business: False. Business involves more risk as it often requires investing capital, dealing with uncertainties in the market, and facing potential losses.
  2. b) Earning profits is the sole objective of business: False. While making a profit is crucial for a business's sustainability, other objectives like providing value to customers, growth, and social responsibility are also important.
  3. c) Employment is an economic activity: True. Employment involves the exchange of labor for wages, making it an essential economic activity in any society.
  4. d) A business activity may be without a profit motive: True. Some businesses, like non-profit organizations, may not operate with the primary goal of making profits.
  5. e) Risk is an essential element of every business activity: True. Risk is inherent in business due to market uncertainties, competition, and other factors that impact the success and sustainability of a business.

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