Trade and Commerce in India Solved 2025 Question Paper [Gauhati University FYUGP BCom 2nd Semester]

In this post we have provided the Gauhati University BCom 2nd Semester Trade and Commerce in India Solved Question Paper 2025 very helpful for 2nd Sem FYUGP BCom Students. It follows NEP pattern the useful for Gauhati University BCom FYUGP 2nd Semester students who are studying Trade and Commerce in India as part of their course.

2025

VALUE ADDED COURSE

Full Marks: 30

Time: 1½ hours
Paper Code : VAC0200302

Trade and Commerce in India

1. Answer the following as directed :  1×5=5

(a) Give two examples of renewable resources.
Answer: Two examples of renewable resources are solar energy and wind energy.

(b) Write the full form of MSME.
Answer: The full form of MSME is Micro, Small and Medium Enterprises.

(c) Define industry.
Answer: Industry refers to the economic activity concerned with the production, processing, and manufacturing of goods and services with the help of labour, capital, and machinery.

(d) What do you mean by credit insurance?
Answer: Credit insurance is a type of insurance that protects a business against the risk of non-payment by buyers or customers for goods and services sold on credit.

(e) Dhirubhai Ambani is the founder of Reliance Industries. (Write True or False)
Answer: True.
(Write True or False)

2. Answer any five questions from the following (answer should be in about 50 words each) :  2×5=10

(a) Give the meaning of trade.
Answer: Trade refers to the activity of buying and selling goods and services between individuals, businesses, or countries. It is an important part of commerce and helps in the distribution of goods from producers to consumers. Trade may take place within a country, known as internal trade, or between different countries, known as international trade. It facilitates economic development and improves the standard of living.

(b) State the various types of agricultural land in India.
Answer: Agricultural land in India is mainly classified into different types based on its use and cultivation. These include crop land, fallow land, pasture land, and plantation land. Crop land is used for growing crops such as rice and wheat. Fallow land is left uncultivated for some time to restore soil fertility. Pasture land is used for grazing animals, while plantation land is used for growing crops like tea, coffee, and rubber.

(c) Write two functions of entrepreneur.
Answer: An entrepreneur plays an important role in starting and managing a business. The first function of an entrepreneur is to organize the factors of production such as land, labour, capital, and machinery for producing goods and services. The second function is to take risks and make important decisions regarding production, marketing, and investment in order to earn profit and ensure the growth of the business.

(d) State any two advantages of agro-based industry.
Answer: Agro-based industries use agricultural products as their raw materials. One major advantage is that they provide employment opportunities to people in rural areas and help reduce unemployment. Another advantage is that they increase the value of agricultural products by processing them into finished goods such as sugar, tea, and textiles, which helps in the economic development of the country.

(e) Who is N. R. Narayana Murty?
Answer: N. R. Narayana Murty is a famous Indian entrepreneur and the founder of Infosys, one of the leading information technology companies in India. He played a significant role in the growth of the Indian IT industry. Known for his leadership and vision, he helped transform Infosys into a global company. He is also respected for promoting ethical business practices and corporate governance.

(f) What is E-banking?
Answer: E-banking, also known as electronic banking, refers to the use of electronic systems such as the internet, mobile phones, and computers to conduct banking transactions. It allows customers to access their bank accounts, transfer money, check balances, pay bills, and perform other banking services without visiting the bank branch. E-banking saves time, increases convenience, and provides quick financial services.

(g) What are the uses of land?
Answer: Land is an important natural resource and is used for many purposes. It is used for agriculture to grow crops and produce food. Land is also used for building houses, roads, factories, and other infrastructure. It is further used for forestry, mining, and grazing animals. Thus, land plays a vital role in economic development and supports various human activities.

(h) Write two major advantages of railway transport.
Answer: Railway transport is an important means of transportation in many countries. One major advantage is that it can carry large quantities of goods and many passengers over long distances at a relatively low cost. Another advantage is that it is a reliable and safe mode of transport, which helps in the movement of goods and people and promotes trade and economic development.

(i) What is crop land?
Answer: Crop land refers to the area of land that is used for growing agricultural crops such as rice, wheat, maize, and vegetables. It is a part of agricultural land that is regularly cultivated by farmers for food production. Crop land plays an important role in ensuring food security and supporting the livelihood of people who depend on agriculture.

(j) Write a note on Maniram Dewan.
Answer: Maniram Dewan was a prominent Assamese businessman and freedom fighter. He was one of the pioneers of the tea industry in Assam and established one of the first indigenous tea gardens. Maniram Dewan also played an important role in the Indian freedom movement against British rule. For his involvement in the uprising of 1857, he was arrested and later executed by the British authorities.

3. Answer any three questions from the following (answer should be in about 300 words each) :  5×3=15

(a) State the nature and scope of business.

Answer: Business refers to an economic activity that involves the production, purchase, sale, and distribution of goods and services with the main objective of earning profit and satisfying the needs of consumers. Business plays a very important role in the economic development of a country because it helps in the utilization of resources, generation of employment, and improvement of the standard of living of people. The nature and scope of business explain the characteristics and the wide field in which business activities operate.

Nature of Business

i) Economic activity: Business is an economic activity because it involves the production and distribution of goods and services to satisfy human wants. The main objective of business is to earn profit through these activities.

ii) Production or procurement of goods and services: Business involves either the production of goods or the procurement of goods and services for sale to consumers. For example, a factory manufactures products, while a trader purchases goods and sells them to customers.

iii) Sale or exchange of goods and services: Business always involves the sale or exchange of goods and services for money or money’s worth. Without sale or exchange, an activity cannot be considered a business activity.

iv) Regularity of transactions: Business activities are carried out regularly and continuously. A single or isolated transaction cannot be called a business. For example, selling a personal item once is not a business activity.

v) Profit motive: The main objective of business is to earn profit. Profit acts as a reward for the risk taken by the businessman and helps in the growth and expansion of the business.

vi) Element of risk and uncertainty: Every business activity involves risk and uncertainty because future market conditions, consumer demand, and prices are unpredictable. Therefore, a businessman must take risks while running the business.

Scope of Business

The scope of business is very wide and includes various activities related to the production and distribution of goods and services. It mainly includes the following areas:

i) Industry: Industry refers to activities related to the production and processing of goods. It involves the extraction of natural resources, manufacturing of products, and construction activities. Industries are classified into primary, secondary, and tertiary industries.

ii) Commerce: Commerce includes all activities that help in the distribution of goods and services from producers to consumers. It ensures that goods reach the right place at the right time.

iii) Trade: Trade is a part of commerce and refers to the buying and selling of goods and services. Trade may be internal trade within a country or external trade between different countries.

iv) Aids to trade: Commerce also includes several services that facilitate trade. These services include transport, banking, insurance, warehousing, advertising, and communication. They help in the smooth movement and distribution of goods.

Thus, business has a wide scope and includes industry, commerce, trade, and various supporting services that help in the production and distribution of goods and services in an economy.

(b) Discuss the various functions of commerce.

Answer: Commerce is an important branch of business that deals with the distribution of goods and services from producers to consumers. It includes trade and various aids to trade that help in removing the barriers of place, time, risk, and finance. Commerce plays a vital role in the economic development of a country by facilitating smooth exchange and movement of goods.

The major functions of commerce are as follows:

i) Trade: Trade is the main function of commerce. It involves the buying and selling of goods and services. Trade helps in transferring goods from producers to consumers. It may be internal trade within a country or international trade between different countries.

ii) Transportation: Transportation helps in carrying goods from the place of production to the place of consumption. It removes the barrier of place and makes goods available to consumers in different regions. Various modes of transport include roadways, railways, waterways, and airways.

iii) Warehousing: Warehousing means storing goods until they are needed by consumers. It removes the barrier of time by ensuring a regular supply of goods in the market. Warehouses help protect goods from damage and provide proper storage facilities.

iv) Banking and finance: Banking institutions provide financial assistance to businessmen in the form of loans, advances, and credit facilities. Banking also helps in making payments, transferring money, and facilitating trade transactions.

v) Insurance: Insurance protects business against various risks such as fire, theft, accident, and natural disasters. It gives financial security and confidence to businessmen to carry out their activities without fear of heavy losses.

vi) Advertising and communication: Advertising helps in informing consumers about the availability, quality, and price of goods. Communication systems such as telephone, internet, and postal services help in transmitting business information quickly and efficiently.

vii) Packaging and grading: Packaging protects goods during transportation and storage, while grading ensures the classification of goods according to quality. These activities help in increasing consumer confidence and improving the marketability of goods.

Therefore, commerce performs several important functions that facilitate trade and ensure the smooth distribution of goods and services in the economy.

(c) Write a note on any one renowned entrepreneur in India.

Answer: One of the most renowned entrepreneurs in India is Dhirubhai Ambani. He was the founder of Reliance Industries and is known for building one of the largest business empires in India. His life is an inspiring example of hard work, determination, and innovative thinking.

Dhirubhai Ambani was born in 1932 in Gujarat. He started his career with a small trading business and later established Reliance Commercial Corporation in 1966. Through his vision and entrepreneurial skills, he expanded his business rapidly in various sectors such as textiles, petrochemicals, energy, and telecommunications.

One of the major achievements of Dhirubhai Ambani was introducing equity culture in India by encouraging ordinary people to invest in the stock market. He believed that the growth of a company should benefit common investors as well. Under his leadership, Reliance Industries became one of the largest and most successful companies in India.

Dhirubhai Ambani was known for his risk-taking ability, strong leadership, and innovative ideas. He played a significant role in the industrial development of India and inspired many young entrepreneurs. Even after his death in 2002, Reliance Industries continues to grow and remains a major contributor to the Indian economy.

Thus, Dhirubhai Ambani is remembered as one of the most successful and influential entrepreneurs in India.

(d) Explain five features of entrepreneur.

Answer: An entrepreneur is a person who starts and manages a business by organizing resources, taking risks, and aiming to earn profit. Entrepreneurs play a vital role in economic development by creating new businesses, generating employment, and introducing innovations in the market. The important features of an entrepreneur are explained below.

i) Risk-bearing ability: One of the most important features of an entrepreneur is the ability to take risks. Business activities involve uncertainty regarding demand, price, and profit. An entrepreneur takes these risks and makes decisions in uncertain situations.

ii) Innovation: An entrepreneur is innovative in nature. He introduces new ideas, new methods of production, new products, or new markets. Innovation helps in improving efficiency and increasing the competitiveness of a business.

iii) Leadership quality: An entrepreneur must have leadership ability to guide and motivate workers. He organizes and coordinates the activities of employees and encourages them to work efficiently for achieving the goals of the business.

iv) Decision-making ability: An entrepreneur has to make important decisions regarding production, investment, marketing, and expansion of business. Good decision-making helps in the smooth functioning and growth of the business.

v) Organizing ability: An entrepreneur organizes various factors of production such as land, labour, capital, and machinery. He brings these resources together and uses them efficiently for the production of goods and services.

Thus, the success of a business largely depends on the qualities and features of the entrepreneur who manages and controls the entire business operation.

(e) Write a note on forest resources in Assam.

Answer: Forest resources are one of the most valuable natural resources of Assam. The state is rich in forests because of its favorable climate, fertile soil, and heavy rainfall. Forests play an important role in maintaining ecological balance and supporting the livelihood of many people.

Assam has different types of forests such as tropical evergreen forests, tropical semi-evergreen forests, moist deciduous forests, and bamboo forests. These forests are rich in valuable timber trees like sal, teak, hollong, and bamboo. Forests also provide important products such as firewood, timber, medicinal plants, rubber, and cane.

Forest resources in Assam are also home to a wide variety of wildlife including elephants, rhinoceroses, tigers, and many species of birds. National parks and wildlife sanctuaries such as Kaziranga National Park and Manas National Park help in protecting these forest resources and wildlife.

Besides economic benefits, forests help in controlling soil erosion, maintaining climate balance, and conserving biodiversity. Therefore, proper conservation and management of forest resources are essential for sustainable development in Assam.

(f) Write a note on Radha Govinda Baruah.

Answer: Radha Govinda Baruah was a well-known Assamese entrepreneur, social worker, and sports organizer. He played a significant role in the development of business, culture, and sports in Assam. He was popularly known as the “Architect of Modern Assam”.

Radha Govinda Baruah was associated with several important organizations and contributed greatly to the economic and cultural development of the state. He played a major role in the establishment and development of the Assam Tribune newspaper group, which became one of the most respected newspapers in Northeast India.

He was also actively involved in promoting sports and was one of the key persons behind the construction of the Nehru Stadium in Guwahati. His contributions helped in the growth of sports and youth activities in Assam.

Radha Govinda Baruah’s leadership, vision, and dedication greatly influenced the social and economic progress of Assam. He is remembered as an inspiring personality who worked tirelessly for the development of the state.

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