Business Entrepreneurship · Classes 9-10 · Chapter 1
Origin and Evolution of Business.
Once, a single kori shell could buy you something at the market. Today a tap on a phone screen sends money across the country. What lies in between? The story of business is one long staircase from that shell to mobile banking, and the book splits it into three flights.
1. Why activity grew and why money appeared
Everything starts with demand. As human demand grows, the scope of economic activities increases. That is how hunting, producing crops and exchanging goods began.
Why could barter not meet every need? Watch a small market: five people, one thing each.
barter against coinsopen the market
Whose need is met?
The five people and their goods are imaginary.
But swapping goods still could not meet every need. So, in place of barter, coins of gold and silver came first as a medium of exchange, and paper notes later. Read the chain, five steps from cause to result, one at a time.
step by stepread the reason at each step
Why money?
1. Demand grows. Human demand keeps growing.
2. Economic activities widen. As demand grows, the scope of economic activities increases with it.
3. Hunting, farming and barter begin. Activities like hunting, producing crops and exchanging goods started.
4. Barter cannot meet all needs. Exchanging goods could not meet all the needs.
5. Gold and silver coins, then paper notes. In place of barter, coins of gold and silver and later paper notes were introduced as a medium of exchange.
2. The table of three ages
First see the three ages. Drag the time and the market scene changes.
three agesdrag the time
From hunting to mobile banking
The evolution of business is classified into three ages: Primitive, Middle and Modern. The book's table lists each age separately.
The Primitive age had hunting, fishing, collecting fruits, farming and bartering. People gathered straight from nature and swapped one thing for another.
In the Middle age, scarce snail, shell, kori and stones were used as a medium of exchange. Then coins of gold, silver and other metals came into use, and paper notes were introduced. The same age saw markets and towns formed and business organizations established.
The Modern age saw the Industrial Revolution and the spread of different industries. Information and Communication Technology developed, and large scale production and distribution came in.
Banking and insurance expanded, and the ATM card and mobile banking became common. Now sort sixteen chips into the three age boxes.
sort themrecall the book's table
Which age?
Pick up a chip, then drop it in an age box.
Right, the book's table puts it in that age. Next one.
Not yet. Think: hunting and barter come first, money and markets in the middle, factories and banks last.
All in place. Paper notes belong to the Middle age, the Industrial Revolution to the Modern age.
3. The staircase of the medium of exchange
Now build the staircase yourself. The book gives a clear sequence: barter first, then gold and silver coins in its place, then paper notes. Last comes mobile banking from the Modern age.
in orderstart from barter
What came first?
What was there before anything else? The thing coins later replaced.
Yes. And then?
Not yet. Barter came first and coins replaced it. The book says paper notes came later than coins. And mobile banking belongs to the Modern age, paper notes to the Middle age.
Right order: barter, gold and silver coins, paper notes, mobile banking. Coins came because barter could not meet all needs.
4. Check yourself
Three questions, all from this table.
check yourselfpick one answer
Question 1
Which is a feature of the modern age of business?
Right. The Modern age saw the introduction of large scale production and distribution process.
'Emergence of business organizations' does not fit here. The book says: The Modern age saw the introduction of large scale production and distribution process.
'Formation of markets and towns' does not fit here. The book says: The Modern age saw the introduction of large scale production and distribution process.
'Barter' does not fit here. The book says: The Modern age saw the introduction of large scale production and distribution process.
For the second, work out which age it is about.
check yourselfpick one answer
Question 2
The steps in the evolution of business in the Middle age are,
i. Formation of markets and towns ii. The Industrial Revolution iii. Introduction of paper notes
Statement ii is false: The Industrial Revolution belongs to the Modern age.
Right. i and iii are true; ii is false: The Industrial Revolution belongs to the Modern age.
Statement ii is false: The Industrial Revolution belongs to the Modern age.
Statement ii is false: The Industrial Revolution belongs to the Modern age.
Take the last one slowly.
check yourselfpick one answer
Question 3
Which of the following is a feature of the modern era in the evolution of business?
'Barter System' does not fit here. The book says: The Modern age saw the Industrial Revolution and the spread of different industries.
'Introducing Paper Currency' does not fit here. The book says: The Modern age saw the Industrial Revolution and the spread of different industries.
'Emergence of Business Organizations' does not fit here. The book says: The Modern age saw the Industrial Revolution and the spread of different industries.
Right. The Modern age saw the Industrial Revolution and the spread of different industries.
The whole evolution on seven cards.
cut from the notetap to turn over
Seven cards
QuestionSince barter could not meet all needs, what was introduced as a medium of exchange?
AnswerCoins of gold and silver, and later paper notes.
QuestionInto how many stages is the evolution of business divided?
AnswerThree: the Primitive, Middle and Modern age.
QuestionHunting, farming and bartering are activities of the … age of business.
AnswerPrimitive
QuestionIn which age were scarce snail, shell, kori and stones used as a medium of exchange?
AnswerThe Middle age.
QuestionIn which age of business were paper notes introduced?
AnswerThe Middle age.
QuestionPaper notes and the Industrial Revolution: which belongs to the Middle age and which to the Modern age?
AnswerPaper notes belong to the Middle age; the Industrial Revolution to the Modern age.
QuestionIn which age did the business of banking and insurance expand?
AnswerThe Modern age.
Source: Business Entrepreneurship, Classes 9-10 (NCTB), Chapter 1 “Introduction to Business”, the “Origin and Evolution of Business” part.