Business,trade And Commerce Flashcards
(62 cards)
What are the two broad classifications of activities undertaken by people in society?
Economic and non-economic activities
Economic activities are those that earn a livelihood, while non-economic activities are performed out of love or sentiment.
What are economic activities?
Activities by which we can earn our livelihood
These activities contribute to the economy and can be classified into business, profession, and employment.
What is business?
An occupation involving purchase, production, or sale of goods and services to earn profit
Business activities aim for financial gain.
What is a profession?
An occupation requiring special knowledge and skills to earn a livelihood, usually in the form of fees
Examples include doctors, lawyers, and accountants.
What defines employment?
An occupation where a person works regularly for others and receives salary or wages
Employment provides financial stability through consistent income.
What are non-economic activities?
Activities performed out of love, sympathy, sentiment, or patriotism
These do not aim for financial gain.
Give an example of an economic activity.
A doctor operating in his clinic
This activity is done to earn a livelihood.
Give an example of a non-economic activity.
A housewife cooking food for her family
This activity is performed out of love rather than for financial gain.
True or False: All activities performed by individuals in society are economic activities.
False
Some activities are non-economic, performed out of personal sentiments.
What does business refer to?
An occupation involving purchase, production, or sale of goods and services to earn profit.
Business activities can vary widely but are united by the goal of generating income.
What is the first characteristic of business?
An economic activity undertaken to earn money or livelihood.
Business activities are not motivated by emotions but by financial objectives.
What does production or procurement of goods and services mean in business?
Every business either manufactures goods or acquires them to sell to consumers.
This highlights the importance of supply chain management in business operations.
What is involved in the sale or exchange of goods and services?
Transfer or exchange of goods and services for value.
Cooking food at home for family is not a business, but selling food in a restaurant is.
What does dealings in goods and services on a regular basis imply?
Business involves ongoing transactions; a single sale or purchase does not constitute a business.
Regularity is key to defining an operation as a business.
What is one of the main purposes of business?
To earn income by way of profit.
Profit is essential for the survival and growth of any business.
What element of risk is associated with business activities?
Uncertainty leading to inadequate profits or losses due to various factors.
Factors include changes in consumer preferences, strikes, competition, and government policy.
What does industry refer to?
Economic activities connected with conversion of resources into useful goods
What activities are included in the definition of industry?
Producing or processing goods, breeding and raising animals
What does the term industry also mean?
Groups of firms producing similar or related goods
Give an example of a specific industry.
Cotton textile industry refers to all manufacturing units producing textile goods from cotton
What are the three broad categories of industries?
- Primary Industries
- Secondary Industries
- Tertiary Industries
What do primary industries involve?
Extraction and production of natural resources and reproduction and development of living organisms, plants, etc.
What are the two types of primary industry?
- Extractive industries
- Genetic industries
