Ch 1 Business Trade And Commerce Flashcards
(11 cards)
What is economic activities
Activities which are performed by for money, wealth and livelihood
What are economic activities?
Activities done to earn money or livelihood, like business, profession, or employment.
What are non-economic activities?
Activities done out of love, affection, or duty, not for money (e.g., helping family).
Define business.
Business is an economic activity involving the production or sale of goods/services for profit.
Name three characteristics of business.
Profit motive, risk element, and regular dealings in goods/services.
What are the main types of economic activities?
Business, profession, and employment.
What is the primary objective of business?
To earn profit.
Name two social objectives of business.
Fair wages to workers and environmental protection.
What is the difference between profession and employment?
Profession requires specialized knowledge; employment is working under a contract for salary.
What are the two main parts of commerce?
Trade and auxiliaries to trade (like banking, transport, insurance).
What causes risk in business?
Natural disasters, market changes, or human errors.
