Business Concepts Overview

Define Business

• Business is a commercial organization that engages in activities to earn a profit.
• It involves the exchange of goods and services in the market.
• Business activities include:
  • Production
  • Marketing
  • Finance
  • Human Resources
  • Research and Development
  • Information Technology

Features of Business

• Profit Motivation: The primary goal is to earn profit.
• Economic Activity: Businesses are involved in economic activity.
• Risk and Uncertainty: There are inherent risks involved.
• Continuity: The goal is to operate in a continuous manner over time.
• Customer Focus: Meeting the needs of customers is key.
• Social Responsibility: Businesses are expected to be socially responsible.

Types of Industries

• Extractive Industry: This industry involves extracting raw materials from natural sources.
  • Examples include mining, fishing, and forestry.
• Manufacturing Industry: This industry transforms raw materials into finished goods.
  • Examples include automobile production, textiles, and food processing

Retail Trade

• Retail trade is the final stage of the distribution process.
• It involves the sale of goods and services directly to consumers.

Services of Retailers

• Providing Variety: They offer a wide range of products and services to meet customer needs.
• Convenient Location: Retailers are located in convenient places for customers.
• Competitive Pricing: They strive to offer competitive prices.
• Payment Options: Retailers accept various forms of payment.
• After-Sales Service: They provide after-sales services to assist customers.
• Customer Loyalty Programs: Retailers may offer loyalty programs to build customer loyalty.
• Home Delivery and Online Ordering: They offer convenient options like home delivery and online ordering.

Define Trade

• Trade is the buying and selling of goods and services for mutual benefit.

Types of Trade

• Internal Trade: Occurs within the boundaries of a country.
• External Trade: Occurs between countries.

Types of Retailers

• Itinerant Retailers: Mobile sellers who travel from place to place to sell goods.
  • Hawkers: Sell goods from street corners.
  • Peddlers: Travel door to door to sell goods.
  • Cheap Jacks: Sell their goods at entertainment events.

Define Profession

• A profession is an occupation that requires specialized knowledge, education, and training.
• Doctors and lawyers are examples of people in professions.

Define Wholesalers

• Wholesalers purchase goods in large quantities from manufacturers.
• Then, they resell them to retailers in smaller quantities.

Wholesalers vs. Retailers

• Wholesalers: Purchase in bulk and sell to retailers
• Retailers: Sell small quantities directly to consumers

Industry vs. Commerce

• Industry: Focuses on extracting raw materials, manufacturing finished goods, and generating products.
• Commerce: Focuses on buying, selling, and distributing goods and services.
  • It includes activities like trading, transportation, and warehousing.

This quiz covers key definitions and features of business, including various activities and types of industries. Designed for business students, it explores elements such as profit motivation, risk management, and social responsibility. Test your understanding of the fundamental concepts that drive businesses today.