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Questions and Answers
What are four features of a profession?
What are four features of a profession?
Four features of a profession include specialized knowledge, formal training, a code of ethics, and a service orientation.
Name two types of industries.
Name two types of industries.
Two types of industries are primary industry and secondary industry.
What are two types of Foreign Trade?
What are two types of Foreign Trade?
Two types of Foreign Trade are import trade and export trade.
List four auxiliaries to trade.
List four auxiliaries to trade.
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What are four features of employment?
What are four features of employment?
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State four objectives of business.
State four objectives of business.
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What are four features of business?
What are four features of business?
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Name two types of primary industry.
Name two types of primary industry.
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Why is a retailer in direct contact with ultimate consumers?
Why is a retailer in direct contact with ultimate consumers?
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Explain why risk is inevitable in business activities.
Explain why risk is inevitable in business activities.
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Study Notes
Economic Activities
- Economic activities are actions conducted primarily to earn money.
- Trade encompasses the marketing of goods and services.
- Business activities focus on the production or distribution of goods and services for profit.
- Profit serves as a reward for handling business risks.
Types of Activities
- Regular activities focused on production and distribution are classified as business.
- Economic activities include trade, while non-economic activities do not focus on earning income.
- Auxiliary activities, such as transportation, fulfill needs associated with trade.
Trade and Commerce
- Trade can be categorized into domestic (home) trade and international (foreign) trade.
- Foreign Trade involves exchanges between distinct nations, while Import Trade refers to purchasing from other countries.
- Retail Trade connects consumers directly to the seller, and Wholesale Trade acts as an intermediary between producers and retailers.
Industries
- Primary industries extract raw materials and include sectors like agriculture, fishing, mining, and forestry.
- Secondary industries process raw materials into finished goods, covering manufacturing and construction.
- Infrastructure industries generate immovable assets, utilizing resources from primary industries.
Professions and Employment
- A profession necessitates specialized education and training, providing services based on expertise.
- Employment indicates a state where individual work is compensated by an employer, which could be in various sectors.
Financial Aspects of Business
- Professionals often charge fees for specialized services, contrasting with other business models.
- Capital investment is critical for business sustainability, while profit is essential for reinvestment and growth.
Auxiliaries to Trade
- Auxiliaries include transportation, insurance, warehousing, and banking, supporting the overall trade process.
- Effective warehousing creates time utility, facilitating better trade and inventory management.
Classification of Trade
- Economic activities are necessary for the flow of goods and services, influencing market dynamics.
- Commerce is a broader concept compared to trade and includes all aspects of buying and selling.
Features of Business
- Business activities aim to produce goods/services to achieve profits.
- Core features encompass risk-taking, ongoing processes, resource allocation, and service provision.
Objectives of Business
- Objectives include profit maximization, consumer satisfaction, social responsibility, and innovation.
- Understanding market demand and adapting to changes are crucial for business success.
Risk and Management
- Risk is an inherent aspect of business, influenced by market fluctuation and changing consumer preferences.
- Businesses should aim to utilize available resources effectively to mitigate risks and enhance productivity.
Impact of Transport and Warehousing
- Transport creates place utility by moving goods closer to consumers, facilitating commerce.
- Adequate warehousing supports trade effectiveness by managing stock levels and ensuring timely delivery.
Roles in Trade
- Wholesalers link producers to retailers, while retailers engage directly with consumers, forming critical channels in the supply chain.
- The interaction between import-export trades creates a comprehensive marketplace, termed entrepot trade.
Understanding and Justifying Commerce
- Recognizing the interconnected nature of commerce and trade helps in understanding market structures.
- Emphasizing the evolution of consumer preferences highlights the need for businesses to adapt quickly.
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Description
Test your knowledge of essential business terms by choosing the correct options to complete the sentences. This quiz covers concepts related to professions, industries, and commerce. It's perfect for students looking to enhance their understanding of business terminology.
