Business Terminology Quiz

Questions and Answers

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.

Two types of industries are primary industry and secondary industry.

What are two types of Foreign Trade?

Two types of Foreign Trade are import trade and export trade.

List four auxiliaries to trade.

Four auxiliaries to trade are banking, insurance, transport, and warehousing. Signup and view all the answers

What are four features of employment?

Four features of employment include a contractual agreement, regular income, job security, and defined roles and responsibilities. Signup and view all the answers

State four objectives of business.

Four objectives of business are profit maximization, increasing market share, enhancing customer satisfaction, and ensuring social responsibility. Signup and view all the answers

What are four features of business?

Four features of business are risk-bearing, profit motive, production of goods and services, and continuous operation. Signup and view all the answers

Name two types of primary industry.

Two types of primary industry are agriculture and mining. Signup and view all the answers

Why is a retailer in direct contact with ultimate consumers?

A retailer sells goods directly to consumers, facilitating immediate access to products. Signup and view all the answers

Explain why risk is inevitable in business activities.

Risk is inherent in business due to uncertainties in market trends, competition, and external factors. Signup and view all the answers

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.

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.