The Evolution and Fundamentals of Business Quiz

Types of Business Risk

• Business risk can be classified into several types, including systematic risk, which affects the entire market, and unsystematic risk, which is specific to a company or industry
• Financial risk arises from borrowing and indebtedness, while operational risk stems from operational inefficiencies and disruptions
• Strategic risk involves making decisions that impact a company's overall direction, and compliance risk relates to adherence to laws and regulations

Commerce and Trade

• International trade involves the exchange of goods and services across national borders
• Internal trade encompasses commercial activities within a country's borders
• E-commerce refers to the buying and selling of goods and services over the internet
• Entrepot trade involves the importation and re-exportation of goods

Historical Position of the Indian Sub-Continent in the World Economy

• The Indian Sub-Continent has historically been a significant player in global trade, with the Indus Valley Civilization being a major center of trade and commerce
• The Silk Road, a network of ancient trade routes, connected India to the rest of the world
• India was a major exporter of textiles, spices, and other goods, and played a key role in the global economy

Tertiary Industry Subgroups

• Social services include healthcare, education, and other essential services
• Business services encompass consulting, finance, and other professional services
• Transportation services include logistics, aviation, and other transportation-related activities
• Recreational services include tourism, hospitality, and entertainment

Characteristics of Business

• Economic activity: business involves the creation and exchange of goods and services
• Risk-taking: entrepreneurs take calculated risks to achieve business goals
• Innovation: businesses must innovate to stay competitive
• Uncertainty: businesses operate in an uncertain environment and must adapt to changes