Business, Trade and Commerce Study Set

A set of 200 vocabulary flashcards covering the foundations of business, trade, and commerce based on the provided lecture transcript.

Business (General term)

A wider term that includes Industry, trade and commerce.

Economic Activities

Activities by which we can earn our livelihood, such as production, manufacturing, distribution, and exchange.

Non-economic activities

Activities performed out of love, sympathy, sentiment, or patriotism rather than for money.

Business (Specific definition)

An economic activity involving the production and sale of goods and services undertaken with a motive of earning profit by satisfying human needs.

Industry

Economic activities connected with the conversion of resources into useful goods, involving mechanical appliances and technical skills.

Commerce

Activities involved in the removal of hindrances in the process of exchange, including trade and auxiliaries to trade.

Economic activity (Business characteristic)

Business is undertaken with the objective of earning money or livelihood and not out of love or affection.

Production or procurement

The process where every business enterprise either manufactures the goods it deals in or acquires them from producers.

Consumable items

Goods of daily use such as sugar, ghee, pen, and notebook.

Capital goods

Goods used in production processes such as machinery and furniture.

Sale or exchange of goods and services

The transfer of goods and services for value between seller and buyer; personal consumption is excluded.

Dealing on a regular basis

A single transaction of sale or purchase does not constitute business; activities must be recurring.

Profit earning

One of the main purposes of business, as no business can survive for long without the excess of revenue over cost.

Uncertainty of return

The lack of knowledge regarding the exact amount of money a business will earn in a given period.

Element of risk

The uncertainty associated with an exposure to loss caused by unfavorable or undesirable events.

Speculative risks

Risks involving both the possibility of gain as well as the possibility of loss, arising from market fluctuations.

Pure risks

Risks involving only the possibility of loss or no loss, such as fire, theft, or strike.

Primary industries

Industries concerned with the extraction of natural resources and reproduction of living organisms and plants.

Extractive industries

Industries that extract or draw products from natural sources like farming, mining, and fishing.

Genetic industries

Industries engaged in breeding plants and animals for reproduction, such as poultry farms and cattle breeding.

Secondary industries

Industries concerned with using materials already extracted at the primary sector to produce goods for final consumption.

Manufacturing industries

Industries engaged in producing goods through processing raw materials, thereby creating form utilities.

Analytical industry

A manufacturing industry that analyzes and separates different elements from the same materials, like an oil refinery.

Synthetical industry

A manufacturing industry that combines various ingredients into a new product, such as cement.

Processing industry

An industry involving successive stages for manufacturing finished products like sugar and paper.

Assembling industry

An industry that assembles different component parts to make a new product like a car or computer.

Construction industries

Industries involved in the building of dams, bridges, roads, tunnels, and canals.

Tertiary industries

Industries that provide support services to primary and secondary sectors, such as transport and banking.

Trade

The sale, transfer, or exchange of goods, making products available to consumers.

Auxiliaries to trade

Activities meant for assisting trade, including transport, banking, insurance, warehousing, and advertising.

Transport

An auxiliary to trade that removes the hindrance of place by moving goods to the place of consumption.

Banking and Finance

An auxiliary that helps business activities overcome the problem of finance by providing funds and credit facilities.

Insurance

An auxiliary that provides protection against business risks like fire and theft on payment of a premium.

Warehousing

An auxiliary that creates time utility by providing storage facilities to prevent loss or damage.

Advertising

A paid activity using space in media to promote products or services and inform potential customers.

Public Relations (PR)

Normally unpaid strategic communication aimed at building mutually beneficial relationships.

Market standing

The goodwill and reputation of a business in relation to its competitors.

Innovation

The introduction of new ideas or methods, either in products/services or the skills needed to supply them.

Productivity

A measure of efficiency ascertained by comparing the value of output with the value of inputs.

Physical resources

Tangible assets required by a business, such as plants, machines, and offices.

Financial resources

Required funds used to produce and supply goods and services to customers.

Profitability

A business objective referring to the amount of profit earned in relation to capital investment.

Social responsibility

The obligation of business firms to contribute resources for solving social problems.

Entrepreneurship

The systematic, purposeful, and creative process of setting up one's own business enterprise.

Entrepreneur

The person who sets up a business and takes associated risks and uncertainties.

Business enterprise

The output of the entrepreneurship process; the actual business unit.

Hundi

An age-old instrument of exchange used in India to facilitate transfer of money through unconditional contracts.

Chitties

An age-old document used specifically in the southern region of India for trading activities.

Dhani-jog (Darshani)

A type of Hundi payable to any person with no liability over who received payment.

Sah-jog (Darshani)

A Hundi payable to a specific respectable person; there is liability over who received payment.

Firman-jog (Darshani)

A Hundi made payable to order.

Dekhan-har (Darshani)

A Hundi payable to the presenter or bearer.

Dhani-jog (Muddati)

A Hundi payable to any person over a fixed term.

Firman-jog (Muddati)

A Hundi made payable to order following a fixed term.

Jokhmi (Muddati)

A Hundi drawn against dispatched goods; the drawer bears costs if goods are lost in transit.

Indigenous banking system

The ancient Indian system that financed trading activities and used instruments like Hundi.

Karkhanas

Family-based workshops used for manufacturing in ancient economic life.

Silk Route

A prominent land route used in ancient times for transporting goods and trading purposes.

Maritime trade

Sea-based trading activities that were mainstay of the ancient Indian economy.

Swaran Bharat

A name referred to by ancient travelers meaning 'Golden India'.

Swaran Dweep

A name for the Indian subcontinent used by travelers to denote its prosperity.

Favourable balance of trade

A condition during ancient Indian trade where exports exceeded imports by large margins.

Pataliputra

The commercial town known as Patna today, majorly known for the export of stones.

Peshawar

An important exporting centre for wool and importing centre for horses in the first century A.D.

Taxila

A city of financial banks and a Buddhist center of learning on the route between India and Central Asia.

Indraprastha

A commercial junction on the royal road where routes from all directions converged.

Mathura

An emporium of trade where many routes from South India touched Broach.

Varanasi

A major centre of the textile industry famous for beautiful gold silk cloth and sandalwood work.

Mithila

A trade center whose traders established colonies in South China, especially in Yunnan.

Ujjain

A center that exported agate, carnelian, muslin, and mallow cloth.

Surat

The emporium of western trade during the Mughal period famous for gold border textiles (zari).

Kanchi

Known today as Kanchipuram, where Chinese ships came to purchase pearls, glass, and rare stones.

Madura

The capital of the Pandayas which controlled the pearl fisheries of the Gulf of Mannar.

Broach

The greatest seat of commerce in Western India, situated on the banks of the river Narmada.

Kaveripatta

Also known as Kaveripatnam, it was a center for ship building and trade with Malaysia and Indonesia.

Tamralipti

One of the greatest ports connected by sea and land with the West and the Far East.

Zari

The famous gold borders found on the textiles of Surat.

Economic liberalisation

The policy shift occurring in $1991$ that opened the Indian economy to global integration.

Make in India

A government initiative launched on $25$ September $2014$ to encourage manufacturing in India.

Skill India

A recent government initiative expected to help the economy in terms of trade balance.

Digital India

A government initiative aimed at steady and sustainable trade through technological enhancement.

Natural causes of risk

Calamities like floods, earthquakes, lightning, and famine over which humans have little control.

Human causes of risk

Events like employee dishonesty, negligence, strikes, riots, or management inefficiency.

Economic causes of risk

Uncertainties relating to demand, competition, price, and interest rate fluctuations.

Political disturbances

Environmental factors leading to business risk classified under other causes.

Capital formation

The process of building up capital assets, the lack of which affected India's post-independence economy.

Fiscal deficits

Conditions of high government spending over revenue that affected the Indian economy post-independence.

Balance of payment

The record of all economic transactions between residents of a country and the rest of the world.

Angus Maddison

The historian whose work 'The World Economy: A Millennial Perspective' chronicles India’s economic history.

India's regional share in $1 AD$

$32.91$% ($32$%) of the world wealth, the largest regional contribution.

India's regional share in $1000 AD$

$32$% of the world wealth, remaining the largest regional contribution.

India's regional share in $1500 AD$

$24.36$% of the world wealth, second in regional share.

India's wealth share in $1600 AD$

$24.41$% of the world wealth.

India's wealth share in $1700 AD$

$24.46$% of the world wealth.

India's industrial output in $1700\text{--}1750 AD$

$25$% of the world's industrial output.

India's world income share in $1870 AD$

$9.2$% under the British Empire.

India's industrial output in $1900 AD$

$2$% of the global industrial output.

India's world income share in $1952 AD$

$3.8$% of the world income.

India's world income share in $1973 AD$

$3.1$% of the world income.

Megasthenes

A traveler whose writings referred to the prosperity of the Indian Subcontinent.