Evolution and Fundamentals of Business Review

These flashcards cover the foundations of business, including historical trade practices, human activity types, industry classifications, commerce functions, and the nature of business risks as presented in the lecture notes.

Business

A major economic activity centered on the production, sale, and distribution of goods and services to satisfy customer needs and earn profit.

Economic Activities

Activities performed by people with the objective of earning money, including business, profession, and employment.

Non-economic Activities

Activities undertaken for psychological or personal satisfaction, such as charity or social service, where earning profit is not the goal.

Profession

An economic activity requiring special knowledge and skill, where entry is restricted and practitioners follow a code of conduct set by professional bodies.

Employment

A regular activity where an individual works for another person (employer) and receives remuneration in the form of salary or wage.

Hundi

An ancient negotiable instrument used in India to facilitate trade and credit transactions, involving an unconditional promise to pay money.

Dhani-Jog Hundi

A Darshani or Muddati Hundi payable to any person, which carries no liability on the person who receives the payment.

Jokhmi Hundi

A Muddati Hundi drawn against dispatched goods where the holder bears the cost if the goods are lost in transit.

Patliputra

An ancient commercial town, known today as Patna, which served as a major center for the export of stones.

First Five Year Plan

Implemented in $1951-52$, this national plan focused on establishing modern technological, scientific, and space institutions.

Make in India

An initiative launched on September $25$, $2014$, to encourage national and multinational companies to manufacture products within India.

Primary Industry

Industries concerned with the extraction of natural resources or the reproduction and breeding of living species.

Extractive Industry

A category of primary industry involving the removal of materials from natural resources, such as mining, fishing, or timber cutting.

Genetic Industry

A category of primary industry involved in rearing and breeding living organisms, such as poultry farms and plant nurseries.

Secondary Industry

Industries that use products from primary industries as raw materials to produce finished or semi-finished goods.

Analytical Industry

A manufacturing industry where a basic raw material is broken into different parts to produce several finished products, such as an oil refinery.

Synthetic Industry

A manufacturing industry where multiple materials are mixed together to create a new product, such as soap or paint.

Construction Industry

Industries involved in building fixed structures like dams, roads, and bridges using products like cement and steel.

Tertiary Industry

Also known as service industry, it provides support systems like transport, banking, and insurance to primary and secondary industries.

Commerce

Activities that facilitate the distribution of goods from producers to consumers, helping to remove hindrances of person, place, time, and risk.

Internal Trade

The buying and selling of goods or services within the geographical boundaries of a single country using home currency.

Entrepot Trade

A type of external trade involving the import of goods from one foreign country to export them to another foreign country.

Auxiliaries to Trade

Activities like transport, banking, insurance, and warehousing that assist and support the smooth flow of buying and selling.

Business Risk

The probability of facing losses or inadequate profits due to uncertainties or unexpected events beyond the owner's control.

Human Causes of Risk

Risks arising from human factors like employee dishonesty, negligence, strikes, or riots.