Business, Trade and Commerce: Chapter 1

This set of vocabulary flashcards covers the fundamental concepts, historical context, and classification of business activities as presented in Chapter 1 of the Business Studies curriculum.

Business

An occupation in which people regularly engage in activities related to purchase, production and/or sale of goods and services with a view to earning profits.

Economic Activities

Activities by which human beings can earn their livelihood, classified into business, profession, and employment.

Non-economic Activities

Activities performed out of love, sympathy, sentiment, or patriotism rather than for earning a livelihood.

Hundi

An age-old Indian instrument of exchange involving an unconditional contract or order used to facilitate the transfer of money for trading activities.

Dhani-jog (Darshani)

A type of Hundi payable to any person where there is no liability over who received the payment.

Sah-jog (Darshani)

A Hundi payable to a specific person who is considered 'respectable,' with liability over the person who receives payment.

Jokhmi Hundi

A Muddati hundi drawn against dispatched goods; if goods are lost in transit, the drawer or holder bears the cost and the Drawee carries no liability.

Favourable Balance of Trade

A condition where exports exceed imports by large margins, historically enjoyed by the Indian subcontinent.

Economic Liberalisation ($1991$)

The policy agreed to by India in $1991$ to address a precarious balance of payment situation, involving stabilisation, restructuring, and globalisation.

Profession

An occupation rendering personalised, expert services requiring specific qualifications, training, and membership in a professional body.

Employment

An economic activity where individuals perform work as per a service contract or rules laid down by an employer in exchange for salary or wages.

Uncertainty of Return

A characteristic of business referring to the lack of knowledge regarding the amount of profit a business will earn and the possibility of incurring losses.

Primary Industries

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

Extractive Industries

A category of primary industries that draw products from natural sources, such as farming, mining, lumbering, hunting, and fishing.

Genetic Industries

Industries engaged in breeding plants and animals for further reproduction, such as poultry farms and fish hatcheries.

Secondary Industries

Industries that process materials already extracted at the primary stage to produce goods for final consumption or further processing.

Analytical Industry

A manufacturing industry that analyses and separates different elements from the same material, such as an oil refinery.

Synthetical Industry

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

Tertiary Industries

Industries providing support services to primary and secondary sectors, including transport, banking, insurance, and warehousing.

Commerce

A branch of business comprising trade and its auxiliaries, serving as a link between producers and consumers to remove hindrances of person, place, and time.

Trade

The essential part of commerce referring to the sale, transfer, or exchange of goods, making products available to consumers.

Auxiliaries to Trade

Service-oriented activities that support trade and industry, such as transport, banking, insurance, warehousing, and advertising.

Market Standing

The distinct identity and reputation of a business in relation to its competitors in terms of offering competitive products and satisfying customers.

Innovation

The introduction of new ideas or methods in product/service development or the skills and activities needed to supply them.

Productivity

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

Business Risk

The possibility of inadequate profits or losses due to uncertainties or unexpected events.

Speculative Risks

Risks involving both the possibility of gain and the possibility of loss, usually arising from fluctuations in market conditions like demand and prices.

Pure Risks

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

Entrepreneurship

The systematic, purposeful, and creative activity of identifying a need, mobilising resources, and organising production to deliver value and earn profit.