Introduction to Business and Commerce Lecture Notes

Flashcards covering the fundamentals of business, profession, employment, industry classification, and auxiliaries to trade based on introductory business studies.

Non-Economic Activities

Human activities which are undertaken for personal satisfaction, social, religious, cultural, or sentimental requirements without monetary gains.

Economic Activity

Any activity conducted for earning money or livelihood involving the production, distribution, and consumption of goods and services.

Business

An organized effort by individuals or groups to produce and distribute goods and services in the market with the aim of reaping reward through profit.

Profession

A part of economic activity where a person uses educational knowledge and specialized skills to render services to clients in exchange for fees.

Employment

An economic activity in which one person (employee) works for another (employer) to complete a job as per agreed terms and conditions for remuneration.

Internal Trade

Also known as Home Trade, it involves the buying and selling of goods and services within the geographical boundaries of a country using local currency.

External Trade

Also known as Foreign Trade, it is the trade that takes place between buyers and sellers of two different countries.

Entrepot Trade

A type of foreign trade involving importing goods from one country and re-exporting or reselling those same goods to another country.

Primary Industry

A nature-oriented industry dependent on natural resources, categorized into agriculture, extractive, and genetic types.

Extractive Industry

An industry that draws out raw products from natural resources such as soil, air, and water, such as mining, fishing, and forestry.

Genetic Industry

Industries engaged in the reproduction and multiplication of plants and animals, such as animal husbandry, sericulture, and horticulture.

Secondary Industry

Industries that convert raw materials provided by primary industries into usable finished products through manufacturing or construction.

Construction Industry

The industry engaged in building immovable wealth such as buildings, dams, bridges, roads, tunnels, and canals.

Tertiary Industry

Also called Service Industry, it provides support services to primary and secondary industries, including transport, banking, and tourism.

Auxiliaries to Trade

Supporting activities that facilitate the smooth flow of goods from manufacturing to consumption by removing hindrances like distance, time, and risk.

Warehousing

An auxiliary to trade that stores goods from the time of production until they are sold, helping to maintain supply and price levels.

Mercantile Agents

Intermediaries such as brokers and estate agents who bridge the gap between buyers and sellers when they are scattered over a wide area.

Innovations

Developments or positive changes resulting in improvements to a product or the process of production to satisfy customers.

Profit

The excess of revenue over total cost, serving as the reward for risk-taking and a means of business survival and growth.

Unfair Trade Practices

Harmful business activities such as black marketing, misleading advertisements, and wrong measurements that should be avoided for social welfare.