Introduction to Business and its Characteristics

Flashcards covering the classification of human activities, types of business industries, the roles of commerce and trade, and the nature of business risks.

Human Activities

Activities which human beings undertake to satisfy their needs, pursue different occupations for livelihood, or get psychological satisfaction.

Economic Activities

Activities carried out with the goal of earning money and livelihood, such as a worker in a factory or a teacher in a school.

Non-Economic activities

Activities performed out of love, affection, sympathy, etc., without the aim of earning profit, such as social work or religious activities.

Business

Any economic activity undertaken regularly and continuously to satisfy societal needs and earn profit through the mechanism of sale and purchase of goods and services.

Profession

Any economic activity carried out by a person with specialised knowledge and skills in order to serve society.

Employment

Any economic activity which involves doing work for someone else in consideration of money.

Economic Objectives of Business

Objectives including Survival (covering costs to exist in a competitive market), Profit (essential for growth), and Growth (measured by sales and number of branches).

Social Objectives of Business

Objectives including Supply of Desired Quality of Products, Avoidance of Unfair Trade Practices, Employment Generation, Social Service, and Avoidance of Pollution.

Human or Personal Objectives of Business

Objectives focused on providing good working conditions, competitive wages, personal growth through training, and peer recognition.

Industry

Business activities basically concerned with the production of goods and services for an economic motive.

Primary Industry

Activities concerned with the extraction and production of natural resources and the development of plants.

Extractive industries

Industries providing basic raw materials derived from the natural environment, such as farming and mining.

Genetic industries

Industries involved in the breeding of plants and animals for use in further reproduction, such as cattle breeding or poultry farms.

Secondary industries

Industries concerned with processing materials extracted at the primary sector to convert them into finished products.

Manufacturing industries

Industries engaged in producing goods through processing raw materials and creating utilities.

Analytical Industry

A type of manufacturing industry that separates and bifurcates different elements from a basic material to produce by-products, such as petrol and diesel from crude oil.

Synthetic Industry

A type of manufacturing industry that combines materials and ingredients from varied sources to form a new product, such as the cement industry.

Processing Industry

Industries involved in the extraction and processing of resources to produce semi-finished or finished products, such as sugar or textile industries.

Assembly Industry

Industries that bring together different components from various firms to form a new product, such as television, computer, or car assembly.

Construction industries

Industries involved in the construction sector, including building dams, bridges, and buildings.

Tertiary industry

Industries providing support services like banking, transportation, and communication to primary and secondary industries.

Commerce

All activities required for the exchange of goods and services and the removal of hindrances related to people, place, time, finance, risk, and information.

Trade

The buying and selling of goods and services with an aim to earn profit.

Wholesale trade

The buying and selling of goods and services in large quantities.

Retail Trade

The buying and selling of goods and services in small quantities.

Internal Trade

Buying and selling of goods or services within the geographical boundaries of a country.

External Trade

Buying and selling of goods or services beyond the geographical limits of the country, involving imports, exports, and entreport.

Entreport

Importing goods and services from one country and exporting them to a third country.

Auxiliaries to Trade

Activities that assist buying and selling by removing hindrances, including Transport, Banking, Insurance, Warehousing, Advertising, and Middlemen.

Business Risk

The risk caused by inadequate profits or losses as a result of uncertainties or unexpected events.

Uncertainty

The lack of knowledge about what is going to happen in the future, such as changes in demand, government policies, or natural calamities.