Entrepreneurial Activities: Trading, Manufacturing, and Service

Vocabulary flashcards covering core definitions, store types, manufacturing components, and economic concepts from Unit 4: Trading.

Trading

The entrepreneurial activity of buying and selling goods without changing their form or nature.

Retailing

Selling goods or services in small quantities directly to final consumers for personal or organizational use.

Wholesaling

Selling goods in large volumes, typically to retailers or businesses.

Manufacturing

The process of converting raw materials into finished products through labor and equipment.

Service Business

A business where the primary product is work or specialized skills provided to customers, rather than a physical good.

Hypermart

A large-scale store that combines grocery and general merchandise, such as SM Hypermart.

Price Clubs / Warehouse Clubs

Retail operations that focus on bulk buying at wholesale prices for members, such as Makro.

Direct Marketing

A form of non-store trading where sellers build personal relationships with buyers, often marketing directly to friends, family, and community members.

Direct Labor

Work that directly converts raw materials into products, such as that done by a carpenter, sewer, or assembler.

Factory Overhead

Production costs other than direct labor and raw materials, including electricity, supervisor salary, rent, and water.

Personal Services

Service businesses providing everyday work for individual customers, such as beauty parlors, spas, barber shops, laundry shops, and repair shops.

Professional Services

Service businesses that create value through specialized knowledge and skills, such as medical, dental, accounting, and legal services.

Profit

The reward for entrepreneurial effort, calculated using the formula: $\text{Profit} = \text{Selling Price} - \text{Cost and Expenses}$.

Mark-up

Setting the selling price of a product or service above total cost and overhead to ensure profit.

Final Consumers

Individuals or business units that buy goods or services for personal or organizational use.

Retail Turnover

The speed at which inventory is sold; fast turnover reduces shelf costs and improves cash flow for the business.

Shelf Costs

Expenses incurred when products sit on shelves too long, including space, electricity, and handling costs.

Electronic Marketing

A non-store retailing method that reaches consumers through online stores, websites, and e-commerce platforms.