BUSINESS /COMMERCE Flashcards
Business - Commerce - Economics - Branches of commerce: Profession - Industry -Trade - Marketing - Subject matter/Functions /Scope/Importance of Commerce: Auxiliary to trade - Qualities of Good Businessman.
What is the definition of a profession according to the Oxford Dictionary?
• A paid occupation.
• Requires advanced education and training.
• E.g. Architecture, Doctor, Law, Singing, Dancing, etc.
How does Chambers Dictionary define “profession”?
- An employment that is not mechanical and requires some degree of learning.
- A calling, habitual employment.
- The collective body of persons engaged in any profession.
What are some alternative terms for “profession”?
• Calling,
• vocation, or
• line to earn a livelihood.
What does Webster Dictionary state about the characteristics of a profession?
• A vocation or occupation.
• Requires advanced education and training.
• Involves intellectual skills.
• E.g. Medicine, Law, Engineering, Teaching, etc.
How is industry defined and what are some examples?
Industry has been defined as,
• All business and economic activities that create goods and services.
• E.g. the automobile industry includes companies that manufacture cars.
Industry has also been defined as follows:
1. Any branch of manufacture and trade.
2. Any systematic economic activity.
3. Commercial undertaking that provides services.
(e.g. Catering, Hotel, Tourist, Entertainment, etc.)
Define what is trade and mention types?
• Process of buying and selling.
• Involves the exchange of goods and services.
• First part of the marketing function (Function of Exchange).
• Types includes:
o Home Trade: Trade conducted within a country.
o Foreign Trade: Trade conducted between countries.
What is the definition of Marketing?
Marketing can be defined as:
• The process by which goods and services move from production to consumption.
• Involves all activities that facilitate this movement, such as:
o Pricing,
o Promoting, and
o Distributing products.
What is the definition of business according to Straub and Attner?
• An organization
• Engaged in producing goods and services
• Aims to make a profit
What is the definition of commerce?
• Concerned with the exchange of goods.
• Involves all activities related to transfer of goods from production to ultimate consumers.
How did Alfred Marshall define economics in Principles of Economics (1890)?
Alfred Marshall defined economics as:
• A study of mankind in the ordinary business of life.
• Examines individual and social actions.
• Focuses on actions closely connected with:
o The attainment, and
o The use of material requisites for well-being.
What are auxiliary activities to trade?
• Are the activities that facilitate the trade in exchange for goods,
• Are also part of commerce and include:
1. Banking and Finance
2. Transportation
3. Warehousing/Storing
4. Insurance
5. Advertising
Discuss the role of banking and finance as auxiliaries to trade.
• No trade or business activities can take place without funds.
• Finance is the lifeblood of commerce and industry.
• Every commercial activity requires capital and loans.
• Banking involves:
o Acceptance of deposits from the public.
o Giving credit or loans.
• Through banking:
o Producers and middlemen get needed funds.
o Banks help businessmen in foreign trade.
What is the role of transportation in trade?
• Carries goods from producers to traders and finally to consumers.
• No trade or business activities can take place without transportation.
• Helps producers and wholesalers sell their goods in the market.
• Creates place utility.
• Three main routes of transportation: land, air, and sea.
What are the characteristics of Marine/Sea Transport?
• Lowest cost.
• Used for shipping heavy or voluminous goods.
• Most world trade takes place by sea.
What are the characteristics of Air Transport?
• Quick but costly.
• Suitable for light and compact goods.
• Used when time is important.
What are the characteristics of Land Transport?
• Vital for inland trade.
• Requires an efficient network of roads, motorways, highways, carriageways, and tracks.
• Includes railway carriages, trucks, and animal carts.
What is the role of warehousing in commerce?
• Without storing or warehousing, commercial functions cannot be imagined.
• Goods must be stored before they are sold and are needed immediately after production.
• Refers to holding goods from the time they are produced until they are consumed.
• Creates time utility.
What role does insurance play in business?
• There are many inherent risks to business, including loss of goods due to accidents, theft, fire, flood, etc.
• These risks can be mitigated with the help of insurance companies.
• Insurance companies:
o Undertake to compensate for the loss.
o Receive a small amount of premium in advance as consideration.
What are insurable risks?
• Risks covered under an insurance policy.
• E.g. Theft, Fire, Sea hazards, etc.
What are uninsurable risks?
• Risks that cannot be covered by insurance.
• E.g. Unfavorable changes in prices, fashion, consumer tastes, Competition, etc.
What is the role of advertising in commerce?
• Goods cannot be sold until consumers become aware of their quality and price.
• Plays a very important role in providing information about goods to a large number of consumers.
Enlist 5 professional qualities of a good businessman.
- Knowledge of Business
- Goal-Oriented
- Well-Informed
- Research Skills
- Innovative Thinking
Enlist 5 personal qualities of a good businessman.
- Strong Personality
- Hard Worker
- Honesty
- Courageous
- Foresight
Good businessman has several professional qualities. Discuss knowledge of business.
Understanding business principles and industry dynamics to make informed decisions.
