Chapter 1 Flashcards
Define Trade
- Trade refers to the process of transfer of goods and services from one person to another
- It refers to all the activities that are related to the transfer of goods and services from one person to another (often in exchange of money)
Define market
- A network that allows people to trade is called a market
- A place where people (buyers and sellers) are connected and facilitates people to buy and sell their goods
Explain Barters system
- Goods for goods
- Goods for precious stones and coins
- Goods for money
- Goods for non physical money (card, G pay)
Explain spice route
Spice route was the marine time route that connected the east and west by sea allowing for the trade of spice to happen
Explain silk route
Silk route was the commercial and political links with adjoining kingdoms and empires of Asia by land
Define chitti
A piece of paper containinng documents
Define hundi
Warrant the payment of money, the promise or order which is unconditional. Capable of change through transfer by valid negotiation
What is the acronym for all the hundis
SDFDhJN
Some Donkeys Food Didn’t have Nan and Jam
Exaplain all the hundis
- Sahyog hundi
It can be transferred to others - Dhani jog hundi
payable to holder or bearer - Furman jog hundi
payable to the persons name said by the issuer of the hundi or to the person whose name is written in the hundi - Dharshani hundi
similar to a demand bill, payable on site and should be presented for payment within a reasonable period of time - Jokhim hundi
It is not a negotiable hundi and is conditional in nature - Nan jog hindi
It cannot be endorsed
Examples of interidierries
- Comission agents
- Brokers
- Distributers
explain rise of intermidierries - jagath seth
- Includes rich business man in banking and money lending
- Had a great influence during moghal and east india company period
- Made loans , advances and others more prominent helping trade improve manifolds
explain rise of intermidierries - transport
- New landways and waterwys were discovered which facilitated movement of goods and services
- pepper was known as balck gold and was in great demand in the roman empire
- Puicat located in the coramental coast was a major trade centre to south east asia
What are the different trading communities with their locations?
Chatt : southern india
Bhatt : Gujarat and rajasthan
Punjabi and multani merchants : northern India
Mahajan : Western India
Mahajan : In Ahmedabad under their chief nagarseth
Explain merchant operations
- Merchants organised themselves into guilts which safeguard their interests
- And these guilts laid down the imposition of many taxes including, ferry tax, trade and industry tax and octroi tax and custom duties
Acronym for the order of major trade centres
PPT IMV MUS KM
precipitation, i must vin, MUSlim, kanchi,madhura
Major exports in ancient India
- Live animals
- Sugar
- Spices
- Cotton
- Wheat
Exaplain all the major trade centres
- Patali putra
Major export centre for stones - Peshwar
Imports arabian horses - Taxila
Located in punjab pakistan known for its commercial centres and is a place of buddist learning - Indraprasta
It was the royal road which lead to the south, north , west and east of india - Madhura
important route to sounthern indian parts - Varanasi
Famous for sandalwood worksmanship - Mithila
Set up trading coonies in China especially Yun Nan - Ujjain
Materials like muslin and mallow were exorted outside from here - Surat
It was popular for its gold borders - Kanchi
They purchased pearls, glass and stone in return of gold and silk - Madurai
Capital of pandyas, controlled the pearl fisheries of the gulf of mannar
Major imports in ancient India
- Arabian horses
- Chinese silk
- Wine
- Gold
- Silver
Explain make in India programme
- Launched by prime minister Modi in the year 2014
- To inspire confidence in Indias capabilities amongst potential partners abroad
- Reach out to local and international audience through social media to keep then updated about the oppurtunities in india
- Also aimed to develop the manufacturing sector as a whole
Re industrialisation of India with year
- First five year plan started in 1952
- it emphasised on the development of modern technology and industries and also on space research and nuclear research
Definition/characteristics of business
- Is an economic activity
- produces or procures goods
- deals with goods and services
- profit earning
- uncertainty of return
- element of risk
- sale or exchange of goods or services
Define employment
Employment refers to the occupation in which people work for others and get salaries in return
Define professional
- Is an economic activity
- Which requires specialised knowledge and skills
- There exists professional organisations for these professionals which come up with the code of conduct for them to follow
Define economic activities
People earn their livelihood from it
Differentiate between business, profession and employment - mode of establishment
Business - When the entrepreuner has the idea to start a business
Professional - When certificate of practise and expertise in the relevant subject is gained
Employment - Upon receieving the joining letter from the employer
Define non-economic activities (like examples of non-economic activities in statistics)
Performed out of motives like, religious, parental,political,social and charitable
Differentiate between business, profession and employment - nature of work
Business - providing services and goods to others
Professional - Rendering their expertise services to the society
Employment - Doing what their employment contract expects them to
Differentiate between business, profession and employment - qualification
Business - No minimum qualification
Professional - Expertise knowledge in area concerned and training in the field
Employment - Qualifications specified by the employer
Differentiate between business, profession and employment - return or reward
Business - profit
Professional - fees
Employment - salary or wages
Differentiate between business, profession and employment - capital investment
Business - Essential
Professional - Limitted
Employment - Not necessary
Differentiate between business, profession and employment - risk
Business - high risk
Professional - limitted risk
Employment - no risk
Differentiate between business, profession and employment - transfer of interest
Business - possible
Professional - not possible
Employment - not possible only possible in case of some government jobs
Differentiate between business, profession and employment - code of conduct
Business - No prescribed code of conduct
Professional - code of conduct issued by their professional organisations
Employment - code of conduct prescribed by their employer
acronym for Differentiate between business, profession and employment (basiss)
MNQRCRTCC
Man No Questions Raised Coming Right T CC
Define primary industry
Is connected with the extraction and production of natural resources. It is classifies into two types genetic and extractive industry
Define genetic industry
It related to breeding plants and animals fro their use in future reproduction
Define extractive industry
Relates to extraction of products from natural resources
Define secondary industry
It is concerned with using the materials extracted in the primary stage to produce goods for final consumption or for further manufacturing. It has two types, construction and manufacturing industries.
Define construction industry
The industry related to the construction of monuments, dams, buildings and etc
Define manufacturing industry
Engaged in production for final consumption and creates form utilities
acronym for types of manufacturing industry
ASAP
Types of manufacturing industry
- Analytical industry
- Synthetical industry
- Processing industry
- Assembling industry
Define analytical industry
Refers to the Analysis and Seperation of different materials from one material (eg. crude oil)
Define synthetical industry
Manufacturing of new products by combining various ingredients (eg. Cement)
Define teritiary industry
- The organisations that provide support services to the primary and secondary industries in addition to activities relating to trade are referred to as teritiary industries
Define processing industry
It involves the successive stages for manufacturing finished products (eg. packaging and marketing)
Define assembling industry
- Assembling industry is where the parts are exported from other places and are assembled here locally as exporting the entire machine might not be feasible
- It creates a new product by assembling different components (eg. cars and phones )
Define commerce
- Commerce includes all those activities that facilitates the movement of goods from the producers to the ultimate consumers. It has two segments trade and auxiliary to trade
Define transportation
- Transportation creates place utility
- Transportation and communication facilitates the movement of goods and people from one place to another
Define insurance
- Insurance creates risk utility
- Insurance helps secure the industry from various types of risks which may cause a low profit , no profit or a loss
Define banking and finance
- It creates finance utility
- Finance is said to be the life blood of business
Define warehousing
- creates utility of time
- Acts as a place of storage from the time it is manufactured to the time it is consumed by the consumer
Define advertising
- Creates utility of knowledge
- Aims to inform consumer about the firms products
What are the main objectives of a business
Profit and multiple
what are the subdivisions of the multiple objective
Economic
Social
Others
Examples of economic objectives
- Market standing
- Innovation (product, production and distribution)
- Profit earning
- Productivity
- Physical and financial resources
Acronym for examples of economic objectives
MI PPP
Examples of social objectives
- supply of desired quantity of goods and services
- Generate employment
- Community services
- Employee welfare
- Protect the environment
Examples of other objectives
- manager performance and development
- Employee atitude and performance
(DA)
Exaplain pure risk
if the incident happens there will be a loss (eg. fire breaking out)
Explain speculative risk
if the incident happens there will guarantee to be a profit or a loss (eg. introducing a new car model)
What are the 4 causes of risks
-Economic
-Natural
-Human
-Other
Examples of natural cause of risks
Flood, earthquakes , riots
What are the two types of risks
pure and speculative
Examples of Economic causes of risks
increase in tax, inflation and shrinkflation
Examples of human cause of risks
dishonesty or worker negligence
Examples of other causes of risks
change of government and political changes - sudden change of prime minister
