Introduction To Commercial Organisation Flashcards
Define the term business
As quoted by James stephenson economic activities performed for earning profits are termed as business
Give four characteristics of business
Sourav analysis of the definition gives us for main characteristics of business
1. Profit motive- a business that does not earn profits cannot survive for long ,profits are also essential for the growth and expansion of the business
2. Regular dealings- recurring purchase in sale is the Hallmark of business .a single transaction cannot be called business as business involves a series of dealing
3. Element of risk - risk implies the possibility of loss due to uncertainties of future
4. Creation of utilities- a business create for utility by converting raw materials into finish products place utilities created to transportation and duties created through storage
Define commerce
As quoted by James stephenson commerce is a sum total of those process which are engaged in the removal of hindrance of persons (trade), places (transport and insurance) and time (warehousing) in the exchange (banking) of commodities. It is an organised system for exchange of good and services between the members of the industrial world.
Distinguish between industry and Commerce
Even though industry and Commerce are both parts of business industry deals with Al those business activities which are concerned with production of goods where as commerce deals with trade and auxiliaries to the business activities hence commerce helps in the removal of hindrance in a business
What are AIDS to trade
The AIDS to trade are the message by which we can remove different types of hindrances for example the hindrance of person can be removed by establishing a link between producers and Consumers which also means having trade and hindrance of place can we remove by transportation
What is meant by economic activities
Economic activities means any human activities that are undertaken to earn money and to help create wealth for the basis of economic development
Differentiate between shade and Commerce
