Nature and Purpose of Business Test - 1

Explanation:

Employment provides salary and an opportunity to earn livelihood. Making money is the purpose of any economic activity and to reach higher goals /target in the amount earned is the continuous process.

Explanation:

Economic activities are related to production, distribution, exchange and consumption of goods and services. Since Business, Profession and Employment are activities carried out to earn one's livelihood, they are all called Economic activities.

Explanation:

Business refers purchase and sales of goods with objective of earning profit. Business activity is an economic activity because it is related with money. Business is an economic activity.

Explanation:

A profession is a vocation founded upon specialized educational training, the purpose of which is to supply disinterested objective counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain. Manufacturing comes under industry / business.

Explanation:

Economic activities are related to production, distribution, exchange and consumption of goods and services. The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer. Since earning profit is the major objective of business, it is an economic activity.

Explanation:

Making money is the purpose of any economic activity and to reach higher goals /target in the amount earned is the continuous process. Economic activities create economic or financial gain by producing goods or services.

Explanation:

Economic activities are related to production, distribution, exchange and consumption of goods and services(profession). Professionals involved in their profession to make money or earn their livelihood, hence it is an economic activity.

Explanation:

Business risk is the possibilities a company will have lower than anticipated profits or experience a loss rather than taking a profit. Business risk is influenced by numerous factors, including sales volume, per-unit price, input costs, competition, and the overall economic climate and government regulations. Good management means taking proper decisions avoiding risk.

Explanation:

Business objectives are the stated, measurable targets of how to achieve business aims. Investment is one of the features of the business and not the objective.

Explanation:

Tertiary industries provide services which are auxiliary to trade and ensure the smooth transfer of goods from producer to consumer. Auxiliaries to trade or aids to trade also provide necessary support to trade. Such as transport, warehousing, banking and finance, and insurance.