Nature and Purpose of Business Test - 2

Business activities include any activity engaged in the primary purpose of making a profit. This is a general term that encompasses all the economic activities carried out by a company during the course of business.

Secondary industry involves manufacturing products using raw materials from primary industries. Industry that converts the raw materials provided by primary industry into commodities and products for the consumer; manufacturing industry.

Auxiliaries to trade or aids to trade also provide necessary support to trade. Such as transport, warehousing, banking and finance, and insurance. Mining is primary industry.

Employment is a relationship between two parties, usually based on a contact where work is paid for, where one party, which may be a corporation, for profit, not for profit organization, co operative or other entity is the employer and the other is the employee. Emplyees work for others/ 'Employer' for remuneration.

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.

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.

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.

A business (also known as an enterprise, a company or a firm) is an organizational entity involved in the provision of goods and services to consumers. Keeping busy in the activities earning profit.

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.

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.