Nature and Purpose of Business Test - 6

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.

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss.

Banking services facilitate payment transactions between buyers and sellers, ensuring smooth trade operations.

Consumers buy things that producers make or sell. Commerce provides the necessary link between Producers and Consumers.

Secondary Industry involves the transformation of raw materials into finished or semi-finished products. Oil refineries process crude oil into various petroleum products, while sugar mills process sugarcane into sugar. These processes involve manufacturing and processing, placing them under the category of secondary industry.

Trade involves the transfer of goods or services from one person or entity to another, often in exchange for money. Trade is an essential part of commerce.

Genetic industries are those industries which are engaged in re-production and multiplication of species of plants and animals with the sole objective of sale. These industries are engaged in activities such as animal breeding, cattle breeding, etc. 

Entrepreneurship involves individuals assuming risks and uncertainties associated with ventures, unlike employment or professional services where risks may be lower.

Extractive business activities involve the extraction of natural resources such as mining, fishing, and forestry.

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.