Nature and Purpose of Business Test - 8

Business activities involve economic transactions aimed at generating profit, unlike non-business activities.

Retailing involves the sale of goods directly to consumers, acting as an intermediary between producers and consumers.

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.

Agriculture involves the cultivation of crops, raising of livestock, and other activities related to farming.

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.

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.

Risk-taking is inherent in business activities and involves accepting uncertainty and potential losses for potential rewards.

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.

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

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.