Nature and Purpose of Business Test - 9

Economic causes relate to fluctuations in demand and price or changes in the market condition. There may be loss because of price fluctuations, trade cycle, severe competition and unforeseen changes in the techniques of production.

A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities, towns and villages.

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

Business activities are primarily driven by the motive of earning profit.

Employment typically involves working for an employer with fixed working hours, whereas business and profession may offer more flexibility in working hours.

Trade involves the exchange of goods or services for profit, distinguishing it from employment or profession.

Manufacturing business activities involve the conversion of raw materials or components into finished goods.

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.

Advertising is an audio or visual form of marketing communication that employs an openly sponsored, nonpersonal message to promote or sell a product, service or idea.

Service business activities involve the provision of intangible services such as banking, healthcare, and education.