Nature and Purpose of Business Test - 1

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.

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

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.

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. 

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.

The percentage of total sales for a product in a particular market that a business accounts for is the market standing for that company. The word marketing standing is concerned with Position of an enterprise.

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.

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.