Nature and Purpose of Business Test - 4

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.

Natural Causes: Risks which arise due to the actions of Nature (and hence uncontrollable) are called natural risks. For example, risk of rainfall not occurring on time or excessive rainfall causing flood is a serious risk for farmers.

Economic activities are related to production, distribution, exchange and consumption of goods and services(profession). Professionals involved in their profession to make money or earn their livelihood, hence it is an economic activity.

Main Causes of Business Risk, Natural Causes,Human Causes,Competition,use of modern technology,government policies.

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.

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.

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. Business is an economic activity.

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.

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.

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.

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. Since Business, Profession and Employment are activities carried out to earn one's livelihood, they are all called Economic activities.

Transport or transportation is the movement of humans, animals and goods from one location to another. Communication is simply the act of transferring information from one place to another.

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.

Human causes are very important causes of business risks. These causes include dishonesty, carelessness and negligence of employs, riots, strikes, etc. Irrational approach of the management or the owners of the business is also a type of human failure which causes business risk.

Auxiliaries to trade or aids to trade also provide necessary support to trade. Such as transport, warehousing, banking and finance, and insurance. Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money.