Business, Trade and Commerce

Topics in this chapter

• Business Concept and Characteristics
• Business Objectives and Economic Activities
• Industry Classification and Manufacturing
• Trade and Commerce Structure
• Auxiliaries to Trade
• International Trade and Import-Export
• Business Risk and Insurance

Cheat sheet

Practice questions

1. Question 1Q-8184C5

   Which of the following activities is NOT considered a part of business according to the economic and commercial perspective?

   1. A.Production of electronic goods
   2. B.Wholesale distribution of medicines
   3. C.Cooking food at home for family members
   4. D.Providing commercial banking services
   See the answer and solution
2. Question 2Q-7DF670

   The branch of commerce that removes the hindrance of person by making goods available from producers to consumers is known as:

   1. A.Transport
   2. B.Trade
   3. C.Warehousing
   4. D.Advertising
   See the answer and solution
3. Question 3Q-846ED7

   A textile manufacturer in India exports cotton garments to a retail chain in the United States. What type of international trade does this transaction represent?

   1. A.Import trade
   2. B.Export trade
   3. C.Entrepot trade
   4. D.Internal trade
   See the answer and solution
4. Question 4Q-C048D8

   Which of the following auxiliary to trade helps in removing the hindrance of time by storing goods during the period between production and consumption?

   1. A.Transportation
   2. B.Banking
   3. C.Warehousing
   4. D.Insurance
   See the answer and solution
5. Question 5Q-138847

   Which of the following is considered a primary cause of business risk arising from human factors?

   1. A.Lightning and floods
   2. B.Employee theft and strikes
   3. C.Fluctuation in tax rates
   4. D.Obsolescence of machinery
   See the answer and solution