Business is a word
which is commonly used in many different languages. But exactly what does it
mean? The concepts and activities of business have increased in modern times.
Traditionally, business simply meant exchange or trade for things people wanted
or needed. Today it has a more technical definition. One definition of business
is the production, distribution, and sale of goods and services for a profit.
To examine this definition, we will look at its various parts.
First, production is
the creation of services or the changing of materials into products. One
example is the conversion of iron ore into metal car parts. Next these products
need to be moved from the factory to the marketplace. This is known as
distribution. A car might be moved from a factory in detroit to car dealership
in Miami.
Third is the sale of
good and services. Sale is the exchange of a product or service for money. A
car is sold to someone in exchange for money. Goods are products which people
either need or want; for example, cars can be classified as goods. Services, on
the other hand, are activities which a person or group performs for another
person or organization. For instance, an auto mechanic performs for another
person or organization. For instance, an auto mechanic performs a services when
he repairs a car. A doctor also perform a services by taking care of people
when they are sick.
Business, then, is a
combination of all these activities: production, distribution, and sale.
However, there is one other important factor. This factor is the creation of
profit or economic surplus. A major goal in the functioning of an American
business company is making a profit. Profit is the money thatremains after all
the expenses are paid. Creating an economic surplus or profit is, therefore, a
primary goal of business activity.
1. What is the main
idea of paragraph 1 ?. Business is a word which is commonly used in many
different languages
2. How does the modern
meaning of business differ from the traditional one ?. The concepts and
activities of business have increased in modern times. Traditionally, business
simply meant exchange or trade for things people wanted or needed
