Nature and Scope of Business — Flashcards

Answer

An economic activity is any human activity undertaken with the main objective of earning money or livelihood. For example, a farmer growing crops for sale or a teacher working in a school for a salary…

Answer

Economic activities are performed to earn money, such as a doctor treating patients for a fee or a shopkeeper selling goods. Non-economic activities are done for self-satisfaction or social cause with…

Answer

Business refers to regular economic activities involving the production, purchase, or sale of goods and services with the main objective of earning profit. For example, a tailor stitching clothes regu…

Answer

The main characteristics of business are: (1) It involves production or sale of goods/services, (2) It is a regular activity, not one-time, (3) Profit is the main objective, (4) It requires capital in…

Answer

Regularity means the activity is ongoing, not occasional. For example, if you sell your old bicycle once, it's not business. But if you buy and sell bicycles regularly, it becomes a business. Regulari…

Answer

A profession is an occupation that requires special knowledge, training, and skills, usually acquired through formal education. Professionals provide expert services and charge a fee. Examples include…

Answer

Employment is an occupation where a person (employee) works for another (employer) under a contract and receives salary or wages. For example, a postman working for the Department of Posts gets a mont…

Answer

In business, specific qualification is not required and capital investment is a must. In profession, professional knowledge and training are essential, and some capital is needed for setup. In employm…