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What is business ?

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 a car dealership in Miami.

Third is the sale of goods 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 product 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 a service when he repairs a car. A doctor also performs a service 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 that remains after all the expenses are paid. Creating an economic surplus or profit is, therefore, a primary goal of business activity. (Taken from Business Concepts for English Practice by Barbara Tolley Dowling and Marianne McDougal)

I.           Question

1)     What is the title from the text above?

2)     How does the modern meaning of business differ from the traditional one?

3)     What is the “production”?

4)     What is the “distribution”?

5)     What is “goods”?

6)     What is “sale”?

7)     What is “profit”?

8)     What is the primary goal of business activity?

II.       Multiple Choise

1)     What is the main idea of paragraph 1…

a.   What is business ?

b.   The definition of business

c.   Business is a word used in many different languages

d.   What people used in business

2)     The followings are activities in business except…

a.   Purchasing

b.   Sale

c.   Distribution

d.   Production

3)     A business consultant performs expert advice in business…

a.   Production

b.   Service

c.   Distribution

d.   Sale

4)     The main purpose of business activity is to gain…

a.   Goods and service

b.   Market place

c.   Profit

d.   Expenses

5)     The word “it” in line 4 refers to…

a.   Business

b.   Definition

c.   Traditional

d.   Exchange

6)     The sale of goods and services has the goal to create…

a.   Distribution

b.   Surplus

c.   Trade

d.   Production

7)  In order to bring products from factory to consume, a good channel of required…

a.   Production

b.   Service

c.   Distribution

d.   Economic surplus

8)     The followings can be classified as goods except…

a.   Books

b.   Papers

c.   Customer service

d.   Cars

9)     The word “conversion” in line 9 has the same meaning as…

a.   Change

b.   Exchange

c.   Products

d.   Transporting

10) The word “he” in line 18 refers to…

a.   A doctor

b.   An auto mechanic

c.   People

d.   A service

III.   True or False

1)      Definition of business is the production, distribution, and sale of goods and services for a profit.

2)      In modern times business simply meant exchange or trade for things people wanted or needed.

3)      Production is the creation of services or the changing of materials into products.

4)      Loss is the money that remains after all the expenses are paid.

5)      Service is the exchange of a product or service for money.

IV.      Answer Key

*Question*

1)      What is business ?

2)   Traditionally, business simply meant exchange or trade for things people wanted or needed. In modern time  business is the production, distribution, and sale of goods and services for a profit.

3)      Production is the creation of services or the changing of materials into products.

4)      Products move from the factory to the marketplace

5)      Goods are product which people either need or want.

6)      Sale is the exchange of a product or service for money.

7)      Profit is the money that remains after all the expenses are paid.

8)      Economic surplus or profit.

*Multiple Choise*

1)     C

2)     A

3)     B

4)     C

5)     A

6)     D

7)     C

8)     C

9)     A

10) B

*True or False*

1)     T

2)     F

3)     T

4)     F

5)     F

Reference

Reference of the text : Seri Diktat Kuliah Bahasa Inggris I Universitas Gunadarma