Unit 2
THE HISTORY AND THE PRESENT
OF BUSINESS
READING COMPREHENSION CHECK
Introduction
WHAT IS
BUSINESS?
Business is a word, which is
commonly used, in many
different languages.
Traditionally,
business simply meant
exchange or trade for
things people wanted or
needed.
• The concepts and activities of
business have increased in
modern times.
Today business has a more
technical definition:
the production, distribution,
and sale of goods and services
for a profit.
Production
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.
Distribution
The products need to be moved
from the factory to the
marketplace - distribution.
Example:
A car might be moved from a factory in
Detroit to a car dealership in Miami.
Sale
The sale of goods and services
which is the exchange of a
product or service for money.
Example:
A car is sold to someone in exchange for
money.
Goods
Goods are products which
people either need or
want.
Example: cars can be
classified as goods.
Services
Services are activities which a
person or group performs for
another person or
organization.
Example:
An auto mechanic performs a
service when he repairs a car.
Profit is the money that
remains after all the
expenses are paid.
Goal
Creating an economic surplus or
profit is, therefore, a primary goal
of all business activity.
Decide if the following statements are true (T) or false
(F) according to the text. Correct the false ones.
1. People started doing business at the start of the
Industrial Revolution.
T / F
2. Business is a synonym for commerce. T / F
3. To be successful at business, one has to be
experienced and skillful. T / F
4. The most important goal of all businesses is making
money. T / F
5. Business as an organization is risk-free.
T / F
6. The invention of railroad accelerated the
development of business. T / F
7. Business as an organization is risk-free. T / F
I Answer the following questions:
1. What does the word business imply?
2. When did people start doing
business?
3. What are the main differences
between the way people did business
a hundred years ago and today?
3. What does it take to be successful at
business?
V Complete the table:
VERB
NOUN
ADJECTIVE
manufacture
-
available
exchange
trade
demand
-
commerce
valuable
economy
Synonyms
• claim
(state, say, allege, declare)
• advent
(appearance, arrival, start, beginning,
introduction, initiation)
• barter
(exchange, switch, swap)
• evolution
(development, growth, progress, advancement)
Synonyms
• availability
(accessibility, reachability, ease of use)
• profound
(deep, intense, weighty, reflective, thoughtful)
• per-capita
(per person, per head)
• provide
(supply, make available, grant, endow with)
• reliable
(consistent, steadfast, trustworthy, dependable)
• industries
(commerce, production, engineering, manufacturing)
Synonyms
• primary
(main, chief, most important, key, prime, principal)
• satisfaction
(pleasure, approval, agreement)
• fulfillment
(completion, execution, accomplishment, implementation,
realization)
• concern
(apprehension, unease, distress)
• distinguish
(differentiate, discriminate, make a distinction, discern)
Synonyms
• commerce
(trade, buying, selling, exchange)
• constitute
(make up, comprise, compose, represent)
• aim at
(intended, expected, designed)
• uncertainties
(fears, suspicions, qualms, doubts)
• theft
(robbery, burglary, thievery)
• distribute
(allocate, give out, dispense)
Find the words in the grid. Words can go horizontally, vertically
and diagonally, backwards or forwards
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