2. 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 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 a 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 a profit is, therefore, a primary goal of business activity.

Vocabulary

word	слово
commonly	обобщенно
exactly	точно
to mean	значить, означать
to increase	увеличить
definition	определение
various	различный
trade	торговля
sale	продажа
goods	товары
profit	прибыль
goal	цель
surplus	излишек
combination	соединение
primary	первичный
to remain	оставаться
to classify	классифицировать

1. Переведите слова и выражения.

In many different languages; the concepts and activities; more technical definition; business is the production; moved from the factory; of goods and services; an auto mechanic performs; creating an economic surplus; many different languages; what does it mean; more technical definition; at its various parts; sale is the exchange; one other important factor; major goal; when he repairs a car; which people either need or want; in exchange for money.

1. Дополните предложения и переведите русские словосочетания на английский язык.

1. Business is a word which is commonly used (на различных языках) ....

2. Traditionally, business simply meant (обмен или продажа).... people wanted or needed.

3. (Одно из определений бизнеса, это - ) the production, distribution, and ....

4. First,(производство, это - ).... of materials into products.

5. (Продажа) is the exchange of....

6. (Товары) are products which people either need or want; for example ....

7. (Услуги), on the other hand .... for another person or organization.

3. Ответьте на вопросы.

1. What is one of modern definition of business?

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

3. What factors have brought about these changes?

4. What does production involve?

5. What example of distribution is given in the reading? Can you think of another example?

6. How do goods differ from services?

7. In addition to production, distribution, and sale, what other factor is important in defining business?

8. What is a profit? In general, what do companies do with their profits?

1. Тест. Выберите правильный вариант.

1. The concepts and activities of business .... increased in modern times.

1. have

2. had

3. has

2. One definition of business is the production,…, and sale of goods and services for a profit.

1. distribution

2. planning

3. promotion

3. Sale is the exchange of.... product or service for money.

1. a

2. the

3. -

4. A major .... in the functioning of an American business company is making a profit.

1. business

2. goal

3. exchange

5. Вставьте предлог.

1. The concepts and activities ... business have increased ... modern times.

2. One definition ... business is the production, distribution, and sale ... goods and services ... a profit.

3. A car might be moved ... a factory ... Detroit to a car dealership ... Miami.

1. Business, then, is a combination ... all these activities: production, distribution and sale.

2. A major goal... the functioning ... an American business company is making a profit.