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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 mode
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 а 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 group performs for another person or organisation. 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.

COMPREHENSION
A. Answer the following questions about the meaning of business. The questions which are starred (*) cannot be answered directly from the text. Space is provided at the end for you to add your own...