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 questions.

1. What is one modern definition of business?

2. *How does this modern meaning of business differ from the traditional one? *What factors have brought about these changes?

3. What does production involve?

4. What example of distribution is given in the reading? Can you think of another example from real life?

5. How do goods differ from services?

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

7. What is profit? *In general, what do companies do with their profits?

8. Compare your definition of business with the one given in the reading. *How are they similar? *In what ways does your definition differ from the one presented in the text?

9. Additional questions____________________

B. Determine which of the following statements true and which are false. Then put T or F in the blanks. Correct those statements which are false by rewriting them.

1. ___ Business is not just one activity but a combination of different operations such as production, distribution and sale.

2. ___ From ancient to modern times the definition of business has remained the same.

3. ___ Moving a truckload of oranges from the orchard to the supermarket is an example of production.

4. ___ A sales clerk provides a service by answering customers' questions.

VOCABULARY EXERCISES

A. Look at the terms in the left-hand column and find the correct synonyms in the right-hand column. Copy the corresponding letters in the blanks.