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THC10 Trading Business

Trading Business Answers

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26 views3 pages

THC10 Trading Business

Trading Business Answers

Uploaded by

marbellaromeo26
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Topic: Trading Business

Group Members:
Marbella, Romeo Jr. M.
Razonable, Litogie
Davila, Johndel
Deleon, Harvey Ryan

Trading or Merchandising – is the buying of goods and selling the same without
change in form.
Retailing – When Goods are sold in small quantities.
Wholesaling – When goods are sold in big quantities or in volume.
There are Three types of entrepreneurial business
1. Trading – The most popular non-store trading is direct marketing. The seller
builds a personal and continuous relationship with buyers. Many times the buyers
are friends and relatives of the seller.
2. Manufacturing – is the process of converting raw materials into finished
products.
3. Service – is doing work with others. Ex. Medical, Dental, Repair shop, and
Laundry shops.
Different types of trading business.
The different types of trading business are store trading and non - store trading.
Store Trading is classified as to:
A. Amount of service – self service, limited service, full service
B. Product line – department store, convenience store
C. Retail prices – Discount store, off price retailer
D. Control outlets – Franchise, chain store
E. Type of store cluster – Shopping center
Non – Store retailing includes;
A. Direct marketing – door to door retailing, automatic vending
B. Catalogue marketing
C. Television marketing
D. Telemarketing
E. Television marketing
F. Electronic marketing

Effects of Trading in Business


Trading cannot be avoided. Whenever you go, even in rich countries, people buy in
retail. In retail business turnover of goods is fast, thus money inflow is also fast.

Impact of Trading to Business


Trading is the path whereby inflow of cash from the buyers to the company passes. It is
very important considering the dialogue below;

Products produced are sold either on retailor wholesale. From the sales revenue, the
businessman procures raw materials again for his production cycle perhaps buy
additional tools and equipment for the expansion. Thus more products are produced
and sold. If his products cannot be absorbed by one store only, he offers his products to
other stores. Thus, operations expand and grow.
The Benefits of Retailing
1. Retailing allows the fast movement of products.
2. It encourages people to buy more by giving preferential benefit to
customers.
3. Enhances buyer- owner relationship
4. Low budget families would be able to buy products in small
quantities
5. Retailing is the answer to small business, whose needs is only for a
couple of days for a small family.
6. Retailing is a strategy

Importance of selling in the economy


 Selling is the transfer of goods and services from the producer to the customers
and the transfer of money from the customer to the producer, as shown in the
diagram;

 Without the process of exchange for goods and services, the economy will not
move. Thus, selling is the primary factor that moves the economy. If people will
not buy, products will not move. The business firms won’t have an income from
sales, no business tax, no government service and so on.

Reference: Entrepreneurship book

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