NAMA : NI LUH EKA WIDIANTARI

STAMBUK : C20120144

KELAS : MANAJEMEN 4 ( D )

MATA KULIAH : BAHASA INGGRIS

WHAT IS BUSINESS?

The word ‘Business’ is very common in our daily lives. But what does it mean exactly?
Traditionally, it simply means exchange or trade for things. This happened thousands of years ago
when people always felt the need to trade what they had in excess of something they did not have.
They did barter trade to satisfy their need. As trading developed, precious metals such as gold and
silver became a medium of exchange to facilitate trading. Archeological excavation and cave
drawings showed that in the ancient cities of Carthage, Babylon, Egypt, and China, traders sold
wool, spices, hides, grains, and primitive products.

In modern time, the concept and the activities of business change, the scope is wider. It
comprises production, distribution, and sale of goods and services for a profit. Production is the
creation of service or the process of making something more valuable. It also means bringing
together materials, machinery and workers to make goods. Production changes the value of
materials by changing their form. The example of goods production is the conversion of iron ore
into metal car parts, while shipping, air freighting, postal, telecommunication, utilities, real estate,
banking, finance, insurance, hotel, and restaurant are all the examples of service production.

Distribution refers to the movement of goods and services from the producer to the
consumer. It includes the movement of materials from the suppliers to the beginning of the
production line. It involves the storage and handling of these materials and the finished goods,
packaging, inventory control and transportation to the end users. An efficient distribution system
will minimize the capital tied up in raw materials or unsold finished goods.

When the producer—finishes the two activities of business production and distribution—
the ultimate test of his success is the volume of sale of product or service. This sale means the
exchange of the product or service for money. If the sale is weak, the producer is unable to make
profit and his business will not survive long. Consequently, his business activity does not
contribute to the nation’s economic growth.

Task 2

Answer the following questions based on the text above:

1. What is the traditional meaning of business?

2. How did people do business thousands of years ago?
3. What was the function of gold or silver thousands of years ago?
4. What is the modern meaning of business?
5. If someone does a business in banking, what does he produce?
6. What will happen if a producer can sell his service or goods well?
7. What is the standard of a businessman’s success?

ANSWER

1. Traditionally business, it simply means exchange or trade for things

2. They did barter trade to satisfy their need
3. Its function is became a medium of exchange to facilitate trading
4. Modern business, the concept and the activities of business change, the scope is wider. It
comprises production, distribution and services for a profit .
5. Can produce : service production and could generate more profit
6. Will be able to obtain profits and the business will last long time and develop rapidly and
be able to encourage efficiency in production.
7. The success standars of an entrepreneur, that is :
o Understand dreams and increase motivation
o Make careful planning