The World of Business
| Module 1
DisTribuTion Distribution is the process of supplying goods, especially to retailers. It may be impossible for producers to reach the consumers directly so a number of middlemen are necessary to complete the process. Amongst others, wholesalers, retailers and brokers are all involved in the distribution process.
insurance A great deal of risk is involved in every aspect of commerce. The main risks are fire and theft. Insurance ‘covers’ these risks and compensates for possible losses or damage.
banking Banks hold money for businesses. They play a vital role in mitigating the need for funds. They offer a number of financial services such as loans and credit lines.
MarkeTing anD aDverTising
reading comprehension 3 BEC Read the text on these pages again and choose the correct option. 1 Commerce includes… A the exchange of goods and services. B the production of goods and services. C the production and exchange of goods. 2 The point of purchase is the place where a product is… A manufactured. B sold to the end customer. C warehoused. 3 The logistics department is important for… A understanding consumer demand. B the efficient internal organisation of a company. C the promotion of a company’s image.
4 The distribution process usually finishes at the… A brokers. B middlemen. C the final customer. 5 Companies take out insurance policies to cover… A damage to goods. B the sale of goods. C both A and B.
vocabulary 4 Find out what the people engaged in each branch of commerce are called. Use a dictionary to help you. 1 2 3 4
trade transport distribution insurance
trader ________________ ________________ ________________
5 6 7 8
advertising banking warehousing market research
________________ ________________ ________________ ________________
speaking 5 Prepare a short presentation of commerce (3-5 minutes). Use these questions to help you. • What is commerce?
• What are the branches of commerce?
• What role do they play in commerce?
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Activities
The sale of products and services is possible only if the consumer knows of their existence, is aware of their availability and is interested in them. Marketing involves raising consumer interest through research, promoting, selling, and distributing products or services. Advertising is used to raise consumer awareness through print, broadcast or digital media.