What is traditionally a business enterprise that makes profit primarily…

2019

What is traditionally a business enterprise that makes profit primarily through trade, buying goods cheap and selling them at higher prices called?

Answer: B. MercantileAnswer: Mercantile Explanation: Definition: A mercantile business (merchant enterprise) is traditionally a trading business that earns profit mainly by…

  1. A.

    Capitalistic

  2. B.

    Mercantile

  3. C.

    All for Profit

  4. D.

    Commercial

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Correct answer: B

Answer: Mercantile

Explanation:

  • Definition: A mercantile business (merchant enterprise) is traditionally a trading business that earns profit mainly by purchasing goods at a lower price and reselling them at a higher price.

  • Why this fits the question: The description in the question focuses on profit through trade (buy low, sell high), which matches the classic role of a mercantile or merchant business.

  • Why the other choices are less appropriate:

    • Capitalistic refers to an economic system (capitalism), not the specific traditional name for a trading business.

    • The phrase 'All for Profit' is informal and not a standard term used to name this type of business.

    • Commercial is a broad adjective describing trade-related activity; while related, the more specific traditional noun is mercantile (merchant business).

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