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?
- A.
Capitalistic
- B.
Mercantile
- C.
All for Profit
- 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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