Accounting Terms 1. Define Business. Any legal Activity which is done to earn profit is called Business. 2. Name the types of Business. Following are the three main types of business: Trading business Manufacturing business Service business 3. Define the Trading business. A business in which a trader purchases goods and sells them in the same position is called a trading business. 4. Define manufacturing Business. A manufacturing business produces finished goods from raw materials. 5. Define service business. The business that provides services is called a service business. 6. Who is a Proprietor? The owner of the business is called the proprietor. He invests capital to earn profit. If there is any loss he is responsible for it. 7. Define Capital/ Owner's equity. (same for small businesses) The assets with which an owner starts or expands his business. 8. Define Goods. The things purchased for resale in business are called goods. 9. Define drawings. The cash or...