Transportation and Communication: The production of goods takes place at one place whereas these are demanded in different parts of the country. Indian firm may import some goods from America and export the same goods to Nepal. 3. (iv) Commerce is a part of economics. • Your IP: 51.136.29.54 Completing the CAPTCHA proves you are a human and gives you temporary access to the web property. It helps in exchange of information between producers, consumers and traders. This problem can be solved by storing the goods in warehouses. An overview of these activities is given below: 1. Another way to prevent getting this page in the future is to use Privacy Pass. It is of two types. Business activities can be classified in the following ways: I. 2. Business and Profession: Business is a sum total of activities pursued with a purpose to produce and accumulate wealth. Business activities may broadly be classified into two categories namely (A) Industry and (B) Commerce. Commerce: Commerce refers to all those activities which are concerned with the transfer of goods and services from the producers to the consumers. Economics is a study of human beings as consumers and producers and it has a much wider scope than commerce. How would you classify business activities? Retail Trade: It refers to buying of goods and services in relatively small quantities and selling them to the ultimate consumers. transport, bank, insurance, storage and advertising. Along with transport, communication is also an important service. The sectorwhere raw material gets converted into useful products is called industry. 2. Business activities can be broadly classified as: Industry: An industry is concerned with the production and processing of goods and raw materials. It embraces all those activities which are necessary for maintaining a free flow of goods and services. Internal trade is classified into two categories—retail trade and wholesale trade. • Primary Industry: The primary industry includes those activities through which the natural resources are used to provide raw materials to other industries. Warehousing: There is generally a time lag between the production and consumption of goods. The purpose of industry is to create form utility by converting raw materials into useful forms of finished products. Primary industries are of two types. Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. (c) Export Trade: If goods are sold to other countries it is called export trade. Banking and Finance: Business needs funds for acquiring assets, purchasing raw materials and meeting other expenses. An industry may produce consumer goods or capital goods. Insurance: It provides a cover against the loss of goods, in the process of transit, storage, theft, fire and other natural calamities. Tertiary or Service Industry: It includes those services which help business to move smoothly e.g. It is through advertising that the customers come to know about the new products and their utility. 2. Cloudflare Ray ID: 5f8a4d37fd7b1ec6 Economic activities may be classified into business, …… and employment. The business activities can be classified as: Industry: It refers to economic activities, which are connected with conversion of resources into useful goods. Business is a wider concept and includes industry too. Trade refers to buying and selling of goods and services with the objective of earning profit. (d) Entrepot Trade: Goods are imported for export to other countries e.g. An industry can … Good… 4. Primary Industry: The primary industry includes those activities through which the natural resources are used to provide raw materials to other industries. II. Performance & security by Cloudflare, Please complete the security check to access. Industry: Different types of industries are as follows: 1. Business activities can be classified in the following ways: I. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. In other words, Business – Industry + Commerce On the basis of these two categories, we may classify business firms into industrial and commercial enterprises. The common communication services are postal service, telephone, fax, internet etc. Commerce – It includes all those activities which are necessary for facilitating the exchange of goods and services. The obstacle of place is removed by the transport. Auxiliaries to Trade: All those activities which help in removing various hindrances which arise in connection with the production and distribution of goods are called auxiliaries to trade. It is classified into two categories. trade. External trade can be classified into three categories. Explain in detail about the classification of business activities into Industry and Commerce. It includes trade and auxiliary to. Industry – It is concerned with the production or processing of goods and materials. (b) Import Trade: If goods are purchased from another country, it is called import trade. Activities related to production & processing as well as activities related to rearing & reproduction of animals or other living species are all included in the industry. 1. 2. 3. Advertising: Advertising brings goods and services to the knowledge of prospective buyers. 1. Necessary funds can be obtained from a bank. Secondary Industry: Under this industry new products are manufactured by using the previously produced things e.g., producing cotton is a primary industry and manufacturing cloth out of cotton is a secondary industry. III. Primary industries are of two types. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students. Industry involves production of goods and services whereas commerce is concerned with the distribution of goods and services. Name the two broad categories of business activities.

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