Q.4:- How would you classify business activities?
The business activities can be classified as:
Industry: It refers to economic activities, which are connected with conversion of resources into useful goods. These include activities relating to producing or processing of goods as well as breeding and raising of animals.Among the major activities that are performed by an industry are production, processing and manufacturing. Industries are classified into the three categories as primary, secondary and tertiary.
Commerce: It does not involve manufacturing or production. It basically involves trading and its related activities. It includes both, buying and selling of goods as well as auxiliaries such as
transport, banking, etc. It provides the necessary link between producers and consumers. It includes all those activities, which are necessary for maintaining a free flow of goods and services.