Question 9

How would you classify business activities?


Business activities are classified into two categories:

  1. Industry: Industry refers to economic activities, which are connected with conversion of resources into useful goods. The term industry is used for activities in which mechanical appliances and technical skills are involved. This includes activities relating to producing or processing of goods as well as breeding and raising animals.

  2. Commerce: Commerce includes two types of activities that are: (i) trade and, (ii) auxiliaries to trade. Buying and selling of goods is termed as trade. But there are lots of activities that are required to facilitate the purchase and sale of goods. These are called services or auxiliaries to trade and include transport, banking insurance, communication, advertisement, packaging and warehousing.

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