By Harshvardhan, the Subject Matter Expert at Edumarz
Solution: Business Activities can be broadly classified into two main categories. They are-
- Industry– Industry is concerned with the production or processing of goods and raw materials. Business firms in the industry are called Industrial Enterprises. The industry comprises all those economic activities which are connected with the conversion of resources into useful goods. Activities involving mechanical appliances and technical skills and relating to producing or processing goods as well as the breeding and raising of animals are termed Industry. The term Industry is also used to mean groups of firms producing similar or related goods. For example- The milk processing industry includes all milk processing units in a Country or a specified area
- Commerce – Commerce includes all those economic activities which are necessary for facilitating the exchange of goods and services. Business firms in the industry are called Commercial Enterprises. Commerce provides the necessary link between producers and consumers and embraces all activities which are important for maintaining a free flow of goods and services. Commerce includes two types of activities i.e. Trade and Auxiliaries to Trade. Buying and selling of goods are termed as a trade but there are a lot of activities that are required to facilitate the purchase and sale of goods which are called Services or Auxiliaries to trade.