Question

classification of business activities..
no spam
​

Answer 1

Answer:

business activities may be classified into two categories

• industry
• commerce

Explanation:

industry involves production of goods and services and is further classified into three categories

• primary
• secondary
• tertiary

commerce concerned with distribution of goods and services and is further classified into two categories

• trade
• auxiliaries to trade

hope it helps

mark my answer as brainliest

Answer 2

Answer:

Business activities may broadly be classified into two categories namely (A) Industry and (B) Commerce. Industry involves production of goods and services whereas commerce is concerned with the distribution of goods and services.

Classification of Business Activity

1. Industry:

Industry is concerned with the making or manufacturing of goods. It is that constituent of production which is involved in changing the form of goods at any stage from raw material to the finished product, e.g., weaving woolen yarn into cloth. Thus, industry imparts ‘form utility’ to goods.

ADVERTISEMENTS:

The goods produced may either be used by other enterprises as raw materials for further production, they are known as “producers goods”. The production of plant, machinery equipment etc. are, examples of producers’ goods. When goods are finally used by consumers they are known as consumers’ goods. The examples of such goods are cloth, bread, groceries, drugs, etc.

An enterprise may produce materials which will further be processed by yet another concern for converting them into finished goods. These goods are known as intermediate goods. The examples of this category are—plastics, rubber, aluminium, etc.

Classification of industries:

Industries may be classified as to the types of goods produced, scale of investment and type of technology employed.

I. On the basis of type of goods produced:

ADVERTISEMENTS:

The industries may be studied on the basis of the type of goods produced as follows:

(i) Primary and Genetic Industry:

Genetic industry is related to the re-producing and multiplying of certain species of animals and plants with the object of earning profits from their sale. Nurseries, cattle breeding, fish hatcheries, poultry farms are all covered under genetic industry. The plants are grown and birds and animals are reared and then sold on profit. No doubt nature, climate and environment play an important part in these industries but human skill is also important.

(ii) Extractive Industry:

The extractive industry is engaged in raising some form of wealth from the soil, climate, air, water or from beneath the surface of the earth. These industries are classified into two categories. In the first category, workers merely collect goods already existing.

Mining, fishing, and hunting is covered in this category. In the second category’, the goods are to be produced by the application of human skill, i.e., agriculture and forestry. Extractive industries supply basic raw materials that are mostly the products of the soil. Products of these industries are usually transformed into many useful products by manufacturing industries.

(iii) Construction Industry:

This industry is engaged in the cons of construction industry.