Draw the classification of business activities on a chart sheet.
Answers
Answer:
Explanation:
The sector where raw material gets converted into useful products is called industry. 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. The purpose of industry is to create form utility by converting raw materials into useful forms of finished products.
An industry may produce consumer goods or capital goods. Goods such as bread, butter, cloth, radio, etc. are consumer goods. These goods are directly used by the consumer. Goods such as machinery, cement etc. are called capital goods as these are used further in the production process to make useful products.
Industry can be classified into three broad categories.
Primary industry
Secondary industry
Tertiary industry
Primary Industry
This is also known as extractive industries. It includes activity connected with the production of wealth directly from natural resources such as water, air, & land etc. Primary industry includes activities like extraction & processing of natural resources etc. These industries are further subdivided as follows:
Extractive industry: These industries extract or draw out products from natural sources. Raw materials that are mostly products of the soil are some basic supply of extractive industries. Manufacturing industries transform these products into many other useful goods. Some of the examples of extractive industries include farming, mining, lumbering, hunting & fishing operation.
Genetic industry: The industries involved in the activities of rearing & breeding of living organism i.e. birds, plants, animals etc. are known as a genetic industry. For example, rearing of cattle for milk, dairy farms, poultry farms, rearing of plants in the nursery, growing fish in ponds etc. are included in the genetic industry.