In how many types economic activities beings are classified ? explain by giving exampel
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Economic activities are related to production, distribution, exchange and consumption of goods and services.
The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer.
"Human activities which are performed in exchange for money or money's worth are called economic activities."
In other words, economic activities are those efforts which are undertaken by man to earn Income, Money, Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means.
E.g. A worker works in a factory and gets wages.
Types / Classification of Economic Activities
1. Profession
Profession is an occupation carried on by professional people like Doctors, Lawyers, Engineers, etc. They provide specialised services in return for fees. To become a professional, a man requires specialized knowledge and professional qualification. For e.g. Doctor needs specialised knowledge in medicine, a lawyer needs a degree in law, etc.
Features of a Profession:
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(i) A person entering a particular profession should have specialized knowledge and training prescribed for entering that profession. One must have a professional degree such as C.A., LL.B., and M.B.B.S. etc. for entering a particular profession.
(ii) The membership of a particular professional body is compulsory before entering that profession. A Chartered Accountant must be a member of the Institute of Chartered Accountants of India and this is necessary for other professions also.
(iii) Every professional body has a code of conduct which every member must follow. It contains norms of behaviour for members.
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(iv) Professionals charge fees from clients for providing their services.
(v) A professional cannot advertise himself if it is banned by the professional body.
Some important professional bodies working in India are as follows:
(a) Medical Council of India: For medical profession.
(b) Bar Council of India: For practising lawyers or for legal profession.
(c) Institute of Chartered Accountants of India: For accounting profession.
(d) Institute of Company Secretaries: For Company Secretary ship
(e) Institute of Cost and Works Accountants of India: For Cost accountants
2. Employment
Employment is a type of occupation under which one person provides his services, physical or mental to someone else in return for which he gets salary or wage. The person who employs is called employer and the person who is employed is called employee or worker.
Features of Employment:
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(i) An employment commences when a person joins some organisation for providing personal services.
(ii) There is a relationship of employer and employee. A person taking up a job is an employee and the person who provides the service is called an employer.
(iii) The employer assigns duties to the employee.
(iv) An employee is not required to make capital investment.
(v) The employees get salaries/wages for rendering their services to the organisation.
(vi) The employee will have to follow service rules and regulations prescribed by the employer.
(vii) There are no standard qualifications for getting employment. The qualifications are linked to the requirements of particular jobs.
3. Business
Business is an economic activity concerned with production and distribution of goods and services with the aim to earn profit. It includes all those activities which are directly or indirectly concerned with production, purchase and sale of goods and services. So the production, marketing, advertising, warehousing, insurance, banking, etc. are all business activities.
Examples of Business Activities:
Some examples of business activities are given as follows:
(i) Industrial Activities:
(a) Purchase of raw materials
(b) Procuring of other industrial inputs
(c) Activities relating to production of goods and services
(d) Assembling of products.
(ii) Trade Activities:
(a) Wholesalers purchasing goods from producers
(b) Wholesalers supplying goods to retailers
(c) Retailers selling goods to consumers
(d) Producers selling goods to middlemen or directly to consumers.
(iii) Aids to Trade:
(a) Transport carrying goods to various traders and consumers
(b) Banks extending financial help to industry and trade
(c) Warehouses providing storing facilities
(d) Insurance coverage for various risks
(e) Providing business information to concerned persons
(f) Agencies advertising products.
The primary aim of the economic activity is the production of goods and services with a view to make them available to consumer.
"Human activities which are performed in exchange for money or money's worth are called economic activities."
In other words, economic activities are those efforts which are undertaken by man to earn Income, Money, Wealth for his life and to secure maximum satisfaction of wants with limited and scarce means.
E.g. A worker works in a factory and gets wages.
Types / Classification of Economic Activities
1. Profession
Profession is an occupation carried on by professional people like Doctors, Lawyers, Engineers, etc. They provide specialised services in return for fees. To become a professional, a man requires specialized knowledge and professional qualification. For e.g. Doctor needs specialised knowledge in medicine, a lawyer needs a degree in law, etc.
Features of a Profession:
ADVERTISEMENTS:
(i) A person entering a particular profession should have specialized knowledge and training prescribed for entering that profession. One must have a professional degree such as C.A., LL.B., and M.B.B.S. etc. for entering a particular profession.
(ii) The membership of a particular professional body is compulsory before entering that profession. A Chartered Accountant must be a member of the Institute of Chartered Accountants of India and this is necessary for other professions also.
(iii) Every professional body has a code of conduct which every member must follow. It contains norms of behaviour for members.
ADVERTISEMENTS:
(iv) Professionals charge fees from clients for providing their services.
(v) A professional cannot advertise himself if it is banned by the professional body.
Some important professional bodies working in India are as follows:
(a) Medical Council of India: For medical profession.
(b) Bar Council of India: For practising lawyers or for legal profession.
(c) Institute of Chartered Accountants of India: For accounting profession.
(d) Institute of Company Secretaries: For Company Secretary ship
(e) Institute of Cost and Works Accountants of India: For Cost accountants
2. Employment
Employment is a type of occupation under which one person provides his services, physical or mental to someone else in return for which he gets salary or wage. The person who employs is called employer and the person who is employed is called employee or worker.
Features of Employment:
ADVERTISEMENTS:
(i) An employment commences when a person joins some organisation for providing personal services.
(ii) There is a relationship of employer and employee. A person taking up a job is an employee and the person who provides the service is called an employer.
(iii) The employer assigns duties to the employee.
(iv) An employee is not required to make capital investment.
(v) The employees get salaries/wages for rendering their services to the organisation.
(vi) The employee will have to follow service rules and regulations prescribed by the employer.
(vii) There are no standard qualifications for getting employment. The qualifications are linked to the requirements of particular jobs.
3. Business
Business is an economic activity concerned with production and distribution of goods and services with the aim to earn profit. It includes all those activities which are directly or indirectly concerned with production, purchase and sale of goods and services. So the production, marketing, advertising, warehousing, insurance, banking, etc. are all business activities.
Examples of Business Activities:
Some examples of business activities are given as follows:
(i) Industrial Activities:
(a) Purchase of raw materials
(b) Procuring of other industrial inputs
(c) Activities relating to production of goods and services
(d) Assembling of products.
(ii) Trade Activities:
(a) Wholesalers purchasing goods from producers
(b) Wholesalers supplying goods to retailers
(c) Retailers selling goods to consumers
(d) Producers selling goods to middlemen or directly to consumers.
(iii) Aids to Trade:
(a) Transport carrying goods to various traders and consumers
(b) Banks extending financial help to industry and trade
(c) Warehouses providing storing facilities
(d) Insurance coverage for various risks
(e) Providing business information to concerned persons
(f) Agencies advertising products.
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