Question

Raju was working with Company making tires. He was possessing one truck through which he transfers their tires from one state to another state. Now he wanted to set up his business in his village Mulana of manufacturing tractors to supply them to farmers at reasonable rates. He sold his old truck to his friend at profit of Rs. 10000 and went back to his village. He shared his idea with his friends. They liked his idea and wanted to contribute in this social work. One of his friend Rahim, decided to sell him raw iron at reasonable rate. Shyam said he will deliver him engine of good capacity. Sindu said he can deliver only some of the accessories as his uncle is in whole sale business of car accessories. He has finally started the production and with the help of his friends did the assembling part successfully. He donated first tractor made by him to one of the farmer cooperative society so that they all can avail the benefit out of it. Whaich type of product he was dealing in?

Answer 1

Answer:

Industrial product.

These are products which are used as input for manufacturing other products. Unlike consumer goods, these are not for direct consumption. These are meant for business and non-personal use. Some examples of industrial products are raw materials, machines, tools etc.

Here the demand for industrial products is limited. Since they are not consumer goods the demand for them is not vast. The three broad categories of Industrial goods are as follows

• Machine and Machine Parts: These goods are used entirely in the manufacturing process. These include raw materials like cotton, lumber, petroleum etc. They also include manufactured products like glass, rubber etc.
• Capital items: These are goods/products used to manufacture finished goods. They include installations (lifts, mainframe computers etc) and equipment (hand tools, personal computers etc)
• Business Services and Supplies: These are industrial goods and services that facilitate the manufacturing process. They include services such as painters, technicians, maintenance, and repairs. And products such as lubricants, stationary etc.