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Difference between revisions of "Business Activity"

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Business Acitivity is any action undertaken by individuals or companies, such as buying, selling, marketing, or investing, for the purpose of generating profits or developing economic opportunities.<ref> Definition - What does Business Activity Mean? [http://www.investorwords.com/16222/business_activity.html#ixzz5nGCaCzQ4 Investorwords]</ref>
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'''Classification of Business Activities'''<ref>Classification of Business Activities [http://www.yourarticlelibrary.com/business/classification-of-business-activities-industry-and-commerce/42018 Your Article Library]</ref><br />
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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.
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[[File:Business_Activity.jpg|400px|Business Activity Classification]]
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*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. 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.

Revision as of 17:29, 7 May 2019

Business Acitivity is any action undertaken by individuals or companies, such as buying, selling, marketing, or investing, for the purpose of generating profits or developing economic opportunities.[1]

Classification of Business Activities[2]
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.

Business Activity Classification

  • 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. 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.
  1. Definition - What does Business Activity Mean? Investorwords
  2. Classification of Business Activities Your Article Library