Copy - BUSINESS STUDIES PRESENTATION

Business Studies

Table of contents:

1. Economic and non-economic activities
2. Scope of business
3. Interrelationship between trade,industry and commerce

Prepared by: Harshit Kalra Nitin Dahiya Chirag Gulia

Economic and Non- Economic Activities

An economic activity is an activity of providing, making, buying, or selling of commodities or services by people to satisfy their day-to-day needs of life. Economic activities include any activity that deals with the manufacturing, distributing, or utilising of products or services. Activities that involve money, or the exchange of products or services, are economic activities. The three types of economic activities are as follows: 1. Business 2. Profession 3. Employment

A non-economic activity is an activity performed with the purpose of rendering services to others without any considerations of financial gains. Activities that are initiated for personal content or for meeting human sentiments are non-economic activities.

Scope of Business

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.

PRIMARY INDUSTRY:This sector of a nation’s economy includes agriculture, forestry, fishing, mining, quarrying, and the extraction of minerals. SECONDARY INDUSTRY: This sector, also called manufacturing industry, (1) takes the raw materials supplied by primary industries and processes them into consumer goods, or (2) further processes goods that other secondary industries have transformed into products, or (3) builds capital goods used to manufacture consumer and nonconsumer goods. TERTIARY INDUSTRY: This broad sector, also called the service industry, includes industries that, while producing no tangible goods, provide services or intangible gains or generate wealth.

Commerce

All those activities which are connected with taking goods and services from producers to users come under the purview of commerce. The goal of commerce is to ensure a proper flow of goods and services for the benefit of both producers and consumers. People are able to buy goods produced anywhere in the world with the help of commerce.

Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties. Trade can take place within an economy between producers and consumers.

Auxiliaries to trade are those activities which facilities business. Transport, banking, insurance, warehousing, and advertising is regarded as auxiliaries to trade.

Interrelationship between industry, commerce and trade

Industry, commerce and trade are closely related to each other. For example, industry provides goods and services which are distributed through commerce. No commercial activity is possible in the absence of industry and production. At the same time industry and production cannot survive unless the goods and services are distributed among consumer through commerce. Therefore, industry and commerce are interdependent. Industry provides the base for commerce and commerce serves s the backbone of industry. Trade involves buying and selling of goods. It is the nucleus of commerce because all business activities revolve around or exchange. Trade provides the solid foundation upon which the superstructure of commerce has been raised. It provides necessary support to industry and maintains a smooth flow of commerce.

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