What are the Different types of BUSINESS ACTIVITIES ?

Scope of business activities

The scopes of businesses are very large and wide. To make it simple business activities can be classified into two:-

1.    Industry

Industry is concerned with extraction, processing/production of products.

Industry can be divided into three:-

·       Primary industry:-

n Extractive industry: - this industry is related to the extraction and production of natural resources. For example, mining, agriculture etc.

n  Genetic industry: - this industry is related to reproducing and multiplying certain species of animals and plants, then selling them. For example, cattle breading, nurseries, pisciculture etc

·       Secondary industry:-

n Manufacturing industry: - this industry is responsible for the transformation of raw material or semi finished to finished goods.

n Construction industry: - this industry is concerned with the construction of buildings, dams, roads etc.

·       Tertiary industry: - this is the industry that provides service to the other industries. For example, banking, transportation, lawyers etc.

2.    Commerce

All activities related to buying and selling of goods and services come under this industry. Commerce is the link which connects the producers with the customers.

Commerce is basically divided into two:-

a)    Trade: - trade is the buying and selling of goods. Trade is further divided into three:-

Ø Internal/domestic trade: - this is the process of buying and selling within the country. It is further divided into two:-

n Wholesale trade: - this is the process of purchasing goods in huge quantity and reselling to retailers.

n  Retail trade: - sale of goods to the ultimate consumers, by purchasing from whole sellers.

Ø External/foreign trade: - this is where there is exchange of goods or services between organisations/individuals operating in two different countries. External trade includes export trade and import trade.

n Export trade is external trade where goods are sold to foreign country.

n Import trade is external trade where goods are bought from a foreign country.

n If goods are purchased from one country and sold to another country, it’s known as Enterpot trade.

b)    Aids to trade:-These are activities which help in the purchase of goods and services.

n Transportation: - helping to carry goods from one place to another. For example: - railways, airlines, ships etc.

n Insurance: - the risk of damage of goods is covered by insurance.

n Warehousing: - goods are produced and stored. When there is demand in the market, these goods are released in to the market.

n Banking: - banks provide services like depositing and withdrawal of money and also provide finance when it is necessary for the business.

n Advertising:-it is the most important way of promoting a product.

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