Class XI - Business Studies

Business, Trade and Commerce

Human activities are classified broadly into two:

1. Economic Activities

2. Non-Economic Activities

Economic Activities: All those human activities which are performed with a motive of making money are called economic activities.

Example: A Doctor working in a Hospital, A teacher teaching in the school etc.

Non-Economic Activities: All those human activities which are performed not for making money but for mental satisfaction are called non-economic activities.

Example: A teacher teaching own child, A boy playing football etc.

CLASSIFICATION OF BUSINESS ACTIVITIES

BUSINESS

Business activities are broadly classified into two:

1. Industry

2. Commerce

INDUSRTY

Industry refers to economic activities which are connected with conversion of resources into useful goods.

COMMERCE

Commerce is the sum total of all those activities which are engaged in the removal of hindrances of person, place and time in the exchange of commodities.

Classification of Industry

PRIMARY INDUSTRY

Primary industries are those industries which are connected with the extraction and production of natural resources and development of living organisms, plants etc.

SECONDARY INDUSTRY

Secondary industries are those industries which are concerned with production of goods by using the materials extracted at the primary industry.

TERTIARY INDUSTRY

Tertiary industries are those industries which are concerned with providing support services to primary and secondary industries. (as well as to trade activities)

Classification of Commerce

TRADE

Trade is a business activity concerned with sale/exchange or transfer of goods with a motive to earn profit.

The business men engaged in trading activities act as middlemen to make available the goods to customers at various places. They are called as traders.

AIDS TO TRADE (AUXILIARIES TO TRADE)

Activities which are meant for assisting the trade are known as auxiliaries to trade.

Fore More Notes on:

1. Business, Trade and Commerce , Forms of Business Organisation , and Private, Public and Global Enterprises

2. Business Services, Emerging Modes of Business, and Social Responsibilities of Business and Business Ethics

3. Formation of a Company and Sources of Business Finance

4. MSME and Business Entrepreneurship

5. Internal Trade

6. International Business etc.....Click on the below given button