BUSINESS, TRADE AND COMERCE
1) Introduction: The term business is derived from the term
‘busy’, business means being busy. However, in a specific
sense, business refers to an occupation in which, people
regularly engaged in activities related to purchase,
production and sales of goods and services. With a view to
earn profits. The activity may consist may consist of
production or purchase of goods for sale or exchange of
goods or supply of services to satisfy the need of other
people.
2) Human activities: In every society people undertake
various activities maybe broadly classified into two groups-
• Economic activities
• Non-economic activities
Activities done to earn livelihood are economic activities.
Non-economic activities are those which are performed out
of love, sympathy, sentiments etc. EX- a worker working in a
factory, a doctor operating in his clinic and a teacher teaching
in a school are doing so to earn their livelihood and are
therefore engaged in an economic activity.
,Economic activities maybe further divided into three
categories:
• Business
• Profession
• Employment
A. Business-It is an economic activity involving the
production and sales of goods and services undertaken
with a motive of earning profit by satisfying human
needs in society.
B. Profession- A profession is an occupation where
individuals with specialized knowledge and qualification
, provide services in the relevant field to the masses to
earn a living. Each profession is distinct from the other.
C. Employment-People are hired to work regularly by
organizations and salaries or wages are paid to
employees in exchange for the work on service provided
to a company during their tenor in the company.
Non-economic activity: On the other hand, a housewife
cooking food for her family or a boy helping an old man
to cross the road are performing non-economic activity
since they are doing so out of love or sympathy.
3) Characteristics of business:
• Economic activities- Business is considered to be an
economic activity because it is undertaken with the
objective of earning money or livelihood and not
because of love, affection, sympathy or any other
sentimental reason.
• Production or procurement of goods and services-
Before goods are offered to people for consumption,
these must be either produced or procured by the
business enterprises. Thus, every business enterprise
either manufacturers the goods or it acquires them
from producers, to be further sold to consumers.
Goods may consist of consumable items of daily use
such as- sugar, notebooks etc. Services may include
transportation, banking, electricity etc.
• Sales or exchange of goods and services- Directly or
indirectly, business involves transfer or exchange of
goods and services for value. If goods are produced
1) Introduction: The term business is derived from the term
‘busy’, business means being busy. However, in a specific
sense, business refers to an occupation in which, people
regularly engaged in activities related to purchase,
production and sales of goods and services. With a view to
earn profits. The activity may consist may consist of
production or purchase of goods for sale or exchange of
goods or supply of services to satisfy the need of other
people.
2) Human activities: In every society people undertake
various activities maybe broadly classified into two groups-
• Economic activities
• Non-economic activities
Activities done to earn livelihood are economic activities.
Non-economic activities are those which are performed out
of love, sympathy, sentiments etc. EX- a worker working in a
factory, a doctor operating in his clinic and a teacher teaching
in a school are doing so to earn their livelihood and are
therefore engaged in an economic activity.
,Economic activities maybe further divided into three
categories:
• Business
• Profession
• Employment
A. Business-It is an economic activity involving the
production and sales of goods and services undertaken
with a motive of earning profit by satisfying human
needs in society.
B. Profession- A profession is an occupation where
individuals with specialized knowledge and qualification
, provide services in the relevant field to the masses to
earn a living. Each profession is distinct from the other.
C. Employment-People are hired to work regularly by
organizations and salaries or wages are paid to
employees in exchange for the work on service provided
to a company during their tenor in the company.
Non-economic activity: On the other hand, a housewife
cooking food for her family or a boy helping an old man
to cross the road are performing non-economic activity
since they are doing so out of love or sympathy.
3) Characteristics of business:
• Economic activities- Business is considered to be an
economic activity because it is undertaken with the
objective of earning money or livelihood and not
because of love, affection, sympathy or any other
sentimental reason.
• Production or procurement of goods and services-
Before goods are offered to people for consumption,
these must be either produced or procured by the
business enterprises. Thus, every business enterprise
either manufacturers the goods or it acquires them
from producers, to be further sold to consumers.
Goods may consist of consumable items of daily use
such as- sugar, notebooks etc. Services may include
transportation, banking, electricity etc.
• Sales or exchange of goods and services- Directly or
indirectly, business involves transfer or exchange of
goods and services for value. If goods are produced
