Understanding the Market — Entrepreneurship STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipUnderstanding the Market4 Marks
Question
Differentiate between Industry Commerce and Trade, explaining the main characteristics of each.
✓
Answer
Industry
Industry refers to all economic activities involved in converting raw materials into finished products which are ultimately consumed by consumers, such as:
The making or manufacturing of goods, i.e., connected with conversion of resources into useful goods.
Growing, producing, processing, assembling, extracting, constructing, fabricating, breeding etc. of products.
Imparting utility to goods using mechanical appliances and technical skills.
A group of firms producing similar or related goods, e.g., textile industry, film industry etc.
Trade
Trade is referred as the nucleus of commerce around which other aids/ auxiliaries revolve. The producers cannot come into direct contact with all consumers as buyers and sellers are often situated geographically far from each other. From the producers acquiring the goods to be made available to the consumers is said to be trading.
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