Business is the buying, selling and exchange of goods and services for profit motive.
Business activities can be classified into the following two broad categories:
i. Industry: It refers to economic activities in which raw materials are processed and converted into useful products. During the process, value addition to the raw materials takes place, and the final products have a higher value compared with the raw materials. For instance, a piece of cloth has a higher value than the cotton from which it is produced. Therefore, we can say that industries produce goods that are readily consumable by the final consumers. Among the major activities that are performed by industry are production, processing and manufacturing.Industries are classified into three categories:
a. Primary Industry - it includes activity connected with the production of wealth directly from natural resources etc.
b. Secondary Industry - This industry is concerned with converting raw material into finishing product.
c. Tertiary Industry - These industries are concerned with providing those services which facilitate the flow of goods and services.
ii. Commerce: Unlike industry, commerce does not involve manufacturing or production. It basically involves trading and its related activities. Commerce includes exchange of goods and services. It primarily aims at the circulation of these goods and services so as to keep them within the reach of the final consumers. The major commercial activities are transportation, advertisement, packaging, warehousing, banking, communication, etc. Hence, it can be said that commerce bridges the gap between the producers and the consumers. Trade can be further classified into two-internal and external trade.