Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 3 Classification of Business Activities Notes
→ Industry refers to economic activities, which are connected with conversion of resources into
useful goods.
→ The term industry is also used to mean group of firms producing similar or related goods.
→ Industries may be classified into two broad categories: (a) On the Basis of Activities and (b) On the basis of size.
→ Primary industry is concerned with production of goods with the help of nature.
→ Genetic industries remain engaged in breeding plants and animals for their use in further reproduction.
→ Manufacturing Industries are engaged in producing goods through processing of raw materials and thus creating form utilities.
→ Analytical Industry analyses and separates different elements from the same materials, as in the case of oil refinery.
→ Synthetic Industry combines various ingredients into a new product, as in the case of cement.
→ Processing Industry involves successive stages for manufacturing finished products, as in the
case of sugar and paper.
→ Assembling Industry assembles different component parts to make a new product, as in the case of television, car, computer, etc.
→ Commerce refers to all those activities which are necessary for bringing goods from the place of production to the place of their consumption.
→ The term ‘trade’ is used to denote buying and selling.
→ A trader is a middleman between the producer and the consumer.
→ Trade may be classified into internal trade or external trade, wholesale trade or retail trade.
→ The medium which moves men and materials from one place to another is called transport.
→ Business activities cannot be undertaken unless funds are available for acquiring assets, purchasing raw materials and meeting other expenses.
→ Business involves various types of risks. Factory building, machinery, furniture, etc., must be protected against fire, theft and other risks.