Human Activities

Economic Business

Non Economic

Features

Activities

Commerce Industry Business Risk

Difference Between Business,

Profession and Employment

Basic factors while

starting a business

Causes

Characteristics

Tertiary Secondary

Primary Aids to trade

Trade

Objectives

Activities undertaken by humans to satisfy their needs are called human activities.

They are those activities by which we can earn our livelihood.

They are performed out of love, sympathy, sentiments, patriotism, etc.

Business refers to an occupation in which people regularly engage in activities related to purchase, and/or sale of goods and services with a view to earning profits .

• An economic activity.• Production or procurement of goods

and services.• Sale or exchange of goods and

services.• Dealings in goods and services on a

regular basis.• Profit earning.• Element of risk.

Industry • Includes conversion of

resources into useful goods.

• Eg. Cotton textile industry

Commerce • Includes buying and

selling of goods.• Provides necessary

link between producers and consumers.

All business activities which are concerned with the extraction of natural resources and reproduction of

plants and animals are known as primary industries.

Genetic Industries

Extractive Industries

Economic Objectives Social Objectives Earning profits Right quality at right

prices Creating customers Avoidance of anti-social

and unfair trade practices

Innovations Employment generationBest use of scarce

resources Employee welfare

These industries process materials which have already been obtained at the primary stage.

Manufacturing Industries

Construction Industries

The activities which provide services to primary and secondary industries as well as to trade are known as

tertiary industries.

Banking

Advertising

Transportation

Trade means buying and selling of goods.

Home trade

Foreign Trade

Wholesale Trade

Retail Trade

Entrepot Export Import

Activities which assist or support trade are known as aids to trade.

Transportation Warehousing

Insurance Banking

Advertising

Business risk is the danger of loss due to some unforeseeable, unpredictable and unpredictable

event in future.

Natural Flood, earthquake, famine Human Theft, accident, bad debt

Economic Change in fashion, fall in Price

Physical Gas leakage, bursting of boiler

Political Higher taxes, civil war

Difficult to measure

Variability

Profit is the reward for bearing risk

Essential element of business

Uncertainty

Basis Business Profession Employment

Mode of establishme

nt

Entrepreneur's decision with

legal formalities

Membership of professional

body and certificate of

practice

Service contract and

letter of appointment

Nature of work

Supply of goods and services

Personal service of

expert nature

Work assigned by the

employer Qualification No minimum

qualification Minimum

education and training

Depends on type of job

Basic motive Profit making Service Wage/ Salary

Reward Profits Fee Wage or salary

Factor Influenced by

Selection of line of business

Customer requirements, the kind of technical knowledge and interest of the entrepreneur.

Size of the firm Demand for the proposed product, availability of funds

Choice of form of ownership

line of business, capital requirements, liability of owners,division of profit, legal formalities

Location of business enterprise

Availability of raw materials and labour; power supply and services like banking, transportation, communication, warehousing

Physical facilities Nature and size of business, availability of funds and the process of production.