Business includes all activities concerned with the production, sale or exchange of goods and services with the objectives of earning profit. There are three components of business and these are stated below:
Trade: Trade is the final sage of business activity ans it involves sales and purchase of goods. It can be divided into two types such as-
Home Trade: When trade takes place within the national boundaries.
Foreign trade: When trade takes place across the national boundaries.
Commerce: It is the process of buying, selling and other activities which facilitate trade such as storing, packaging, transportation, insurance, banking, finance and marketing promotion. The principal function of commerce is to remove the hindrances of person, place, time, exchange and knowledge.
Industry: Industry refers to that part of business activity which is engaged in raising, producing, fabricating, extracting and conversion of goods.
No comments:
Post a Comment