Name the two broad categories of business activities.a)Trade and commerceb)trade and industryc)industry and commerced)none of theseCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Business activities may broadly be classified into two categories: (1) Industry, and (2) Commerce. Industry involves the production of goods and materials, while Commerce is concerned with the distribution of goods and services.

Answer

Here industry is involve the production of goods and service and commerce is concerned distributionn of goods and services.

Answer

It's Anwar is,-c

Answer

A

Answer

C

Answer

Two Broad Categories of Business Activities:

Business activities can be broadly categorized into two main categories: industry and commerce. Let's understand each category in detail:

1. Industry:
Industry refers to the production of goods or the provision of services using machinery, labor, and raw materials. It involves the creation, extraction, or manufacturing of products. Industries can be further classified into three types:

- Primary Industry: This type of industry involves the extraction and utilization of natural resources. Examples include agriculture, mining, fishing, forestry, and oil and gas extraction. Primary industries are the foundation of all other industries since they provide raw materials for manufacturing and production.

- Secondary Industry: Secondary industries are involved in the transformation of raw materials into finished goods. They are responsible for processing, manufacturing, and assembling products. Examples include manufacturing, construction, and utilities. Secondary industries add value to the raw materials obtained from primary industries.

- Tertiary Industry: Also known as the service industry, tertiary industries provide intangible services to individuals and businesses. They do not produce physical goods but offer services such as transportation, healthcare, banking, tourism, entertainment, and retail. Tertiary industries play a significant role in the economy by facilitating the exchange of goods and services.

2. Commerce:
Commerce refers to the exchange or trade of goods and services between individuals, businesses, or countries. It involves activities related to buying, selling, and distribution. Commerce can be further divided into two types:

- Trade: Trade involves the buying and selling of goods and services. It can occur within a country (domestic trade) or between different countries (international trade). Trade can be further classified into wholesale trade (bulk purchase and sale of goods) and retail trade (selling goods directly to consumers).

- Auxiliaries to Trade: Auxiliaries to trade are activities that support and facilitate trade. These activities include transportation, warehousing, insurance, banking, advertising, packaging, and communication. Auxiliaries to trade ensure the smooth flow of goods and services between buyers and sellers.

Conclusion:
In summary, industry involves the production of goods or the provision of services, while commerce focuses on the exchange and trade of these goods and services. Both industry and commerce are essential components of the business world and contribute to economic growth and development.

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