Business, Trade and

Commerce

By Richa Gaur 1
Topics to covered
 Business and its concept.
 Comparison of Business, Profession &
Employment.
 Classification of Business Activities.
 Industry and its types
 Commerce
 Trade & Auxiliaries to Trade
 Objectives of Business
 Business Risk & its Causes
 Factors to start a Business
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 Business
It is an economic activity involving the production
and/or sale of goods and/ or services undertaken
with a motive of earning profit by satisfying human
needs in society.

Being busy with economic activities and earning

money

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 Characteristics Of Business Activities

An economic activity

Production or procurement of goods and services
Sale or exchange of goods and services for the
satisfaction of human needs
Dealings in goods and services on a regular basis
Profit earning
Uncertainty of return
Element of risk

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 Business Functions at Enterprise Level

Business includes a wide variety of functions

performed by many different kinds of
organizations called business enterprises or
firms.
4 major functions that are required to carry a
business in the firm:
Financing
Production
Marketing
Human Resource Management
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By Richa Gaur 6
Classification Of Business Activities

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Industry

1) Primary industries
a) Extractive industries
b) Genetic industries

2) Secondary industries
a) Manufacturing industries
b ) Construction industries

3) Tertiary industries

By Richa Gaur 8
 Commerce
1.Trade- Buying and selling of goods.
• Internal trade
• External trade

2. Auxiliaries to Trade- Activities that are

required to facilitate the purchase and
sale of goods
• Transport and Communication
• Banking and Finance
• Insurance
• Warehousing
• Advertising
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 Objectives Of Business
The objective of business means the purpose for
which a business is established and carried on.
Proper selection of objectives is essential for
the success of a business

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 Multiple Objectives of Business
1) Market standing
2) Innovation
2) Productivity
4) Physical and financial resources
5) Earning profits
6) Manager performance and development
7) Worker performance and attitude
8) Social responsibility

By Richa Gaur 11
 Business Risks
The term ‘business risks’ refers to the possibility of inadequate
profits or even losses due to uncertainties or unexpected
events

Nature Of Business Risks

• Business risks arise due to uncertainties
• Risk is an essential part of every business
• Degree of risk depends mainly upon the nature and size of
business
• Profit is the reward for risk taking

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 Causes of Business Risks
1) Natural causes
2) Human causes
3) Economic causes
4) Other causes

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 Starting a Business— Basic Factors
1) Selection of line of business
2) Size of the firm
3) Choice of form of ownership
4) Location of business enterprise
5) Financing the proposition
6) Physical facilities
7) Plant layout
8) Competent and committed worked force
9) Tax planning
10) Launching the enterprise

By Richa Gaur 14
Thank You

Queries & Doubts

By Richa Gaur 15