Home work ISLAMIC BANKING & FINANCE TRAINING CLASS

Human activities: All human activities that are done from their thought and intellect are called human
activities.

Human
activites

Economic Non Economic

activity activities

Economic
activity

Non-business activity Business activity

{not for profit} {are done to gain profit}

Classification of Business:

1) Industries: All activities belongs to production of goods and services.

i. Primary or extractive industries: the activities related with raw material; Agriculture , fishing ,
Forestry
ii. Secondary industries : A process that converts raw material into advanced form like:Flour to Bread
i. Constructive IND: tending to buildup
ii. Manufacturing IND : Production on a large scale, using machinery and
invent.
iii. Service IND: supplying public need such as transport, communication,
Electricity

2) Commerce: All economic activities that carry produced products from the place of production to
the final consumer.

Trade: it is the exchange of goods.

1) Home trade : any exchange by people inside the country.
i. Whole sailing
ii. Retailing
2) International trade : any exchange outside the country by people.
i. Export trade
ii. Import trade

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Home work ISLAMIC BANKING & FINANCE TRAINING CLASS

Activities Auxiliary to Trade

A. Banking
B. Means of transportation
C. Means of communication
D. Insurance
E. Ware housing
F. Middle-Men
G. Finance
H. Marketing

Organizations
 Non profitable Organization: Established for the purpose to improve the situation of
society. Political orgs, Religion orgs
 Profitable Organizations: created to increase the benefits. like; Producing , servicing
A. Sole Proprietorship: Is the type of business in which the owner
and responsible is one person.
B. Partnership: different people with different capital are come
together ready to divide the benefits of business and its
responsibility.

Specification of Sole proprietorship

 Easy formation
 Personal capital
 All the decisions are for business owner
 No division of the profits
 Unfettered responsibility
 Small one
Specification of partnership

 Contract
 The number of partners
 Profit and loss
 Responsibility
 Shares sale rights
 Tax
 No legal control
 Under age partners
Kinds of Partnership

 Partnership of Fixed period

 Partnership AT_Will
 Limited Partnership
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Home work ISLAMIC BANKING & FINANCE TRAINING CLASS

Joint stock Company

It is the community of those people that share their capital and money for joint profits. And
divide the Return between themselves .

Kind of joint stock companies

1) Chartered Company
2) Statutory Company
3) Registered Corporation
i. Unlimited Company
ii. Limited Company
a. Private Limited company
b. Public Limited company

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