Purpose of business activities:

 Combining and organizing resources to produce goods and services.

 To satisfy the needs and wants of consumers.
 To motivate the consumer and increase the market share.
The ultimate purpose of almost every business activity is to earn profits.

How businesses earn profits:

Profit is achieved when revenues from selling goods and services exceeds the cost of
their production.
Revenues: are earned by a business when it sells goods and services to customers.

Costs: are incurred by a business because it is necessary to buy or hire the resources

it needs in order to produce goods and services.

Exception: Some business organizations do not aim to make a profit Like NGO’s,
universities, hospitals, national charities and foundations.
E g Bill and Melinda Gates Foundation, The Wellcome Trust, United Nations
Foundation, CRY (Child Rights and You), Helpage India
Objectives: To provide public services free of charges like free health care, free
education, bus travel etc.

Classification of businesses:
Industry:

It is group of enterprises or organizations that are engaged in doing primary activities

like production of goods and services like Telecom industry, agriculture industry,

education industry, etc.

Primary sector:
 In Primary sector of economy, activities are undertaken by directly using natu-
ral resources. Agriculture, Mining, Fishing, Forestry, Dairy etc. are some ex-
amples of this sector.
 It is called so because it forms the base for all other products. Since most of the
natural products we get are from agriculture, dairy, forestry, fishing, it is also
called Agriculture and allied sector.
 People engaged in primary activities are called red-collar workers.
 Contribution of primary sector to GDP is 20.3%

Secondary sector:
 It includes the industries where finished products are made from natural mate-
rials produced in the primary sector. Industrial production, cotton fabric, sugar
cane production etc. activities come under this sector.
 People engaged in secondary activities are called blue collar workers
Eight core industries of India: Coal, Crude Oil, Natural Gas, Refinery
Products, Fertilizers, Steel, Cement and Electricity.
 Contribution of primary sector to GDP is 25.9%

Tertiary Sector/Service Sector

 This sector’s activities help in the development of the primary and secondary
sectors. By itself, economic activities in tertiary sector do not produce a goods
but they are an aid or a support for the production.
  Examples: Goods transported by trucks or trains, banking, insurance, finance
etc.
 This sector jobs are called white collar jobs.
 Contribution of primary sector to GDP is 53%
Total GDP of India in 2023 is $3.75 trillion.
Total GDP of India in 2023 is $3.47 trillion.
India is 4th and UK is 5Th largest economies of the world.

Quaternary Activities
The quaternary sector is the intellectual aspect of the economy. It is the process
which enables entrepreneurs to innovate and improve the quality of services of-
fered in the economy. Also known knowledge sector.

Quinary sector
 The quinary sector is the part of the economy where the top-level decisions are
made.
 Services that focus on the creation, re-arrangement and interpretation of new and
existing ideas.
Profession under this category often referred as 'gold collar' professions.

Commerce:

Commerce is the exchange or distribution of goods or services among two or more

parties. It is the subset of business that focuses on the sale and purchase of finished or

unfinished products.

 IReC 2022 confers Assiduus Global Inc. with prestigious E-commerce

 accelerator of the year award 2022.

 Kemi Bednoch is the secretary of Business and Trade ministry of UK.