Classification of

Business
Activities
 Business

Industry Commerce

Primary Secondary Tertiary

Extractive Genetic

Manufacturing Construction

Analytical Synthetical Processing Assembling

 Commerce

Trade Auxiliaries to Trade

Internal External

Wholesale Retail Import Export Entrepot

Transportation Warehousing Insurance Banking & Finance Advertising

 Industry
❖ Industry refers to an activity
which converts raw material into
useful products.

❖ Industry includes activities

related to production and
processing as well as activities
related to rearing and breeding of
animals or other living species.
Types of Goods Manufactured in Industry

a) Producer's or Capital Goods

Those things which are used in
production by other industries are
called capital goods such as,
machinery, plant, equipment, etc.
b) Consumer Goods
Those things which are
directly put to use are
called consumer's goods
like bread, cloth,
medicines, etc.
c) Intermediate goods
Some industries manufacture
such goods as are processed in
some other industry to produce
some need-based goods. Such
goods are called intermediate
goods. For example, they
include plastic, rubber,
aluminium, etc.
A) Primary Industry
The primary industry includes those activities through which the
natural resources are used to provide raw material to other industries.
The primary industries are of two types:

Primary

Extractive Genetic
a) Genetic Industry
The genetic industry refers
to that industry under which
the breed of animals, plants
and vegetables are improved
and made more useful. It
includes animal husbandry,
poultry, tree planting, etc.
b) Extractive Industry
Extractive industry refers to that
industry under which something
is extracted out of the earth,
water or air.

For example, coal, iron, gas,

etc., are extracted from the
earth; stone is taken out of the
quarries, foodgrains and other
products are obtained from
agriculture.
B) Secondary Industry
The Secondary Industry makes use of products which are extracted and
produced by Primary Industry as their raw materials, and produce finished
products.
For example, mining iron ore is done in Primary Industry but steel
manufacturing is done in Secondary Industry.
Secondary Industry

Manufacturing Construction

Analytical Synthetical Processing Assembling

a) Manufacturing Industry
These industries are engaged in the process of conversion of raw
materials or semi-finished goods into finished goods. These industries
create form utility by changing the form of raw materials into finished
products.
For example, timber is converted in to furniture, sugarcane into sugar,
cotton into cloth etc.

The manufacturing Industry can further be divided into four parts

i) Analytical
ii) Synthetic
iii) Processing
iv) Assembling
i) Analytical Industry
These industries separate
different elements from the
basic material, so as to
produce various by-products
from the same element.
For example, petrol, diesel,
kerosene oil etc. all are made
from one basic material that is
crude oil.
ii) Synthetic Industry
In Synthetic Industry, two or
more materials are mixed to
manufacture some new
product.
For example, cement is
manufactured by mixing
limestone, gypsum and coal,
various chemicals are mixed
to produce soap, paints,
cosmetics etc.
iii) Processing Industry
In Processing Industry, the
raw material is processed
through various stages of
production and then
finished goods are
manufactured.
For example,Textile
Industry, Iron and Steel
Industry, Sugar Industry
etc.
iv) Assembling Industry
In this category that industry
is included wherein the parts
manufactured by different
industries are assembled to
produce new and useful
product.
For example, manufacturing
of computers, television,
watches, automobiles, cars
etc.
b) Construction Industry
These industries are concerned
with the construction of
buildings, dams, tunnels, roads
etc. These industries use the
products of manufacturing
industries. Products of this
industry cannot be transferred
or shifted to the market. They
are constructed and remain at
a fixed site only.
C) Tertiary/Service Industry
These industries provide support services to primary and secondary
industries so that they can perform their work without any hindrances.
For Example, Banking industry, Transportation industry,
Communication industry, etc.

The various types of services provide by tertiary industry are:

i) Transport
ii) Banking
iii) Insurance
iv) Warehousing
v) Advertisement
i) Transport:- It facilitates movement of goods from one place to
another.
ii) Banking:- Provides credit facility to industries and trading firms.

iii) Insurance:- Provides coverage from various types of risks.

iv) Warehousing:- Provides storage place for goods produced by

primary and secondary industry.

v) Advertising:- Provides information to consumer.