• BUSINESS:

AN INTRODUCTION
CLASSIFICATION OF BUSINESS
ACTIVITIES
Business Activities classified into two
categories:
1.Economic Activity
2.Non-Economic Activity

1.Economic Activity- Those Activities whose main

objective is to earn money.
2.NON-Economic Activity- Those Activities whose main
objective is not to earn money.
 Economic Activities are three types:
 A. Business
 B. Profession
 C. Employment
Business
Meaning
Business is a economic activity which is done on regular basis is to earn profit through buying
and selling of goods and services is called business.
Features of Business
1.Business is a economic activity.
2.It is done on the regular based.
3.For business exchange of goods and services is essential.
4. Main objective of business is to earn profit
5.It create the utilities i.e place,form and Time.
6.Consumer satisfaction is very important for the business because If consumer will not
satisfied with product, business cannot earn profit.
Profession

Meaning
It refers to that economic activity in which a person having
Some special knowledge and skills which is used to serve
Different section of the society.

Features of Profession

1. Body of specialised knowledge and technique.

2. Formalised methods of Acquiring Training and experience.
3. code of conduct.
4. Priority of service over economic consideration.
EMPLOYMENT

Meaning
It refers to that economic activity Under which people work for
others and receive remuneration
Like salary, wages,etc.
Features of employment
1. Service to others.
2. Servant.
3. No risk.
4. No need of capital.
5. Agreement.
Basis of Business Profession Employment
difference
1. Government Start after completing Starts after getting Starts after getting
some legal formalities certified from the appointment letter.
if needed. institution.
2. Nature of Production of things Personal services as a Work allotted by the
and buying and selling specialist. employer according to
Work the contract.
3. Investment Capital is needed A little capital is There is no need of
according to its size. required. capital.
4. Risk There is high risk. There is no risk. There is no risk.

5. Qualifications No qualifications. Formal qualification is No qualifications.

necessary.
6. Objective To earn profit. To earn profit throught To earn income
service. through salary &
wages.