Q.How would you classify business activities?

Business activities can be grouped by whether they involve making goods or moving and exchanging them, giving two broad categories. …

Business activities fall into two broad categories — industry and commerce.

• Industry is concerned with the production or processing of goods and materials — converting resources into useful goods. It is divided into primary, secondary and tertiary industries. On this basis firms can be classified as industrial enterprises.

• Commerce covers all the activities necessary for facilitating the exchange of goods and services. It has two parts:

  • Trade — the buying and selling of goods.
  • Auxiliaries to trade — the services that make buying and selling possible: transport, banking, insurance, communication, advertising, packaging and warehousing. …