NATURE, PURPOSE AND

SCOPE OF BUSINESS
ECONOMIC ACTIVITY

 ANY ACTIVITY WHICH IS DONE FOR THE MONETARY

CONSIDERATION
OR FOR ECONOMICS GAINS IS TERMED AS ECONOMIC ACTIVITY.
 ALL ECONOMIC ACTIVITY CAN BE TERMED AS PRODUCTIVE
ACTIVITIES.
 A PERSON DOING A ECONOMIC ACTIVITY SATISFIES THE
NEED OF
OTHERS AND GET BENEFITS FOR HIM.
NON-ECONOMIC ACTIVITY

 ANY ACTIVITY WHICH IS DONE WITHOUT THE MOTIVE OF

MONETARY
CONSIDERATION OR ECONOMICS GAINS IS TERMED AS
NON-
ECONOMIC ACTIVITY.
 THE FACTORS FOR DOING THIS ACTIVITY IS SOCIAL
SERVICE.
 THIS ACTIVITY IS BEEN CARRIED OUT WITH THE FEELING OF
LOVE,
AFFECTION, AND COMPASSION.
DIFFERENCE BETWEEN ECONOMIC AND
NON-ECONOMIC
ACTIVITY
POINT ECONOMIC ACTIVITY NON-ECONOMIC
DIFFEREN
OF ACTIVITY
CE
OBJECTIV
E MOTIVE IS TO GET ECONOMIC BENEFIT. MOTIVE IS SOCIAL
SERVICE, SERVICE TO COUNTRY.
EXPECTATIO PROFIT, SALARY,OF
MAXIMISATION WAGES, AND SOCIAL SERVICE OR
N WEALTH. SERVICE
TO COUNTRY.
BUSINESS , PROFESSION
TYP EMPLOYMEN
AND NO
E T. TYPE
THERE REMAIN RISK
RISK UNCERTANIT
AND THERE IS NO RISK
AND
UNCERTANIT Y. AND
Y
TYPES OF ECONOMIC ACTIVITY

 BUSINESS MEANS ANY LEGAL ECONOMIC ACTIVITY WITH THE

OBJECTIVE OF PROFIT.
 SOME TIME THERE IS A LOSS IN A BUSINESS BUT THEN ALSO IT IS
TEREMD
BUSINESS.
AS
 BUSINESS IS CARRIED OUT WITH THE MOTIVE OF
PROFIT.
CHARACTERISTICS OF BUSINESS

 THE FOLLOWING ARE THE CHARACTERISTICS OF

BUSINESS-
 REQUIREMENT OF MONEY
 ECONOMIC ACTIVITY
 CONTINUANCE OF ACTIVITY
 RISK AND UNCERTANITY
 EXCHANGE OF GOODS AND SERVICE
 CREATION OF UTILITY
 OBJECTIVE OF PROFIT
OBJECTIVE OF BUSINESS

PROFI
T

MAXIMISATION
ECONOMI
C OF WEALTH

OTHE
R

OBJECTIV
E
SOCIAL
RESPONSIBILITY

PROVIDE
EMPLOYMENT
OPPURTUNITIES
SOCIA
L
PROVIDE QUALITY
GOODS AND
SERVICE

ADOPT FAIR
TRADE
PRACTICE
BUSINESS RISKS

NATURAL MAN MADE

TSUNAMI THEFT
THUNDERSTORMS DACOITY
EARTH QUAKE FIRE ACCIDENT
FLOOD STRIKE OF EMPLOYEES
DROUGHT CHANGE IN TECHNOLOGY
FAMINE POLITICAL INSTABILITY
 PROFESSION AND EMPLOYMENT
CHARACTERISTI
CS
PROFESSIO EMPLOYMEN
N OBTAIN
THEY HAVE TO T IS PAID AT
FIXED SALARY
KNOWLEDGE, SKILL AND
SPECIAL INTERVAL OF
FIXED
TRAINING. TIME.
OTHER BENEFITS ARE GIVEN
HE
SERVICE
CHARGES FEES FOR PENSION, MEDICAL ALLOWANCE.
AS
PROVIDING
S.
THE PRIMARY OBJECTIVE IS TO QUALIFICATION, RETIREMENT,
SERVIC
RENDER HOURS ARE PREDETERMINED.
WORKING
E.
IT IS DEPENDENT ACTIVITY.
IT IS INDEPENDENT
ACTIVITY. NO CAPITAL INVESTMENT
MONETARY RETURNS NEEDED.
REMAIN UNCERTAIN.
 DIFFERENCE BETWEEN BUSINESS,
EMPLOYMENT AND
POINT
PROFESSION
BUSINESS PROFESSION EMPLOYMEN
DIFFEREN
OF T
CE
NATURE OF GOODS AND SERVICE ARE PERSONAL AND PERFORM WORK AS PER
WORK BUSINESS
RENDER IN RETURN OF SERVICE RENDER IN CONTRACT
THE
MONEY.
RETURN OF FEES. .

QUALIFICATION IT IS NOT REQUIRE AS PER REQUIRE AS PER NATURE

S JOB
OF
ESSENTIAL. SKILL. FEES S
. ALARY OR WAGES
RETURN
REQUIRE AS PER NATURE OF REQUIRE
PROFIT NO CAPITAL
CAPITAL BUSINESS.
WHILE ESTABLISHMENT. REQUIRE.

RIS THERE IS RISK OF NON- NO RISK REMAIN

K
TRANSFER RISK IT IS RECEIPT IT IS NOT NO TITLE OF
OF
OWNERSHI OWNERSHIP
 TRADE

 WITH THE MOTIVE OF BUSINESS IS TERMED AS TRADE.

 EXCHANGE OF COMMODITY OR SERVICE IN RETURN OF
 CHARACTERISTICS:
COMMODITY
SERVICE OR
OREXCHANGE OF COMMODITY OR SERVICE IN REURN OF
 IT IS ECONOMIC ACTIVIY.
MONEY
 IT IS LEGAL ACTIVITY.
 IT IS CONTINUOUS ACTIVITY.
 EXCHANGE IS ESSENTIAL.
 TWO PARTIES INCLUDE AS PURCHASER AND SELLER.
TYPES OF TRADE

 INTERNAL- THE TRADE WITHIN THE BOUNDARY OF THE NATION.

 RETAILER AND WHOLESELLER

 INTERNATIONAL-THE TRADE WITHIN THE BOUNDARY OF THE OTHER

NATION.
 IMPORT, EXPORT AND RE-EXPORT.
COMMERCE

 IT MEANS TRADE AND AUXILARY SERVICE TO THE TRADE.

 CHARACTERISTICS:
 TRADE IS A PART OF COMMERCE.
 IT IS AN ECONOMIC ACTIVITY.
 THEY ARE DEMAND ORIENTED YET CONTINUOUS.
 IF AUXILARY SERVICE ARE CHEAP THAN GOODS TO CUSTOMERS
WILL BE PROVIDED AT FAIR PRICE.
DIFFERENCE BETWEEN TRADE AND
COMMERC
E
POINT OF DIFFERENCE TRADE COMMERCE
MEANING EXCHANGE OF GOODS OR IT INCLUDES TRADE AND
SERVICE IN RETURN AUXILARY SERVICE
OF MONEY. TO TRADE.

SCOPE SCOPE IS LIMITED. SCOPE IS WIDER.

PARTIES BOTH PARTIES KNOW MAYBE THEY NOT KNOW

EACH OTHER. EACH OTHER BUT
AUXILARY SERVICE CAN
BE OBTAIN.
INDUSTRY

 A PROCESS OF CONVERTING RAW MATERIALS INTO FINISHED GOODS

BY ADDING UTILITY TO SATIFIES HUMAN NEEDS IS TERMED AS
INDUSTRY.
PRIMARY INDUSTRY SECONDARY INDUTRY TERTIARY INDUSTRY
THESE INDUSTRIES ARE IN THESE THE RAW IT SUPPORTS FIRST
CONNECTED WITH MATERIAL IS TWO
LAND, SEA AND PREPARE FOR INDUSTRY.IT PROVE
AIR. CONSUMING. THE THINGS TO
PUBLIC.
EXAMPLE- EXAMPLE- EXAMPLE-
AGRICULTURE, FERTILIZER SERVICE,
ANIMAL INDUSTRY, STEEL BANKING ,ETC.
HUSBANDARY,ETC. INDUSTRY, ETC.