Divisions of Business :

1.     Industry

2.     Commerce

Industry :

Industry is component of business which deals with production of goods and services.

Generally , It is concerned with process of converting raw material in to Finished and intermediate goods. 

Types of Industries :

1.Primary Industry

2.Secondary Industry

Primary Industry : This Industry Deals with production and extraction of raw materials  (which are natural Resoruces ) from the Earth (includes land,water and air)

Nowdays , Oxygen Clinics are  also Considered as Primary Industry .

Primary Industry divided into

1.     Extraction Industry :

Extraction Industries deals with extraction of natural resources from  beneath the surface of the earth.

Ex : Extraction of Coal,oil,gas

2.     Genetic Industry :

Genetic Industry is Related to Reproduction  And Multiplying Certain Species of Plants And Animals with an objective to earn Profits through their sale.

EX : Farming,Cattle breeding,poultry Farms,fishing farms etc

Secondary Industry :

Secondary Industry Deals with using output of primary Industry as Input, processing it and Producing output to be consumed by Consumer.

Ex  : Production of Sugar

Commerce :

Transfer of Goods Produced from Industries and services provided to end customer.

Components of Commerce :

1.Trade

2.Aids to Trade

Trade : This is process of buying and selling good which also include transferring of ownership .

Trade has Two Types :

1.     Home Trade :

Trade  activities Inside the Boundaries of Country

2.     Foreign Trade :

Trade activities involving Two or more  Countries.And is of Three Types

a.     Import : Buying of Goods and services from other countries to our country

b.     Export : Selling of our good and services to other countries from our country

c.      Entreport :  This process involves import of good from one country ,in order to export it to the other country.

Generally Entreport takes place Port areas.Ports divide Homeland and Foreign lands. They are Epz’s and Sez’s .

Ports can be seaports,aiport and Roadways.

Aids to Trade :

Activities which Support Trade and Provide Services to Customer

Transport Services,Advertising, Agents are part of it.

DIFFERENCE BETWEEN INDUSTRY AND SECTOR  :

Industry : It involves production same products

Sector : Classification of Segement of economy into different business segements.

Sector Divided into

1.Primary Sector.

2. Secondary Sector.

3. Tertiary or Service Sector.

By T.Shivaprasad .