By Nitika Sharma

Business

Business means an enterprise engaged in the production and distribution of goods for sale in the market or the rendering of services for a prices

(An organization or economic system where goods and services are exchanged for one another or for money. Every business requires some form of investment and enough customers to whom its output can be sold on a consistent basis in order to make a profit. Businesses can be privately owned, not-for-profit or state-owned. An example of a corporate business is PepsiCo, while a mom-and-pop catering business is a private enterprise.)

BUSINESS

Sale, transfer or exchangeDealing in Goods & ServicesContinuity in DealingsProfit motiveRisk or Uncertainty

Characteristics of Business

SCOPE OF BUSINESS

Industry

Commerce

Industry is used to refer to the processes by which useful things are extracted from the environment and transformed, processed, fabricated and multiplied into other products.Extractive IndustriesGenetic IndustriesManufacturing IndustriesConstruction Industries

Industry

Commerce is concerned with the exchange of goods & services : with all that involved in the buying & selling of goods at any stage in their progress from the Raw materials to finished goods in consumer’s hand.

Bridges the gap between the producers & consumers.

(Exchange of goods or services for money or in kind, usually on a scale large enough to require transportation from place to place or across city, state, or national boundaries.)

Commerce

Hindrance of personHindrance of placeHindrance of timeHindrance of riskHindrance of exchangeHindrance of knowledge

Commerce removes the Hindrance

It is concerned with sale, transfer or exchange of goods.Internal or Home Trade

Wholesale TradeRetail Trade

International or Foreign TradeImport TradeExport TradeEntrepot Trade

(Commercial transaction involving the sale and purchase of a good, service, or information.)

Trade

TransportationWarehousing or StorageInsuranceBankingAdvertising

Auxiliaries to Trade

Industry

Commerce

Trade

Interretionship between Industry , Commerce & Trade

MEANING: Industry- Extraction, reproduction, conversion, processing and construction of useful products.Commerce- Activities involving distribution of goods and services.Trade - Purchase and sale of goods and services.

2)SCOPE: Industry- Consists of all activities involving conversion of materials and semi-finished products into finished products.Commerce- Comprises trade and auxiliaries to trade.Trade - Comprises exchange of goods and services.

3)CAPITAL: Industry- Generally large amount of capital is required.Commerce- Need for capital is comparatively less.Trade - Capital is needed to maintain stock and grant credit.

4)RISK : Industry- Risk involved is usually high.Commerce- Relatively less risk is involved.Trade - Relatively less risk is involved.

Difference between Industry, Commerce and Trade

Thank You