Distinguish or Difference between in these 1. Business 2. Industry 3. Commerce 4. Trade 5. Profession
We may define the term business in the following words :
" As an institution organized by person or group of persons to produce or distribute goods or services within incentive of earning profit through the satisfaction of human wants. The element of risk is also involved in it."
Following are the main characteristics of a business :
1. Every business deals in goods and services.
2. The profit motive in the business is essential.
3. Element of risk is also involved in business.
4. In a business there should be a series of deal.
5. People should do the business for money. Free consumption of goods is not included in business.
2. Industry :-
Industry is a branch of a business. Industry is concerned with the production of goods and preparation of goods.
All those activities which produce the goods, or convert the raw material into finished goods or intermediate goods are included in industry. To produce agricultural goods and mining is also included in industry. Anyhow the term industry refers to that pan of business activity which is concerned with the extraction ,production or preparation of products. Following are the main kinds of industry.
1. Primary industry :- It may refers to agriculture and forestry.
2. Extractive industry :- It includes mining and fishing.
3. Manufacturing industry :- It includes the changing of raw material into a more useful form.
4. Constructive industry :- The construction of buildings, dams and roads includes in this industry.
Commerce includes all those activities which are helpful in transferring goods from the place of production to the consumer. For example purchases, sale, transportation's, banking, insurance, storage and advertisement are the activities which come within the scope of commerce. Manufactured goods do not reach directly from the producer to the consumer. For example wholesaler purchases the goods from producer and uses the transportation to transfer these to his store. He also hires the services of bank and insurance company. Then he sells the goods to retailer. A consumer purchases the goods from retailer . So there are many obstacles in the way of producer an consumer.
Mr. James Stephon has rightly stated that " Commerce includes those activities which remove the hind ranees of time, person and places in the exchange of goods."
Trade is an important part of commerce. All those activities are included in the trade which are helpful for the exchange of goods between the producer and consumer. The exchange of goods can be direct or indirect. Those factors which removes the obstacles in the exchange of goods are included in the scope of trade. Trade can be carried out inside and outside the country. Within the country trade has two kinds.
Whole sale retail :- Trade with the foreign countries is either in the form of exports or in the form of imports.
It means vocation which a person adopts after getting specialized training. The professional man provides the services of specialized nature to the people. Some people adopt the particular profession only for the profit motive but others provide the services only. The doctors,accountants and professor fall in the category of professional. These are performing very useful service to the society because they have a specialized knowledge particular field. The professionals who rend free services are very negligible.