The components of business are industry and commerce where industry is related with the production of goods or converting raw materials into final goods and commerce is related with marketing or distribution of goods
1. Industry
First component of business is industry which is concerned with production of goods. Production can be through manufacturing, processing and fabricating. Industry uses human and mechanical power. It utilizes various resources.
Industry creates form utility. It converts raw materials into finished goods. The goods can be of two types:
a. Consumer goods: they satisfy human needs. They can be durable and non-durable. For example, television, mobile phone, bread, butter etc.
b. Industrial goods: They are required for production of consumer goods. For example, machinery, components parts, raw materials etc. They used for further production.
2. Commerce
Another component of business is commerce . It is concerned with marketing of products. It involves exchange. It deals with buying, selling and distribution activities. Commerce brings products from place of production to place of consumption. It is a bridge between the producer and consumer.
1. Industry
First component of business is industry which is concerned with production of goods. Production can be through manufacturing, processing and fabricating. Industry uses human and mechanical power. It utilizes various resources.
Industry creates form utility. It converts raw materials into finished goods. The goods can be of two types:
a. Consumer goods: they satisfy human needs. They can be durable and non-durable. For example, television, mobile phone, bread, butter etc.
b. Industrial goods: They are required for production of consumer goods. For example, machinery, components parts, raw materials etc. They used for further production.
2. Commerce
Another component of business is commerce . It is concerned with marketing of products. It involves exchange. It deals with buying, selling and distribution activities. Commerce brings products from place of production to place of consumption. It is a bridge between the producer and consumer.
