Nature and Scope of Business: Business Objectives and Industrial Classification, Classification of Business Activities

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Business Objectives

Image of Objectives of business

Image of Objectives of Business

Classification of Business Activities

Most business activities are concerned with production and/or processing of goods and services or distribution of goods and services. Former is known as ‘Industry’ and later as ‘Commerce’. Some can classify business as Industry and Commerce.

Types of business activities

  • Extraction of oil, natural gas or minerals

  • Manufacturing of commodities

  • Buying of goods from one place/country and selling it at different place/country

  • Construction of buildings, roads, and bridges etc.

  • Providing services like ticketing, warehousing, transportation, banking, insurance etc.


Before classifying industry on basis of nature of activity, let us have a broad idea of different approaches of its classification.

  • Nature of activity: Primary industries, Secondary industries, Tertiary industries

  • Nature of goods produced: Consumer goods industries, Producers’ goods or capital goods industries

  • Level of investment: Heavy industries, Light industries

  • Size of activity: Small scale industries, Large Scale industries

Image of Classification of Industries

Image of Classification of Industries

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