How would you classify business activities?

1. Industry,

2. Commerce.

Industry : 

(i) Industry is concerned with the production or processing of goods and materials. 

(ii) Industry refers to economic activities, which are connected with conversion of resources into useful goods.

(iii) The term industry is generally used for activities in which mechanical appliances and technical skills are involved.

(iv) These includes activities relating to producing or processing of goods as well as breeding and raising animals.

Commerce :

Commerce includes all those activities which are necessary for facilitating the exchange of goods and services. 

(i) Commerce includes two types of activities viz. 

      (a) Trade and,

      (b) Auxiliaries to trade.

Buying and selling of goods is termed as trade. But there are lots of activities that are required to facilitate the purchase and sale of goods. These are called services or auxiliaries to trade and include transport, banking, insurance, communication, advertisement, packaging and warehousing.

All activities involving removal of hindrances in the process of exchange are included in Commerce.