Business Studies: Chapter 1 - Trade, Commerce, and Business

Introduction

• Business studies is a practical subject.
• The meaning of business is to be busy.
• Business is an activity that people regularly engage in.
• The purpose of business is to earn money.

Human Activities

• Economic Activities: Activities aimed at earning money.
  • Example: Working in a factory, teaching in a school, running a clinic.
• Non-Economic Activities: Activities done for psychological satisfaction.
  • Example: Cooking at home, donating.

Definition of Business

• Business means engaging regularly in activities to earn money.
• Business firm: An organization that conducts business.

Types of Business Activities

• Industry

  • Primary: Producing from natural resources.
    • Example: Agriculture, mining.
  • Secondary: Adding value to existing materials.
    • Example: Construction, manufacturing.
  • Tertiary: Providing services.
    • Example: Banking, insurance.

• Commerce

  • Trade and services that assist in trade.
  • Services: Banking, insurance, advertising.

Types of Trade

• Internal Trade: Trade conducted within a country.
  • Example: Retail, wholesale.
• External Trade: Trade between two countries.
  • Example: Import, export.

Conclusion

• Study based on understanding, avoid rote learning.
• Deeper understanding will be developed in upcoming classes.

Important Notes:

• Understand business and its activities, compile them into notes.
• The aim of business is not just to earn money but also involves regularity and continuity.
• Keep in mind the characteristics and examples of each type of activity.