Various business activities may be classified into two broad categories
(i) Industry Industry refers to an activity which converts raw material into useful products. Industry includes activities related to production and processing as well as activities related to rearing and reproduction of animals 01′ other living species.
Industries may be divided into three broad categories namely primary, secondary and tertiary.
(a) Primary Industry These includes all those industries which are concerned with extraction of natural resources and reproduction of living species.
These industries can further be classified into two categories
- Extractive Industries
- Genetic Industry
(b) Secondary Industry The secondary Industry makes use of products which arc extracted and produced by primary industry as their raw materials and produce finished products. e.g., meaning of iron ore is done in primary industry but steel manufacturing is done in secondary Industry.
There are two kinds of Secondary Industry
- Manufacturing Industries These industries are engaged in the process of conversion of raw materials or semi- finished goods in to finished products.
- Construction Industry These industry are concerned with the construction of buildings, dams. roads etc.
(c) Tertiary 0r Service Industry It is concerned with providing services with facilitate a smooth flow of goods and services. The various types of services provided by Tertiary Industry are Transport, Banking. Insurance, Warehousirrs. Advertising.