Business includes all actives concerned with the production, sale or exchange of goods and services with the objectives of earning profit. There are three (3) elements of business and these are stated below:
Elements of business
1. Trade: Trade is the final stage of business activity and it involves sales and purchase of goods. It can be divided into two typed such as-
- Home Trade: When trade takes place within the national boundaries.
- Foreign Trade: When trade takes place across the national boundaries.
2. Commerce: It is the process of buying, selling and other activates which facilitate trade such as storing, packaging, transportation, insurance, banging, finance and marketing promotion. The principal function of commerce is to remove the hindrances of person, place, time, exchange and knowledge.
3. Industry: Industry refers to that part of business activity which is engaged in rising producing, processing, fabrication, extraction and conversion of goods.
Other Content of Business:
- What is the Definition of Business?
- Nature and Scope of Business
- Features / Characteristics of Business
- What are the Objectives of Business?