The business includes all activities concerned with the production, sale, or exchange of goods and services with the objective 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 types such as-
- Home Trade: When trade takes place within national boundaries.
- Foreign Trade: When trade takes place across national boundaries.
2. Commerce: It is the process of buying, selling and other activates which facilitate trade such as storing, packaging, transportation, insurance, banking, 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 that is engaged in rising production, processing, fabrication, extraction, and conversion of goods.
Other Content of Business: