Nature and scope of Business: Discussions in Commerce for Competitive Exams

Every human activity in which one is engaged for purpose of earning one’s livelihood is known as economic activity. Scope of business organization has considerably expanded after the industrial revolution.

Human activities

  • Every human being is engaged in activity.

  • Activities may be:

    • Cultivating land

    • Playing football

    • Reading storybooks, studying in a school and teaching in college

    • Preparing food, working in office and jogging in park etc.

  • Activities start to satisfy their needs or wants are called human activities.

  • Individuals engage themselves in one activity or other.

  • By doing such activities they are trying to satisfy some of their needs or wants.

Economic activities

  • Its objective is to earn money or livelihoods are called economic activities.

    Examples: A farmer growing crops, a worker working in a factory for salary.

Non-economic activities

  • Undertaken to derive self-satisfaction are called non-economic activities.

    Examples: Engaging in sports for physical fitness, listening to music, providing relief to flood victims.

Image of Economic activities and objectives

Economic Activities

Image of Economic activities and objectives

Classification of economic activities

Economic activities in which individuals engage themselves on a regular basis and earn their livelihood are known as their ‘occupations’. These can be categorized as:

(i) Profession

(ii) Employment

(iii) Business

Classification of economic activities

Classification of Economic Activities

Classification of economic activities