English

Comparative Study of Economic Activities

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Topics

  • Industry and commerce
  • Business, Profession, and Employment
  • Business and Commerce 

Industry and commerce

Sr. No. Point of Difference Industry Commerce
1) Meaning Production of goods and services Distribution of goods and services
2) Location Factories and workshops Markets and offices
3) Utility Creates a form utility Creates place, time, and possession utility
4) Resources Uses machines and manpower Requires more manpower
5) Capital Requires huge capital Requires comparatively less capital
6) Interdependence Relies on commerce to sell products Depends on the industry for goods/services
7) Conducted by Producers and manufacturers Traders, mercantile agents, etc.
8) Status Primary importance Secondary importance
9) Classification Primary, Secondary, and Tertiary industries Trade and auxiliaries to trade
10) Market Force Represents the supply side of the market Represents the demand and supply side
Maharashtra State Board: Class 11

Business, Profession and Employment

Sr. No. Point of Difference Business Profession
1) Meaning Produces and distributes goods/services Provides expert services
2) Reward/Return Earns profit Charges fees for services
3) Capital Investment Depends on the size and nature of the business Limited capital, except for the self-employed
4) Nature of Work Provides goods and services to the public Renders personalized expert services
5) Qualification No minimum qualification required Expert knowledge and training required
6) Decision-Making Free to make decisions Expert decisions in the profession
7) Risk High risk, uncertain, and irregular profit Fees are not always certain or regular
8) Examples Builders, grocers, supermarkets Doctors, C.A.s, lawyers
Maharashtra State Board: Class 11

Business and Commerce

Sr. No. Point of Difference Business Commerce
1) Meaning Deals with the production and distribution of goods/services Part of the business, focused on distribution
2) Scope Broader (production, distribution, sale) Narrower (distribution and trade only)
3) Skill Requires technical and marketing skills Requires only marketing skills
4) Classification Classified into Industry and Commerce Classified into trade and auxiliaries
5) Goal To earn a profit by producing and selling To make goods available in the market
6) Activities Manufacturing, retailing, and trading Trade (buying/selling) and auxiliaries

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