Question

Classify and explain commercial organisations on the basis of activities performed.

Answer 1

On the basis of activities performed commercial organisations may be classified as follows:

1. Trading organisations: Commercial organisations that are involved in the purchase and sale of different types of goods are known as trading organisations. Examples include wholesalers, retailers, importers, and exporters.
2. Transport organisations: Commercial organisations that transport goods and passengers from one location to another for a fee are called transport organisations. Examples include Indian Railways, Shipping Corporation of India, truck and bus companies, tempo services, and Air India.
3. Warehousing organisations: Commercial organisations that offer storage services for a fee are known as warehousing organisations. Examples include the Central Warehousing Corporation, State Warehousing Corporations, private warehouses, and cold storage facilities.
4. Insurance organisations: Commercial organisations that provide protection against risks to life and property in exchange for a premium are called insurance organisations. Examples include Life Insurance Corporation (LIC), ICICI Prudential Life, and National Insurance Company.
5. Banking organisations: Commercial organisations that accept deposits, provide loans, and offer various financial services are called banking and financial organisations. Examples include State Bank of India, ICICI Bank, HDFC Bank, and Standard Chartered Bank.
6. Advertising agencies: Commercial organisations that create and distribute advertisements are known as advertising agencies. Examples include Ogilvy and Mather, Lintas, Hindustan, Thompson Associates (HTA), and Reddifusion.