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State the different types of economic activities. - Business Studies

One Line Answer

State the different types of economic activities.

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Solution

The following are the different types of economic activities.

(a) Business: It basically involves trading of goods and services on a regular basis. The sole motive with which a business is conducted is profit.

(b) Profession: A profession is an occupation that requires highly specific and in-depth knowledge of the relevant field. Every profession is different from another in terms of the knowledge and skills required to practise it. For instance, a doctor cannot engage in the profession of an engineer.

(c) Employment: In this type of economic activity people are hired by organisations to work on a regular basis and are paid in exchange of their services. Normally, a monthly salary is paid. The payments are generally in monetary terms along with certain non-monetary compensations such as perks and other types of allowances. The remuneration paid to blue-collar employees (basically, workers) is termed ‘wages’, while the remuneration paid to white-collar employees (particularly, officers) is termed ‘salary’. All the employees of an organisation work together for the achievement of the common goals.

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APPEARS IN

NCERT Ncert Class 11 Business Studies
Chapter 1 Business, Trade and Commerce
Short Answer Questions | Q 6 | Page 26
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