What is meant by business? List the different categories in which business activities can be classified.

Question

Accepted Answer

Business means all economic activities related to the production and distribution of goods and services undertaken for monetary gains. Business activities can be classified into three categories: (i) Manufacturing - production of merchandise for use or sale using labour and machines. (ii) Service - intangible economic activity consumed at the point of sale. (iii) Trading - buying, selling, or exchanging goods or services.