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RITVIK SHARMA & SHORYA GOYALXII - E ECONOMIC ACTIVITIESWHAT IS ECONOMIC ACTIVITY?Actionsthat involves theproduction,distributionand consumptionofgoods and servicesat all levels within a society.Gross domestic productor GDP is one way of assessing economic activity, and thedegreeofcurrent economic activity andforecastsfor its future level can significantlyimpactbusiness activityandprofits, as well as inflationandinterest rates.TYPES OF ECONIMIC ACTIVITIESPROFESSIONEMPLOYMENTBUSINESSLAWYERSDOCTORSCACSLABOURERS

MANUFACURINGSERVICESTRADINGPROFESSIONA profession is an occupation which involves rendering of personal service of a specialised nature. The service is based on professional education, knowledge, training etc. This service is provided for a professional fees charged from the clients. The professionals are members of professional bodies and conduct their activities according to the standards set by those bodies. The professional bodies have their own code of conduct which members will have to obeyPROFESSIONAL BODIS IN INDIAMedical Council of India For medical profession.Bar Council of India For practising lawyers or for legal profession. Institute of Chartered Accountants of India For accounting profession. Institute of Company Secretaries For Company Secretary ship Institute of Cost and Works Accountants of India For Cost accountants

EMPLOYMENTWhen a person undertakes to render personal service under an agreement of employment, he is said to be in service or employment. The service is rendered for a salary or wage and/or other benefits attached to that job. The service may be in a government or a private organisation. There is a relationship of employer and employee. A person taking up a job is an employee and the person who provides the service is called an employer.BUSINESSBusiness may be defined as an activity concerned with the production and exchange of goods and services with the objective of earning profits. The word Business literally means a state of being busy. Every person is engaged in some kind of occupation in order to earn ones living.

TYPES OF BUSINESS ACTIVITIES MANUFACTURING

SERVICE TRADING

BUSINESS ACTIVITIESTYPES OF BUSINESS ACTIVITIESMANUFACTURING

Manufacturing is the production ofmerchandisefor use or sale using labour andmachines,tools, chemical and biological processing, or formulation. The term may refer to a range of human activity, fromhandicrafttohigh tech, but is most commonly applied toindustrialproduction, in whichraw materialsare transformed intofinished goodson a large scale. Manufacturing takes turns under all types ofeconomic systems. In a free market economy, manufacturing is usually directed toward themass productionofproductsfor sale toconsumersat a profit.TYPES OF BUSINESS ACTIVITIES2. SERVICE Aserviceis an intangiblecommodity. Service provision is often an economic activity where the buyer does not generally, except by exclusive contract, obtain exclusive ownershipof the thing purchased. The benefits of such a service, if priced, are held to be self-evident in the buyer's willingness to pay for it. Public services are those, that society (nation state, fiscal union, regional) as a whole pays for, through taxes and other means.TYPES OF BUSINESS ACTIVITIES3. TRADING Tradeinvolves the transfer of theownershipofgoods or servicesfrom one person or entity to another in exchange for other goods or services or formoney. Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Trading is avalue-addedfunction: it is the economic process by which a product finds its end user, in which specific risks are borne by the trader.CHARACTERISTICS OF BUSINESSENTREPRENEURS PRESNCE : There must be someone to take initiative for establishing a business and undertake the risk associated with the same.

ECONOMIC ACTIVITY : Business is considered as an economic activity as it is undertaken with the objective of earning money.

PRODUCTION OR PROCUREMENT OF GOODS AND SERVICES : Every business enterprise either produces or procures goods and services from producers.CHARACTERISTICS OF BUSINESSREGULARITY : An important feature of business is that it must sell or exchange goods and services on regular basis. Single transaction cannot constitute business.

SALE OR EXCHANGE OF GOODS AND SERVICES : Business involves sale or exchange of goods and services . The production of goods or services for self consumption is not business.

UTILITY CREATION : Business activities results in creation of utilities. It creates FORM UTILITY, TIME UTILITY , PLACE UTILTY. CHARACTERISTICS OF BUSINESSPROFIT EARNING : The main function of business is earning profit. If the profit motive is missing in a transaction, then it cannot be considered as business transaction.

UNCERTAINTY OF RETURN : Business does not guarantee for the return of either principal amount involved in the business or the profit.

ELEMENT OF RISK : Another important feature of business is the presence of risk factor in the transaction. Business is always exposed to certain risk like NATURAL RISK, HUMAN RISK , ECONOMIC RISK, PHYSICAL RISK.