Scope of Business: Business is a comprehensive term. All those activities that are related to the production and distribution of goods and services are included in the area of business. Thus business includes two types of activities, i.e. the production related activities known as Industry and distribution related activities known as commerce. Thus business covers the scope of industry as well as commerce. Industry means the business activities performed to produce goods by using physical or natural resources and transforming them into consumable goods which may meet the needs of the consumers.
Commerce: It is related with the acts to distribute goods to the consumer at proper place, time, manner, quantity and price. In this process of distribution commerce has to seek help from many auxiliary institutions like transportation, warehousing insurance, communication, bank and other financial institutions.
All the commerce related activities are of two categories:
1. Trade and
2. Auxiliary activities of trade.
Thus scope of business includes Industry and commerce as explained above.
