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Types of Human Activity Non-economic Economic Activities : Activities Economic activities are those which are done to earn livelihood. For example: A doctor working in a hospital, ‘a teacher teaching in a school, a manager working in his office, etc. | AS Non-economic activities aie dak ATIN "tf natw©r Business refers to Profession refers to the It refers to an activity those economic activities which in which an individual activities which are requires special works regularly for concermed with the knowledge and skill to another person and production, be applied by an sale or distribution of —individual in his workto return. goods and services earn a living. These with the main services are subject to objective of earning code of conduct laid profit. down by professional bodies. oo » Furniture Shop « 1. Mode of Entrepreneur's decision and Profession may commence Appointment letter and establishment | other legal formalities, if on completion of degree or | service agreement. necessary. course and by getting a certificate of practice. 2. Qualification No minimum qualification Qualifications, expertise and | Qualification and training as required. training in specific field as prescribed by the employer. prescribed by the professional body is a must. 3, Capital Capital investment required as | Limited capital investment is | No capital investment is Investment per size and nature of required. required. business. 4. Risk Profits are uncertain and Fee is generally regular and =| Fixed and regular pay; no or irregular; risk is present. certain; some risk. little risk. 5. Transfer of Transfer of interest is possible | Not possible. Not possible. Interest with some formalities. An economic activity Production or procurement of goods and services Element of risk Sale or exchange of goods and services Uncertainty of return Dealings in goods Profit earning and services on a regular basis Business is an economic activity as it is undertaken with the motive of and and not out of love, affection, sympathy or any other emotion Before goods are offered to people for consumption, these must be either produced or procured by business enterprises. Thus, every business enterprise either manufactures the goods it deals in or acquires them from producers, to be further sold to consumers Business involves sale and purchase of goods and services. Production of goods and services for Buying and selling of goods one or twice is not business. Single transaction of sale does not constitute business. Industry refers to economic activities, which is concemed with industries include activities related to production and processing as well as. activities related to rearing and reproduction of animals or other living species. 
