Business Entrepreneurship · Classes 9-10 · Chapter 1
Scope and Classification of Business, and Industry.
A nursery grows saplings, a mine brings up coal, a mill weaves cloth, a bank takes deposits. All of them are “industry”, yet the work in each is different. A short list in the book sorts them into five boxes. Learn the boxes and the whole shape of business sits in your hand.
1. What business means today
In the modern sense, business is the combination of production of goods and services, exchange of goods, and the activities that help that exchange. One sentence, three parts: production, exchange, and the helping activities.
So today's business is not limited to buying and selling goods. In exchanging products and goods, transportation, insurance, banking, warehousing and advertisement play a significant role.
2. Three branches
Modern business is classified mainly into three types: industry, commerce and direct services. The book's chart is long, so open it one branch at a time.
three branchesopen a branch
The three branches of business
Business
Industry five kinds
Genetic
Extractive
Construction
Service-oriented
Manufacturing
Commerce exchange and its helpers
Exchange of goods
Transportation
Warehousing
Banking
Insurance
Advertisement
Direct services services by professionals
Lawyer
Doctor
Engineer
Audit firm
Internet
Caregiving
3. Industry: the carrier of production
Industry is considered the carrier of production. It is the process in which natural resources are collected and turned into raw material, and finished goods are then prepared by processing that raw material for human use. That process is industry.
Industry is divided mainly into five categories: genetic, extractive, construction, manufacturing and service industry.
4. Five boxes, five examples
In genetic industry the products produced are used for further production; for example, a nursery or a hatchery.
Through extractive industry natural resources are collected from the earth, water or air; for example, mining.
Through construction industry roads, highways, bridges, culverts and the like are built.
In manufacturing industry labour and machines process raw material into finished goods; for example, textile mills.
The service industry makes a person's life easy and comfortable by providing different kinds of service; for example, production and distribution of electricity and gas, banking and health services. Now tap the examples and see which box each falls into.
types of industrythink what the work does
Which industry?
Nursery: genetic industry. What it produces is used for further production.
Hatchery: genetic industry. Like a nursery, what it produces is used for further production.
Mining: extractive industry. It collects natural resources from the earth.
Building roads: construction industry. Roads, bridges and the like are this industry's work.
Building bridges: construction industry. Bridges stand beside roads as construction examples.
Textile mills: manufacturing industry. Labour and machines make finished goods from raw material.
Electricity and gas production and distribution: service industry. It makes life easy and comfortable.
Banking: service industry. In the list of industries, banking is an example of service industry.
Health services: service industry. It makes life easier by providing a service.
All nine seen. What the work does decides the box.
You can find the box without memorising names. Pick an example and answer four questions; you will land in one of the five boxes.
a key to industryyes or no
Which industry?
Now the other way round: choose the box from a situation, not a name. All six situations are imaginary, but the yardstick is the book's definition.
sort them · imaginarymatch the book's definition
Situation and industry
Pick up a situation, then drop it in a box. Ask: does the work extract, make something, or give a service?
Right. Next one.
Not yet. Recall the book's one-line definition and try again.
All in place. Saplings and chicks both feed further production, so genetic. Digging coal is extractive, the bridge is construction, weaving cloth is manufacturing, and delivering gas is service.
Finally the whole thing in one grid. Open each row: what each industry does, and its example.
five industriesopen each row
The five-industry grid
industry
what it does
example
Genetic
output feeds production
nursery, hatchery
Extractive
collects resources
mining
Construction
roads, bridges
road building
Manufacturing
raw material to finished goods
textile mills
Service
makes life easy
electricity-gas, banking, health
Genetic. The products are used for further production; nursery, hatchery.
Extractive. Natural resources are collected from the earth, water or air; mining.
Construction. Roads, bridges and the like are built.
Manufacturing. Labour and machines process raw material into finished goods; textile mills.
Service. Services make life easy and comfortable; electricity and gas production and distribution, banking, health services.
5. Check yourself
Three questions in the exam's style. Start with the first.
check yourselfpick one answer
Question 1
What is the combination of the production and exchange of goods and services and their associated activities called?
Right. Business is the combination of production of goods and services, exchange of goods and the other activities associated with it.
'Self-employment' does not fit here. The book says: Business is the combination of production of goods and services, exchange of goods and the other activities associated with it.
'Employment' does not fit here. The book says: Business is the combination of production of goods and services, exchange of goods and the other activities associated with it.
'A service centre' does not fit here. The book says: Business is the combination of production of goods and services, exchange of goods and the other activities associated with it.
In the second, name the industry from an example.
check yourselfpick one answer
Question 2
Examples of genetic industry are:
i. Nursery ii. Building roads iii. Hatchery
Statement ii is false: Building roads is construction industry.
Right. i and iii are true; ii is false: Building roads is construction industry.
Statement ii is false: Building roads is construction industry.
Statement ii is false: Building roads is construction industry.
In the last, recall the definition.
check yourselfpick one answer
Question 3
Ahona hatches goose eggs in a brooding machine and sells the chicks locally. Which industry does her work belong to?
Manufacturing industry: labour and machines turn raw material into finished goods (textile mills). The correct answer is Genetic industry.
Extractive industry: natural resources are collected from earth, air or water (mining). The correct answer is Genetic industry.
Right. In genetic industry the products produced are used for further production.
Construction industry: roads, bridges and the like are constructed. The correct answer is Genetic industry.
The whole note on seven cards.
cut from the notetap to turn over
Seven cards
QuestionTransportation, insurance, banking, … and advertisement are the activities that help in exchanging goods.
Answerwarehousing
QuestionInto how many main types is modern business classified, and which?
AnswerThree: industry, commerce and direct services.
QuestionWhat is industry?
AnswerThe process in which natural resources are collected and raw material is processed into goods fit for human use.
QuestionInto how many main categories is industry divided?
AnswerFive: genetic, extractive, construction, manufacturing and service industry.
QuestionIn which industry are the products used for further production?
AnswerGenetic industry (for example nursery, hatchery).
QuestionMining and the electricity industry: which is extractive and which is service industry?
AnswerMining is extractive; production and distribution of electricity is service industry.
QuestionIn which industry are labour and machines used to turn raw material into finished goods?
AnswerManufacturing industry (for example textile mills).
Source: Business Entrepreneurship, Classes 9-10 (NCTB), Chapter 1 “Introduction to Business”, the “Scope and Classification of Business, and Industry” part.