Types of Business Activities
People carry out different business activities in order to earn income.
Business activities are activities which involve the provision of goods or services with an aim of earning a profit.
Activities done without the intention of making profit are referred to as non-business activities
Business activities may be grouped into the
following seven categories:a) Extraction
This involves obtaining goods from their natural setting e.g. mining, farming,lumbering, fishing, quarrying e.t.cb) Processing
This involves the conversion of raw materials into more useful products without combining it with other goods. Examples here include milling/grinding flour, refining oil, tanning of skins and hides,conversion of iron into steel e.t.cc) Manufacturing
This involves combining different raw materials to come up with one final product. Such activities include bread baking,making a table e.t.cd) Construction
This involves building of structures such as
bridges,ships,aeroplanes,houses,roads,railways e.t.ce) Distribution of goods
This refers to the activities involved in moving
goods from where they are produced to where they are needed. People who carry out distribution are called distributors. Examples of distributors are wholesalers and retailers.f) Trade-Activities
In this category involve the buying and selling of goods with a view of making a profit. People involved in trade are called traders.g) Provisions of services
Activities in this category involve human acts
which could be mental or physical. These include activities such as hair-cutting, hair styling, car-washing, nursing, teaching, driving, and
Students to give examples of activities they pay money for which are not goods.