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Types of Business Activities
We, as humans, are constantly changing. Our needs and desires are never constant. You might want an Android phone
today, but tomorrow it's not the same. You may desire an iPhone. So, our needs are changing over time. The market offers
products in the form of goods or services to meet our specific needs. Let us have a look at them, one by one.
Business Activities
Manufacturing Trading Services
Manufacturing Business
A manufacturing company is involved in developing the raw materials into finished products to meet the needs of its
customers. In this type of business, you can sell the finished product directly to your customers. For example, Bata makes
shoes; it has several factories where shoes are made. This is an example of a manufacturing company.
Trading Business
Trading companies do not manufacture goods or products. They only facilitate the process of getting the finished
product to brought from the production unit to the purchaser or customer. For example, your local pharmacy or chemist
shop sells various medicines manufactured by different companies. It is only involved in the process of procuring the
medicines from pharmacy companies and selling them to customers.
78 Touchpad Artificial Intelligence (Ver. 3.0)-XI

