useful for XI commerce students

1. STRUCTURE OF BUSINESS

2. STRUCTURE - MEANING
The way in which several part of a system or unit
put together.
BUSINESS STRUCTURE
The way in which a particular business is
constituted

4. CLASSIFICATION OF BUSINESS
ON THE BASIS OF SIZE
Small scale units
• Operate on small scale
• Production or trade is small
• Limited number of workers
• Require less capital
• Small number of customers
Large scale units
• Operate on large scale
• Production or trade is large
• large number of workers
• Require huge capital
• large number of customers

5. CLASSIFICATION OF BUSINESS
ON THE BASIS OF FUNCTION
INDUSTRIAL
ENTERPRISES
• Engaged in production or
processing of goods.
• Goods may be consumer
goods or capital goods
COMMERCIAL
ENTERPRISES
• Facilitates exchange of goods
through proper distribution
network and storage
facilities.

6. CLASSIFICATION OF BUSINESS
ON THE BASIS OF OWNERSHIP
PUBLIC SECTOR
UNITS
• Owned and managed by
central govt. or state govt.
or govt. agencies.
PRIVATE SECTOR
UNITS
• Owned and managed by
private parties.
Joint sector units.
Partly owned by Govt. and partly by private businessmen

7. Public Sector Units
• Departmental undertakings
• Public corporations
• Govt. Companies
Private Sector Units
• Sole Proprietorship
• Partnership
• Joint Hindu Family Business
• Company
• Co-operative societies

8. INDUSTRY
• It is an economic
activity which
involves production
or processing of
goods for
consumption or for
further production.
• Group of firms or units
producing similar
goods.
• Examples
- Textile Industry
- Cement Industry
- Banking Industry
- Insurance Industry

9. PRIMARY INDUSTRIES
1.EXTRACTIVE INDUSTRY
• Extraction of natural
resources or extraction
from nature.
• Eg. Mining , Fishing,oil
exploration
2.GENETIC INDUSTRY
• Multiplication and
reproduction of plants and
animals.
• Reproduction for better
species.
• Development of high
yielding varieties.

10. 1.EXTRACTIVE INDUSTRY

11. 1.EXTRACTIVE INDUSTRY

12. GENETIC INDUSTRY

13. SECONDARY INDUSTRIES
1.MANUFACTURING INDUSTRY
• Engaged in converting raw
materials into finished
goods.
• Eg. Rubber in to tyre
• Timber in to furniture
2.CONSTRUCTION INDUSTRY
• Engaged in construction of
dams, bridges, roads,
buildings etc…
• It is labour intensive
• Its products are movable
• It uses the products of other
industries as their raw
materials.

14. TERTIARY INDUSTRIES
• CONCERNED WITH PROVIDING SERVICES TO
THE PRIMARY INDUSTRIES AND SECONDARY
INDUSTRIES.
• Eg- Transport
• Communication
• Banking
• Insurance

15. COMMERCE
• It is defined as those activities involving the
removal of hindrances of in the process of
exchange of goods.
• COMMERCE =TRADE + AIDS TO TRADE

16. COMMERCE =TRADE + AIDS TO TRADE
TRADE AIDS TO TRADE
• Activities which assist trade.
• Eg :
• Banking
• Insurance
• Warehousing
• transportation
-Sale, exchange or
transfer of goods.
It helps in making
available goods
produced to the
ultimate consumers.

17. TYPES OF TRADE
CLASSIFICATION ON THE BASIS OF VOLUME OF GOODS TRADED
WHOLESALE TRADE
• Here the trader buys goods
in bulk quantity and sells
them in smaller quantities
to the retailers.
• Here the trader is called
wholesaler.
RETAIL TRADE
• Here the trader buys
smaller quantity of goods
from the wholesalers or
producers and sells them to
the ultimate consumers.
• Here the trader is called
retailer.

18. TYPES OF TRADE
CLASSIFICATION ON THE BASIS OF geographical boundaries
INTERNAL TRADE
• Here the TRADE TAKES
PLACE WITH IN THE
BOUNDARIES OF A
NATION
• Also called home trade
or domestic trade
EXTERNAL TRADE
• Here the TRDE TAKES PLACE
BEYOND THE BOUNDARIES
OF A NATION
• ALSO CALLED FOREIGN
TRADE OR INTERNATIONAL
TRDE.
• IT may be- export trade
• Import trade
• Entrepot trade

19. COMMERCE = TRADE + AIDS TO TRADE
When goods are sold to a foreign country, it is Export Trade
When goods are purchased from a foreign country, it is Import trade
When goods are imported for export, it is called Entrepot trade

20. AIDS TO TRADE
Activities which assist trade are called
aids to trade or auxiliaries to trade.
Eg – Banking, Insurance, Advertising etc..

21. COMMERCE
• It is defined as those activities involving the
removal of hindrances of in the process of
exchange of goods.
• COMMERCE =TRADE + AIDS TO TRADE

22. FUNCTIONS OF COMMERCE
• 1. By providing
transportation
facilities, commerce
removes the
hindrances of place
• 2. By providing
insurance
facilities, commerce
removes the hindrances
of risk

23. FUNCTIONS OF COMMERCE
• 3. By providing
warehousing
facilities, commerce
removes hindrances
of time.
• 2. By providing banking
facilities, commerce
removes hindrances of
finance

24. FUNCTIONS OF COMMERCE
• 5. Through
advertising
facilities, commerce
removes the
hindrances of
knowledge.
• 6.buying and selling of
goods or trade

25. E-COMMERCE
• It refers to the conduct of business
transactions through a computer network.
• The media used for this purpose is the
internet.
• Here the consumers can buy at any time
from any seller located at any part of the
world, from his home itself.

26. E – Commerce Models
OR
E – Commerce Transactions
1. B2B Transactions
2. B2C Transactions
3. B2G Transactions
4. B2E Transactions

27. 1. B2B Transactions
• Placing order with suppliers
• Transfer of goods between branches
• Transactions between businessmen
• collaboration

28. 2. B2C Transactions
• Business offering services to customers
• Consumer placing order
• Electronic payment
• Consumer seeking clarification on product
details

29. 3. B2G Transactions
• Payment of tax
• Application for licences
• Seeking government clearance

30. 4. B2E Transactions
• Payment of salary
• Informing employees on business process
• Seeking employees suggestions
• Operation of welfare schemes.

31. Resources required for E-Commerce
• Computer with Telecom network and Internet
facility
• Technically qualified & trained employees
• System of making payments using debit
card, credit card, net banking, mobile banking
• Well developed websites
• Well developed telecommunication facilities