Initially, commercial activity was identified with trading. However, now this term is interpreted much more broadly – as an activity that aims to generate profit and income by investing capital.
Types of Market Activities
Market activities are divided into commercial and non-commercial.
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Commercial refers to activities of commerce with the goal of earning profits and includes:
- The production and sale of goods or services.
- Activities done outside of manufacturing or producing the products.
- Use of land or business for retail stores.
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Non-commercial includes non-profit organizations or government agencies.
For example, the production of milk, biscuits, and television sets in factories which are then sold to wholesalers, retailers, and finally to the final consumer.
Related Economic Activities
Accounting deals with the money flow in an organization.
Trade means buying and selling goods or services for profit and facilitates the exchange between buyers and sellers.
Transportation moves goods, while foreign trade involves international buyers and sellers.
Economic activity:
- Generates income.
- Involves production, exchange, consumption.
- Provides livelihood through working for wages, refueling a car, and bartering goods.
- Includes making or selling products and creating jobs.