Distinguish between Business and Industry.
Business is established when an individual or a group of individuals decide to start something on their own. Legal formalities like registration are to be fulfilled. Business involves production and exchange of goods and services For example-production of soaps, shampoos, TV sets etc. The person who performs the activities related to business is called a businessman.
A firm established to carry a business activity is called a business enterprise. No specific qualifications are required. Amount of capital depends upon the type of business. Business activities are performed in order to earn profit. Profit is the main motive behind such activities. Risk of loss is also there because wherever profit exists, risk is involved. One can transfer his business by following certain legal formalities.
Industry on the other hand is that part of business activities which works for the production of want satisfying goods with the help of material resources readily available. It creates form utility of goods. The work of the industry is to use the natural resources and bring them into such a form that is useful for further use.
For example—farms, factories, mines etc. Goods that fulfill the needs of the people and are convenient to them are often produced. In the industry, human beings are engaged in activities of extraction, production, processing, construction and fabrication of products.