Distinguish between trade, commerce, and industry.

Business Activity is divided into industry and commerce. Commerce is subclassified into trades.

Trade: It means the exchange of goods and services between two or more parties. It represents demand an supply. it requires capital.

Commerce: It is also exchange of goods an services along with other activities such as insurance, transportation, etc. The scope of the field of commerce is greater than trade. It represents only the demand side. The capital required is lesser than trade.

Industry: It deals with extraction, manufacturing, processing, construction of useful products. The scope of industry involves both semi-finished and finished products. It requires huge capital. It represents both the supply and demand side.