Economic activities on the basis of function:
On the basis of functions, business activities may be broadly grouped into two categories.
(a) Industry: Industry includes all those business activities which are connected with raising, producing or processing of consumer goods. Example -bread, butter, cheese, shoes, or capital goods like machinery.
(b) Commerce: It establishes a link between the producers and consumers of goods and maintains a smooth and uninterrupted flow of goods from producers to consumers.

Economic activities on the basis of ownership:
On the basis of ownership business activities may be broadly grouped into three categories.
(a) Private Enterprises : An enterprise is said to be a private enterprise where it is owned, managed and controlled by persons other than Government.
(i) Sole proprietorship. Example - Sundar Stationeries
(ii) Partnership firms. Example - Ramesh Bros.
(b) Public Enterprises: An enterprise is said to be a public enterprise where it is owned, managed and controlled by Government or any of its agencies or both.
Public enterprises may be organized in several forms such as,
(i) Departmental undertaking - Public Works Department (PWD)
(ii) Public Corporation - Oil and Natural Gas Corporation (ONGC)
(iii) Government Company - State Trading Corporation (STC)
(c) Joint Enterprises: An enterprise is said to be a joint enterprise where it is owned,managed and controlled by Government and private entrepreneurs.
Eg. Maruti Suzuki

Economic activities on the basis of size:
On the basis of size, business activities may be broadly grouped into two categories.
(a) Small-scale:
Small-scale units require less capital. They employ small number of workers and produce the goods on small scale.
Examples:
(i) Manufacturing textiles in handlooms or power looms.
(ii) Extraction of edible oil from seeds like groundnut, sesame, through "traditional wooden churner.
(b) Large scale:
Large-scale units require huge capital. They employ large number of workers and produce the goods on large scale.
Examples:
(i) Manufacturing Textiles in a large Textile mill. Example. Raymonds, Ramraj Cotton.
(ii) Extraction of edible oil from oilseeds in oil mills. Example. Suffola, Sunflower.

Being an important part of the country, every business must have the objective of fulfilling national goals and aspirations. The goal of the country may be to provide employment opportunity to its citizen, earn revenue for its exchequer, become self-sufficient in production of goods and services, promote social justice, etc., Business activities should be conducted keeping these goals of the country in mind, which may be called national objectives of business.

(i) Production or Procurement of Goods:
Goods must be produced or procured in order to satisfy human wants.
(ii) Sale, Transfer or Exchange:
There must be sale or exchange of goods or services. When a person weaves cloth for his personal consumption, it is not business because there is no transfer or sale.
(iii) Dealing in Goods and Services:
Goods produced or procured may be consumer goods like cloth, pen, brush, bag etc., or producer-goods like plant and machinery. Services refer to activities like supply of electricity, gas or water, transportation, banking, insurance etc.

(i) Production of goods by manufacturer
(ii) Distribution of goods by wholesaler
(iii) Selling by retailers

On the basis of function, the business activities are classified into two categories :
(i) Industry :
(1) Industry includes all those business activities which are connected with raising, producing or processing of consumer goods.
(2) Example: Bread, butter, cheese, shoes, or capital goods like machinery.
(ii) Commerce:
It establishes a link between the producers and consumers of goods and maintains a smooth and uninterrupted flow of goods from producer to consumer.

(i) Nature of Work:
(1) Business is concerned with production and sale of goods and services to people.
(2) Profession is concerned with the rendering of specialised personal services to clients.
(3) Employment is concerned with the performance of the work assigned by the employer.
(ii) Capital:
(1) More capital is required for doing business.
(2) But profession does not require much capital and employment does not require any capital.

On the basis of size, business activities may be broadly grouped into two categories.
A. Small Scale:
Small scale units require less capital, employ small number of workers and produce the goods on small scale
B. Large Scale:
Large scale units require huge capital, employ large number of workers and produce the goods on large scale.

Business refers to any human activity undertaken on a regular basis with the object to earn profit through production, distribution, sale or purchase of goods and services.
Business may be defined as "an activity involving regular production or purchase of goods and services for sale, transfer and exchange with an object of earning profit".
A profession is something which is more than a job. It is a career for someone who is competent in their respective areas. It includes professional activities which are subject to guidelines or codes of conduct laid down by professional bodies.