Business is concerned with production and/or exchange of goods and services with the intention of earning profit. It states that business is concerned with two aspects i.e, production and exchange. Based on this, we may classify business activities into two categories.
We can group all the business activities relating to production. The first category is known as 'industry’.
All the activities relating to exchange. The second category is called 'commerce'.
Industry refers to that part of business activities which is concerned with the production of want satisfying goods through utilization of available material resources. Industry utilizes the natural resources and brings them into the form useful for final consumption or further use. It means that the industrial activity aims at ensuring the supply of goods in that form which suits the objects, needs and convenience of the persons expected to use them. Thus, industry creates form utility to goods. Industry means a group of factories usually specializing in a particular product line.