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EQUITY SHARES VS PREFERENCE SHARES

1. PREFERENCE OF DIVIDEND: The preference shareholders have the preferential right to dividend over the equity shareholders.

2. PREFERENCE OF CAPITAL PAYMENTS: The preference shareholders have preferential rights on capital payment over equity shareholders. 

3.VOTING RIGHTS: The equity shareholders enjoy the voting rights in the company, whereas the preference shareholders do not get any voting rights, except in cases where their interest is influenced. 

4.REDEEMABLE: Preference share may be redeemed at the will of the company whereas equity shares are redeemed only at the time of winding up of the company. 

5. OWNERSHIP: Equity shareholders are the owners of the company, whereas preference shareholders are not the owners of the company. 

Overview of nature and purpose of business
Concept of business:-
Business can be defined as an economic activity concerned with regular production and distribution of goods and services to fulfil the needs and wants of society with a motive to earn a reasonable profit.
Characteristics of business:-
- Economic activity
- Production of goods and services
- Sale of products and services
- Dealing regularly
- Uncertainty of return
- Risk
- Profit
- Dynamic movement
- Legality
- Satisfying human needs and wants
Objectives of business:-
Goals of business can be categorised into two parts that are the primary objective and secondary objective.
Primary objective:-
The primary aim of the business is:-
- Survival
- Profit earning
- Growth
Secondary objective:-
These are as follows:
- Market standing
- Innovation
- Productivity
- Resources earning
- Manager performance
- Workers' performance
- Social responsibility
Classification of business activities:-
It can be classified into two parts:
1. Industry and

2. Commerce
The industry refers to a group of firms producing similar products.
It can be further categories into three parts:
Primary industries
- Genetic industry
- Extractive industry

Secondary industry
Manufacturing industry:-  it can be of four types:
Analytical industry, synthetical sector, processing industry, and assembling industry.
Construction industry
Tertiary industry
Commerce:- It can be classified into two parts:-
Trade and auxiliary to trade
Trade having the following parts:-
- Iternal trade consisting of wholesale and retail business
- External trade consisting of import, export and entrepot.
Auxiliary to trade consisting of:-
- Transportation and communication
- Banking
- Warehousing
- Advertisement
- Insurance

Cottage industries are the type of industries where artistic and creative goods are produced using manual labour and techniques—for example, the handloom and the weaving industry.

The features of cottage industries are:

• They're set up or organised by people with private resources and raw materials.
• They usually use locally available members to get the work done. Sometimes the family members also become a part of it. 
• They make use of simple types of equipment.
• The capital investment is minimal
• They make use of indigenous technology for producing their goods. 
• They make use of minimal raw materials to produce simple goods.