What is classification and compensation in business?

Classification in business is the art of grouping goods and services according to their similarities or any other criteria established.Businesses can be classified basing on similar production processes,similar products or similar behaviour in the market.Business activities can be classified into industry and commerce.Industry is a business activity that involves manufacturing of raw materials into finished goods while commerce is a business activity involving buying and selling of goods and services for profit.It is used when comparing the performance of different businesses.

Compensation in business refers to the payment of wages to the employees in an organization for the work that they do.Compensation differs depending on the specific positions of different employees and can be monetary or non-monetary.