Association of Chartered Certified Accountants (ACCA) Certification Practice Test

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Which of the following is NOT a category of business activities?

  1. Manufacturing

  2. Retailing

  3. Transportation

  4. Construction

The correct answer is: Transportation

Transportation is indeed a category of business activity, primarily focused on the movement of goods and people from one location to another. However, the question asks for an option that is NOT a category of business activities, which makes the answer more nuanced. Manufacturing, retailing, and construction all represent distinct sectors within the economy. Manufacturing involves the production of goods, retailing focuses on the sale of products to consumers, and construction encompasses the building of structures and infrastructure. While transportation is a critical component of the supply chain and facilitates other business activities, it is often categorized as a service rather than a standalone sector in the same context as manufacturing, retailing, or construction. Hence, labeling transportation as not a core business activity type can stem from its supportive role in contrast to the more product-centric nature of the other options. Understanding the classification of business activities is vital for analyzing economic functions and their interrelationships.