Commercial Applications
Answer
Commerce is a wide term consisting of all those activities which facilitate the sale, transfer or exchange of goods and services. It comprises buying and selling of goods and services and the operations which facilitate such buying and selling. The basic aim of commerce is to ensure the supply of goods at the right time, at the right place and in the proper quantity.
According to James Stephenson, "Commerce is the sum total of those processes which are engaged in the removal of hindrances of persons (trade), places (transport and insurance) and time (warehousing) in the exchange (banking) of commodities."
In simple terms, Commerce = Trade + Auxiliaries to Trade (transport, warehousing, insurance, banking, advertising, etc.).
Related Questions
A farmer grows organic vegetables and supplies them to local markets. To increase profits, the farmer sets up a cold storage unit to store surplus vegetables during the off-season and sells them when prices are higher. Which type of industry does the farmer's activity represent?
- Extractive Industry
- Genetic Industry
- Manufacturing Industry
- Construction Industry
Give two characteristics of business.
List any two differences between industry and commerce.
What are aids to trade?