1. MEANING OF COMMERCE
Commerce is simply defined as all the activities involved in
the distribution and exchanging of goods. In other words, commerce is a branch
of production which is concerned with the distribution, exchange of goods and
service and all activities which assist or facilitate trade, eg. banking,
insurance, transportation, communication, tourism etc. it is the process of buying, selling and distributing
goods and services.
The process of
living involves three major activities which are production, consumption and
exchange. The central focus of commerce is exchange. In a commercial sense, exchange would
concentrate on the transfer of goods and services from their producer to the
customers.
Commerce is therefore concerned with trade and activities
which assist trade. These include the distribution of raw materials to
manufacture and finished product from the factory to the consumers. Commerce
involves time, place and utilities. Commerce developed a result of
specialization.
2. SCOPE OF COMMERCE
The scope of commerce maybe seen as embracing the totality
of all activities which ensure the distribution and exchange of goods and
services for the satisfaction of the people. In all ramifications, commerce
embraces trade and the ancillaries or aids to trade.
The scope of
commerce can be easily be illustrated by a diagram in fig 1.1.
It can therefore be said that the different activities
engaged in by people in commercial occupation include:
I.
Trading
II.
Transporting
III.
Warehousing
IV.
Banking
V.
Insurance
VI.
Advertising
VII.
Communication
VIII.
Tourism
fig.1.1 scope of
commerce
3. TRADE
Trade is one of the two main divisions of commerce. It is
the most important aspect of commerce, trade is the act of buying and selling
of goods and services.
4.
DIFFERENCES BETWEEN TRADE AND COMMERCE
Trade is simply the buying and selling of goods and services
while commerce is involved in all those activities in the distribution and
exchange of goods and services.
Conclusion
With the introduction and definition of commerce in this
topic, we are working hardly to resolved your problem facing education on commerce.
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