commerce: introdution of commerce



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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