WHAT IS COMMERCE ?
Commerce refers to all those activities which help directly or indirectly in the distribution of goods to the ultimate consumer .There is no use of producing goods unless and until these goods reach the ultimate consumer.goods are produced at one place and consumers are scattered at different places. The consumers are not aware of what kind of goods are produced by the manufacturers.Goods are produced in a large quantity and demanded by consumers in a small quantity .all these problems that is ,the hindrances of place, knowledge,storage,etc are solved by commerce.
FUNCTIONS OF COMMERCE
The commerce segment of business activities is very important .commerce is a backbone of industry as well as of countries .commerce is only reason due to which consumer gets what they want?
some functions of commerce are:-
1.Helps in removing the hindrance of persons
2.helps in removing the hindrance of place
3.helps in removing the hindrance of time
4.helps in removing the hindrance of exchange
5.helps in removing the hindrance of risk
6.helps in removing the hindrance of knowledge.
7.helps in the growth of country
8.helps in the development of people and needs of people.
Explanations of functions:-
1.Helps in removing the hindrance of persons:- A large variety of goods are produced by a group of persons called producers.These are produced for another group of persons called consumers.There is no direct relation between producers and consumers.The trade segment of commerce creates a link between producers and consumers.Traders help in exchange of goods or services from the producers and consumers. traders help in exchange of goods or services from the producers and consumers.Traders help in exchange of goods or services from the producer to consumer and hence remove the hindrance between producers and consumers.
2.Helps in removing the hindrance of place:- Goods are produced at one place whereas consumers are scattered in different corners of the country .There is a place gap between the producers and consumers .The transport segment of commerce helps in removing the place gap.The transport moves goods from the place of production to the markets which are easily accessed by the customers.Thus transport is essential for buying and selling of goods .It is an important function of commerce .
3.helps in removing the hindrance of time:- Some goods are produce in a particular season only but are demand throughout the year.for example : wheat ,rice,pulses etc.On the other hand some goods are produced throughout the year but are demanded in particular year but are demanded in a particular season.So there is the time gap between the production and consumption.in this gap there is a need to protect and make goods safe.Warehousing segment of commerce helps in removing time gap.
for example,perishable goods are kept in cold storage houses .inflammable goods in fire- proof warehouses etc.
4.helps in removing the hindrance of exchange:- The goods and services produced by the manufacturer are sold to buyer in exchange of money. The common medium of exchange is circulated by the banking branch of commerce .The banks help the buyers and sellers in making and collecting payments.Now businessmen can send money from one place to the other in the form of bank draft,cheques etc. Banks are also financing businessmen by granting them loan, credit facility etc.
5.helps in removing the hindrance of risk:- There are different types of risks which a businessman has to face.the insurance branch of commerce helps in removing the hindrance of risk by providing protection and compensations to the insured.Insurance companies agree to undertake to make good the loss suffered by the businessmen . The common types of risks covered by insurance covered by an insurance company are damage of goods during transit,storage,by fire,flood,rain etc.
6.helps in removing the hindrance of knowledge:- generally the consumer and buyer are unaware about the new goods produced by the manufacturer as there is no direct communication between the manufacturer and the consumer. The advertisement branch of commerce helps in removing the hindrance of knowledge by spreading the awareness about the new products and their utility.for example, everyone knows that i7 is a good processor due to advertisement.
CLASSIFICATION OF COMMERCE
Commerce can be classified into two broad categories :
1.Trade
2.Aids to Trade.
Commerce refers to all those activities which help directly or indirectly in the distribution of goods to the ultimate consumer .There is no use of producing goods unless and until these goods reach the ultimate consumer.goods are produced at one place and consumers are scattered at different places. The consumers are not aware of what kind of goods are produced by the manufacturers.Goods are produced in a large quantity and demanded by consumers in a small quantity .all these problems that is ,the hindrances of place, knowledge,storage,etc are solved by commerce.
FUNCTIONS OF COMMERCE
The commerce segment of business activities is very important .commerce is a backbone of industry as well as of countries .commerce is only reason due to which consumer gets what they want?
some functions of commerce are:-
1.Helps in removing the hindrance of persons
2.helps in removing the hindrance of place
3.helps in removing the hindrance of time
4.helps in removing the hindrance of exchange
5.helps in removing the hindrance of risk
6.helps in removing the hindrance of knowledge.
7.helps in the growth of country
8.helps in the development of people and needs of people.
Explanations of functions:-
1.Helps in removing the hindrance of persons:- A large variety of goods are produced by a group of persons called producers.These are produced for another group of persons called consumers.There is no direct relation between producers and consumers.The trade segment of commerce creates a link between producers and consumers.Traders help in exchange of goods or services from the producers and consumers. traders help in exchange of goods or services from the producers and consumers.Traders help in exchange of goods or services from the producer to consumer and hence remove the hindrance between producers and consumers.
2.Helps in removing the hindrance of place:- Goods are produced at one place whereas consumers are scattered in different corners of the country .There is a place gap between the producers and consumers .The transport segment of commerce helps in removing the place gap.The transport moves goods from the place of production to the markets which are easily accessed by the customers.Thus transport is essential for buying and selling of goods .It is an important function of commerce .
3.helps in removing the hindrance of time:- Some goods are produce in a particular season only but are demand throughout the year.for example : wheat ,rice,pulses etc.On the other hand some goods are produced throughout the year but are demanded in particular year but are demanded in a particular season.So there is the time gap between the production and consumption.in this gap there is a need to protect and make goods safe.Warehousing segment of commerce helps in removing time gap.
for example,perishable goods are kept in cold storage houses .inflammable goods in fire- proof warehouses etc.
4.helps in removing the hindrance of exchange:- The goods and services produced by the manufacturer are sold to buyer in exchange of money. The common medium of exchange is circulated by the banking branch of commerce .The banks help the buyers and sellers in making and collecting payments.Now businessmen can send money from one place to the other in the form of bank draft,cheques etc. Banks are also financing businessmen by granting them loan, credit facility etc.
5.helps in removing the hindrance of risk:- There are different types of risks which a businessman has to face.the insurance branch of commerce helps in removing the hindrance of risk by providing protection and compensations to the insured.Insurance companies agree to undertake to make good the loss suffered by the businessmen . The common types of risks covered by insurance covered by an insurance company are damage of goods during transit,storage,by fire,flood,rain etc.
6.helps in removing the hindrance of knowledge:- generally the consumer and buyer are unaware about the new goods produced by the manufacturer as there is no direct communication between the manufacturer and the consumer. The advertisement branch of commerce helps in removing the hindrance of knowledge by spreading the awareness about the new products and their utility.for example, everyone knows that i7 is a good processor due to advertisement.
CLASSIFICATION OF COMMERCE
Commerce can be classified into two broad categories :
1.Trade
2.Aids to Trade.
this may help to you guise!
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