DEFINITION OF COMMERCE
ACommerce cares with the exchange of products . It includes all those activities which are associated with transfer of products from the place of production to the last word consumers Whereas trade involves buying and selling merce include trade and aids to trade.
The aids to trade include transport, banking insurance ance, Warehousing, advertisement and salesmanship Commerce embraces all those processes which help to interrupt the barriers between producers and consumers. it’s the sum of these processes which are engaged within the removal of hindrances of person place and time in exchange of commodities (James Stephenson) of products , commerce features a wider meaning Com.
VARIOUS BRANCHES OF COMMERCE
1) Hindrances of place: Generally, all the products aren’t consumed at an equivalent place where are produced the products are to be taken from an area where there’s less demand, to the place where there’s more demand The activity of the movement of the products is named transportation. Thus transport eliminates the hindrances of place.
1) Hindrances of trade countered The hindrances within the way of smooth trade maybe place, person, finance, time, knowledge and risk within the course of exchange of products various problems are entered
2) Hindrances of persons: within the present day world the consumers are in millions and it’s impossible for the producers to understand the consumers who are in need of products produced by them a sequence of middlemen like wholesalers, retailers, dealers, etc Purchase goods from the producers and take them to the purchasers . Thus, middlemen remove the hindrances of persons
3) Hindrances of finance: there’s always a delay between the assembly and sale of products It takes time to gather money and hence need finance for trade. Commerce makes an exchange of products and services possible by removing these hindrances through the agency of banks
is a hindrance of your time and provides time utility to goods
5) Hindrances of knowledge: The consumers might not remember of the supply of varied goods within the market. The absence of data is another hindrance. this is often eliminated through advertising Advertisement is completed through TV, radio, newspapers, magazines wall posters, hoardings, etc
6) Hindrances of risk: There are risks involved within the production, transporting goods from one place to a different warehousing The businessmen would really like to hide these risks.
Insurance companies undertake to catch up on the loss suffered thanks to such risks. So, insurance eliminates the hindrances of risks.