Business Studies JSS 1 Week 1
Topic: Introduction to Commerce
Content:
Meaning of commerce
Commercial Activities
Importance of Commerce
Activities which aid Commerce
A. Meaning of Commerce
Commerce can be defined as human activities that deal with buying and selling of goods and services. It occurs with supporting activities like as transportation, warehousing, banking, insurance etc. All these supporting activities are called aids to commerce.
B. Commercial Activities
A commercial activity involves the production of goods and provision of services. For example: the productions of milk, biscuit, television set in their factories which are sold to wholesalers. The wholesalers then sell the goods to retailers, the retailers then sell the goods to the final consumer.
Commercial activities then involve the acts of buying and selling of farm and manufactured products. It also involves the activities of lawyers, accountants, teachers, musicians, hairdressers etc. The buying and selling of goods and services are called trading. Trading is therefore divided into:
Home Trade: It is the trade carried out within a country; it is made up of the wholesaler and retailer.
Foreign Trade: It is the trade with other countries of the world. It is made up of import and export.
C. Importance of Commerce
Importance of commerce include the following
- It helps a country to develop faster
- It develops the banking system
- It provides employment opportunities
- It helps in the transporting of goods and services from one place to another
- It creates a link between the manufacturers, buyers and sellers
- Commerce makes a person become an entrepreneur
D. Activities which Aid Commerce
The activities include:
- Banking: It deals with the finances of trading activities.
- Insurance: It deals with bearing of risks of investment
- Communication: It provides the link
- Transportation: It involves the movement of goods from one place to another
- Advertising: It involves the process of creating awareness about a new or existing product.
Test and Exercise
- The process of creating awareness of new and existing product is called (a) banking (b) transportation (c) advertising (d) communication
- —————– can be defined as human activities that deal with buying and selling of goods and services. (a) commerce (b) foreign trade (c) communication (d) aid to commerce
- The trade within a country is called (a) home trade (b) foreign trade (c) international trade (d) overseas trade
- Commerce is important for the following reasons except (a) It helps a country to develop faster (b) It develops the banking system (c) It provides employment opportunities (d) it makes it possible for a person to travel all over the world
- The commercial activities that deals with the finances of trading activities (a) transportation (b) advertising (c) insurance (d) banking
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