Classwork Exercise and Series (Commerce-SS1): Introduction to Commerce

SS 1 Commerce First Term Week 1

 

Topic: Introduction to Commerce

CONTENT

• Meaning of commerce
• Scope of commerce
• Functions of commerce
• Characteristics of commerce

Meaning of Commerce

Commerce is a branch of production that deals with the distribution; exchange of goods and services and all activities that assist or facilitates trade. Commerce is defined as the study of all the activities concerned with buying and selling and distribution of goods and series.

The central focus of commerce is exchange in commercial activities since exchange would concentrate on the transfer of goods and services from producer to the final consumer. Commerce therefore consists of trade and other activities that facilitate trade.

Scope of Commerce

The scope of commerce may be seen as embracing the totality of all activities which ensures the distribution and exchange of goods and services for the satisfaction of the people. It should be note that commerce embrace trade and aids to trade.

The scope of commerce illustrated below:

 

Functions of Commerce

1. It offers employment opportunities to a large number or people
2. It links buyer and seller together to do business without physical contact.
3. It helps to create wealth for nations as duties are charge on either imported or exported goods
4. It facilities the exchange of goods and services through transportation
5. It leads to the improvement of standard of living and quality of life of the people.
6. It facilitates mass production of goods and thus, people all over the world can enjoy goods and services within and outside their countries.

Characteristics of Commerce

1. It is an economic activity because it is undertake to earn profit.
2. It involves the exchange of goods and services for profit.
3. The primary objective is to earn profit
4. It involves the creation of time and place utility for the products.
5. It consists of regular transaction.

Tests and Exercises

1. Commerce is the study of all activities concerned with buying, selling and of goods and services (a) promotion (b) distribution (c) purchasing (d) Advertising. Answer: Distribution
2. ________ of commerce is seen as embracing the totality of the distribution and exchange of goods and services (a) scope (b) function (c) characteristic (d) specialization. Answer: Scope
3. The central focus of commerce is _______ (a) exchange (b) distribution (c) buying and selling (d) its functions. Answer: Exchange
4. All are functions of commerce except (a) raising of capital (b) transport (c) creation of nation’s wealth (d) regular transaction. Answer: raising of capital
5. Commerce is basically divided into trade and ______ (a) specialization (b) occupation (c) auxiliary trade (d) Auxiliary to distribution. Answer: Auxiliary trade