Back to: BUSINESS STUDIES JSS1
Welcome to class!
In today’s class, we will be talking about the introduction to commerce. Enjoy the class!
Introduction to Commerce
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 transportation, warehousing, banking, insurance etc. All these supporting activities are called aids to commerce.
A commercial activity involves the production of goods and provision of services. For example, the productions of milk, biscuit, a 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 trade with other countries in the world. It is made up of import and export.
Importance of commerce
Importance of commerce include the following:
- Commerce makes a person become an entrepreneur.
- It helps a country to develop faster.
- It develops the banking system
- Commerce provides employment opportunities
- It helps in the transporting of goods.
- It creates a link between the manufacturers, buyers and sellers.
Activities which aids commerce
The activities include:
- Banking: It deals with the finances of trading activities.
- Insurance: It deals with the 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.
In our next class, we will be talking more about the Division of Commerce. We hope you enjoyed the class.
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