Commerce Form 5 Topic 1 Scope of Commerce Notes PDF Download
SCOPE OF COMMERCE – COMMERCE NOTES FORM 5
DEFINITION OF COMMERCE
Commerce is the subject which deals with exchange and distribution of goods and services in order to satisfy human needs or wants.
Commerce is a branch of production which concerned with exchange and distribution of goods and services from the producer to the consumer i.e. from the point of production to the profit of consumption.
Commerce is also known as “BUSINESS ECONOMICS” that means it is an art of economic activities which is mainly concerned with the exchange and all other activities which facilitate such exchange.
Exchange – is the process of buying and selling of goods and services
Distribution- movement of goods and services from where they are produced or found to where they are needed in order to satisfy human needs or wants.
THE MEANING OF SCOPE OF COMMERCE
The scope of commerce means area of study covered in commerce. It comprise the study of all activities involved in the transfer (distribution) of goods and services from producer to consumer.
These activities include trade, transportation, communication, advertising, warehousing, banking and insurance,
The scope of commerce therefore covers the following………
- A study of trade, which is the mainly activity in the distribution and
- A study of auxiliary service (aids to trade) that make trade
- A study of how best trade and aid to trade could be organized so as to satisfy the needs of consumer in the possible and most efficient way.
The scope of commerce can be illustrated by the chart below which shows the trade and Aids to trade.
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