State the characteristics of Commerce.
The work or service through which goods suitable for production are sent to the factory and the produced goods are delivered to the consumers, those works or services as a whole are called commerce. Commercial activity is needed to accomplish these two tasks of production and distribution of consumer goods. The characteristics of commerce are:
1. Removal of barriers :
Commerce removes personal, spatial, temporal, financial, and risk barriers.
2. Facilitates distribution:
Performs exchange, distribution, and other ancillary functions of commercially produced goods and services. i.e. production and one of the characteristics of commerce is its fair distribution.
3. Nature of work:
Although commerce performs secondary functions to business, the success of the industry depends on trade to a large extent. Thus, helping the industry in extending is also one of the characteristics of commerce.
4. Building infrastructure :
Building infrastructure for buying and selling goods and industry is a significant feature of commerce.
5. Providing information :
Providing information to people is a significant feature of trade. With the help of commercial advertisements and sales, the information regarding sales and purchase of goods reaches the people living in society.
Important Questions from this Chapter:
- Difference between Business and Profession
- Economic objectives of business
- Business risk and its economic objectives
- Characteristics of Commerce
- Classification of Industry with examples
- Short Notes on Warehousing and Advertising
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