Write a note on interrelation of commercial activities copyright
It is the nucleus of commerce because all business activities revolve around or exchange.
It is the nucleus of commerce because all business activities revolve around or exchange. Commerce includes the exchange of goods and services along with activities viz. With the advent of money, this process became more convenient for both the sellers and buyers. Trade represents both the side of demand and supply where both the parties know what is demanded and what is to be supplied. In the processing of crude oil we will get kerosene, petrol, gas and diesel, etc. Majorly the activities are transportation, banking, insurance, advertising, warehousing, etc. Engineering and architectural skills play an important part in construction industry.
Productions of goods and services is meaningless unless they are distributed among the consumers. Trade can be done between two parties or more than two parties.
This industry creates form utility in goods by making them suitable for human use.
The production technology is simple and machinery used is inexpensive. The retailer will then sell to the ultimate consumer. Related Differences. Industry involves production of goods and services whereas commerce is concerned with the distribution of goods and services.
No doubt nature, climate and environment play an important part in these industries but human skill is also important. A small scale unit has the disadvantage of lower production and comparatively higher cost of production.
Interrelationship vs relationship
Productions of goods and services is meaningless unless they are distributed among the consumers. These units need heavy. Commerce: All those activities which are connected with taking goods and services from producers to users come under the purview of commerce. A business, on the other hand, is working for himself and aiming at earning profit out of it. These are ancillary services and are called aids to trade. Economics is a study of human beings as consumers and producers and it has a much wider scope than commerce. Though both look similar yet there is a difference between the two. In short, it can be said that commerce is the branch of business that helps to overcome all the hindrances that arise in the facilitation of exchange. An enterprise may produce materials which will further be processed by yet another concern for converting them into finished goods. Industry: Industry is concerned with the making or manufacturing of goods. These industries use the products of other industries such as cement, iron, bricks and wood, etc. Whereas in commerce only the demand side is known i. Whereas the commerce is more economical in nature because of the involvement of several parties whose primary aim is to generate the revenue. Large scale units are in a position to use latest methods of production and economise on various inputs. Trade is generally done to satisfy the need of both the seller and the buyer which is more of a social perspective.
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