Meaning

Commerce means activities that directly or indirectly help in taking goods from the place of production to the place of consumption.

Functions of Commerce:

1. Removing the hindrance of persons:

Trade removes the hindrance of persons by creating a link between the producers and consumers.

2. Removing the hindrance of place:

Transport removes the hindrance of place by removing a place gap between the producers and consumers.

3. Removing the hindrance of time:

Warehousing removes the hindrance of time by removing the time gap between the production and consumption.

4. Removing the hindrance of finance:

Banking removes the hindrance of finance by helping the buyers and sellers in making and receiving payments and providing them credit facilities.

5. Removing the hindrance of risk:

Insurance removes the hindrance of risk by providing protection and compensation to the insured against various types of risks.

6. Removing the hindrance of knowledge:

Advertising removes the hindrance of knowledge by making people aware about the product and related particulars.

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