Meaning and Functions of Commerce

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

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.

Check your understanding

2023-07-28T13:23:42+00:00