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.