Let’s Discuss About Some Purposes Of Commerce
“Commerce has broadly two types of functions: Modern and Traditional Modern functions are related with production, marketing, accounting etc. Traditional functions basically deal with the elimination of hindrances, which obstruct smooth movement of goods from producers to consumers. ”
Commerce has broadly two types of functions: Modern and Traditional Modern functions are related with production, marketing, accounting etc. Traditional functions basically deal with the elimination of hindrances, which obstruct smooth movement of goods from producers to consumers.Actually, it is the ultimate purpose of commerce to reduce the distance between the producers and the customers. Any hindrance that takes away the consumers from the producers is eliminated using the different processes involved in the practical science called commerce. This in fact is one of the main aims of any company.
Trade can be defined as that process which ensures the safe delivery of different kinds of products from the source to the end (consumers). The producer cannot come into direct contact with the consumers, so there should be some channel, which has to facilitate the transmission of goods.
All this is not possible without suitable and varied means of transportation. Transportation can be said to carry ideas and intentions to the people and has considerably contributed to the development of civilization.
Man from the beginning has always tried to find out some means of transporting himself from one place to another. It would not be an exaggeration if one says that history of civilization is the history of transport and commerce.
It gives place and time utility to goods by removing them from the source of production to the consumers. It increases the mobility of labor and capital. In addition to this prices also get regulated in this way and thousands of people get employment to earn their livelihood.
Whatever the type of production, a time interval is sure to creep in between the produced goods and their sale. The trader purchases goods from the producers and then sells those goods to costumers. After all, it’s quite natural that considerable time is required to make money out of production. There is a need to finance trade activities and banks help traders in many ways.
Commerce basically involves the exchange of money, lending of money and transmitting of money. Businessmen who want to succeed ought to know about the intricacies involved in this interplay of goods and money.
Author - DeeKay
This article was created by DailyOjo staff. Report Spam/Abuse