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Answer» Commerce: - Commerce can be termed as a combination of trade and auxiliary services that help trade.
- Trading is not always an independent activity. A trader may need various services such as banking, insurance, transportation, communication, warehousing, commission agents, etc. All these services are called auxiliary services.
- When a trader starts making use of auxiliary services we can say he has risen above trading and has entered into commerce.
Characteristics of Commerce: - Trade is a part of commerce. In other words commerce is a super set.
- Commerce is an economic activity.
- Commerce includes auxiliary services such as banking, insurance, transport, etc. that help to trade.
- Commerce increases time and place utility of goods.
- Auxiliary services are demand oriented yet continuous in nature.
- If auxiliary services are available at reasonable prices, goods can be supplied to customers at fair price.
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