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InterviewSolution
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What are the characteristics of Commerce? |
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Answer» 1. Economic Activity: Commerce is an economic activity because it consists of activities which are undertaken for earning profits. A trader buys goods with the aim of selling them at a profit. 2. Exchange of Goods and Services: Commerce involves exchange and distribution of goods and services. Goods may be purchased or produced for sale. Commerce comprises both trade and aids to trade. 3. Profit Motive: The motive of commercial activities is to earn profits. Any activity which does not have the aim of profit will not be a part of commerce. 4. Regularity of Transaction: An isolated transaction does not imply commerce. 5. Creation of Utilities: Commerce creates several types of utilities. It creates place utility by carrying goods to the place where they are needed. It makes goods available as and when demanded thereby creating time utility. By creating these utilities commerce helps to increase the volume of trade. |
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