Understanding Commerce: A High School Student’S Companion
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About this ebook
This interactive text provides you with knowledge, understanding, skills, and applied techniques required for passing the commerce exam the first attempt. The text is both user-friendly and closely related to current commercial practice, including recent developments. It offers the following features:
Clear presentation and explanation in a straightforward English language
Key concepts covered in the chapter summarized
Key points covered in the chapter summarized
Thought-provoking progress tests after each chapter intended to help students assess their own progress
In-text highlighted application questions intended to help students apply to real-life situations
Dr. Cryford Mumba
Dr. Cryford Mumba read Economics at The University of Zambia and graduated with a Bachelor of Arts Degree. He complemented his Economics degree with the Advanced Diploma in Project Management (Institute of Commercial Management, UK), Diploma in Banking and Financial Services( Zambia Institute of Banking and Financial Services, Zambia), Diploma in Marketing(ICM, UK). He then expanded his knowledge of business through the accountancy program (ACCA, UK) for which he is a finalist. He holds an MBA (MANCOSA, South Africa) with a thesis “Limited Access to Credit among Women Market Traders.” Finally, he holds a PhD in Economics (Cambell State University, USA) with a thesis “Understanding Money Intelligence.” Dr. Mumba is the Proprietor and Chief Executive Officer of Premier college of Banking and Finance, a firm specializing in financial training and consulting. His specialist teaching areas include Financial Mathematics, Statistical Analysis, Corporate Finance, Financial Reporting and Economics. He has written extensively on banking and financial services course. He is the author of Understanding Money Intelligence, Understanding Statistical Analysis, Understanding Accounting and Finance, Understanding Financial Mathematics, Understanding Commerce, and a host of other Banking and Financial Services training manuals. He is also the Editor of The Student Banker Magazine and a columnist on financial matters for Business analysis Newspaper.
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Understanding Commerce - Dr. Cryford Mumba
Copyright 2015 Dr. Cryford Mumba.
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the written prior permission of the author.
ISBN: 978-1-4907-5613-4 (sc)
ISBN: 978-1-4907-5612-7 (e)
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CONTENTS
Preface
Acknowledgements
Dedication
Quotations
GRADE 10 COMMERCE
CHAPTER 1 COMMERCE
• What Is Commerce?
• Key Concepts
• Key Points
• Progress Test
CHAPTER 2 PRODUCTION
• The Purpose Of Production: The Satisfaction Of Wants
• The Meaning Of Production
• Industry And Types Of Industries
• Commerce
• Direct Services
• Direct Versus Indirect Production
• Factors Of Production
• The Meaning Of Division Of Labour
• Division Of Labour And Output
• Disadvantages Of Division Of Labour
• Key Concepts
• Key Points
• Progress Test
CHAPTER 3 LEGAL ASPECTS: THE LAW OF CONTRACT
• Nature Of A Contract
• Types Of Contracts
• Statute Of Limitation Of A Contract
• Elements Of A Valid Simple Contract
• Offer And Acceptance
• What Is An Offer?
• Invitation To Treat
• The Acceptance
• Termination Of An Offer
• Form Or Consideration
• Capacity To Contract
• Genuineness Of Consent
• Legality Of Object
• Factors That May Vitiate Or Affect Validity Of A Contract
• Termination Or Discharge Of A Contract
• Remedies For Breach Of Contract
• Key Concepts
• Key Points
• Progress Test
CHAPTER 4 HOME TRADE: RETAILING
• What Is Retailing?
• Functions Of The Retailer
• Differences Between Retailing And Wholesaling Or Manufacturing
• Factors Necessary For Setting Up A Retail Business
• Types Of Retail Outlets
• Self Service
• Loss Leaders
• Trading Vouchers
• Automatic Selling
• Computer Applications In Retailing
• Key Concepts
• Key Points
• Progress Test
CHAPTER 5 HOME TRADE: WHOLESALE TRADE
• What Is A Market?
• Types Of Markets
• Wholesale Trade
• Functions Of The Wholesaler
• The Ommission Of The Wholesaler
• Types Of Wholesalers
• Types Of Middlemen
• Large Scale–Production: Motive For Expansion
• The Growth Of Large Scale Production
• Advantages Of Mass-Production
• Disadvantages Of Mass-Production
• Limits To Mass-Production
• The Survival Of A Small Firm
• Key Concepts
• Key Points
• Progress Test
CHAPTER 6 DOCUMENTS USED IN HOME TRADE
• Documents Used In Buying And Selling
• Cash And Trade Discount
• Key Concets
• Key Points
• Progress Test
CHAPTER 7 BUYING AND SELLING ON CREDIT
• Defining Credit
• Methods Of Buying On Credit
• Hire Purchase (Hp).
• Advantages Of Hire-Purchase:
• Disadvantages Of Hire Purchase
• Credit Sale Agreements
• Deferred Payments
• Hire Purchase Finance Company
• Measures Taken To Protect The Consumer
• Key Concepts
• Key Point
• Progress Test
GRADE 11: COMMERCE
CHAPTER 8 FOREIGN TRADE
• Definition Of Foreign Trade
• Differences Between Foreign And Domestic Trade
• Reasons For Foreign Trade
• Advantages Of Foreign Trade
• Disadvantages Of Foreign Trade
• Problems Experienced In Foreign Trade
• Documents Used In Foreign Trade
• Methods Of Settlement Or Payment In Foreign Trade
• Balance Of Payments
• Balance Of Payments Accounting Principles
• Components Of Balance Of Payments Accounts
• Balance Of Payments Problems: Surpluses And Deficits
• Terms Of Trade (TOT)
• The Zambia Revenue Authority (ZRA)
• Zra’s Mission Statement And Functions
• Customs And Excise Duties
• Bonded Warehouses
• Middlemen
• Key Concepts
• Key Points
• Progress Test
CHAPTER 9 ORGANISATION OF BUSINESS UNITS
• The Private Sector Of Business
• The Sole Trader: The Main Features Of The One-Man
Business
• Advantages Of The Sole Trader
• Disadvantages Of The Sole Trader
• The Partnership: The Main Features Of Partnership Business
• The Entrepreneurial Function Of The Partnership
• Limited Liability
• The Limited Liability Company
• Private And Public Companies
• Types Of Shares
• Entreprneurial Function In The Corporation
• The Co-Operative Movement
• Advantages And Disadvantages Of Cooperative Societies
• The Public Sector
• Advantages Of State Enterprises
• Disavantages Of State Enterprises
• Forms Of Organisation Of Public Enterprises
• Privatisation And Nationalisation
• The Old Nationalised Industries
• Reasons For Nationalisation
• Privatisation In Zambia
• Forms Of Privatisation
• The Arguments For Privatization
• Key Concepts
• Key Points
• Progress Test
CHAPTER 10 THE STOCK EXCHANGE
• The Stock Exchange
• The Lusaka Stock Exchange
• History Of Lusaka Stock Exchange
• Functions Of The Lusaka Stock Exchange
• Floatation On The Lusaka Stock Exchange
• Advantages And Disadvantages Of Floatation
• Methods Of Issuing Shares To Various Investors
• Methods / Terms Used To Issue Shares
• The Key Players On The Lusaka Stock Exchange
• Some Other Stock Market Terminology
• The Process Of Buying And Selling Shares (Secondary Market)
• Trade Settlement
• Stockbrokers Versus Stockjobbers
• The Benefits Of Investing In Shares
• Benchmarks Used To Assess The Company’s Ability To Pay High Dividends
• Risks Of Being A Shareholder
• The Stock Exchange Indices
• The Lusaka Stock Exchange Publications
• Factors Affecting The Performance Of The Lusaka Stock Exchange
• Costs Of Share Issues
• Share Repurchases
• The Securities And Exchange Commission: Investor Protection And Stock Market Regulation
• Self Regulation By Lusaka Stock Exchange
• Key Concepts
• Key Points
• Progress Test
CHAPTER 11 BANKING AS AN AID TO TRADE
• Financial Intermediaries
• Types Of Financial Intermadiaries
• Exchange: The Barter Economy
• Exchange With Money
• Money In The Zambian Economy
• Functions Of Money
• The Attributes Of Money
• Commercial Banks
• What Is A Bank?
• The Main Types Of Banks
• The Main Banking Services
• Means Of Payments:
• Payments By Cheque: A More Detailed Discussion
• Certified Cheque
• Traveller’s Cheque
• Blank Cheque
• Cheque Payments: A Detailed Discussion
• Parties To A Cheque
• Types Of Cheques
• Cheque Payment
• Cheque Crossing
• Holders In Cheque Transactions
• Rights Of A Holder In One Course
• Holder For Value
• Electronic Cheque Clearing System In Zambia
• The Collateral Security
• Bank And Customer Relationship
• Rights Of A Customer Towards The Banker
• Duties Of A Customer To The Bank
• Rights Of A Banker Towards The Customer
• Duties Of A Bank To The Customer
• The Central Banking
• Central Banking Principles
• Functions Of The Bank Of Zambia
• Key Points
• Key Points
• Progress Test
GRADE 12: COMMERCE
CHAPTER 12 INSURANCE AS AN AID TO TRADE
• What Is Insurance?
• Purpose Of Insurance
• Principles Of Insurance
• Insurable And Non Insurable Risks
• Types Of Insurance Covers
• Types Of Insurance Policies
• Procedures For Taking Out An Insurance Policy
• Procedures Followed In Making A Claim
• Insurance Brokers
• Key Concepts
• Key Points
• Progress Test
CHAPTER 13 COMMUNICATION AS AN AID TO TRADE
• What Is Communication?
• Postal Services
• Telecommunication Services
• Telephone Systems
• Mobile Phones:
• Video Conferencing
• Chart Rooms Or Written Discussion
• E–Commerce
• Fax Or Facsimile
• Pagers
• E–Mail
• The Internet
• Telex
• Key Concepts
• Key Points
• Progress Test
CHAPTER 14 TRANSPORT AS AN AID TO TRADE
• What Is Transport?
• Importance Of Transport
• Types Of Transport
• Road Network
• Rail Network
• Road Vs Rail
• Improvement: Road Transport
• Airports
• Advantages Of Air Transport
• Disadvantages Of Air Transport
• Sea Transport
• Miscellaneous
• 14.7 Ports
• Types Of Ports
• Advantages Of Sea Transport
• Advantages Of Sea Transport
• Choice Of Mode Of Transport To Use (Hire)
• Key Concepts
• Key Points
• Progress Test
CHAPTER 15 WAREHOUSING AS AN AID TO TRADE
• What Is Warehousing?
• Importance Of Warehousing
• Types Of Warehouses
• Key Concepts
• Key Points
• Progress Test
CHAPTER 16 ADVERTISING AS AN AID TO TRADE
• What Advertising Is And Its Purpose
• Benefits Of Advertising
• Dangers Of Advertising
• The Role Of Advertising Agencies
• Code Of Advertising Practice
• Choice Of Advertising Media
• Types Of Advertising Media
• Newspaper Advertising
• Radio Advertising
• Television Advertising
• Magazine Advertising
• Sign Advertising
• Direct Advertising
• Miscellaneous Advertising
• Concluding Remarks
• Key Concepts
• Key Points
• Progress Test
CHAPTER 17 PRODUCTION AND COMMERCE VERSUS ENVIRONMENT
• The Definition Of An Environment
• Effects Of Production On The Environment
• Negative Effects Of Production On The Environment
• Possible Solutions To The Environmental Effects
• Environmental Management In Zambia
• Key Concepts
• Key Points
• Progress Test
ABOUT THE AUTHOR
Dr Cryford Mumba read Economics at The University of Zambia and graduated with a Bachelor of Arts Degree. He complemented his Economics degree with the Advanced Diploma in Project Management (Institute of Commercial Management, UK), Diploma in Banking and Financial Services (Zambia Institute of Banking and Financial services, Zambia), Diploma in Marketing (ICM, UK). He then expanded his knowledge of business through the accountancy program (ACCA, UK) for which he is a finalist. He holds an MBA (MANCOSA, South Africa) with a thesis "Limited Access to Credit Among Women Market Traders. Finally, he holds a PhD in Economics (Cambell State University, USA) with a thesis
Understanding Money Intelligence".
Dr. Mumba is the Proprietor and Chief Executive Officer of Premier college of Banking and Finance, a firm specializing in financial training and consulting. His specialist teaching areas include Financial Mathematics, Statistical Analysis, Corporate Finance, Financial Reporting and Economics. He has written extensively on banking and financial services course. He is the author of Understanding Money Intelligence, Understanding Statistical Analysis, Understanding Financial Mathematics, Understanding Accounting and Finance and a host of other Banking and Financial Services training manuals. He is also the Editor of The Student Banker Magazine and a columnist on financial matters for Business analysis Newspaper.
He resides in Lusaka, married and is a supporter of Arsenal Football Club. His hobbies include reading and writing.
PREFACE
If you have bought or are thinking of buying this book you will want to know what you can expect it to do for you and how you ought best to use it. The book has been developed from practical understanding of commerce. It covers the commerce syllabus in totality required for Zambian commerce examination and other courses.
The guiding principles for this book are that it is user-friendly
with numerous worked examples and related to the current commercial practice. To this end a variety of real life examples from economics and business have been used. One difficulty encountered in the production of this book is that some students have little or no practical experience of the subject. Therefore, a step-by-step explanation has been adopted which has made me guilty of one offence: over simplification
. The book can be used with confidence because it is designed to be user-friendly, interesting to read and to stimulate learning by the use of clear examples with detailed solutions. The book seeks to set the subject of commerce as enjoyable as any other subject. In the text I have used he
to cover both sex and no offence is intended. This has been done to improve clarity.
At this juncture I should sound some caution. The book provides you with the knowledge and the skills in applying it which you need to pass. However, if you aspire to excel, perhaps even to win a place or a prize, you cannot expect to rely on one book alone! The highest marks are given to those candidates who display evidence of the widest reading absorbed by critical mind, a combination, that is, of extensive information and of a highly intellectual appraisal of it. No single book can provide either of these things. What it can do, however, is to provide an adequate amount of information and acceptable competence in handling it. No doubt the commerce course will include matters which I have omitted, and some teachers may not consider all the items I have covered as appropriate. I do hope, however, that a large proportion of the text will be helpful to students of commerce.
It should be stressed that this book is written to teach you and not merely to tell you. The more work and effort you put into all your studies, the greater the chance of success. Be determined, have a positive attitude and all the very best in your future courses and exams.
Dr. Cryford Mumba
14th March 2014
ACKNOWLEDGEMENTS
I am emotionally attuned and profoundly indebted to my Great Company - PREMIER COLLEGE, for the opportunity of exposure and experience enabling me to venture into this humble project. This text grew out of the desire to contribute in a small way to the teaching of the subject of commerce which I hold dear to my heart.
I owe a great intellectual debt to my brilliant former teachers at all levels in my educational radar. My heartfelt thanks to Mrs Ndalamei and team at the Curriculum Development Centre (CDC) for the review of the manuscript and insightful suggestions.
Finally, I would like to express my gratitude to Rachael Nyirongo for her efficiency and cheerful disposition in typing the manuscript. Cheers to the Trafford Team.
I shall greatly appreciate guidance/suggestions for further enrichment of the compendium in course of time, both from the teachers and students of the subject.
DEDICATION
This book is dedicated to:
• My mother Janet Mumba and my late father Nelson Mumba for double gifts- life and life support (education) though themselves did not reach higher levels in education radar.
• My wife Nivea Mumba for ensuring that no paper is thrown away no matter how tattered it looks and providing an environment conducive to the writing of this book.
• Students and teachers who will use it for it is theirs.
QUOTATIONS
"I am a beau in nothing but my books". Adam Smith (1723-1790)
A man who kills another man destroys a living creature, but a man who kills a good book kills reason itself
. unknown.
"If people do not believe that Mathematics is simple, it is only because they do not realize how complicated life is." John Louis von Neumann (1903-1957)
GRADE 10 COMMERCE
GENERAL OUTCOME(S):
• Develop an understanding of commerce to an individual, nation and the world at large
• Acquire commerce knowledge, skills and values in order to pursue a career in running business ventures
• Demonstrate an understanding of commercial activities in our everyday life in the communities we live in
• Create an understanding of Production and its factors
• Develop an understanding of Home Trade and its sub-divisions
KEY COMPETENCES:
• Demonstrate ability to draw aids to trade diagram
• Demonstrate ability to calculate trade and cash discounts
CHAPTER 1
COMMERCE
We live in a commercial world, a world of trade and industry. Civilization brought about specialization which necessitated exchange and exchange forms the backbone of commerce, that is, trade and aids to trade.
After studying this chapter you should be able to:
• Define the term commerce
• Define the term trade
• List the aids to trade
• Explain the roles of aids to trade
• Draw the diagram of commerce
As you sat for breakfast this morning drinking a cup of coffee, you were using products from distant places. The coffee itself was probably produced in Brazil. The brew was made with water that perhaps had been delivered in pipes manufactured in Pennsylvania and purified with chemicals produced in Delaware. The sugar for the coffee was produced in Mazabuka. Perhaps you used artificial creams made from soy beans grown in Chisamba. Possibly, your coffee was poured in a cup made in New York State and stirred with a spoon manufactured in Taiwan from Japanese stainless steel which used Canadian nickel in its production. All this was for one cup of coffee. Imagine the far more complex story of where a car or computer originates! The above illustration forms the backbone of commerce. You are able to get all the necessary things for your coffee at the right time, right place and price because of commerce.
Having described the process the question what is commerce remains.
WHAT IS COMMERCE?
Commerce is trade and aids to trade. Trade is the buying and selling of goods and services, usually at a profit. Trade may either be home through wholesalers and retailers or foreign through import and export or a combination of both. For instance, B.S Wholesalers located in Mazabuka may order spoons from Taiwan, sell to retailers at a profit and the retailers sell to the consumers. In fact, in practice this is what usually happens: one good goes through both home and foreign trade (unless if it is produced and consumed locally).
Aids to trade, sometimes called commercial services are those services that smoothen the wheels of trade. Without aids to trade, trade would not flourish. Aids to trade include the following: Banking, Transport, Advertising, Communication, Warehousing and Insurance.
To illustrate the importance of aids to trade, consider the cup of coffee (the cup itself). The cup you used may be from New York State. The producer of that cup needed banking to provide currency to pay workers, pay suppliers of the raw materials he uses, get loans and overdrafts, use cheques, for security of his money and his valuable items and host of other services that banks can provide to a businessman.
For the cup to reach you, the producer of cups needed transport either by air, land or water. He needed transport also to transport workers to and from work, raw materials to the firm. Transport is also important as it allows sales representatives, board of directors etc. carry out their activities effectively. Additionally, transport widens the market for cups for the producer as he can sell anywhere in the world regardless of distance.
Business has a lot of risks. These may lead to bankruptcy. These losses may arise from fire, thefts, loss of life, accidents, breaking of goods in transit etc. The producers need insurance to pool the risks arising from such losses.
A producer usually does not produce a single cup; it would be very expensive to produce! Instead thousands and thousands are produced in anticipation of demand. He needs warehousing to store these cups and a host of other things like machinery; raw materials etc. so as to protect them from thieves, direct sunlight, rainfall (bad weather).
Of course, the cups are produced for consumers worldwide who need to know what is on the market. The producer needs advertising to let consumers know and buy his cups. He can do this through magazines, radio, television, newspapers, trade journals and website.
However, the story is not yet complete, after seeing the advertisement; some consumers may be interested in buying those cups. These consumers need not travel from Zambia to United States of America. Through communication they can get in touch with the producer and make bargain. This may be done through E-mail, telephone, telefax, letters etc.
A more detailed discussion of aids to trade is reserved for appropriate chapters of this book. The diagram summaries all what commerce is. In short, commerce is concerned with how the modern business world works.
18.jpgFig 1 commerce
KEY CONCEPTS
KEY POINTS
1. Commerce is trade and aids to trade
2. Trade is the buying and selling of goods and services at a profit
3. Trade is divided into domestic and foreign.
4. Aids to trade are commercial activities that make trade smooth. These includes banking, transport, communication, warehousing, advertising and insurance (BATWIC)
5. Because of commerce we are able to enjoy goods services produced in distant places without much trouble.
PROGRESS TEST
Before you begin your study of the next chapter you should go back to the start of this one and check that you have achieved the learning objectives. If you do not think that you understand the aim and each of the objectives completely, you should spend more time rereading the relevant sections.
You can test your understanding of what you have learnt by attempting to answer the following questions. Check all your answers with the chapter text.
1. What is commerce?
2. What do you understand by commercial activities?
Show why commercial activities are essential to those engaged in manufacturing industry.
3. Mr T.N. Chimuka is a farmer engaged in growing maize, sunflower, cotton, groundnuts and beans. Show why banking, transport and warehousing are important to Mr Chimuka.
4. What are the main differences between import and export trade and wholesale and retail trade?
CHAPTER 2
PRODUCTION
Although some countries are richer than others, the resources of every country are limited. Choices must be made. Moreover, every economy is specialized to some degree. In every economy, therefore, some mechanism is needed to answer the fundamental questions raised by specialization and by the need to make choices:
• What goods and services will be produced? For example, should a farmer use his land to produce maize or sunflower!
• How will these goods and services be produced? This is concerned with the technique of production to be used in producing the named good. A choice is made between capital intensive and labour intensive methods.
• For whom will the goods and services be produced? Once goods are produced who will consume them? This is concerned with who will use the goods once they have been produced. Since producers may aim is to maximize profits for themselves at best, they will only produce those goods which has a ready market.
After studying this chapter you should be able to:
• Define the term production
• Explain the factors of production
• Discuss the methods of production
• Differentiate the types of production
• Investigate the braches of production
• Draw the diagram of production
• Explain the term industry
• Identify classes of industry
• List the direct services
• Explain division of labour
• Explain the advantages and disadvantages of division of labour?
2.1 THE PURPOSE OF PRODUCTION: THE SATISFACTION OF WANTS
The aim of production is to satisfy people’s wants. When each family had to satisfy its wants by its own efforts the extent and strength of its wants decided the activities of the group. Man’s earliest wants were for food, cloth and shelter, and in early days it might take all his time and energy to provide himself with even a bare minimum of these things. With the development of civilization people’s wants multiplied, but few people nowadays satisfy their wants directly. The use of money makes it possible for them to work for money payment and afterwards to use the money to buy the things they desire which other people have made. Under present conditions of economic organization, a vast range of goods is produced and new commodities are constantly being introduced. People range in production, then, in order to earn the means by which they will be able to satisfy their own wants, and at the same time they are helping to satisfy the wants of other people. The same people are thus at the same time both producers and consumers, and so production can be regarded either from the point of view of the effort involved or from the point of view of the satisfaction of wants.
2.2 THE MEANING OF PRODUCTION
In everyday speech the word production is often used as if it were synonymous with creating something. A moment’s thought will be sufficient to realize that the making or manufacturing of some commodity – for example, a motor car – means no more than putting together quantities of many different kinds of materials. Even processes that involve chemical reactions merely change the form of substances and do not actually create anything. However, production is not restricted to the manufacture of commodities; it also takes the expression to include the provision of services such as those of teachers, doctors, lawyers, actors, accountants, comedians, bankers, and the list is endless. Since all these people aim at satisfying other people’s wants just as much as those in a Milling Company, their work can also be considered to be productive.
Similarly, the work of distribution (commerce) – wholesale and retail trade, banking, transport, etc. can justifiably be considered to be part of the production process, for production is not complete until the commodity that has been manufactured has actually reached the people who desire it.
Thus, production may be defined as the provision of goods and services to satisfy human wants and needs. Production, is therefore undertaken to satisfy human wants and needs. It covers commerce, industry and direct services.
2.3 INDUSTRY AND TYPES OF INDUSTRIES
An industry is a mechanism through which goods and services are produced by turning inputs into output through a conversion process so that people’s wants are satisfied. Since there are many wants that need to be satisfied, there are different types of industries to address those wants. The following gives a broad classification of the various types of industries:
• Extractive Industry: this is often known as the primary production. Extractive or primary industries are those concerned with all types of farming, agricultural, pastoral, and lumbering, all kinds of mining and quarrying, and fishing. Primary production includes the oldest occupations and provides Man with food and with raw materials required for manufacturing industry.
• Manufacturing Industry: This is also called secondary industry. It is an industry concerned with changing raw materials into finished goods. For example, a Milling company converts maize seed (a raw material) into mealie meal (a finished product).
• Tertiary Industry: This is also called Commercial services. It includes all kinds of services, e.g. transport, banking, insurance, etc. These are concerned with the movement of goods and so include transport, all kinds of trade – wholesale and retail, import and export – together with banking, insurance and advertising.
2.3.1 COMMERCE
Commerce is trade and aids to trade. Trade is the buying and selling of goods and services, usually at a profit. Trade may either be home through wholesalers and retailers or foreign through import and export or a combination of both. Commerce is part and parcel