Q.7 Attempt the following.
1) What do you mean by commerce?
2) What is the meaning of export trade?
3) State the role of auxiliaries to trade in trading activities.
4) What are the different types of secondary industries?
5) State the types of human activities.
6) Describe the scope of internal trade.
7) How does banking and insurance help trading?
Q.8 Answer the following.
1) Give comparative analysis of business, profession and employment.
2) Define business. Explain its features.
3) Describe various objectives of a business.
4) Explain the importance of profit in business,
Answers
Answer:
1 commerce is the conduct trade among economic agents generallycommerce refers to exchange the goods service or something of value between businesses or entities
Answer:
2. Exports are a function of international trade whereby goods produced in our country are shipped to another country for future sale or trade.
3. Activities which are meant for assisting trade are known as auxiliaries to trade. These activities are generally, referred to as service because these are in the nature of facilitating the activities relating to industry and trade.
Two business activities which are auxiliaries to trade are:
1) Transport and communication production of goods generally take place in particular locations.
2) Warehousing goods are not sold or consumed immediately after production. It helps business firms to overcome the problem to storage of goods when needed.
4.answer:- A secondary industry is an industries that takes raw materials as input and creates finished product as output. The following are illustrative example of a secondary industry :-
1)construction :- like construction of houses and buildings.
2) Heavy industry :- construction of large facilities such as hydroelectric dam, aircraft etc.
3) food industry :- for production of food and beverage products.
4) Fashion :- The design, production and marketing of clothes, footwear and other items that people wear.
5)craft:- production by hand such as homemade traditional jewelry.
5.Answer: Human activities are functions, tasks or work done by human being overtime for achieving certain purpose. Following are the types:-
1)primary activities :- This involves extracting of raw materials directly from the earth. Ex: farming, fishing, mining.
2)Secondary activities :- This involves processing of raw materials into useful products. Ex: processing of steel and iron from iron ores and coffee pulping.
3)Tertiary activities :-This involves provision of services that are needed in the society. Ex:trade, education etc.
6.Answer: Internal or home trade is dealing with goods and services within the boundary of the country. The trader have very limited formalities in home trade and payment is to be done within the country.
Scope of trade:-
1) Wholesale trade is purchasing of goods from manufacture in large quantities according to the demand of the customers.
2)Retail trading is purchasing of goods from wholesalers and sell them directly to customers.
3) Large scale trade is purchasing of goods in bulk and providing them to customers.
4) Fixed trade means where the place is fixed to sell the goods to consumers like fixed shops.
5) Departmental stores are those which are divided into several departments in a particular place. Like malls etc.
7.Answer: Banking:- It provide credit facility to industries and trading firms.
The goods and services produced by the manufacturer and sold to buyer in exchange is circulated by the banking branch of commerce.
The banks helps the buyers and sellers in making and collecting payments. Now businessman can send money from one place to the other in the form of bank draft, cheques etc. Bank give loan, credit facility to a businessman.
- Insurance :- It provide coverage from various types of risk.
There are different types of risks which a businessman has to face. The insurance branch of commerce helps in removing the hindrance of risk by providing protection and compensation to the insured. The common types of risks covered by an insurance company are damage of goods during transit, storage, by fire, flood etc.