Theory question 101
Introduction to CommerceCommerce 2 (essay, answer five questions only)
(a) Distinguish between trade and commerce
(b) Describe five different activities engaged in by people in commercial occupations
Show the model answer
Model answer
(a) Trade is the buying and selling of goods and services; commerce is wider – it covers trade plus all the aids to trade (transport, banking, insurance, warehousing, advertising, communication) that help distribute and exchange goods.
(b) Any five, described: trading (wholesale, retail, import, export); transport; banking; insurance; warehousing; advertising; communication; tourism.
Explanation
Trade is part of commerce.