Theory question 101
Introduction to CommerceCommerce 2 (essay)
(a) Define commerce.
(b) Explain six functions of commerce in an economy.
Show the model answer
Model answer
(a) Commerce is all activities involved in the buying, selling and distribution of goods and services from producers to consumers, i.e. trade and aids to trade.
(b) Any six, explained: links producers and consumers; encourages mass production by widening markets; creates employment; raises standard of living through variety of goods; bridges gap between production and consumption through transport and warehousing; reduces risk through insurance; provides finance through banks; creates awareness through advertising; links nations through foreign trade; earns government revenue.
Explanation
Each function should show how commerce helps the economy.