Theory question 101
Introduction to CommerceCommerce 2 (essay)
(a) Distinguish between Commerce and Industry.
(b)(i) Explain three activities involved in industry.
(ii) Explain five activities involved in commerce.
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(a) Commerce is concerned with the exchange and distribution of goods and services (trade and aids to trade); industry is concerned with the actual production of goods – extracting, manufacturing and constructing.
(b)(i) Extraction – obtaining raw materials from nature, e.g. mining, fishing, farming; manufacturing – changing raw materials into finished goods, e.g. textiles; construction – assembling materials into structures, e.g. building roads, houses.
(ii) Any five, explained: trade (home and foreign buying and selling); banking/finance; insurance; transport; communication; advertising; warehousing; tourism.
Industry makes goods; commerce distributes them.