introduction to commerce for school students dr.s.manikandan
DESCRIPTION
This slide is designed for simple understanding about commerce to school students who do not have commerce subject.TRANSCRIPT
Introduction to Commerce
Dr. S.MANIKANDAN., M.Com., M.Phil., M. Ed., Ph.D
ASSOCIATE PROFESSORPG & RESEARCH DEPT. OF COMMERCE
GURU NANAK COLLEGEVELACHERY, CHENNAI - 42
Barter system
• Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange
GOODS FOR GOODS
SERVICE FOR SERVICEOR
GOODS FOR SERVICE
EVOLUTION OF MARKET
FROM BARTER TO MONEY
inefficiencies of barter system 'double coincidence of wants' problem.
• GOLD & SILVER first medium of exchange
monetary system
• monetary systems developed in most countries
• money replaces Barter as the method of exchange
• money - used to intermediate the exchange of goods and services
• Medium of exchange = MONEY
TRACE OF TRADE IN INDIA
3300 BC, Northern Indiasaw the beginnings civilizations
Mohan Jo daro, and the Harappan civilization, situated along the river Indus
for the first time, humans in India used a market saw the birth of trade
Vedic Aryans Civilization
a system of structured society was formed according to occupation, into • Brahmins(learned men)• Kshtriyas(warriors, kings)• Vyshyas(Traders)• Shudras(workers).
BUSINESS
• "business" relates to the state of being busy by an individual or group of people doing commercially viable and profitable work.
• A business is an organization involved in the trade of goods, services, or both to consumers
Forms of business ownership
• Sole proprietorship•Partnership•Company
Sole proprietorship
• owned by one person for-profit
Partnership
• owned by two or more persons
Company
• has a separate legal personality from its members with limited liability.
WHAT HAPPENS IN INDUSTRY ?
PRODUCTIONEXCHANGECONSUMPTION
PRODUCTION
PRODUCTION
RAWMATERIALS
PROCESS FINISHED GOODS
PRODUCTION
RAWMATERIALS
PROCESS FINISHED GOODS
EXCHANGE
EXCHANGE
FINISHED GOODS MONEY
CONSUMPTION
FINISHED GOODS CONSUMERS
BUSINESS CYCLE
CAPITAL/INVESTMENT
RAW MATERIAL
PROCESSFINISHED GOODS
REVENUE
AIDS TO TRADE
finance transport insurance
middlemen warehousing advertisement
AIDS TO TRADE
BANKSAccepting depositsLending loans
BANKS IN INDIA
AIDS TO TRADE
TRANSPORTROADWAYS WATERWAYSAIRWAYSRAILWAYS
AIDS TO TRADE
Risk is removed againstTheftNatural calamities etc.,
AIDS TO TRADE
All goods produced cannot be sold immediatelyStored in godownsKept of future demand
AIDS TO TRADE
WHOLESALERSRETAILERSAGENTS
AIDS TO TRADE
MARKETERSAdvertisementSales promotion
COMMERCE
• Commerce includes all those activities, which directly or indirectly facilitate the exchange.
• It is exchange of goods and services
Goods – pen, notebook, clothes etc.,Services – hospital, school etc.,
COMMERCE
• BUSINESS – Both Trade and Aids to Trade• INDUSTRY – Place of manufacturing/ process• TRADE – Buying and selling of goods &
services• AIDS TO TRADE – Helpers
BUSINESS + INDUSTRY = COMMERCE
THUS COMMERCE….
Commerce
BUSINESS
INDUSTRY
TRADE
AIDS TO TRADE
Importance of trade and commerce
• tries to satisfy increasing human wants
• helps to increase our standard of living
• links producers and consumers
• generates employment opportunities
Importance of trade and commerce
• increases national income and wealth
• helps in expansion of aids to trade
• helps in growth of industrial development
• encourages international trade
TIME FOR QUESTIONS