money. Business activities cannot be undertaken unless funds are available for acquiring assets, purchasing raw materials and meeting other expenses. Necessary funds can be obtained from bank. Thus, banking helps business activities to overcome the problem of finance.
iv. Insurance Business involves various types of risks. Factory building, machinery, furniture etc, must be protected against fire, theft and other risks. Materials and goods held in stock or in transit are subject to the risk of loss or damage.
Employees are also required to be protected against the risks of accident and occupational hazards. Insurance provides protection in all such cases. On payment of a nominal premium, the amount of loss or damage and compensation for injury if any, can be recovered from the insurance company. commerce - - .
. PM v. Warehousing Usually, goods are not sold or consumed immediately after production. They are held in stock to make them available as and when required.
Special arrangement must be made for storage of goods to prevent loss or damage. Warehousing helps business firms to overcome the problem of storage and facilities the availability of goods when needed. Prices are thereby maintained at a reasonable level through continuous supply of goods. vi.
Communication Communication means transmitting or exchange of information from one person to another. It can be oral or in writing. It Comparison between Industry, Commerce and Trade INDUSTRY COMMERCE TRADE . Meaning: Extraction, reproduction, conversion, processing and construction of useful products Activities involving distribution of goods and services Purchase and sale of goods and services . Scope: Consists of all activities involving conversion of materials and semi-finished products into finished goods.
Comprises trade auxiliaries to trade Comprises exchange of goods and services . Capital: Generally large amount of capital is required Need for capital is comparatively less Small capital is needed to maintain stock and to grant credit . Risk: Risk involved is usually high Relatively less risk is involved Relatively less risk is involved . Side: It represents supply side of goods and services It represents demand side of goods and services It