(a) Distinguish between trade and commerce. (b) Describe five different activities engaged in by people in commercial occupations.

Answer Details

(a) Distinction between trade and commerce

Trade is the buying and selling of goods and services with the aim of making a profit. It is only one part of commerce and covers the actual exchange between buyer and seller (home trade and foreign trade).

Commerce is wider. It embraces trade together with all the aids to trade (banking, insurance, transport, warehousing, advertising and communication) that make the exchange and distribution of goods possible. In short, trade is a branch of commerce, while commerce is the whole activity of distribution.

(b) Five activities engaged in by people in commercial occupations

1. Trading (buying and selling): Wholesalers and retailers buy goods and sell them to consumers at a profit.
2. Banking: Bankers accept deposits, lend money and provide payment services to traders.
3. Insurance: Insurers cover business risks such as fire, theft and accident in exchange for premiums.
4. Transportation: Carriers move goods and people from producing to consuming areas by road, rail, water and air.
5. Advertising and communication: Advertisers and communicators inform buyers about goods and link businesses with their customers and suppliers.