(a) Differentiate between industry and commerce. (b) List and explain four activities of those engaged in commercial occupations

Answer Details

(a) Difference between industry and commerce

Industry is the branch of production concerned with the extraction of raw materials from nature and the conversion of those materials into finished or semi-finished goods. It covers extractive, manufacturing and constructive activities that actually create goods.

Commerce is the branch of production concerned with the distribution and exchange of goods and services, together with the aids that make such distribution possible. It covers trade (buying and selling) and the aids to trade such as banking, insurance, transport, warehousing, advertising and communication. In short, industry makes goods while commerce distributes them.

(b) Activities of those engaged in commercial occupations

• Trade (buying and selling): Wholesalers and retailers buy goods from producers and sell them to consumers, thereby moving goods from where they are produced to where they are needed.
• Banking: Bankers keep customers' money safe, lend money, and provide a means of making and receiving payments, thus financing and easing trade.
• Insurance: Insurers accept the risks of trade such as fire, theft and accident in return for a premium, giving traders confidence to operate.
• Transportation: Transporters carry goods and people from the place of production to the place of consumption, bridging the distance between producers and consumers.