This PPT prepared by Teacher Educator from Thiagarajar College of Preceptors Madurai for B.Ed Trainees.

1. FUNDAMENTALS OF BUSINESS

2. Fundamentals of Business

3. Learning Objectives
• To enable the students to
• gain knowledge about the historical
background of commerce in the sub continent
• learn the hindrances to commerce and trade
• know about the features of barter system

4. Historical Background of Trade
system
Role of Commerce
Objectives of Business
Types of Business
Synopsis

5. Historical background of Trade
• Indus valley people, who used the word ‘trade’.
• The word vaniyam or vanipam would have had a
Dravidian origin.
• The word ‘Vanigam’ has been widely used in
sangam literature like Purananuru and
Thirukkural.
• The Tamil – Brahmi inscriptions from Alagarmalai,
Pugalur, Mangulam and Sri Lanka illustrate the
fact that trade in gold, oil, plough, cloth etc.was
conducted during the early age

6. Role of commerce
• The whole of commerce activity emerged from
barter system into a multi dimensional and
multifaceted scientific system
• Monetary system, Mail-order business, Hire
purchase system, Installment purchase system.
• cashless system through e-commerce, which
means business activities enabled through
electronic modes like Online trading, Mobile
banking and e-marketing.

7. Barter System
• Goods were exchanged for goods prior to
invention of money. Barter system worked on
certain conditions mentioned below.
• Each party to barter must have surplus stocks for
the trade to take place.
• Both the buyers and sellers should require the
goods each other desperately i.e., double
coincidence of wants
• Buyer and seller should meet personally to effect
the exchange

8. Hindrances of Commerce
• Hindrance of person
• Hindrance of place
• Hindrance of time
• Hindrance of risk of deterioration in quality
• Hindrance of risk of loss
• Hindrance of knowledge
• Hindrance of exchange
• Hindrance of finance
• Hindrance of developing the exact product
• Hindrance of both selection and delivery at
doorsteps

9. Characteristics of Business
• Production or Procurement of Goods
• Sale, Transfer or Exchange
• Dealing in Goods and Services
• Regularity of Dealings
• Element of Risk

10. Objectives of Business
• Economic Objectives
• Social Objectives
• Organizational Objectives
• Human Objectives
• National Objectives

11. QUESTIONS
1.What are the hindrances of business?
2.State the constraints in barter system.
3.Explain the development of Commerce and Trade
in North India.
4.Briefly explain the coastal trade in ancient
Tamilnadu.
5.What do you know about the overseas trading
partners of ancient Tamilnadu?