This slide is designed for simple understanding about commerce to school students who do not have commerce subject.

1. Introduction to
Commerce
Dr. S.MANIKANDAN., M.Com., M.Phil., M. Ed., Ph.D
ASSOCIATE PROFESSOR
PG & RESEARCH DEPT. OF COMMERCE
GURU NANAK COLLEGE
VELACHERY, CHENNAI - 42

2. 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

3. GOODS FOR GOODS

4. SERVICE FOR SERVICE
OR
GOODS FOR SERVICE

5. EVOLUTION OF MARKET

6. FROM BARTER TO MONEY
inefficiencies of barter system
'double coincidence of wants' problem.

7. • GOLD & SILVER first medium of exchange

8. monetary system
• monetary systems developed in most
countries
• money replaces Barter as the method of
exchange

9. • money - used to intermediate the exchange of
goods and services
• Medium of exchange = MONEY

10. TRACE OF TRADE IN INDIA
3300 BC, Northern India
saw 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

11. Vedic Aryans Civilization
•
•
•
•
a system of structured society was formed
according to occupation, into
Brahmins(learned men)
Kshtriyas(warriors, kings)
Vyshyas(Traders)
Shudras(workers).

12. 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

13. Forms of business ownership
• Sole proprietorship
• Partnership
• Company

14. Sole proprietorship
• owned by one person for-profit

15. Partnership
• owned by two or more persons

16. Company
• has a separate legal personality from its
members with limited liability.

17. WHAT HAPPENS IN INDUSTRY ?
PRODUCTION
EXCHANGE
CONSUMPTION

18. PRODUCTION

19. PRODUCTION
RAW
MATERIALS
PROCESS
FINISHED
GOODS

20. PRODUCTION
RAW
MATERIALS
PROCESS
FINISHED
GOODS

21. EXCHANGE

22. EXCHANGE
FINISHED
GOODS
MONEY

23. CONSUMPTION
FINISHED
GOODS
CONSUMERS

24. BUSINESS CYCLE
CAPITAL/
INVESTMENT
RAW
MATERIAL
REVENUE
FINISHED
GOODS
PROCESS

25. AIDS TO TRADE
finance
transport
insurance
middlemen
warehousing
advertisement

26. AIDS TO TRADE
BANKS
Accepting deposits
Lending loans

27. BANKS IN INDIA

28. AIDS TO TRADE
TRANSPORT
ROADWAYS
WATERWAYS
AIRWAYS
RAILWAYS

29. AIDS TO TRADE
Risk is removed against
Theft
Natural calamities etc.,

30. AIDS TO TRADE
All goods produced cannot be
sold immediately
Stored in godowns
Kept of future demand

31. AIDS TO TRADE
WHOLESALERS
RETAILERS
AGENTS

32. AIDS TO TRADE
MARKETERS
Advertisement
Sales promotion

33. 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.,

34. 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

35. THUS COMMERCE….
BUSINESS
INDUSTRY
Commerce
TRADE
AIDS TO
TRADE

36. 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

37. 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

38. TIME FOR QUESTIONS