business organisation and environment

Every successful story has successful pain

Every successful pain has successful end

so

Accept the pain and will get success

• No one will manufacture a lock without key

• Similarly God won`t give problems without solution

• Changing the face can change nothing

But facing the change can change everything

Don’t complain about others

Change yourself if you want peace

commerce

• Commerce is a concept which encompasses exchange activity as well as supporting activities .

• Commerce is connecting link between the primany producers and ultimate consumers

• Commerce is a integrated activity having many processes and activities like trade , transport, banking , insurance, agency services etc.

• Commerce is a dynamic activity .

it is ever moving, ever changing , ever developing

• The term possesses two other sub concepts

1) Trade

2) Aids to Trade

Trade

• Trade is a buying and selling activity which is supported by transport, banking , middlemen, insurance and other infrastructural facilities like power, communication, etc

• Exchange activity (buying and selling)

• In this buyer gets the utility and satisfaction of the product or services and seller gets profits for the risk .

• As the producer of goods cannot reach millions of consumers personally to sell his product.

he avails the facilities and services from middlemen .

Trade is the man function of commerce.

Trade is both a direct and indirect buying and selling activity.

Three types of trade

1) Inland trade: It is also called national or home trade.

It refers to buying and selling activity within the country .

It may be local , regional or national trade.

2) Foreign trade: It is a trading activity which takes place between two countries

there will not be free movement of goods and services in this case.

In spite of the barriers , international trade has become a vital activity of any company.

• 3)Entrepot trade: It refers to a seaport or a trading port where merchandise is received from other country, sorted and re shipped without paying import duty.

Aid to trade

Aid to trade are essential for smooth running of business .

Transport : it creates place utility .

The good manufactured at one place have to reach the consumers scattered in different places at the appropriate time.

Other wise the utility of goods become useless .

Banking services: Finance required by business house is provided by banks. This is major services rendered by the finance sector to the business.

Business required money . Every type of capital is provided by this sector.

Banks perform several functions . They accept deposits , lend money against securities like bills of exchange , trade doccuments.

Insurance : This is another supporting service which facilitates the smooth running of trade.

Insurance eliminates risk of loss by the payment of premium to an insurance company.

Which under takes to pay for specified losses.There will be insurance against 1) Fire and other hazards2) Accident3) Marine 4) Aviation5) Life insurance and insurance against other business risk