The word commerce has been defined differently by different experts of business organisation. It involves the exchange of goods and services. It embraces all those processes which helps to break the barriers between producers and consumers. It provides a good linkage between the producers and consumers. The process of buying and selling of goods and all other activities which facilitate trade like grading, packing, financing, transportation and insurance are termed as commerce. It aims at proper distribution of goods and services. It includes all types of trade and other activities which assist trade. The following are the characteristics of commerce:
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- It deals with economic activities.
- It involves exchange of goods and services.
- It is undertaken with the objective of earning profit.
- It is concerned with the creation of place and time utility of the products.
- It consists of a regular course of transaction and as such isolated transactions are excluded from the purview of commercial activities.