1. Commerce
- Latin name of “commercium, is a combination of two root words; com means together and mercies mean wares.
- Commerce defines as an exchange of wares, goods, or merchandise
- This is primarily concerned with trading for profit
- Commerce have two subcategories, retail trading and wholesale trading
Retail Trading
Retailer does not keep large stock of goods for he usually has not enough capital to buy in bulk.
Wholesale Trading
While retailer buys small stocks of goods, the wholesaler usually buys large stocks of goods or bulk purchase from the producer. In return for its bulk purchase, a producer gives discounts to wholesalers.
Retailers and wholesalers are coexistent. Wholesalers buy from the producer, and sell and distribute to retailers while retailers, who are not directly purchasing from a producer, buys goods from producers. Again, this is not always the case, capital should still be considered, a retailer with higher capital can become wholesalers which is directly purchasing goods from the producers.
2. Industry
- Considered as the producers, manufacturers
- They make products from raw materials and convert them to something useful and is needed by consumers and then distributes them through commerce naming, the retailers and the wholesalers.
- An economic activity that produces:
a. consumer goods
- intended for use by final consumers.
b. industrial goods
- for use by other industries.
- Industry is dependent yet interdependent to other industries. This is because some factors of production are only made available through other industries which become a supplier for them.
3. Business Services
- This category specializes in rendering useful services. i.e. insurance, banks, telephone, amusement houses.
- Business services rely mostly, but not solely on the expertise of workers. They usually train them which results in the specialization to their particular field to help them offer a quality service.
