Ch 2Trade — Class 11 Organisation of Commerce and Management, concept-first.

Commerce is the wider activity that connects producers of goods and services with the consumers who need them, and it is usually described as having two broad branches: Trade (the actual buying and se…

Commerce is the sum total of all activities that are necessary to move goods and services from the point of production to the point of consumption, smoothly and without interruption.

Trade is classified on the basis of the geographical area it is conducted within:

Wholesale trade is the business of buying goods in large quantities from producers or manufacturers and selling them in comparatively smaller quantities to retailers, industrial users, or other mercha…

Retail trade is the business of buying goods — usually from wholesalers, sometimes directly from producers — and selling them in small quantities directly to the final, individual consumer for persona…

External (foreign) trade has three recognised forms:

Channel of distribution refers to the path or route through which goods travel — and ownership of goods passes — from the producer to the final consumer. Broadly, two patterns are recognised: