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Ques 1 is of 6 mrks and 2 nd ques - 3 marks .. explain accordinly .. !

Dear student,

Ans.1) Nature of commerce:

1) Economic activity: Commerce involves all the activities which are undertaken for earning profit.
2) Exchange of goods and services: It involves exchange of goods and services. It includes trade and auxiliaries to trade.
3) Profit motive: All the activities of commerce are undertaken with the aim of earning profit.
4) Creation of utilities: The activities of commerce help in creating various utilities like utility of place, time, etc.
5) Regularity of transaction: Commerce involves regular transactions. A single transaction do not constitute commerce.

Scope of commerce: 

The commerce has a wide scope. It does not only relate to trade, i.e. transfer of goods and services, it includes aids to trade, i.e. all that activities that support trade. 
Commerce removes hindrance of person with help of trade.
It removes hindrance of place with help of transportation facility.
It removes hindrance of time by providing warehousing and storage facilities.
It removes hindrance of exchange with help of banking facility.
It removes hindrance of knowledge by providing advertising and publicity facility.
It removes hindrance of risk by providing insurance facility.

Ans.2) Ethics are principles that guide a person or society. 
Law are the rules and regulations created by appropriate authority.
The differences between ethics and law are:
Basis of difference Law  Ethics
Violation Violation of law result in penalty Violation of ethics do not result to penalty.
Objective Law are made with aim of creating order and peace in society. Ethics are made to help people in deciding what is right and wrong.
Legality Law has legal binding. It is framed by Government. Ethics do not have legal binding. It is governed by individual, professional norms.


Regards

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ksjl
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Ans. 1. Commerce is the sum total of all those activities which are engaged in the removal of 'hindrances of person, place, time and exchange'.
Commerce comprises of 'Trade and Auxiliaries to trade'.
'Trade' refers to the exchange of goods between people and 'Auxiliaries to Trade' consist of all those activities which help in assisting trade and are discussed as follows:
(i) Banking and Finance: Every business enterprise requires funds for- bringing in the capital, purchasing assets, meeting out the expenses and carrying out the operational activities of the business. Banks and financial institutions provide funds to the businesses in the form of loans and advances and even provide many services like overdraft facilities, accepting deposits, cash credit, cheques facility etc.
Thus, banking removes the hindrance of 'funds' or 'money'.
(ii) Transportation: Since the place of production of goods and the place of their consumption may not be close, it becomes difficult for the goods to reach the consumers. Transportation makes the raw material available at the place of production as well as goods available at the place of consumption.
Thus, transportation removes the hindrance of place.
(iii) Insurance: Risk is involved in every business, rather it is an essential part of business. Any business cannot avoid risks. Goods, assets such as building, plant, machinery, furniture etc. and even people may be subjected to various kinds of risks. Insurance undertakes the task to make good,the loss of the insured, in consideration of premium, on the happening of any uncertain event.
Thus, insurance remove the hindrance of 'risk'.
(iv) Warehousing: Goods produced may not be immediately consumed by the people and thus required to be stored at some place. Warehousing provides such a  facility to the business houses by undertaking the task of not only storing the goods, but also making available the right quantity, at the right place, in the right time, in the right physical form, at the right cost.
Thus, warehousing remove the hindrance of 'time'.
(v) Advertisement: Advertisement provides the customers or consumers the information about the goods or products and helps them to take decision about buying a commodity.
Thus, advertisement removes the hindrance of 'knowledge'.
(vi) Communication: Since it may not be possible for the producers to get in touch with each and every consumer, it may hamper the free flow of goods. Communication acts as a connecting link between the producers, traders and consumers and allows them to share information.
Thus, communication removes the hindrance of 'people'.

Hope you find the answer useful.
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