(a) With the aid of a diagram, illustrate the scope of commerce.
(b) Explain four commercial activities that facilitate buying and selling.
Explanation
(b) The commercial activities that facilitate buying and selling include:
(i) Transportation: Transport facilitates the movement of goods and services from the point of production to where they are needed.
(ii) Insurance: Insurance reduces the risks associated with the production and distribution of goods and services.
(iii) Advertising: Advertising helps to create awareness about the existence of goods and services.
(iv) Warehousing: Warehousing helps the storage of ods until they are needed. It also facilitates commercial activities by making it possible for production to continue ahead of demand.
(v) Finance and Banking: Finance and banking facilitate commercial activities by making money available for the production and distribution of goods and services. Banks grant credits in the form of loans and overdrafts and provide facilities for saving money and other valuables.
(vi) Communication/ Tourism: Communication and tourism provide an efficient network which links businessmen and thus facilitate commercial transactions.