SIGNIFICANCE OF COMMERCE TOWARDS SOCIAL-ECONOMIC DEVELOPMENT
Commerce creates utility which is the ability of a commodity to satisfy a human want. Commerce creates such utilities as;
-Time utility,
-Place utility,
-Ownership utility, and
-Possession utility.
By taking the goods to the consumers where and when they want them.
COMMERCE AND ACCOUNTANCY
-As far as general analysis, classification, recording and control of trading financial transactions are concerned; accounting plays a very big role in commercial transactions in the efforts to control well various financial resources to earn potential profits.
-The American Institute of Certified Public Accountants (AICPA) defines Accounting as the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the result thereof.
-Therefore, accounting helps the general commercial sectors of retail or wholesale trade, import and export of goods, banking and finance,insurance,transport and communication etc, organized as sole proprietorships, partnerships, cooperatives and companies, in the transactions involving the process of purchase and sale against any money consideration.
-The main areas in which accounting can help commercial sectors include ascertainment of profit and loss, controlling of credit transactions, tax assessment, evaluation of assets and liabilities, business control etc.
DIFFERENCES BETWEEN COMMERCE AND ACCOUNTANCY
-Commerce aim at distributing goods and services efficiently to the consumers, while Accountancy aim at analyising,classifying,summarizings and controlling commercial transactions against any money consideration.
-Commerce is divided mainly in two main divisions of Trade and Aids to trade, while Accountancy is divided into financial, cost and management accounting.
SIMILARITIES OF COMMERCE AND ACCOUNTING
-Both commerce and accounting are relating to commercial transactions
-Both commerce and accounting are subjected in economics as the major study.
SIGNIFICANCE OF COMMERCE TOWARDS SOCIAL-ECONOMIC DEVELOPMENT
1) Commerce enables individuals and society at large to acquire the maximum satisfaction of their limited resources. Also the exchange of goods and services enable a country to get the maximum benefit out of its resources i.e.
-It makes goods and services available to consumers at the right time, place, quantity, quality and price.
-It provides the relevant information about goods and services to potential producers and consumers.
-Through commerce, trade can be done world wide through facilitated import and export trade.
-Goods are made available throughout the year through proper storage facilities and effective warehousing.
-Commerce enables insuring various risks which may face the commerce and business at large.
-Financing of businesses is made possible upon provision of effective banking and financial services.
2) Commerce offers employment to people in different commercial sectors in small and large scale commercial activities, in this case the living standards of people is improved.
3) Commerce, through local and international trade, promotes good relationship among the citizens in the world, socially, economically and politically contributing to general human progress. As a matter of fact, commerce is the index of human progress.
REASONS FOR STUDYING COMMERCE
-Commerce helps us to understand the changes that are taking place in various commercial sectors in Tanzania and world at large in such areas as commercial policies, import or export operations, investment policies, marketing systems etc
-As all of us are consumers of various goods and services, commerce provides us with valuable knowledge in dealing in beneficial transactions to acquire the maximum satisfaction, and then achieve a better standard of living.
-Commerce is useful in imparting to us commercial knowledge as valuable introduction in further profession studies like Economics, Accountancy, Business and Industrial Administration, insurance etc.
-Commerce helps us to identify and applying the basic tools of commercial analysis e.g. costing, pricing, discounting etc which play effective role in mastering various business operations.
-Commerce provides us with potential knowledge and skills to interpret national and international commercial issues e.g. Balance of payments, devaluation and depreciation, Rates of exchange etc.
-Commerce is useful for all who are engaged in commercial occupations, whether it be in trade or in one of the services ancillary to trade e.g. clearing and forwarding agents, bankers and insurers, transporters, business entrepreneurs etc, so that they are well equipped with commercial knowledge and skills in performing those transactions.
-Commerce exposes us to the world of business with particular occupations in industrial, commercial and service sectors in so that we are fit into the general scheme of commerce upon employment in private and public sectors.
GENERAL STUDY OF COMMERCE
A study of commerce would therefore involve;
→A study of TRADE, the principal activity in the distribution of goods.
→A study of AUXILIARY SERVICES that make trade possible.
→A study of how best above could be best organized so as to satisfy the NEEDS of a consumer in the most efficient manner.