Evolution of Industry and Commerce - freeeducontent.com

Industry and Commerce (Business) Evolution

In the ancient period the person fulfilled his requirements by exchanging the goods or services with each other. This system is known as barter system. In this system the additional articles or commodities of one's own are given to the needy person & the own's useful commodities are taken from that person, this system of exchanging the goods or comnodities was familiar to the Society in that period. This system of exchanging the goods or commodities fulfills the requirements of society & this system was familiar to very long time. The services were also taken in return for goods or commodities. Bartering is a medium in which goods or services are directly exchanged for other goods and/or services without a common unit of exchange (without the use of money). In the barter economy all exchanges were made with goods and services because money didn't exist in these economy. But after some period the need felt of common entity. This common entity was known as money. We can say that the barter economy had given birth to common entity i.e. money. The transactions of exchanging the services or commodities, now which is known as purchase and sell are made easy with the help of money. Each & every person of the society is engaged in some work to earn a money. Money helps the buying and selling transactions And here is the birth of business. Every work was performed to earn a money After sometime this is called a business.

Business relates to various activities connected with manufacturing , trading , transportation , insurance , warehousing , banking & finance . It thus embraces all activities pertaining to production and acquiring of wealth . In economic sense , the word ' Business ' means work , efforts and acts of people which are connected to the production of wealth . The term wealth includes land , building , plant , machinery , materials , and manpower , capital and know how , services and managerial skill. Business involves the utilization of such wealth for the purpose of producing or availing goods and services to the society to satisfy human wants . The pressure of supply and demand creates opportunities for starting a business . Business activities relate to the creation of a customer and sales of goods and services for earning an income .