Commerce is concerned with the activities involving taking goods and services from manufacturers and delivering them to users. The basic motive of commerce is ensuring the proper flow of goods and services in the market for the ease of manufacturers and consumers. With the help of commerce, an individual can purchase goods produced in any part of the world. Commerce not only includes the buying and selling of goods but also consists of all the activities or services like transportation, banking, insurance, communication, packaging, advertisement, warehousing, etc., required to facilitate the process of trade, i.e., buying and selling of goods. Hence, commerce provides the required link between manufacturers and consumers. Commerce can be further classified into two parts: trade and auxiliaries to trade.
Commerce as a Subject
Academically, along with Science and Arts, Commerce is said to be one of the most popular streams of education. It deals with the various aspects of business, trade, accounting, financial information/transactions and merchandising. It is a study of trade and business activities, dealing with accounting and financial activities. Accountancy, Macroeconomics, Microeconomics, Statistics for Economics, Indian Economic Development and Business Studies are the major subjects in this stream. Further in higher standards, Commerce is divided into many subjects like Management, Marketing, Income Tax, Financial Management, Organisational Behaviour, Entrepreneurship & Small Business Management, International Marketing Management, Business Mathematics, Cost Accounting, Money & Banking, etc.
Commerce Stream Subjects
Subjects which are taught in Class XI and XII are Accountancy, Business Studies, Microeconomics, Macroeconomics, Indian Economic Development, and Statistics for Economics.
Accountancy deals with the process of measuring, processing and recording an organization’s financial and non-financial statements. It has a wider scope than Accounting as it is the route to the Accounting process. Accountancy is responsible for prescribing the accounting conventions, principles, and techniques to be followed by an organization during the accounting process. The nature of Accounting is dynamic and analytical and hence, requires special abilities and skills in an individual to interpret the information better and effectively.
Business Studies is defined as the area of study that talks about the principles of business, economics and management. It is taught at the secondary level in India as an academic elective. It covers management, marketing, and finance.
GeeksforGeeks Business Studies covers chapters from Class XI and XII covering every topic, like Business, Commerce, Forms of Business Organisation, Business Services, Business Finance, Social Responsibility, Business Ethics, International Business, Functions of Management, Principles of Management, Marketing, Stock Exchange, Training, Recruiting, Planning, etc.
Economics is the study of a way in which a society decides or chooses to use limited resources with alternate uses for the production of goods and services and to ultimately distribute the product among different sections of the society. Simply put, economics is about choosing among different alternatives in the presence of scarcity. It aims to ensure that the resources are used in the best possible manner.
Economics is further divided into many subjects, like in school we have Microeconomics, Macroeconomics, Statistics for Economics and Indian Economic Development.
a. Microeconomics: Microeconomics is a branch of economics studying the behaviour of an individual economic unit. Adam Smith is known as the father of economics and microeconomics. Microeconomics help in contemplating the attributes of different decision-makers in an economy like individuals, enterprises, and households. In simple terms, microeconomics help in understanding why and how different goods have different values, how individuals make certain decisions, and how they cooperate with each other.
b. Statistics for Economics: Statistics for Economics plays a major role in economics. Statistics helps in the study of market structure and understanding the different economic problems. After a better understanding of the economic problems, statistics also help in solving those issues by formulating appropriate economic policies. Every economics branch takes the help of statistics to prove different economic theories. One can also establish a mathematical relationship with the help of statistics. Economists can present the facts of economics precisely.
c. Macroeconomics: Macroeconomics is a part of economics that focuses on how general economies, markets, or different systems that operate on a large scale behave. Macroeconomics concentrates on phenomena like inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes in unemployment.
d. Indian Economic Development: Indian Economic Development as a subject is to familiarise students with the basic feature of the Indian Economy and its process of development. It is important to first look at the state of India’s economy prior to the country’s independence and form an idea of the various consideration that shaped India’s post-independence development strategy.
Other Subjects:
Management is an essential ingredient in every organised endeavour. Effective and efficient coordination of human efforts and material resources requires sound management. This part has been designed keeping in view the situational nature of management. It seeks to provide a brief and concise view of what management is all about and how it can be applied to different spheres of human activity.
Income Tax is a direct tax that is levied on any individual’s or entity’s income during a financial year. It is directly paid to the government, like all the other direct taxes. The net taxable income is considered to calculate the tax liability of the individual or entity based on the income slabs provided by the Income-tax Department for the current financial year. The amount of tax paid depends on the money earned by the individual in that particular financial year.
The specialised study of how an individual or a company manages its funds is known as Finance. It refers to the money required for carrying out business activities. It involves all activities right from the estimation of funds to their acquisition, utilization and disposal. Finance is the lifeblood of any business.
Significance of choosing Commerce Stream
- Commerce Stream provides knowledge of financial security.
- Students opting Commerce stream have a wide range of career options, like Chartered Accountant, Company Secretary, Investment Banker, Corporate Lawyer, etc.
- Commerce Stream helps students to survive in almost every industry as a basic understanding of Commerce is needed for their better career prospects.
- KPOs, and BPOs, recruit employees of commerce background who have a good understanding of accounts and finance.
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