Question

Compare industry, commerce, and trade. 

Give a comparison between industry, commerce and trade.

Answer 1

Basis of comparison	Industry	Commerce	Trade
1. Meaning:	Extraction, reproduction, conversion, processing, and construction of useful products.	Activities involving the distribution of goods and services.	Purchase and sale of goods and services.
2. Scope:	Consists of all activities involving the conversion of materials and semi-finished products into finished goods.	Comprises trade auxiliaries to trade.	Comprises exchange of goods and services.
3. Capital:	Generally large amount of capital is required.	The need for capital is comparatively less.	Small capital is needed to maintain stock and to grant credit.
4. Risk:	The risk involved is usually high.	Relatively less risk is involved.	Relatively less risk is involved.
5. Side:	It represents the supply side of goods and services.	It represents the demand side of goods and services.	It represents both supply and demand.
6. Utility creation:	It creates form utility by changing the form or shape of materials.	It creates place utility by moving goods from producers to consumers.	It creates possession utility through the exchange.