Pedagogic analysis of commerce

 MEANING, NATURE AND SIGNIFICANCE OF COMMERCE

Chapters

1.

COMMERCE AS A UNIQUE DISCIPLINE

2.

CORRELATION OF COMMERCE WITH OTHER SUBJECTS

COMMERCE

MEANING OF COMMERCE

Commerce is the exchange of goods and services on a large scale. Any transaction that uses the money to purchase goods or services is a part of the commerce. Commerce is the exchange of goods and services between businesses.

DEFINITION

•

According to James Stephenson, “Commerce is concerned with exchange of goods, with all that is involved with the buying and selling of goods, at any stage in their progress from raw materials to finished goods in the consumers’ hands. It covers not only functions of buying, selling and handling of goods, but also the many services which must be provided to finance, insurance, store and transfer of goods in the course of this exchange.”

•

According to Dr. Evelyn Thomas, “Commerce is a term that embraces all those functions

involved in the making, buying, selling and

transport of goods.

•

According to M.C Shukla, “Commerce means the process of distribution of goods or services which are produced by industry.

IMPORTANCE AND SCOPE

1.

Planning and guidance for the production of goods: There are many variables that are relevant to the production of commodities. These vary from pooling of inputs including the labour that provides expertise, facilities for transportation, demand for the goods, scenario of its trade, the issue of making profit, etc.

2.

Studies about all aspects of trade: All aspects concerning the various types of trades (home trade, whole sale and retail trades, foreign trades) are within the direct purview of commerce.

3.

Warehousing: The goods produced have to be safety stored till it reaches the market, and their quality maintained without getting spoiled. Commerce has to suggest appropriate ways and means for this on the basis of scientific techniques involved in warehousing.

4.

Transport: Since pooling of inputs, consumption of finished goods, the selling and buying of goods, etc. essentially involve their movement from one center to another by means of cheap and effective transportation, that too is an essential aspect of commerce.

5.

Banking: In raising capital for production, trade and number of other activities, banking services play a crucial role. Hence studying the various types of banking services available, their evaluation from the point of view of the needs of commercial endeavours and transmission of reliable information and guidance to those involved also fall under the scope of commerce.

6.

Information transmission: Since buying and selling of commodities depend upon awareness of the customers at home and abroad, proper about these have to be transmitted. This has to be done through various media and using a variety of techniques.

7.

Insurance services: There is very high probability of destruction and damage of inputs, equipments, products, etc. due to various reasons. Insurance against such losses

is essential for the very sustenance of

commercial concerns.

8.

According: Proper recording of details regarding transaction at various stages and levels is the life breath of the successful functioning of any commercial endeavour. Objectivity, transparency, trust worthiness, system, etc. have to be maintained in accounting.

AREAS OF COMMERCE AND THEIR RECENT DEVELOPMENT

1.

Banking: With the advent of computers, bank can now offer to their customers a variety of new services such as Electronic Funds Transfer System (EFTS), Automated Teller Machines (ATMS), Debit Card, Credit card, and Core Banking. Other most modern facilities offered by banks are Tele Banking, and Internet Banking.

2.

Marketing: In this age of information explosion, the computer and communication technology play a vital role in marketing. E-commerce is the practice of buying and selling products and services

over the internet, utilizing web, electronic

data interchange, electronic funds transfers and smart cards.

3.

Insurance: Insurance is a method of averaging risks. This is an agreement between the insurer and the insured. Entry of private companies is noted as the major advancement in the field of insurance.

4.

Communication: The fruits of fast changing technology are enjoyed by communication. This is evidenced by the successful application of a number of efficient devices communication.

5.

Trade: Trade involves buying and selling of goods and services. Trade can be of two types -internal and external. Internal indicates transfer or exchange of goods and services within a country and external trade indicates trade among nations. Online trading is a recent development In the field of trade.

ACCOUNTING

Accounting is a process of identifying the events of financial nature, recording them in the journal, classifying in their respective accounts and summarizing them in profit and loss account and balance sheet and communicating results to users of information, vi. owner, government, creditor, investors, etc.

DEFINITION

According to American Institute of Certified Accountants, 1941, “Accounting is the art of recording, classifying and summarizing in a significant manner and in term of money, transactions and events that are, in part at least, of financial character and interpreting the results thereof”

IMPORTANCE

1.

Purpose of analysis/Decision making

2.

Record keeping

3.

The prevention and detection of fraud

4.

Funding and loan application

5.

Building credit and reputation

6.

Providing forecast insights

7.

Calculating profit and loss

8.

Display financial situation

9.

Cost control

10.

Comparative study

11.

Financial performance

SCOPE OF ACCOUNTING

The scope of accounting and finance spans differtnt areas, including financial accounting, cost accounting, auditing, taxation, and financial management;

1.

Financial accounting: It involves the preparation, presentation, and reporting of financial statements. Hence, it ensures accuracy and compliance with GAAP(Generally Accepted Accounting Principles) or international financial reporting standards(IFRS).It reliable and transparent financial information.

2.

Managerial accounting: It provides financial information for internal decision-making, forecasting, analyzing costs, budgeting, and performance measurement. Therefore, it helps organizations makes informed business decisions.

3.

Cost accounting: It is a field that analyze and reports an organization’s expenses, including units, goods, and activities. It helps identifying cash spending, gains, and losses and aims to

improve internal expenses controls and

effectiveness, serving as a functional examination for the board.

4.

Auditing: It aims to give an opinion on fairness and adherence to accounting rules of financial statements and records through an impartial review. It confirms the dependability and accuracy of financial data, assuring stakeholders and boosting the credibility of financial statements.

5.

Taxation: planning, preparation, and adherence to tax laws and regulations are all part of tax accounting. It assists both individuals and businesses in minimizing their tax liability. And ensuring that all tax requirements are met.

6.

Financial management: Financial planning, capital budgeting, investment choices, and risk management are all examples of activities that fall under the umbrella financial management. It related to organization acquisition, segregation and utilization of financial resources. managers conduct analyses of financial data, assess investment opportunities, and create plans to increases the company’s value.

Computerized accounting

The computerized accounting system is an accounting data system that processes the financial transactions and transactions as per GAAP to produce reports as per user demands.

Database management system(DBMS)

It is a software system that allows access to data contained in a database. The objective of DBMS is to provide a convenient and effective method of defining, storing and retrieving the information contained in the database.

VOCATIONAL EDUCATION

Vocational education refers to educational programs that are designed to prepare individuals for specific careers skills. It mainly focuses on practical skills and hand-on training that are directly applicable to the workplace. The expansion of vocational education in India will provide a skilled labor force in the informal sector which would further enhance the productivity of the industrial sector.

FEATURES

1.

Employment oriented

2.

Emphasis on practical skills training

3.

Flexibility in class organization

4.

Emphasis on practical skill in evaluation

5.

Close connection between teaching and real-world practice

6.

Requirement for teachers with practical experiences in related field

IMPORTANCE

1.

Practical skills: Vocational aim of education focuses on providing students with practical skills and knowledge that can be directly applied in their professional carriers.

2.

Career preparation: Vocational education programs are designed to prepare students for specific careers or industries.

3.

Employment generation: Many vocational education programs have strong partnerships with MSMEs and big industries, which often leads to job placement opportunities for graduates.

4.

Cost-effective: Vocational education is often more cost effective than traditional college and university courses.

5.

Flexible learning: Vocational education programs offer flexible learning opinions,

including online classes which make it easier

for students to balance work and family responsibilities while pursuing their education.

6.

New-age career: Many vocational education programs focuses on high-demand and new-age careers such as healthcare, technology, and skilled trades.

ENTREPRENEURSHIP EDUCATION

Entrepreneurship education is about developing our students’ ability to create social, cultural, or economic value. Enabling experiences for thinking critically and relatively, undertake complex problem solving, negotiate, communicate, and lead can all contribute to developing a student’s entrepreneurial mindset.

FEATURES

1.

Effectively setting goal

2.

Critical judgement and selection

3.

Organizing task intelligently

4.

Assembling and motivating a team

5.

Decision making

6.

Record keeping

7.

Creative thinking

IMPORTANCE

1.

Entrepreneurship is a key diver of our economy.

2.

Wealth and high majority of jobs are created by small business started by entrepreneurially minded individuals, many of whom go on to create big businesses.

3.

People exposed to entrepreneurship frequently express that they have more opportunity to exercise creative freedoms, higher self-esteem, and an overall grater sense of control over their own lives.

4.

As a result, many experienced business people political leaders, economists, and educators believe that fostering a robust entrepreneurial culture will maximize individual and collective economic and social success on a local, national, and global scale.

5.

It is with this in mind entrepreneurship education were developed by India trust to prepare youth and adults to succeed in an entrepreneurial economy.

CONSUMER EDUCATION

Consumer education as that form of education which provides the specialized knowledge that leads the coming generation to find one’s own way and become able to identify and inculcate social, economical and

cultural values and also to attain life coping skills, enable the pupils to make use of this specialized knowledge and competencies to take responsibility and generate accountability for his or her life.

FEATURES

1.

Enabling coming generation to become a good consumer suited for the complex and multi-faceted dimensions of the society.

2.

Make people with consumer habits, needs and wants, values, interest and attitudes.

3.

Develop co-operation, leadership, motivation and sharing of responsibilities.

4.

Ability to generate analytical ability, decision making power and problem-solving skills.

5.

Critical awareness strengthens the competency of young consumers.

6.

Ability to manage individual finances and transmit it to the economic developments of the society in a global perspective.

IMPORTANCE

1.

To develop the ability to decide and select intelligently.

2.

Demand safe, reliable and good quality product at reasonable price.

3.

Make consumer alert, well informed and vigilant against corrupt practices in the market.

4.

Take suitable actions when faced with problems.

5.

Make appropriate decisions and not get misled by salesman.

6.

Helps the consumer how to use the product.

7.

Aware of rights and responsibilities.

MARKETING MANAGEMENT

Marketing management is of importance as it helps to stand competent in highly thriving competition in the market. This also helps to develop strategies to improve profits and reduce the cost od products. Marketing management has become the major source of exchange and transfer of goods.

RECENT DEVELOPMENT

Today’s time consumer place a greater weight to direct motivations to buy product. Today’s market is give more emphasis on the notion;” offer more for less”. Today’s markets are focusing on lifelong customers. They are shifting from transaction thinking to relationship building. Large companies create, maintain and update large consumer database containing demographic, lifestyle, past experience, buying habits, degree of responsiveness to different stimuli, etc..., and design their offering to create, please, or delight customers whom remain loyal to them.

FINANCIAL MANAGEMENT Financial management is all about monitoring, controlling, protecting, and reporting on a company's financial resources. Companies have accountants or finance teams responsible for managing their finances, including all bank transactions, loans, debts, investments, and other sources of funding. RECENT DEVELOPMENT

1.

Recent development in working capital management

2.

Recent development in the tools of financial analysis

3.

Recent development in capital budgeting and project planning

4.

Recent development in capital structure

5.

New source of finance

HUMAN RESOUCE MANAGEMENT Human resource management (HRM) involves coordinating, managing, and allocating human capital, or employees, in ways that move an organization’s goals forward. HRM focuses on investing in employees, ensuring their safety, and managing all aspects of staffing, from hiring to compensation and development.

RECENT DEVELOPMENT

1. Shift to employee’s experience Due to a change in technology, most businesses are shifting from employee’s engagement to employees experiences. This is done through an easy implementation of HR process, improving employee’s careers, and a productive office atmosphere. 2. Data security Human resource automation allows you to use software that can back-up important data to cloud services thus protecting critical company data. It also reduces errors that may occur

during manual processes. These are the Current Trends in Human Resource Management. 3. Mobile Access This is where employees across all divisions and sectors access different applications via mobile app. HR applications in a given company can now be accessed through the mobile thus making work easier. 4. HR innovations A new pace is being set based on, for example, new learning methods, new methods to reduce biases, innovative recruit approaches, training, and advanced performance management. 5. Migration to Cloud A Cloud-based HR is being embraced by most business today because it is making work easier and one can perform HR functions wherever they want at anytime 6. Rise of Intelligent Self – service tools The existence of intelligent self –service tools has helped the HR department to conduct time-tracking, training, and reporting easily. 7. Intelligent Apps and Analytics HR applications are changing the nature and structure of the work-place. Similarly, they are enabling work- performance analysis, tracking and assessments, internal management, and attracting talents and enterprise management for improved better decision making.

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