Page 70 - Office Practice and Accounting -9

iii. Genetic industry: The term ‘Genetic’ refers to heredity. It involves the
reproduction of plants, species, birds and animals which are later used for
production of medicines, perfumes, etc. Poultry farming and nurseries are the
examples of genetic industry.
iv. Manufacturing industry: Manufacturing industries are those industries
which are engaged in converting raw materials into finished products, as is
done by a weaver of cotton cloth or in a factory for manufacturing silk, boots and
shoes, etc. The manufacturing process begins just after the raw materials reach
the factory and ends when the finished goods are completed. It has nothing
to do with the purchase of raw materials and sale of manufactured articles.
Manufacturing occupations differ from extractive occupations in as much as
they are less influenced by nature and are more specialized than the latter.

Commerce
Commerce includes all those activities which are concerned with the distribution of
products and services. It embraces purchase and sale of every kind as well as various
services like transport, banking, insurance, warehousing, etc. which facilitate trade.
It is not concerned with manufacturing of goods but it involves different activities
between the producers and consumers. Commerce helps the producers to give a
complete form to his business.

Commerce is divided into two broad classes:
1. Trade

Trade means the actual purchase and sale of goods. This is done by wholesalers,
retailers and similar other middlemen. It is an integral part of business in which the
ownership of goods or services is transferred from one to another for earning profit.
So trade involves the exchange of goods between producers and consumers.

a. Home (or internal) Trade: In this form of trade, the goods and services
are exchanged within the geographical territory of a country. It includes the
production, purchase and sale of goods within the different parts of the country.
The goods turned out by producers are sold in bulk to wholesale merchants. These
wholesale merchants sell them to retail merchants. The latter distribute them over
the length and breadth of the country among the actual consumers through their
numerous establishments infesting every nook and corner of the land.
It is obvious from the above that home trade may be either wholesale trade or retail
trade. Wholesale trade refers to the selling of goods in bulk. Producers of goods
sell them generally to big merchants, called wholesale merchants, who sell the
goods in bulk to small shopkeepers, called retail merchants. Retail Trade refers to
the selling of goods in small quantities to actual consumers. Neither the producers
nor the wholesale merchants have direct contact with actual consumers of goods.
The consumers purchase goods in small quantities to their requirements from retail
traders.

66 Office Practice and Accounting 9