Commerce is a system or environment that affects the business landscape of an economy or a nation.
While business refers to the value-added activities of an organization for profit,
Commerce means the whole system of economics that forms the environment for trade.
The system includes the legal, economic, political, social, cultural, and technological systems that are operating in each country.
It can also be referred to as the second component of the business, which includes all activities, functions and institutions involved in the transfer of goods from producer to consumer.
Business executive activities can be carried out by an individual, group or organization and organization and can be managed privately or publicly or in a mixed way, the characteristics of each of which we will discuss.
Private business units
These systems are created by the person or persons who intend to work with each other. In individual business units, the investment, responsibility, decision-making and management of the enterprise is the responsibility of one person. Their field of activity is limited, in a weak competitive field and their period of activity is often short.
However, advantages such as freedom of work, limited units, the possibility of direct communication with the customer for private units are considered.
But these units also have disadvantages, some of which are: limited capital, planning and accountability to creditors. For this reason, the tendency to produce group business units is increasing day by day. In these units, a number of people invest more or less their common capital in order to do business with all of them.
Government Commercial Units
In government business units, funding is the responsibility of the government and its executive agents are government employees.
The purpose of forming these units is to improve the overall economic and social situation of the country.