These three aspects of Business can be distinguished from each other on the below given basis:
1. Meaning: Trade: Purchase and sale of goods and services for profit is called trade.
Commerce: Trade and auxiliary activities of trade are included in commerce.
Industry: The production of goods and services is called industry.
2. Objective: Trade: The objective of trade is exchange of goods and services.
Commerce: The objective of commerce is to remove the obstacles from the ways of exchange of goods and services.
Industry: The objective of industry is to produce goods and services.
3. Scope: Trade: The scope of trade is limited to the purchase and sale of goods.
Commerce : Scope of commerce is wide. It includes trade and its auxiliary activities.
Industry: It includes all types of activities related to production.
4. Creation of Utility: Trade: Authority utility is created.
Commerce: Time, place and authority utilities are created.
Industry: Form utility is created.
5. Interdependence: Trade: It is based on industry.
Commerce: Basis of commerce is trade.
Industry: It is based on commerce.
6. Ownership: Trade: It is owned and controlled by merchants, wholesalers, retailers, importers and exporters. .
Commerce: It is owned and controlled by merchants and commercial men.
Industry: It is owned by industrialists. Thus trade, commerce and industry though part of the business, are distinguished from each other.
