What is the relationship of commerce with business?

Expert Answers
Karen P.L. Hardison eNotes educator| Certified Educator

The relationship between commerce and business is that business activity is carried on within the framework of commerce. Commerce encompasses all aspects of large-scale buying and selling activities carried on between nations, between or within states, and between or within industries, while business encompasses individual entities' activities related to buying and selling for company profit.

Commerce might be called the environment within which various business enterprises are carried out. Business is individual enterprises engaged in the full range of buying and selling activities; business is collectively one aspect of commerce.

Commerce describes the interchange of goods, services, and commodities between different nations and the interchange of goods, services, and commodities within the boundaries of different countries and the interchange of goods, services, and commodities between or within the boundaries of different states. Commerce encompasses all industries and branches of interchange on a macroeconomics level.

Business describes individual entities' participation in all aspects of the activities of buying and selling on a microeconomics level. Business encompasses buying and selling but also further encompasses activities such as investing, procuring, accounting, and financial reporting. Business operates along specialized lines and within specific industries within the large-scale compass of commerce.