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Entrepreneurship

Class-XI

Ch-5

Ln-1

Code: 241505010111

A market involves:

a. Buying and selling of the products or commodities or services

b. The buyers and sellers meet either in person or through any other means of communication like
email, fax or phone etc.

c. The buyers and sellers may be involved during the transaction. However in case of e-commerce
the buyer and seller need not be involved.

d. The demand and supply reach an equilibrium state and the prices are competitive

The concept of market is very solid and dynamic and has gone through a lot of change from the olden
days to till date. They have a very strong influence on the economy. Markets can make the economy
very powerful and protect it from fluctuations.

Markets organized in the olden days?

In the olden days, traditional markets were in place. They existed when the economy was driven
completely by farming and handicrafts. Due to lack of sophisticated distribution channels, the market
was confined only to the surrounding areas.
AMA (American Market Association) defined the traditional market as “The place where a particular
commodity is concentrated for sale”

As per this definition, a market comprises of
Place: The commodities are accumulated at a specific place. The buyers and sellers gather at this place
to conduct the transactions.
Different markets for different commodities: A particular place was used for buying or selling a
commodity and a different place was used for a different commodity. Thus livestock had a market place,
clothes were available in a different market place and handicrafts were sold in a different market place.

Activities are performed as part of a business

The activities performed by a business can be majorly segregated into the following two categories.

1. Industrial activities: Industrial activities include

a. Accounting