Question

Nikhil wants to start a wholesale business of stationery items. But he is hesitating as it will involve hindrances related to finding consumers, moving goods from place of production to market, storing goods because of time gap between production and consumption, risk of theft, fire, accidents, procurement of capital to finance above activities, providing information to the consumers about products etc. He approaches his friend Anant to discuss his problem. Anant, who himself imports the electric appliances for the purpose of exporting them to other countries, advises Nikhil to carry on with his plan and explains to him various functions performed by the second limb of business i.e., Commerce.
Anant elaborates on various advantages of 'trade' and 'auxiliaries to trade' . After getting convinced by the advice given by Anant, Nikhil starts the business named Nikhil Ltd. and finds no major problems at all in converting his desire into a business venture. Nikhil gets his company registered under the Companies Act 2013.
(a) Name the part of commerce which exclusively helps in the process of trading the goods and services.
(b) Name the type of trade under which Anant was doing his business.
(c) Name the service which helps Nikhil to remove the hindrance of storing the stationery items.
(d) Name the service which helps Nikhil to remove the hindrance of place.

Answer 1

(a) The part of commerce which exclusively helps in the process of trading the goods and services is Trade.

(b) The type of trade under which Anant was doing his business is External Trade.

(c) The service which helps Nikhil to remove the hindrance of storing the stationery items is Warehousing.

d) The service which helps Nikhil to remove the hindrance of place is Transport.