Which hindrance of commerce is highlighted in the following activities? a. It removes the geographical separation between producers and consumers. b. Warehousing facilitate holding of goods till they are required. c. Advertising informs the consumers about the goods and services available in the market. d. Trade provides an organized market where buyers and sellers can contact each other. e. Banking and financing institutions provide necessary funds to carry on business activities. f. There exist time gap between production and consumption of goods. g. Insurance protects the goods in case of damage due to theft, fire, accidents.

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Solution

Dear student,

a) The hindrance that is highlighted is 'hindrance of place'. Commerce provides transportation facilities that enables the producers to take their goods to the market place and sell them to the consumers.

b) The hindrance that is highlighted is 'hindrance of storage'. With the modern technology storage of goods in large quantities has become possible.

c) The hindrance that is highlighted is 'hindrance of person'. Advertising acts as a medium to provide the various useful information to the consumers about the product'. Hence, promotes trade.

d) The hindrance that is highlighted is 'hindrance of place'. By providing an organised market structure the commerce enable easy exchnage of goods and services between the producers and the consumers.

e) The hindrance that is highlighted is hindrance of finance'. Banking facilities enables easy availability of credit facilities to the traders.

f) The hindrance that is highlighted is 'hindrance of risk'. As there exists a time gap between the production and sale of goods so there is always a risk of damage of goods. Insurance covers this risk.

g) The hindrance that is highlighted is 'hindrance of risk'. As there exists a time gap between the production and sale of goods so there is always a risk of damage of goods due to theft, fire, etc. Insurance covers this risk.

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10. A type of industry which takes out the wealth from the earth.

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