"Commerce consists of all those activities which are involved in the removal of hindrances of person, place and time". Explain.

The statement, given by James Stephenson, highlights that commerce is the system of activities that removes the various hindrances arising in the exchange of goods and services between producers and consumers.

1. Hindrance of Person — This refers to the lack of contact between producers and consumers. The producer does not know who will buy his goods, and the consumer does not know the source of supply. Commerce removes this hindrance through trade.

2. Hindrance of Place — Goods are produced in one place but consumed in different places. For instance, tea is produced in Assam but consumed all over India. Commerce removes this hindrance through transport, which carries goods from places of production to places of consumption safely and quickly, creating place utility.

3. Hindrance of Time — In modern industry, goods are produced in anticipation of demand, on a large scale. There is usually a time gap between production and consumption. Commerce removes this hindrance through warehousing — warehouses provide suitable storage facilities to protect goods from fire, rain, and pests until they are demanded, creating time utility.