Commercial Applications
Which of the following hindrances does not arise in the exchange of goods and services?
- Hindrance of production
- Hindrance of time
- Hindrance of risk
- Hindrance of finance
Answer
Hindrance of production
Reason — Commerce removes the hindrances of person, place, time, risk, finance, and knowledge that arise in the exchange of goods and services. 'Hindrance of production' is not a hindrance in the exchange — production is an industrial activity, not an exchange activity. The hindrances of time, risk, and finance are removed by warehousing, insurance, and banking respectively.
Related Questions
Which of the following statements is wrong regarding industry?
(i) Industry includes all those business activities which involve extracting, multiplying, growing, processing, assembling and constructing useful products.
(ii) The term 'industry' refers to a group of firms producing similar or related goods.
(iii) The business enterprises which undertake industrial activities are known as industrial enterprises.
(iv) People who own and control industries are called manufacturers.
- Only (i) is wrong
- Only (ii) is wrong
- (iv) is wrong
- All of them are wrong
Which of the following statements is wrong regarding industry?
(i) Extractive industries are those industries which are concerned with the discovery and extraction of natural resources.
(ii) Genetic industries are those industries which are concerned with reproducing and multiplying plants and animals.
(iii) Manufacturing industries are those industries which are concerned with providing commercial services.
(iv) Industries which employ complex technology and long production cycles are called heavy industries.
- (i) is wrong
- Only (iii) is wrong
- (i), (ii), (iv) are wrong
- None of them
Statement I: Trade means the sale, transfer or exchange of goods may be for cash or credit.
Statement II: Traders serve as link between producers and consumers.
- Statement I is wrong
- Statement II is wrong
- Both I and II are correct but II is not an explanation of I
- Both I and II are correct and statement I is an explanation of II
Entrepot Trade means
- Importing goods from one or more countries with the purpose of exporting them to some other country or countries.
- Purchasing goods and services from other countries.
- Selling goods and services to other countries.
- None of these