Commercial Applications
Statement I: A retailer delaying the purchase of seasonal goods for sale is addressing the hindrance of time in commerce.
Statement II: Warehousing solves the problem of storing goods until they are sold.
- Both I and II are correct
- Both I and II are wrong
- Only I is correct
- Only II is correct
Answer
Only II is correct
Reason — Statement I is wrong because the hindrance of time is not addressed by a retailer 'delaying' the purchase of seasonal goods — it is addressed by storing goods in warehouses until they are demanded. Statement II is correct — warehousing holds and preserves goods from the time of production until they are sold, thereby creating time utility and removing the hindrance of time.
Related Questions
Assertion (A): The agricultural sector is a primary industry.
Reasoning (R): It involves the extraction and production of raw materials directly from natural resources.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A
- Both A and R are true but R does not explain A
Assertion (A): Private sector enterprises focus primarily on profit maximization.
Reasoning (R): Profit motive is the driving force behind the decisions and operations of private businesses.
- A is true but R is false
- A is false but R is true
- Both A and R are true and R explains A
- Both A and R are true but R does not explain A
Which of the following correctly distinguishes between commerce and trade?
- Commerce involves production, while trade deals with distribution.
- Commerce involves distribution and auxiliary services, while trade focuses on buying and selling goods.
- Trade creates time utility, while commerce creates form utility.
- Commerce is a subset of trade.
If an organisation is funded entirely by private individuals and operates solely for earning profits, it would be classified under public sector enterprises.
- True
- False