Commercial Applications
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
Answer
Both I and II are correct but II is not an explanation of I
Reason — Both statements are correct. Statement I defines what trade is — the sale, transfer or exchange of goods for cash or credit. Statement II describes the role of traders as a link between producers and consumers. These are two separate, parallel facts about trade — one defines trade itself and the other describes the role of traders. Statement II does not explain Statement I; they stand independently as two correct facts.
Related Questions
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
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
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
What is the meaning of 'Organisation'?
- An institutional arrangement to carry on some business activity.
- It is an incorporated association of persons created by law.
- A group of persons who join together to achieve some common objectives.
- None of these