Question

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

Answer 1

The statement “Commerce consists of all those activities which are involved in the removal of hindrances of person, place and time” means that commerce facilitates the exchange of goods and services by overcoming obstacles that can prevent goods from reaching consumers efficiently.

1. Hindrance of person: This refers to the challenge of connecting producers and consumers. Commerce removes this hindrance through trade, where intermediaries like wholesalers, retailers, and agents help link producers with consumers. This ensures that goods are available to the right people who need them.
2. Hindrance of place: The hindrance of place refers to the difficulty in moving goods from where they are produced to where they are needed. Commerce addresses this obstacle through transportation services, such as railways, shipping, and trucks, which help move goods from production areas to consumer markets.
3. Hindrance of time: The hindrance of time refers to the issue of goods being available when needed. Commerce solves this problem through warehousing or storage, where goods are stored until they are required, ensuring they are available for sale even when supply and demand do not match immediately.

In summary, commerce facilitates the smooth exchange of goods and services by addressing these three main obstacles, ensuring goods are available to consumers at the right time, in the right place, and through the right people.