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Mr. Sharma, a farmer, grows wheat and sells it to a local flour mill. The flour mill processes the wheat into flour and sells it to a grocery store. - Commercial Applications

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Question

Mr. Sharma, a farmer, grows wheat and sells it to a local flour mill. The flour mill processes the wheat into flour and sells it to a grocery store. The store sells the flour to customers in the neighbourhood.

How does commerce facilitate the exchange of goods in this scenario?

Short Answer
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Solution

Commerce facilitates the smooth movement of goods from production to consumption.

  • It ensures that a flour mill can obtain wheat from farmers efficiently.
  • It provides logistics, storage, and transportation to move flour from the mill to grocery stores.
  • It enables grocery stores to make the flour available to customers at the right place and time.

Thus, commerce bridges the gap between producers and consumers.

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Chapter 1: Introduction to Commercial Organisations - EXERCISES [Page 21]

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C. B. Gupta Commercial Applications [English] Class 9 ICSE
Chapter 1 Introduction to Commercial Organisations
EXERCISES | Q III. 20. (ii) | Page 21
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