Question

Difficulty: MediumMeaning, Scope, and Characteristics of Commerce

Commercial activities are strictly confined to the direct purchase and sale of tangible goods, excluding support services like warehousing and insurance.

Answer: Answer

Answer

False
The statement is false because commerce is not limited to buying and selling physical goods; it broadly incorporates all auxiliary functions—including warehousing, transport, insurance, and banking—that ensure goods and services move efficiently from producers to ultimate consumers.

Step-by-Step Solution

1
Analyze the scope and definition of Commerce.
Commerce is defined as Trade plus Auxiliaries to Trade.
To evaluate the statement, one must identify all essential components included in commerce.
2
Compare the statement's claim against commercial scope.
The statement restricts commerce to direct trade only and excludes support services, which is incorrect.
Auxiliary services like warehousing and insurance are fundamental aids to trade that form an indispensable part of the scope of commerce.

Key Concept

Scope of Commerce (Trade vs. Auxiliaries to Trade)
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