Examkin

Question

Difficulty: EasyMeaning, Scope, and Characteristics of Commerce

The scope of commerce is restricted solely to the buying and selling of physical goods, excluding supportive activities such as warehousing, transport, and insurance.

Answer: Answer

Answer

The statement is False because the scope of commerce comprises both trade and aids to trade.
The statement is false because commerce includes not only trade (buying and selling) but also all aids to trade, such as warehousing, transport, insurance, and banking, which make distribution possible.

Step-by-Step Solution

1
Identify the branches that form the scope of commerce.
Commerce is structured into two main branches: Trade and Aids to Trade (auxiliaries).
Defining the structure of commerce establishes what activities fall inside its scope.
2
Analyze the inclusion of auxiliary services.
Services such as transportation, warehousing, banking, and insurance directly assist the movement and protection of goods from producers to consumers.
Because these services facilitate distribution, they are an integral part of commerce rather than separate from it.

Key Concept

Scope of Commerce (Trade and Aids to Trade)
Rate this question

Topics

Meaning, Scope, and Characteristics of Commerce