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Difficulty: MediumFunctions and Importance of Commerce

A textbook publishing company in Kaduna produces thousands of books for secondary schools. To ensure these books reach students across different states, commercial intermediaries facilitate the buying and selling process, thereby transferring ownership from the producer to the final users. Which function of commerce is directly demonstrated by this process?

  1. Eliminating the hindrance of person by connecting producers with ultimate consumersAnswer
  2. B
    Providing direct personal services to satisfy individual non-commercial requirements
  3. C
    Restricting economic activities strictly to the primary extraction of raw materials
  4. D
    Facilitating direct production strictly for personal and household consumption

Answer

Eliminating the hindrance of person by connecting producers with ultimate consumers
One of the fundamental functions of commerce is eliminating the hindrance of person. Producers and consumers are often separated geographically and socially; commerce resolves this gap through trade by transferring legal ownership of goods from manufacturers to final consumers.

Step-by-Step Solution

1
Identify the core commercial activity in the scenario
The scenario describes trade intermediaries facilitating buying, selling, and transfer of ownership of textbooks from publisher to students.
Understanding the specific operational obstacle being resolved helps pinpoint the corresponding function of commerce.
2
Map the activity to the corresponding hindrance of commerce
The gap between the producer who makes the goods and the consumers who need them is known as the 'hindrance of person'.
Trade acts as an essential arm of commerce to overcome the hindrance of person by facilitating exchange of ownership.

Key Concept

Functions of Commerce (Overcoming Hindrance of Person)
Estimated Time:1m 0s
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Topics

Functions and Importance of Commerce

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