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Difficulty: EasyFunctions and Importance of Commerce

In commerce, auxiliary services play vital roles by eliminating specific business hindrances. Match each commercial auxiliary service on the left with the primary hindrance it overcomes on the right.

  • WarehousingHindrance of time and seasonal supply
  • InsuranceHindrance of risk and financial loss
  • TransportHindrance of distance and location
  • BankingHindrance of finance and capital accumulation

Answer

Warehousing matches with the hindrance of time and seasonal supply; Insurance matches with the hindrance of risk and financial loss; Transport matches with the hindrance of distance and location; Banking matches with the hindrance of finance and capital accumulation.
Each commercial auxiliary service addresses a specific obstacle in the exchange process: Warehousing stores goods until needed (time), Insurance absorbs business risks (risk), Transport moves products across locations (distance), and Banking provides funds and payment channels (finance).

Step-by-Step Solution

1
Identify the primary function of each auxiliary service listed on the left.
Warehousing relates to storage, Insurance to risk management, Transport to movement of goods, and Banking to financial resources.
Auxiliary services in commerce exist specifically to bridge gaps between producers and consumers.
2
Connect each service to the specific hindrance it resolves.
Storage eliminates time barriers; risk cover eliminates risk barriers; movement eliminates geographical distance barriers; capital provision eliminates financial barriers.
Matching each service to its fundamental function clarifies how commerce facilitates smooth trade operations.

Key Concept

Commerce eliminates various hindrances to trade through specialized auxiliary services.
Estimated Time:45s
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Topics

Functions and Importance of Commerce

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