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Question

Difficulty: EasyMeaning, Scope, and Characteristics of Commerce

Musa operates an enterprise in Enugu that transports harvested crops from rural farm centers to urban markets and arranges transit insurance for the cargo. Which main branch of commerce is demonstrated by these supportive activities?

  1. Aids to tradeAnswer
  2. B
    Home trade
  3. C
    Direct services
  4. D
    Extractive production

Answer

Aids to trade
The correct answer is aids to trade because transportation and insurance are auxiliary services that assist, support, and facilitate the distribution of goods from producers to consumers.

Step-by-Step Solution

1
Identify the nature of the activities described in the scenario.
Transportation and insurance are identified as commercial support activities rather than direct buying/selling or raw material extraction.
Commerce is divided into two primary branches: trade (buying and selling) and aids to trade (services that facilitate buying and selling).
2
Classify the support activities into the correct commercial subdivision.
Transport moves goods from producers to consumers, and insurance covers risk, both of which fall under aids to trade.
Aids to trade assist in bridging spatial, temporal, and risk barriers in the exchange of goods.

Key Concept

Branches of Commerce: Trade and Aids to Trade
Estimated Time:45s
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Topics

Meaning, Scope, and Characteristics of Commerce