Question

What are the hindrances of commerce? 

Answer 1

Hindrances of business:

1. Hindrance of Person: Manufacturers do not know the place and face of the consumers. It is the retailer who knows the taste, preference, and location of the consumers. The chain of middlemen consisting of wholesalers, agents, and retailers establishes the link between the producers and consumers.
2. Hindrance of Place: Production takes place in one centre and consumers are spread throughout the country and world. Rail, air, sea, and land transports bring the products to the place of the consumer.
3. Hindrance of Time: Consumers want products whenever they have money, time, and willingness to buy. Goods are produced in anticipation of such demands.
4. Hindrance of risk of deterioration in quality: Proper packaging and modern air-conditioned storage houses ensure that there is no deterioration in the quality of products.
5. Hindrance of risk of loss: Fire, theft, floods, and accidents may bring huge loss to the business.
6. Hindrance of knowledge: Advertising and communication help in announcing the arrival of new products and their uses to the people.
7. Hindrance of exchange: Money functions as a medium of exchange and enables the buying and selling of any product or service by payment of the right price.
8. Hindrance of finance: Producers and traders may not have the required funds at the time of their need.
9. Hindrance of developing the exact product: Research and development help in developing the exact product or service that can satisfy the specific wants of consumers and thus improve the standard of living of the people.
10. Hindrance of both selection and delivery at doorsteps: E-Commerce enables the consumer to select the product on the website, place online orders and make payment after receiving the product at the doorstep.