Which of the following removes hindrance of persons?

Trade

The correct answer is option 2- trade.

All activities involving the removal of hindrances in the process of exchange are included in commerce. The hindrances may be in respect of persons, place, time, risk, finance, etc. Commerce is said to consist of activities of removing the hindrances of persons, place, time, risk, finance and information in the process of exchange of goods and services.

* The hindrance of persons is removed by trade, thereby, making goods available to consumers from the possession or ownership producers. Trade is an essential part of commerce. It refers to sale, transfer or exchange of goods either physical or virtual. It helps in making the goods produced available to the consumers or users. These days’ goods are produced on a large scale and it is difficult for producers to themselves reach out to individual buyers for selling their products. Businessmen are engaged in trading activities to make the goods available to consumers in different markets. In the absence of trade, it would not be possible to undertake production activities on a large scale.

* Transport removes the hindrances of place by moving goods from the place of production to the markets for sale.

* Banking removes hindrance of finance.

* Storage and warehousing activities remove the hindrance of time by facilitating holding of stocks of goods to be sold as and when required.