Read the given below two statements and mark the correct answer.

Assertion (A): Activities which are meant for assisting trade are known as auxiliaries to trade.
Reason (R) : These activities are generally referred to as product.

Assertion (A) is true but Reason (R) is False

The correct answer is option 3- Assertion (A) is true but Reason (R) is False.

Assertion (A): Activities which are meant for assisting trade are known as auxiliaries to trade.- This is true as aids to trade includes activities which help in doing trade.
Reason (R) : These activities are generally referred to as product. - This is false as these activities are referred as service not product.

Activities which are meant for assisting trade are known as auxiliaries to trade. These activities are generally referred to as services because these are in the nature of facilitating the activities relating to industry and trade. Transport, banking, insurance, warehousing, and advertising are regarded as auxiliaries to trade, i.e., activities playing a supportive role. In fact, these activities support not only trade, but also industry and, hence, the entire business activity. Auxiliaries are an integral part of commerce in particular and business activity in general. These activities help in removing various hindrances which arise in connection with the production and distribution of goods.