Discuss any three functions of commerce.

1. Hindrance of person:

This hindrance refers to the lack of contact between producers and consumers. The producer is faced with the problem of finding the buyers who need the goods he has produced and who are able and willing to buy such goods.

The consumer does not know the source of supply of goods which would satisfy his needs at prices he can afford. Commerce removes this hindrance by means of trade.

Trade provides an organised market where the buyers and sellers can contact each other. It saves both producers and consumers from the time-consum­ing and expensive exercise of locating each other.

2. Hindrance of place:

A major problem faced by producers is to send their goods to distant places without loss through theft, pilferage, damage, etc. Commerce solves this problem by means of transport, packing and insurance.

Modern means of transport carry goods too far-of places quickly and safely. Packing of goods helps to preserve their quality in transit and storage. With the help of packing, businessman can preserve the quality of goods. Thus, transportation and packing are useful commercial activities.

3. Hindrance of time:

In modern industry goods are produced on a large-scale in anticipa­tion of demand. There is usually a time gap between the production and consumption of goods. Therefore, it becomes necessary to store the goods until they are sold.

This problem is solved by warehousing or storage. Warehouses provide suitable storage facilities to protect the goods from fire, rain, pests, etc. Warehousing is, thus, an integral part of commerce.