Commerce Questions and Answers

land is a different type of factor of production than others. it possesses the following characteristics:-

1) free gift of nature- land is a gift of nature given to man free of cost

2) land is limited in supply- other factors of production can be increased in supply to a greater or lesser extent. but it is impossible to increase the supply of land

3) land is a primary factor of production- in every kind of production, we have to make use of land

4) land is a passive factor of production- land is a passive factor of production because it cannot produce anything by itself

5) land is permanent- land is indestructible

6)land is immovable

7) land varies in fertility

A contract is an agreement or law binding the creation of business and enforceable in law.

Is an unconditional written order from one person to another to pay a specified sum of money to a designated person.

This protects the consumers from false description of goods in terms of quality, quantity, size, place and date of manufacture

Commerce provides the advantages of specialisation. It helps to better satisfy human wants by collecting and distributing goods. Commerce provides the necessary link between the producers and consumers of goods.