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What are the hindrances of business? |
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Answer» 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 establish 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 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 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 helps in developing the exact product or service which 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 in the website, place online orders and make payment after receiving the product at the doorstep. |
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