Summary
Statement 1 is correct; circulation answers the question ‘where and how’ while statement 2 is incorrect; distribution does not answer the question ‘how many’.
Circulation
Circulation is the movement of goods, services and information from one place to another. It is a key element of the economy and it is essential for the efficient operation of businesses, governments and other organizations. Circulation answers the question ‘where and how’ goods, services, and information are moved from one place to another.
Distribution
Distribution is the process of delivering goods from the producer to the customer. It is the last step in the chain of production and it includes a variety of activities such as warehousing, transportation, and retailing. Distribution does not answer the question ‘how many’; it is focused on getting the goods from the producer to the customer.
E-Commerce
E-commerce is the buying and selling of goods, services, and information over the internet. It has revolutionized the way businesses and customers interact, allowing buyers and sellers to interact with each other in a virtual marketplace. E-commerce is a key component of the circulation of goods, services, and information, as it enables buyers and sellers to interact with each other quickly and conveniently.
Conclusion
Statement 1 is correct; circulation answers the question ‘where and how’ while statement 2 is incorrect; distribution does not answer the question ‘how many’.
Related Questions
- What is the importance of circulation?
- What are the components of distribution?
- What is the difference between circulation and distribution?
- What are the benefits of e-commerce?
- What is the role of e-commerce in the circulation of goods?
- What is the importance of warehousing in the distribution process?
- What are the advantages of online retailing?
- What are the advantages of physical retailing?
- What is the difference between e-commerce and traditional commerce?
- What are the challenges of e-commerce?