answer in brief state any four features of auxiliaries to trade
Answers
Answer:
Auxiliaries to trade are those activities which facilities business. Transport, banking, insurance, warehousing, and advertising is regarded as auxiliaries to trade.
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The auxiliaries to business are discussed below:
Transport and Communication. .
Banking and Finance. .
Warehousing.
Insurance. .
Advertising.
Packaging.
Answer:
(i) Transport and communication : Transport facilitate movement of raw materials to place of production and finished products from factories to the place of consumption. Along with the transport facility there is also a need of communication facilities so that producers trades and consumers may exchange information with one another.
(ii)Banking and Finance :Business activities cannot be undertaken unless funds are available for acquiring assets, purchases raw materials and meeting other expenses. Necessary funds can be obtained by business from a bank.
(iii)Insurance :Business involves various types of risks. Factory building, machinery, furniture etc. must be protected against fire theft and other risks. Materials and goods held in stock or in transit are subject to risk of loss Or damage.
(iv)warehousing :warehousing helps business firms to overcome the problems of storage and facilitates the availability of goods when needed. Prices are there by maintained at a reasonable level through continuous supply of goods.