Question

Explain all auxiliaries to trade
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Answer 1

Explanation:

Auxiliaries to trade are those activities which facilities business. Transport, banking, insurance, warehousing, and advertising is regarded as auxiliaries to trade.

Answer 2

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★ Auxiliaries to trade

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1. Banking and finance :

• Business activities cannot be undertaken unless funds are available for acquiring assets, purchasing raw materials and meeting other expenses. Necessary funds can be obtained by businessmen from a bank.

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2. Insurance :

• Business involves various types of risks. Insurance provides protection against all the risks.

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3. Transportation :

• Transportation makes for speed and efficiency in exchange. It creates place utility.

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4. Warehousing :

• Usually, goods are not sold or consumed immediately after production. They are held in stock to make them available as and when required. Warehousing helps businesses firms to overcome the problem of storage.

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5. Communication :

• Communication services like postal services and telephone facilities are helpful to the business for establishing links and for quick exchange of information.

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6. Advertisement :

• Advertising is one of the most important methods of promoting the sale of products, particularly, consumer goods, like electronic and automobile goods, soaps, detergents, etc. Advertisinghelps in providing information about available goods and services and inducing customers to buy particular items.

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