Mention three aids to trades.
Answers
The aids to trade are as follows :
Warehousing - Warehousing is an act of carefully storing goods in warehouses to sell or distribute them later. Warehousing is essential because there is a time gap between production and consumption. Hence, it becomes necessary to make arrangements for storage or warehousing. Therefore, goods need to be stored in warehouses until they are demanded.
Insurance - Insurance reduces the problem of risks involved in the trade. Businesses are subjected to risks and uncertainties. These are inevitable in the field of business. Risks may be due to fire, theft, accident or any other natural calamity. Insurance companies who act as risk bearer cover such risks. Insurance tries to reduce many risks by spreading them out over a greater number of people.
Advertising - Advertising fills the knowledge gap and it solves the difficulty of information. Exchange of goods and services possible only if producers can bring the products to the consumers. Advertising and publicity are important media of mass communication. Advertising helps consumers to know about the various brands manufactured by several manufacturers.
Communication - Communication means transmitting or exchange of information from one person to another. It is necessary to communicate information from one to another to finalize and settle the terms of sales such as prices of goods, discount allowed, the facility of credit, etc. Modern means of communication, play an important role in establishing contact between businessmen, producers and consumers.
Transport - In the modern times there is a vast distance between centers of production and the centers of consumption. This difficulty is removed by an important aid to trade known as Transport. Transport creates place utility. There are several types of transport such as Air, Water and Land transport. The geographical distance between producers and consumers is removed with the help of transport.
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