Providing transport facilities by a Transport Company is:
(a) An Industry (b) A Trade
(c) An Auxiliary to trade (d) None of the above.
Answers
Answer: (c) An Auxiliary to trade
Explanation:
An Auxiliary to trade refers to activities which facilitate trade and industry. In simple words these are services which helps in carrying out trade as well as industrial activities.Through these services one can overcome the difficulties which lies in the line of production and distribution of the product.
Transportation is an auxiliary to trade because it provides service which help in carrying goods form the manufacturer/producer to the retailers/traders and finally to consumers. It plays an important role in overcoming the geographical obstacles and distance and helps in quick and efficient exchange of goods.
Transportation helps in providing wheels to commerce as it helps the manufacturer/ producer to sell his goods both nationally as well as internationally.
Hope this helps.