Question

Q2 Tushar runs a well known fashion store
(dealing in women wear) in Mumbai. He
procures garments from different fashion
designers and sells them to dealers all over the
country. He also owns a godown to hold the
surplus stock. Due to sudden increase in
demand & to maintain stock for peak period ,
Tushar took a loan of rs 10,00,000 from Kotak
bank. He has also taken an insurance policy
worth rs 2 crores for his business.
Identify the 'Auxiliaries of trade' being used by
Tushar in his business by quoting lines from the
given case.​

Answer 1

As given, Tushar is the owner of a well-known fashion shop in Mumbai that specializes in women's clothing. He buys clothes from a variety of designers and sells them to retailers across the country. He also owns a godown where he keeps the excess stock. Tushar sought a loan of Rs 10,00,000 from Kotak bank to meet the sudden rise in demand and to keep stock for the peak season. For his business, he has also taken up a Rs 2 crore insurance coverage. Using lines from the given instance, the 'Auxiliaries of trade' that Tushar employs in his firm are Transport, Banking, Insurance, and warehousing.

• Auxiliaries to trade refer to the elements that are required to transmit things from their point of origin to their point of consumption. To put it another way, these are critical services and functions that aid the business.
• Here in the line "He also owns a godown" it is clearly shown that he has a warehouse. He also took a loan from some bank that refers that, he is using the Banking service. "He has also taken an insurance policy" indicates he employs an 'Auxiliaries of trade', Insurance. He runs a sore in Mumbai and he nee to sell them all over the country. Means transport.

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