Briefly explain any four auxiliaries to trade.
Briefly explain any four auxiliaries to trade.
Following are the important auxiliaries to trade :
(a) Transportation and communication : Production of goods generally takes place in particular location. But these goods are demanded for consumption in different parts of the country. This hindrance of place can be removed by transportation - road, rail or coastal shipping. In the same way, communication helps in exchange of information between producers, consumers and traders.
(b) Banking and finance : Banks and financial institutions provide credit facility to provide finance for smooth flow of business activities. Other facilities like collection and deposit of cheques, issue of bank draft, discounting of bills of exchange, etc. are also provided by banking institutions.
(c) Warehousing : Goods are not consumed immediately when these are produced. Usually there is a fine gap between production and consumption of goods. Special arrangements have to be made to store the goods to keep them fresh. Warehousing helps businessmen to overcome the problem of storage by creating time utility.
Following are the important auxiliaries to trade :
(a) Transportation and communication : Production of goods generally takes place in particular location. But these goods are demanded for consumption in different parts of the country. This hindrance of place can be removed by transportation - road, rail or coastal shipping. In the same way, communication helps in exchange of information between producers, consumers and traders.
(b) Banking and finance : Banks and financial institutions provide credit facility to provide finance for smooth flow of business activities. Other facilities like collection and deposit of cheques, issue of bank draft, discounting of bills of exchange, etc. are also provided by banking institutions.
(c) Warehousing : Goods are not consumed immediately when these are produced. Usually there is a fine gap between production and consumption of goods. Special arrangements have to be made to store the goods to keep them fresh. Warehousing helps businessmen to overcome the problem of storage by creating time utility.
