Briefly explain any four auxiliaries to trade

cbse
natureofbusiness

#1

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, etc. In the same way, the hindrance of information is removed by comunication. Communication helps in exchange of information between producers, consumers and traders.
(b) Banking and finance : Banks and financial institution 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.
© Warehousing : Goods are not consumed
immediately when these are produced usually there is a time gap between production and consumption of goods special arrangement has to be made to store the goods to prevent the loss to goods and to keep them fresh. Warehousing helps the businessman to overcome the problem of storage by creating time utility.