Activities which assist or support trade are known as auxiliaries to trade.
Following is the description of auxiliaries to trade
(i) Transportation It refers to the conveyance of goods and passengers from one place to another, (t facilitates trade by assembling and distributing goods. It overcomes the barrier of distance and creates place utility. Transport widens the market and helps to equalise prices at different places.
(ii) Insurance Business involves various types of risks like risk of fire, theft, accident or loss due to damage of goods. These risks can be covered by taking ah insurance policy. Businessmen have to pay a nominal amount of premium and they can recover the amount of loss or damage from the insurance company. Insurance also provides protection to employees against the risk of occupational hazard and accidents.
(iii) Banking There is usually a time gap between production/purchase and sale of goods. During this period, businessmen need funds to carry on their business. Banks and other financial institutions provide the required credit in various forms. It also facilitate business activity by providing safe and quick means for the remittance of money. They collect bills, cheques, etc of their customers.