Question 11

Explain any two business activities which are auxiliaries to trade.

Answer

Activities which are meant for assisting trade are known as auxiliaries to trade. Two business activities which are auxiliaries to trade are:

Transport and communication: Production of goods generally takes place in particular locations but these goods are required for consumption in different parts of the country. Transportation helps in movement of raw material to the place of production and the finished goods from factories to the place of consumption. In order to facilitate information exchange among producers, traders and consumers, communication is required.
Insurance: The other name of business is risk. Business involves various types of risks like natural risk, environmental risk, etc. insurance provides protection against such types or risk.

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