Auxiliaries to trade

Auxiliaries to trade

Entrepreneurship

ADVERTISING AND SALESMANSHIP

* In today’s competitive market it is not possible for a businessman to sit and wait for customer after investing heavily in business:-

* to attract customers towards his product, a producer has to provide full knowledge of his product to the customers.

* Here comes advertisement and salesmanship which enhances:-

(i) The knowledge of the customer about the products available in the market.

(ii) Helps customers in making a decision about the purchase of the product properly and sensibly.

* In this way, advertisement eliminates the hindrance of information.

Warehousing

Banking

* Goods are produced in anticipation of demand.

*They May also be produced at a time when they are not needed.

* So there is a need to store goods up to a time these are not required for consumption.

* The hindrance of time is overcome with the help of warehouses.

* Storage creates time utility helping producers to concentrate on non-stop production of goods.

* It is because of this activity that entrepreneurs can keep their stocks safe custody during the dull seasons.

* They can carry on production throughout the year and can sell their product whenever there is efficient demand.

Insurance

Business is full of risks and uncertainties. Risk in transporting goods, Risk to goods due to theft, fire, damage risk due to death of key employee, etc. Insurance removes the hindrance of risk by providing cover against it. The insurance coverage has given a filip not only to national but also to the international trade.

Finance is the backbone of business; it is required from the moment when raw material is purchased till the sale of the finished product.

Business needs continuous supply of finance to meet out multiple and recurring demand of :-

 Commencement

 Day to Day operation

 Expansion

 Modernization

 Diversification

 Research and Development

 Innovation

THANK YOU !!!!

QUESTION TIME !!!

Q1.What are auxiliaries?

Q2.Mention the different types of auxiliaries?

Q3.List the different types of modes of transportation?

Q4.Define any one type of auxiliary?

Q5.How does advertisement and salesmanship enhance the customer?

An entrepreneur is usually short of self-owned funds and needs to compensate by borrowing from outside.

Banks came to the rescue and are regarded as trader in money and credit.

Banks not only fulfill the fund requirement of entrepreneur, but

also provide services 134

 Guidance and counseling

 Guarantor in foreign trade

 Underwriters for new enterprises

 Custodian of documents etc. in foreign trade.

Thus banks removes the hindrance of finance.

Transportation

what are auxiliaries ?

Transport helps in removing the hindrance of place in exchange of goods and services.

Producers and purchasers are geographically scattered.

Transportation forms a link so that the commodities can be carried from their place of production to the place to the place of their consumption. The physical movement of goods or passengers from one place to another is called transportation.

Modes:

(i) Railways

(ii) Roadways

(iii) Airways

(iv) Waterways

(v) Pipelines

MODES

In course of exchange of goods, an entrepreneur may come across several problems

regarding finance, knowledge, time, person, and place, requiring immediate solution. The

flow of goods/services from producers to consumers is obstructed by many

environmental factors. All these difficulties are overcome with the help of various

agencies or support systems known as 'Aids to Trade'