Commercial Applications
Answer
Aids to trade (also called auxiliaries to business activities) are services that assist and support trade and industry by removing the various hindrances faced during the production and distribution of goods. They form an integral part of commerce.
The main aids to trade are:
Transportation — Moves goods from places of production to places of consumption, removing the hindrance of place and creating place utility.
Warehousing — Holds and preserves goods after production until they are sold, removing the hindrance of time and creating time utility.
Insurance — Protects businessmen against risk of loss due to fire, theft, accidents, floods, etc. by taking an insurance policy at a small premium.
Banking — Provides finance and credit to businessmen for their activities and facilitates transfer of money from one place to another.
Advertising — Communicates information about goods and services to prospective consumers and persuades them to buy.
Packaging — Designs and produces packages to protect products during transportation, storage and use.