Insurance
It involves all the activities which are concerned with protection from various kinds of risks. Business involves many kinds of risks. and insurance helps to protect the businesses from such risks. Insurance removes the hindrance of risks by protecting against various risks. Factory, building and other assets must be protected against fire, theft, burglary, etc. Employees should also be protected against the risk of accidents and occupational hazards. Insurance protects against all these risks. Businesses have to pay a nominal amount known as a premium, and in return, the amount of loss or compensation can be recovered.
Trade and Auxiliaries to Trade
Commerce is a wide term consisting of all those activities, which are necessary for sale, transfer or exchange of goods and services. Commerce includes two kinds of activities trade and auxiliaries to trade. Buying and selling of goods is termed trade. But there are a lot of activities involved between this buying and selling, which are known as auxiliaries to trade or aids to trade. These include transport, banking, warehousing, insurance, etc. Thus, commerce includes both trade and auxiliaries to trade. The link between producers and consumers is provided by commerce, which ensures distribution of goods and services. The hindrance of persons is removed by trade, by making goods available to the customers. Transport removes the hindrance of place by moving the goods from one place to another. Hindrance of time is removed by storage and warehousing by storing the goods and making them available when needed. As goods kept in storage and warehouses are prone to many risks, to remove such risks, insurance is helpful. Banking is required to remove the hindrance of capital and funds, and advertising helps producers in informing customers about various goods and services. So, commerce removes various hindrances in the process of exchange of goods and services, hence all the activities which involve the removal of hindrances, be it in respect of persons, place, time, risk, finance, etc., is done by commerce.
Table of Content
- What is Trade?
- What are Auxiliaries to Trade?
- Various Auxiliaries to Trade
- 1. Transport and Communication
- 2. Banking and Finance
- 3. Insurance
- 4. Warehousing
- 5. Advertising