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What is Commerce? – State and explain the importance of any five ancillary services to trade

(a) What is Commerce?

(b) State and explain the importance of any five ancillary services to trade.  

Explanation

(a) Commerce;n wants. Commerce is trade and aids to trade e.g advertising, insurance, banking, transportation and warehousing.

(b) Importance of five aids to trade are:

(i) Banking: Banks aids commerce by making funds available to traders and other business establishments in the form of loans and overdrafts.

(ii) Transport: This provides the means of carrying both raw materials and finished goods to where they are needed.

(iii) Advertising: Advertising ensures that the goods are brought to the awareness of the consumer.

(iv) Warehousing: This ensures the storage of goods till they are wanted.

(v) Insurance: This enables the trader to obtain compensation in the event of any loss arising from fire, accident etc.

(vi) Communication: This ensures the exchange of information from one place to another.