1.7.2 Auxiliaries to Trade 

(i) Transport and Communication

(ii) Banking and Finance:

(iii) Insurance

iv) Warehousing:

(v) Advertising:

Objectives of business: Although earning of profit is considered to be the primary objective, objectives are needed in every area where performance results affect the survival and prosperity of business. Some of these areas are: market standing, innovation, productivity, physical and financial.resources, earning profits manager performance and development, worker performance and attitude, and social responsibility.

Business risks: The term ‘risk’ refers to the possibility of inadequate profits or even losses due to uncertainties or unexpected events. Its nature can be explained with the help of its peculiar characteristics which are

: (i) Business risks arise due to uncertainties,

(ii) Risk is an essential part of every business,

(iii) Degree of risk depends mainly upon the nature and size of business, and

(iv) Profit is the reward for risk taking.

Business risks arise due to a variety of causes including natural, human, economic and other causes. Starting a business — basic factors: Some of the basic factors which must be considered by anybody who is to start the business are: selection of line of business, size of the firm, choice of form of ownership, location of business enterprise, financing the proposition, physical facilities, plant layout competent and committed workforce, tax planning and launching the enterprise.