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There are two types of activities in commerce namely 1. Trade and 2. Auxiliaries to trade.
Buying and selling of goods is called trade whereas auxiliaries to trade involves activities such as banking, communication, transportation and advertising. Commerce enhances the link between consumers and producers.
1. Banking and Finance: It is one of the most important requirement to run any business. Without finance the free movement of goods is restricted. A banking arrangement helps in availability of credit to traders thus acting as an auxiliary to trade.
2. Warehousing: It refers to storing of goods till the time it is ready to be transported. Warehousing ensures proper storage and facilitates easy availability of goods.
3. Transportation: It helps producer in purchasing of goods and other necessary items from different places and also sell it in different areas. It helps in buying and selling of goods.
4. Advertising: Advertisements through various channels such as radio, TV helps in reaching the information to the audience and increase sale
5. Insurance: There will be risks in business and to cover against them you need to get insured.