Without storing commercial functions cannot be imagined. Goods must be stored before they are sold. It is needed at once after production. It refers to holding the goods when they are produced until they are consumed. Storing creates time utility. There are many kinds of stores and warehouses where surplus goods are stocked awaiting their demand.
It allows seasoning, aging, ripening and converting raw material into work in process into finished goods. The place where goods are held are known as store or warehouse, shops or showrooms, granaries cupboards are all different forms of stores or storerooms. Cold storage a type of warehouse increase the life of perishable goods. Storage is also necessary when goods are in surplus or out of season awaiting demand in future.
Business houses use the facility of different types of stores and warehouses some of which are bonded warehouse, public warehouse, private warehouse and cold storage.
Commerce extends to getting information from various sources and media. It requires information at every stage. In production, in buying, in selling, and in research one needs exact and latest information. Well informed businessman is more successful than an uninformed person. Information activity of commerce also includes advertising without which a major business activity cannot be successful.
Like finance information is also life blood of an organization. The businessman has to gather, classify, and analyze information to make sound decisions. The quality and soundness of decisions depends on having the latest and relevant data.
It is the key to success and no business can thrive without having right and up to date information. It provides a charismatic basis for sound decisions leading the business to a great success and voluminous profits.
It can be classified as follow:
1. Primary Information: it is first hand information received through research, study, analysis, observations, experiments, and experience.
2. Secondary Information: it is obtained through the other sources that includes libraries, books, newspapers and data collected by others.
Large business houses report to their own research and analysis in establishing primary information. Advertising is also a significant means of providing and receiving information and helps sell the product.
The modern fairly large companies use management information system (MIS) with the help of their computers. MIS provides necessary information on time. Informs of risk well ahead of time, helps face extraordinary challenges, interprets market information, and aids in preparing policies.
Risk is inherent to business. Business risks include theft, fire, sinking of the ship, change in prices, government policies, and restrictions, strikes, lockouts, change in fashion, inventions, changing taste of customers, and drop in sales.
Risk may be classified as:
1. Insurable Risk: Those risks which can be covered under an insurance policy are referred to insurable risks and entail theft, fire and sea hazards.
2. Uninsurable Risk: Those risks that can not have insurance cover are knowns as uninsurable risks. They include unfavorable changes in price, fashions, consumer tastes, and competition. These risks arise out of marketing activities and can only be minimized by better and effective management.