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 Form 3 business studies revision questions and answers set 4

Explain five reasons that justify insurance as an aid to trade

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Answer Text:
-Insurance companies provide loans to life policy holders which can be used for expansion of businesses
-Traders are able to insure their stock and premises
-Insurance companies put up building which can be used as trading premises
-Insurance encourages people to venture into businesses by covering losses that may befall them during their operations
-Taxation revenue to the government from the insurance companies can be
used in promoting the trading activities