SS 2 Commerce (1st, 2nd & 3rd Term)

Meaning of Commercialization Commercialization, in essence, represents a fundamental shift in the operational ethos of government enterprises. It marks a strategic transformation from a predominantly service-driven orientation to one that is firmly profit-centric. This metamorphosis is emblematic of a dynamic process where the core objectives and motivations guiding these enterprises evolve significantly. At its core, […]

Meaning of Business: Business refers to the organized effort of individuals to produce, sell, or buy goods and services with the aim of generating a profit. It involves various activities such as production, marketing, sales, finance, and operations, all geared towards achieving financial success and sustaining the enterprise. Meaning of Management: Management involves the coordination

Communication is the act of sending and receiving message/information from one person or place to another. Communication could be oral, written or visual.   IMPORTANCE OF COMMUNICATION TO COMMERCE It facilitates contacts between businessmen It creates awareness for goods and services thereby increasing demand for goods/sales It facilitates the settlement of business debts e.g. Mail

A stock exchange is a specialized market where investors can buy and sell existing securities like shares, stocks, debentures and gill edge securities. It is a part of the capital market.   FUNCTIONS (IMPORTANCE) OF THE STOCK EXCHANGE It is a market for buying and selling of hand securities. it assists companies to raise capital

A presentation package is a computer software package that is used to display information usually in form of a slide show.

Examples of presentation package

Microsoft PowerPoint

Macromedia flash

Windows movie maker

DETERMINATION OF THE VIABILITY OF A BUSINESS To determine whether or not a business is viable an investigation into the following sources of information must be made. Trading, Profit and Loss Account. Balance Sheet Annual Reports of Limited companies. Stock Exchange Report relating to quoted companies. Financial Ratios prepared by accountants and investment analysts.  

The profit of a business firm could be either Gross Profit or Net Profit.   GROSS PROFIT This is the total sales less Cross Price: It is the same as mark-up which is the amount a seller adds to his cost or buying price to determine his selling price. i.e. Gross Profit   =  Sales  – 

Capital in business refers to all the assets and property of a firm.   TYPES OF CAPITAL FIXED CAPITAL: This refers to the assets of a firm which the business is carried on, and which are used continuously in the process of earning income e.g. Buildings, machinery fixtures and fittings CIRCULATING OR FLOATING CAPITAL: This

A cooperative society is any group found by individuals with common interest who contribute money in form of capital to promote the business interest of members. A cooperative society is a form of voluntary self-help business organization in which individuals, sole proprietors, traders or producers unite to foster their good and individual business interest. FEATURES

FORMS OF LIFE POLICY Whole life Assurance: Premiums are paid throughout the lifetime of the assured and the sum assured is payable only when death of the holder of the policy occurs. This policy is taken for the benefit of dependants like children , wife and relations Term assurance: This is to cover the life

Insurance is a contract whereby an insurer or underwriter agrees to compensate the insurer in the event of his suffering a loss, in return for the payment of a premium by the insured. Insurance is indeed a contractual agreement between the insured (the individual or entity seeking insurance coverage) and the insurer or underwriter (the

PRINCIPLES OF INSURANCE There are six main principles which underlie insurance contracts and which must be present for the contract to have validity. These principles are: INSURABLE INTEREST: The person who takes an out insurance policy (i.e. the insured) must have an interest in the subject matter of the insurance policy. This means that so

A company is an artificial person which is recognized in law as a separate legal entity. It is also referred to as joint stock Company that makes profit by producing or selling goods and services. It can only act though its organs like the board of directors and shareholders. NOTE: A company is an artificial

SPECIAL TRADE TERMS AND MEANS OF PAYMENT TERMS OF QUOTING PRICE. CIF (Cost, Insurance and Freight): A price quoted CIF simply means that it includes the cost of goods insurance, carriage to the port of destination but exclude delivery from the dock to the purchaser’s premises. The importer is responsible for other charges. FOB (Free

PROCEDURES OF INSURANCE CONTRACT The various processes involved in obtaining an insurance are: An Inquiry- i.e. finding out about the insurance either directly from the insurance company or agents(brokers) Proposal Form – This is issued by the insurance company. It must be completed truthfully and honestly (i.e. with utmost good faith) by the person seeking

INDUSTRIAL COMBINATION Industrial combination (or integration) is the coming together of two or more firms in order to form one large economically stable firm.  REASONS FOR INDUSTRIAL COMBINATION Firms may integrate in order to fight economic recession The desire to reap the advantage of monopoly To obtain stable prices. To obtain raw materials from direct

PUBLIC ENTERPRISES Public Enterprises are business organizations established, owned, managed and controlled by the government. They are also referred to as Public Corporations or Statutory Corporations. Examples of Public Enterprises in Nigeria are PHCN, NNPC, NRC, NPA e.t.c.  METHODS OF FORMATION OF PUBLIC ENTERPRISES Creation by Act of Legislature or a Decree Nationalization of private

TRADE ASSOCIATIONS Trade Association is an association of traders or producers engaged in the same line of trade whose major aim is to protect and safeguard the interest of their members as well as their business. Examples are M.O.A.L.S (Motorcycle Operators Association of Lagos State) FEATURES OF TRADE ASSOCIATION Membership is voluntary They are regionally

Commodity can be defined as food or other agricultural products such as wheat or cocoa and natural resources such as oil, or gas and metal such as gold or silver. It can also be standardized goods which are traded in bulk and whose units are interchangeable. They are mostly output of the primary sector that