Share this:

THIRD TERM E-LEARNING NOTE

 

SUBJECT: COMMERCE   CLASS: SS 2

 

SCHEME OF WORK

 

WEEK  TOPIC

1-2 Capital – meaning, types and structure

  1. Profit – meaning, types and structure
  2. Business Finance – the financial position of business firms.
  3. The Stock Exchange
  4. Communication

 

 

WEEK ONE AND TWO

TOPIC: CAPITAL

CONTENT

1.  Definition

2.  Types (forms) of capital

3.  Importance of Working Capital

ecolebooks.com

4.  Calculation of types of Capital

 

CAPITAL

Capital in business refers to all the assets and property of a firm.

 

TYPES OF CAPITAL

  1. 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
  2. CIRCULATING OR FLOATING CAPITAL: This is the capital which is required regularly for production and which is always changing as the business operates e.g. raw materials finished goods (i.e. stock, cash, debtors etc).
  3. LIQUID CAPITAL: This is made up of cash-in-hand, debtors and bank balances of a firm. These are liquid assets because they can easily be converted into cash.
  4. WORKING CAPITAL: This is the excess of the current assets over the current liabilities. In calculating working capital therefore, the current liabilities are subtracted from the current assets.
  5. CAPITAL EMPLOYED: This is the amount of capital invested by the owner or owners into the business and is calculated by subtracting current liabilities from the total assets.

 

IMPORTANCE OF WORKING CAPITAL

1.  Working capital helps to determine the liquidity position of an organization.

2.  It determines the fund available for the day to day running of the business.

3.  Since it is used to purchase stock for sale more working capital indicates higher profit.

4.  It checks against tying down of capital.

5.  It is used to determine the solvency of the organization.

6.  It indicates that the organization is not relying on finances from suppliers.

 

REVIEW QUESTIONS

1.  Explain what is meant by

 (a) Working Capital (b) Capital Employed

2.  How are each of the above calculated?

 

TYPES OF CAPITAL (contd.)

f.  OWNERS EQUITY OR NET WORTH OR CAPITAL OWNED: This refers to the excess of total assets over liabilities i.e. excess of fixed and current assets over total liabilities (long term and current liabilities).

g.  LOAN CAPITAL OR CAPITAL BORROWED: This refers to long-term liabilities. For example debenture stocks long term loans from banks repayable after one year.

h.  RESERVE CAPITAL: This is the part of issued capital not yet called-up. It is also know as uncalled capital. Reserve Capital = Issued Capital – Paid Up Capital

i.  Nominal or Authorized Capital: This is the maximum amount of capital which a company is authorized to raise as stated in its memorandum of Association .it is also refer to as nominal capital or registered capital

j.  Issued capital: This is that part of the authorized capital that has been issued to shareholders for subscriptions. It may be the same or less than the authorized capital.

k.  Called-up capital: This is the part of the issued capital that shareholders have been required to pay up to date. E.g. A company which has issued shares of =N=115,000 out of the normal capital of =N= 200,000 may require shareholders to pay =N= 0.60 for the time being out of the =N=1 due on each share. In this case, the called-up capital will be =N=90,000 and the remaining =N=60,000 will be the uncalled capital

l.  Paid up capital: This is the part of the called up capital which shareholders have actually paid for .It refers to the sum actually received in cash by the company when it called on the shareholders to pay E.g. out of the =N=90,000 called up, what was actually paid up by (or received from) shareholders might be =N=87,000.

m.  Uncalled capital: This is the total amount that has not been called up on the issued capital .It refers to the balance between the called up capital and the issued capital. This may be called on later when more capital is required.

n.  Call in arrears: this is the difference between the called up capital and the paid up capital. It represents part of the Called-up capital which is yet to be paid by the shareholders after the call for payment has been made.

o.  Calls paid in Advance: This is the money received in advance of calls i.e. the sum the company receives before calls are made for payment.

 

REVIEW QUESTIONS

  1. Outline six kinds of share and loan capital utilized by public limited liability companies.
  2. Explain how a public limited company may increase capital employed.

    (a) temporarily  (b) permanently

     

    READING ASSIGNMENT

    Essential Commerce for SSS by O.A Longe page 187-196.

     

    WEEKEND ASSIGNMENT

    1.  The amount of capital which a new company proposes to be registered is called ___

     (a) called-up capital   (b) nominal capital  (c) issued capital (d) fixed capital

    2.  The excess value of the assets of a business over its liabilities is ____

     (a) capital owned  (b) working capital   (c) issued capital   (d) reserve capital

    3.  Debenture is an example of ______

     (a) fixed capital (b) share capital (c) loan capital (d) working capital

    4.  Assets of business which cannot be changed easily to cash are known as _____

     (a) floating capital (b) fixed capital (c) working capital (d) current capital

    5.  Capital owned is the same as _________

     (a) authorized capital  (b) issued capital (c) net worth of a business

     (d) fixed assets of a business

     

    THEORY

    1.  State any four sources of capital for a public limited liability company.

    2.  List three importance of working capital to a business.

     

    GENERAL EVALUATION QUESTIONS

  3. List five advantages of using a cheque as a means of payment
  4. State seven differences between hire purchase and deferred payment
  5. Explain five reasons for winding up a public limited company
  6. Give seven features of a public enterprises
  7. Give five reasons why a life assurance policy may be taken

     

     

    WEEK THREE AND FOUR

    TOPIC: PROFIT

    CONTENT

    1.  Types of profit

    2.  Items in the Trading, profit and Loss Account.

    3.  Factors Affecting Profit.

    4.  Turnover/Rate of Turnover.

     

    PROFIT

    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 – Cost of Sales

     

    It should be noted that the gross profit of a firm is not the true profit since other expenses are incurred in running the business. The gross profit, by itself, cannot, therefore, tell whether or not a business firm is making a headway. The most important thing to look at is the NET PROFIT.

     

    NET PROFIT: This refers to the gross profit less the expenses of running the business. This is the

    amount left for the owner or owners of the business as a reward for the risk taken. The success of the business is measured in terms of the Net Profit.

     

    Expenses incurred in running a business include rent, rates, advertising depreciation, bad debts electricity bills wages and salaries transportation, carriage outwards, insurance etc.

     

    ITEMS IN THE TRADING PROFIT AND LOSS ACCOUNT

  8. Purchases
  9. Sales
  10. Returns inwards
  11. Returns outwards
  12. Carriage inwards
  13. Gross Profit or Gross Loss
  14. Expenses e.g. rent, wages, insurance etc
  15. Other operating incomes e.g. discount received commission received, bad debts recovered etc.
  16. Net Profit or Net Loss.

     

    REVIEW QUESTIONS

    1.  Give a short description of information which should be found in:

     (a)  a trading account

     (b)  a profit and loss account

    2.  Explain what is meant by each of the following:

     (a) gross profit  (b) net profit (c) net sales

     

    TURNOVER

    This refers to the total net sales during a period. The turnover is variously referred to as the stock-turn, sales turnover or stock-turnover.

     

    THE RATE OF TURNOVER (or Rate of Stock – turn)

    This refers to the number of times average stock is sold during a given period, usually a year.

    It is calculated by dwindling the cost of goods sold by average stock. This means that to find the rate of turnover first, the cost of goods sold must be calculated thus:

    COST OF GOODS SOLD  N

     Opening Stock 5,000

     Add purchases 35,000

     40,000

     less: Closing stock  8,000

     COST OF GOODS SOLD  32,000

     

    OR

    COST OF GOODS SOLD:   N

    Sales  50,000

    Less: Gross profit 18,000

     32,000

    Secondly the average stock must be calculated thus:

    b.  AVERAGE STOCK  =  OPENING STOCK + CLOSING STOCK

    2

     =  5000 + 8000 = 13000 = N 6,500

    2 2

    Finally find the rate of turnover thus:

    c.  Rate of Turnover = Cost of goods sold

      Average Stock

     =  32,000

    6,500

     

    FACTORS AFFECTING THE RATE OF TURNOVER OF A BUSINESS

    The number of times a trader buys goods and resells them determines the size of his gross profit. In other words, a trader’s gross profit can be increased by boosting his rate of turnover. The various measures to be applied to increase the rate of turnover of a business can be inferred by considering the following factors which affect the rate of turnover.

    1.  Nature of the product.

    2.  Advertisement and Sales Promotion

    3.  Location of the business.

    4.  Goodwill or reputation of the seller

    5.  Prices

    6.  Wide variety of products offered for sale

    7.  Reliability and frequency of supply

    8.  Credit facilities.

    9.  Application of modern sales techniques e.g. self services that encourage impulse buying

    10.  Number of sales outlets or branches of the business.

     

    REVIEW QUESTIONS

    1.  Distinguish between turnover and rate of turnover.

    2.  If the cost of goods sold is N4000 and the stock is turned over five times yielding a profit of 10% on sale, calculate the:

     (a)  average stock

     (b)  gross profit

     (c)  turnover

     

    READING ASSIGNMENT

    Essential Commerce for SSS by O.A Longe page 131-143.

     

    WEEKEND ASSIGNMENT

    1.  The difference between cost and selling price gives______

     (a) Trading loss  (b) Net profit/loss (c) Gross profit or loss (d) Turnover

    2.  The cost of transporting goods to customers is called ________

     (a) carriage inwards   (b) carriage outward (c) carriage paid (d) carriage forward

    3.  The turnover of a firm may be affected by ________

     (a) the demand for its products (b) the cost of its goods sold (c) its closing stock

     (d) its net assets.

    Use the following equation to answer questions 4 and 5.

    Gross Profit = (Closing stock + P) less (Opening stock + G)

    4.  What is P in the above equation

     (a) purchases returns  (b) net profit (c) sales  (d) carriage outwards

    5.  What is G in the above equation

     (a) Sales return  (b) carriage inward   (c) purchases   (d) sales

     

     

    THEORY

    1.  Outline any seven factors, which might affect the rate of turnover

    2.  Distinguish between gross profit and net profit.

     

    GENERAL EVALUATION QUESTIONS

  17. Describe four types of risks that may be insured against under marine insurance
  18. State and explain five classes of shares a public limited company can issue
  19. Explain seven reasons for government participation in business enterprises
  20. State seven demerits of government participation in business enterprises
  21. State seven characteristics of a co-operative society

     

     

    WEEK FIVE AND SIX

    TOPIC: THE FINANCIAL POSITION OF BUSINESS FIRMS

    CONTENT

    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.

    1.  Trading, Profit and Loss Account.

    2.  Balance Sheet

    3.  Annual Reports of Limited companies.

    4.  Stock Exchange Report relating to quoted companies.

    5.  Financial Ratios prepared by accountants and investment analysts.

     

    BALANCE SHEET

    The Balance sheet of a firm is the summary or statement of the financial position of that firm at

    a particular date, usually at the end of the financial year.

     

    STRUCTURE OF THE BALANCE SHEET

    The normal balance sheet shows the capital and liabilities on the left-hand side and the assets

    on the right-hand side. An illustration is given below

     

    Peter Okocha Trading Enterprises:

    Balance Sheet as at 31st December, 2005

     N FIXED ASSETS N

    Capital 25,000 Premises 20,000

    Add: Net Profit   35,000 Machinery 25,000

    60,000 Fixtures & Fittings 5,000

      50,000

    CURRENT LIABILITIES: CURRENT ASSETS:

    Creditors   27,000 Stock 18,000

    Bank Overdraft 3,000 Debtors 12,000

      30,000 Cash in Bank 6,000

    Cash at Hand     4,000 40,000

     

    90,000   90,000

     

    REVIEW QUESTIONS

    1.  List six examples of each of the following:

     (a)  Fixed Assets

     (b)  Current Assets

    2.  State two importance of the Balance Sheet as a financial statement.

     

    USES OF FINANCIAL RATIO:

  22. Ratios are used in preparing industrial averages.
  23. They can be used to interpret financial statements.
  24. They help in comparing performances between and among related organizations.
  25. Ratios help to measure the ability of a given entity to meet its short-term obligations.
  26. They are used in evaluating the performance of companies in the same business

     

    DISADVANTAGES OF USING RATIO

  27. Ratios can easily be affected by inflation
  28. They can be manipulated upon or abused
  29. Different accounting policies affect ratio calculation

     

    TYPES OF RATIO

  30. Profitability and efficiency ratio
  31. Liquidity ratio
  32. Investment ratio

     

    PROFITABILITY AND EFFICIENCY:

    Profitability and efficiency ratios measure the effectiveness of the management as shown by the returns obtained on sales and capital invested. This can be broken down into the following.

  33. Net profit%
  34. Gross profit%
  35. Returns on capital employed
  36. Assets turnover ratio
  37. Individual expenses items to sales ratio e.g advertising carriage outwards etc

     

    Formulae:

  38. NP% = NET PROFIT × 100

    SALES 1

  39. GP% = GROSS PROFIT × 100

    SALES 1

  40. Returns on capital employed ROCE. This measures management ability to utilize effectively the organizations resources.

    It is PROFIT × 100

    CAPITAL EMPLOYED 1

    Where capital employed can be : a) total asset b) total assets to current liabilities

  41. ASSETS TURNOVER RATIO:

    This ratio measures the turnover generated by assets and show how fully a company is utilizing its assets.

    Formula: SALES

     CAPITAL EMPLOYED

  42. INDIVIDUAL EXPENSE TO SALES:

    This helps to reveal the reason for improvement or reduction in the net profit to sales.

    Formula : INDIVIDUAL EXPENSES × 100

    SALES 1

  43. LIQUIDITY RATIOS:

    These ratios help in measuring the ability of an organization to meet its obligations as they fall due.Ratios under this heading are:

  44. Current ratio or working capital ratio
  45. Average stock
  46. Stock to net current assets
  47. Debtors ratio
  48. Creditors ratio

     

  49. CURRENT RATIO OR WORKING CAPITAL RATIO: This ratio indicates the ratio of current assets to current liabilities. It shows the extent the firm can meet up with its short-term creditors. Low ratio implies lack of working capital while high ratio suggests too much of working capital or capital tied up.

    Formula: CURRENT ASSETS
    CA

    CURRENT LIABILITIES CL

     

  50. ACID-TEST / LIQUID RATIO:

    This ratio provides measures of the firm’s ability to meet its current liability. Should it fall below 1:1,the firm may have some difficulty in paying its debt.

    Formula: CURRENT ASSETS – STOCK OR INVENTORY

    CURRENT LIABILTIES

     

  51. STOCK TURNOVER RATIO:

    This is used to measure the number of times stocks are replaced during a given period.

    Formula: COST OF GOODS SOLD

    AVERAGE STOCK

     

  52. AVERAGE STOCK: OPENING STOCK + CLOSING STOCK

    2

    N.B: Where there is no opening stock,average stock could be calculated by adding closing stock to purchases and dividing by 2

     

  53. STOCK TO NET ASSET. This ratio is used to express the stock as a percentage of net assets.

    Formula: = STOCK × 100

    NET ASSET 1

     

  54. DEBTORS RATIO: Debtors ratio measures the average collection period from debtors. It shows the average credit period given to debtors.

    Formula: DEBTORS × 365 DAYS

    CREDIT SALES

    Long collection dates indicate poor credit policy.

     

  55. CREDITORS RATIO: This ratio shows the average credit period received from suppliers.

     Formula: TRADE CREDITORS × 365 DAYS

      CREDIT PURCHASES

     

    GEARING OR LEVERAGE: This shows the relationship between owners equity or capital and

    debt financing of business assets. It shows the proportion of the assets being financed with

    long-term debt.

    Gearing Ratio or Leverage Ratio = Long term liabilities

    Equity Capital

     

    If the Gearing Ratio is above 40% (0.4) the business is said to be highly geared. If lower than

    40% (0.4) the business is low geared.

     

    REVIEW QUESTIONS

  56. State two uses of financial ratio.
  57. List four liquidity ratios that can be used to evaluate the viability of a business firm.

     

    READING ASSIGNMENT

    Essential Commerce for SSS by O.A Longe page 153-162.

     

    WEEKEND ASSIGNMENT

    1.  If the turnover of a business is N16,000 and the cost of goods sold is N12,000. What is the percentage of gross profit on sales. (a) 70%  (b) 40% (c) 33.3% (d) 25%

    2.  What are fixtures and fittings in a balance sheet. (a) liquid capital  (b) working capital (c) fixed assets (d) current assets

    3.  The form of capital which is easily transferred into the form desired is known as ___

     (a) working capital   (b) liquid capital   (c) circulating capital (d) capital employed

    4.  When a company uses more of loans than equity to finance its business the company is said to be

     (a) bankrupt (b) solvent (c) highly geared   (d) insolvent

    5.  Which of the following shows the financial position of a business on a given date____

     (a) bank statement   (b) journal   (c) balance sheet (d) cash book

     

    THEORY

    1.  State three uses of the balance sheet prepared by business firms.

    2.  List four uses of the Trading, Profit and Loss Account prepared by business firms.

     

    GENERAL EVALUATION QUESTIONS

  58. Explain seven roles of transport to businessmen
  59. List ten sources of capital available to a public limited company
  60. Give seven reasons why consumers need protection
  61. State five effects of hire purchase on the buyer
  62. State eight reasons why a bank may dishonor a cheque

     

     

    WEEK SEVEN AND EIGHT  Date:………………

    TOPIC: THE STOCK EXCHANGE

    CONTENT

  63. Functions of the Stock Exchange.
  64. Operators at the Stock Exchange.
  65. Securities dealt with at the Stock Exchange.
  66. Speculators at the Stock Exchange.
  67. The Second-Tier Securities Market.

     

    NOTES

    THE STOCK EXCHANGE

    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

  68. It is a market for buying and selling of hand securities.
  69. it assists companies to raise capital
  70. It determines the value (prices) of shares, stock and other securities on a daily basis.
  71. The prices of shares quoted on the stock exchange serve as economic indicator.
  72. It assists the government in raising funds e.g. through development stock.
  73. It protects investors from any form of fraud.
  74. It helps to raise the administrative standard of companies by improving financial management

    and accounting information.

  75. It provides employment for brokers, jobbers, clerks etc.
  76. It provides information to investors and also involved in investors education.
  77. It provides yardstick for measuring performance of companies.

     

    OPERATORS AT THE STOCK EXCHANGE

    Members operating at the stock exchange are

  78. Brokers (Stockbrokers)
  79. Jobbers
  80. Authorized clerk

     

    TYPES OF SECURITIES DEALT IN AT THE STOCK EXCHANGE

    1. Shares
    2. Stocks
    3. Debentures
    4. Bonds
    5. Gilt-edge securities – These are securities issued by the government. This type of securities is very safe as government cannot default (i.e. fail to pay its debts). They are therefore regarded as being risk – free investment.

     

    EVALUATION

    1.  Describe each of the following (a) Stockbrokers  (b) Issuing Houses  (c) Securities

    2.  Write short notes on the followings; (a) capital market (b) money market

     

    SPECULATORS AT THE STOCK EXCHANGE

    1. BULL: This is a speculator who buys securities with the hope that the price will rise and that he will sell at higher price for a gain.
    2. BEAR: This is a speculator who sells securities hoping that the price will fall so that he can buy them at lower prices later and thereby make a profit.
    3. STAG: This is a speculator who buys new issues direct from a public limited company in the hope that the shares or stocks will be in great demand once they are quoted on the stock exchange a few days later. The stag hopes to make profit after selling.

     

    METHODS OF ACHIEVING QUOTATION OF SHARE AT THE STOCK EXCHANGE

  81. Offer for sale
  82. Offer for subscription
  83. Introduction
  84. Placement

     

    THE SECOND – TIER SECURITIES MARKET

    Small and medium sized companies are usually unable to fulfil all the conditions required for a conventional listing on the Stock Exchange.

     

    Therefore an alternative – The Second – Tier market with less stringent conditions and the entry requirements was introduced to enable such companies raise funds through the capital market.

    The SSM is an alternative market created to provide for the buying and the selling of securities issued by small and medium sized companies who are unable to meet the requirements for quotation on the main Stock Exchange.

     

    TERMINOLOGIES CONNECTED WITH THE STOCK EXCHANGE

    1. BLUE CHIPS: These are the best industrial shares associated with large nationally known companies. They give a safe and reliable return (e.g. dividends) and has growth potentials in terms of share price appreciation and dividend income.
    2. RIGHT ISSUE: This is an offer of new shares to existing shareholders of a company who must pay for the additional shares being subscribed.
    3. CUM – DIV (i.e. Cum Dividend) – Meaning including dividend or with dividend – that is, the purchaser of a stock termed “cum div” will be entitled to dividend when due.
    4. EX DIV (i.e. Ex Dividend) – Meaning the purchaser of a stock with such a term will not be entitled to dividend.

     

    EVALUATION

    1. Explain five Securities traded on the Stock Exchange
    2. What is the importance of Stock Exchange to the economic growth of Nigeria?

     

    READING ASSIGNMENT

    Essential Commerce for SSS by O.A. Longe Page 202 – 209.

     

    WEEKEND ASSIGNMENT

  85. A person that buys shares hoping to resell at higher price is called a (a) bull (b) bear (c) stag (d) broker
    1. In a stock exchange transaction, the buyer is NOT entitled to the dividend when the stock is quoted (a) clean (b) ex-dividend (c) double barreled (d) cum – dividend
    2. 3. Any member of the public who wants to buy shares at the stock market will first of all meet a/an (a) agent  (b) broker (c) jobber  (d) shareholder
    3. 4. Government securities are described as gilt – edge because they are (a) issued under tight security (b) owned by public corporation (c) traded on the stock exchange  (d) regarded as safe to invest in.
    4. When shares are sold cum-div, it means the (a) holder is entitled dividend (b) holder cannot resell it. (c) stockbroker is entitled to the dividend (d) dividend is fixed

     

    THEORY

  86. List four securities traded on the stock exchange.
  87. What is the second- Tier securities market?

     

    GENERAL EVALUATION QUESTIONS

  88. Distinguish between Authorized Capital and Called-Up Capital
  89. State five characteristics of a limited liability company
  90. List five advantages of after-sales services
  91. List and explain three types of life assurance policies
  92. Explain three types of accounts that are operated in a commercial bank

     

     

    WEEK NINE AND TEN  Date:……………………….

    TOPIC: COMMUNICATION

    CONTENT

  93. Importance of Communication to Commerce
  94. Functions/Services of NIPOST
  95. Functions/Services of NITEL
  96. Services of Courier firms(companies)

     

    NOTES

    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

  97. It facilitates contacts between businessmen
  98. It creates awareness for goods and services thereby increasing demand for goods/sales
  99. It facilitates the settlement of business debts e.g. Mail transfer
  100. The use of wireless makes it possible to control ships, aeroplanes, spacecrafts etc.
  101. It facilitates mail order business
  102. It links the whole world into one economic unit thereby facilitating international trade.
  103. It facilitates the distribution of vital business documents as well as goods
  104. It reduces the cost and risk in traveling for business transactions

     

    MEANS OF COMMUNICATION

    i. Posters ii. Radio iii. Television iv. Letters v.Telephone vi. Telegrams vii. Telex viii. Internet ix. Satellite x. Post office.

     

    FUNCTIONS/SERVICES OF NIPOST

  105. Issuance of postage stamps
  106. Ordinary letter post
  107. Parcel post
  108. Registered Letters
  109. Express Letters
  110. Private boxes (P.O Box) and bags (P.M.B)
  111. Poste Restante
  112. Recorded Delivery
  113. Business Reply Services
  114. Licensing of franking machine.
  115. Free post
  116. Air mail services
  117. Acting as agent of payment
  118. Cash on Delivery (C.O.D) Services
  119. Acts as a savings Bank
  120. Provision of means of payment e.g. postal orders, money orders etc.

     

     

    EVALUATION QUESTIONS

    1.  List five services provided by NIPOST.

    2.  State five importance of communication in commerce.

     

    FUNCTIONS/SERVICES OF NITEL

  121. Telephone services
  122. GSM services i.e. through MTEL
  123. Telex Services – for printed messages sent through machines called teleprinter
  124. Satellite services e.g. for live transmissions of games ,events etc
  125. Data Transmission Services
  126. Provision of Telephone Directories
  127. Telegram Services

     

    FUNCTIONS/ADVANTAGES OF COURIER SERVICES

  128. Fast and safe delivery of mails and parcels
  129. They undertake air cargo and bulky shipments of commodities
  130. They render nationwide (and world wide) services. Services are extended even to rural areas.
  131. Twenty four hour services are provided
  132. Important mails and parcels are insured
  133. Their services are more personal and cordial
  134. The courier companies provide employment opportunities

     

    Differences between the Courier Services and Post Office Service

     

    Courier services 

    Postal services 

    Materials are usually insured

    Materials are not usually insured 

    Loss of goods are low 

    Loss of goods are high 

    Very expensive  

    Relatively cheaper 

    Very quick, efficient and reliable service 

    Very slow and inefficient service 

    Longer hours of services are rendered 

    Less hours of services are rendered

    Nationwide and worldwide coverage 

    Less coverage of activities 

    Personal and cordial relationship with customers 

    Less personal attention is given to customers 

    Provide door- to-door service 

    Do not usually door-to-door service

     

    EVALUATION

    1.  State five functions of a) NIPOST b) NITEL

    2.  List five advantages of courier services over public postal services

     

    READING ASSIGNMENT

    Essential Commerce for SSS by O.A Longe page 222-231

     

    WEEKEND ASSIGNMENT

    1. Mail order firms largely depend on the services of the a) banks b) insurance companies

    c) mobile vans d) post office

    1. Telecommunication services are provided by a) NITEL b) NIPOST c) courier services d) Bureau De Change
    2. Which of the following involves the delivery of mails to a traveler without fixed address

      (a) Speed post (b) Reply paid (c) Recorded delivery (d) Poste Restante

    3. The fastest and mot accurate means of passing information is (a) airmail letter (b) express letter (c) telegram (d) telephone
    4. In which of the following does the number of words used determine the cost of the message

      a) Telephone b) Recorded delivery c) Telex d) Express mail.

     

    THEORY

    1.  State three functions of courier companies

    2.  List three importance of communication to commerce

     

    GENERAL EVALUATION QUESTIONS

  135. State seven functions of a chamber of commerce
  136. Explain five functions of a trade association
  137. State five problems that a co-operative society may likely face
  138. Explain five importance of working capital to a business
  139. State five factors that can affect the rate of turnover of a company



Share this:


EcoleBooks | 3RD TERM SS2 COMMERCE SCHEME OF WORK AND NOTE

subscriber

2 Comments

  • EcoleBooks | 3RD TERM SS2 COMMERCE SCHEME OF WORK AND NOTE

    Iwueke Naomi, June 3, 2024 @ 9:53 pm Reply

    Please I will need third term scheme of work for ss2
    Send it to the below email

  • EcoleBooks | 3RD TERM SS2 COMMERCE SCHEME OF WORK AND NOTE

    Hemedi Mwenjudi, October 12, 2023 @ 4:59 pm Reply

    Mmmmm iikuwa

Leave a Reply

Your email address will not be published. Required fields are marked *

Accept Our Privacy Terms.*