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SS 1 Commerce (1st Term)

Commerce (SS)


Warehousing is the act of storing goods produced or bought in a place until they are needed. Warehousing ensures that there is a regular  and steady supply of goods. A warehouse is a place where goods are kept until they are needed.   IMPORTANCE OF WAREHOUSING It provides protection and security for goods. It encourages large scale production it ensures production of goods ahead of demand. It helps to stabilize prices of goods by reducing fluctuation of prices due to supply level. It facilitates re-packaging and branding of goods. It ensures constant and steady supply of goods throughout the year. It provides employment opportunities e.g. for warehouse keepers. It is a source of income for the owners e.g. rent received etc. It promotes emancipator purchases.   TYPES OF WAREHOUSING Ordinary warehouse: This may be called goods warehouse – i.e where goods are stored by traders and manufacturer until they are… Read More »WAREHOUSING

Commerce (SS)


Wholesale trade (wholesaling) involves the buying of goods in large quantities from the producers or manufacturing and re-selling in small quantities to retailer. A wholesaler is a trader who purchases goods in large quantities from the manufacturing and sell in small quantities to the retailers.   FUNCTIONS OF THE WHOLESALER To the Manufacturer He gives useful information and advice tot eh manufacturer e.g. in respect of level of demand for goods etc. The wholesaler provides warehouse and storage facilities for storing goods, thereby helping the manufacturer to have enough space for further production. Preparation of commodities for sale: The wholesaler sometimes label, package, blend or brand the goods before he sells them. Advertising and promotion of goods: The wholesaler creates awareness for goods through advertising and sales promotion. The wholesaler finances the manufacturer by paying for goods in advance provision of transport facilities needed for the distribution of the goods.… Read More »WHOLESALE TRADE

Commerce (SS)


Self-service: This is a method that allows customers to do their shopping in a shop with little or no assistance from sales attendants.  The goods are conspicuously displayed and arranged on the shelves of shops with price tags.  The customers goes about in the shop, examines the good displayed, compares them, tries them on, where necessary, select those of his choice and gathers them in a basket or tray made available in the shop,  The customer finally approaches the check out counter where he pays for the goods bought to the  cashier,  This arrangement saves time because it avoid bargaining . Self –Service is associated with large scale retailer who have enough space and the necessary equipment e.g. supermarket, departmental stores, hyper markets etc   FEATURES OR CHARACTERISTICS OF SELF-SERVICE Few shop attendants are required Goods are displayed with price tags use of trolleys and baskets is common Customers move… Read More »MODERN TRENDS IN RETAILING

Commerce (SS)


TYPES OF LARGE SCALE RETAILING A          MULTIPLE SHOPS OR CHAIN STORES These are large scale retail businesses consisting of a number of similar shops or branches spread or located in different towns/ cities all over a country. They sell the same type of goods and all the shops are controlled from the head office e.g. Lennards, Challenge Bookshop, Famad etc   FEATURES OR CHARACTERISTICS OF MULTIPLE SHOPS Standard or identical shop design. Dealing in one line of product in their branches. They have centralized form of administration and ownership. They operate on the basis of cash and carry. Prices of goods sold in all branches are fixed by the head office. They practice self-service.   ADVANTAGES OF MULTIPLE SHOPS They are easy to identify. Staff can be moved between branches. Their cash and carry system reduces the incidence of bad debts. They save a lot of cost in advertising. Unsold… Read More »LARGE SCALE RETAILING



There are several types of size of retail outlets which for easy analysis can be grouped into two, namely: Small scale and Large scale retailing   TYPES OF SMALL SCALE RETAILING Itinerant Traders: The common feature of itinerant traders is that they move from place to place to sell, thereby making goods handy for customers i.e. goods are brought to the consumer’s doors. Examples of itinerant traders are hawkers, peddlers, gypsies etc   FEATURES OF HAWKING/ ITINERANT TRADING Hawking is a form of small scale retail business. It provides door-to door selling. Hawking requires small capital outlay to set up. It involves movement of goods from one place to another on the head by carts, by canoe, wheel barrows etc. Hawkers do not pay rent The goods are advertised to customers through shouting the wares, bell, horn, trumpet or loud speakers   ADVANTAGES OF HAWKING It requires small amount of… Read More »SMALL SCALE RETAILING

Commerce (SS)


Trade (Trading) is the buying and selling of goods and services. It is divided into Home Trade and Foreign Trade. Home Trade involves the exchange (i.e. buying and selling) of goods and services within a country and sub-divided into wholesale trade and retail trade.   RETAIL TRADE Retail trade involves buying in small quantities from the wholesaler or the manufacturer and selling in units (bits or fractions) to the final consumers.   CHARACTERISTICS OF THE RETAILER/RETAIL TRADE 1)         The retailer sells in units or fractions. 2)         The retailer stocks and sells a wide variety (range) of goods. 3)         They sell directly to the ultimate consumers. 4)         They buy in small quantities from the wholesaler or manufacturer. 5)         The wares consists of fast selling products, mainly consumer goods. 6)         A large number of small shops are involved. 7)         They are the final link in the distribution chain. 8)         Majority of the… Read More »RETAIL TRADE

Commerce (SS)


Division of Labour is the breaking down of production processes into different stages so that each stage is undertaken or handled by an individual. For example, division of labour occurs in a textile factory where separate processes like spinning, weaving and dyeing are undertaken by separate workers in each case.   Specialization is the process whereby an individual, a firm or a country concentrates or limits its productive efforts on particular areas of production in which it has the greatest advantage over others. The principal aim of both division of Labour and specialization is to increase output at a lower cost of production.   ADVANTAGES OF DIVISION OF LABOUR/ SPECIALIZATION (1)        Greater skill and dexterity of workers (2)        Increased total output (3)        It saves time. (4)        Less fatigue (5)        It makes possible the use of machines. (6)        Reduction in the cost of production i.e. per unit cost (7)… Read More »DIVISION OF LABOUR, SPECIALIZATION AND EXCHANGE

Commerce (SS)


Production is the changing of raw materials into finished goods and the distribution and provision of goods and services in order to satisfy human wants. Production is also referred to as the creation of utility. (Utility is the ability of any commodity or services to satisfy human wants).  TYPES OF GOODS CAPITAL GOODS (PRODUCER GOODS): These are goods which are used for further production of goods and services e.g. raw materials, machines, trucks etc. CONSUMER GOODS: These are goods and services which are ready for use by the final consumer e.g. bread, milk, services of a teacher etc.   CLASSIFICATION OF PRODUCTION PRIMARY PRODUCTION: This involves the extraction of raw materials from the soil or sea e.g. mining, farming, fishing etc. SECONDARY PRODUCTION: This entails the conversion of raw materials into finished or semi-finished products e.g. manufacturing of cars, fan, clothes chemicals e.t.c. TERTIARY PRODUCTION: This is the stage where… Read More »PRODUCTION

Commerce (SS)


Occupation can be defined as any job that is legal in which people are engaged in order to earn a living. CLASSIFICATION OF OCCUPATIONS Occupations are classified into six major divisions namely: Extractive Occupation Manufacturing Occupation Constructive Occupation Commercial Occupation Direct Services Indirect Services   EXTRACTIVE OCCUPATION: This involves all kinds of works concerned with the extraction of natural resources from the soil, the sea or forest eg farming, fishing, hunting, lumbering, mining, quarrying etc. MANUFACTURING OCCUPATION: Workers involved in this occupation are engaged in changing the form of raw materials extracted from the soil or sea into finished or semi – finished products e.g. raw rubber to vehicle tires, raw cotton to textile material etc. CONSTRUCTIVE OCCUPATION: Workers involved in this occupation are engaged in assembling the various components from extractive and manufacturing industry and building them into organized usable structures eg bringing iron rod, cement, planks, sand, corrugated… Read More »OCCUPATION

Commerce (SS)


DEFINITION OF COMMERCE Commerce is the study of production, distribution and exchange of goods and services aimed at satisfying human wants and in order to earn a living.   THE IMPORTANCE (FUNCTIONS) OF COMMERCE It provides employment opportunities for the people. It makes production and exchange of goods and services possible. It improves the standard of living of people by making modern goods available. It aids national and international co-operation by ensuring inter-dependence of nations It facilitates division of labour and specialization. It brings technological innovation and aids infrastructural development.   STAGES IN THE HISTORY AND DEVELOPMENT OF COMMERCE (i)         Earliest time: – Production was subsistent in nature. (ii)        Exchange of goods and services by barter. (iii)       Exchange of goods and services through the use of commodity money. (iv)       Introduction of money – notes and coins as a medium of exchange (v)        Improvement in aids to trade.   EVALUATION What… Read More »MEANING, SCOPE AND FUNCTIONS OF COMMERCE

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