NIGERIA’S TRADE AND COMMERCE
Trade is the selling and buying of goods and services between areas and peoples. Trade can be local, interregional or international. Nigeria is involved in all these types of trade. The term commerce” is used to cover all forms of…
CAPITAL
MEANING OF CAPITAL Two schools of thought or views appear to hold sway in the definition of capital. These are the accountant point of view and the economist point of view. The Accountant Point of View: Accountants define capital as…
BASIC CONCEPTS OF ADVERTISING
Advertising can be defined as any paid form of non-personal communication which is directed to the customers or target audience through various media in order to present and promote products, services and ideas. It is a branch of commerce which…
TYPES OF MARKET
Marketing consists of the performance of business activities that direct the flow of goods and services from the producer to the consumer or users in order to satisfy customers and accomplish the company’s objectives. It encompasses all activities aimed at…
MARKET RESEARCH AND MARKETING CONCEPT
MARKET RESEARCH Market research is the study of consumers’ demand by a firm in order to assist it in expanding its output and the marketing of its product. It is the systematic and objective search for and the analysis of…
ELEMENTS OF MARKETING MIX
Marketing mix is a collection of controllable factors that can be used to influence the behaviour of customers or consumers. In other words, marketing mix is a combination of controllable variables such as, product, price, distribution place and promotion which…
PRODUCT MIX
A product may be defined as a bundle of physical and psychological satisfaction that a buyer receives from a purchase, e.g. sugar. It can be an idea, service or goods. Products can fall into two categories: Consumer Product: These…
PRICE MIX
Price is the money consideration for goods and services, i.e ., the exchange value, whereas price mix is the placing of price on a particular product that will suit the customers and fetch higher revenue to the manufacturer. The components…
PLACE MIX
Place mix is concerned with the distribution of goods and services to the consumers at the required place. The components are selecting and managing the middlemen, choice of channel, establishment of a logistic system of storing, handling, transporting and channel…
PUBLICITY, PUBLIC RELATIONS AND PRODUCT DIFFERENTIATION
Publicity Publicity may be defined as news about products or companies, appearing in the form of editorial material without cost to the sponsor in the press, on radio or television etc. Large departmental stores use publicity for fashion related lines.…
SALES PROMOTION
Sales promotion can be defined as any activity that is used to stimulate sales of a product. It is a special promotion technique designed to encourage brand patronage. Sales promotion may be directed at customers in the form of consumer…
PERSONAL SELLING
Personal selling involves the direct personal contact of sellers with the potential buyers with view to making sales. It can also be referred to as the face-to-face meeting of the salesmen with the potential buyers in their houses, offices or…
DEFINITION OF PROMOTION MIX
Promotion mix deals with the communication aspect. The purpose is to make the goods and services known to prospective customers, i.e ., creation of awareness. It stimulates market interest in the product by determining the relative contributions to be made…
PACKAGING
Packaging involves the development of a container and a graphic design for a product. A package can be a vital part of a product. It can make the product more versatile, safer or easier to use. Packaging influences consumers’ attitudes…
LIQUIDATION OR WINDING UP
Liquidation is the process of winding up or bringing a company to an end, i.e ., the coming to an end of a limited liability company. It can also be defined as the act of terminating or winding up of…
MERGER
Merger is the coming together or amalgamation of two or more firms to form one new company. The old firm will lose its identity and the new company will emerge with a new name. It connotes a transfer of properties…
DEFINITION OF A COMPANY
A company can be defined as a legal person or entity created by the association of a number of people in accordance with the law for the purpose of a defined object. Examples of companies in Nigeria include Nestle Foods…
DOCUMENTS IN BUYING AND SELLING OF GOODS
MEANING OF COMMERCIAL DOCUMENTS Commercial documents are official papers which facilitate the act of buying and selling of goods. All business transactions must be backed by relevant documents in order to show authenticity as well as for record purposes, The…
WATER TRANSPORT
Water transport is the means of conveying goods and people from one place to another through the rivers, seas or oceans by ships, canoes etc. This facilitates international trade between different nations because goods and passengers can be easily transferred.…
TRANSPORT BY AIR
Transport by air is the system of moving goods and passengers through the air by aeroplanes, helicopters etc. Air transport is very fast and comfortable but it is expensive. Air transport has contributed greatly to commercial activities in international trade.…
TRANSPORT BY PIPELINE
Transport by pipeline is a system of transporting gasses and liquid products from one place to another through the use of pipelines. Pipelines are constructed or laid underground as means of carrying water, gases and petroleum products. In Nigeria, pipelines…
TRANSPORT BY LAND
Transport by land is the means of conveying goods and passengers from one place to another through land. This means of transportation is very good for trading within a country, i.e ., home trade. Land transport can be divided into…
MEANING OF TRANSPORTATION
Transportation is one of the aids to trade. It is the process of conveying goods and people from one place to another either through water, road, rail or air. It is simply the movement of goods and people from one…
THE PROVISIONS IN THE PARTNERSHIP DEEDS
A partnership business may be established without any formality although the partners have certain unavoidable obligations to third parties, they may make such agreement between themselves in respect of the internal management of the firm. It is accordingly usual for…
DISSOLUTION OF PARTNERSHIP
Dissolution of partnership is the coming to an end of a partnership agreement. It is the breakup of a partnership business. A partnership may be automatically dissolved due to the following factors: Expiration of Agreement: Where a partnership is entered…
MEANING OF BANK
Bank is a commercial institution which performs various financial activities, e.g. accepting and handling of deposits of its customers. It is a body of persons who carry on the business of banking. Banks are institutions that create money and give…
CREDIT UNIONS AND THRIFT SOCIETIES
Credit unions and thrift societies may be referred to as the coming together of a group of people with common interest who have agreed to pool their resources together from which loan facilities are made available to members at an…
UNDERWRITING AND REINSURANCE
Underwriting: This is the process whereby a merchant of insurance company undertakes to cover, underwrite a portion of a risk or assume part of a risk. This is common in marine insurance because of the enormous cost involved which cannot…
FIRE INSURANCE
Fire Insurance is a type of insurance which provides cover for loss or damage caused by burning. A person can insure himself or property against any loss as a result of fire, lighting, wiring, lightning and explosion. It covers all…
LIFE ASSURANCE
Life Assurance is one important branch of insurance which is taken as a protection against loss caused by the death of a person. This policy covers human beings and not properties. The risk covered here will inevitably occur but the…
MARINE INSURANCE
Marine insurance is a branch of insurance which covers losses or liabilities relating to ship and their cargoes against the dangers or perils of the sea. This is probably the oldest form of insurance. The perils of the sea include…
TYPES OF INSURANCE
There are various risks which a business should Insure against. These constitute the various types of insurance, namely: Bad debts. Goods in transit. Group insurance. Cash in transit. Fidelity guarantee. Export credit guarantee. Plate glass. Agricultural insurance. Burglary, theft, robbery.…
DEFINITION OF INSURANCE AND ASSURANCE
Insurance can be defined as an agreement whereby one party promises to indemnify or pay another party a sum of money in the event of his suffering a specified loss or damages. It can also be defined as a system…
CAREER OPPORTUNITIES FOR COMMERCIAL STUDENTS
CAREER OPPORTUNITIES IN COMMERCIAL STUDIES There are various career opportunities available for people in the job market, but this book will look at different categories of careers opened to commercial students. This topic will provide useful information for school certificate…
STRUCTURE OF A BUSINESS
ORGANISATIONAL SET UP The organisational set up of a business involves the allocation of responsibilities and functions to different components of an organisation and delegating authority to each position in order to ensure the smooth operation of the business so…
NATIONALISATION AND INDIGENIZATION
NATIONALISATION Nationalisation is a deliberate policy by which government takes over the control and ownership of private enterprises due to economic, political, social or strategic reasons. In other words, nationalisation is the process by which the government takes over the…
INTERNATIONAL MONETARY FUND
Formation: The International Monetary Fund was set up after the Second World War in order to encourage the development of foreign trade. It began operation in 1947 with headquarters in the United States of America. The International Monetary Fund was.…
NIGER BASIN COMMISSION
Formation: The Niger Basin Commission (NBC) was established by countries located in the Niger basin to maintain better co-operation on the use of the River Niger. The treaty establishing the commission was signed by the countries in October, 1963. These…
LAKE CHAD BASIN COMMISSION
Formation: The Lake Chad Basin Commission (LCBC) is an organisation set up to foster cooperation among countries sharing a common border with Lake Chad with respect to the usage of the lake. The Lake Chad Basin Commission was established by…
FOREIGN TRADE
Foreign trade, otherwise called international trade, is the exchange of goods and services between two or more countries. The principle underlying the buying and selling between one country and another is specialisation. The theory of international trade, therefore, is based…
PRODUCTION
Production can simply be defined as the creation of utility or production is the creation of goods and services which satisfy human wants. All goods and services produced must possess utility, which means that they must be capable of satisfying…
DEVELOPMENT OF COMMERCE
HISTORY OF COMMERCE IN NIGERIA In the olden days, people engaged in subsistence production. This means they were producing goods for themselves and their families. Later they started interacting with one another because it was difficult for them to meet…
INTRODUCTION TO COMMERCE
MEANING OF COMMERCE Commerce can simply be defined as all the activities involved in the distribution and exchange of goods and services. In other words, commerce is a branch of production which is concerned with the distribution, exchange of goods…
CREDIT
MEANING OF CREDIT Credit occurs when a seller grants permission to a buyer to take possession and enjoy a commodity with a promise to pay in the future. It is the process by which goods and services are transferred to…
FOREIGN TRADE DOCUMENT AND MEANS OF PAYMENT
TYPES OF INTERNATIONAL TRADE DOCUMENTS There are various documents which facilitate international trade. These documents are as follows: Consular invoice. Bill of lading. Certificate of origin. Shipping note. Airway bills. Indent. Ship manifest. Mate receipt. Freight note. Customs specification. Dock…
STOCK EXCHANGE AND SECOND TIER SECURITIES MARKET
MEANING OF STOCK EXCHANGE Stock exchange market is a highly organised market where investors can buy and sell existing securities like shares, stocks, debentures, gilt edge etc. This is a market where those who are interested in purchase of securities…
MEANS OF PAYMENT
MEANING OF PAYMENT Payment can be defined as the process or means of settling financial or business transactions. It is also referred to as the settlement of outstanding debts between a creditor and a buyer. Payment can be made using…
WHOLESALE TRADE
Wholesaling is a business activity which entails buying of goods in bulk from the producer and selling in small quantities to the retailers and other merchants. A wholesaler is a merchant who purchases goods in large quantity from the manufacturer and…
SMALL SCALE RETAILING
Small scale retailing is retail trading with small scope of operations. Little capital can be used to set up small scale retailing trade such as: Hawking /itinerant/peddling. Mobile shops. Street or roadside trading. Market trader or stall holder. Unit stores/tied…
HOME TRADE
Home trade is the act of buying and selling goods within a geographical area, usually a country. It can be referred to as domestic or internal trade. In home trade, the same currency is used for exchange (buying and selling)…
Study Guide
