NABTEB GCE COMMERCE ANSWERS
COMMERCE THEORY ANSWERS
A statement of accounts : is a document that reflects all transactions that took place between you and a particular customer for a given period of time.
(b) An invoice,: bill or tab is a commercial document issued by a seller to a buyer, relating to a sale transaction and indicating the products, quantities, and agreed prices for products or services the seller had provided the buyer.
(c) Quotation: is a document sent to a potential customer offering to sell goods or services at a certain price, under specified conditions.
(d) A receipt: this a written acknowledgment that something of value has been transferred from one party to another.
(e) A cash book: is a financial journal that contains all cash receipts and disbursements, including bank deposits and withdrawals.
Trade is a basic economic concept involving the buying and selling of goods and services, with compensation paid by a buyer to a seller, or the exchange of goods or services between parties.
(i) WHOLESALER :
(a) Wholesalers buy from the manufactures and sell goods to the retailers.
(b) Wholesalers usually sell on credit to the retailers.
(c) They specialise in a particular product.
(d) They buy in bulk quantities from the manufacturers and sell in small quantities to the retailers.
(e) Wholesalers always deliver goods at the doorstep of the retailers.
(f) A wholesaler needs mainly a godown to stock the goods he handles.
(a) Retailers buy from the wholesalers and sell goods to the consumers.
(b) Retailers usually sell for cash.
(c) They deal in different kinds of goods.
(d) They buy in small quantities from the wholesalers and sell in smaller quantities to the ultimate consumers.
(e) Retailers usually sell at their shops. They provide door delivery only at the request of the consumers.
(f) A retailer needs a shop or a showroom to sell.
Commerce is the conduct of trade among economic agents , Generally, commerce refers to the exchange of goods, services, or something of value, between businesses or entities.
(i) Commerce facilitates the exchange of goods and services through trading.
(ii) Commerce provides employment opportunities for a lot of people.
(iii) It increases the standard of living of the people through provision of variety of goods.
(iv) Commerce is key to trade and the money generated boosts the economy
(v)Commerce can bring in outside trade which can open the doors to the lucrative export market
(vi) Commerce creates jobs, from the suppliers to the staff working in the shops
Credit sales are payments that are not made until several days or weeks after a product has been delivered
(i) Acceptance :
Acceptance is exactly what it sounds like: the person receiving the offer agrees to the conditions of the offer. Acceptance must be voluntary. This means that a person who signs a contract when a gun is pointed directly at him is legally not able to accept the offer, because he is under duress.
(ii) The Offer:
The offer is the “why” of the contract, or what a party agrees to either do or not to do upon signing the contract. For example, in a real estate contract, the seller will offer to sell the property to the buyer for a certain price.
Consideration is what one party will “pay” to complete the contract. Payment is a loose term when defining consideration in a contract, because what a party gets for signing the contract isn’t always money.
Those signing the contract and entering into the contract agreement must be competent. This means that they are of legal age to sign a contract; they have the mental capacity to understand what they are signing; and they are not impaired at the time of signing – meaning they are not under the influence of drugs or alcohol.
(v) Legal Intent:
This requirement for a contract refers to the intention of each party. Often, friends and family members will come to a loose arrangement but they never intend for it to be legally binding, that is, they do not intend that one person could sue the other if someone does not do what they said they would do. This type of agreement is not a valid contract because there is no legal intent.
[Pick any five]
(i) Order Cheque.
(ii) Crossed Cheque.
(iii) Open cheque.
(iv) Post-Dated Cheque.
(iv) Stale Cheque.
(v) Traveller’s Cheque.
(vi) Self Cheque.
(i) Checking and Operating Accounts:
The most common benefit of a commercial bank for small business is that it’s a safe place to keep your money.
(ii) Debit and Credit Cards:
Banks offer a variety of small-business debit and credit cards. Debit cards usually come with your checking or operating account.
(iii) Lines of Credit:
If you think you might need credit but don’t want to pay interest on a large loan, you can choose to open a line of credit with a bank.
(iv) Commercial Small Business Loans:
Banks offer loans for purchasing equipment, paying bills, buying a company vehicle or buying real estate.
(v) Banks Offer Advice
Your bank can offer you small-business advice in a number of areas, such as tax planning, retirement accounts, insurance, payroll management, creating financial documents and managing your cash flow, points out Inc. magazine.
business environment is a marketing term and refers to factors and forces that affect a firm’s ability to build and maintain successful customer relationships.
(i) Cultural environments: are environments shaped by human activities, such as cultural landscapes in the countryside, forests, urban areas and cities, fixed archaeological structures on land or water, constructions and built environments from different ages, along with bridges, roads, power lines and industrial and.
(iii) A legal environment : is a laws which are passed by the government for business operation
(iv) political environment is the government actions which affect the operations of a company or business.
Branding is a marketing practice in which a company creates a name, symbol or design that is easily identifiable as belonging to the company.
(i) Branding improves recognition.
(ii) Branding creates trust.
(iii) Branding supports advertising.
(iv) Branding builds financial value.
(v) Branding inspires employees.
(vi) Branding generates new customers.
(i) it has huge development costs
(ii) it has Limited quality flexibility.
(iii) Changing the perception for the brand is hard.
THEORY ANSWERS COMPLETED
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