Explain the following business terms:

(a) standing order

(b) bank draft

(c) legal tender

(d) money order

(e)I.O.U
 

 (a) Write the following commercial abbreviations in full:

(i) C.OD (ii) C.I.F (iv) E & O.E

(b) The sale of a good costing Le100,000 attracts a trade discount of 5% and a cash discount of 5%. You are required to calculate the:

(i) trade discount value

(ii) cash discount value

(iii) net amount payable by the buyer.  
 

Explain five ways in which commerce is important in the life of a nation 

 (a) List four features of a self service shop.

(b)State four disadvantages of a self service shop.

(c)State four importance of working capital to a business. 
 

 (a)State four functions of wholesaler to a retailer.

(b) Explain five advantages of small scale retail business over a large scale business.