Commerce

SCHEME OF EXAMINATION:

There will be two papers, Paper I and Paper 2, both of which will constitute a composite paper to be taken at one sitting.

PAPER I: Will consist of fifty multiple choice questions to be answered in 50 minutes for 50 marks.

PAPER II: Will consist of eight essay-type questions out of which candidates will be required to answer any five within 2 hours for 100 marks.

INTRODUCTION

i. Definition of Commerce and E - Commerce

ii. History/Background of Commerce

iii. Scope of Commerce and E-Commerce

iv. Functions of Commerce and E-Commerce

2. OCCUPATION

i. Meaning of Occupation

ii. Types;- Industrial, Commercial, Service Occupation

iii. Factors that determine types of occupation/employment Career Opportunities

3. PRODUCTION

i. Meaning

ii. Factors – land, labour, capital, and entrepreneurship

iii. Types:- Primary, Secondary, and Tertiary production

iv. Division of labour/specialization- meaning - types - advantages and disadvantages, - limitation

v. Inter-relationship between production and exchange

4. BUSINESS UNITS

i. Meaning and objectives of business.

ii. Forms of business units
— Sole proprietorship
— Partnership
— Co-operative Societies
— Credit Union and Thrift Societies
— Public enterprises
— Companies -

iii. Types, Formation, characteristics, comparison, advantages, and disadvantages

iv. Sources of capital of each forms of business

v. Meaning and purpose of - Amalgamations, - Mergers and acquisitions - Trust, - Holding companies and Subsidiaries - Consortium and Cartel

vi. Dissolution/Liquidation of Companies/Partnership

5. TRADE ASSOCIATIONS

Aims and functions of

i. Trade Association

ii. Chamber of Commerce, Employers Association

iii. Consumer Association/Consumerism

6. BUSINESS CAPITAL AND PROFITS

i. Meaning and types - Authorized/Registered/Normal capital, called-up, paid-up capital, capital owned, liquid/circulating capital

ii. Credit - Meaning, Sources, Instrument, and Functions

iii. Calculation of working capital, the Importance of working capital

iv. Profits - Meaning, types, and calculation of profit

v. Turnover - Meaning, calculations, and factors affecting turnover.

7. TRADE

a. HOME TRADE

Purpose and branches of trade:
- Home Trade and Foreign Trade
- Meaning and Differences

i. Retail trade:

Functions of retailer
- Factors to consider in starting a retail business
- Reasons for success/failure of retail business.

ii. Small scale and large scale retailing
- Types of Retail Outlets
- Unit shops, Stalls, Hawkers, Kiosks, Mobile shops, Supermarket, Chain Stores, Department Stores, Shopping malls, Hypermarkets and Mail Order business

The main characteristics of each.
- Advantages and disadvantages.
- Modern trends in retailing
- branding, self service, Vouchers. Vending machines, credit cards.

iii. Wholesale trade
- Functions of Wholesalers
- Types of Wholesalers.
- Factors.
- Merchant and agent Wholesalers

iv. Factor making for elimination and survival of middlemen

v. Channel of Distribution: Meaning, Types. Factors for choice of Channel

b. FOREIGN TRADE

i. Meaning - Types: Import, export, and entreport

ii. Basic concept in International trade
- Terms of trade
- Balance of trade
- Balance of payment - favourable, unfavourable, visible, and invisible items
- Bilateral and multilateral agreements and counter trade

iii. Advantages and Disadvantages

iv. Barriers to Foreign trade

v. Tariffs –
- Meaning
- Reason for tariffs

vi. Functions of port and Airports Authorities
- Customs and Excise Authority and Shipping
- Clearing and forwarding Agents.
- Exports promotion Council.

8. PURCHASE AND SALE OF GOODS IN HOME AND FOREIGN TRADE

i. Procedure and documents used in business - Order, Indent, Consular Invoice, Ordinary Invoice, Credit/Debit notes, Proforma Invoice, Letter of hypothecation, documentary credit, certificate of origin, certificate of inspection, insurance certificate.

ii. Price Quotation - Trade discount, Cash discount, Quantity discount, COD, CWO, CIF, FOB, E & OE, Ex-works, LOCO, FAS, FOR and Franco

iii. Terms of Payment: Cash/Spot Payment, Purchase and deferred payment.

iv. Means of payment - Legal tender – (bank notes and coins), cheques, standing order, bank draft, stamps, postal-orders, money orders, bills of exchange and promissory Note, mail transfer, traveller’s cheques, telegraphic transfer, E-payment

9. FINANCE AND FINANCIAL INSTITUTIONS

a. MONEY

i. Meaning

ii. Evolution/History

iii. Forms

iv. Qualities and functions.

b. BANKS

i. Types of Banks
- Central Bank, Commercial Banks, and other specialized banks e.g. Development Bank, Mortgage Bank, Building Society, Microfinance institutions
- Their features and Functions.
- Bureau-de-change (Meaning and Functions)

ii. E. Banking
- Meaning, forms
- ATM, Money transfer
- E Payment
- Online transfer

iii. Types of Accounts:
- Current, Savings and Fixed Deposit Account
- Their main features

c. INSURANCE

i. Meaning and basic principles – utmost good faith, insurable interest, indemnity and subrogation, Contribution and proximate cause

ii. Types of Insurance:
a. Life Insurance
- Whole life Assurance
- Endowment

b. Non life Insurance
- Motor vehicle
- Fire - Fidelity
- Burglary/Robbery/Theft
- Accidents
- Consequential Loss
- Marine

c. Types of Risk
i. Insurable Risk e.g. fundamental risks
- Pure risk
- Particular risk

ii. Uninsurable risk
- speculative risk

d. Importance of Insurance to business and individual.

e. Procedure for taking an Insurance Policy.

f. Underwriting - meaning.

g. Re-insurance - Meaning and purpose

d. CAPITAL MARKET

i. Meaning

ii. Functions

iii. Methods of raising funds by companies - offer for sale, offer for subscription, rights issue, private placement, issue by tender

e. STOCK EXCHANGE

First tier Security market

i. meaning and functions

ii. Advantages to Companies/Public

iii. Requirement for listing

Second tier Security market

i. Meaning and functions,

ii. Importance

iii. Transactions on the stock exchange

iv. Speculators - Meaning and Types

v. Types of Security - Shares, Stock, Bond gilt edge, debentures/Convertible loans

f. COMMODITY EXCHANGE

i. Meaning

ii. Types of tradable commodities

iii. Requirements for trading - Grading, Standardizing, Warehousing, Clearing system

iv. Method of Trading - open outcry and electronic mechanisms

v. Benefit of Commodity exchange

10. TRANSPORT, TOURISM, COMMUNICATION and WAREHOUSING

a. TRANSPORT

i. Meaning

ii. Importance

iii. Choice of transport

iv. Forms
a. Land
b. Water
c. Air
d. Pipeline

v. Advantages and disadvantages of each form

vi. Documents - Waybills, Consignment notes, tickets, and manifest

b. TOURISM

i. Meaning

ii. Advantages and disadvantages

COMMUNICATION

i. Meaning

ii. Types – Oral. Written, Visual, Non-verbal, Non visual, Traditional,

iii. Advantages and Disadvantages

iv. Importance and services of Post Office

v. Courier Agencies and other communication agencies – Telephone system, satellite services, internet- E-mail

vi. Computer Appreciation
- meaning
- component parts
- advantages and disadvantages.

d. WAREHOUSING

i. Meaning

ii, Importance

iii. Functions

iv. Types

v. Advantages

11. ADVERTISING

i. Meaning

ii. Roles, advantages, and disadvantages

iii. Types - informative, persuasive, Competitive, mass/specific

iv. Methods - direct and indirect

vi. Media- meaning, choice and types

12. INTRODUCTION TO MARKETING

a. MARKETING

i. Meaning

ii. Importance

iii. Functions

iv. Differences between market and marketing, market and marketing research.

b. Marketing Concept

The Marketing mix 4ps

(i) Meaning

ii. Components
- Products
- price
- place and
- promotion

c. Customer Services

i. Meaning

ii. Importance

Types – Pre and after-sales services

d. Sales Promotion

i. Meaning

ii. Methods Trade fairs, exhibitions, gifts, demonstration

Personal Selling
- Meaning

- Importance

13. LEGAL ASPECT OF BUSINESS

i. Contract
- Meaning -
- Elements of a valid contract
- Discharge of a contract

ii. Agency
- Meaning
- Creation
- Duties and responsibilities of principals and agents
- Termination

iii. Sales of goods Act

iv. Hire Purchase Act

v. Rights and Obligations of employer and Employee

vi. Government regulation of Business - patents, copyright. Trade mark

vii. Registration of Business

Areas of law that relate to Business

- Meaning and uses

Consumer Protection

i. Meaning

ii. Need for protection

iii. Means of protection

iv. Consumerism
- Meaning
- Means
- Instrument of protection
- Government Legislation
- Food and drugs Act
- Standard organization Act
- Price Control Act
- Factory, Shops and Offices Act
- Product quality

14. Government policies relating to business

a. Commercialization

b. Privatization

c. Deregulation

i. Meaning and Reasons

ii. Advantages and disadvantages

iii. Comparison/differences

15. INTRODUCTION TO BUSINESS MANAGEMENT

i. Meaning

ii. Objectives of business

iii. Meaning of Business Management

iv. Functions v. Business Resources - Man, Money, Materials Opportunities/Goodwill

vi. Structure of Business
- Organizational setup
- Organisational chart
- Departments
- Functions of each
- Authority, Delegation of Authority
- Responsibility
- Span of Control Meanings

vii. Business and its environment Economical
- Political Competition Technological etc

viii. Social responsibility of Business to the Society

ix. Importance of Inter and Intra departmental communication