Topics in CommerceOutbound Marketing explained Inbound Marketing explained Production - Types of Production Commerce: Definitions and Scopes of Commerce Differences between Balance of Trade and Balance of Payments Balance of Payment Deficit and Balance of Payment Surplus Disadvantages of Foreign Trade Divisions of Foreign Trade Advantages of Foreign Trade What is Foreign Trade? Types of Foreign Trade Scheme of Work for Commerce, SS1, First Term Scheme of work for Commerce, SS1, Second Term Scheme of work for Commerce, SS1, Third Term Division of Labour: What is Division of Labour? Forms, Advantages and Disadvantages of Division of Labour Balance of Trade and Balance of Payments Production: Definitions and Examples of Production Deferred payment and its benefits Commodity Market, Types and Importance of Commodity Market What is Marketing? Branches of Marketing
Academic Questions in Commerce
The followings are advantages of division of labour EXCEPT _____.
Which of the following statement is incorrect concerning division of labour?
What does a bearer cheque mean?
What is an order cheque?
Have you ever made a payment contract such that you received goods or services without making an immediate payment?
If yes; and suppose you took some significant time before you were able to make the payment for what you initially received; then this delayed payment is known as deferred payment.
By definition, deferred payment is a payment made in the future after a buyer receives goods and services.
It is the “buy now, pay later” type of transaction.
According to the seller, the money yet to be received after the supply of goods or services is called accrued revenue or unrealized revenue or accrued assets.
According to the buyer, the money yet to be paid after the delivery of goods or services is called an accrued expense. For instance, a company that owes employees salary is said to have an accrued expense.
Deferred payments are referred to accrued revenue from the perspective of the seller.
From the perspective of the buyer, deferred payment is referred to as accrued expense.
Note: A prepayment is a likely reverse of deferred payment in the sense that after the buyer makes payment, he or she only gets to enjoy whatever had been paid for after some significant time had elapse.
Think of a prepayment as "paying in advance".
An example is when a tenant pays in advance to a landlord for an apartment yet to be used.
Having a good understanding of deferred payment is important to accountants because they can act as a criteria in valuing an asset on a company’s record.
Deferred payment will have positive outcomes in a society if properly implemented.
Below are some advantages of deferred payment:
A student who is financially unstable may apply for a deferred payment scheme which comes in a variety of forms; for instance, the student may be allowed to conclude his or her education for free and is only permitted to start making payments after such student secures a job.
Deferred payment programs have presented an opportunity to the children of the financially unstable to successfully complete their tertiary education rather than ending up as dropouts.
Farmers can receive a non-interest loan to boost their agricultural activities. Some may use this money to buy quality seeds, fertilizer, and agricultural machinery. They are expected to pay back from the profit that had been made.
A country may boost its export of agricultural produce in this way, especially when the necessary conditions (of deferred payment) are put in place.
People are given the opportunities to buy landed properties while spreading its payment over a period of time. During, this time, the buyer acquires the property and maximizes it for whatever his or her intentions are.
It is important to know that the buyer may pay some additional interest during a stipulated time duration.
For entrepreneurs with a great business vision but lack the capital to implement it, going through the deferred payment route is one of the best alternatives.
We have many financial institutions that are willing to lend out money to their customers over a period of time without a substancial interest rate.
Many people have ended up becoming dependent through this very process.
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Alfred Ajibola is a Medical Biochemist, a passionate Academician with over 7 years of experience, a Versatile Writer, a Web Developer, a Cisco Certified Network Associate and a Cisco CyberOps Associate.
Amazing facts in Commerce
Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.
Amazon's first profit was in 2003. Its founder "Jeff Bezos" is the richest man in the world as at 2018/2019
NOTABLE POINTS IN Commerce
Commerce can be defined as the exchange of goods and services, usually for money and on a large scale that will require the transportation of such goods and services.
Commerce is very important to the life of any Nation for the following reasons:
A public company is not owned by an individual. Usually, it is owned by groups or a very large number of people.
The shares of a public company are traded freely on the stock exchange.
Below are some features of a public company
The four elements of the marketing mix are usually referred to as the 4 “P”. These are:
Think of marketing mix as the set of marketing tools that an industry or company uses to drive or accomplish its marketing objectives in the target market