Topics in CommerceDivision of Labour and the Conditions necessary for it Forms, Advantages and Disadvantages of Division of Labour Balance of Trade and Balance of Payments Meaning and Types of Production Deferred payment and its benefits Commodity market explained Marketing Explained Meaning, Scope, Functions and Characteristics of commerce
Academic Questions in Commerce
QUESTION: What does a bearer cheque mean?
.For instance, if Mr. Jibola presents a bearer cheque to the bank, such cheque may have a different name written on it; e.g James John. Regardless, the cheque will still be made payable to Mr. Jibola
A bearer cheque is a cheque that is made payable to whoever presents it. The cheque can be presented by anyone regardless the name written on it
QUESTION: What is an order cheque?
An order cheque is a cheque made payable either to the person whose name is written on it OR on the order of the one who wrote the cheque. This implies that:
Let’s explain production using this analogy: There is something you probably would like. It could be a phone, car, console game, movie or something else. All of these things would have underwent a series of transformation processes before you could enjoy them. The goal of production is to indeed satisfy your demand for these transformed things.
According to Parkinson and Bates,
Production is the organized activity of transforming resources into finished products in the form of goods and services.
From the above definition, the objective of production is to satisfy the demand for such transformed resources. This transform resources could be a car, phone or something else.
When a service is rendered, such rendered service is considered to be "production" because it satisfies the needs or want of the recipient or consumer. Therefore, people who provide services like hair barbers, security men and public bus drivers are considered productive; and whatever service had been rendered may also be referred to as production.
An important point to note is that people pay for the end product of production (which could be goods or services).
The main purpose of production is to satisfy human needs and wants.
The point is "anything made or created that is NOT wanted nor needed is not considered as production".
From what had been written above, we can also state that:
Production is any activity carried out to satisfy the needs and wants of humans; who would make payments or a form of exchange in return.
Note: An exchange is involved in production and will often be done in the form of monetary exchange. When a person renders a service for free or satisfies human needs/wants for free, such is not considered as production. Production is always an economic activity (that is, it involves money earning and money spending).
The focus of primary production are raw materials. Any activity that involves the acquisition of material(s) from the surface of the earth with the intention of satisfying human needs or want is referred to as primary production. For instance, primary production is when a farmer prepares a land for crop production, plants on the farmland and eventually harvests the agricultural produce. Another example is a miner who goes down the earth in search of gold or diamond or iron or any other natural resources. Also, a fisherman doing his job of catching fish on the sea or ocean is said to be involved in primary production. In primary production, the produce or product are derived in their raw form. Most times, the materials or products derived from primary production can be further processed during secondary production.
Any activity that turns raw materials or intermediate material or materials from primary production into a finished product is referred to as secondary production. For instance, secondary production involves the conversion of iron ore (raw material) obtained from mining into a finished product like steel. Another instance is when cassava (a raw material from agricultural produce) is processed into garri (garri is a local food in Nigeria and is the finished product here). In short, secondary production involves the assembly and manufacturing processes.
Note: Most industries obtain their resources from primary production in order to manufacture a variety of products; for instance, the plastic industry may obtain its resources from oil, natural gas and coal (which are products derived from the fractional distillation of petroleum or crude oil).
Any activity that put finished goods or services into the hands of the final consumer is termed tertiary production. They are the commercial services that support the distribution process of production. Examples of tertiary production are the distributive sales person or marketer, advertising company, banking, transportation, a teacher in a classroom and so on. You may need to read our previous article on marketing HERE.
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