Alfred Ajibola
- Tue, 07th May, 2019 @ 7:05 PM
Topics in Commerce
Contract of Employment: Terms of employment contract Principle of Marketing: People as a marketing mix and their importance Principle of Marketing: Positioning as a marketing mix Principle of Marketing: Packaging as a marketing mix Elements of promotion in marketing mix Principle of Marketing: Promotion as a marketing mix Principle of Marketing: Place as a marketing mix Principle of Marketing: Price as a marketing mix Principles of Marketing: The seven principles of marketing mix Factors necessary for division of labour Disadvantages of division of labour Advantages of division of labour Concept of Outbound Marketing Inbound Marketing explained Types of production in commerce 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 tradeAcademic Questions in Commerce
In commerce, which of the following is false with regards to a commodity?
A. A commodity must always have a market value
B. Rendered services are also instances of commodities
C. Products applicable to commodities can be bought or sold with money
D. A commodity must be standardized
E. A commodity must be usable upon delivery
F. Commodities can be traded in the futures market
Whatever is being marketed must always provide value to its potential consumers.
A. True
B. False
Which of the following is not a branch of marketing?
A. Merchandising
B. Promotions
C. Forex
D. Search Media Optimization
E. Social Media Optimization
F. Copywriting
Which of the following is not a characteristics of commerce?
A. The only aim of commerce is to make profit
B. It is a discontinuous process after profit had been made
C. It is accompanied with challenges and uncertainties
D. It is 100% business and economic activity
E. Transaction processes are always involved in commerce
F. It connects the process of production and marketing
Which of the following is not a function of commerce?
A. Unnecessary in times of emergencies like earthquakes and wars
B. Facilitates mass production of goods
C. Influences transportation network within and outside a state
D. Attempts to satisfy human needs and wants
E. Improves the standard of living
F. Acts as an online business link between buyers and sellers
One of the following is a form of division of labour.
A place where people buy homogenous goods in large quantities is called _____.
A. Wholesaler's Market
B. Goods Market
C. Products Market
D. General Market
E. Commodity Market
F. Forex Market
Any activity aimed at getting people interested in a company's product or service is termed _____.
A. Commerce
B. Economics
C. Financial Accounting
D. Marketing
E. Production
F. Distribution
Let us begin by explaining the concept of production using the analogy below:
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. To this end, the goal of production is to indeed satisfy your demand for these transformed things.
According to Parkinson and Bates,
Production is defined as an organized activity of transforming resources into finished products in the form of goods and services.
From the above definition, the objective of production is therefore to satisfy the demand for goods and services. The transformed resources of production could be a car, phone or something else.
Please read more on demand and law of demand here.
It is worthy of note to state that whenever services are rendered, such rendered services are also considered as production. This is true because the rendered services satisfy the needs or wants of the recipient or consumer.
Therefore, people who provide services like hairdressers, security men and public bus drivers are considered productive; and whatever service had been rendered can appropriately be referred to as production.
It is important to state that consumers will always pay for the end product of production (which are goods and services).
Please read on the agencies of consumer protection here.
Importantly, recall that the main purpose of production is to satisfy human needs and wants.
The point is: 'anything made or created that isn't wanted nor needed is not considered as production'.
From what had been written above, we can further defined production thus:
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.
An exchange is always involved in production. It will involve a form of monetary exchange with goods or rendered services.
Please read on bank notes and coins and characteristics of legal tender here.
Note: When a person renders a service for free or satisfies human needs/wants for free, such is not considered as production.
Please read more on community and volunteer services here.
In conclusion, production is always an economic activity. This means that it involves money earning and money spending.
Please read on meaning and scope of commerce here.
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Amazing facts in Commerce
With Amazon Smile, you can donate 0.5 percent of your purchases to a charity of your choosing
Check it out here
The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung
North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola
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
Balance of Trade can be defined as the total value of goods imported and exported by a country during a specific period; usually yearly or annually.
Balance of trade can be either positive, negative or zero
A positive balance of trade implies that a country exports more goods than its imports. China as a country is likely to have a positive balance of trade since it exports a variety of goods to other countries.
A negative balance of trade is often considered as an unfavorable balance of trade since the country's importation exceeds its exportation. Nigeria (as at 2018) is likely to have a negative balance of trade.
A zero balance of trade is reached when imports equal exports.
Please read on balance of trade and balance of payments here.
Balance of Payments is defined as a record showing the relationship between a country’s total payment made to other countries and the total money received from other countries within a time period.
The balance of payments is a guide that tells a country whether it has enough savings to pay for all its imports. It will also show the economic output of a country.
Needs are things considered necessary for an individual or a group of persons. Personally, they may be referred to your required goods and services. Your needs are necessary and you consider them very important for your well-being. Examples are food, clothes and shelter.
Wants are always desired. They are not necessarily required and you can absolutely do without them. Examples of wants are expensive cars and watches.
According to Parkinson and Bates, Production is defined as an organized activity of transforming resources into finished products in the form of goods and services.
From the above definition, the objective of production is therefore to satisfy the demand for goods and services.
It is worthy of note to state that whenever services are rendered, such rendered services are also considered as production. This is true because the rendered services satisfy the needs or wants of the recipient or consumer.
Therefore, people who provide services like hairdressers, security men and public bus drivers are considered productive; and whatever service had been rendered can appropriately be referred to as production.
A prepayment is somewhat an opposition to deferred payment. This is true because the concept of prepayment oversees that the buyer makes payment beforehand and must wait to enjoy whatever had been paid for after some significant time had elapse.
In short, you can 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. Another example is an online payment for items yet to be received.
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