Commerce

Factors necessary for division of labour

len Alfred Ajibola - Wed, 05th February, 2020 @ 12:43 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 trade


Academic Questions in Commerce

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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. Agonistic division of labour
  • B. Antagonistic division of labour
  • C. Mutualistic division of Labour
  • D. Advanced division of labour
  • E. Solitary division of labour
  • F. Occupational 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


Factors required for division of labour:

Division of labour is defined as the act splitting a goal into a number of different processes such that each process is done by a different person or group of persons.

Please read on the concept of division of labour here.

You can read on the advantages of division of labour here.


For a factory or company to effectively carry out division of labour, certain conditions must be met. Below are some of the needed conditions required for division of labour:


1. Presence of a big market

A large pool of economists are of the opinion that division of labour will thrive where there is a big market for manufactured products.

Please read on the concept of market in economics here.

When the market for a product is small, a producer will make little sales or profit on such product. The producer will also find it difficult to pay other people to work for him.

Conversely, a large factory will embark on division of labour if there is a large market to sell their variety of products.

Please read on production here.

 

2. Nature of the job

Division of labour is necessary for some jobs while it remains unrealistic for other jobs.

Consider the instance below:

  • A taxi driver will find it difficult to embark on division of labour while a water production company will likely require division of labour to achieve its business purposes.

Please read on the elements of management here.

 

3. Availability of capital

An entrepreneur with little capital will find it difficult to embark on division of labour while another with a huge capital will likely embrace division of labour since there is enough money to pay the workers.

Please read on the concept and types of cost here.

Also, availability of capital will influence the purchase of machineries for production. Meanwhile, understand that division of labour is associated with the use of machines or technology in most cases.

 

4. Increased returns from sales

Producers who makes a good amount of money from the sale of their products will likely support the possibility of division of labour. This is true because producers will always further the production of their product to a larger scale when the opportunity arises. This is a concept of the law of supply.

Please read on supply, law of supply and supply curve here.

Producers who also make good returns from the sale of their products may also choose to expand their business by establishing it in other locations.

You can read on advertising here.

 

5. Availability of labour

There can only be division of labour where labour is available. Think of labour as those who are hired to work for a factory or company.

  • Recall that labour is one the factors of production and may require the use machines and technology to carry out their specific function.

The scarcity of labour will lead to scarcity of division of labour even when there is availability of capital.

Please read on the forms of division of labour here.

 

6. Organizational ability

An entrepreneur who lacks the skills and ability necessary to organize production on a large scale may find it difficult to manage and direct the workers, especially towards their fields of expertise. As a result, such entrepreneur may not be able to employ suitable persons to work in their organization.

Please read more on management and its importance here.

 

7. Definition of job processes

When a staff or hired labour does not understand the specific job they are meant to perform, division of labour may not scale well. Such staff perform other duties outside their job specification.

Please read on business and its characteristics here.

 

8. Development of the transport system

Division of labour will flourish in a society where a good transport system is present.

A good transport system is a requirement for having a large market. Consequently, a large market will encourage division of labour.

Please read more on transportation here.

Meanwhile, always understand that drivers who transport products for marketing are also a part of the team that makes up division of labour.

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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

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.

Deferred payment is defined as a future payment eventually made after a buyer receives goods and services without an initial payment. Think of it as the: 'buy now, pay later' type of transaction.

From the perspective of the seller, the money yet to be received after the supply of goods or services is called an accrued revenue, 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 can be said to have an accrued expense.

Please read more on deferred payment here

For an item to be considered a commodity, it must satisfy three conditions. These are:

  1. It must be standardized. In the case of agricultural commodities, they must be in their unprocessed state.

  2. It must be usable upon delivery

  3. The price of a commodity item must vary.

A commodity market can therefore be defined a place where people buy and sell homogenous goods in large quantities.

Homogeneous goods are products that essentially have the same physical characteristics (or qualities) as similar products from other brands.

It is noteworthy to state that foreign currencies, data and bandwidth have all been included as part of today's commodity markets. In this regard, a commodity market will always have it's own set of rules and regulations.

Please read more n commodity market here

Marketing is a broad field of study. Below are branches or divisions of marketing:

  • Advertising

  • Search Engine Optimization (SEO)

  • Merchandising

  • Branding

  • Promotions

  • Copywriting

  • Social Media Optimization (SMO)

  • Event planning

  • Customer Relationship Management (CRM)

  • Graphic Design

  • Internet Marketing

Marketing is defined as any activity or process aimed at getting people interested in a company’s product or service.

The processes utilized in marketing can take place via posters, public relations campaigns, handbills, social media, radio and television, buses, walls along the streets, the internet or just anywhere.

Below are some of the branches of marketing:

  • Advertising

  • Search Engine Optimization (SEO)

  • Merchandising

  • Branding

  • Promotions

  • Copywriting

  • Social Media Optimization (SMO)

  • Event planning

  • Customer Relationship Management (CRM)

  • Graphic Design

  • Internet Marketing

Please read more on marketing here