Welcome great EduPodian, here is your First Term SS2 Commerce Lesson Note excerpt.
Scheme of Work
1 Credit – Credit Sales and Deferred Payment.
2 Credit – Hire Purchase, Leases, Mortgages etc.
3. Purchase and Sale of goods – Main documents used.
4. Purchase and Sale of goods – Terms of Trade, Terms of Payment, Common Abbreviations.
5. Means of Payment
6-7 Consumer Protection
8-10 Limited Liability Companies
11 Revision
12 Examination
Week 1:
TOPIC: CREDIT
CONTENT
• Definition of Credit
• Basis for Credit
• Credit Sales
• Deferred Payment
CREDIT
Credit is any arrangement made with a shop, bank, trader, business organization etc. that makes it possible for money, goods or services to be obtained and payment deferred to a future date/time.
BASIS FOR CREDIT
(i) Personal integrity of the customer
(ii) Level of income of the customer
(iii) Nature and reliability of the customer’s job or business
(iv) Personal financial commitment of the customer
(v) Sources of credit repayment
TYPES OF CREDIT
1. CREDIT SALES:
This simply means the transfer of goods and services from a seller to a buyer without any payment being made immediately. The buyer takes possession of the goods with a promise to pay at a future date. Payment by the buyer could be made installmentally or all at once.
Advantages of Credit Sales to the Seller
a. Increase in sales or turnover
b. Increase in… Click here to order the complete Commerce Lesson Note for SS2 first term
Week 2:
TOPIC: CREDIT
CONTENT
• Hire Purchase
• Mortgages
• Leases/rentals
• Loans and overdrafts
• Credit Instruments
Hire Purchase
This is a credit arrangement whereby the seller allows the buyer to take possessions of goods on hire basis after making an initial deposit to be followed by a number of specified regular installments at the end of which he becomes the owner of the goods involved. Even though the buyer (i. e the hirer) obtains immediate possession of the goods by paying the initial deposit demanded by the seller, the goods will continue to be on hire and the buyer does not become the owner until he has paid the final installments
A hire purchase agreement is suitable for durable goods such as Motor Vehicles, Furniture, Refrigerators, electronics, washing machines, machinery etc. since these have a resale value in case the hirer (buyer) fails to pay the installments.
If the hirer (the buyer) defaults in payment of… Click here to order the complete first term Commerce Lesson Note for SS2
Week 3:
TOPIC: PURCHASE AND SALE OF GOODS – MAIN DOCUMENT USED
CONTENT
• Steps involved in purchase and sale of goods under home trade
• Documents exchanged between buyers and sellers – their features and uses
NOTES
Trade between the wholesalers and the retailers has a number of vital stages involving the use of some important documents. All commercial transactions are recorded by the issue of an appropriate document and copies are kept as evidence of the transaction.
The major stages involved and the documents used in home trade (i.e. trade between wholesalers and retailers) are:
STEP 1: TRADE JOURNALS: These are publications which serve as sources of information to the buyer. It usually specializes on a particular product. There are trade journals that also feature general wholesale trading.
STEP 2: INQUIRY: (or ENQUIRY): A retailer may write a letter of inquiry to the wholesaler to ask for particulars of the goods required, price list of goods required, details of payment, credit terms, delivery terms etc.
An inquiry can also be made by telephone or by personal contact.
STEP 3: QUOTATION/PRICE LIST/CATALOGUE: Following receipt of the inquiry, the wholesaler sends a quotation or price list or a catalogue by the retailer. Either of these… Click here to order the complete Lesson Note on Commerce SS2 first term
Week 4:
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Week 5:
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