Author: Msomi Bora

TOPIC 6: STOCK ADMINISTRATION Stock Administration Meaning of the Term Administration Define the term stock administration Are the overseeing and controlling of the ordering, storage and use of components that a company will use in the production of the items it will sell as well as the overseeing and controlling of quantities of finished products for sale. A business’s inventory is one of its major assets and represents an investment that is tied up until the item is sold or used in the production of an item that is sold. It also costs money to store, track and insure inventory.…

TOPIC 5: WARE-HOUSING MANAGEMENT Ware-housing Management Meaning of the Terms Ware-housing and Ware-house Define the terms ware-housing and ware-house Warehousing is the institutional arrangement for the storage of goods i.e. receiving, storing and dispatching the goods to the uses. It is a very important aids to trade and through it trade can be operated efficiently. A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities, towns and villages. A warehouse is an establishment for the storage or accumulation of goods.…

TOPIC 4: WHOLESALE TRADE Wholesale Trade Meaning of Wholesale Trade Define wholesale trade Wholesale trade is a form of trade in which goods are purchased and stored in large quantities and sold, in batches of a designated quantity, to resellers, professional users or groups, but not to final consumers. Also wholesale trade may be defined as marketing and selling merchandise to retailers, to other wholesalers, or to industrial,commercial,professional or other institutional users in contract to selling to household consumers, to individuals for personal use or farmers. Wholesaler: A Person or firm that buys large quantity of goods from various producers or vendors, warehouses…

TOPIC 3: RETAIL TRADE Retail Trade Before introducing a concept of retail trade, lets explore the difference between a wholesaler and a retailer first. This will help you to understand the relationship between the two concepts and catch up on the other concepts. Below is a summary that explains their differences. Meaning of Retail Trade Define Retail Trade Retail trade is the sale of goods in small quantities to consumers. OR is a business activity involving buying goods and retailing them to ultimate consumers without changing the physical and chemical form of goods. Please click the link below to find…

TOPIC 2: THEORY OF SUPPLY Theory of Supply The Meaning of Supply Explain the meaning of supply What Is Supply? In economics, we have two forces: the producer, who makes things, and the consumer, who buys them. Supply is the producer’s willingness and ability to supply a given good at various price points, holding all else constant. An increase in price will increase producer’s revenues, so they’ll be willing to supply more; a decrease in price will reduce revenues, and so producers will supply less. The Law of Supply: The law of supply states that, ceteribus paribus (Latin for ‘assuming all else…

TOPIC 1: THEORY OF DEMAND Theory of Demand In this concept, we are going to know about demand side of an economy. Demand is a consumer need to own the product or experience the service. Example If you want to buy a pen, this means you are demanding it. Be it a good or a service like quality education, we need to pay for it. Demand is the consumer side of an economy, you are going to see about the law of demand and factors which influence demand. This will be a wonderful experience for you as a commerce student…

COMMERCE NOTES FOR FORM ONEClick the links below to view the notes:TOPIC 1 – THE SCOPE OF COMMERCETOPIC 2 – PRODUCTION

TOPIC 2: PRODUCTION Production Meaning of the Term “Production” Define the term “Production” Production-is any activities, which results in the creation of goods and services in order to satisfy human wants. In economics sense, production is for exchanging, In the general meaning production may mean the creation of goods and services for personal consumption. Production is not complete if there is no consumption. Therefore, production involves activities which facilitate transfer of goods and services from the areas where they are produced to where they are demanded for consumption. Example of such activities which facilitate transfer of goods and services are: Transportation,…

TOPIC 1: THE SCOPE OF COMMERCE The Scope of Commerce The Nature and the Subject Matter of Commerce Explain the nature and the subject matter of commerce THE MEANING OF COMMERCE The scope of commerce implies the coverage of commerce, modern commerce has become so wide. It comprises of the study of all activities in the transfer (distribution) of goods and services from the producers to consumers. Activities like transportation, communication, insurance, banking and advertisement have played a huge role in development of commerce. Trade within the boundaries and across the nation’s boundaries makes commerce to acquire international status. Example,…

TOPIC 8: LINEAR PROGRAMMING Simultaneous Equations Simultaneous Equation from Word Problems Form simultaneous equation from word problems LINEAR PROGRAMMING. Linear programming – is a branch of mathematics which deals with either minimizing the cost or maximizing the profit. It gives the best way of utilizing the scarce resources available. It is so called because it only involves equations and inequalities which are linear. Simultaneous Equation. One of the methods used in solving linear simultaneous equations is a graphical method. Two linear simultaneous equations in two unknowns can be graphically solved by passing through the following procedures. Draw the two lines…