SS 2 COMMERCE

September 8th, 2020

Good morning students. You are warmly welcome to today’s online Commerce revision class.

REVISION QUESTIONS.

1(a) What is tourism?

  (b) State five Importance or Advantages of Tourism in the Economic Development of Nigeria.

  (c) List five forms of tourism

  (d) State four problems of tourism in Nigeria.  

2 (a) What is delegation of authority?

  (b) State four advantages of delegation of authority.

  (c) State three disadvantages of delegation of authority.

3 (a) Give four uses of organization chart.

  (b) Explain three reasons why manager may refuse to delegate authority.

  (c) Explain five factors which determine the span of control.

4 (a) What are business resources?

   (b)  State five objectives of a business.

   (c)  State and Explain four classifications of business resources.

    (d) State four rights of unpaid seller of goods.

SEPTEMBER 1ST, 2020

LESSON 16

INTRODUCTION TO MARKETING II

You are welcome to this week on-line class. I hope you are following the class and you are reading very well.

MARKET RESEARCH

Market research is the study of consumers’ demand by a firm in order to assist it in expanding its output and the marketing of its product. It is the systematic and objective search for and the analysis of information to guide managers in production and marketing. Marketing research is conducted through the following ways: personal interview, telephone, questionnaire and observation.

MARKETING CONCEPT

Marketing concept is the idea or belief that consumers/ customers should be treated as ‘Kings’. The interest and desires of consumer/customers must be taken into consideration in bringing out products or any business activities. The basic idea behind marketing concept is consumer orientation.

Marketing concept involves these fundamental propositions:

  1. Consumer Needs: Ask the consumer about their needs.
  2. Product Development: Development of products to suit the needs of the consumers.
  3. Planning and Organization: This is a marketing programme to bring the products to the customers.
  4. Post Sales Activities: Carry out post sales activities that will ensure that the products are satisfactory to consumers.

CONSUMER ORIENTATION

This is the concept of marketing which begins and ends with the needs and wants of the consumers rather than that of the organization. Consumer satisfaction is the major aim of the concept.

CONSUMER SOVEREIGNTY

This concept states that consumers are always right. This is a situation in an economy where the desires and needs of consumers control the output of producers i.e. the determination of what to produce should be in hands of the consumers and not the government.

Assignment

What are the elements of marketing mix?

AUGUST 25, 2020

Good day students and welcome to today’s online Commerce revision class.

REVISION QUESTIONS

1 (a) What is a contract?

   (b) List and explain five ways by which a contract can be discharged.  

   (c) List five elements of a valid contract.

2. State two distinguishing features between each of the following:

(a) A commissioned agent and a del credere agent;

(b) Consular invoice and proforma invoice

(c) Insurance and assurance

(d) A broker and a factor.

3(a) State three duties of an agent to his principal.

  (b) Mention five duties of a principal to his agent.

AUGUST 18, 2020

LESSON 14

You are welcome to this week on-line class. I hope you are writing the note in you note book. Remember that you are going to submit your note for marking as soon as the school resumes.

INTRODUCTION TO MARKETING

Marketing consists of the performance of business activities that direct the flow of goods and services from the producer t the consumer or users in order to satisfy customers and accomplish the company’s objectives. Marketing refers to business activities a company undertakes to promote the buying or selling of a product or service. Marketing encompasses all activities aimed at facilitating exchange such as pricing, advertising, selling, promotion, research, sales forcasting and delivering products to consumers or other businesses.

Marketing creates time, place and possession. It arranges for production and making goods available at the right time, in the right place and form.

Market: A market may be defined as a place where goods and services are exchanged. It is an avenue for buying and selling. It is a place, point or any means of communication whereby the transfer of title or ownership of goods and services can be effected.

TYPES OF MARKET

  1. CONSUMER MARKET: This consists of the purchasers in the household who intend to consume or benefit from the purchased products and who do not buy products for the main purpose of making profit.
  2. INDUSTRIAL MARKET: This consists of individuals, groups or organizations that purchase a specific kind of product for direct use in producing other products or for day-to-day operation.
  3. PRODUCER MARKET: It consists of individuals or businesses that purchase products for the purpose of making profit by using them to produce other products.

MARKET SEGMENTATION

Market segmentation is the process of dividing a total market into market groups, consisting of people who have relatively similar product need. The market will be subdivided into homogeneous subsets of customers where any subset may be selected as a target market to be reached with a distinct mix.

TYPES OF MARKET SEGMENTATION

1) Demographic Segmentation

Demographic segmentation is one of the most standard types of market segmentation. Segments are created based on observable or reported customer data pertaining to the individual consumer such as age, gender, and race. Other segmentation demographic traits include:

  • Sex
  • Nationality
  • Occupation
  • Marital Status

This type of data is easy to collect because they are observable or easily attainable through surveys and other customer interactions.

Whereas B2Cs might find tracking personal traits more beneficial, B2Bs will often look into traits based on the company or organization as a whole. This type of market segmentation is also referred to as firmographic segmentation. Key demographic traits include:

  • Industry
  • Company size
  • Number of employees

2) Geographic Segmentation

Geographic segmentation is all about location. At the very basic level, it is concerned with identifying consumers based on their geographical location, such as a person or organization’s country, state, city, and zip code. For a more detailed analysis, marketers could also look into other geographic segmentation traits such as:

  • The local climate
  • Local businesses that are within a certain area or radius
  • Population count
  • Classification of an area: is it rural, urban, or suburban

When used proactively, geographic segments can be studied to answer the following questions:

  • Where do my clients usually come from?
  • Which branch is performing the best?
  • What are the traits associated with a specific geographical location?
  • What location-specific messaging should I use to appeal to the local audience?
  • Is there a difference between marketing in the city and the rural areas of the same country?
  • What is the best kind of media to use when engaging local audiences?

Geographic segmentation is especially useful for a business with a global presence. Location-specific targeting is by extension also culture-specific; when you know how the market operates in a specific area, it’s much easier to get to know what the local customers expect from businesses.

Tracking this is crucial because the marketing messages that work best with consumers in the U.S. might not work so well with consumers in South East Asia. Geographic segmentation ensures that you understand the local culture and relate to the audience as genuinely and naturally as possible.

3) Behavioral Segmentation

Behavioral segmentation is different from the other market segmentations because the data you collect is based directly on consumer behavior. Geographical, demographic, and even psychographic segmentation works by supposing that a certain characteristic is predictive of consumer behavior. On the other hand, this type of market segmentation provides actionable data directly from consumer-to-business interactions.

Customers can be classified according to:

  • Types of content consumed on website
  • Usage rate: is the user a frequent or infrequent user
  • Purchasing habits
  • Brand awareness
  • Knowledge of product or service
  • Purchase history

Behavioral segmentation is particularly useful when making sales and marketing decisions because it reveals how buyers directly interact with your brand. You can use this segment to get to know underlying behaviors that drive a sale, and maximize those to increase your conversion rate.

4) Psychographic Segmentation

Psychographic segmentation is a bit similar to demographic segmentation in that the data reveals something specific to the individual. However, instead of looking at your customer’s age, gender, and marital status, this segment type is focused on psychological attributes and how they drive a sale.

Out of the four market segment types, psychographic data is the hardest to extract because your target audience won’t readily reveal their preferences. To pull off psychographic segmentation, marketers can either create an approximation of their buyers by developing a buyer persona or engage in relationship-building tactics that can slowly reveal unmeasurable, qualitative data about your consumers. This includes:

  • Values and beliefs
  • Lifestyle
  • Interests and hobbies
  • Personality traits

Psychographic segmentation is crucial if you want to understand roadblocks that occur because of lifestyle choices and values more so price or service or product quality. Modern consumers are typically concerned with a brand’s ethos, and performing a psychographic-based analysis can help you develop a more sympathetic approach to an otherwise unattainable customer base.

OTHER WAYS TO SEGMENT YOUR MARKET

  • Seasonal segmentation: Seasonal segmentation takes advantage of special holidays, events, and seasons. It’s a great example of how targeting at the right time can boost sales. Seasons can include anything from back-to-school promos to new year marketing campaigns.
  • Generational segmentation: Different generations will have different customer service experiences, preferences, and expectations. Segmenting your audience according to generation is a great way to get quick insights since it already provides both quantitative and qualitative attributes that could help you understand your customer base better.
  • Price segmentation: Instead of alienating buyers within a certain budget range, you can develop products or services that are more accessible for certain groups. By doing so, your business can tap into different types of markets, regardless of their financial capability.

BENEFITS OF MARKET SEGMENTATION

1) Better Allocation Of Resources

How much do you spend on marketing campaigns and how much value do you receive in return?

Instead of spending hundreds of dollars and countless man-hours trying to create the perfect email for your customer base, market segmentation compels you to develop a more targeted marketing series that’s tailored specifically to the different types of market your business is involved in.

Customer market segmentation will force you to identify your audience and engage with profitable, probable leads while filtering out the rest.

Instead of creating messages that will only have minimal impact on hundreds of strangers, you have the opportunity to deliver a message that is irresistible to a smaller, but more sales-ready group.

2) Higher Conversion Rate

A general email campaign might give you a bigger reach, but it won’t bring you closer to customers who are willing to pay for your service or product. By performing marketing segmentation, you can provide straightforward value propositions and relevant information to potential customers.

Think of it this way: if you’re a cleaning company and you’re hoping to sell your services to people with pets at home and event planners, you won’t be using the same messaging on these customers because they have different needs.

You can talk about your cleaning services in general, but what would really impress these two types of audiences is mentioning aspects of your service that they would identify with, such as using pet-friendly cleaning products or providing a complimentary after-party clean up.

When you market to the right segment, you will see improved conversion rates because you are using the exact language they want to hear. A more personalized approach leads to higher conversion rates because you are no longer discussing general problems; you are addressing immediate concerns and needs they may have.

3) Inform Product Or Service Development

Performing market segmentation has applications beyond marketing and sales. Instead of trying to guess what your market wants, you could use data from existing consumers and use those to develop solutions that would directly address their needs.

For example, a sporting goods company already has the opportunity to segment their customers based on the type of sport. Another segment they could explore is athleticism: is the athlete a hobbyist or a professional?

If a huge percentage of their existing market is coming from casual athletes, they can develop a more suitable product pertaining to what this market needs. For instance, they could develop a more affordable product range and other workout wear designed for moderate training.

4) Identify New Markets

Market segmentation doesn’t just help you identify existing markets – it could also potentially uncover new markets to expand into. A market segment can easily be broken down into more specific segments that could lead to new opportunities.

Let’s say you’re selling handmade leather bags online for middle-aged men. After market segmentation, you find out that one common thing about your consumers is that they are either married or have families. With this information, your shop can expand into weekend bags, customized leather organizers, and other leather goods your current shoppers can gift or recommend to their family members.

Ultimately, segmentation is about getting to know your audience and figuring out other ways to fulfill a need or provide for a certain niche.

5) Effortless Customer Service

Previous blind-spots that you may have had with customer service can be resolved by performing segmentation in marketing. If you’re having problems with conversion, you can use psychographic information to develop a buyer persona.

For instance, if you’re running a fitness facility targeted for people with average fitness levels of all ages, but wonder why only few inquiries convert into paying customers, you could look into reasons why existing customers have chosen your gym.

When you add psychographic data into the equation, you might realize that people sign up with your facility because they value community classes and enjoy training with groups. With this, you could create more content highlighting the community aspects of you to attract the rest of your potential customers.

TYPES OF UTILITY

  1. Form – when someone makes something (i.e. turning the form of raw material into finished goods), they assemble a product from parts and you can use it.
  2. Task – when someone does something for you, like put ice cream in a cone, or change the oil in your car.
  3. Time – making sure the product is available when people need it
  1. Place – making sure the product is accessible, bring it to the customer, or have it in convenient place
  2. Possession – letting the customer have the product, usually after they pay, they can “possess” it and hold it, transport it etc.

IMPORTANCE OF MARKETING IN AN ECONOMY

  1. Marketing bridges the gap between the producer and the consumer.
  2. It ensures consumer satisfaction
  3. It reduces wastages through marketing research thus indirectly increasing production.
  4. It assists in the transfer of goods frm the producer to the consumers.
  5. It creates market for goods and services
  6. The exercise improves the standard of living by making goods produced in one area available in another area.
  7. It informs the consumers about the availability of goods and services.

FUNCTIONS OF MARKETING

1.      Financing: It takes money to make money. As a business owner, an important function of marketing a product is finding the money through investments, loans, or your personal capital to finance the creation and advertising of your goods or services.

2.      Marketing Research: Market research is about gathering information concerning your target customers. Who are the people you want to sell to? Why should they buy from you as opposed to a rival business? Answering these questions requires that you do some on-the-ground observation of the market trends and competing products.

3.      Pricing: Setting the correct price for your product or service can be a challenge. If you price it too high, you might lose customers – but if you price it too low you might be robbing yourself of profits. The “right” price normally comes through trial and error and doing some market research.

  • Risk bearing: This involves anticipating business risks and taking appropriate measures to reduce their impact by taking the necessary insurance cover.
  • Storage/Warehousing: this makes it possible for goods to be produced ahead of demand so that they can be available when needed.
  • Transportation: This covers movement of goods from where they are produced to the point where they are required.
  • Buying/Selling/Exchange: This covers purchase of raw materials and goods from so many sources and transfer of ownership of such goods to the consumer at the right quality.
  • Grading and Standardizing: It involves ensuring that the goods conformed to the required standard and quality with respect to shape, colour, taste, etc.

ASSIGNMENT

 Differentiate between Marketing and Selling

AUGUST, 11TH 2020.

Good day students and welcome to today’s online Commerce revision class.

1    Draw up an organizational chart of Peter’s Pure Water Production Ltd.

2a. Define a contract of sale

  b. Outline six items that must be contained in a contract of sale.

3.  The sale of a good costing Le 100,000 attracts a trade discount of 5% and a cash discount of 5%.

You are required to calculate the:

(a) Trade discount value

(b) Cash discount value

(c) Net amount payable by the buyer.

ASSIGNMENT

1(a) Define advertising.

(b) Explain five demerits of advertising.

(c) Explain five different ways producers can create awareness for their goods and services.

AUGUST 4TH, 2020

LESSON 12

REVISION

You are welcome to this week on-line class. Hope you are enjoying the lessons. Based on all we have done this term, answer the following questions:

a. Differentiate between:

  1. Authority and Power
  2. Accountability and Responsibility
  3. Void and Voidable contract
  4. Employee and Employer

b. Explain the four business resources.

JULY 27TH, 2020

Good day students. By the special grace of God we are done with the 3rd term scheme of work and you are fully welcome to online Commerce revision class. May the Lord be with you as we move on fully to the revision class.

Revision Questions.

1 (a) Who is an agent?

(b) Give six duties of an agent.

(c) state three rights of an agent.

2 Write short notes on the following:

(a) Persuasive advertising.

(b) Informative advertising

(c) Competitive advertising

(d) Mass advertising

(e) Direct advertising.

JULY 21ST, 2020

LESSON 10

You are welcome to this week class. Hope you are enjoying the lessons.

This week, we will be looking at another topic.

DEPARTMENTAL COMMUNICATION

Communication is the process which involves transmitting meaningful messages between senders and receivers. It promotes rapid transfer of information from one place to another. Communication process is thus the foundation for management functions.

TYPES OF DEPARMENTAL COMMUNICATION

INTER-DEPARTMENTAL COMMUNICATION

Inter-departmental communication is the process of sending and receiving messages or information from on department to another within an organization. It refers to communication among the various departments in an organization.

The various media of communication in an establishment include: Telephone, radiophone, loud speakers, circulars and computer terminals.

INTRA-DEPARTMENTAL COMMUNICATION

This involves the sending and receiving of information within the departments of an organization. In a department, there are various units and sections which must be co-ordinated through effective communication system.

The various media of communication available for intra-departmental communication are: intercom, circulars, direct communication, bells, buzzers and notice boards.

IMPORTANCE OF COMMUNICATION TO A BUSINESS

  1. It establishes and disseminates the goals of an enterprise.
  2. It facilitates official transactions between the various units, sections and departments
  3. It helps to organize human and other resources in the most effective and efficient way.
  4. It provides permanent records for reference purposes.
  5. It bridges the gap between the top management and the subordinates.
  6. Communication makes it possible for the day-to-day activities to be speedily attended to.
  7. It leads, directs, motivates and creates a climate in which people want to contribute to the growth of the enterprise.

FACTORS TO BE CONSIDERED BEFORE CHOOSING A COMMUNICATION SYSTEM

1. Nature of Message: The means of communication depends upon the nature of the message. Urgent, confidential, private and important messages should be distinguished from ordinary, routine, open and less important messages and the means of communication are to be chosen accordingly.

2. Cost: The cost of sending a message is also to be considered while selecting a mode of communication. The result obtained should justify the expenditure.

3. Record: If the record of the communication is important it should be written, otherwise oral communication is sufficient.

4. Distance:

Distance is another factor for consideration. The mode of communication to be chosen depends on whether the message is to be sent to a nearby place or somewhere at a long distance.

5. Scale of Organisation:

Means of communication in large-scale business is different from that in the small-scale. In small business most communication is oral while in large business it is written.

6. Supporting Technology:

Both the sender and the receiver must have supporting technological communication tool to make communication through a particular medium. Suppose, A sends an e-mail to B, to get the e-mail B should have a personal computer.

Again, to get a fax message one should possess a fax machine. Therefore, while selecting a means of communication one has to consider whether supporting technological tool is available at the other end.

7. Urgency:

Selection of the means of communication is to be made keeping in view the urgency of the communication. Time available is the main factor here. Higher cost may be justified for sending the message in time.

8. Secrecy:

If the message to be communicated is secret or confidential, such means are required to be adopted that can maintain secrecy. A telephone call can be overheard, an e-mail or fax may not be appropriate, and an office memo may be less confidential. In such cases, face-to-face talking may solve the problem.

9. Safety:

The sender has to be careful about the safety of the message. He/she has to decide whether the message would be sent by ordinary post or by registered post; through courier or messenger, etc.

10. Relationship:

The relationship between the sender and recipient may be a decisive factor in the choice of the means of communication. Message of private nature may require personal contact whereas formal relationship demands official and conventional mode of communication.

Assignment

Differentiate between inter-departmental communication and intra-departmental communication.

SOLUTION

The prefix “intra” means within, so intra-departmental communications are those that occur within a department. In many companies, most employees have few conversations outside of their own department. Departments may have communication problems, rivalries or even hostilities with one another. The prefix “inter” means between, so interdepartmental communications are those that occur between departments. One way to resolve bottlenecks in the company’s operations is to graph the interdepartmental and intra-departmental communications.

JULY 14TH, 2020

Good morning students and welcome to today’s online Commerce class. Please, copy today’s note in your Commerce notebooks. Also, do your assignment and submit as at when due.

Authority can be defined as the power which has legitimacy. It is the right to give directives or command and to ensure compliance.

Power can be defined as the ability to exert influence and to compel obedience.

Accountability simply means a situation whereby a subordinate is accountable to his superior in an organization for his actions and he is obliged to report to his superior how well he has discharged his responsibilities and use the authority delegated to him.

Responsibility: It is defined as the individual obligations to carry out the duties assigned to him or her. Responsibility cannot be delegated.

SPAN OF CONTROL

The span of control or span of management refers to the number of subordinates a manager can effectively control or number of subordinates working with him.

FACTORS DETERMINING SPAN OF CONTROL

  1. The Nature of work: The nature of work will determine the span of control.  Complex jobs require more supervision and less number of subordinates, but routine jobs require less supervision but large number of subordinates.
  2. The Qualification, Training and Experience of the Manager: A well trained and experience manager will be able to manage effectively and efficiently large number of subordinates while an inexperienced manager cannot do so.
  3.  The Personality of the manager:  The style of leadership of the manager as well as the freedom to make decision will affect the span of control.
  4. The Size of the organization:  The larger the organization, the larger the number of subordinates to be supervised. 
  5. The Quality of Lateral Communication:  The quality of lateral communication which may enable the subordinates to get job done without constant reference to the superior for consultations.
  6. Level of Technological Development: The level of technological development will determine the number of subordinates that will be put under direct supervision of a manager.
  7. The Calibre of Subordinates: The caliber of subordinates in terms of experience, exposure, skill and educational background can also determine the span of control.
  8. The Demands on a Manager’s Time in other jobs: The amount of time which a manger spends on non-managerial tasks will determine the number of subordinates he can effectively coordinate.
  9. Frequency of Interpersonal Relationship between a Manager and the subordinates: The frequency of interaction between a manger and the subordinates will determine how effective the span of management will be within an organization.

DELEGATION OF AUTHORITY

Delegation of authority is the transfer of power or right to a subordinate to give orders and enforce obedience in the performance of a particular job.

Delegation of authority is the transfer of responsibility to a subordinate, with sufficient authority to enable the subordinate carry out the assignment while the superior will consider himself accountable for the delegated authority.

PRINCIPLES OF DELEGATION OF AUTHORITY

  1. There must be balance of authority, responsibility, and accountability in an organization.
  2. Responsibility cannot be delegated.
  3. There must be clarity in the functions given to each department.
  4. The principle of scalar chain of command must be clearly specified.

             Advantages of Delegation of Authority

  1. The work load of the superiors will be reduced.
  2. Training of Subordinates whom the authority is delegated to do certain jobs. 
  3. It saves a lot of time as certain duties can be delegated to the subordinates.
  4. There is speedy execution of job.
  5. It makes smooth succession possible
  6. It ensures cordial relationship.
  7. It motivates subordinates.
  8. It helps to spread out work in an organization to every worker.

             Disadvantages of Delegation 

  1. It may lead to confusion
  2. Unfinished task
  3. It leads to duplication
  4. Delegation can be abused
  5. Delegation may affect the quality of job.

 Why a Manager may Refuse to Delegate Authority

  1. Fear of expressing favouritism among the subordinates
  2. Fear of repercussion and personal judgement being called to question.
  3. Hardworking subordinates may take over the job of the manager.
  4. The fear of the subordinates detecting his fault.
  5. Fear of lack of capable subordinates.
  6. The fear of the subordinates performing better than the boss.
  7. The fear of the subordinates becoming more knowledgeable than the boss.
  8. The fear of losing touch with the department, work and staff.
  9. The fear of the subordinates making costly mistakes.

      What a Manager cannot Delegate

  1. Setting policy objectives
  2. Motivating and communicating
  3. Checking and analysing result.
  4. Setting training objectives.
  5. Disciplinary and human relations matters.  

       Interdepartmental and Intra-departmental Communication

            Communication is the process which involves transmitting meaningful messages between senders and receivers.

Interdepartmental Communication:  This is the process of sending and receiving messages or information from one department to another within an organization. The various media available include; telephone, radiophone, loud speakers, circulars and computer terminals.

Intra-Departmental Communication:  This involves the sending and   information within the departments of an organization. The various media available are intercom, circulars, direct communication, bells, buzzers and notice boards. 

        IMPORTANCE OF COMMUNICATION TO A BUSINESS

  1. It establishes and disseminates the goals of an enterprise.
  2. It helps to organize human and other resources in the most effective and efficient way.
  3. It helps to select, develop and appraise members of the organization.
  4. It provides permanent records for reference purpose.
  5. It bridges the gap between the top management and the subordinates.
  6. Communication makes it possible for the day-to-day activities to be speedily attended to.
  7. It leads, directs, motivates and creates a climate in which people want to contribute to the growth of the enterprise.
  8. It helps to develop plans for the achievement of the goals and objectives of the enterprise.

ASSIGNMENT

  1. Differentiate between;

(a)power and authority.

(b) Inter-departmental and intra-departmental.

COMMERCE

JULY 7TH, 2020                                                  LESSON 8

ORGANIZATIONAL STRUCTURE

You are welcome to this week on-line class. Are you following the lessons? We will be studying the structure of business.

ORGANISATIONAL SET UP

The organizational setup of a business involves the allocation of responsibilities and functions to different components of the organization and delegating authority to each position in order to ensure the smooth operation of the business so as to achieve the planned objectives.

PRINCIPLES OF MANAGEMENT

  1. Clarity of objectives: the aims and objectives of an organization, the strategies and means of achieving them must be clearly stated.
  2. Span of control: this is the number of subordinates under the direct supervision of a manger to ensure efficiency and effectiveness.
  3. Unity of command: this principle states that subordinates should receive instructions from their boss only as dual command affect effectiveness.
  1. Division of labour: The organization will achieve efficiency if work is divided into the smallest possible units as specialization increases productivity.
  2. Unity of direction: People engaged in the same kind of activities must have objectives in a single plan. This means that the corporate interest must supersede individual interest.
  3. Espirit de corps: Management should foster the morale of its employees and build up a team spirit. Management should be guided by the popular slogan: “United we stand, divided we fall.”
  4. Evaluation principle: this principle helps to determine or measure the contributions of every worker to the attainment of the organizational objectives.

ORGANISATIONAL CHART

Organizational chart is a diagrammatic representation of the relationship between the various organs of the organization. It shows the  line of authority and responsibility.

USES OF ORGANIZATIONAL CHART

  1. Organizational chart shows the flow of line of authority and responsibilities.
  2. It shows the various positions in an organization.
  3. The boundaries of each position holder will be shown.
  4. A chart shows the relationship between various organs in an organization.

TYPES OF ORGANIZATIONAL STRUCTURE

  1. Line organization: This refers to the direct working relationship between the subordinates and the supervisors in which the line of authority and responsibilities flow from the top executives to the lowest subordinates. A line manager has unlimited authority over a subordinate to whom he gives orders.

ADVANTAGES OF LINE ORGANIZATION

  1. It is simple and is easily understood by the employees and management
  2. Decision-making at all levels is made easy and simple.
  3. Discipline is always maintained.
  4. There is clear cut identification of duties, responsibilities and division of labour.
  5. It is good for small organizations where specialization is not very important.

DISADVANTAGES OF LINE ORGANIZATION

  1. Lack of specialization at the supervisory level.
  2. It is autocratic.
  3. There may be much pressure and demands on the top managers.
  4. Functional organization: Functional organization is a set up where certain functional relationships exist between specialist or functional managers and line managers e.g. the personal manager has a functional responsibility for all activities concerning personnel in all the departments of the organization, even though each employee has his own manager in their department.

ADVANTAGES OF FUNCTIONAL ORGANISATION

  1. Experts are allowed to make use of  their expertise for the betterment of the company.
  2. It encourages division of labour and therefore promotes efficiency.
  3. There are several supervisors and this makes for better co-ordination.

DISADVANTAGES OF FUNCTIONAL ORGANISATION

  1. Authority can overlap
  2. There is lack of fixed line of responsibility
  3. There may be lack of effective control
  4. Line and staff organization: This is a combination of line and direct executives and the specialist’s auxiliary services (functional) whereby a line organization engages experts who are to advise the line managers in the performance of their duties.

ADVANTAGES OF LINE AND Staff ORGANISATION

  1. There is efficiency through specialization
  2. Decision making can be enriched because ideas can be shared

DISADVANTAGES OF LINE AND STAFF ORGANISATION

  1. Their ideas may be unrealistic and unpracticable.
  2. Staff managers have no line of authority and no responsibility for what actually happened.
  3. Staff manager may attempt to usurp line authority.

ASSIGNMENT

“Committee” is another type of organisational structure. Briefly explain with three advantages and disadvantages.

LESSON 8 ASSIGNMENT – CORRECTION

A committee organization is an association of people set up to arrive at solutions to common problems. The line people are given opportunities to discuss their problems in the committee. The committee organizational structure is not like line or functional organization, but is similar to staff organization. Its decisions are implemented, whereas staff decisions are not necessarily implemented.   It is a formal part of the organizational structure wherein the members are specifically mentioned. For example, the Finance Committee will include all the functional managers, viz. Marketing Manager, Production Manager, Personnel Managers, etc. as members, and the Managing Director as the Chairman. It will decide the financial requirements of each and every department. The decisions taken by the committee are followed by the line people, as the committees are representatives of various functional departments

Committee organizational structure provides integrated ideas of various related people of the company. Participative management in true form is visible under committee organization.   It is an incentive to volunteer to from integrated ideas and to willingly follow them. New ideas and solutions of various problems are feasible with the committee organization.   It is a very good example of democratic management wherein every member has an equal opportunity to raise his voice and come to a common solution. Flexibility and technical excellence are possible under this organization. The top management is relieved from certain problems. The company can encounter the changing and uncertain environment in a better way. It facilitates high quality and innovative solutions to technical problems. Coordination and control become easy because open discussion is invited in the committee.   Ideas and specialized functions are feasible under committee organization.

Advantages of Committees

Pooling of opinions

The members bring in different backgrounds, values, viewpoints and abilities. These wide ranging abilities result in greater knowledge base, that results in better quality decisions. Additionally, group deliberations generally ensure a thorough consideration of problems from all angles and alternative points of view before arriving at a decision. This would not be possible if the same problem was looked at by a single executive.

Improved cooperation

The members of the committee usually get to know each other well and thus see each other”s point of view with respect. They are willing to cooperate and coordinate, specially when they become aware of their role and how their decisions are going to affect the entire organization.

Motivation

From a human standpoint, the biggest advantage of committees may be increased motivation and commitment derived from participation in the committee deliberations and indirectly in the important organizational affairs. Also, when the committee consists of managers and subordinates, it gives the subordinates some degree of recognition and importance.

Representation

Since the committee members may have different interests and opinions that may be opposed to each other, the process of committee deliberations gives a critical viewpoint and balanced outcome of these different representations. However, even though a committee should be highly representative of all interests, capabilities of the members should take precedence over the representation.

Dispersion of power

While autocratic authority makes decision making and implementation faster and easier, it may lead to misuse of power and wrong decisions. However, by spreading authority and responsibility over all committee members, this problem can be eliminated.

Executive training

The committees provide an excellent training ground for young executives. They also provide opportunity for personal development that individuals may not be able to get on their own. In the committees, they learn the value of interaction, human relations and group dynamics. They get exposed to various viewpoints and tend to think in liberal manner and get to understand how collective decisions are mode. Such type of exposure and experience enables them to take on integrative view of solving various organizational problems.

Continuity

Most committees do not replace all of its members at the some time so that some new members join to replace some old members while the other members remain and thus the continuity of operations is maintained. The U.S. Senate works on this basis, so that every two years there is on election for one:third of the total Senate.

Communication

A committee can be an excellent forum for management and workers to have simultaneous communication and discuss matters of common interest in an atmosphere of goodwill and understanding and reach some mutually benefiting conclusions.

Better chances of recommendations to be accepted

A committee recommendation is much more likely to be accepted than an individual recommendation.

Disadvantages of Committees

Time and cost

The very structure of the committee is a costly affair in terms of money and time. The nature of the committee is such that every one has an equal chance to speak out and take part in discussions and this can be very time consuming.

Compromise

Usually, there is a tendency to present unanimous decisions and hence a majority viewpoint is token as representative even when the minority viewpoint is valid. This may result in premature agreements and decisions of mediocre quality The minority may be unwilling to pursue their viewpoints for fear that they will stand out and may be labeled as uncooperative.

Personal prejudice

Sometimes, wining an argument or getting back at somebody for personal reasons may give the problem a secondary priority, thus diluting the strength of the decision.

Logrolling

This term is coined for wheeling and dealing for political interests and purposes. These political pressures may come from the top management that wants a particular point of view to dominate in the committee discussions.

Strain on interpersonal relations

In committee meetings, there is a tendency that everybody wants to please everybody else, otherwise any displeasure within the committee can strain working relations outside the committee too.

Lack of effectiveness

Certain issues are better solved by individuals rather than committees. The committees are very useful in handling grievances and interdepartmental problems, but they are not effective in formulating such policies where individual initiative and creativity is involved.

JUNE 30, 2020

Good morning students. You are welcome to today’s online Commerce class. Please, copy today’s note in your Commerce notebooks. Also, do your assignment and submit as at when due. This morning, we shall be considering business management. May God be with us as we move on.

BUSINESS MANAGEMENT

A business is any occupation or activity formed with the aim of making and in which there is risk of loss. It can be owned privately or by the government e.g. Edo line Transport, Danax, etc.

OBJECTIVES OF A BUSINESS

1. To make maximum profit.

2. To provide goods and services to satisfy the needs of people.

3. To provide employment opportunities to the members of the public.

4. To protect the interest and well-being of their employees.

5. To find use for their utilized resources.

6. To provide quality and cheap goods to the consumers.

      BUSINESS RESOURCES

          These are the elements put together in order to start and run a business enterprise.     

Business resources are the inputs which are required for effective and efficient running of a business concern.

     CLASSIFICATIONS OF BUSINESS RESOURCES

  1. Money Resources:  These involve the money or capital that is used in starting and the smooth running of the business.  Money is important because without it, a business cannot take off. The importance of money cannot be over-emphasized, because all resources used in the business are acquired with money. It can be obtained by borrowing, buying shares, etc.
  2. Material Resources:  These include raw materials, tools, machines, equipment used in the business. When the capital for a new business is released, part of it is turned into materials which help the business to operate economically and efficiently.

3. Human Resources:  This refers to personnel or manpower i.e. labour needed for the operation of the business enterprise.  They plan, organize, direct and control the operation of the business enterprise in order to achieve its objectives.  It can also be referred to as human factor of production or management resources.

4. Opportunities or Goodwill:  These refer to the identifiable chances calling for acquisition. It can also be referred to as the facilities within the environment which the business uses.  These are roads, electricity, water and telephone services. Goodwill means the name and reputation of a business and which also aids business operation.

MANAGEMENT

This can be defined as the process of using authority to organize, direct and control subordinates in order to achieve the objectives of the business.

 Management is the resources of the business that perform the function of planning, directing, controlling and leading in order to attain the objectives of the business.

Business Management

This can be defined as the planning, organizing and controlling of any occupational activity that is profit oriented in which there is risk of loss.

Functions of Management

(I) Planning: This involves the establishment of objectives for organization and determining the best procedure and methods of achieving the objectives.

Benefits of Planning

  1. It enables an organization to set up goals to be achieved.
  2. It helps the organization to set up policies procedures and schedules to meetup the set objectives.
  3. It helps the organization to accomplish its goals and objectives.
  4. Planning helps in accepting decisions.
  5. It helps in predicting the activities of an organization over a period of time.

(II) Organizing: This is the process of developing the organization structure, i.e. arranging resources, e.g. people, time, money and equipment, etc. to carry out the organization’s plan in an efficient way.

(III)  Controlling:  It ensures that the organizational objectives are actually being obtained and the corrections are effected where deviations are found.  Controlling, therefore, is aimed by making what is planned to happen.

      Elements of Controlling

a. Establishing Standards:  This involves setting of goals against which performance can be measured later.

b. Measuring Performance:  Building up a feedback system whereby data is collected on the actual performance of the business enterprise.

c. Interpreting Result:  Making a judgement as to whether the set standards are attained and if not, why?

d. Taking corrective measures: Taking steps to eliminate causes of flaws that has been found.

(IV) Directing: This is the process of aiding the employees of an enterprise to perform their  jobs effectively with confidence.  It involves motivation, leadership and other skills to ensure that people in the organization know what their work is and have it done.

(V)  Staffing:  This involves the provision of qualified managerial, efficient and skill personnel to manage the affairs of the organization. It involves putting the right people in the right place or position at the right time to achieve their objectives.

(VI) Motivating: This involves the ways the leaders get subordinates to willingly carry out their responsibilities to the business, by inspiring them through monetary and non-monetary welfare packages. 

(VII) Communication:  This is the process of transferring information and ideas with feedback between people.

NOTE: SUBMIT YOUR ASSIGNMENT ON OR BEFORE MONDAY, JULY 6, 2020. 

ASSIGNMENT

  1. List any ten business environment

CORRECTION TO ASSIGNMENT GIVEN ON 30 TH JULY, 2020.

  • Economic environment
  • Political environment
  • Infrastructural environment
  • Socio-Cultural environment
  • Demographical environment
  • Financial environment
  • Technological environment
  • Legal environment
  •  International environment
  • Natural condition and ecological environment
  • Industrial environment

LESSON 6

CLASS: SS 2                                                     DATE: JUNE 23RD, 2020

You are welcome to this week on-line class. Are you following the class? Please always ensure you do your assignment.

CONTRACT OF EMPLOYMENT

MEANING OF EMPLOYEE AND EMPLOYER

THE EMPLOYER

The employer is someone or an institution that hires or provides work for another person called employee for an agreed remuneration.

DUTIES OF THE EMPLOYER

  1. Payment of remuneration to the employee
  2. Provision of training facilities
  3. Provision of job security
  4. He must indemnify his employee where required
  5. Provision of safe place of work
  6. Provision of necessary working tools and equipment

RIGHTS OF THE EMPLOYER

  1. Right to fix remuneration
  2. Right to relieve employee of his job
  3. Right to employ or hire anyone
  4. Right to use invention of employee

THE EMPLOYEE

The employee is someone who agrees to perform services to an employer in exchange for the payment of an agreed remuneration. The employee works for another person called the employer for an agreed sum of money and is accountable to his employer.

DUTIES OF THE EMPLOYEE

  1. Performance of duties according to terms
  2. Keeps the secret of his employer
  3. No secret profit or acceptance of bribes
  4. Must serve faithfully and honestly
  5. Obeys orders and instructions.

RIGHTS OF THE EMPLOYEE

  1. Right to annual leave
  2. Right to accept or reject offer.
  3. Right to receive on agreed remuneration
  4. Right to receive compensation for loss.

GOVERNMENT REGULATION OF BUSINESS

The government lays down certain rules and regulations that will help to control and regulate business activities in a country in order to ensure uniformity in commercial policies and to encourage smooth operation.

METHODS OF GOVERNMENT REGULATION OF BUSINESS

  1. Business License/Registration: In Nigeria, it is mandatory for all business enterprises to be registered with the CAC before commencing operation according to Company Act.
  2. Patent Rights: This is an exclusive right granted by government to a person to make use/sell an invention for a certain period of years. This gives the owner some degree of monopoly of the invention. Nobody can make use of such invention without permission from the right owner.
  3. Copyrights: This is an exclusive/sole right granted to writers of literary works (authors), musicians and artists to produce his work for a specified period of time. Literary copyright will last for 50 years after the death of the author while musical right will only last for 50 years after its release.
  4. Trade Mark: This is a distinctive symbol, special mark or design that is given to a producer to distinguish or identify its products from other products.
  5. Approval of Business Location: Government can also control and regulate business by giving approval for the location of a business enterprise. Sometimes they do this by establishing industrial estates.
  6. Ensure Production of Safe Goods: Another way is to ensure that goods offered for consumption are safe and of high quality.
  7. Use of Standard Weights and Measures: All business enterprises are mandated to use standard weights and measures for the products offered for sale.

REASONS FOR GOVERNMENT REGULATION OF BUSINESS

  1. To ensure uniformity in commercial and economic policies.
  2. To ensure industrial harmony between the employers and workers.
  3. To ensure provision of quality products.
  4. To ensure the development of the economy.
  5. To ensure regular supply of essential goods and services.

ASSIGNMENT

  1. List 4 right of an employee
  2. Give 4 duties of an employer.

LESSON 6 – CORRECTION

  1. List 4 right of an employee
  2. Give 4 duties of an employer

RIGHTS OF THE EMPLOYEE

  1. Right to annual leave
  2. Right to accept or reject offer.
  3. Right to receive on agreed remuneration
  4. Right to receive compensation for loss.

DUTIES OF THE EMPLOYER

  1. Payment of remuneration to the employee
  2. Provision of training facilities
  3. Provision of job security
  4. He must indemnify his employee where required
  5. Provision of safe place of work
  6. Provision of necessary working tools and equipment

JUNE 16, 2020 LESSON 5

Good morning students, you are welcome to today’s online class. Please make sure you copy your notes in your Commerce notebooks. Also, submit your assignment on or before Friday, June 19, 2020.

TERMINATION OF A CONTRACT

following are the methods through which a contract can be terminated.

(1)   Breach of Contract: A contract ends if one party fails to perform his own part of the contract.

       The aggrieved party has three options.

  • He can sue for damages
  • He can bring an action for specific performance.
  • Discharge the offending party.

(2) Operation of Law:  Contracts could be discharged when it becomes legally impossible to operate. E.g. a court declaring one party bankrupt, insane or subsequent illegality of the object of the contract.

(3) Performance: A contract is automatically brought to an end, if each party has performed his own part of the agreement, e.g. contract to supply machinery to end when the machinery is supplied and paid for. It is more or less execution of the contract.

(4)   Frustration: A contract is ended when factors that are not only beyondcontrol but also not contemplated upon by both parties prevent any partly from performing his own part of the contract.

(5) Mutual Agreement: Both parties may decide to end the contract by mutually agreeing that the contract be ended.

(6) Lapse of time: A contract can be brought to an end, if the time fixed for its performance has elapsed.

(7) Operation of Law: Contracts could be discharged when it becomes legally impossible to operate. e.g. a court declaring one party bankrupt, insane or subsequent illegality of the object of the contract.

(8) Act of God:  Contracts can be terminated by the occurrence of natural events like flooding, earthquake and storm.

SALE OF GOODS ACT 1893

The sale of Goods Act of 1893 defined the sale of goods as a contract whereby the seller transfers or agrees to transfer the right of the goods to the buyer for an amount of money called the price.

Contents of a Contract of Sale

(i)   Price: The amount for which the goods are sold must be stated.

(ii)  Quality: Qualities must be stated where there are many types of the same goods, but the rule is caveat emptor i.e. let the buyer beware.

(iii)  Terms of Payment: It must be stated whether it is cash and carry or on credit sales.

(iv)  Means of Payment: It should contain the payment method acceptable, credit cards, cash, money order, bank draft.

(v)  Warranty: This is a guarantee from the seller to the buyer that the goods are in conformity with the quality staged.

(vi)  Subject Matter: The item being sold must be stated so that the buyer can make himself available.

(vii) Quantity: This must be stated to show the quantity bought and the quality to be delivered.

(viii)  Packaging: The type of packaging to be used should include the description of the goods.

(ix) Delivery:  How the goods are to be handed over to the buyer whether it should be actual, symbolic or constructive delivery.

Parties to a Sale

(1)  The owner of the goods being sold is known as transferor or the vendor

(2)  The buyer of the goods is called the transferee or the vendee

Sale and Agreement to Sell

A sale occurs where the ownership of the goods is transferred to the buyer at the time of the contract.

Agreement to sell means the transfer of ownership of goods at a future date or time due to fulfilment of some conditions.

PROVISION OF THE SALE OF GOODS ACT 1893

(1)   The seller has a right to pass a good title to the buyer

(2) The buyer must enjoy a quiet possession without any third party threat

(3) If the goods are sold by sample description, the goods must correspondence with the description.

(4) If the goods are sold by sample as well as by description, the goods must agree with both the sample and the description.

(5)  Where goods are sold by sample, the bulk of the goods must be same a s the sample in quality.

(6) Where the buyer, expressly or by implication makes known to the seller the particular purpose for which the goods are required, the goods must be fit for such purpose

(7)  The goods must be of merchantable quality.  

RIGHTS OF AN UNPAID SELLER

(1)  Right to retain goods: The seller has a right to retain the possession of the goods if not paid for.

(2)  Right of stoppage in transit: The seller has the right to stop the goods going to the buyer in order to regain and retain the possession of the goods until he is paid.

(3) Right of resale: The seller has the right to resell the goods especially perishables when he has notified the defaulting buyer who despite the notice still failed to pay.

(4) Legal action: The seller has the right to sue the buyer for the price of the if the buyer has taken possession of the goods.

(5) Recovery of possession from the buyer:  An unpaid seller has the right to recover the goods already delivered to the buyer.

 (6) Issue of ultimatum: Unpaid seller has right to give ultimatum to the buyer compelling him to pay.

Rights of the Buyer

1. Right to sue for damages for none delivery of the goods

2. Right to sue for specific performance

3. When there is a breach of warranty, claim against the seller

4. He may maintain an action for conversion.

GOVERNMENT REGULATIONS OF BUSINESS

(1)   Registration of Business: The government registers all business units not only to give the business legal backing, but also to determine the strength of the economy in the various industrial spheres. 

(2) Approval of Business Location:  Government also controls and regulates business by approving the location of the business in order to ensure that such are not sited in a place that would cause harm to the citizens.

(3) Patent: This is the exclusive right of an inventor of a product over his invention in order to prevent others from copying the invention, once it is dully registered for a specified number of years e.g. 20 years and above. The owner of the patent right is called Patentee.

(4) Trade Mark: A trade is an identification mark registered by the owner to distinguish his products from those of other competitors. It is a distinguished mark or symbol given to a product which is dully registered to prevent another person from using it.  It gives the product easy identification as it differentiates it from similar products of other manufacturers. Example of trademarks are lux, elephant, omo, klin, etc.

(5) Copyright: This is a monopoly or an exclusive right by government to an author or a publisher. Copyright is also granted to musicians, artists, photographers, film producers, etc. to protect their works from being copied or reproduced without prior permission.  Copyright does not last forever, but it is limited to 50 years in the case of musical works from the date of release, or 50 years in the case of intellectual properties after the demise of the owner. Example of copyright statement can be seen on page (ii) of most books.    

AGENCY

     Agency is an agreement that exists between two partners known as the agent and the principal in order to bring the principal into a legal relationship with the third party.

    An agent is defined as a person who is employed to act on behalf of another person known as the principal.

    An agent is a person who effects a contract between his principal and the third party. He may or may not be an employee of his principal.  He has power to make a binding contract between the principal and the third party without himself becoming a party to the contract.

The principal is the person that the agent is answerable to, the person who delegates business activities to another.

                                                DUTIES OF AN AGENT

(1) He must obey or carry out all lawful instructions by the principal.

(2) He has to exercise reasonable care, skill and diligence in performing his duties.

(3) He must act in good faith and honesty by not engaging in any competing business to the detriment of the principal.

(4) He must act personally, i.e. he must not delegate his duties as an agent to an unauthorized person.

(5) The agent must not disclose to the third party any secret of the principal’s business.

(6) He must not allow his own interest to compete with that of his principal.

(7) He must not misuse the confidential information in respect to the affairs of the principal.

(8)  He must not take any secret gain beyond the authorized commission and any other remuneration.

(9)  He must render an account (i.e. stewardship) to the principal whenever required.

(10)   He must at all times keep the principal informed.

(11)    He must keep proper book of account on behalf of his principal.

(12)  He must not convert the property of his principal allocated to him to enable him to carry out his duties to his personal use.

RIGHTS OF AN AGENT

(1)  He has the right to receive his commission or remuneration.

(2)  He has the right to be indemnified for losses incurred in the course of the agency.

(3) He has the to obtain refund for expenses incurred on behalf of the principal.

(4) He has the right of lien over the goods he sells.

(5)  He has the right to stop goods in transit to the principal, provided he has assumed liability for payment of the purchase price.   

FUNCTIONS AN AGENT CANNOT PERFORM ON BEHALF OF HIS PRINCIPAL

(1)  He cannot vote on behalf of the principal.

(2)  He cannot execute an affidavit on behalf of his principal.

(3)  He cannot give testimony in the court on behalf of his principal.

(4) He cannot make a will on behalf of his principal.

APPOINTMENT OF AGENTS

(1)  Appointment by Necessity: The appointment of this agency arises as a result of emergency situations which requires some actions to be taken to prevent too much damages. A person who is in possession of another person’s property has to do something to prevent it from being destroyed.

(2)  Appointment by Ratification: This arises when the principal approves or ratifies the action of a person having no authority to act as his agent.  The agent must disclose all details of the transactions of the contract to the principal and the ratification must be done within a reasonable time.

(3)  Appointment by Implication:  This occurs when the principal impliedly without conferring authority on the agent, thereby places him in a position where his services are needed to act on his behalf. 

(4)  Appointment by Estoppel:  This occurs when somebody by his conduct allows the third party to believe that somebody is acting as his authorized agent. If the third party on the strength of this, enters into a contract with the agent, the principal will be stopped from denying the agency.

(5) Expressly: This happens when the principal appoints an agent verbally or in writing.

Duties of the Principal

(1)  The principal must abide by the terms of their contract.

(2)  He must make all facilities available to the agent in order to enable him perform his duties satisfactorily.

(3) He must not hinder or interfere with the agent’s efforts as long as the agent obeys his instructions.

(4) He must pay the agent all approved expenses carried out during the process.

(5) He must pay the agent as at when due, the agreed commission.

(6) The principal is obliged to accept responsibilities of all actions the agent takes on his behalf.

Right of the Principal

(1)  He can sue the third party for damages.

(2)  He has the right to sue the agent for default.

(3)  He can recover any secret profit from the agent.

(4)  He can dismiss the agent for breach of agreement.

(5)  The principal has the right to refuse to pay the agent his agreed commission provided the agent has made some secret profits which he did not declare.

CONDITIONS FOR TERMINATION OF AGENCY

(1)  By Frustration: Agency is terminated when the object of agency has been destroyed or no longer available or affected by change in government

(2)  By Breach:  If either the principal or the agent breaches the contract.

(3)  By Performance:  Agency is terminated when the agent has successfully performed the duties and obligations of his appointment.

(4)  By Death: When either the principal or the agent dies, the agency is automatically dissolved.

(5) By Expiration:  If the period fixed for the agency agreement has lapsed or expired, the agency is declared terminated.

(6)  War: If war breaks out and makes the sustenance of the agency impossible, then the agency can be terminated.

(7) By Operation of Law:  The law of the country can render a trade or service illegal, if the object of agency agreement is in line with such prohibited trade or service, it is rendered terminated.

(8)  Bankruptcy:  When the principal is declared bankrupt, the agency automatically becomes terminated.

(9) Agreement:  When both parties to the agency agreement mutually agrees to terminate it.

(10) Insanity: Agency is brought to an end, if any of the parties has mental disability.

ASSIGNMENT

ENSURE YOU SUBMIT YOUR ASSIGNMENT ON OR BEFORE FRIDAY, JUNE 19, 2020.

1 (a) Who is a broker

    (b) State six differences between a broker and a factor.

CORRECTION TO ASSIGNMENT GIVEN ON JUNE 16, 2020.

1 (a) A broker is a commercial agent who links his principal with potential buyers. The broker receives commission known as BROKERAGE from his principal.

(b) Differences between a Broker and a Factor

BROKERFACTOR
(1)An agent that does not take possessionAn agent that takes possession
(2)He does not sell in his own nameHe sells in his own name and issue receipts
(3)He has no right of lien over the goods. He merely brings buyers and sellers together.He has lien or legal claims over the goods of his principal.
(4)A broker is not liable, if the buyer defaults in payment.A factor is liable if the buyer defaults in payment.
(5)A broker receives a commission known as brokerageA factor receives a commission known factorage.
(6)A broker operates on the stock exchange as an agentA factor is merchant who sells goods on behalf of his principal.

COMMERCE

LESSON 4

CLASS: SS 2                                                                DATE: JUNE 9TH, 2020

You are welcome back. I hope you are following the lessons. For those of you who refuse to submit your assignment, please do, so that I can know that you are following the class.

Below is the scheme of work for 3rd term. Ensure you copy it in your note. Please, all the lessons we are treating should appear in your note. Now, let us go today’s lesson.

BUSINESS LAW

Business laws are sets of rules and regulations which govern the operation of business activities. These laws are as well classified as commercial laws.

BRANCHES OF COMMERCIAL LAWS

  1. Contract law: This law has to do with matters that involve contracts among people.
  2. Law of tort: This law deals with injuries caused to a person by other individual or company.
  3. Property law: This law deals with the ownership and use of property.
  4. Inheritance/Succession law: This law deals with the right of inheritance of property.
  5. Family law: This governs the legal aspect of the family, such as the rules of adoption, marriage, divorce and duly support.
  6. Corporate law: This law deals with business and stockholders.

CONTRACT LAW

A contract is defined as an agreement between two or more persons which is intended to be enforced by law. It is an agreement creating an obligation i.e. a legal agreement between two parties. All contracts therefore involve some sort of agreement but not all agreements are contract. The vital thing which turns an agreement into a contract is when the parties intend to be legally bound to carry out their agreements.

TYPES OF CONTRACT 

  1. Oral contract: This is a contract entered into by the use of verbal communication or spoken words. Oral contracts are informal in nature.
  2. Written: This are documented contract in the sense that the terms are written down. It can be formal or informal depending on the circumstances of the case.
  3. Implied: This is a contract entered into through the act and conduct of parties. There is no written or oral evidence expect the act/conduct of the parties.
  4. Expressed contract: this is a contract in which both parties have exercise their freedom, duties or obligations and terms of agreement orally or through written declaration.
  5. Valid contract: This is a contract that has all the essential conditions and elements to make it binding and enforceable.
  6. Void contract: This is a type which has no legal effect and is incapable of enforcement because the subject matter is prohibited by law.
  7. Voidable contract: This is a contract that may be binding and enforceable. It may be rejected by one party due to the absence of an essential element such as signing under duress or one party not having legal capacity at the time of making the contract.
  8. Executed contract: This is contract that has been fully performed or completed.
  9. Executory contract: This is a contract that is in process of been fully performed in which something remains to be done.
  10. Unenforceable contract: This, although valid, cannot be enforced in the court because of the absence of some written evidence or the time stipulated for bringing action has elapsed.
  11. Illegal contract: This is not only a void contract but any other contract related to it will also be void, if the main contract was strictly illegal.
  12. Severable contract: Where a contract can be divided into several parts, payment for part that has been completed can be claimed.
  13. Quasi contract: This is an exceptional case where a court feels compelled to impose obligation upon a person even though the person has no intention of making a contract.

CONDITIONS/ELEMENTS OF A VALID CONTRACT

  1. Offer and acceptance
  2. Consideration
  3. Intention to create legal relations
  4. Legal capacity of the parties
  5. Genuiness of consent
  6. Legality of objects      
  7. Certainty of terms of contact
  8. Possibility of performance
  9. Formality of a contract.

OFFER

An offer is a definite statement (by one party, called the offeror) of the terms and conditions under which he will contract with another party called the offeree.

Characteristics of an offer

  1. An offer must be definite
  2. It must be communicated by the offeree
  3. It may be expressly made or implied by the conduct of the parties
  4. It can be specific or general
  5. An offer, once made, remains open until it is accepted, lapsed rejected or revoked

Termination of an offer

  1. Lapse of offer/time
  2. A refusal
  3. A counter offer
  4. Revocation i.e. withdrawal of the offer
  5. Notification of rejection
  6. Death of either party before acceptance
  7. Loss of contractual capacity with either party (e.g. becoming insane) before acceptance

ACCEPTANCE

Acceptance is the mutuality of contract. It can also be seen as giving of one’s consent of an offer.

Rules of Communication of Acceptance

Acceptance can be void, voidable or not effective if:

  1. Communicated in ignorance of the offeror
  2. Not made by the person to whom the offer was made or someone with his authority
  3. Not communicated to the offeror by the offeree
  4. The acceptance comes with modification to the original offer (counter offer)

TERMINATION OF CONTRACT

A contact can be discharged or brought to an end in the following ways

  1. By performance
  2. By breach
  3. By consensus/agreement
  4. By frustration
  5. By lapse of time
  6. Death/insanity of the party
  7. Bankruptcy
  8. Illegality of object   

REMEDIES FOR BREACH OF CONTRACT

The injured parties can sue for:

  1. Damages
  2. Action for an agreed sum
  3. Injunction
  4. Justice
  5. Quantum merit (as much as he deserve)

ASSIGNMENT

Explain how a contract can be discharged by the following:

  1. By breach
  2. By bankruptcy
  3. By frustration

LESSON 4 ASSIGNMENT – CORRECTION

Explain how a contract can be discharged by the following:

  1. By breach: A contract can be discharged when one of the parties refuses/fails to perform his own part of the contract e.g. if he does not perform on the agreed date or he delivers inferior goods.
  2. By bankruptcy: A contract can be discharged when either of the parties is declared bankrupt by the court of law, i.e. the party cannot pay his debt.
  3. By frustration:A contract is ended when factors that are not only beyond control but also not contemplated upon by both parties prevent any partly from performing his own part of the contract.

COMMERCE

CLASS: SS 2                                                                DATE: JUNE 9TH, 2020

SCHEME OF WORK FOR 3RD TERM

  1. Revision of 2nd term
  2. Business law
  • Branches of commercial law
  • Law of contract and sales of goods act

3. Business law

  • Agency – who is an agent?
  • Appointment of agents
  • Duties of an agent to his principal
  • Duties of the principal

4. Contract of employment

  • Meaning of employee and employer
  • Duties of employee and employer
  • Government regulation of business

5. Business management

  • Meaning and classification of business
  • Objectives of a business
  • Ways by which the government regulates business

6. Business management

  • Meaning and functions of management
  • Meaning and classifications of business environment

7. Organizational structure

  • Meaning and uses of organizational chart
  • Delegation of authority

8. Span of control

  • Meaning and factors that determine the span of control
  • Authority, power, responsibility and accountability

9. Inter and intra departmental communication

  • Meaning, types and importance
  • Factors to be considered before choosing a communication system

LESSON 3

Date: 2nd June, 2020

TOURISM

Tourism is the practice of travelling and visiting places of interest by people where they can relax, receive information, be educated and derived pleasure.

It also refers to travel for recreation, leisure or business purposes.

The places where tourists visit are called tourism centres or resort centres, while tourists are people who visits these places.

Justification or Reasons for Tourism

There are three main justification for tourism in Nigeria, namely:

(a) Leisure

(b) Education or research

(c) Recreation

Forms of Tourism

  1. Education tourism
  2. Health tourism
  3. Cultural tourism
  4. Mountain tourism
  5. Sport tourism
  6. Business tourism
  7. Shopping tourism

Factors Favourable for Tourism

  1. The climate of the environment must be favourable.
  2. The security of the tourists must be guaranteed.
  3. There should be favourable government policy.
  4. The people around the tourist centres must be hospitable, friendly, kindly and humble.
  5. There must be enough publicity to create awareness for the tourist.
  6. International hotel standard must be available for tourists to stay.
  7. There must be presence of historical sites.
  8. There must be natural and man-made scenery where people can relax and entertain themselves.
  9. There should be beautiful wide life or game reserves.
  10. There should be fine beaches along the coast.

Importance or Advantages of Tourism in the Economic Development of Nigeria.

  1. It generates foreign exchange earnings to the nation.
  2. It generates employment opportunities
  3. It leads to improvement in the standard of living.
  4. It fosters national and international economic integration.
  5. It helps local communities to showcase their local industries.
  6. It increases commercial activities where resort centres are located.
  7. It leads to improvement in social services.
  8. It serves as conservation of wildlife.
  9. It leads to improvement in transport facilities.

Problems of Tourism

  1. Inadequate funding
  2. Lack of access roads to most resort centres.
  3. Lack of effective publicity or adequate communication system.
  4. Inadequate of competent and trained tourism personnel.
  5. Security problem.
  6. Inadequate infrastructure, e.g. electricity, pipe-borne water, etc.
  7. Absence of tourism boards.
  8. Lack of private investment because tourism is left alone in the hands of the government.

ASSIGNMENT

Please ensure you submit your assignment on or before Thursday, 4th June, 2020.

  1. State four solutions to the problems of tourism in Nigeria.
No Fields Found.

CORRECTION TO ASSIGNMENT GIVEN ON  2/6/2020

Solutions to the Problems of Tourism

  1. Encouragement of private investments
  2. Provision of accessible roads
  3. Aggressive advertising and marketing
  4. Adequate security.
  5. Government to provide enabling environment for tourism to strive.
  6. Establishment of tourism boards
  7. Provision of infrastructural facilities.

COMMERCE

LESSON 2

CLASS: SS 2                             

DATE: MAY 26TH, 2020

INSURANCE

Welcome to another week of online class. How have you been enjoying the classes? Mind you, I am still expecting your response for last week class. Please ensure you submit if you are yet to submit.

This week, let us revise insurance together.

What is insurance? Insurance can be defined as an agreement whereby on party promised to indemnify or pay another party a sum money in the event of his suffering a specified loss or damage.

PRINCIPLES OF INSURANCE

  1. Indemnity
  2. Insurable interest
  3. Utmost good faith
  4. Proximate cause
  5. Contribution
  6. Subrogation

DIVISION OF INSURANCE POLICY

  1. Life assurance
  2. Non-life insurance

TYPES OF LIFE ASSURANCE POLICY

  1. Whole life assurance
  2. Endowment assurance
  3. Term assurance
  4. Annuities

TYPES OF NON-LIFE INSURANCE POLICY

  1. Bad debts policy
  2. Good-in-transit policy
  3. Group insurance policy
  4. Cash-in-transit policy
  5. Fidelity  guarantee insurance policy
  6. Glass plate insurance policy
  7. Agricultural insurance
  8. Consequential loss insurance
  9. Employers liability insurance
  10. Aviation insurance
  11. Motor vehicle insurance
  12. Accident insurance
  13. Marine insurance
  14. Burglary, theft and robbery insurance policy
  15. Contractor all risk insurance policy

IMPORTANCE OF INSURANCE

  1. It facilities international trade
  2. It offers investment opportunities
  3. Leads to risk reduction
  4. It serves as collateral security

RISK

Risk can be defined as the possibility of occurrence of unpredictable or unplanned events which may result in loss e.g. accident, fire outbreak, death, etc.

TYPES OF RISKS

  1. Insurable risks
  2. Non-insurable risks

ASSIGNMENT

  1. Give 5 examples of insurable risk and 5 examples of non-insurable risk.
  2. Differentiate between ‘indemnity’ and ‘compensation’
No Fields Found.

CORRECTION OF LESSON 2 ASSIGNMENT

A. Give 5 examples of insurable risk and 5 examples of non-insurable risk.

Insurable risks are the risks which the insurer can make provision for or insure against because it is possible to calculate and estimate the likely future losses. The risk can be forecast and measured.

EXAMPLES OF INSURABLE RISKS

  1. Marine insurance
  2. Fire insurance
  3. Bad debts policy
  4. Good-in-transit policy
  5. Group insurance policy
  6. Cash-in-transit policy
  7. Fidelity  guarantee insurance policy
  8. Glass plate insurance policy
  9. Agricultural insurance
  10. Consequential loss insurance
  11. Employers liability insurance
  12. Aviation insurance
  13. Motor vehicle insurance
  14. Accident insurance
  15. Life assurance

Non-insurable risks are risks which the insurance company is not ready to insure against simply because the likely future losses cannot be estimated and calculated. It holds the prospect of gain as well as loss. The risk cannot be forecast and measured.

EXAMPLES OF NON-INSURABLE RISKS

  1. Loss of profit through competition
  2. Gambling
  3. Launching of new product
  4. Opening of a new shop
  5. Risks due to war
  6. Change in fashion
  7. Loss incurred as a result of bad management
  8. The poor location of a business
  9. Loss of profit through fall in demand
  10. Speculation

Differentiate between ‘indemnity’ and ‘compensation’

Indemnity is the compensation given by the insurer to the insured at the occurrence of the loss insured against, to restored the insured to his/her former position before the incident occurred WHILE compensation is the amount paid to the beneficiaries of a life assured at death.

Indemnity is given where the insured can be restored to his/her formal state before the occurrence of the incidence of loss WHILE compensation is given in a situation where the assured can not be restore to his/her formal state.

Example of indemnity insurance is fire insurance, marine insurance, burglary insurance, etc, WHILE compensation is given in life assurance.

LESSON 1

ADVERTISING

Advertising is a paid form of non-personal means of bringing the existence of goods and services to the knowledge of members of the public and to persuade them to buy and use the goods and services.

Advantages of Advertising.

i. It promotes sales by stimulating demand of a product.

ii. It crates awareness about the availability of goods and services.

iii. It educates the consumers on the use of products.

iv. It helps to improve the quality of goods and services as a result of healthy competition.

v. It leads to mass production by creating a wider market

vi. It boosts and sustains company’s image.

vii. It helps in developing brand loyalty.

viii. It is used to launch new products.

ix. It creates employment opportunities.

Disadvantages of Advertising

i. It can lead to unhealthy competition.

ii. Advertising at times interrupts interesting programmes being viewed by audience.

iii. It encourages buyers to make unnecessary purchases.

iv. It interferes with the free choice of consumers.

v. Some advertisement may be false and misleading.

vi. It is instrumental to higher cost of products in the market, thereby making some products unaffordable.

vii. Advertising leads to higher cost of production which may lead to liquidation.

viii. It encourages adulteration of fast moving products.

Types of Advertising

(1) Informative Advertising

(2) Persuasive Advertising

(3) Competitive Advertising

(4) Mass Advertising

Methods of Advertising.

(1) Direct Advertising

(2) Indirect Advertising.

Advertising Media

These are the methods or ways of advertising.

Types of Advertising Media

i. Radio

ii. Television

iii. Newspaper

iv. Magazines or Journal

v. Cinema

vi. Catalogue

vii. Mobile shops

viii. Trade fairs and Exhibitions

ix. Neon sign

x. Billboards/ hoardings

Class work

(1) State five factors to be considered in choosing an advertising medium

(2) List and explain six media available to an advertiser of goods and services.

In the appropriate boxes provided below, fill your name and e-mail. In the message box, start by entering the name of the subject, topic and then answers to the given questions.

No Fields Found.
No Fields Found.
No Fields Found.

CORRECTIONS ON WEEK 1 ASSIGNMENT

  1. Factors to be Considered in Choosing an Advertising Medium

(1) Target audience

(2) The age group

(3) The cost of using a particular medium

(4) The geographical area covered

(5) The number of people reached by a particular medium

(6) The size and extent of market

(7) The type of product involved

(8) The purchasing power of the target audience

(9) Government regulations or policies.

(10) The media used by competitors.

2. Media Available to an Advertiser of Goods and Services

 (i) Television:  The advert carried in this medium show the products and their uses.

 (ii) Fair and Exhibitions: These involve producers coming together at one location to display their   goods

(iii) Newspapers and Magazines:  These involve advert carried in the print

(iv) Circulars/ posters: These are handbills, stickers and posters that are distributed to prospective customers.

(v) Bill boards / hoardings:  These are used for outward display of colourful pictures of products being advertised with catchy slogans meant to attract the attention of passers-by.

(vi) Radio:  This involves the use of advertised jingles on local or national stations to advertise products and services.  It is audio alone

(vii) Catalogue: This involves the pictorial display of products with their prices, colours and sizes available in prints.

(viii) Internet: These involve the display of product through web pages that are regularly visited by browsers or electronic mails to potential buyers.

(ix) Neon signs:  These involve the use of colourful lights to advertise products at night.

(x) Banners: These are long pieces of loth with advert messages written on them and mounted on road sides.

(xi) Loudspeakers/ Ringing bell / Gong /Shouting: Loudspeaker is a piece of equipment that converts electrical signals into sounds used in public for advertising purposes.