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TOPIC : INTRODUCTION TO COMMERCE
SUBJECT : BUSINESS STUDIES
CLASS : JSS1
OBJECTIVES : At the end of the lesson, students should be able to
(a) define Commerce
(b) list the importance of commerce
(c) explain commercial activities
WHAT IS COMMERCE?
Commerce can be define as human activities that deals with buying and selling of goods and services and with such supporting activities as transportation, warehousing, banking, insurance, advertising etc. It is the process of buying, selling and distribution of goods and services.
For commercial activities to take place, there must be production of goods and provision of services. This includes farmers that grows farm products such as yam, groundnut, beans, cocoa, etc.
Importance of commerce
1. It creates a link between the manufacturers, the buyers and the sellers.
2. It helps in transporting goods from one place to another
3. Commerce develops the banking system
4. It helps a country to develop faster
5. It provides employment to the youth and the adults
6. It induces a person to become an entrepreneur.
Commercial Activities Which Aids Trade
1. Banking: Banks are financial institution which makes funds available to assist people in their daily purchases. They make funds available from loans and overdrafts. They also accept savings from the people.
2. Insurance: This deals with the bearing of risks of investment
3. Transportation: This is the movement of goods from one place to another. Transportation provides the means of carrying raw materials, finished goods and people from one place to another either by road, sea, rail, pipeline or air
4. Warehousing: This is the safekeeping of goods in a place overtime
5. Advertising: This is the process of creating awareness in the mind of the public about many forms via: press, catalogues, trade fair, exhibition, television, radio etc.
6. Communication: This is the means of sending and receiving information from one place to another. It provides the link between the buyer and the seller.
1. With the aids of a diagram, explain the division of commerce