Commerce Scheme of Work for SS2 Third Term

SCHEME OF WORK

WEEK 1 WAREHOUSING
WEEK 2: HISTORY OF THE NIGERIAN CAPITAL MARKET
WEEK 3: STOCK EXCHANGE
WEEK 4 SECOND-TIER SECURITIES MARKET
WEEK 5: CAPITAL
WEEK 6: CAPITAL (CONT’D)
WEEK 7: PROFIT
WEEK 8 PROFIT (CONT’D)
WEEK 9: COMMUNICATION
WEEK 10: COMMUNICATION (CONT’D)

Below are the 2022 complete SS2 Third Term Commerce Lesson Note 

 

Third Term SS2 Commerce Lesson Note

Week 1

Topic: Warehousing

Content –

• Meaning of Warehousing
• Importance of Warehousing
• Functions of Warehousing
• Types of Warehousing

Meaning

Warehousing is the means of storing manufactured goods or goods that are bought in a particular place until they are needed. However, the warehouse is a place where goods are stored until they are demanded by the consumers.

Importance of Warehousing

1. It provides employment opportunities such as clerks, managers, storekeepers etc
2. It ensures a constant supply of goods by the producer or retailer
3. It ensures the production of goods ahead of demand. To learn more, Click here.

Week 2

Topic: History of Nigerian Capital Market

Content:

1. History of Nigerian Capital Market: 1946 (Development Stock), 1960 (Lagos State Exchange Act), 1962 (Capital Issue Commission), 1979 (SEC Commission Decree 71)

The origins of the Nigerian Capital Market date back to colonial times when the British Government ruling Nigeria at the time sought funds for running the local administration. Most of these funds are derived from agriculture, produce marketing and solid mineral mining. Discovering that these sources were inadequate to meet its growing financial obligations, the colonial administration decided to expand its revenue base by reforming the system of revenue mobilization, taxation and other payments. It also saw the need to raise funds from the public sector to cover temporary shortfalls in funds availability. Hence, it found it necessary to establish a financial system by setting up the basic infrastructure for its take-off pending the development of an organized private sector. To learn more, Click here.

Week 3

Topic: Stock Exchange

Content:

1. Meaning of Stock Exchange
2. Importance of Stock Exchange
3. Functions of Stock Exchange
4. Organizational Set-Up
5.  Meaning of securities
6.  Types of securities
7.  Factors affecting prices of securities
8.  Speculators at the stock exchange.

Stock Exchange: This is a specialized market for the buying and selling of securities, these securities are shares, stock, bonds, debentures, etc; which represent an ownership interest in the business.

It is an organized market where investors can buy and sell existing securities. It is an essential part of the capital market. The market deals in old existing shares only, it serves as a source of raising capital as well as a venue for financial investment.

The Nigeria stock exchange market is in Lagos and has branches in Abuja, and Portharcourt; it was established in 1960 through the act of parliament. Some of the companies quoted in the market are Nigeria Breweries, First Bank PLC, Union Bank PLC, Nestle Food Nigeria PLC. etc. To learn more, Click here.

Week 4

TOPIC: Second-tier Securities Market

CONTENT – 

• Meaning, Listing companies for the market
• Advantages of companies and to the investing public

Meaning of Second-tier Securities Market

A second market was established by The Stock Exchange in Lagos in 1985 to list the securities of smaller companies which are unable to meet the requirements for listing on the more stringent segment (main market) of the Exchange.

Listing of companies for the market

A Company applying for Admissibility to Listing on an STM or is applying for the
Admissibility of its Debt Securities must To learn more, Click here.

WEEK 5

 Capital

Contents:

1. Meaning of Capital
2. Accountant points of view
3. Economics points of view
4. Laymen’s understanding
5. Types of Capital of capital e.g. Authorized, issued called up, paid up, capital employed, capital owned, working capital/circulating capital etc

Definition of Capital

Capital refers to financial assets or the financial value of assets, such as cash and funds held in deposit accounts, as well as the tangible machinery and production equipment used in environments such as factories and other manufacturing facilities.

Accountant’s view; Accountants defined capital as the net worth of a business; capital is seen as the original fund with which a person starts a business. He considers capital as synonymous to money; it is the excess of assets over liabilities

The Economist’s view of the definition of capital; To the Economist, Capital is known to be one of the factors of production. To learn more, Click here.

Week 6

Topic: Capital (cont’d)

Content:

1. Importance of working capital
2. Calculation of working capital
3. Meaning of profit- Account points of view of profit
   – Economics points of view of profit
   – Laymen’s understanding of profit

Importance of Working Capital.

• It helps to determine the funds that will be available for running a business.
• It helps to know if the business is solvent or not i.e to know if the business has the ability to settle the debt without selling the fixed asset
• It serves as a check against holding down too much money for current assets.
• It is a sign to show the healthiness of a business, working capital helps an investor to know if to invest in a business or not.
• Working capital helps to determine the funds that will be available for the running of the business on a daily basis. To learn more, Click here.

Week 7

Topic: Profit

Contents:

1. Types of profit
2. Items in the Trading Profit and Loss Account
3. Uses of Trading profit and loss Accounts
4. Factors affecting profits
5. Calculation of Gross profit and Net profit

Types of Profit

1. Gross profit: Gross profit is the difference between the total sales of goods and the cost of goods sold.
2. Net profit: It is the excess of gross profit over the selling, distribution and administration expenses. To learn more, Click here.

Week 8

Topic: Profit (cont’d)

Content:

1. Turnover; meaning, factors that affect turnover
2. Relation of capital to turnover, calculation of capital to turnover.
3. Rate of turnover
4. Percentage of gross or net profit to turnover
5. Explanation of variation in turnover in different types of business

Meaning of Turnover

This is the value of the total sales of an organization during an accounting period. The turnover of a business is another name for sale.

Rate of turnover: This is the number of times the value of the average stock of a business is sold during the year. The rate of turnover varies from one product to another. Expensive goods have slow turnover rate while perishable goods have a rapid rate. To learn more, Click here.

Week 9

Topic: Communication

Content – Meaning of communication

The development and the means of communication in Nigeria

Traditional/Early media of communication in Nigeria

Importance of communication

Barriers to effective communication

Communication can be defined as the transmission of information from one person to another.

It is the process of exchanging meaningful information, opinion, ideas and feelings from one person to another. It’s a two-way process which involves sending and receiving messages.

Communication involves the sender and the receiver. It is a vital aspect of commerce because it is a means whereby the buyer and the seller are able to transact business. To learn more, Click here.

Week 10

Topic: Communication (Cont’d)

Content- Nigeria Postal Service (NIPOST)

                 Nigeria Telecommunication Limited (NITEL)

                 Satellite

                 Courier services

Nigeria postal service (NIPOST)  _­­­

The first post office in Nigeria was established in 1856 in Lagos. NIPOST was originally and jointly constituted as the department of postal and telecommunication (p and T). But in 1984 the telecommunication division of postal and telecommunication was merged with the Nigeria external telecommunication (NET) limited to form Nigeria telecommunication limited.

The other postal division was reconstituted into an extra-ministerial department known presently as the Nigeria postal service (NIPOST). It was charged with the responsibility of ensuring the proper handling of emails. To learn more, Click here.