Commerce Scheme of Work for SSS1 First Term

SCHEME OF WORK

Week One: Public Enterprises

Week Two: Limited Companies

Week Three: Sources of capital for limited companies

Week Four: Cooperative Societies

Week Five: Commodity Exchange

Week Six: Requirement for trading

Week Seven: Constraints to Commodity Trading

Week Eight: Buying and selling documents

Week Nine: Terms of Trade

Week Ten: Terms of Trade cont’d

Week Eleven: Revision

Week Twelve: Examination

 

Below are the 2022 complete SS2 First Term Commerce Lesson Note 

First Term SS2 Commerce Lesson Note

Week One: Public Enterprises

INTRODUCTION:

Public Enterprises means an entity that is created by the state to carry out public missions

and services. A public enterprise is a large-scale business organization set up, owned and

financed by the government of a country with the aim of providing services to the members

of the public.

In order to carry out these public missions and services, a public corporation participates in

activities or provides services that are also provided by private enterprise. A public

corporation is also known as a public enterprise and a statutory corporation. The public

corporation is managed and controlled by a board of directors appointed by the

government. To learn more, click here.

Week Two: Limited Companies

INTRODUCTION:

 

A limited company is a business that is owned by its shareholders, run by directors and, most

importantly, where the liability of shareholders for the debts of the company is limited.

Limited liability means that the investors can only lose the money they have invested and no

more. This encourages people to finance the company, and/or set up such a business,

knowing that they can only lose what they put in, if the company fails. To learn more, click

here.

Week Three: Sources of capital for limited companies

INTRODUCTION:

There are different sources of capital for limited companies. These include:

SHARES

Shares are usually raised by shareholders (owners), which form the capital base of the

company. A share can be defined as the individual portion of the company’s capital owned

by a shareholder. It is the interest which a shareholder has in a company. It is issued to the

general public.

Equity shareholders do not enjoy any preferential rights with regard to repayment of capital

and dividend. They are entitled to residual income of the company, but they enjoy the right

to control the affairs of the business and all the shareholders collectively are the owners of

the company. To learn more, click here.

Week Four: Cooperative Societies

INTRODUCTION:

Co-operative societies is a voluntary organizations in which individual, business man, and

traders with common interest pool their resources together to promote the economic and the

interest of their members.

A co-operative society is managed and controlled by the members. It is not owned or

controlled by the government or anybody outside the group. To learn more, click here.

Week Five: Commodity Exchange

INTRODUCTION:

A commodities exchange is an exchange where various commodities and derivatives

products are traded. Most commodity markets across the world trade in agricultural

products and other raw materials (like wheat, barley, sugar, maize, cotton, cocoa, coffee, milk

products, pork bellies, oil, metals, etc.) and contracts based on them. These contracts can

include spot prices, forwards, futures and options on futures. Other sophisticated products

may include interest rates, environmental instruments, swaps, or ocean freight contracts. To

learn more, click here.

Week Six: Requirement for trading

INTRODUCTION:

Requirements for trading

Commodity trading in the exchanges can require agreed-upon standards so that trades can

be executed (without visual inspection). You don’t want to buy 100 units of cattle only to find

out that the cattle are sick, or discover that the sugar purchased is of inferior or unacceptable

quality.

Warehouse clearing system

A warehouse receipt system (WRS) enables farmers to deposit storable goods (usually

grains or coffee) in exchange for a warehouse receipt (WR). A WR is a document issued by

warehouse operators as evidence that specified commodities of stated quantity and quality

have been deposited at a particular location. To learn more, click here.

Week Seven: Constraints to Commodity Trading

INTRODUCTION:

The major constraints to commodity trading are:

Inadequate supply

The agricultural holdings are very small and scattered throughout the country, as a result of

which the marketable surplus generated is very meagre. It is not an easy task to organize how

the goods can be assembled for efficient marketing. Moreover, there are many varieties of

particular crops such as yam and this poses problems in pricing. To learn more, click here.

Week Eight: Buying and selling documents

INTRODUCTION:

The various types of documents currently in use are as follows:

1. Trade Journals

Trade journals are publications which serve as sources of information to the buyer as it

contains articles on matters of interest to people in a particular trade. Trade journals contain

information about price, terms of payment, terms of sales and delivery. The description of

the goods will also be shown in the journal.

2. Letter of Enquiry

Letter of enquiry is written by the buyer to the producer or supplier asking for information

about certain goods which are for sale. The letter will enquire about the terms of sale,

payment, delivery and other relevant information before the buyer decides on one particular

producer and what to buy. The prospective buyer may request for the price lists of the

goods. To learn more, click here.

Week Nine: Terms of Trade

INTRODUCTION:

TRADE DISCOUNT

A trade discount is a reduction to the published price of a product. For example, a high-

volume wholesaler might be entitled to a 40% trade discount, while a medium-volume

 

wholesaler is given a 30% trade discount. A retail customer will receive no trade discount and

will have to pay the published or list price. The use of trade discounts allows for having just

one published price for each product. To learn more, click here.

Week Ten: Terms of Trade cont’d

INTRODUCTION:

Free on Rail (F.O.R.)

Seller has paid all the charges up to loading on cargo onto rail. Freight has to be paid by the

seller.

Spot Cash

Spot cash is a term of payment in which the buyer pays cash immediately for goods bought

before he takes them away.

Cash Against Documents

A transaction in which the buyer assumes the title for the goods being purchased upon

paying the sale price in cash. To learn more, click here.

Week Eleven: Revision

This week, we would be doing a revision of all that we learned during the term.

Week Twelve: Examination

Afterward, you would write an examination, which would test your knowledge of what has

been taught so far.