Commerce Form 2

Contents

1. 1. The Concept of Demand and Supply

   1 tests 17 questions

   Topic lessons

   • Meaning of demand and the law of demand
   • Factors affecting demand: movements and shifts
   • Meaning of supply and the law of supply
   • Factors affecting supply and shifts of supply
   • Equilibrium price, surplus and shortage
   • Summary

   Meaning of demand Demand is the quantity of a commodity that consumers are willing and able to buy at a given price during a given period of time. A wish to buy without money to pay is only a desire , not demand. Effective demand is desire backed by the ability and willingness to pay. The law of demand states that,…

2. 2. Retail Trade

   1 tests 16 questions

   Topic lessons

   • Meaning of retail trade and functions of a retailer
   • Small-scale retailers
   • Large-scale retailers
   • Self-service and the survival of small retailers
   • Starting a retail business and retailer's calculations
   • Summary

   Meaning of retail trade Retail trade is the buying of goods in fairly large quantities from wholesalers or producers and selling them in small quantities to final consumers. A retailer is the last link in the chain of distribution: producer → wholesaler → retailer → consumer. Functions of a retailer Breaks bulk: buys…

3. 3. Wholesale Trade

   1 tests 15 questions

   Topic lessons

   • Meaning of wholesale trade and channels of distribution
   • Services of the wholesaler
   • Types of wholesalers
   • Elimination of the wholesaler
   • Trade discount and cash discount
   • Summary

   Meaning of wholesale trade Wholesale trade is the buying of goods in very large quantities from producers or importers and selling them in smaller (but still large) quantities to retailers or other traders. The wholesaler is the middleman between the producer and the retailer. Many wholesalers in Tanzania are found in…

4. 4. Warehousing Management

   1 tests 16 questions

   Topic lessons

   • Meaning and importance of warehousing
   • Types of warehouses
   • Bonded warehouses and the warehouse receipt system
   • Qualities of a good warehouse and warehouse documents
   • Storage charges: is storage worthwhile?
   • Summary

   Meaning of warehousing A warehouse is a building or place where goods are stored until they are needed. Warehousing is the activity of receiving, storing, protecting and releasing goods. It is an aid to trade because it removes the problem of time : goods produced in one season can be used throughout the year. For…

5. 5. Stock Administration

   1 tests 17 questions

   Topic lessons

   • Meaning and importance of stock administration
   • Stock levels and re-ordering
   • Stock records, stocktaking and stock valuation
   • Rate of stock turnover
   • Gross profit, mark-up and margin
   • Summary

   Meaning of stock administration Stock means the goods a business keeps for sale or for use in production. Stock administration (stock control) is the planning, recording and checking of stock so that the business always has the right goods, in the right quantity, at the right time, without keeping too much. Too little…