166 O Level Commerce Notes by Zeeshan Sheikh

Description

Introducing Commerce O Level Notes 166 – a comprehensive set of revision notes meticulously crafted to support students preparing for the Cambridge O Level Commerce exam. Authored by Zeeshan Sheikh, a highly experienced Commerce teacher with over 10 years of teaching expertise, these notes provide a thorough coverage of the updated CAIE O-Level Commerce (7100) syllabus.

Key Topics Covered:

1. Introduction to Commerce: Gain insights into the fundamental concepts and principles of commerce, including the nature of business, economic systems, and business ethics.
2. Business Organizations: Explore various forms of business organizations, such as sole proprietorships, partnerships, companies, and cooperatives.
3. Marketing: Dive into the world of marketing, understanding the marketing mix, market research, consumer behavior, and marketing strategies.
4. Finance: Develop a solid foundation in financial management, covering topics like accounting concepts, financial statements, budgeting, and financial analysis.
5. Human Resource Management: Learn about the essential aspects of managing human resources within organizations, including recruitment, training, motivation, and employee relations.
6. Accounting: Understand the principles and techniques of accounting, including recording transactions, financial statements, analysis, and interpretation of financial data.
7. Business Law: Familiarize yourself with the legal framework governing business operations, contracts, employment law, and consumer protection.
8. Government and Economic Systems: Examine the role of government in the economy, different economic systems, and the impact of government policies on businesses.
9. International Trade: Explore the complexities of international trade, including global markets, trade agreements, and the role of international organizations.

These notes are designed to facilitate effective learning and exam preparation. The content is presented in a clear and concise style, ensuring ease of understanding. Diagrams are incorporated to enhance conceptual understanding, bringing clarity to complex topics. The notes are highly exam-focused, providing valuable insights and strategies to maximize grades.

To strengthen exam readiness, the notes include practice questions sourced from past papers. This allows students to apply their knowledge and evaluate their understanding of the material. A page index is provided to help students track each topic, facilitating efficient navigation through the content. Additionally, high-quality printing ensures the clarity and accuracy of diagrams and figures.

Commerce O Level Notes 166 is an essential resource for students preparing for the Cambridge O Level Commerce exam. The comprehensive coverage, exam-focused approach, and inclusion of practice questions make these notes a valuable tool for success.

Key Features:

1. Seasoned Authorship: Authored by an experienced Commerce teacher with over 10 years of teaching experience.
2. Complete Syllabus Coverage: Covers the entire updated CAIE O-Level Commerce (7100) syllabus.
3. Diagrams for Conceptual Understanding: Includes diagrams to enhance the comprehension of key concepts.
4. Exam-Focused Approach: Highly focused on exam requirements, ensuring better grades.
5. Practice Questions from Past Papers: Provides practice questions to test understanding and reinforce exam techniques.
6. Page Index and Mark Schemes: Offers a page index to track each topic and access mark schemes.
7. High-Quality Printing: Ensures clarity and precision of all diagrams and figures.

Embrace Commerce O Level Notes 166 and unlock the knowledge and skills needed to excel in the field of commerce. Prepare with confidence, deepen your understanding, and achieve outstanding results with this indispensable resource.

O Level Commerce Notes by Zeeshan Sheikh

• Sufficient for excelling at both Paper 1 and Paper 2.
• Complete course outline, paper pattern with concerned percentages
• Concise yet comprehensive enough to be used as a quick revision guide.
• Important topics discussed in greater detail to cater syllabus requirements

TABLE OF CONTENT

UNIT 1 PRODUCTION

What is commerce?

1.1: The Chain of Production

Production

Chain of production

Needs and Wants

Needs

Wants

1.2: Primary Industries, Secondary Industries and Tertiary Activities

Direct Production and Indirect production

Direct production

Primary, Secondary and Tertiary Sector of Production

Primary production

Secondary production

Tertiary production

How are manufacturing and tertiary activities inter-related?

1.3: Specialization and Division of Labor

Specialization

Forms of Specialization

1.4: Commerce

Trade and Aids to Trade

Types of Trade

Purpose / Importance of Foreign (overseas) trade

Comparison of Home Trade and Foreign Trade

Aids to Trade

1.5: The relationship between industry, commerce and direct services

UNIT 2 RETAIL TRADE

2.1: The role of retailer in the chain of distribution

The Retail Trade

2.2: Types of Retailers

Small Scale Retailers

Peddlers / Hawkers / Roadside Traders / Mobile Shops / Street Markets

Advantages

Disadvantages

Unit Retailers

Advantages

Disadvantages

Automatic Vending Machines

Advantages

Disadvantages

Specialty shops

Advantages

Disadvantages

LARGE SCALE RETAILERS

Department Store

Advantages of departmental stores

Disadvantages of departmental stores

Multiple Chain Stores/Multiple Shops

Advantages

Disadvantages

Super market

Advantages of supermarket

Disadvantages of supermarkets

Hyper Market

Advantages of hypermarket

Disadvantages of hypermarkets

2.3: Large Scale and Small Scale Retailing

How do small scale retailers survive against competition from large scale retailers?

2.4: Selling Techniques and methods and the implications of e-commerce

Branding / Own Brands / Logo

Packaging

Self Service

After Sale Service

Computers as AID to retailing

E-commerce

Why Small Scale Retailers are dependent on wholesalers

2.5: Trends In retailing

Omni-channel (Omni-channel retailing)

Self Service Checkouts

Loyalty Programs

Mobile Retailing: (m-commerce)

UNIT 3 CUSTOMER CREDIT

3.1: Use of Credit

Reasons for giving Credit / Reasons for increased use of credit

3.2: Types of Credit

Hire Purchase

Extended Credit / Deferred payment

Store cards

Credit Cards

Informal Credit / Lay-bye

3.3: Suitability of different types of credit

UNIT 4 WHOLESALER

4.1: The role of wholesaler in the chain of distribution

Wholesale Trade

Channel of Distribution

Different Channels of Distribution

Factors affecting choice of Channel of Distributions

4.2: Functions and services of the wholesaler

Cash-and-carry wholesalers

Voluntary chains

Reasons why do wholesalers not operate at retail level

Why the role of wholesaler is on decline

4.3: Intermediaries

Middle Man

Agents

1. Factors

2. Brokers

Special types of Middleman

Why Small Scale Retailers are dependent on wholesalers

UNIT 5 DOCUMENTS OF TRADE

Why are Documents needed?

COMMON FEATURES in all Documents

5.1: Documents of Home Trade

ENQUIRY (Issued by: Buyer, Issued to: Seller)

QUOTATION (Issued by: Seller, Issued to: Buyer)

CATALOGUE (Issued by: Seller, Issued to: Buyer)

PRICE LIST (Issued by: Seller, Issued to: Buyer)

ORDER (Issued by: Buyer, Issued to: Seller)

ADVICE NOTE (Issued by: Seller, Issued to: Buyer)

DELIVERY NOTE (Issued by: Seller, Issued to: Buyer)

INVOICE (Issued by: Seller, Issued to: Buyer)

CREDIT NOTE (Issued by: Seller, Issued to: Buyer)

STATEMENT OF ACCOUNT (Issued by: Seller, Issued to: Buyer) Differences between Invoice and Statement of Account

Sequence of Documents in Home Trade

5.2: Terms of payment

Cash discount

Trade discount

Mark-up

UNIT 6 INTERNATIONAL TRADE

International trade

6.1: The Importance of International Trade

Types of International/Foreign Trade

Visible and Invisible Trade

Similarities between Home Trade and Foreign Trade

Differences between Home Trade and Foreign Trade Interdependence of countries

6.2: BALANCE OF TRADE AND BALANCE OF PAYMENTS
Balance of Trade

Balance of Payments

The Current Account

The Capital Account

The Financial Account

Why deficit in Balance of Payments and Balance of Trade is undesirable

6.3: Customs authorities

6.4: Free Trade, trading blocs and protectionism

Free trade

Trading blocs

Protectionism

How to protect from imports-to make balance of payment surplus? Effects of protectionism

6.5: Difficulties faced by Importers and Exporters

Difficulties faced by Exporters

Exporters and Aids to Trade

UNIT 7 ADVERTISING

7.1: The role of advertising

Aims/ Purposes of Advertisement

Advantages of advertisement

Dangers of Advertisement: (Criticism on advertisements)

Types of Advertising

7.2: Advertising Media

Television

Radio

Internet

Cinema

National Newspapers

Local Newspapers

Magazines

Trade Journals

Trade Fairs / Shows / Exhibition

Leaflets / Flyers / Pamphlets

Packaging/Plastic Bags

Direct mail

Sponsorships

Catalogs/ Broachers

Digital Billboard

Transport Vehicles

Point of sale display / Windows display

Neon Lights/Signs

Factors affecting choice of Advertisement Media

7.3: Methods of Appeal (Devices)

Color

Emotion

Ambition

Famous people (celebrities)

Music

Humor

7.4: Sales Promotion

Difference between Advertising and Sales Promotion

Methods of promotion

Displays and demonstrations

Factors effecting choice of sales promotion method

7.5: Trends in advertising

Digital Billboards

Product Placement

Mobile phone advertisement

Digital Video Advertisement

Importance of Internet Advertising

UNIT 8 COMMUNICATION

8.1: Importance of Communications in trade and the global market Importance of communication in commerce

8.2: Methods of communications» Internal and external

Verbal / Oral

Visual

Written

Electronic methods of communication

Telephones

Mobile-phones

Internet

Email

Intrane

t Teleconferencing and Video-conferencing

Factors affecting choice of medium

8.3: Postal Services

8.4: Trends in communication

Tablets and Smart-phones

Social Media

Application Stores

UNIT 9 TRANSPORT

9.1: TRANSPORTATION

Importance of Transportation

Modes of Transportation

Pipelines (Transport of gases, liquids)Road Transport

Rail Transport

Air Transportation

Sea Transportation

Waterways Pipelines

Factors affecting choice of method of transport

Cost of transportation

Risk of damage and safety issues

Urgency or speed required

Convenience

Distance

Nature of goods

Quantity to be transported

Value of goods and security needed

Effects of owning transport to a business

9.2: Containerization

9.3: Ports and airports

Port Authorities

Airport Authorities

9.4: Transport documents

(i) Delivery Note

(ii) Consignment Note

(iii) Bill of Lading

(iv) Air Waybill

9.5: Development and Trends in Transportation

Chartering Transport

Express Routes

Changes in use of rail transport, mass transit system and high speed trains

Increased use of freight forwarders

UNIT 10 WAREHOUSING

10.1: Role of Warehousing
Importance of Warehouses to business and trade

Production

Prices

Regular Supply

Prepares goods and make them sale-able

Display of goods

Services to International Trade

10.2: Types of Warehouses

Bonded Warehouse

Cold Storage Warehouse

Cash and Carry warehouses

Manufacturer and Retailer Warehouses

Regional Distribution Centers

UNIT 11 INSURANCE

11.1: Purposes of Insurance

How does Insurance help the economy?

The importance of pooling of Risk

11.2: Business and personal risks

Business Risks

Personal Risks

Difference between Insurable and Non Insurable Risks

11.3: PRINCIPLES OF INSURANCE

Indemnity/Compensation

Insurable Interest

Utmost Good Faith

Evaluating Insurance Quotation Depends upon

11.4: Effecting Insurance Cover

Procedure

11.5: Statistical Basis of Insurance

Factors affecting the Premium

Premiums and its calculations

Main Documents of Insurance

Proposal Form

Cover Note

Insurance Policy

Insurance Broker

Functions of Insurance Broker

Benefits to the customers using Insurance Broker

11.6: Effecting Insurance Claim

Claim Form

UNIT 12 BANKING

Introduction

12.1: BANKING SERVICES

Services offered by the commercial banks

Savings Account

Current Account

Paying-in Slip

Issuance of Bank Statement

Night Safe Deposits

ATM (Automated Teller Machine) services

Internet Banking

Telebanking

Bank over-draft

12.2: MEANS OF PAYMENT IN HOME AND INTERNATIONAL TRADE

Payments in Home trade

Cash

Cheques

Credit Transfers / Bank Giro

Standing Orders / Banker’s order

Direct Debit

Comparison of Standing Order and Direct Debit

Credit Cards

Debit Cards

Bank Drafts / Cashier’s Cheque / Banker’s Cheque

Factors effecting choice of method of payment

Means of payment in International trade

Remittances

Electronic Transfers

Documentary Credit (Letter of credit)

12.3:Trends in Banking

Mobile and digital Banking / Internet Banking

Mobile Wallets

UNIT 13 THE BUSINESS UNIT

13.1: Location Of A Business Including Retail Units

Location of Primary Production Units

Location of Secondary Production Units

Location of Tertiary Production Units

13.2: PUBLIC AND PRIVATE SECTOR

The Public Sector

Types of Private Sector Organizations

Sole Trader

Partnership Private Limited Company

Public Limited Company

Public Corporations

13.4: FRANCHISES

Franchisor

Franchisee

Franchise Agreement

13.5: MULTINATIONAL COMPANIES

UNIT 14 FINANCE

14.1: SOURCES OF FINANCE

Long term and Short Term Finance

Long-term Financing

Shares

Debentures

Mortgage

Loans

Sale and Leaseback

Short-term Financing

Overdraft

Debt Factoring

Leasing

Trade Credit

Hire Purchase

Long-term vs. Short-term Financing

Methods of Self-Financing

Retained Profits: (Retained Earnings)

Sale of Asset

Savings

Sources of Finance in particular given business situations

Finance for commercial activity

UNIT 15 CHANGING ENVIRONMENT OF COMMERCE

15.1: COMMERCIAL ACTIVITY AND THE EXTERNAL ENVIRONMENT

Political Factors

Economic Factors

Social Factors

Technological Factors

15.2: COMMERCIAL AND ENVIRONMENTAL EFFECTS OF E-COMMERCE

E-shop: (e-store or e-tailer)

Commercial Effects of e-commerce

15.3: COMMERCE AND THE ENVIRONMENT

Environmental Effects of e-commerce

15.4: CONSUMER PROTECTION

Importance of Consumer Protection

Methods of safeguarding the consumer

Consumers Rights

Actions that a consumer can take

Faulty Goods

If after purchase, customer does not like the product