Commerce - 2020

Commerce is defined as ______

(a)Buying and selling of goods and services only (b)All of the activities in the distribution and exchange of goods and services (c)All activities involved in the production of goods and services (d)The transporting and warehousing of goods only

EXPLANATION:The essence of commerce is to move goods from the POINT OF PRODUCTION to the point of consumption and that is exactly what exchange and distribution is all about

The types of occupation that a broker belongs to is

(a)Commercial (b)Construction (c)Extraction (d)Manufacturing

EXPLANATION:
Who is a Broker?
A broker is an INDIVIDUAL or FIRM that acts as an intermediary between an investor and a securities exchange.

All of the other occupations have one thing in common- Tangible goods are traded

Extraction: Mineral resources (Tangible)
Manufacturing: Commodities (Tangible)
Construction: Buildings(Tangible)
Broker: Service (Inangible)

What is Commercial Occupation?
Commercial Occupation entails all activities that embraces distribution and exchange of goods produced

N.B Securities exchanges only accept orders from individuals or firms who are members of that exchange, individual traders and investors need the services of exchange members.

Brokers provide that service and are compensated in various ways, either through commissions, fees or through being paid by the exchange itself.

A form of money which was not used in the early days of trade is _______

(a)Tobacco (b)Metal bars (c)cowries (d)Coins

EXPLANATION:This is the Historical development of money

.Barter: The Dawn of Trading
.9,000-6,000 BC: The era of Commodity money: Salt, tea, tobacco, cattle, and seeds
.1,200 BC: The Widespread Use of Cowrie Shells
.1,000 BC: The First Metal Money and Coins
.500 BC: The Birth of Modern Silver Coins in Sardis, Ancient Lydia
.118 BC: Leather Money from China
.A.D. 800 - 900: The Nose
.Year 806: Paper Currency
.1500: Potlach
.1535: Wampum
.The Gold Standard
.End of the Gold Standard
.Present day Money
.Future money

When the cost of sales is divided by the average stock, the result is

(a)gross profit (b)net profit (c)rate of turnover (d)working capital

What is rate of stock turnover

Rate of stock turnover is also known as Inventory turnover, inventory turns, stock turn, stock turnover

It indicates the rate at which a company sells and replaces its stock of goods during a particular period. i.e how many times a company has sold and replaced inventory during a given period.

Formular

Turnover = cost of goods sold / average stock

Stock turnover rate is considered to be a measure of sales performance; usually the higher the stock turnover rate, the better your stock/business is performing.
Calculating Stock turnover rate can help businesses make better decisions on pricing, manufacturing, marketing, and purchasing new inventory.

What Stock turnover rate Can Tell You

Inventory turnover measures how fast a company sells inventory. critical measure of business performance.

A low turnover

implies weak sales

A low turn over may show excess inventory, also known as overstocking.

It may indicate a problem with the goods being offered for sale

indicate the inefficiency of the marketting strategy. (too little marketing)

has an adverse effect on cash flow.

Tie down funds

High stock turnover

implies either strong sales

implies insufficient inventory.

N.B

Your stock turnover rate can help you work out how effectively you are managing your stock. When you review your stock turnover, look for trends such as constantly moving items or items that rarely sell.

You can then stop ordering the items that don't move, which will reduce your costs or make room for new items that might sell better. Items that have a really high stock turnover rate are essentially your best sellers. You could consider ordering more of these items and driving further sales through marketing.

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N.B
You are advice to spend quality time with each questions and study the solutions that will pop out on the left.

You'll have 60 seconds to answer each the question.

Time's Up

Score:

Your fingernails and hair keep growing after you die

Result

Total Questions: 9

Attempt: 8

Correct : 3

Wrong: 5

Percentage: 33%