Introduction to commerce

The department in an Office or Organization

Right Attitude to Work

The Office Staff

The Office

Introduction to Business Studies

Introduction

A business is an organization or entity that is engaged in commercial, industrial, or professional activities. It involves producing, buying, or selling goods or services to generate profit.

Business activities refers to any action undertaken by an organization to produce, buy, sell, or provide goods and services with the aim of making a profit or achieving other objectives

Meaning of business studies

 Business study is the subject that teaches us about business and business activities. It provides us with the Knowledge, understanding, and skills needed for productive work or activity.

It can also be defined as the process of studying all human efforts and activities directed towards the development and satisfaction of human needs and the development of a nation through the production and distribution of goods and services

Importance of Business Studies

1.      Provides knowledge on how to start and manage a business efficiently.

2.      Equips individuals with skills required to be employed in various business careers.

3.      Enhances understanding of financial management, saving, and investment.

4.      Develop critical thinking and problem-solving skills for business operations.

5.      Contribute to national development by promoting trade and industry.

6.      Helps individuals make informed decisions as consumers and producers.

7.      Prepares students for business challenges in a globalized economy.

8.      It will expose students to the aspects involved in the  production of goods and services for the satisfaction of human wants

9.      It will enables students to know how files, records and accounts of business activities are kept in an office

10.  It teaches how to use office equipment such as scanner, computer, stapler etc.

11.  It teaches students how the office function

12.  It equip students with the knowledge of different forms of business organization

13.  It makes it possible for you to acquire further training in higher institutions of learning

14.  It equips you with the basic skills with which to begin an occupation, if you do not have an opportunity for further training

15.  It develops and prepares you for office occupations in future

 

Components of Business Studies

Office Practice: This involves the study of office procedures, administration, and management to ensure efficient business operations. It includes handling correspondence, filing systems, and office communication. That is, it deals with how clerical activities are carried out on a day-to-day basis within an organization in order to achieve set objectives and goals

Commerce: Commerce deals with trade and activities related to the exchange of goods and services. It covers areas like retail and wholesale trade, transportation, banking, and insurance. It deals with buying, selling and distribution of goods and services

Book-keeping: This is the component of business studies that is concerned with recording business transactions in an orderly and meaningful manner. It helps in maintaining accurate financial records, preparing accounts, and ensuring financial accountability and informed decision making

Keyboarding:  Keyboarding is the ability to type or input data efficiently using a computer or typewriter. This skill is important for data entry, document preparation, and improving productivity in modern office environments.

 

Career/ employment opportunities in business studies

Business studies enable people all over the world to become important personalities such as:

1.      Accountants                                                 10.  bankers  

2.      Stockbrokers                                                11.  Insurance brokers

3.      Managers                                                     12.  Public administrators

4.      Publishers                                                    13.  clerks

5.      Secretaries                                                   14. proprietors

6.      Traders                                                         15.  Directors

7.      Chief executive officers                              16.  Teachers

8.      Entrepreneurs

9.      Sales representative

 

ERC Business Studies 2018 Past Question

 

FCT/ERC/2018/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2018.

TIME: 2½ HOURS.

 

SECTION A: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    The act of keeping accounts in a regular and systematic manner is called ____.  A. Accounting.    B. Capital.    C. Orderliness.  D. Bookkeeping

2.    Profit and loss account is the account that determines the ___ of an organization.  A. Asset and liabilities.    B. Gross profit or gross loss.    C. Net profit or net loss     D. Income and expenditure

3.    The type of account which requires the use of cheque book is called ____.  A. Fixed deposit account.    B. Current account.    C. Personal account.   D. Saving accounts

4.    The several services which facilitate or make trade easy is called ____.  A. Trade.    B. Occupation.    C. Aids to trade.    D. Home trade

5.    Which of the following machines can be used to produce the exact copy of a document?  A. Computer.    B. Duplicator.    C. Photocopier.    D. Type writer

6.    ____ makes it possible for the manufacturers to carry raw materials to their factories.  A. Banking.    B. Insurance.    C. Commerce.    D. Transportation

7.    The telephone used to make calls within an organization is ____.   A. Intercom.    B. Telex.    C. Trunk call.    D. International call

8.    Find the gross profit from the following:                      Total sales = #153,450.  Total cost of goods sold 139,500.  A. #13,950.    B. #14,950.    C. #15,850.    D. #10,450

9.    The market for borrowing money for a short term period is called ____.   A. Commodity market.    B. Capital market.    C. Money market.    D. Foreign exchange market

10. The particular amount of money used in setting up a business is called.   A. Capital.    B. Cash at bank.    C. Opening stock.    D. Cash at hand

11. ___ is issued as an evidence of payment when cash transaction is made.  A. Bank draft.    B. Cash book.    C. Receipt.    D. Store

12. The place where buyers and sellers meet to buy and sell goods and services is called ____.  A. Bank.    B. Market.    C. Shop.    D. Store

13. The selling of goods to the highest bidder is known as ___.  A. Auction sell.    B. Cash sell.    C. Sales by description.    D. Sales

14. The following are expected Qualities of a receptionist except.  A. Dedication to duty.    B. Pleasant appearance.    C. Politeness.    D. Rudeness

15. The type of life assurance policy which is taken up for specific period of time or at death is called __assurance.  A. Car.    B. Comprehensive.    C. Endowment.    D. Whole life

16. Those who buy in large quantities from the producers are called ____.  A. Consumers.    B. Hawkers.    C. Retailers.    D. Wholesalers

17. A document which shows the full details of worker’s pay is called.   A. Pay slip.    B. Pay roll     C. Periodic records.    D. Workers records

18. Careers are available in the stock exchange market for those who study accountancy, economics, banking and finance and _____.  A. Medicine.    B. Law.    C. Yoruba language.    D. Business administration

19. ____ prepares the payment vouchers in the office.  A. An accountant.    B. An administrative.   C. Receptionist.    D. Secretary

20. Making the payment of goods on cash immediately after purchase is called.  A. Credit sales.    B. Cash sales.    C. Trade.    D. Selling goods

21. Office equipment is referred to as ____ to the workers in the office.  A. Distraction.    B. Disturbance.    C. Aid.    D. Machine

22. The following are advertising media except.  A. Leaflets.    B. Poster.    C. Billboard.    D. Telegrams

23. Which of the following offices equipment can store, retriever and process information?   A. Calculator. B. Computer.  C. Duplicator.  D. Photocopy

24. A petty cash system is based on an imprest of #1,200 a month. If the petty cashier is left with a balance of #470, how much will he be reimbursed?   A. 200.  B. 1000.  C. 730.  D. 470

25. _____ is made when the amount realized as sales is greater than the cost of goods sold. A. Gross profit. B. Gross loss. C. Net profit. D. Net loss

26. Banks allows their current account holder to withdraw more than what they have in their account through a system known as ____. A. Borrowing.  B. Drawing. C. Overdraft.  D. Loan

27. Trial balance is a list of balances extracted from the  accounts ____. A. Expenses. B. Ledger.  C. Trading.  D. Profit

28. The document sent by the seller to the buyer to correct an undercharged is called ____ A. Credit note.  B. Invoice.  C. Receipt. D. Debit note

29. Buying and selling of goods between Nigeria and United States of America is known as ____. A. Export.  B. Wholesale.  C. Foreign.  D. Home

30. Receptionist office is usually located at the.  A. Manager’s office.  B. Entrance of the building.  C. Security post.   D. Director’s office

31. The place in an organization where a visitor receives information about the person he wants to visit is called _____ room.  A. Visitor’s   B. Information.  C. Strong. D. Reception

32. The transaction affecting both debit and credit side of the cash book is called ____ entry.  A. Contra.  B. Control. C. Debit. D. Credit

33. The principal office is a good example of a _____ office. A. Department.  B. Large.  C. Sale. D. Small

34. Which of the following is an acknowledgement of payment?  A. Cash. B. Cheque. C. Receipt. D. Draft

35. The end point in the channel of distribution of goods is ____  A. Retailers.  B. Wholesaler.  C. Consumer.  D. Manufacturer

36. The book of account for recording receipts and payment is called ___ A. Ledger book.  B. Invoice book.  C. Cash book.  D. Quotation

37. The advertising medium mostly found along major roads in cities is called ___. A. Leaflet. B. Billboard.  C. Magazine.  D. Television

Use the following transactions extracted from the book of Musa to answer questions 38 and 39

Carriage inwards                   1200

Return outwards                      400

Sales                                      10,500

Purchases                               5,800

38. What is the total cost of goods sold? A. ₦6,600.00. B. ₦5,800.00.  C. ₦3,900.00.  D. ₦7,000.00

39. What is Musa’s gross profit?  A. ₦4,900.00.  B. ₦3,900.00.   C. ₦7,000.00.  D. ₦5,700.00

40. Which of these is a disadvantage of railway transportation?  A. It can cover long distance.  B. It has low accident occurrence.  C. It is expensive to establish.  D. It work with time schedule

41. In trading account, carriage inwards is added to ___ A. Closing stock. B. Cost of goods sold.  C. Sales. D. Purchases

42. A cheque becomes stale after ____ month. A. 2.  B. 6.  C. 12.  D. 3

43. The act of giving information to the public about a product or service is called ____. A. Advertising. B. Branding.  C. Marketing.  D. Selling

44. These items can be regarded as a petty expenses EXCEPT ____. A. Brush. B. Machine. C. Detergent. D. Stationary

45. Money that can only be withdrawn at an agreed time is kept in ____ account. A. Savings. B. Fixed deposit.  C. Current.  D. Company

46. Recruitment process is one of the duties of ____ department.  A. Account.  B. Purchase.  C. Personnel.   D. Sales

47. Which of the following is not a fixed asset?  A. Building. B. Furniture.  C. Land.   D. Debtor

48. The market where the value of one country's currency is negotiated against another country’s is called ____ market.  A. Money. B. Commodity.  C. Capital.  D. Foreign exchange

49. _____ aid trade by facilitating payment for goods and services. A. Bank.  B. Insurance.  C. Sales.  D. Communication

50. ____ occurs when a buyer sends money to a seller in exchange for goods received.   A. Selling.   B. Buying.   C. Payment.  D. Production

51. Find the net profit from the following

Total expenses         ₦139,500.00

Gross profit              ₦153,450.00

A.   ₦5,500.00.  B. ₦13,950.00.   C. ₦7,950.00.   D. ₦10,950.00

52. The buying, selling and distribution of goods is called. A. Trade.  B. Marketing.  C. Commerce.  D. Advertising

53. Mr. James bought goods Worth ₦10,000 and sold them with 20% profit. What is his selling price?  A. ₦15,000.00.  B. ₦14,500.00.  C. ₦11,450.00.  D. ₦12,000.00

54. When a buyer is allowed by the seller to taste the product before paying for it, it is called _____.  A. Buying by auction. B. Buying by inspection.  C. Buying by sample. D. Tasting

55. ____ help in the proper handling of chemical.  A. Chemical symbols.   B. Chemical substance.  C. Oil.  D. Chemical

56. ____ is the basic document found in the wages and salaries office.  A. Invoice.    B. Requisition form.  C. Pay slip.   D. Debit note

57. The following are types of insurance policies EXCEPT ____.   A. Burglary.   B. Marine.  C. Indemnity.  D. Fire

58. How many columns does one column cash book have on each side?   A. 5.   B. 6.  C. 7.  D. 4

59. ____ is the amount of goods a firm has at the beginning of a trading period.  A. Closing stock.  B. Gross profit.  C. Opening stock.  D. Net profit

60. All are parts of computer keyboard EXCEPT _____. A. Control key.   B. Carriage release key.  C. Caps lock.  D. Functions keys

 

SECTION B: ESSAY

INSTRUCTION: ANSWER QUESTION NUMBER ONE AND ANY OTHER THREE (3)

 

1.    From the details below prepare the balance sheet of Bulus as at 31^st December 2017

   ₦

Capital                                   123,000

Creditors                                   2,000

Land and building                   10,000

Machinery                                6,000

Motor vehicle                          4,000

Stock                                         4,500

Debtors                                     2,500

Cash at hand                             1,000

Cash at bank                             2,000

Net profit                                  6,000

Drawings                                  1,000

2.    a. Define aids to trade.   

b. List two services that aids trade.  

c. Explain one

3.    a. Who is a receptionist?  

b. State two qualities of a receptionist.  

c. List two documents handled by a receptionist.

4.    a. Define communication?  

b. List two means of communication. 

c. Explain one

5.    a. What is transaction?  

b. List two basic mean of transportation   

c. Explain one of the following documents. (i) Invoice    (ii) receipt    (iii) Dispatch book

 

ALTERNATIVE TO PRACTICAL

INSTRUCTION: ANSWER ALL THE QUESTIONS

6.    Draw two items you can use for the cleaning of your computer

7.    Draw a table showing the standard ruling of balance sheet

8.    Draw a specimen of a bank deposit slip

9.    Prepare an invoice for payment

ERC Business Studies 2019 Past Question

 

FCT/ERC/2019/BECE.

SUBJECT: BUSINESS STUDIES

DATE: JUNE, 2019.

TIME: 2½ HOURS.

SECTION B: OBJECTIVE 

INSTRUCTION: ANSWER ALL QUESTIONS FROM THIS SECTION.

1.    An applicant seeking employment should direct his application to the _____ office. A. Accounts     B.  Personnel        C. production.     D. sales

2.    Clerical duties are BEST performed in _______.   A. Company      B. Market      C. ministry      D. office

3.    Which of the following represents the firm's indebtedness?   A. Assets     B. Capital     C. Liabilities     D. Creditors

4.    Partnership deed is otherwise known as _____   A. Agreement      B. Amalgamation     C. dissolution     D. memorandum.

5.    Which of the following is used for the production of further wealth?   A. Debenture      B. Capital     C. Labour     D. Loan

6.    Mr Odey is the owner of a memorial hospital which form of business unit does the hospital belong?  A. Cooperatives.     B. Limited liability company.     C. Partnership     D. Sole-proprietorship.

7.    A current account holder with a named bank may use ____ to settle his debt.  A. Debit note.     B. Invoice     C. cheque     D. receipts

8.    In rural areas, the most effective media for announcing a village meeting is _____.  A. Newspaper     B. Town crier     C. Radio     D. poster

9.    In land transportation, rails are used by ______.  A. Bicycles     B. Cars     C. Motorcycles     D. Trains

10. Which of the following is not useful to a receptionist  A. Diary.     B. Card index of visitors    C. Cash book     D. Telephone directory

11. In an organization, first impression is created in the mind of the visitors by the ____.  A. Manager     B. Receptionist     C. Security     D. Secretary

12. Receipts are issued by the ____.  A. Creditor     B. Customer     C. debtor      D. purchase

13. The easiest method of payment by commercial banks is through _____. A. Bank draft     B. Cash     C. cheque.     D. postal order

14. Seas, oceans and rivers are components of ______. A. Capital.     B. Entrepreneur      C. labour     D. land

15. In a construction industry, cement is considered as a/an _____. A. Finished product     B. Raw material     C. manufactured goods     D. partly finished goods

16. Which of the following are divisions of home trade?  A. Private and commercial     B. Retail and commercial     C. Wholesale and retail     D. Retail and aids to trade

17. All goods bought for resale are called______. A. Assets     B. Liabilities     C. purchases     D. sales

18. The person whom the amount written on cheque is paid is called______.  A. Bearer      B. Drawee     C drawer     D. payee

19. Pipelines are used to transport? A. Goods, water and gases.     B. Oil, gases and water     C. Water, gases and goods     D Water, oil and goods

20. Which column of the cash book is for description of transaction? A. Amount.    B. Particulars.     C. Date     D. Falio

21. Trading account is prepared to show the _____. A. Cash at bank     B. Gross purchase     C. Gross profit or loss     D. Gross sales

22. All the following are examples of current assets EXCEPT  A. Creditor      B. Cash      C. Debtor     D. stock

23. Which of these is not a method of payment? A. Bank       B. Cash.     C. cheque      D. credit transfer

24. Details of mails are recorded in a account   A. Cash     B. Current    C. imprest     D. postage

25. The channel of distribution does not include _____.  A. Consumer B. Manager     C manufacturer     D. wholesaler

26. When buying and selling involves other countries it is referred to as ___ trade. A. Wholesale      B. Foreign     C. home     D. retail

27. Farming is an example of ____  occupation.  A. Commercial      B. Constructive     C. extractive     D. service

28. Sending of credit note to buyers becomes necessary when the goods are _____.  A. Bought for sale     B. Bought on credit     C. In perfect condition     D. Overcharged

29. Signing on the back of a cheque after the instruction "pay" is known as ____. A. Double crossing     B. Endorsement.    C. Invoicing     D. Single crossing

30. The ____ insurance reduces the financial burden to a family at the death of its breadwinner. A. burglary    B. Fire.    C. Life.    D. Marine

31. A document sent by the seller to the buyer showing the description of goods quantity, price and items of sale is known as   A. credit note        B. Invoice.    C. debit note     D. order

32. Withdrawal from bank for office use is an example of ____ Entry. A. Contra.    B. Credit.    C. Debit.    D. Single

33. The following are types of store record EXCEPT _____. A. Stock record card     B. Requisition from     C. Gate pass     D. Quantity invoice

Use the following information to answer question 34-37

The balances below were extracted from the book of Samuel Endurance Superstore no 31^st July 2017.

Sales                                 ₦17,000

Purchases                         ₦12.300

Opening Stock                   ₦1650

Closing Stock                    ₦1,500

Expenses                            ₦3000

34. What is the cost of goods available for sale?  A. ₦17,000.    B. ₦13,900    C. ₦12,300.    D. ₦3,150

35. The cost of goods sold amount to ____.  A. ₦29,300.    B. ₦17,000.    C. ₦150.    D. ₦12,450

36. How much was the gross profit?  A. ₦4,700.    B. ₦4,550.    C. ₦3,000.    D. ₦3,150

37. The net Profit of the business for the period was ____. A. ₦4,550.      B. ₦3,000.    C. ₦1,550.    D. ₦1,650

38. The excess of gross profit over expenses is _____. A. Cost of sales.    B. Gross loss.      C. Net Profit.    D. Net purchases

39. The payment made to daily paid workers is called ____.  A. Wage.     B. Salary.    C. Interest.    D. Reward

40. A book showing a summary of cash receipt for the day is called ____. A. Cash book.    B. Cash register.    C. Sales book.     D. Invoice

41. Which of the following is a factor of production? A. Bank     B. Communication     C. Insurance.   D. Labour

42. What type of transport is most suitable for carrying bulky goods within the country?  A. Aeroplane      B. Cargo     C. Larry     D. Ship

43. The price at which the producer is ready to supply goods to the buyers is called ____.  A.  Agreed price      B. Cash on delivery     C. Cost price     D. quotation

44. The process through which new products are brought to the notice of the public is known as ____. A. Insurance     B. Advertisement      C. commerce.    D. Transportation

45. An advantage of office machine is that they are ___. A. Cheap to maintain     B. Electrically operated     C. Time saving devices      D. Less costly to purchase

46. The drawer of the cheque is the ___.  A. Bank.    B. Creditor.    C. Drawer.     D. Writer

47. A current account holder who writes a cheque to withdraw some money from the bank is called ____. A. Borrower     B. Drawee     C. drawer       D. lender

48. Which of these items appears on the left hand side of the balance sheet?  A. Capital.     B. Cash at bank      C. Machinery.     D stock

49. A mail that is written and sent to someone within an organization is called ____ mail.  A. express.    B. External.    C. Internal.    D. Local

50. The ____ is used to hold two or more meets of papers together.  A. Calculator         B. Franking machine     C. perforator     D. stapler

51. Which of these will you recommend to an office for storage of document?  A. Chest.    B. Cupboard     C. Filling cabinet    D. locker

52. The exchange of goods for goods is referred to as ___.  A. Barter.    B Business     C. commerce     D. trade

53. The people making use of telephone services are known as    A. Subscribers.    B. Purchasers.     C suppliers     D. users

54. The business organization that are wholly owned by the government are called ____. A. Public limited company     B. Public enterprises/corporation     C. Public institution     D. Public partnership

55. Which of the following is used to maintain a type writer?  A. Gas.     B. Hydrogen      C. Kerosene    D. Methylated spirit

56. Which of the following are home keys?  A. ASDF JKL.     B.FDSA JKLK.     C. JKFD DDSE.    D. DASF KLJ

57. Which of these enables the carriage to move freely from left to right?  A. Line space lever     B. Carriage return level      C. Paper release lever     D. Paper grip

58. Which of these best describes type writing? It is an act of using ___. A. electronic machine to write letters     B. Machine to produce characters in print     C. Photocopier to produce paper     D. Type writer to type

59. On the keyboard of a computer Ctrl + C functions  as ____. A. Copy.    B.    Cut     C. delete     D. Paste

60. A complementary card usually shows the following information except ____. A. account number     B. address.    C. Name    D. Profession

 

SECTION B: ESSAY

 

1.    The following balances were extracted from the books of Essien Cecilia on 31^st December, 2018.

Stock 1/1/2018                      1500

Stock 31/1/2018                   830

Purchase                               16200

Return outward                    2500

Transport expenses                500

Salaries                                 1700

Electricity bill                        600

Insurance premium                200

Sales                                      25300

You are required to prepare a trading profit and loss account for the business of Essien Cecilia for the year ended 31^st December 2018.

2.    (a) Define consumer protection.  b) Mention two right of the consumer protection.  c) State two reasons for consumers’ protection

3.    (a) What is a cheque?   b) State three advantages of cheque system.   c) list the parties to a cheque.

4.    (a) What is personal finance?  b) Mention two sources of finance for an individual.  c) Explain one source of finance.

 

ALTERNATIVE TO PRACTICAL

Instruction: Answer all the questions in this section.

1.    As a secretary, draw a standard visitor’s slip/form.

2.    Draw an invoice and label it for immediate payment.

3.    Write down the meaning of the following keyboard shortcuts: a. Control+S.     b. Shift+S.  c. Control+C.  d. Control+V.    e. Shift+End

4.    Draw your fingers and label them with the corresponding “Home key”.