Commerce: Definitions and Scopes of Commerce

In commerce, the concept of paying in advanced is termed _____.

• A. Advanced payment

• B. Up payment

• C. Forward payment

• D. Prepayment

• E. Uphill payment

• F. Adpayment

In commerce, the concept of 'buy now, pay later' is termed _____.

• A. Unadventurous payment

• B. Buy on credit payment

• C. Deferred payment

• D. Postponed payment

• E. Owed payment

• F. Future payment

In commerce, which of the following is false with regards to a commodity?

• A. A commodity must always have a market value

• B. Rendered services are also instances of commodities

• C. Products applicable to commodities can be bought or sold with money

• D. A commodity must be standardized

• E. A commodity must be usable upon delivery

• F. Commodities can be traded in the futures market

Whatever is being marketed must always provide value to its potential consumers.

• A. True

• B. False

Which of the following is not a branch of marketing?

• A. Merchandising

• B. Promotions

• C. Forex

• D. Search Media Optimization

• E. Social Media Optimization

• F. Copywriting

Which of the following is not a characteristics of commerce?

• A. The only aim of commerce is to make profit

• B. It is a discontinuous process after profit had been made

• C. It is accompanied with challenges and uncertainties

• D. It is 100% business and economic activity

• E. Transaction processes are always involved in commerce

• F. It connects the process of production and marketing

Which of the following is not a function of commerce?

• A. Unnecessary in times of emergencies like earthquakes and wars

• B. Facilitates mass production of goods

• C. Influences transportation network within and outside a state

• D. Attempts to satisfy human needs and wants

• E. Improves the standard of living

• F. Acts as an online business link between buyers and sellers

One of the following is a form of division of labour.

• A. Agonistic division of labour
• B. Antagonistic division of labour
• C. Mutualistic division of Labour
• D. Advanced division of labour
• E. Solitary division of labour
• F. Occupational division of labour

According to research, the problem isn't the amount of food produced; the actual problem is the distribution of these foods. In this regard, we actually produce enough food to feed everyone on earth, but their distribution remains an underlying problem

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The brewery, Sankt Gallen in Japan, produces a beer called Un Kono Kuro from elephant's dung

North Korea and Cuba are the only countries in the world where you can't buy Coca-Cola

Amazon is an e-commerce website launched in 1995. It did not make any profit for its first seven years.

Amazon's first profit was in 2003. Its founder 'Jeff Bezos' is the richest man in the world as at 2018/2019

The theory of international trade is guided by the principle of comparative cost. This principle was propounded by David Richards.

The principle of comparative cost states that a country should specialize in the production of goods and services in which they have a greater comparative advantage or the least comparative disadvantage.

Below is an instance on the principle of comparative cost.

Now, let us assume we have two countries producing and exporting rice and beans respectively.

• On a daily basis, If country A produces 100 grams of rice and 300 grams of beans daily and country B produces 50 grams of rice and 150 grams of beans, then according to this principle, country A has an advantage over country B with regards rice and beans production; but better still, country A has a greater comparative advantage in the production of beans.

From the above instance, it can also be said that country B is at a disadvantage with regards to the production of rice and beans. Infact, it has a bigger comparative disadvantage with regards to beans production.

The point to note here is this: A country utilizing the principle of comparative cost will always produce quality goods and services at a cheaper cost.

No single country manufactures all the goods and services in our world. This implies that every country of the world relies on certain goods and services imported (or brought in) from other countries.

Foreign trade is defined as the exchange of goods, services and capital between two or more countries.

Foreign trade is also termed as international trade.

Please read more on foreign trade here

Division of labour can be defined as the act of splitting job process into a number of different processes such that each process is done by a different person or group of persons.

Through the process of division of labour, one worker may constantly perform a specific aspect of the job and as a result, may become specialized in that area.

The result of specialization in the different department of a job will imply the production of goods with better quality.

Please read on division of labour here

Forms of division of labour relates the various ways through which division of labour may be carried out.

Take for instance, within a country, one state may choose to specialize in the production of a cars while another specializes in a different area, let's say agriculture.

Below are the forms of division of labour

• Complex division of labour

• Occupational division of labour

• Geographical division of labour

Please read more on the forms of division of labour here.

Balance of Trade can be defined as the total value of goods imported and exported by a country during a specific period; usually yearly or annually.

Balance of trade can be either positive, negative or zero

• A positive balance of trade implies that a country exports more goods than its imports. China as a country is likely to have a positive balance of trade since it exports a variety of goods to other countries.

• A negative balance of trade is often considered as an unfavorable balance of trade since the country's importation exceeds its exportation. Nigeria (as at 2018) is likely to have a negative balance of trade.

• A zero balance of trade is reached when imports equal exports.

Please read on balance of trade and balance of payments here.