Commerce - 12th Edition - ISBN: 9780750608176, 9781483183817


12th Edition

Made Simple

Authors: Geoffrey Whitehead
eBook ISBN: 9781483183817
Imprint: Made Simple
Published Date: 2nd August 1993
Page Count: 414
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This 12th edition of Commerce is designed for self-study, though it is of equal value to schools and colleges.
Lecturers and teachers will find that the book meet their requirements for the 16+ General Certificate in Secondary Education and comparable syllabuses in Scotland, BTEC examinations and other similar examinations.
This book is organized into 24 chapters. These chapters cover all the basic commercial activities in modern free enterprise societies and explain simply and clearly the activities performed by wholesalers, retailers, importers and exporters in the distribution and exchange of goods. They also describe the activities of bankers, insurance companies and transport organizations and discuss the important aspects of communication with respect to commerce. This edition also updated some of the text using the most up-to-date documents. This book will be of interest to commerce students and teachers and all others interested in understanding commercial activities.

Table of Contents




1 Commerce in the Framework of Production

1.1 Introduction

1.2 The Basic Wants of Mankind

1.3 The Sophisticated Wants of an Advanced Society

1.4 Goods and Services

1.5 Satisfying Human Wants - Methods of Production

1.6 Direct Production - Satisfying Our Wants Entirely Unaided by Other People

1.7 Indirect Production — Producing by Specialization

1.8 The Advantages of Specialization

1.9 Specialization and the Growth of Surplus Output

1.10 Surplus Goods and the Provision of Services

1.11 The Three Types of Production

1.12 Commerce - Impersonal Tertiary Services

1.13 A Page to Test You on the Framework of Production

1.14 Exercises: Commerce in the Framework of Production

2 Types of Business Unit in Production and Commerce

2.1 Starting a Business

2.2 Types of Business Unit

2.3 Sole-Trader Enterprises

2.4 Partnerships

2.5 Limited Partnerships

2.6 Private Limited Companies and Public Limited Companies

2.7 The Absorption of Small Businesses - Holding Companies

2.8 The Multinational Corporation (the International Company)

2.9 Workers' Co-operatives (Producers' Co-operatives)

2.10 Non-profitmaking Units

2.11 The Public-Enterprise Sector of the Economy

2.12 A Page to Test You on Business Units

2.13 Exercises: Types of Business Unit

3 Retail Trade - Making Goods Available to the Final Consumer

3.1 Introduction

3.2 Meaning of the Word 'Retail'

3.3 Definition of Retail Trade

3.4 Persons Engaged in Retail Trade

3.5 The Functions of the Retailer

3.6 Exercises: The Functions of the Retailer

3.7 Types of Retail Outlet

3.8 Retailers without Shops

3.9 Retailers with Shops

3.10 Retailers who are not really Retailers

3.11 A Page to Test You on Retail Trade

3.12 Exercises: The Pattern of Retail Trade

4 The Changing Pattern of Retail Trade

4.1 Introduction

4.2 The Causes of the Changes in Retail Trade

4.3 The Effect of the Branding of Goods on Retail Trade

4.4 Effect of the Technological Revolution

4.5 Effect of the Employment of Women on Retail Trade

4.6 Effect on Retail Trade of a More Even Distribution of Wealth

4.7 The Abolition of Resale Price Maintenance

4.8 Large Scale in the Retail Trade

4.9 Co-operative Trading Today

4.10 The Pattern of Retail Trade Today

4.11 Retailers' Reply to Competition from Large-scale Outlets

4.12 Other Aspects of Modern Trading

4.13 Trading Stamps

4.14 The 'Hire-rather-than-buy' Retailer

4.15 Will the Small Trader Ever Disappear?

4.16 A Page to Test You on Retail Trade

4.17 Exercises: The Changing Pattern of Retail Trade

5 Hire-purchase Trading and Consumer Credit

5.1 Introduction

5.2 Duties of The Director General of Fair Trading

5.3 Types of Credit Controlled by the Consumer Credit Act, 1974

5.4 The Advantages of Consumer Credit

5.5 The Protection of the Consumer in Britain

5.6 Organizing Prosperity — Controls over Consumer Credit

5.7 A Page to Test You on Consumer Credit

5.8 Exercises: Consumer Credit

6 The Wholesale Trade

6.1 Introduction

6.2 Position of the Wholesaler in the Chain of Commerce

6.3 Evolution of the Middleman

6.4 Functions of the Wholesaler

6.5 Services to the Manufacturer

6.6 Services to the Retailer

6.7 Services to the Public

6.8 Types of Wholesaler

6.9 Warehousing

6.10 Organization of a Wholesale Warehouse

6.11 The Bad Reputation of 'Middlemen'

6.12 Should We Eliminate the Middleman?

6.13 Achieving Economies in Distribution

6.14 A Page to Test You on the Wholesale Trade

6.15 Exercises: The Wholesale Trade

7 Import Trade

7.1 Introduction

7.2 The Pattern of Import Trade

7.3 Specialists in the Import Trade - Merchants, Agents and Brokers

7.4 Restrictions on Free Trade in Imports

7.5 Documentation of Import Cargoes

7.6 Membership of the European Community (EC)

7.7 Re-exports, Transhipment and Process Inwards Relief

7.8 Bonded Warehouses (Tax Warehouses)

7.9 Imports Arriving from Non-EC Countries

7.10 A Page to Test You on Import Trade

7.11 Exercises: Import Trade

8 Markets

8.1 Definition

8.2 Types of Market

8.3 Methods of Dealing

8.4 'Spot' Markets and Futures Markets

8.5 A Page to Test You on Markets

8.6 Exercises: Markets

9 The Baltic Exchange

9.1 Introduction

9.2 The Freight Market

9.3 The Baltic Air Charter Association

9.4 Commodity Activities

9.5 Ancillary Activities

9.6 The Policy of the Baltic Exchange towards Educational Visits

9.7 A Page to Test You on the Baltic Exchange

9.8 Exercises: The Baltic Exchange

10 The Export Trade

10.1 Introduction

10.2 Problems Facing the Exporter

10.3 The Channels of Export Trade

10.4 The Finance of Foreign Trade

10.5 Methods of Payment in Overseas Trade

10.6 Forward Exchange Dealings

10.7 The NCM Group (which took over the short term business of the Export Credit Guarantee Department)

10.8 Government Aid for Exporters

10.9 Documentation of Overseas Trade

10.10 Formfill — an Electronic Form Filler

10.11 A Page to Test You on Export Trade

10.12 Exercises: The Export Trade

11 Value Added Tax

11.1 Taxing Production and Trade

11.2 Office Activities Made Necessary by Value Added Tax

11.3 VAT Calculations

11.4 VAT and the 'Single European Market'

11.5 A Page to Test You on VAT

11.6 Exercises: Value Added Tax

12 The General Framework of the Banking System

12.1 Definition of a Bank

12.2 The Basic Functions of Banking

12.3 How the Basic Functions of Banking Were Developed

12.4 The English Banking System

12.5 Commercial or Joint-Stock Banks

12.6 Importance of the Commercial Banks

12.7 Liquidity and the Banks

12.8 How Banks Earn a Living

12.9 A Page to Test You on the General Framework of Banking

12.10 Exercises: The General Framework of Banking

13 The Services of the Banks to Commercial Firms and Private Individuals

13.1 The Services of the Banks Today

13.2 Current Account Services

13.3 Deposit Account Services

13.4 Savings Account Services

13.5 Other Services Offered by the Banks

13.6 A Page to Test You on Bankers' Services

13.7 Exercises: the Banks' Services

14 The Discount Market

14.1 Introduction

14.2 Bill Broking

14.3 Services of the Bill Brokers to the Lending Sector

14.4 Services of the Bill Brokers to the Borrowing Sector

14.5 How the Discount Market Operates

14.6 Recent Developments in the Discount Market

14.7 A Page to Test You on the Discount Market

14.8 Exercises: The Discount Market

15 The Merchant Bankers

15.1 Introduction

15.2 The Functions of Accepting Houses Today

15.3 A Page to Test You on Merchant Banking

15.4 Exercises: the Merchant Bankers

16 The Bank of England and the Control of the Banking System

16.1 Introduction

16.2 The Functions of the Bank of England

16.3 The Bank in its Role as Banker

16.4 The Bank's Operations in the Markets

16.5 The London Bankers' Clearing House

16.6 A Page to Test You on the Bank of England

16.7 Exercises: The Bank of England and the Control of the Banking System

17 The Stock Exchange

17.1 Introduction

17.2 Turning Fixed Capital into Cash: and Cash into Fixed Capital

17.3 Types of Security

17.4 Who Owns Stocks, Shares and Debentures?

17.5 Buying and Selling Securities - a Highly Organized Market

17.6 How a Bargain is Struck

17.7 Why the Prices Fluctuate

17.8 The Contract Note

17.9 Who Was the Previous Owner?

17.10 The Stock Exchange 'Zoo' - Bulls, Bears and Stags

17.11 How the Public Benefits from Speculation

17.12 Sorting out the Transactions - the Fortnightly Account

17.13 What Services Does the Stock Exchange Render to the Investor?

17.14 What Services Does the Stock Exchange Render the Public?

17.15 A Glossary of Stock Exchange Terms

17.16 Educational Material on the Stock Exchange

17.17 A Page to Test You on the Stock Exchange

17.18 Exercises: The Stock Exchange

18 Insurance

18.1 The Purpose of Insurance

18.2 The Nature of Insurance - the Tooling' of Risks

18.3 An Early Insurance Act

18.4 How the 'Insurance ΡοοΓ Works

18.5 The Principles and Doctrines of Insurance

18.6 A Page to Test You on Basic Principles of Insurance

18.7 Exercises: Basic Principles of Insurance

18.8 How an Insurance Policy is Brought into Effect

18.9 Taking Care of the Tool'

18.10 Paying Out the Just Claims

18.11 The Types of Insurance

18.12 Marine Insurance

18.13 Fire Insurance

18.14 Life Assurance

18.15 Accident Insurance

18.16 Exercises: More Questions about Insurance

18.17 The British Insurance Market

18.18 Lloyd's of London

18.19 Exercises: The British Insurance Market

18.20 The Importance of Insurance to the British Economy

18.21 A Page to Test You on the Insurance Market

18.22 Exercises: Examination Questions on Insurance

19 Transport

19.1 The Position of Transport in the Pattern of Commerce

19.2 The Elements of Transport

19.3 Sea Transport

19.4 The Chief Ports of the UK

19.5 Advantages and Disadvantages of Sea Transport

19.6 Rail Transport

19.7 Advantages and Disadvantages of Rail Transport

19.8 Road Transport

19.9 Road Transport - a Growth Industry

19.10 Solving the Inland Transport Problem — Integrated or Co-ordinated Services?

19.11 Air Transport

19.12 The Economic Viability of Air Freighting

19.13 Other Transportation Systems

19.14 A Page to Test You on Transport

19.15 Exercises: Transport

20 Communication

20.1 Introduction

20.2 The Telephone and Digital Communication

20.3 The Principles of Computerization

20.4 A Network of Computers

20.5 Ordinary Telephone Services

20.6 The Services of the Post Office

20.7 Future Developments in the Communications Field

20.8 The Position of Advertising in Commerce

20.9 A Page to Test You on Communication

20.10 Exercises: Communication

21 The Documents Used in Business

21.1 Business Transactions

21.2 The Order

21.3 The Invoice

21.4 Cash Discounts and Trade Discounts

21.5 The Debit Note - a Document Very Like an Invoice

21.6 The Credit Note - the Document for Returns

21.7 Original Documents for the Settlement of Accounts

21.8 Other Documents

21.9 A Page to Test You on Documents

21.10 Exercises: The Documents Used in Business

22 Settling Indebtedness between Businesses

22.1 Introduction

22.2 Payment in Legal Tender

22.3 Payments through the Banking System

22.4 Payments through the Post Office System

22.5 Settling Overseas Payments

22.6 Leasing

22.7 A Page to Test You on Settling Indebtedness

22.8 Exercises: Settling Indebtedness between Businesses

23 Guide-lines in Running a Business

23.1 Introduction

23.2 Capital

23.3 Fixed Capital

23.4 Working Capital and Working Capital Ratio

23.5 Liquid Capital and Liquid Capital Ratio

23.6 Appraising a Balance Sheet

23.7 The Turnover of a Business

23.8 Gross Profit Percentage

23.9 Net Profit Percentage

23.10 Rate of Turnover or Rate of Stock Turnover

23.11 The Return on Capital Invested

23.12 A Page to Test You on Capital and Statistical Control Figures

23.13 Exercises: Statistical Control Figures

24 The Work of Government Departments in Commerce

24.1 Introduction

24.2 Duties that Must be Performed by the State

24.3 Duties that are Performed by the State even though Businesses Could Undertake Them

24.4 Activities to Help Business People in Their Business Affairs

24.5 The Department of Trade and Industry (DTI)

24.6 Activities to Maintain Prosperity and Economic Welfare

24.7 Controlling the Economy in the Short Term - the Financial, Fiscal and Monetary Aspects

24.8 Planning the Long-term Prosperity of the Nation

24.9 A Page to Test You on Government Departments and Commerce

24.10 Exercises: The Work of Government Departments in Commerce



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© Made Simple 1993
Made Simple
eBook ISBN:

About the Author

Geoffrey Whitehead

Geoff Whitehead is one of the original Made Simple authors and has sold over 2 million Made Simple books. Before writing full-time he was Head of Professional Studies at Thurrock College, and he now runs a small business consultancy for one of the main publishers of account books. With day-to-day advice at a grass roots level he is still 'keeping it simple' for 350,000 book-keepers using the system each year.

Affiliations and Expertise