Made Simple

12th Edition - August 2, 1993

Write a review

  • Author: Geoffrey Whitehead
  • eBook ISBN: 9781483183817

Purchase options

Purchase options
DRM-free (PDF)
Sales tax will be calculated at check-out

Institutional Subscription

Free Global Shipping
No minimum order


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

  • 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


Product details

  • No. of pages: 414
  • Language: English
  • Copyright: © Made Simple 1993
  • Published: August 2, 1993
  • Imprint: Made Simple
  • eBook ISBN: 9781483183817

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


Ratings and Reviews

Write a review

Latest reviews

(Total rating for all reviews)

  • sam Mon Jan 20 2020