Lesson Note on Business Studies JSS 2 First Term

Business Studies Lesson for JSS 2 First Term

Edudelight Lesson


WEEK           TOPICS

1.         Reception Office- Meaning, Description of Reception Office

Receptionist- Meaning, Importance and Qualities

Duties of a receptionist

How to receive and treat visitors

How to make and receive phone calls

Appropriate dress code

Documents handled by a receptionist.

2.         Office Correspondence- correspondence record, types, uses

Ways mails come into the organization.

Handling of mails

3.         Office document: Meaning, types, sales documents, purchase document, uses.

4.         Trade: Meaning, importance, Forms of trade; home trade, foreign trade.

5.         Aids to trade–Banking, insurance, advertising, communication, transportation,

Roles of custom and excise at foreign trade.

6.         Market; Meaning, features, types, institutions and instruments traded, buying and selling.

7.         Career in the capital market

  • buying and selling
    • meaning: by cash,
    • By credit.
  • Transactions: cost of sales
  • Mark up
  • Turn over
  • Profit and loss

8.         Distribution; Meaning, channels of distribution, Producer, Wholesaler, Retailer,

Consumer, functions of each of the channels of distribution.

9.         Distribution: Licensed chemical vendors,

handling and distribution of chemicals.

effect of wrong handling of chemicals

when production ends.

10.       Bank service; Commercial bank- definition, bank services, ethical issues in banking.

11-12.  Revision & Examination     


  • Business Studies for JSS Bk 2 By O.A. Lawal et’al Publisher: Longman
  • WABP Business Studies for JSS Bk 2 By Egba T. Ehiametalor etal Publisher WABP
  • Business Studies Work Book for JSS Basic 8 By S. Okioyemi        
  • Macmillan JSS 2 Business Studies By Awoyokun A.A et’al.




  • Meaning of reception office
  • Description of reception office
  • Definition of a receptionist
  • Qualities of a receptionist
  • Job qualities
  • Personal qualities
  • Duties of a receptionist


A reception area is an office where visitors are received. It is situated near the main entrance of the office.

It is usually situated at the entrance of any organization.

Description of reception office

  1. It must be comfortable for visitors.
  2. It must be kept tidy at all times.
  3. It must be pleasant.


1.      Define reception office.

  • Give 3 description of a reception office.


A receptionist is a worker or member of staff of an organization who is in-charge of the reception office or area. A reception area is an office where visitors are received. It is situated near the main entrance of the office. There are magazines, journals, newspapers, television, radio, fans, chairs etc. to entertain visitors and make them comfortable.

A reception table must have one, or more telephones to receive and make calls.


Mainly there are two qualities of a receptionist, which are job qualities and personal qualities.

The job qualities are the qualities that the job or the organization requires from the receptionist. i.e. on the job quality, while the personal qualities are the qualities that the receptionist must possess before going to apply as a receptionist.

1.         Job qualities

            a.         Must be punctual

            b.         Must be hardworking

            c.         Must be truthful

            d.         Must have experience of the job

            e.         Must be careful at work

            f.          Must be ready to accept local training

2.         Personal qualities

            a.         Must have a pleasing personality

            b.         Must be smart in appearance and in dressing

c.         Must be well educated and have the ability to communicate with people

d.         Must have a thorough knowledge of the organization and give correct information

            e.         Must have good telephone manners

            f.          Must have self control


  1. Highlight the general duties of a receptionist
  2. List 5 personal qualities of a receptionist.


Business studies for junior secondary schools revised edition. O.A. Lawal, F.O.C. Ezeah. Pages 1-2


  1. How to receive and treat visitors
    • How to make and receive phone calls
    • Appropriate dress code

How to receive and treat visitors

The receptionist must be courteous to all visitors. A receptionist must not engage  in unimportant matters while a visitor is waiting.

How receive and treat visitors:  receiving callers or visitors is the crucial functions of a receptionist because, the visitors get the first impression about the organization from him/her.

  1. He/she welcomes all visitors politely and pleasantly and attends to them by asking can I help please.
  2. He/she offers a seat to the visitor if need be.
  3. He/she direct them to appropriate officers.
  4. He/she receives information for the organization from the visitors or callers

Maintaining the visitor’s book

One major duty of the receptionist is to record visitors’ names and address for the organization. This is to enable the organization have a day to day record of visitors who visit for one reason or the other.

How to make and receive phone calls

It is the duty of the receptionist to direct telephone calls to the appropriate officials. The receptionist receives calls and directs them the right officials or records them if necessary.

  1. A receptionist should use pleasant and clear voice, and also be brief when making a call or answering a telephone call.
  2. A receptionist should ask questions from callers very tactfully.
  3. A receptionist should be courteous to callers.
  4. He/ she must keep accurate records of all the telephone messages.
  5. He/she should pass information through the network.


  1. List the duties of a receptionist
  2. Explain two duties of a receptionist.

Answering and directing visitors to the right offices and officers |

The receptionist attends to each visitor and directs them to the appropriate offices or officer. Visitors do not have the right to just work into offices; they are to obey the instructions of the receptionist concerning their reason for visiting.


A good receptionist must have a pleasant appearance. He/ she must be well dressed at all times. A decent and co operate dressing is required so as to appear smart.


  1. Mention 3 ways of receiving and treating visitors.
  2. What dress code is required of a receptionist?


Macmillian JSS 2, business studies pg 2.

Edudelight Lesson


1.         Visitor’s book

2.         The business card

3.         Request form

4.         Telephone directory

5.         Telephone message pad

1.         VISITOR’S BOOK

The visitor’s book is very useful to record information about the visitor and the reason for his visit. A visitor’s book contains. Name of the visitor, Address whom to see, Purpose of visit (Personal and official), Time in and time out and Signature.


DateName of VisitorAddressWhom to seePurpose of visitTime inSignatureTime out


A business card is also called introductory card. It is known as a complimentary card or call card. The visitor to the receptionist uses it as a self-introduction. The content of the call card is shown below as it contains information.

A Format of a Business Card

Good Shepherd Schools

1 Isioku Olayinka Street

Meiran Lagos.

Lagos Campus                                                            Mr. Ohio I. O

1 Isioku/Olayinka Street Meiran Lagos. I internal

Ogun Campus                                                                         E-mail:

386 FPF Rd Campbell Ogun State                                         lclowo@otahio.co

Tel: 01-4817300, 8023507014                                               Phone08067564486


In one sentence, one for each, define

1.         A Visitor book

2.         A Business Card



Request Form: In some offices, it is very necessary to complete the request form before a visitor can be allowed to see any officer. When the form has been duly completed, it is passed to the officer who will indicate if he/she should be allowed in or not.


A Request Form

Name and Address of visitor:

Whom to see:

Purpose of visit:



Telephone Directory:This is current and updated information about important places, offices and the telephone contacts and addresses within the state or country. It is the duty of the receptionist to keep this information and study it, so as to know telephone and address contacts of organizations around the country.

Telephone Message Pad

This is used to record telephone messages received on behalf of an officer in his absence. Callers should be treated with courtesy and with a clear voice. The receptionist collects the message and records it on the telephone message pad.

Date: _______________                                            Time: _______________

Name of Caller: _____________________________________________

For Whom: _________________________________________________

Message: __________________________________________________

Message taken by: _____________________________________________


  1. State in one sentence the purpose of the request form.
  2. Draw out the format preparing visitors’ note.
  3. Mention all the documents used by a reception and state the purpose of each in one sentence?


Business studies for junior secondary schools revised edition. O.A. Lawal, F.O.C. Ezeah. Pages 19-2

Edudelight Lesson


1.         A receptionist must dress —— at work (a) georgeously (b) corporately (c) casually

(d) roughly.

2.         The receptionist office should be located at the —— of the organization (a) back (b) side (c) entrance (d) outside

3.         All these except one are the contents of a business card (a) Name of the holder

 (b) Age (c) Rank (d) Name of the organisation

4.         One of the following is a must for the receptionist to study in order to be able to call within and outside the organization (a) Telephone directory (b) Telephone message pad (c) Telegram (d) visitor’s book.

5.         ——— receives visitors on behalf of the organization. (a) A messanger (b) An accountant (c) A receptionist (d) A cleaner.


1.         Who is a receptionist?

2.          Mention four qualities of a receptionist. (b) Explain any two.


  1. Define an office.
    1. Mention three job qualities of a receptionist.
    1. What are the duties of a receptionist?
    1. Mention five documents handled by a receptionist.
    1. In two sentences, describe how a reception office should look.




  • Meaning
  • Uses
  • Types
  • Ways mails come into an organization
  • Handling of mails.

Correspondence records are books which record mails that come into the organization and those that leave the organization.


  1. Business letters
  2. Office letter
  3. memorandum

These are the letters that come into the organization and sent out by the organization. Letters that come into the organization or company are referred to as incoming mails while those letters sent out are called outgoing mails. The volume of incoming and outgoing mails depends on the following:

  1. The size of the organization
  2. The nature of its business


  1. Incoming mails
  2. Outgoing mails
  3. Internal mail

INCOMING MAILS: these are the letters, parcels, documents being received in an organization. In a large organization, incoming mails will be opened, recorded, sorted and distributed to the various units.

It contains the followings:

  1. Enquiries about company’s activities
  2. New orders for the company’s product
  3. Report
  4. Complains from customers
  5. cheques from customers.

OUTGOING MAILS: These are letters, parcels and documents going out of the organization.

Letters going out of the company will usually be sorted into two categories:

  1. Those to be sent by hand and
  2. Those to be sent by post.

They are to be recorded in the outgoing mail register.

INTERNAL MAILS: It refers to mails written by the organization either by an individual, unit head or the head of an organization and directed to another individual or a unit head in the organization for action.

Such internal mail may include application for leave, letter reporting a sick worker to the personnel manager, letter of promotion.

The incoming and outgoing mails should be handled promptly and efficiently.

Mails come into the organization by hand, through the post or through electronic means(interest).


These are always typed on letter headed paper of the prospective company and copies are made from the original copy using carbon paper in between the papers. It is normal to put subject heading on business letter so as to know at a glance the subject matter of the letter. In a fully block letter, the subject heading, if any, is typed at the left hand margin and underscored if it is in lower case.

When any enclosure is to be inserted in a letter, it can be indicated in the letter by typing Enc, Encs, Encl or enclosure at the left margin.


  1. What is a business letter?
  2. Write a short note on correspondence letter.
Edudelight Lesson


This is the medium of sending messages within an establishment. Firms usually have their own form of memoranda which are cut in the size they want.

The layout of the heading varies from one organization to the other. The following are examples of a memorandum:



From:                                  To:

Our Ref:                              Date:

Subject: ………

In a memorandum, no salutation or complimentary closure is necessary. The memorandum should be typed in single-line spacing with double –line spacing between paragraphs.

Any style of paragraph can be used.


  1. What is a memorandum?
  2. Illustrate how a memorandum should look.


Macmillan JSS2 pg 6 by Awoyokun, A.A et al.



Mails may be defined as letters, postcards, papers and parcels to be sent by post.

Mails come into an office either by hand or by post. Mails coming by hand are signed for by the receiving clerk or the receptionist.


Mails that are received through the post are either delivered by post men or private mail bags by post office clerks.

In whatever form mails come into an office, they are opened, sorted and date-stamped by authorized persons.

However, letters or mails marked “confidential”, “private” or “personal” should not be opened but are sent to the persons concerned.


This is used to record incoming mails after which they are sent to the persons/officers that will attend to them or distributed simply to different departments concerned.

An incoming mails register will look like this



  1. Define incoming mail
  2. In 3 sentences, explain incoming mail register.


Outgoing mails may be written in reply to an incoming mail or sent as an inquiry in other business organization.

When action is taken on an incoming mail, a reply is sent to the writer.  Such an outgoing mail

will be registered in an outgoing mail register.

An outgoing mails register will look like this



  1. What is an outgoing mail register?
  2. Explain an incoming mail register.


Business for JSS 1 by O. A. Lawal and others pages


  1. Incoming and outgoing mails are records in (a) school register (b) mail register (c) file register (d) register
  2. Letters from one company to another can be sent either by ________ or_______ (a) post or hand (b) hand or leg (c) post or envelope (d) hand or by trekking
  3. Incoming mails are opened, sorted in a ————room (a) reception (b) store

(c) recording (d) mail.

  1. One of these is not a type of mail (a) incoming (b) external (c) outgoing (d) internal.
  2. Letters, postcards, papers and parcels can be generally called (a) notes (b) papers (c) documents (d) mails


1.   a. Define mails

b. Explain the meaning of (i)incoming mails (ii) outgoing mails.

2.   List and explain three ways by which mails come into the organization.


  1. Give an example of an incoming mail.
  2. Mention the two categories that letters entering into organization can be sorted into.
  3. List any five departments you were taught.
  4. What are correspondence record?
  5. Define memorandum.





1.         Letter of Enquiry

2.         Catalogue

3.         Quotation

4.         Price Current

5.         Order etc.


Office documents are official papers used in transaction of business between one organization another.

They are used to facilitate sales and purchase of items.

Office documents can be classified into (i) sales documents and (ii) purchase documents.

  • Sales documents contains information about goods sold.
  • Purchase documents contain information about goods bought.

Types of office documents are:

  1. Letter of Enquiry
  2. Catalogue
  3. Quotation
  4. Price Current
  5. Order etc.
  6. Statement of account
  7. Consignment Note
  8. Bill of Lading etc.


In the course of buying and selling of goods and services, these are lots of documents that must be involved for the following purposes. They include:

i.          Record Keeping                                                                                             

ii.         Documenting evidence of transactions between the buyer and sellers

iii.        Valid contract.

Sales documents: These are documents used in keeping records of all sales transactions. They keep record of what is sold either in cash or credit. Examples are invoice, debit note, credit note, quotation, , price current etc.

Purchase documents: Theseare documents used in keeping records of purchases in the organization.e.g order note,enquiry note etc.       

1.   Letter of Enquiry: A letter of enquiry is sent to the seller by the buyer asking for information about goods that are available for sale.

2.   Catalogue: A catalogue is sent to the buyer by the seller, as a reply to the letter of enquiry. The catalogue is a list of goods in stock available for sales

3.   Quotation:  A quotation is also called a price list. It contains lists of goods and their prices. It is sent to the buyer by the seller and also contains illustrations on the goods

4.   Price Current: This is a document sent by the seller to the buyer indicating current prices ruling in the market at the time the goods or document is sent

5.   Order: The buyer sends an order to the seller asking for some goods that he would like to buy having studied the price lists. The order normally indicates the goods needed in terms of quality and amount.


  1. Write short note on the following:
  2. Letter of Enquiry
  3. Catalogue
  4. Quotation
  5. Define office documents
  6. Delivery Note: Also called dispatch note, it is usually sent to the buyer to show the goods that have been supplied to him based on his request.
  7. Invoice: This is like a receipt given to the buyer by the seller, showing the types of goods bought, quality, price per unit and the total quantity bought.
  8. Pro-Forma Invoice: This is similar to the normal invoice showing what will eventually be indicated on the real invoice. It can be distinguished from the normal invoice by the word Pro-forma written on it
  9. Credit Note: This is a document sent by the seller to the buyer who is a debtor indicating that his accounts have been credited. The seller sends a credit note for the following reasons:
  10. When the buyers has been over charged by the seller
  11. When the seller sends less or few goods for the number of goods ordered
  12. When the buyer returns some damaged goods
  13. When the seller sends wrong goods.
  14. Debit Note: This is a document sent by the seller to the buyer who is a debtor that his account has been debited. A debit note is sent for the following reasons.
    1. When the buyer has bought goods with the wrong price tag. E.g. A book of N15 carrying a price tag of N5 (Undercharged)
    1. When the seller sends more goods to the buyer than required
    1. When the packaging price has been omitted in the invoice

Other Documents used in Buying and Selling

  1. Statement of account
    1. Consignment Note
    1. Bill of Lading etc.


  1. Write short note on the following:

Delivery Note


  • Define the following:

Pro-Forma Invoice


Debit Note


Business studies for junior secondary schools revised edition. O.A. Lawal, F.O.C. Ezeah. Pages 19-20


  1. A document showing the types of goods, the quantity price per unit and the total quantity bought is called ____ (a) Credit note (b) Price current (c) Invoice
    1. The credit note is sent by ____ (a) Buyer to seller (b) Seller to buyer

(c) Buyer to customer

  • ____ is used to show the current price of goods in the market (a) Price list

(b) Quotation (c) Price current

  • A document sent by the buyer to seller asking for information about available goods is known as ____ (a) Letter of enquiry (b) Catalogue (c) Order
    • ____ is a document used in informing the buyer that the goods had been sent (a) Information note (b) Delivery note (c) Pro forma note


1.   Mention two circumstances for which a debit note can be sent.

2.   List five types of documents used in buying and selling?


  1. What is production?
  2. Define office document.
  3. Mention five types of office document.
  4. When is credit note sent to the buyer?
  5. Write short note on  the following (i) order (ii) letter of enquiry




  • Meaning
  • Importance
  • Forms of Trade


Trade is defined as the exchange of goods and services between buyers and sellers at an agreed price. It is the buying and selling of goods and services at an agreed price.

When goods are handed over to the buyers and there is exchange of ownership, the process of handing over the goods is called delivery. Trade is broadly classified into home trade and foreign trade. However buying and selling takes place very often in a market.


  1. It makes varieties of goods and services available.
  2. It improves standard of living of people.
  3. It encourages friendship among countries of the world.
  4. It leads to employment opportunities.
  5. It gives value to national currency.
  6. It brings buyers and sellers together.


  1. Home Trade
    1. Foreign trade


Home trade is the buying and selling of goods and services within the boundary of a country. For example, a yam trader at Onitsha selling to her customer in Lagos.

Home trade can also be called domestic trade or internal trade or national trade. It can be divided into two:

i.    Wholesale trade

ii.   Retail trade


Wholesale trade should not be confused with a wholesaler. A wholesaler is the trader who buys goods and services in large quantities from the producer to sell in small quantities to the retailer. Wholesale trade is the process or system of buying in large quantities from the producer and selling in small quantities to the retailer. However a retailer buys in small quantities to sell to the public.


A retailer should not be confused with retail trade. A retailer is a trader who buys goods in small quantities from the wholesaler and sells in units to the consumer. However, retail trade is the process of buying in small quantity from the wholesaler and selling in bits or units to consumers.


  1. What are the differences between wholesalers and retailers?
  2.  What is the importance of retailers in the chain of distribution?
  3. Define trade.


Foreign trade is the selling of goods and services between one country and another. Example of this trade could be between Nigeria and Germany. It can also be called external trade or international trade and it is divided into two types namely:

i     Import trade: This is the process of buying from other countries. Examples includes importation of cars, rice etc. A person or company engaging in this type of trade is called an Importer.

ii.   Export trade: This is the process of selling to other countries, that is exporting locally produced goods like cocoa, groundnuts etc. The person or company engaging in this type of trade is called an exporter.

iii  Entrepot trade: This is the re-exporting of goods already brought into a country from another country without further processing or transformation For example a company buying goods from a foreign country and selling it to another foreign country..



    Home Trade                                                                                    Foreign Trade

Wholesale Trade         Retail Trade                            Import Trade               Export Trade   Entrepot


  1. What is foreign trade?
  2. Write short notes on import and export trade.


Business studies for junior secondary schools revised edition. O.A. Lawal, F.O.C. Ezeah. Pages 15                                          


  1. ——- is the act of buying and selling of goods and services. (a) market (b) trade (c) office               (d) correspondence.
  2. The act of buying and selling of goods and services between two or more countries is —-

(a) home trade (b) foreign trade (c) entrepot trade (d) local trade.

  1. When goods are bought by a retailer from Abuja and sold at Lagos, it is called

(a) international trade (b) home trade (c) mixed trade (d) entrepot trade.

  1. When goods are bought in a foreign country and sold in another country, it is called —— (a) wholesale trade (b) home trade (c) foreign trade (d) entrepot trade.
  2. When goods are bought by a retailer and later sold to consumers ——- trade has taken place. (a) foreign (b) home (c) wholesale (d) retail.


  1. Define trade.
  2. Differentiate between foreign and home trade.


  1. Define an office.
  2. Who is a receptionist?
  3. Mention three sales documents.
  4. Mention four documents handled by a receptionist.
  5. Define a mail.




  • Aids to trade
  • Roles of custom and excise at foreign trade

By the expression “Aids to Trade” we mean those things or agents that make trade to grow. The aids to trade make trade easy and for this reason they are called aids to trade or agents of trade or factors of trade or auxiliary to trade.


These aids to trade are:

a.   Insurance

b.   Banking

c.   Transportation

d.   Warehousing

e.   Advertising

f.    Communication and

g.   Tourism


The functions of the above aids to trade are as follows:

a.         Insurance: Insurance covers risks. It is an aid to trade because it encourages business men to take risky business ventures.

b.         Banking: The two main functions of a bank is to save money and lend money. This money accepted and saved for customers are lent to businessmen as capital. In this way the bank is an aid to trade.

c.         Transportation: Transport helps trade by moving goods from one place to another. For example it moves goods from where they are surplus to where they are scarce.


  1. What is the importance of transportation in business.
  2. How can insurance serve as an aid to trade.

d.         Warehousing: This is concerned with storing goods in safe condition until they are demanded. Warehousing aids commerce because it is the means through which wholesaler keep goods before they are demanded. Therefore, warehousing prevents scarcity of goods.

e.         Advertising: This is the activity that is concerned with informing members of the society that particular good or services exist, their quality and functions. Advertising is an aid to trade because it creates awareness and demand for goods and services.

f.          Communication: This is any form of interaction (i.e. discussion), letter, telephone etc between buyers and sellers with the intentions to sell or buy. An example is a letter of enquiry about the goods available in the warehouse.

g.         Tourism: This covers all the activities which make someone on tour to be comfortable. Examples of activities under tourism are good hotel accommodation, tourists centres, etc. Tourism assists trade because tourists from foreign countries bring foreign currency into our economy.


The roles of custom and excise in foreign trade include;

  1. Collection of various dues like import duties and excise duties.Import duties and excise are money paid for imported goods while excise duties are paid on locally produced goods.
  2. Control the flow of goods in and out of the country.
  3. Collection of information and facts about trade to help planning by the government.
  4. Supervision of bonded warehouses .Bonded warehouses are where imported goods are kept till duties are paid on them.


Mention four roles of custom and excise at foreign trade.


WABP Business Studies for JSS 2 By Egbe Ehiametalor et’al Pg 26-27.


  1. —— is a service provided by media organizations to enable businesses make goods known to the consumers. (a) Advertising (b) Wholesaling (c) Tourism (d) Insurance.
  2. When people leave their house of residence to another place or country on a holiday, it is called (a) Tourism (b) Travelling (c) Communication (d) Banking.
  3. The aid to trade which helps businessmen to cover risks is —– (a) banking (b) insurance (c) transportation (d) warehousing.
  4. ——- is the aid to trade that ensures goods are safely kept until needed (a) insurance (b) banking (c) communication (d) warehousing.
  5. The money paid for locally produced goods is called —– (a) import duty (b) quota (c) licence duty (d) excise duty.


  1. What is trade? b .Mention and explain the forms of trade.
  2. Mention and explain the aids to trade.


  1. List three functions of an office.
  2. Mention and explain the form of trade.
  3. Mention seven aids to trade and explain three.
  4. Mention three roles of custom and excise in foreign trade.
  5. What is Business studies?




  • Definition of market  
  • Types.
  • Career in the capital market
  • Buying and selling.
  • Transactions- cost of sales ,mark up ,turn over, profit and loss.
  • Types/Classification of markets

Market in the ordinary sense, means a place where buyers and sellers meet to transact business.  In economics however, the meaning of market is broader than just a physical location.

A market could be defined as any arrangement whereby buyers and sellers of goods and services are brought into contact with one another for the purpose of transacting business.  This contact could be facilitated by telephone, telegraph, telex internet or any other communication channel. 



Classification according to goods and services sold

  1. Capital Market – for long term capital/loans
    1. Money Market – for short- term loans
    1. Factor Market – for factors of production
    1. Foreign Exchange Market – where foreign currencies are traded
    1. Commodities Market – where primary products especially agricultural and mineral resources are traded such as cocoa, timber, crude oil etc. Finished goods are also traded such as cars, furnitures ,books etc.
    1. Consumer goods market – dealing in consumer goods of various types.
    1. Capital goods market – for machinery plants equipment etc.


This is a financial market for lending and borrowing of long term loans. Money borrowed in a capital market is used to finance capital project. longer-term investment and lending: a financial market involving institutions that deal with securities with a life of more than one year


  1. Development bank
  2. Central bank
  3. Insurance company
  4. Building societies
  5. The stock exchange


This is a financial market for lending and borrowing of short term loans. This market aids all forms of business transactions.


  1. Commercial bank
  2. Discount houses
  3. The central bank

4.      Finance house

5.      Acceptance house



1.      Define capital market.

2.      Mention institutions involved in money market.



1.      Fundamentals of Economics for SSS Page 237 – 245

2.      Comprehensive Economics for SSS Page 195 – 198



1.      The market where long term loans are traded is called —— market (a) commodity (b) capital (c) money (d) foreign exchange.

  • The market where primary products are sold is called ——- market (a) foreign (b) capital (c) money (d) commodity.
  • The market for obtaining short term loans is ——market (a) commodity (b) foreign (c) money (d) capital.
  • The market where the value of one’s country is negotiated against another country’s currency is —— market (a) foreign trade (b) commodity (c) money (d) foreign exchange.
  • The factors of production is traded ——- market (a) commodity (b) capital (c) foreign (d) factor.


  1. Define a market.
  2. Mention three types of market and explain each.




Buying means the acquisition of goods by paying out some money. The process of determining the price at which goods and services will be accepted to both buyers and sellers is called the methods of buying goods. 


  1. Description Method
  2. Sample Method
  3. Auction Method
  4. Inspection Method
  5. Procedures for buying and selling


There are various methods of buying commodities in the market. They can be bought through the following ways:

  1. by description
  2. by Sample
  3. by Auction
  4. by Inspection

Buying By Description Or Grade: Some goods are sold by describing them to the buyers who can determine the quality of the goods bought from past-experience. However, it is better to sell or buy by grades where goods are given grades.  Goods that are given grades or measurement include cocoa, garri, nails e.t.c.

Buying By Sample: In this case, the buyers are shown a part of an exact copy of the goods he/she wishes to buy e.g. textile, coffee, and sugar. The buyer can see or feel the qualities of the sample before purchase.

Buying By Auction: This is where the buyer is allowed to make an offer for goods, without considering the quality. This method of buying is called auction.

In Auction, usually the goods are sold to the person who offers the highest price (i.e. highest bidder). Examples of such goods include unclaimed goods at the port; banks at time auction the properties of its debtors.

Buying By Inspection: This is when the buyers see the actual goods he/she wishes to buy and may even test it e.g. Electronics, radio, television etc displayed in the show room.

Butchers also inspect animals or cows before purchase


  1. List four methods of buying
  2. Explain two methods of buying


Procedures for buying and selling are in two forms:

i.    Cash sales

ii.   Credit sales

Cash sales: for cash sales, payment for goods sold is made immediately. A receipt is issued to the buyer as evidence of payment.

Advantages of cash sales

1.   Cash sales is always available to the seller.

2.   Money is not tied down with the buyer.

3.   No issue of bad debt.

4.   Circulation of money is not stimulated.

5.   Buyers can enjoy cash discount.

Disadvantages of cash sales

1.   There is reduction in sales.

2.   There is no question of deferred payment.

3.   Buyers can only buy what they can afford.


Credit sales are the procedure for buying in which payment for goods bought are made at a later date. It is called deferred payment. Payment may be made within days, weeks or months depending on the agreement between the buyer and the seller. The buyer collects the goods while payment is made later.

Advantages of Credit sales

1.   Increase in sales

2.   Mass production is encouraged because of increase in demand

3.   Increase in profit

4.   Buyers are encouraged to save to pay for goods bought

Disadvantages of credit Sales

1.   It encourages people to live and spend above their limit.

2.   It gives room for covetousness.

3.   It leads to mis-planning and mismanagement.


  1. What is a cash sale?
  2. List and explain the disadvantages of cash sales.


Macmillan JSS2 Business Studies pg 21-22.

Calculation of turnover and net profit




Opening stock                                                 *

+ Purchases                                                     *

+ Carriage inward                                           *



-Returns outward                                            *



-Closing stock                                                 *

Cost of sales   =                                    **

Or simply:


Opening stock                                     *

+ Purchases                                         *  


-closing stock                                      *

Cost of sales                              **


Cost of sales= sales – Gross profit


When profit is expressed as a % of cost price is called mark up.

It is also the relationship between profit and cost of goods. The formula:

Profit    _          

Cost of sales        *      100/1

Mark up is an extra amount added to the direct or variable cost of producing goods to arrive at the selling price of those goods. For example, a 50 percent mark-up on a good with a direct cost of $1.00 would mean that the company would sell the good for $1.50. The mark-up covers indirect and overhead costs as well as profit.


  1. Define mark up
  2. What are the steps in calculating cost of sales


Turnover = cost of sales + Gross profit

It is also known as SALES.


This is the excess of sales over the cost of sale.

Profit = sales – cost of sales

Profit, in business, the monetary difference between the cost of producing and marketing goods or services and the price subsequently received for those goods or services. Profit is an essential competitive feature of buying and selling in the economic system. The opposite of profit is loss, whereby the cost of producing certain goods or services is higher than the price a buyer is willing to pay for them.


  1. What is profit?
  2. Define turnover in terms of commerce and finance.


  1. Turnover is ____________ (a) profit + revenue (b) cost of sales + gross profit (c) cost of purchase + revenue (d) cost of profit + cost of sales.
  2. A market where raw materials and finished goods are bought and sold is —— market. (a)commodity (b).foreign exchange (c) money (d) capital.
  3.  Sales – Gross profit  is equal to ______(a) cost of goods (b) cost of sales (c) revenue (d) cost of profit.
  4. The market where long term loans are traded is —– market (a) money (b) capital (c) commodity (d) foreign exchange.
  5. The market where the value of one’s country is negotiated against another country’s currency is —— market (a) foreign trade (b) commodity (c) money (d) foreign exchange


  1. Mention four types of market and describe each
  2. Mention and explain three methods of market.


  1. Define a market.
  1. Mention three types of market
  2. Explain four methods of buying and selling
  3. What is mark-up?
  4. Define profit.


Distribution: This is the passing out of something or a product over a wide area.


The chain of distribution is made up of channels which goods pass through from the manufacturer before reaching the consumer.

There are basically three different channels of distribution.

  • Direct sales to consumers

PRODUCER    ……………………………………………….  CONSUMER

This diagram illustrates a system in which the producer or manufacturer sells the goods directly to the consumer.

This is common among rural small scale farmers who deals in perishable farm produce such as vegetable, fruits tomato, pepper and poultry farmers who sell eggs.

  • Sales to Consumers through a Retailer


This chain is slightly longer than in (a).  Here the producer sells the goods to the consumer through a retailer. This is common where consumers are scattered and it takes long to reach them. The retailer then becomes the sales agents of the producer. Examples include various distributors who sell goods manufactured by companies in Nigeria, such as soft drinks, detergents, cement, e.t.c.

  • Sales to Consumers through a Wholesaler and Retailer


This is the longest of all the distribution chains. The longer the channel, the higher the final price paid for the goods to the consumer.  Producers will choose this channel when dealing with a large number of customers.


  1. What is direct sales to customers?
  2. Carefully describe chain of distribution.


The channel of production is the means or process through which goods pass from the producer to the consumer.

Manufacturer/producer— Wholesaler — Retailer — Consumer.

The producer/manufacturer: This the individual who creates goods or service.

The wholesaler: This is the trader who buys goods in large quantity from the producer and sells in small quantity to the retailer.

The retailer: This is the trader who buys goods in small quantity from the wholesaler andsells in units or bits to the consumer.

The consumer: A consumer is the end user of goods or services.



Retailing, business activity of selling goods and services directly to consumers. Instead of selling products for resale, a retailer sells goods or services to individuals making purchases for themselves or their families. Some retailing businesses sell a combination of goods and services. For example, an automobile dealership that sells automobiles (goods) may also provide automobile repairs (services).


Specialty store – This offers a limited number of different product lines, such as women’s clothing or sporting goods, but provide their customers with an extensive selection of brands and styles within each product line.

Department store – This features a wide variety of different product lines and a selection of merchandise within each line. These large stores have many separate departments that sell different types of merchandise, making a wide variety of goods available to consumers in one place.


Define channel of distribution.

Functions of each of the channels of distribution

  1. Functions of producers.
  2. Manufacturing of commodities
  3. Sales of goods to the wholesalers
  4. Marketing of newly introduced goods
  5. Creation of utility.

The following are the functions of the wholesaler.

  1.  He buys goods in large quantities from the manufacturer or producer and sells  them in small quantities to the retailer
  2. By buying in large quantities, the wholesaler provides a ready market to the producer.
  3. He provides warehousing facilities thereby relieving manufacturers of the problem of carrying large stock of finished goods and thereby tying up capital.
  4. He helps to ensure that the retailer is supplied with the right varieties and quantities of goods at the right times.
  5. He gives credit  to the retailer
  6. He transports goods to the retailer.
  7.  He helps to advertise the manufacturer’s products.
  8. He helps to keep prices stable by stocking adequate quantities of goods in the warehouse and selling them to the retailers according to demand.


  1. List five functions of the wholesalers.
  2. List and explain three functions of the producer
  • Purchase of goods from the wholesalers
  • Breakdown of bulkiness of goods.
  • They sell in bits to the final consumers.
  • They make production complete.
  • They give credit facilities to customers
  • He advises the consumers
  • Advertisement
  • Provision of after sale service.


List three functions of a retailer.


Macmmillan Business studies JSS 2 by Awoyokun A.A et’al pages 25-26.


  1. Another name for producer is —— (a) users (b) wholesalers (c) manufacturer (d)clients
  2. __________ sells in bulk (a) retailers (b) wholesalers (c) producers (d) consumers
  3. __________ buys in unit (a) retailers (b) producers (c) consumers (d) manufacturer
  4. Another name for an end user of a product is ——– (a) a producer (b) a consumer (c) a wholesaler (d) a retailer.
  5. Who gives credit facility to the consumer? (a) a producer (b) a wholesaler (c) a retailer (d) a consumer.


  1. Explain how wholesalers break bulkiness.
    1. Mention two functions of a producer and wholesaler each.


Licenced chemical vendors:

These are individuals or companies who are permitted by law to sell chemicals to the public. This is usually done outside on the street.

Handling and distribution of chemical: Chemicals are substances that should be handled with care because of their nature. Many chemicals are harmful (corrosive) to human body and are

thereby needed to be handled with utmost care.

Channels for distributing chemicals:

  1. Producer—wholesaler—consumer.
    1. Producer—–consumer. The chemicals must be well packaged before distribution so as to avoid accident.

Effect of wrong handling:

  1. It can lead to damage of body parts.
    1. It can cause crop damage.
    1. It can lead to food poisoning.
    1. It can lead to death.

Production of all goods and services ends when goods get to the final consumer.


What are the effects of handling chemicals wrongly?

When production ends

Production of goods and services is said to have ended when the goods or services produced have reached the hands of the ultimate consumer.

The producer manufactures goods so as to meet the needs of the consumer. Therefore, when the consumer buys the goods and makes use of the products, it is only then that we can say that production has ended.

Reading Assignment: Macmillan Business Studies by Egbe Ehiametalor et’al bk 2 pg 57


  1. One of the following is not an effect of wrong handling of chemical. (a) It leads to death (b) it causes body damage.(c) It may cause hunger (d) It can damage crops.Who creates utility? (a) retailers (b) manufacturer (c) wholesalers (d) producers.Production of goods ends when (a) goods are produced (b) raw materials are purchased (c) goods reach final users (d) goods are packagedChemicals are corrosive means (a) chemicals are harmless (b) chemicals are consumable (c) chemicals are harmful (d) chemicals are good.Licensed chemical vendors are permitted to (a) buy chemicals (b) sell chemicals (c) distribute chemicals (d) hoard chemicals.


  1. Mention three effect of wrong handling of chemicals.
  2. When is production said to have ended?


  1. What other name do we call a producer?
  2. Mention two effects of handling chemical in a wrong way.
  3. What do we mean by channel of production?
  4. Mention four functions of a producer.
  5. Explain buying by auction.




  • Definition (Commercial bank).
  • Banking Services
  • Ethical issues in banking.


A bank is a financial institution meant for safe keeping of money, valuables and lending of money to customers.

A broader definition of a bank is any financial institution that receives, collects, transfers, pays, exchanges, lends, invests, or safeguards money for its customers. This broader definition includes many other financial institutions that are not usually thought of as banks but which nevertheless provide one or more of these broadly defined banking services. These institutions include finance companies, investment companies, investment banks, insurance companies, pension funds, security brokers and dealers, mortgage companies, and real estate investment trusts.


This is a financial institution which engage in safe keeping of money, valuables, granting of credit facilities to her customers and also carryout commercial activities on behalf of her customers. E.g – Zenith bank, oceanic bank, UBA, GTbank, etc.

Commercial banks are so named because they specialize in loans to commercial and industrial businesses. Commercial banks are owned by private investors, called stockholders, or by companies called bank holding companies. The vast majority of commercial banks are owned by bank holding companies. (A holding company is a corporation that exists only to hold shares in another company.)


  1. Define bank.
  2. List the types of banks you know.


  1. Current Account: A commercial bank keeps a current account on behalf of its customers. Cash can be withdrawn frequently. The owners of a current account make demand by issuing a cheque.
  2. Accepting deposit : The bank accepts deposits into the account of the customers. Deposits can also be in form of certificates, jewelries, wills and other valuables.
  3. Withdrawal of money: Money can be withdrawn from the commercial bank on demand by the authorized signatory to the account.
  4. Fixed deposit account: This is a special form of account where money not immediately needed is kept for a specified period of time.
  5. Saving account: Small income earners tend to use savings account. Money kept attracts smaller interest rate compared to a fixed deposit account.

Other services of commercial banks:

  1. Overdrafts and loans: An overdraft is an informal way of getting loan from the bank. The difference between overdrafts and loan is that interest is not paid on overdraft within a period of time.
    1. Issuance of traveller’s cheque: A commercial bank issues traveller’s cheque which is acceptable internationally as an exchange for cash.
    1. Foreign exchange: The bank helps individuals or businesses to process the foreign exchange forms. It also helps in the transfer of money.
    1. Safeguarding of valuables: It provides a service to individuals to keep valuables.
  2. Trustees/Registrar: Act as trustee in the administration of a person’s estate on their behalf even when they are dead or alive.


The following are some of the ethics that can guide the banks to do their work well.

  1. Banks should keep all financial matters of individuals confidential.
    1. Bank officials must keep customers’ account accurate.
  2. Officials of bank must avoid stealing from the bank.
  3. Bank clerks must not steal from customers.
  4. Banks must follow government regulations.
  5. Banks should not give false report to the government.
  6. There should be no cover up of customers’ financial crime.
  7. All documents relating to criminal activities must be made available to the appropriate government agencies when demanded.


Mention three bank services to individuals and businesses.


WABP Business Studies bk 2 by Egbe Ehiametalor et’al pg 59-61.


  1. One of these is not one of the services of a commercial bank (a) passive account (b) current account (c) fixed deposit account (d) accepting deposit.
    1. Current account uses —— on withdrawal of money.(a) pass book (b) cheque book (c) payslip (d) pay roll.
  2. How many types of consumer loans do we have? (a) 3 (b) 5 (c) 2 (d) 4
  3. ___________is not a function of a bank (a) safe keeping of money. (b) Granting of loan to customers (c) safe keeping of valuables. (d) granting of visa.
  4. The following are types of deposit except (a) demand (b) hybrid (c) time (d) medium


  1. Mention three banking services.
    1. Mention three ethical issues in banking.


  1. Mention types of bank we have.
    1. How many consonants do we have in shorthand?
      1. How many vowels do we have in shorthand?
      1. Mention four functions of a bank.
  2. Mention three qualities of a receptionist.

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