Lesson Notes By Weeks and Term - Junior Secondary School 2

FIRST TERM

SUBJECT: BUSINESS STUDIES 

CLASS: JSS 2

REFERENCES:

• 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.

WEEK FIVE

TOPIC: AIDS TO TRADE

CONTENT

• 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. 

THE AIDS TO TRADE

These aids to trade are:

1. Insurance 
2. Banking
3. Transportation
4. Warehousing
5. Advertising
6. Communication and 
7. Tourism

FUNCTIONS OF AIDS TO TRADE

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

1. Insurance: Insurance covers risks. It is an aid to trade because it encourages business men to take risky business ventures.
2. 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.
3. 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.

EVALUATION 

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

1. 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.
2. 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.
3. 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.
4. 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.

ROLES OFCUSTOM AND EXCISE AT FOREIGN TRADE

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.

EVALUATION

Mention four roles of custom and excise at foreign trade.

READING ASSIGNMENT

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

WEEKEND ASSIGNMENT

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.

THEORY

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

GENERAL EVALUATION

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?