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 SIX

TOPIC: MARKET

CONTENT

• 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. 

TYPES OF MARKET

Classification according to goods and services sold

1. Capital Market – for long term capital/loans
2. Money Market – for short- term loans
3. Factor Market – for factors of production
4. Foreign Exchange Market – where foreign currencies are traded
5. 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.
6. Consumer goods market – dealing in consumer goods of various types.
7. Capital goods market – for machinery plants equipment etc.

CAPITAL MARKET

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

INSTITUTIONS INVOLVED IN THE CAPITAL MARKET

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

MONEY MARKET

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

INSTITUTIONS INVOLVED IN THE MONEY MARKET

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

4. Finance house

5. Acceptance house

EVALUATION

1. Define capital market.

2. Mention institutions involved in money market.

READING ASSIGNMENT

1. Fundamentals of Economics for SSS Page 237 - 245

2. Comprehensive Economics for SSS Page 195 – 198

WEEKEND ASSIGNMENT

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

2. The market where primary products are sold is called ------- market (a) foreign (b) capital (c) money (d) commodity.

3. The market for obtaining short term loans is ------market (a) commodity (b) foreign (c) money (d) capital.

4. 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.

5. The factors of production is traded ------- market (a) commodity (b) capital (c) foreign (d) factor.

THEORY

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