Commerce

ContentsPrefaceAcknowledgments1 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 Production2 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 Index