Trade, money and a small business
Business Studies · BECE · JSS (BECE)
What you need to know
- Trade is buying and selling. Home trade is inside the country; foreign trade crosses a border.
- Aids to trade: transport, warehousing, banking, insurance, advertising, communication.
- A sole trader owns everything and owes everything (unlimited liability). Simple to start, hard to grow.
- A bank current account is for frequent payments; a savings account earns interest.
- Profit = selling price − cost. A loss is the other way round. Keep a simple cash book.
- Consumer rights: safety, information, choice, to be heard. NAFDAC, SON and FCCPC are names worth knowing.
The mistake to avoid
Turnover is total sales, not profit. A shop can have huge turnover and still make a loss if costs are higher.