Marking guide for business studies j. S. S 1
Drawer: this is the owner of the account who writes or issues the cheque. Drawee
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BUSINESS STUDIES 1ST TERM EXAM
| Drawer: this is the owner of the account who writes or issues the cheque.
Drawee: this is the bank that is paying the amount stated on the cheque. Payee: this the person to whom the amount is to be paid. 3c. There are two types of cheque namely: open and crossed cheque. Open cheque: this is a cheque that is not crossed and can be cashed over the counter. It is payable to anyone bearing the cheque and can be very risky if stolen or gets into the wrong hand. Crossed cheque: this has two parallel lines drawn across its face and cannot be cashed over the counter. it is paid into the account of the person named on the cheque. It is very safe. 4a. commerce is that part of business which is concerned with the exchange of goods and services, including all those activities which directly or indirectly facilitate that exchange. Such activities includes: banking, warehousing, advertising, transportation etc. 4b. i. Commerce unites the whole world: commerce has made it possible for individuals to buy anything from any part of the world. This helps to promote unity and enable us to satisfy our numerous wants. Exchange of goods and services is made possible as no country can produce all its needs: this has helped countries to increase their national income and wealth. It generates employments opportunities: the growth of commerce, industry and trade brought about growth in agencies such as banking, transport, advertising etc. these agencies need people to look after their functioning. It improves standard of living: commerce helps us to get what we want at the right time, place and price, thus increasing the standard of living. Commerce creates awareness for goods and services through advertising. 4c. warehousing: this helps producers to in storing goods overtime before they are distributed or sold. Download 94.5 Kb. Share with your friends:
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