SUBJECT: BUSINESS STUDIES

CLASS: JSS 1
FIRST TERM
INTRODUCTION TO BUSINESS STUDIES
Business can be defined as any activity performed or service rendered which provides
goods and services to satisfy human needs and desire. Every business activity must be
legal and must bring a reward or profit. Goods can either be tangible or intangible. A
tangible good are goods that can be seen or touched e.g. Pencil, book etc while
intangible goods are goods or services that cannot be seen or touched. E.g Services of a
teacher, lawyer, doctor etc.
Business Studies can be defined as the study of all human efforts and activity directed
towards the development or satisfaction of human needs and development of a nation
through production of goods and services.
Importance of business studies
1. It teaches how to start and operate a business.
2. It teaches how an office function
3. It provide opportunity for self employment
4. It provide opportunity for making better investment decisions
5. It teaches different forms of business ownership
6. It teaches how to keep proper record of business transaction.
7. It helps in appropriate career selection
Components of business studies
The various parts that form the subject of study in business studies are;
i. Book keeping
ii. Commerce
iii. Keyboarding
iv. Office practice
v. Shorthand
Career opportunities in business studies
Career can be defined as occupation or profession that one can do to earn a living. The
study of business opens door for any of the following;
 - Entrepreneur
- Secretary
- Accountant
- Banker
- Administrator
- Economist
- Marketer etc

OFFICE
An office can be defined as a place in an organization where all sorts of clerical activities
are carried out. The following are examples of clerical works;
- Sorting of mails
- Sorting and retrieval of documents
- Report writing
- Preparing correspondence
- Typing
- Dictating
- Recording information
- Telephoning
Types of office
1. Small Office: also known as closed office is the type of office that has limited
volume of clerical works. It consists of one to ten persons. It can be seen in small
business outfits. In a small office, it is possible to have only one clerical worker
since the volume of work is small. examples of small office; principal’s office, vice
principal’s office, manager’s office, directors office cobblers shop etc
Advantages of small office
i. The worker do wide variety of duties
ii. The learn more about the functions of the organization
iii. The owner shares close relationship with the workers and customers because
he/she is involved in the day to day running of the business
Disadvantages of small office
i. The employer may not be able to provide social/ welfare amenities eg
canteen
 ii. Payment of salaries and wages sometimes depend on the volume of work
performed.

2. Large office: this can be found in big organizations with ten workers and above.
The volume of work is usually high and clerical activities are shared among many
clerical workers. A large office contains many officers doing specialized work.
Examples of large office; bank, NNPC, NAFDAC etc

Advantages of large office

i. Workers enjoy team work
ii. It can develop the ability and skill of the worker by sending them to training
and workshops
iii. It can provide welfare and social services
Disadvantages of large office
i. Workers have limited experience of other jobs than the once they regularly do
ii. There could be risk of fraud which may affect the revenue of the organization

Different offices in an organization

There are different offices in an organization depending on the work done there are
1. Administrative office
2. Principals office
3. Bursars office
4. Head teachers office
5. Staff office
6. Guidance and counseling office
7. General office
All offices whether large or small perform the same type of function
Functions of an office
1. Giving information
2. Receiving information
3. Recording information
4. Arranging information
5. Processing information
6. Storing information
 7. Safeguarding

THE OFFICE STAFF

A clerical staff is one who performs the functions of an office, i.e receiving information,
recording information, arranging information, giving out information and safeguarding
information in an organization.
Functions of a clerical staff
A clerical staff should do more serious job like writing office letters to other
organization, private or public as directed by a superior officer, treatment of mail on
staff matters e.t.c.
Some of the functions of a clerical staff are as follows;
1. Dispatching mails within and outside the organization.
2. Receiving of incoming mails.
3. Receiving and making phone calls.
4. Recording file movements.
5. Distributes internal document.
6. Keeping file in view and bringing them up when necessary.
Qualities of a clerical staff
The qualities of a clerical staff can be divided into two;
a. Personal qualities:

1. He/she must possess the basic required educational qualification.

2. Must be intelligent.
3. Must be honest and reliable.
4. Must be polite and cheerful.
5. Must be smart.

b. Job qualities:

1. Must be punctual
2. Ability to communicate with others
3. Must be hardworking
4. Ability to respond to requires
 5. Must be time conscious
6. Must be neat
7. Must have self control.

COFIDENTIALITY OF OFFICE INFORMATION.

Confidentiality can be defined as a situation in which important office information are
kept secret. It is the act of not leaking important information to someone who has no
business with the organization. It is therefore important that office staff must not leak
the secret of his/her organization to another organization or even to a friend who is not
working in that organization. He/ she must keep official information secret
Difference between public office information and confidential office information.
Public office information can be given with or without a request for it, while confidential
office information cannot be given without the approval of the head of the institution or
organization. Confidential information includes;
- Food recipe
- Account statement
- Medical history
- Personal goal
- Bank information
- Contact details
- Family record
- Contract document
Reasons for confidentiality
1. To protect the office from fraud
2. To protect the office from being robbed
3. To safeguard the document from unauthorized persons
4. To prevent competitors of the organization from knowing the secret of the
organization.
Right Attitude to Work
Work is defined as any activity that a person is engaged in to earn a living.
Attitude means the feeling and thought an individual has towards someone or
something.
A right attitude to work therefore means a positive state of mind that an individual
develops towards his work in an organization. A worker who develop the right attitude
to work can easily be identified through his/her punctuality and regularity at work.
Punctuality is the act of being at one’s place of duty or work at the time required by the
employer.
Regularity refers to being at one’s duty post every working day.
Attributes of punctuality and regularity
1. Commitment: this is the ability and willingness to give one’s energy and time to a
job.
2. Interest: this refers to a kind of feeling that is developed towards what one likes
3. Promptness: refers to executing a task or duty without delay
4. Consistency: maintaining a standard of behavior, opinion for a long time.
5. Self motivation: this is a form of in-built attitude that does not depend on any
external factor.
6. Reward: refers to anything given in recognition of service, effort or achievement.
7. Sanction: means a threatened penalty for disobeying a law or rule.
Importance of punctuality and regularity
1. Promotion
2. Respect
3. Organization
4. Productivity
5. Reduction of stress
Consequences of lateness and irregularity
1. Neglect
2. Fine
3. Stress at work
4. Ineffectiveness
5. Sack

DEVOTION TO DUTY
Devotion to duty means having strong commitment of time and resources towards work
or duty in an organization. It is one of the major factors that determine the growth and
development of an organization.
Attributes of devotion to duty
1. Punctuality
2. Promptness
3. Hardworking
4. Commitment.
Effects of devotion to duty
1. It improves the productivity of an individual
2. It improves the overall productivity of the organization
3. It leads to the growth and development of the organization
4. It helps an organization to achieve its aims and objectives

DEPARTMENTS IN AN ORGANISATION
A department is one of the divisions in an organization.
Various departments in an organization
1. Administrative department
2. Account department
3. Sales department
4. Personnel department
5. Planning department
6. Transportation/ or transport department
7. Purchasing department

Function of the various department

1. Administration department: this dept is responsible for the general
running of the organization’s affair. It is the live-wire of every
organization. The head of this department is called and administrator
or administration manager.
2. Account department: the account department keeps records of all
financial transactions in the organization. It is responsible for preparing
and paying salaries and wages for workers, receives all payment made
to an organization. The head of the account department is called the
chief accountant or the bursar.
 3. Sales department: this department is responsible for selling the
product of the organization. The head of sales department is called the
sales manager.
4. Personnel department: this department is responsible for staff
recruitment, training, promotion, discipline and other matters relating
to staff welfare. The head of this department is called the personnel
manager.
5. Planning department: the department is responsible for planning the
activities of the organization. This department also conducts research
into areas that will improve the business activities of an organization.
This department is also called the research and development
department. The head of this department is called the planning
manager.
6. Transport department: the transport department is responsible for the
movement of goods and people in and out of the organization. The
head of this department is called the transport manager.
7. Production department: this department is responsible for the
manufacturing of goods. It turns raw materials into finished goods. The
head of this department is called production manager
8. Purchasing department: the purchasing department is responsible for
the buying of the material and equipment needed in the organization.
The head of this department is called purchasing manager

INTRODUCTION TO COMMERCE
Commerce can be defined as all activities involved in buying and selling and distribution
of goods and services through the assistance of the activities that aid trade. These
activities include: advertising, communication, banking, insurance, warehousing,
transport, tourism
Importance of commerce
1. Provision of employment
2. It brings about exchange of goods and services
3. It increases the standard of living
4. It benefits underdeveloped countries
5. It links producers and consumers
6. Commerce helps a country to grow faster
Activities that aid trade
1. Advertising: this is a process of creating awareness about the
availability of a product to the public
2. Communication: this is a means by which information is passed
from one person to another for easy interaction.
3. Banking: banks deals with financing of trade activities. banks
keep money and other valuables and also make funds available
for business transaction
4. Insurance: can be defined as the provision made for the
protection of person or property against risk
5. Tourism: tourism encourages investment and boost commercial
activities, thereby providing economic growth and
development internationally
6. Transport: this helps in the movement of people and goods
from one place to another
7. Warehousing: this is the process of storing goods until they are
needed. A warehouse is a place where goods are kept for
future use.

DIVISION OF COMMERCE
Commercial activities are the life blood of a country economic system. It includes all the
process which makes it possible for the distribution and exchange of goods and services
for the satisfaction of the people.
The diagram below shows the divisions of commerce
Commerce
Trade aids to trade
Home trade Foreign trade banking
Manufacturer import export entrepot Transportation
Wholesaler Communication
Retailer Advertising
Consumer Warehousing
Insurance
 Tourism
Trade is the act of buying and selling of goods and services.
1. Home trade.
2. Foreign trade
Home trade: home trade is the buying and selling of goods and services within a
particular country. For example: trade between firms in Enugu state and Lagos state.
Home trade is also called domestic or internal trade.
There are many channels which facilitate home trade. They are:
1. Manufacturer.
2. Wholesaler.
3. Retailer.
4. Consumer.
Manufacturer: this manufacturer converts raw goods to finished goods.
Wholesaler: the wholesaler is a trader that buys goods in large quantity from the
manufacturer and sells in small quantity to the retailer.
Retailer: a retailer is a trader who buys goods from the wholesaler in small
quantity for resale to the consumers. The retailer breaks the bulk.
Consumer: the consumer is the final link in the distribution chain. The product
produce is often consumed by the consumer.
FOREIGN TRADE
Foreign trade involves the exchange, buying and selling of goods and services
between two or more countries. It is also referred to as international trade or
external trade. e. g of this type of foreign trade is a trade between Nigeria and
china, America or South Africa.
There are three types of trade
1. Export trade: This involves the sales of goods and services of one country
to another country; for examples; Nigeria exports cocoa ,crude oil, rubber,
palm oil and groundnut to China, America e .t .c .
2. Import trade: This is the process of purchasing goods and services from
other countries. Eg; Nigeria import rice, electronics, cars, computers from
other countries.
 3. Entre pot trade: is the re-exporting of goods imported from one country to
another country without adding any value to it. Eg; Nigeria importing cars
from Germany and exporting to Ghana to sell.

PRODUCTION
Production can be defined as the process by which raw materials are converted
into semi-finished or finished goods to satisfy human wants.
Production does not only involve making goods available; it also include provision
of services. For example, the teachers, cobblers, drivers, nurses, bankers do not
produce goods but they are called producers because they render services to
satisfy human wants.

Types of production
1. Primary production: primary production involves the digging or extraction
of raw materials from the ground. Examples of industries or activities under
primary production are mining, agriculture, quarrying, farming etc
2. Secondary production: this involves making or processing of raw material
into semi-finished or finished goods. Example: crude oil is processed into
finished goods like kerosene; fuel etc. rubber is processed into tyre and
tubes.
3. Tertiary production: this deals with the provision of services to people.
Example are barbing, teaching, medical services etc

Factors of production
There are four factors of production. They are:
1. Land
2. Labour
3. Capital
4. entrepreneur

HONESTY IN BUSINESS
Honesty in business is referred to as the ability of the parties involved in a
business transaction to always do things right at the stipulated time, such as
making goods available at the appropriate time and producing according to
specification so that the end users (consumers) can derive the expected
satisfaction and have value for their money.
Truthfulness is a quality exhibited by a person who tells the truth all the time
even if it will put him or her into trouble.
Attributes of truthfulness
1. transparency
2. steadfastness
3. straightforwardness

Factors that make people to lie

1. to avoid shame and cover up bad behavior
2. lack of discipline
3. to survive in business where there is competition
4. to deceive people and cover up one’s weakness
Reward of truthfulness
1. Promotion
2. Peace of mind
3. A truthful person has a good reputation
4. A truthful person is always respected
Consequences of not being truthful
1. Shame
2. Business failure
3. Marital failure
4. Arrest by security agent
5. Unemployment
6. Leadership failure
7. Separation from good friends
 8. Bankruptcy
Fair play
Fair play in business is regarded as a situation whereby things are done according
to the rules of the organization without cheating and exploitation. In this
situation, every employee is given equal treatment and nobody is given an undue
advantage over others. For example, jobs and opportunities are not given to
people because of friendship but according to their abilities and skills.
Attributes of fair play
1. Equity

2. Impartiality
3. Openness
4. Truthfulness
5. Straightforwardness.