What is Turn over

This is the the total net sale during a period of time .It is calculated as the total gross sales of a business less returns inwards. Formula=sales-returns inwards

Rate of turnover: This is the rate (number of times) stocks are replaced during a given period .Rate of turnover is the speed at which stock change hands within a certain period.

Formula =cost of goods sold/average stock

Average stock=opening stock +closing stock/2

FACTORS AFFECTING TURNOVER

1. Price of goods

2Granting of discounts

3. Provision of credit facilities
4. The location of goods
5. Types of goods.
6. The variety of goods made available by the seller
7. Goodwill and reputation of the seller
8. Advertising strategy
9. Availability of goods.

CLASS ACTIVITY:

A company has an authorized share capital of #450000.It offered #200000 for subscription .The Company was able to collect #75000.

Required: Calculate the

1. Nominal capital
2. Issued capital
3. Un-issued capital
4. Paid up capital

GROSS PROFIT PERCENTAGE:

Gross profit/salesx100

NET PROFIT PERCENTAGE:

Net profit/salesx100

RETURNS ON CAPITAL EMPLOYED

Profit/capital employedx100

EXPENSES TO SALES

Expenses/salesx100

LIQUIDITY RATIO: The ratio helps in measuring the ability of the firm in meeting its obligation when they are due.

1. Current or working capital ratio

Current assets/current liabilities

1. Liquid or acid ratio

Current assets –stock/current liabilities

1. debtor’s ratio

Debtors/credit salesx365days

D .creditors ratio=creditor/credit purchasesx365days

WEEK 9 COMMUNICATION

DEFINITION:

This is the process by which thoughts, messages, facts, and information are transferred from one person to another in an organization using a language code jointly understood by all the parties involved in the communication process with a view to achieve desired feedback

PRINCIPLES OF EFFECTIVE COMMUNICATION

1. Completeness: All information that is required to produce the entire effect of the message should be provided

2 .clarity: one of the principles of effective communication is that, it should be clearly presented.

3. Concreteness: Abstract and vague use of words is not acceptable.
4. Correctness: Information should be accurate and authentic
5. Timely: It is necessary to deliver message according to dictates of time.

IMPORTANCE OF COMMUNICATION TO COMMERCE

1. Quick dissemination of information
2. Facilitates payment.
3. Advertisement of goods and services
4. Facilitates international trade
5. Risk and cost reduction

6 .Settlement of international debt through international banking

7. Improvement in trade.
8. Facilitates air and sea transport
9. Enhances home delivery services
10. Ensures quick delivery of documents.

BARRIERS TO EFFECTIVE COMMUNICATION

1. lack of interest
2. Information overload
3. lack of knowledge
4. Misunderstanding
5. Distrust.

TRADITIONAL MEANS OF COMMUNICATION

There are various traditional means of conveying information in Nigeria .It varies from place to place the major means are;

Talking drum

Town crier

Metal gong

Flute

Trumpets

Palm fronds

Blast of gun

NIGERIAN POSTAL SERVICES

The Nigerian postal services department known as NIPOST was established to provide postal and payment services to the people .NIPOST performs the following functions.

FUNCTIONS OF A POST OFFICE AS A MEANS OF COMMUNICATION

1. Ordinary letters: These are official or personal letters, which must be enclosed inside envelopes and appropriate stamps affixed on them. They are posted by placing in a postal box and are suitable for less valuable items. They can be sent by road or air.

2 Registered letters: These are letters registered with the post office upon payment of a fee. It enables letters to be safe and secure .This requires extra cost over ordinary letters.

Note: Registered letters are handed over to the postmasters at the counter and receipts are obtained

3. Parcel post: Parcels up to specified weights are delivered and dispatched through the post office.
4. Poster restante: This is a service provided by the post office, which enables travelers, especially businessmen without fixed address to receive their corresponding wherever they travelled to transact business.
5. Recorded delivery: This is provided by the post office when letters or parcels are sent through them and receipts are given as evidence or proof of delivery.
6. Business reply service: Potential buyers are able to respond to business advertisement by post without paying for postage .The firm will supply them with printed reply cards and licenses to do so must be obtained from the post office.
7. Provision of letter boxes and private mailbags: Individuals and companies can obtain letter boxes or private mailbags from where they can collect their letters and documents at any time.
8. Provision of franking machine: Franking machine are used to facilitate the stamping of letters and postage fees have to be prepaid .Envelopes are franked , that is ,stamp impressions are used on envelopes. It avoids the use of normal postage stamps.

FUNCTIONS OF A POST OFFICE AS A MEANS OF PAYMENT.

1. Cash on delivery: It is used to assist mail order business .Cash on delivery enables cash to be collected immediately goods or parcels are delivered to the buyer’s .The cash collected is remitted to the seller of the goods.
2. Postage stamps: Stamps are affixed on the letters or parcels .They are sold at the post office .They are also occasionally used to settle small amount of payment by post such as catalogue.
3. Postal orders: Is a means of payment provided by the post office , which are available in various denominations and are used to settle small debts .poundage or commission are paid on each postal order purchased .
4. Money order: This is a means of payment provided by the post office for people wishing to transmit sums of money. It provides a useful means whereby a sum of money can be sent by post to a person who has no current account with a bank
5. Telegraphic money Order: Sometimes money order can be dispatched by telegraph. In this case, an addition fee is paid .It is a means of by which a sum of money can be expeditiously sent from one place to another.
6. Sales of forms: Post office sell forms for examination bodies like JAMB, WAEC AND NECO.

NIGERIAN TELECOMMUNICATION LIMITED (NITEL)

The Nigerian Telecommunication limited was established to provide the following services; telephone, telex, telegram and satellites e.t.c.As a result of the privatization policy of the government, NITEL has been sold to transcorp PLC

1. Telephone Services: This service enables businessmen and others to send verbal messages across to their customers and relations instantly wherever they may be in the whole world.
2. Telegram services :These are messages sent by telegraph and then printed and given to somebody.It enables written messages to be sent quickly from one place to another. It is more costly than the normal telephone service
3. Telex services: This is a service which enables users to transmit and receive printed messages over telecom line. It makes use of teleprinters to send messages from one subscriber to another at any time of the day or night even after an office has closed.
4. Fax services: This involves the transmission of data exact duplicate copies of the document. The original documents is fed into the fax machine, which needs it and converts it into electronics form so that it can be transmitted over the telecommunication line.
5. Global system of Mobile Telecommunication: NITEL provides mobile telecommunication services through Mtel.Other companies providing G.S.M services are M.T.N, Globacom and AIRTEL.
6. Transmission through satellites: NITEL provides satellites for life transmission of events.