COMMERCIAL STUDIES 7100 SCHEME OF WORK YEAR 10 [EXPRESS] for SPN-21
ELEMENTS OF COMMERCE - PART 2
Topic 9: WAREHOUSING
Suggested time frame: 3 weeks
SUB-TOPICS
9. WAREHOUSING
9.1 Role of warehousing.
• Warehousing functions and its
importance to trade.
• Link with seasonal production,
demand and price stability.
9.2 Types of warehouse.
• Bonded; cold storage; cash and
carry; large scale retailers’
regional distribution centres;
manufacturers’ and retailers’.
• Main features of each type of
warehouse.
• Importance of each in either
home or international trade.
OBJECTIVES SUGGESTED TEACHING ACTIVITIES
At the end of the lessons, students
Activity 1: Identify the importance of
should be able to:
warehousing.
o Define the role of warehousing Shows the importance of warehousing especially to
in trade. seasonal products and its role in stabilizing the price of
such products.
o Explain the general
For example;
functions/importance of
warehousing to traders.
1. Explain how warehousing assists seasonal
products like rice and wheat to be available
o Recognize the types of
throughout the year.
warehousing.
2. Explain how warehousing helps in price stability
o Explain the importance of of goods.
warehousing to:
 Manufacturer
Activity 2: Manufacturers, wholesalers and large-
 Wholesaler scale retailers have their own reasons for having a
 Large-scale retailer warehouse.
o Explain the importance of These three traders; manufacturer, wholesaler and large-
bonded warehouses to: scale retailer need warehousing to store their respective
goods. Show different reasons for each of them.
 Exporters
 Importers For example;
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1. Explain why the following traders need a
warehouse for their goods:

i. Manufacturer
ii. Wholesalers
iii. Large-scale retailer

2. Bonded warehouses are important for foreign

traders, i.e. exporters and importers. Explain why.

Activity 3: Recognize the types of warehousing.

Bonded warehouse and cash and carry warehouse are

among the types of warehousing. Show the importance of
these two warehouses.

For example;

1. Mable Enterprise is an importer. The business is

importing construction products, like tiles, toilet
bowls and roofs. Explain how bonded warehouses
assist his business.

2. Cash and carry warehouses are normally owned

by a manufacturer and wholesaler. How does this
warehouse help small-scale retailers in their
businesses?

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 Topic 10: INSURANCE

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

10. INSURANCE At the end of the lessons, students

Activity 1: Traders need insurance cover.
should be able to:
10.1 Purposes of Insurance.
Show how an insurance agency helps traders in covering
 Understand the purposes of against any insurable risks on their businesses.
• Examples; compensation, insurance to a trader/business.
financial protection, business For example;
confidence, investment.
 know the idea of pooling of
risks to the insurance 1. How Company A benefits from covering his
• The importance of pooling of business against fire?
risk. company.

 Identify the insurable and non-

10.2 Business and personal risks.
• Types of risks.
• Examples of insurable and non-
insurable risks.
• Risks to international traders.
10.3 Insurance principles.
• Indemnity.
• Insurable interest.
insurable risks.
 Identify the risks that might be
faced to international traders.
 Explain with examples the
principles of insurance.
 Recognize the procedures of
taking insurance.
 Briefly explain the following
Activity 2: Identify insurable risks and non-
insurable risks.
Not all risks are protected by the insurance agency. Show
why some risks are insured and some are not.
For example;
1. Mr. X is a sole trader. His business is not doing so
well recently. He has a problem with managing the
business.
(a) Why is an insurance company unable to protect
the risk of bad management of Mr. X?

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 documents: -
• Utmost good faith.
• Proposal form
• Proximate cause • Cover form
• Policy cover
(b) Mr. X could insure his business against fire and
theft. Why could an insurance company protect such
risks?

10.4 Effecting insurance cover. Activity 3: Risks faced by home traders and
 Know factors to determine the
rate of insurance premium. international traders.
• Outline of procedures, including
premiums. Shows students the risks that might be encountered by
 Know the procedures for home traders and international traders.
• Main documents: proposal form, claiming the insurance.
cover note, policy. Key
information and purposes of For example;
each.
1. Davy Enterprise is a shipping company. Their
• The role of an insurance broker. business is dealing with shipping the exporters’ and
importers’ goods. Identify and briefly explain the
risks that they might face.
10.5 Statistical basis of
insurance. 2. Dahlia Sdn Bhd is a local factory. They supply
spices products to the local market. Identify and
• The pooling of risk factors briefly explain the risks that they might encounter.
influencing the level of
insurance premium.
Activity 4: Insurance with idea of pooling risks.
• Calculation of premium and
evaluation of insurance Shows students that insurance business is not like an
quotation. ordinary business of selling goods and provides services,
like air-cut and dress- maker. Insurance rests on the idea of
pooling risks.
10.6 Effecting a claim.
For example;
• Outline of procedures, including
claim form. 1. Insurance business is about pooling of risks. It is
related to the payment of the insurance premium.

(a) Explain the idea of pooling of risk.

(b) How does pooling of risk influence the level of the

insurance premium?

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 Activity 5: Insurance and rules/principles.

In order for people to insure themselves with the insurance

company, they must follow the principles of insurance. This
is for the benefits of both parties; an insurer and an insured.

For example;

1. Utmost good faith, indemnity and insurable

interest are the three basic of insurance principles.

(a) Why utmost good is faith necessary when Mr. X

wanted to insure his jewelllery shop against robbery?

(b) How might insurance principle of indemnity apply

to a fire insurance policy?

Activity 6: Important documents of Insurance.

Show the examples of documents, which are used by the

insurance company, such as proposal form, policy cover,
cover note and an insurance prospectus.

For example;

1. Explain briefly the following insurance documents.

i. Proposal form
ii. Policy cover
iii. Cover note

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 Topic 11: INTERNATIONAL TRADE

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

11. INTERNATIONAL TRADE At the end of the lessons, students

Activity 1: A country needs international trade.
should be able to:
11.1 The importance of
International trade is very important for a country to involve
International trade.
• Understand the benefits/ in. Image if a country does not want to open its economy to
advantages of international trade with other countries.
• Benefits of international trade trade to a country.
to a country.
For example:
• The interdependence of
countries within a global • Recognize the following terms
in international trade:- 1. How does international trade benefit the
market. government and the people of a country?
• Imports, exports, visible and
invisible trade. • Import trade
2. Why does a country have to import goods when at
• Export trade
the same time, it produces such imported goods?
• Invisible import trade
11.2 Balance of Trade and • Invisible export trade
Balance of Payments.
Activity 2: Terms of International Trade.
• Understand the idea of

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• Distinction between balance of balance of trade and balance These terms are important for the calculation and
trade and balance of payments. of payments. interpretation of statistics relating to international trade.

For example:
• Calculation and interpretation • Distinguish between the
of statistics relating to balance of trade and balance
international trade e.g. balance 1. (a) (Set questions on calculation). Calculate the
of payments.
of trade and balance of table given in fig. 1.
payments from given figures.
• Calculate the balance of trade (b) What do the following terms mean?
11.3 Customs Authorities. and balance of payments from i. Balance of Trade deficit
given figures. ii. Adverse Invisible Balance
• Main functions e.g. collection of
duties, collection of trade • Interpret the statistics from (c) Distinguish between the Balance of Trade and the
statistics. Balance of Payments.
given figures of balance of
trade.
• Supervision of bonded (d) If a country has a balance of Payments surplus, how
warehouses. does the country work out this surplus?
• Explain the main functions of
customs authorities.
11.4 Trading blocs. (e) If a country has a balance of payments deficit,
• Identify different kinds of explain how would she solve the deficit?
• E.g. ASEAN, European Union, trading blocs.
SADC.
• Describe the main features Activity 3: Trading Blocs. Their advantages and
• Main features and aims of a and aims of a trading bloc. disadvantages
trading bloc.
• Advantages and disadvantages A country needs to belong to a certain trading groups. This is
of joining a trading bloc. • Explain the advantages and for its benefits in terms of economic and political links.
disadvantages of joining a
11.5 Free trade and trading bloc. A little thought for the students; If a country is in a chaotic
protectionism. situation and at the same time is independent i.e. does not
• State the importance of free belong to any trading blocs. What would happen to this
• Importance of freeports in ports in international trade. country?
international trade.
• Restrictions on trade e.g. For example;
tariffs, quotas, embargoes.
• Identify different kinds of 1. (a) What are the advantages for a country to
restrictions on trade : belonging to one of the trading blocs, like ASEAN?
11.6 Difficulties faced by
exporters. • tariffs
• quotas
• embargoes Activity 4: Protectionism

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• E.g. distance, language,
Under certain circumstances a country needs to control its
methods of payment. • Describe the difficulties faced
imports.
by exporters:
For example;
distance
language
1. Why does a country need to adopt protectionism for
methods of finance, etc.
its foreign trade activities?

Topic 12: BUSINESS UNIT

Suggested time frame: 4 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

12. THE BUSINESS UNIT At the end of the lessons, students

Activity 1: Identify business location.
should be able to :
12.1 Location of a business.
• Identify factors to be One of the factors for a success in business is its location.
• Factors to be considered e.g. considered in location of a
labour, raw materials, markets, business For example;
transport.
• Distinguish between 1. Identify and explain three factors to be considered
enterprises in the public and by a trader in order to locate his business/factory
12.2 Public and private sector. the private sector.

• Distinction between enterprises • Describe the main forms of

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 in the public and the private business in the private sector: -
Activity 2: Identification of business
sector.
organization.
Sole trader
Partnership
Give a clue to recognize each type of business organization.
Limited Company
12.3 Main forms of business Franchises
For example;
organizations in the private
sector. • Recognize the appropriateness
1. The following are the names of businesses:
of different forms of ownership
• Sole trader, partnership, to commercial situations.
A. Ming and Mahmud
limited company, franchises.
B. Ultra Vision PTY Ltd
• Describe the characteristics C. Cas Corner Ltd
• Appropriateness of different relating ownership, control, D. Phill Company
forms of ownership to liability of owners ( both limited
commercial situations. and unlimited), provision of (a) i. Identify a public company and a private
capital distribution of profits. company.
• Characteristics relating
ownership, control, liability of • Define a multinational. ii. Identify partnership business and sole trader
owners (both limited and business.
unlimited), provision of capital, • Explain the importance and
distribution of profits. reasons for multinationals in
the global economy. (c) Who are the owners of:
i. a public limited company
12.4 Multinationals. • Contrast between the ii. a private limited company
opportunities offered to, and iii. a partnership
• Definition of a multinational. conflicting interests of iv. a sole trader
multinational companies
• Importance and reasons for locating in the individual (d) Explain how public and private limited companies
multinationals in the global countries. are financed.
economy.

• Opportunities offered to, and

conflicting interests of, Activity 3: How does a business turn into a
multinational companies multinational company?
locating in individual countries.
Show the ways a small business turns to a big company and
then turns into a multinational company.

For example;

1. Cosmos Ltd has built several factories in several

countries. It can be classed as a multinational

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Topic 13: FINANCE
Suggested time frame: 3 weeks
SUB-TOPICS
13. FINANCE
13.1 Source of finance.
• Distinction between long term
and short term finance.
OBJECTIVES
At the end of the lessons, students
should be able to :
• Differentiate between long-
term and short term finance.
company.
(a) How do you identify that Cosmos Ltd is a
multinational company?
(b) What are the advantages for Cosmos Ltd of being
a multinational company?
(c ) Evaluate the benefits and the disadvantages to
the countries where Cosmos Ltd is located.
SUGGESTED ACTIVITIES
Activity 1: How to identify long-term and short-
term finance.
Give keys/clues to identify the long-term finance and the
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 short-term finance.
• Examples of long-term finance. • Produce examples of long-term
finance. For example;
• Examples of short-term
finance. • Produce examples of short- 1. The following are the methods of finance
term finance. available to the company:
• Main features of each;
advantages and disadvantages. • Describe the main features of USING RETAINED PROFITS
• Methods of self-financing e.g. each, advantages and • LEASING EQUIPMENT
retained profits, savings. disadvantages of each. • ISSUING MORE SHARES
• OBTAINING A BANK LOAN
• Suitability of choice of finance • Identify methods of self- • REQUESTING A BANK OVERDRAFT
in commercial situations with financing.
reasons for choice. (a) From the above lists, identify examples of short-
• Adapt the suitability of choices term and long-term methods of finance.
of finance in commercial
13.2 Business finance. situations and produce reasons (b) Distinguish between long-term and short-term
for choice. finance.
• Meaning, calculation and
importance of fixed capital and • Define fixed capital, working
working capital, turnover, rate capital, turnover, rate of Activity 2: Business finance’s terms and its
of turnover, gross profit and turnover, gross profit and net importance to business finance/accounts.
net profit. profit.
Show the terms in business finance and how important they
• Methods of improving profit • Calculate fixed capital, working are for a trader to stay in business.
and turnover. capital, turnover, rate of
turnover, gross profit and net For example;
profit.
1. Explain how the following terms are important to a
• State the importance of fixed business:
capital, working capital,
turnover, rate of turnover, • Fixed capital
gross profit and net profit. • Working capital
• Turnover
• Gross profit
• Identify the methods of
• Net profit
improving profit and turnover.

Activity 3: Aim of a business is profit.

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 Show how profit is prime concern of every business.

For example;

1. Identify and explain three methods for a trader to

improve profit.

Activity 4 : Which methods might be the best?

Show some ideas/reasons for adapting the suitability of

choices of finance in commercial situations.

For example;

1 (a) Mr. X wishes to buy two delivery vans. He does

not have enough capital to buy new delivery vans.
The following options are available for him: -

OPTION 1: buying using retained profits

OPTION 2: obtaining a bank loan

OPTION 3: leasing from a leasing company

Advise MR. X on which might be the best option for

him. Give reasons for your choice. Explain why you
have rejected the other two options.

Topic 14: CUSTOMER CREDIT

Suggested time frame: 2 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

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14. CUSTOMER CREDIT At the end of the lessons, students
Activity 1: Making payment for goods/services;
should be able to :
Cash or Credit term.
14.1 Use of credit.
• Explain the concept of credit
Different types of credit have different advantages and
• Concept of credit. Increased use and increased use of credit
disadvantages for both retailers and consumers.
of credit.
• Explain the advantages and For example;
• Advantages and disadvantages disadvantages of credit to the
of credit to the buyer and seller. buyer and seller. 1 (a) How do retailers benefit from accepting credit
cards?
• Identify different types of
14.2 Types of credit. credit:: - (b) How do consumers benefit from using credit
cards?.
• Hire purchase: main features; • Hire purchase
advantages and disadvantages; • Extended credit (c) Explain two possible disadvantages for a
finance of Hire purchase and • Store cards business of not accepting credit cards.
comparison with Extended • Credit cards
Credit. (d) Explain the benefits for a consumer of
• Define the above types of purchasing for example, refrigerator by (i) cash and
• Extended Credit (Deferred credit. (ii) by hire purchase.
payments): main features;
advantages and disadvantages. • Describe the main features of (e) Explain why a shop has decided to accept debit
each type of credit. cards and not credit cards.
• Store Cards: main features;
advantages and disadvantages. • Identify the finance of Hire
purchase and compare with Activity 2: Identify different features of credit.
• Credit Cards: main features; extended credit.
advantages and disadvantages. Both the retailers and consumers must know the features
• Explain the advantages and of different types of credit. This is important for their own
• Suitability of methods of credit in disadvantages of each type of purposes.
certain circumstances with credit.
reasons for choice. For example;
• Adapt the suitability of
methods of credit in certain 1 (a) What is the difference between debit cards
circumstances and produce and credit cards?
reasons for choice.
(d) How do store cards differ from credit cards?

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 Activity 3: The suitability of methods of credit

Important for students to understand each method of

credit. This is for its suitability in certain circumstances.

For example;

1 (a) Mr. X has bought stationery for his daughter,

which is worth $20. He could use one of the
following methods of payment :

CASH, CHEQUE, CREDIT CARD and DEBIT CARD

Which would be the most suitable? Give reasons for

your choice.

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Topic 15: CONSUMER PROTECTION

Suggested time frame: 2 weeks

SUB-TOPICS OBJECTIVES SUGGESTED ACTIVITIES

15.CONSUMER PROTECTION At the end of the lessons, students

Activity 1: Consumers need to be protected,
should be able to :
from whom?
14.3 Safeguarding the
consumer. • Produce reasons for
consumer protection Consumers are the final or end link for the distribution of
goods from the producer to wholesaler and retailer.
• Reasons for consumer
Without them production of goods and services are not
protection. • Identify different methods
possible.
of safeguarding the
consumer:
For example;
14.4 Methods of safeguarding * laws
the consumer. * organizations
1. (a) How might consumers protect themselves
* codes of practice
against unfair trading practices by retailers?
• E.g. laws, organizations, codes * other means.
of practice, other means.
Activity 2: The “weapons” to protect the
consumers.

For example;

1. (a) Identify and explain three methods of

safeguarding the consumers.

(b) How can a government of a country help the

consumers against unfair trading practices by
retailers?

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Note: The order of syllabus contents may change from year to year in accordance to the
syllabus provided by CIE but there is no change to the content of topics.

Recommended Textbooks:

Betsy Li and Tan Sai Kim, Modern Certificate Guides: Elements of Commerce, 1999

Bill Jones, Revise Commerce, A Complete Revision Course For GCSE

D Butler, GCSE Business Studies, 2001

Dave Hall, GCSE Applied Business

Gerry Gorman, GCSE Business Studies, 1989

Richard Barrett and Mario Gow, Commerce Skills, 1998

Other sources;

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• Past 7100 Commerce “O” Level Papers, From Examination Department
• Past 7101/2 Commercial Studies “O” Level Papers, From Examination Department

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