NECO Syllabus For Commerce 2020/2021

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NECO Syllabus For Commerce 2020/2021

In this article, we will be sharing the full NECO syllabus for all commerce candidates. This is specifically for all candidates who will be taking the upcoming 2020/2021 NECO examination.


i. Definition of Commerce and E-Commerce
ii. History/Background of Commerce
iii. Scope of Commerce and E-Commerce
iv. Functions of Commerce and E-Commerce


i. Meaning of Occupation
ii. Types;- Industrial, Commercial, Service
iii. Factors that determine types of occupation /
Career Opportunities


i. Meaning
ii. Factors – land, labour, capital and
iii. Types:- Primary, Secondary and Tertiary
iv. Division of labour/specialization

– meaning
– types
– advantages and disadvantages,
– limitation
v. Inter-relationship between production and

Business Units

i. Meaning and objectives of business
ii. Forms of business units
β€” Sole proprietorship,
β€” Partnership,
β€” Co-operative Societies,
β€” Credit Union and Thrift Societies,
β€” Public enterprises,
β€” Companies –
iii. Types, Formation, characteristics, comparison,
advantages and disadvantages
iv. Sources of capital of each forms of business
v. Meaning and purpose of
– Amalgamations,
– Mergers and acquisitions
– Trust,
– Holding companies and Subsidiaries
– Consortium and Cartel
vi. Dissolution/Liquidation of Companies/Partnership

Trade Associations

Aims and functions of
i. Trade Association
ii. Chamber of Commerce, Employers Association
iii. Consumer Association/Consumerism


Business Capital And Profits

i. Meaning and types –
Authorized/Registered/Normal capital, called-up,
paid-up capital, capital owned, liquid/circulating
ii. Credit – Meaning, Sources, Instrument and
iii. Calculation of working capital, the Importance of
working capital
iv. Profits – Meaning, types and calculation of profit
v. Turnover – Meaning, calculations and factors
affecting turnover.


(a) Home Trade

Purpose and branches of trade –
Home Trade and Foreign Trade – Meaning and
i. Retail trade:
Functions of retailer
– Factors to consider in starting a retail business
– Reasons for success/failure of retail business.
ii. Small scale and large scale retailing –
Types of Retail Outlets,
– Unit shops, Stalls, Hawkers, Kiosks, Mobile
shops, Supermarket, Chain Stores, Department
Stores, Shopping malls, Hypermarkets and
Mail Order business
The main characteristics of each.
– Advantages and disadvantages.
– Modern trends in retailing – branding, self
service, Vouchers. Vending machines, credit
iii. Wholesale trade – Functions of Wholesalers Types

of Wholesalers. Factors. Merchant and agent
iv. Factor making for elimination and survival of
v. Channel of Distribution:
Meaning, Types.
Factors for choice of Channel


Foreign Trade

i. Meaning –
Types: Import, export and entreport
ii Basic concept in International trade – terms of trade,
balance of trade, balance of payment -favourable,
unfavourable, visible and invisible items, bilateral
and multilateral agreements and counter trade
iv. Advantages and Disadvantages
v. Barriers to Foreign trade –
vi. Tariffs –
Reason for tariffs,
vii. Functions of port and Airports Authorities,
Customs and Excise Authority and Shipping,
Clearing and forwarding Agents. Exports
promotion Council.


Purchase And Sale Of Goods In Home And Foreign Trade

i. Procedure and documents used in business –
Order, Indent, Consular Invoice, Ordinary Invoice,
Credit/Debit notes, Proforma Invoice, Letter of
hypothecation, documentary credit, certificate of
origin, certificate of inspection, insurance
ii. Price Quotation – Trade discount, Cash discount,
Quantity discount, COD, CWO, CIF, FOB, E &
OE, Ex-works, LOCO, FAS, FOR and Franco
iii. Terms of Payment: Cash/Spot Payment, Purchase
and deferred payment.
iv. Means of payment – Legal tender – (bank notes
and coins), cheques, standing order, bank draft,
stamps, postal-orders, money orders, bills of
exchange and promissory Note, mail transfer,
traveller’s cheques, telegraphic transfer. Epayment


Finance And Financial Institutions

i. Meaning
ii. Evolution/History
iii. Forms
iv. Qualities and functions



i. Types of Banks – Central Bank, Commercial
Banks and other specialized banks e.g.
Development Bank, Mortgage Bank, Building
Society, Micro finance institutions, – their
features and Functions.
Bureau-de-change (Meaning and Functions)
ii. E. Banking –
forms – ATM, Money transfer –

E Payment – online transfer
iii. Types of Accounts: Current, Savings and Fixed
Deposit Account – Their main features
i. Meaning and basic principles –
utmost good faith, insurable interest, indemnity
and subrogation, Contribution and proximate
ii. Types of Insurance
a. life Insurance
– Whole life Assurance
– Endowment


b. Non life Insurance
– Motor vehicle
– Fire
– Fidelity
– Burglary/Robbery/Theft
– Accidents
– Consequential Loss
– Marine
c. Types of Risk
i. Insurable Risk e.g. fundamental risks
– Pure risk

– Particular risk

ii. Uninsurable risk
– speculative risk
d. Importance of Insurance to business and individual.
e. Procedure for taking an Insurance Policy.
f. Underwriting – meaning
g. Re-insurance – Meaning and purpose
i. Meaning
ii. Functions
iii. Methods of raising funds by companies – offer for
sale, offer for subscription, rights issue, private
placement, issue by tender
Second tier Security market
i. meaning and functions
ii. Advantages to Companies/Public
iii. Requirement for listing

Capital Market

i. Meaning and functions,
ii. Importance
iii. Transactions on the stock exchange
iv. Speculators – Meaning and Types
v. Types of Security – Shares, Stock, Bond gilt edge, debentures/Convertible loans


Stock Exchange

(first tier)

i. Meaning
ii. Types of tradable commodities
iii. Requirements for trading – Grading, Standardizing,
Warehousing, Clearing system
iv. Method of Trading – open outcry and electronic
v. Benefit of Commodity exchange


Commodity Exchange

(i) Meaning
(ii) Importance
(iii) Choice of transport
(iv) Forms
(a) Land
(b) Water
(c) Air
(d) Pipeline
(v) Advantages and disadvantage of each form
(vi) Documents – Waybills, Consignment note, tickets
and manifest


Transport, Tourism, Communication And Warehousing


(i) Meaning
(ii) Advantages and disadvantages
(i) Meaning
(ii) Types – Oral. Written, Visual, Non-verbal, Non
visual, Traditional,
(iii) Advantages and Disadvantages
(iv) Importance and services of Post Office
(v) Courier Agencies and other communication
agencies – Telephone system, satellite services,
internet- E-mail
(vi) Computer Appreciation
– meaning,
– component parts,
– advantages and disadvantages



(i) Meaning
(ii) Importance
(iii) Functions
(iv) Types
(v) Advantages




(i) Meaning
(ii) Roles, advantages and disadvantages

(iii) Types – informative, persuasive, Competitive,
(iv) Methods – direct and indirect
(v) Media- meaning, choice and types


Introduction To Marketing



(i) Meaning
(ii) Importance
(iii) Functions (iv) Differences between market and marketing, market and marketing research.

The Marketing mix 4ps


Marketing Concept

(i) Meaning (ii) Components – Products, – price, – place and – promotion (i) Meaning (ii) Importance


Customer Services

Types – Pre and after sales services (i) Meaning (ii) Methods Trade fairs, exhibitions, gifts, demonstration


Sales Promotion

Personal Selling


Legal Aspect Of Business

Areas of law that relate to Business (i) Contract
– Meaning –
– Elements of a valid contract
– Discharge of a contract

(ii) Agency
– Meaning
– Creation
– Duties and responsibilities of principals and
– Termination
(iii) Sales of goods Act
(iv) Hire Purchase Act
(v) Rights and Obligations of employer and Employee
(vi) Government regulation of Business – patents,
copyright. Trade mark
(vii) Registration of Business

– Meaning and uses
(i) Meaning
(ii) Need for protection
(iii) Means of protection
(iv) Consumerism
Means, Instrument of protection

Consumer Protection

Government Legislation – food and drugs Act standard
organization Act – Price Control Act – Factory, Shops
and Offices Act – Product quality

Government policies relating
to business
A. Commercialsation
B. Privatisation
C. Deregulation

(i) Meaning and Reasons
(ii) Advantages and disadvantages
(iii) Comparison/differences


Introduction To Business Management

i. Meaning
ii. Objectives of business
iii. Meaning of Business Management
iv. Functions
v. Business Resources
– Man, Money, Materials Opportunities/Goodwill

vi. Structure of Business organizational setup
Organisational chart, Departments, Functions
of each, Authority, Delegation of Authority
– Responsibility Span of Control
vii. Business and its environment Economical
– Political Competition Technological etc
viii. Social responsibility of Business to the Society
ix. Importance of Inter and Intra departmental

Economic Groupings


i. History
ii. Membership
iii. Objectives
iv. Achievements
v. Problems/Obstacles


Recommended Textbooks

i. Senior Secondary Commerce, Book One, two and three by M. O. Odedokun, P. C. Udokogu and C. O. N. Oguji. ii. Basic Marketing- McCarthy Jerome, E. , William Perreault Jr. iii. Marketing – G. B. Giles ( The M & E hand book services) iv. Consumer Behaviour – Prof. Achumba ( University of Lagos)


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