COMMERCE PRINCIPLES
UNIT CODE: 0415 451 06A
TVET CDACC UNIT CODE: BUS/CU/OA/CC/01/5/MA
UNIT DURATION: 80 Hours
Relationship to Occupational Standards
This unit addresses the Unit of Competency: Apply Commerce Principles
Unit Description
1. This unit specifies the competencies required to apply commerce knowledge. It involves:
Analyzing Commerce Concepts, Analyzing Production Concepts, Analyzing Payment
Process, Analyzing Money and Banking Concept, Analyzing Government Commercial
Policy and Apply commercial business calculations.
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Summary of Learning Outcomes
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S/ NO. LEARNING OUTCOMES DURATION
1 Analyze commerce concepts 12
2 Analyze production concepts 14
3 Analyze payment process 12
4 Analyze money and banking 14
concept
5 Analyze government 14
commercial policy
6 Apply commercial business 14
calculations
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80
Learning Outcomes, Content and Suggested Assessment Methods
Suggested Assessment
Learning Outcome Content Methods
1. Analyze commerce 1.1 Definition of terms • Practical assessments
concept 1.1.1 Capital • Projects
1.1.2 E- commerce • Third party reports
1.1.3 Balance sheet • Written tests /
1.1.4 Trade, etc. assessments
1.2 Branches of commerce • Oral questions
1.2.1 Trade • Portfolio of evidences
1.2.2 Aids to trade, etc.
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1.3 Characteristics of commerce
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1.3.1 Exchange of Goods and
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Services
1.3.2 Technology driven
1.3.3 Facilitates Trade, etc.
1.4 Functions of commerce
1.4.1 Buying and Selling
1.4.2 Transportation
1.4.3 Warehousing, etc.
1.5 Importance of commerce
1.5.1 Economic Growth
1.5.2 Facilitates Employment
1.5.3 Promotes Specialization and
Division of Labor, etc.
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Suggested Assessment
Learning Outcome Content Methods
2. Analyze 2.1 Methods of production • Practical assessments
production 2.1.1 Labour intensive • Projects
concepts 2.1.2 Capital intensive, etc. • Third party reports
2.2 Types of production • Written tests /
2.2.1 Direct production assessments
2.2.2 Indirect production, etc. • Oral questions
2.3 Levels of production • Portfolio of evidences
2.3.1 Primary
2.3.2 Secondary
2.3.3 Tertiary
2.4 Factors of production
2.4.1 Capital
2.4.2 Land
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2.4.3 Labor
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2.4.4 Entrepreneur
3. Analyze payment 3.1 Documents used in business • Practical assessments
process transactions • Projects
3.1.1 Credit notes • Third party reports
3.1.2 Debit notes • Written tests /
3.1.3 Invoices assessments
3.1.4 Payment vouchers • Oral questions
3.1.5 Receipts • Portfolio of evidences
3.1.6 Purchase orders
3.1.7 Quotations
3.1.8 Acknowledgment notes
3.1.9 Delivery note, etc.
3.2 Means of payment
3.2.1 Money order
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Suggested Assessment
Learning Outcome Content Methods
3.2.2 Standing order
3.2.3 E-payment e.g. credit and
debit cards, digital wallet,
bank transfers such as
electronic funds transfer
(EFT), M-pesa, etc.
3.2.4 Cheques
3.2.5 Banker’s cheque, etc.
3.3 Terms of payment
3.3.1 Deferred payments
3.3.2 Cash on delivery
3.3.3 Cash with order
3.3.4 Cash sale
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3.3.5 Hire purchase, etc.
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4. Analyze 4.1 Terms used in money and Banking • Practical assessments
Money and 4.1.1 Liquidity • Projects
Banking 4.1.2 Monetary policies • Third party reports
4.1.3 Plastic money • Written tests /
4.1.4 Bank rate assessments
4.1.5 Micro finance • Oral questions
4.1.6 Mobile banking • Portfolio of evidences
4.1.7 Bank ombudsman
4.1.8 Linked account
4.1.9 Base rate etc.
4.2 Characteristics of Money.
4.2.1 Durability
4.2.2 Limited supply etc
4.3 Functions of money
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Suggested Assessment
Learning Outcome Content Methods
4.3.1 A measure of value
4.3.2 An exchange medium, etc.
4.4 Types of Banks
4.4.1 Central bank
4.4.2 Commercial banks e.g.
Cooperative Bank, Absa
Bank, Standard Chartered
Bank, Kenya Commercial
Bank, Equity Bank, Family
Bank, Merchant Bank etc.
4.5 Types of Bank Accounts
4.5.1 Current account
4.5.2 Savings account
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4.5.3 Fixed deposit account etc.
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4.6 Functions of Commercial Banks
4.6.1 Accepting deposits
4.6.2 Lending money etc.
4.7 Functions of Central Bank
4.7.1 Inflation control
5. Analyze 5.1 Ways of Government involvement in • Practical assessments
government commercial activities • Projects
commercial 5.1.1 Regulations • Third party reports
policy 5.2 Regulatory bodies • Written tests /
5.2.1 KEBS assessments
5.2.2 NEMA • Oral questions
5.2.3 Pharmacy and Poisons • Portfolio of evidences
Board, etc.
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Suggested Assessment
Learning Outcome Content Methods
5.3 Government involvement in
Commercial Activities
5.3.1 Imposing tariffs
5.3.2 Providing financial
support
5.3.3 Creating regulations etc.
5.4 Consumer protection
5.4.1 Right to goods and
services of reasonable
quality.
5.4.2 Right to the information
necessary for them to gain
full benefit from goods
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and services etc.
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5.5 Functions of Commercial Attaches
5.5.1 Improving commercial
process
5.5.2 Prospecting ad negotiation
6. Apply 6.1 Terms used in commercial business • Practical assessments
commercial calculations • Projects
business 6.1.1 Interests • Third party reports
calculations 6.1.2 Discounts • Written tests /
6.1.3 Commissions assessments
6.1.4 Principal • Oral questions
6.1.5 Amount • Portfolio of evidences
6.1.6 Compound interest, etc.
6.2 Simple interest calculations
6.2.1 Meaning of simple interest
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Suggested Assessment
Learning Outcome Content Methods
6.2.2 Calculation of simple interest
6.3 Components of compound interest
6.3.1 Interest rate
6.3.2 Principal
6.3.3 Number of compounding
periods in a year
6.3.4 Time
6.4 Calculation of compound interest
6.4.1 Convert the interest rate
6.4.2 Determine values of p, r, n
and t
6.4.3 Substitute the principle (P)
from the future value (A) to
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find the compound interest.
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6.5 Calculation of sales discounts
6.5.1 Trade discounts
6.5.2 Cash discounts
6.5.3 Quantity discounts
6.6 Calculations of various types of
sales commission
6.6.1 Flat Commission
6.6.2 Tiered Commission
6.6.3 Bonus Structure
6.6.4 Gross Profit Commission,
etc.
Suggested Delivery Methods
• Practical’s
• Projects
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• Group discussions
• Field trips
• Visit organizations
• Demonstration
• Viewing videos
Recommended Resources for 25 trainees
S/No. Category/Item Description/ Quantity Recommended
Specifications Ratio
(Item: Trainee)
A Learning Materials
1. Charts • Flip Charts 5 1:5
• Rules and
Regulations
2. Video clips MP4, MP3 5 1:5
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Audio tapes
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3. Newspapers and Handouts Daily 5 1:5
4. Business Journals Annual, Monthly, 5 1:5
daily
B Learning Facilities & Infrastructure
5. Lecture/Theory Room (9* 8 sq. metres) 1 1:25
6. Internet Connection WI-FI, Dial-Up, 1 1:25
Cable, Fixed-
wireless,
C Consumable Materials
7. Markers whiteboard 5 1:5
markers and
permanent
markers
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8. Stationery Printing Papers, 5 reams 1:5
and Exercise
Books Sizes A4,
A3, A2 etc
D Tools And Equipment
9. Computers/Laptops Any model 5 1:5
10. Projector [Link], Laser 1 1:25
11. Whiteboard Glass, melamine, 1 1:25
porcelain
References
• Books from business authors
• Company operating procedures
• Industry/workplace codes of practice
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• Customer requirements
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• Marketing needs report
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• Occupational standards
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