Tag: commerce

The advantages of branding

  • It enables consumers to identify quickly what they want since braded goods have specific names.
  • It helps to increase sales especially when the customers become accustomed to a specific brand.




  • Branding makes it easy to advertise the products since the products bear trade names.
  • Branding guard’s customers against exploitation since their prices are fixed.
  • Branding facilitates self service since the goods bear trade marks hence saving consumers time.
  • Branded goods are easy to handle because they are uniformly packed.
  • Branded goods are usually weighed. This saves the retailers from the burden of weighing.
  • The trade mark label help to protect the producers from dubious dealers who may violate trade mark rights.
  • Branded goods tend to attract consumers attention since they look attractive when displayed.
  • The branded goods bear useful information describing how the commodity can be used and other salient features of the product.




  • Branding safe guards’ consumers from being cheated in terms of measurements and weight since these products are uniformly weighed and measured.
  • Branding enables consumers to enjoy goods which are not contaminated since branded goods are usually packed.
  • Branding facilitates production of better quality production due to the competition amongst various producers to establish brand loyalty.

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10 disadvantages of installment selling to the sellers

  • There is a high risk of bad debts especially under deferred payment system.
  • In case the seller decides to reposes the item under deferred payment, the property may be in a bad shape hence making it hard to recover the remaining balance even if it is resold.




  • The system is costly on part of the seller since it involves maintaining a record of the customer’s accounts and the costs of recovering the debt.
  • It is likely to worsen the relationship between the seller and the buyer in case the buyer is sued to court of failing to pay all the remaining installments.
  • The seller may suffer a total loss in case of a serious accident which may involve a complete destruction of the property and death of the debtor.
  • The system requires the seller to have a large capital out lay since most of his capital is always tie up in debts.
  • The legal right to reposes the item by the seller in case of failure to pay the last installment tends to discourage the prospective customers from this system.

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12 Disadvantages of Self-service

  • It denies the customers the freedom to practice their bargaining skills.
  • It does not allow physical contact between the sellers and buyers hence the sellers can’t know the consumers opinions.
  • It may force the customers to buy what they might have not budgeted for due to the attractive display of the products.




  • It may attract unfaithful customers who end up pick-pocketing some small items.
  • It reduces the number of customers due to the absence of credit facilities.
  • It is a costly system as it requires much capital to install shelves and stocking a variety of goods.
  • It involves too much time wasted in ques especially at the checking points and at the cashier’s desk.
  • It may encourage the customers to spend too much time in the shop while comparing the various brands.

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Advantages of joint stock companies

  • They are in position to raise more capital due to the large number of share holders involved.
  • They are in position to get financial assistance from banks since they can raise enough collateral securities.




  • They are efficient since they are in position to employ specialists in the various departments.
  • They are assured of a continued existence since death, bankruptcy or insanity of one member does not lead to the dissolution of the company.
  • The freedom to transfer shares in a public limited company acts as an incentive to the share holders who may wish to convert their shares into cash at any time they wish.
  • The employees may be allowed and encouraged to buy shares in the company. This motivates them to work hard.




  • The risks are not heavily felt in joint stock companies since they are spread amongst many shareholders which is not the case of sole trade.
  • The share holders enjoy limited liabilities hence their personal belongings are not confiscated in case of a debt.
  • The publishing of accounts in public limited companies helps to safeguard the shareholders against fraud.
  • The large amount of capital contributed enables the company to produce on large scale hence lowering the cost of production and increasing the profit margin of the firm.
  • The joint stock company is recognized as a legal entity i.e. can enter into contracts, can sue, can own property e.t.c

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What are the advantages of crossing a cheque?

Crossing a cheque refers to the practice of drawing two parallel lines across the face of the cheque. Crossing a cheque can provide several advantages, primarily aimed at enhancing security and ensuring that the funds are appropriately directed. Here are some advantages of crossing a cheque:




  • Security: Crossing a cheque adds an extra layer of security. The crossed lines act as a deterrent to potential fraudsters by making it difficult to alter the payee or the amount mentioned on the cheque.
  • Payee Restriction: When a cheque is crossed, it becomes “account payee only” or “not negotiable.” This restricts the negotiation of the cheque to the account of the named payee. It helps prevent the cheque from being endorsed to someone else or cashed by an unauthorized individual.
  • Encourages Banking System Usage: Crossing a cheque encourages the use of the banking system instead of cash transactions. By making a cheque crossed, it promotes the practice of depositing the cheque into a bank account rather than encashing it immediately. This helps in tracking the flow of funds and contributes to a more transparent financial system.




  • Clearing Process: Crossed cheques generally undergo the process of cheque clearing, which involves the verification and settlement of funds between banks. This ensures that the payment is made through the proper banking channels, reducing the risk of fraudulent or unauthorized transactions.
  • Bank Account Requirement: Crossed cheques are typically required for payments to be made directly into a bank account. If a crossed cheque is stolen, it is less likely to be misused since it cannot be easily cashed. This reduces the risk associated with lost or stolen cheques.
  • Proof of Payment: Crossed cheques provide a documented proof of payment. When a cheque is crossed and deposited into the payee’s bank account, it creates a record of the transaction, which can be useful for both the payer and the payee for future reference or dispute resolution.

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7 DISADVANTAGES OF BRANDING

  • Branding tends to be expensive since the retailer has to stock a variety of goods to cater for the needs of different customers.
  • The cost of branding can be shifted to the final consumer in form of high prices for the final products.




  • It gives no room for bargaining since the prices of branded goods are usually fixed.
  • The customers cannot practice their bargaining skills since the prices of these goods are fixed.
  • The consumers may some times become addicted to a particular brand hence ignoring others.
  • Branding encourages duplication of the fast selling brand of a product hence leading to poor quality goods being purchased.
  • It is difficult to offer discounts on branded goods since these products are uniformly priced.

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The advantages of Trade fairs to the consumers

Trade fairs can offer several advantages to consumers, providing them with unique opportunities to explore products and services in a dynamic and interactive environment. Here are some advantages of trade fairs for consumers:




  • Product Variety and Innovation: Trade fairs bring together a wide range of exhibitors from different industries and sectors. Consumers can explore a diverse selection of products and services all under one roof. This allows them to compare offerings, discover new products, and stay updated on the latest trends and innovations in the market. Trade fairs often showcase prototypes and pre-launch products, giving consumers a sneak peek into upcoming offerings.
  • Hands-on Experience: Trade fairs provide consumers with the opportunity to experience products and services firsthand. They can touch, feel, and test products, allowing for a better assessment of quality, functionality, and suitability. Consumers can interact with exhibitors, ask questions, seek demonstrations, and gather information directly from the source. This hands-on experience enhances consumer confidence and enables more informed purchasing decisions.




  • Exclusive Offers and Discounts: Many exhibitors at trade fairs offer exclusive deals, discounts, or promotional offers to attract customers. Consumers can take advantage of special pricing, bundle deals, or limited-time offers that may not be available elsewhere. This can result in cost savings and added value for consumers who attend trade fairs.
  • Expert Advice and Consultation: Trade fairs often feature industry experts, product specialists, and company representatives who can provide personalized advice and consultation to consumers. Consumers can seek guidance, clarify doubts, and receive recommendations based on their specific needs and preferences. This direct interaction with experts can assist consumers in making well-informed decisions and selecting the most suitable products or services.
  • Networking and Learning Opportunities: Trade fairs offer consumers a platform for networking with professionals, fellow consumers, and industry stakeholders. Consumers can engage in conversations, exchange experiences, and gather insights from like-minded individuals. Trade fairs also frequently organize seminars, workshops, or product demonstrations where consumers can learn about new technologies, best practices, and industry developments.




  • Market Research and Awareness: Attending trade fairs allows consumers to stay informed about the market landscape. They can gain knowledge about various competitors, pricing ranges, and available options within a particular industry. This market research helps consumers stay updated, educated, and aware of the latest offerings, trends, and consumer preferences.

Overall, trade fairs provide consumers with a unique and engaging platform to explore, experience, and make informed choices. They offer a comprehensive and immersive experience that goes beyond traditional retail settings, fostering consumer empowerment and enhancing their overall satisfaction.

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