Communication is the act of sending and receiving message/information from one person or place to another. Communication could be oral, written or visual.
IMPORTANCE OF COMMUNICATION TO COMMERCE
- It facilitates contacts between businessmen
- It creates awareness for goods and services thereby increasing demand for goods/sales
- It facilitates the settlement of business debts e.g. Mail transfer
- The use of wireless makes it possible to control ships, aeroplanes, spacecrafts etc.
- It facilitates mail order business
- It links the whole world into one economic unit thereby facilitating international trade.
- It facilitates the distribution of vital business documents as well as goods
- It reduces the cost and risk in traveling for business transactions
MEANS OF COMMUNICATION
- Posters ii. Radio iii. Television iv. Letters v.Telephone vi. Telegrams vii. Telex viii. Internet ix. Satellite x. Post office.
FUNCTIONS/SERVICES OF NIPOST
- Issuance of postage stamps
- Ordinary letter post
- Parcel post
- Registered Letters
- Express Letters
- Private boxes (P.O Box) and bags (P.M.B)
- Poste Restante
- Recorded Delivery
- Business Reply Services
- Licensing of franking machine.
- Free post
- Air mail services
- Acting as agent of payment
- Cash on Delivery (C.O.D) Services
- Acts as a savings Bank
- Provision of means of payment e.g. postal orders, money orders etc.
EVALUATION QUESTIONS
- List five services provided by NIPOST.
- State five importance of communication in commerce.
FUNCTIONS/SERVICES OF NITEL
- Telephone services
- GSM services i.e. through MTEL
- Telex Services – for printed messages sent through machines called teleprinter
- Satellite services e.g. for live transmissions of games ,events etc
- Data Transmission Services
- Provision of Telephone Directories
- Telegram Services
FUNCTIONS/ADVANTAGES OF COURIER SERVICES
- Fast and safe delivery of mails and parcels
- They undertake air cargo and bulky shipments of commodities
- They render nationwide (and world wide) services. Services are extended even to rural areas.
- Twenty four hour services are provided
- Important mails and parcels are insured
- Their services are more personal and cordial
- The courier companies provide employment opportunities
Differences between the Courier Services and Post Office Service
| Courier services | Postal services | |
| 1 | Materials are usually insured | Materials are not usually insured |
| 2 | Loss of goods are low | Loss of goods are high |
| 3 | Very expensive | Relatively cheaper |
| 4 | Very quick, efficient and reliable service | Very slow and inefficient service |
| 5 | Longer hours of services are rendered | Less hours of services are rendered |
| 6 | Nationwide and worldwide coverage | Less coverage of activities |
| 7 | Personal and cordial relationship with customers | Less personal attention is given to customers |
| 8 | Provide door- to-door service | Do not usually door-to-door service |
EVALUATION
- State five functions of a) NIPOST b) NITEL
- List five advantages of courier services over public postal services
WEEKEND ASSIGNMENT
- Mail order firms largely depend on the services of the a) banks b) insurance companies
- c) mobile vans d) post office
- Telecommunication services are provided by a) NITEL b) NIPOST c) courier services d) Bureau De Change
- Which of the following involves the delivery of mails to a traveler without fixed address
(a) Speed post (b) Reply paid (c) Recorded delivery (d) Poste Restante
- The fastest and mot accurate means of passing information is (a) airmail letter (b) express letter (c) telegram (d) telephone
- In which of the following does the number of words used determine the cost of the message
- a) Telephone b) Recorded delivery c) Telex d) Express mail.
THEORY
- State three functions of courier companies
- List three importance of communication to commerce
GENERAL EVALUATION QUESTIONS
- State seven functions of a chamber of commerce
- Explain five functions of a trade association
- State five problems that a co-operative society may likely face
- Explain five importance of working capital to a business
- State five factors that can affect the rate of turnover of a company
See also
THE FINANCIAL POSITION OF BUSINESS FIRMS
PROFIT
CAPITAL
TRANSPORTATION: ROAD, AIR, WATER, RAIL, IMPORTANCE, FORMS, ADVANTAGES & DISADVANTAGES