Commerce

Proj
ect
By: Adeboye Ibukun
SS2B
 Trade Associations and other Enterprises
Trade association is an association of traders engaged in the
same line of trade, whose major aim is to protect and
safeguard the interest and businesses of their members.

AIMS
1. To assist members who are in need
2. To ensure that members provide good quality service.
3. To maintain professional ethics of their line of trade.
4. To defend and advance the interest of their members
5. To promote trade in a particular line of business.

FUNCTIONS
1. They fix prices for their services or products.
2. They settle disputes among members.
3. They educate members on trade activities.
4. They provide credit facilities and assistance to
members
5. They carry out research and publish out the report for
members use.

Chamber of Commerce
This is an association of merchants, manufacturers and
businessmen from different commercial fields who agree to
come together with the aim of protecting their business
interest.
AIMS
1. To further business interest of the area.
2. To promote commercial activity in a town or country.
 3. To influence the policy of the govt. relating to
commercial activity in an area
FUNCTIONS
1. To promote home and foreign trade.
2. To educate members on govt. legislations
3. To settle disputes among members
4. To organize trade fairs and Exhibitions.
Differences between chamber of commerce and trade
association
Chamber of commerce Trade associations
It is not restricted to a It is restricted
particular business or trade
They have national and inter- They are regionally based.
national outlook.

Cartel
This is an organization established by producers of similar
products for the main purpose of restricting output of
members in order to keep up with the price of their product.
Cartel has its origin in Germany
AIM
1. To keep up the price of their products
2. To regulate output
3. To ensure higher profit for members.
FUNCTIONS
1. They reduce waste by eliminating competition.
2. They allocate quota to members
 Trust
This is an amalgamation of different competing firms in
lines of businesses under a single control. It has its origin
in America.
Differences between Cartel and Trust
Cartel Trust
Members will lose their Independence is still maintained
independence

Trust is a complete merger. It is voluntary.

There is no quota system Producers are given quotas

Merger
Merger is the combination of two or more previously
independent firms to form one large firm. It may arise from
the desire to buy out a competitor.
AIM
1. To obtain a larger market share.
2. To increase efficiency of management.
3. To eliminate competition
4. To reduce overhead cost.