Key Terms/ Definitions Flashcards
Define budget
a list of income and likely expenditures
Define business
any organisation that produces and sells goods and services in order to make a profit.
Define income
money received on a regular basis from work, property, business, investment or welfare payments
Define labour force
people aged 15 and over who are either employed or unemployed
Define profit
what remains after all business expenses are deducted from sales revenue
Define goods / services
items that you can see or touch / things done for you by others
Define comparison shopping
contacting a number of sellers to obtain the best deal
Define scam
an illegal business practice
Define EFTPOS
Electronic Funds Transfer Point of Sale: based on the use of payment cards at payment terminals located at points of sale.
Define acceptable quality
a product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable
Barter
the swapping or exchanging of one good for another
caveat emptor
a term meaning “let the buyer beware”
commerce
the buying and selling of goods and services between individuals and businesses
gross income
income before tax deductions
net income
income after tax deductions
durable good
a good not frequently purchased and has long-life span
disposable income
income after tax has been deducted
consumer sovereignty
the power to decide which goods/services survive in the marketplace
contract
legally binding agreement
depreciation
a reduction in the value of an asset over time, e.g. petrol depreciates 2% every year
complementary goods
a good that can only be bought in conjunction with another good, e.g. buying petrol to go with a car. goods related to other goods/ go hand in hand
category killers
a large store, typically one of a chain, which specializes in a particular type of discounted merchandise and becomes the dominant retailer in that category.
What are manufacturers, retailers and wholesalers
manufacturers manufacture the product, retails sell the product in small quantities (more expensive), wholesalers sell in large quantities (less expensive).
mail order and advantages
the sale and ordering of goods by post, generally involving selection from a catalogue.
order from home, a wider range of products.
