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POB - Form 4 > Term 2 > Flashcards

Term 2 Flashcards

1
Q

What is the most common method of discharge of Contracts?

A

Discharge by Performance

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2
Q

Explain the following method of discharge by contracts:

  • Discharge by Performance
A

Discharge by Performance means all parties performed their parts of the contract.

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3
Q

Explain the following method of discharge by contracts:

  • Discharge by Breach of contract
A

Discharge by Breach of contract means one of the parties didn’t fulfil their promise

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4
Q

Explain the following method of discharge by contracts:

  • Discharge by Agreement
A

Discharge by Agreement means both parties agree to cancel the agreement before it is performed.

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5
Q

Explain the following method of discharge by contracts:

  • Discharge by Death
A

Discharge by Death means if one party dies, the contract has to come to an end

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6
Q

Explain the following method of discharge by contracts:

  • Discharge by Merger
A

Discharge by Merger means a new contract of a higher order replaces the previous one

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7
Q

Explain the following method of discharge by contracts:

  • Discharge by Lapse of Time
A

Discharge by Lapse of time means when an offer has a time span, the offer lapses if the time span expires.

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8
Q

Explain the following method of discharge by contracts:

  • Discharge by Impossibility
A

Discharge by Impossibility means circumstances beyond control makes it impossible to complete the contract.

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9
Q

What are the two Remedies for Breach of Contracts.

A

1) Damages
2) Specific Performance

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10
Q

Explain the following Remedy for Breach of Contracts:

  • Damages
A

Damages is a sum of money to compensate for the loss.

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11
Q

Explain the following method of discharge by contracts:

  • Specific Performance
A

Specific Performance is when the court instructs the party that has fail to fulfil the contract to do what was expected of them within a certain period of time.

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12
Q

List three (3) reasons for keeping Financial Business Documents.

A

1) To keep a record of Profit/Losses

2) To keep track of customers and suppliers record

3) To record all transactions for tax purposes

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13
Q

What is a Transaction

A

A transaction is the process of supplying goods from the initial inquiry through payments.

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14
Q

Define:

  • Home Trade
  • Foreign Trade
A

Home Trade is transactions made within the country

Foreign Trade is transactions made outside your country.

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15
Q

Define the following Business Document:

  • Letter of Inquiry
A

A letter of Inquiry is a business document where the buyer requests information from the seller about goods to be purchased.

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16
Q

Define the following Business Document:

  • Letter of Quotation
A

A letter of Quotation is a business document from the seller to the buyer, that states what the supplier has to offer.

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17
Q

What are the three (3) forms a Quotation Letter may be in?

A

1) Price List
2) Catalogue
3) Quotation Letter

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18
Q

Define the following Business Document:

  • Purchasing Order
A

Purchasing Order is a business document sent from buyer to seller when the buyer is satisfied with the quotation and therefore makes an order.

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19
Q

What is a Requisition Form?

A

A Requisition form is a business document used to order items from within an organisation.

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20
Q

Define the following Business Document:

  • Advice Note
A

An Advice Note is a business document sent ahead of the goods to advise the buyer that the goods are on their way.

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21
Q

Define the following Business Document:

  • Delivery Note
A

Delivery Note is a business document sent from seller to buyer, that is packed with the goods so that the buyer can correspond their items received with those on the document.

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22
Q

Define the following Business Document:

  • Invoice
A

An Invoice is a business document from seller to buyer to advise the buyer on the amount that is owed for the delivery of goods.

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23
Q

Define the following Business Document:

  • Credit Note
A

A Credit Note is a business document sent by the seller to buyer when there has been an overcharge on goods bought.

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24
Q

Define the following Business Document:

  • Debit Note
A

A Debit Note is a business document sent by the seller to buyer when there has been undercharge on goods bought.

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25
Define the following Business Document: - Payment
Payment is the instrument of exchange chosen by the buyer to pay for goods bought.
26
Define the following Business Document: - Statement of Account
Statement of Account is a business document that summarises the customers outstanding account at the end of the month.
27
What are the three (3) different discounts?
1) Trade discount 2) Quantity Discount 3) Cash Discount
28
Explain the following Discount: - Trade Discount
A trade discount is a discount given to people in a similar trade to enable them to make a profit on resale.
29
Explain the following Discount: - Quantity Discount
A quantity discount is a discount that encourages buyers to place a large order.
30
Explain the following Discount: - Cash Discount
A cash discount is a discount given to people who make prompt payment.
31
List the three (3) types of Delivery Options
1) Carriage Paid 2) Carriage Forward 3) Ex-works
32
Explain the following Delivery Option: - Carriage Paid
Carriage Paid is where the cost of transportation of the goods is included in price.
33
Explain the following Delivery Option: - Carriage Forward
Carriage Forward is where the cost of transportation is not included in the price, therefore the buyer is charged extra.
34
Define: - Indirect Taxes
Indirect Taxes are taxes paid only when a purchase is made.
35
Define: - Direct Taxes
Direct Taxes are taxes taken out from my salary and paid to the government and NIC directly.
36
What does VAT stand for?
Value Added Tax
37
What is VAT?
VAT is a consumption tax customers pay to businesses on behalf of the government.
38
Define: - Sales Tax
Sales Tax is a tax paid directly by the customer at the time of purchase.
39
What is Stock?
Stock is the goods or material made by the business.
40
What are Stock Records?
Stock Records are ways in which additions and deductions from stock are recorded.
41
List three (3) reasons to record your stock
1) To know your stock level. 2) To make better decisions about Stock Management Practices. 3) To identify possible theft and damaged stock.
42
What is Insurance?
Insurance is a system of providing compensation to those who suffer a loss.
43
What is the purpose of Insurance?
The purpose of insurance is to get back to where you were before an incident occurred.
44
Who is the Insurer?
The insurer is the insurance company.
45
Define the following term used in Insurance: - Insured
The insured is the person receiving the insurance.
46
Define the following term used in Insurance: - Policy
The policy is the written document setting out the details of the insurance contract.
47
Define the following term used in Insurance: - Premium
Premium is the amount the insured pays monthly.
48
What is another name for compensation?
Indemnity
49
How may principles does Insurance have?
Eight (8)
50
What are the eight (8) principles of Insurance?
1) Pooling of Risks 2) Subrogation 3) Indemnity 4) Proximate Cause 5) Utmost Good Faith 6) Contribution 7) Insurable Interest 8) Uninsurable Risks
51
Explain the following Principle of Insurance: - Pooling of Risks
Pooling of Risks is where the risks are shared among the members and the monthly fees are placed in a pool
52
Explain the following Principle of Insurance: - Subrogation
Subrogation is where one takes the places of another.
53
Explain the following Principle of Insurance: - Indemnity
Indemnity is putting someone back into the position they were before the loss occurred.
54
Explain the following Principle of Insurance: - Proximate Cause
Proximate Cause is where the insurance policy covers damages that are only related to the terms of the policy.
55
Explain the following Principle of Insurance: - Utmost Good Faith
Utmost good faith is where parties must disclose of relevant information and not give any false or misleading information.
56
Explain the following Principle of Insurance: - Contribution
Contribution is where two or more insurance companies are liable to pay the insured for the same event.
57
Explain the following Principle of Insurance: - Insurable Interest
Insurable Interest is where a person can't take insurance for someone else.
58
Explain the following Principle of Insurance: - Uninsurable Risks
Uninsurable Risks is where an insurance company is unwilling to provide coverage because the likely-hood of the loss is too high or unpredictable (Aliens)
59
What are the two types of Insurance?
1) Life 2) Non-life
60
What is another name for Life Insurance?
Assurance
61
Differentiate between Insurance and Assurance
Insurance is protection against a risk that might or might not happen whereas Assurance is concerned with an event that will happen.
62
What are the three (3) types of Life Assurance?
1) Whole life/Permanent Police 2) Term Policy 3) An endowment Policy
63
Explain the following type of Life Assurance: - Whole Life/Permanent Policy
Whole Life/Permanent Policy is the payment made to the benefactor after the death of the insured.
64
Explain the following type of Life Assurance: - Term Policy
Term Policy is the payment made only if death occurs during the term of the policy.
65
Explain the following type of Life Assurance: - Endowment Policy
An Endowment Policy is a policy that pays out a lumps after a specific time, age, death or if the person is chronically ill.
66
List four (4) Non-life Insurance
1) Motor Insurance 2) Property Insurance 3) Business liability Insurance 4) Marine Insurance
67
What are Loss adjusters?
Loss adjusters are independent claim specialised that are used to ensure claims are settled fairly.
68
List three (3) ways insurance can facilitate trade
1) It promotes business confidence. 2) It provides businesses with protection against disastrous events or loss of goods. 3) It encourages businesses to take risks in business activities.
69
What is Production?
Production is the process of creating goods and services to satisfy human needs and wants.
70
How may factors does Production have?
Four (4)
71
What are the four factors of production?
1) Enterprise/ Entrepreneurial skills 2) Land 3) Labour 4) Capital
72
Define the following Factor of Production: - Enterprise /Entrepreneurial skills
Entreprise/ Entrepreneurial skills is the skills and mindset of the entrepreneur to bring all the factors of production together
73
Define the following Factor of Production: - Land
Land refers to both the physical land and all natural resources.
74
Define the following Factor of Production: - Labour
Labour refers to the people's physical and mental contribution to the creation of goods and services.
75
Define the following Factor of Production: - Capital
Capital refers to all man-made resources used in the production of goods and services.
76
What are the three (3) classifications of Labour?
1) Skilled 2) Unskilled 3) Managerial
77
Define the following classifications of Labour: - Skilled
Skilled is where there is formal qualifications and experience
78
Define the following classifications of Labour: - Unskilled
Unskilled is where there is little to no special training.
79
Define the following classifications of Labour: - Managerial/ Professional
Managerial/ Professional is using your mental.
80
Give two examples of each classification of Labour
Skilled: Electrician, Engineer Unskilled: Janitor, Security Managerial: Teachers, Supervisors
81
State the two forms of Capital and give an example of each
1) Fixed (Buildings) 2) Working (Cash)
82

POB - Form 4 (2 decks)

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