The Nature Of Business

Question 1

Enterprise

Answer 1

Used to describe an undertaking or activity with some degree of difficulty or risk

Question 2

Trade

Answer 2

This means and selling. A business with engaged in trade in order to make a profit

Question 3

Organization

Answer 3

This is where a group of persons using resources or things that are arranged in a certain way to carry out specific activities in order to achieve a goal or objective

Question 4

Economic

Answer 4

This is a system that allocates or shares resources by deciding what should be produced and for whom

Question 5

Producer

Answer 5

This is a person or business that makes or creates rules or services. Usually the goal of the producers to make a profit

Question 6

Consumer

Answer 6

This is the person or group that buys goods and services to satisfy wants

Question 7

Exchange

Answer 7

The giving of wants, things and receiving of another. The things exchange are usually of similar value

Question 8

Goods

Answer 8

These are things that are made to be sold otherwise call the products. Goods are used in exchange of trade along with services goods are tangible.

Question 9

Services

Answer 9

This means work that is done for an another distance or benefits given services or intangible unlike goods.

Question 10

Market

Answer 10

A market is any situation in which buyer and seller meet or communicate in other exchange goods and services

Question 11

Entrepreneurship

Answer 11

Is the practice of identifying a new invention or opportunity organizing the financing and other resources and taking the risk in the hope of creating wealth

Question 12

Entrepreneur

Answer 12

A individual who identifies the opportunity and risk the time and money to organize this new adventure [business]

Question 13

BATER

Answer 13

The exchange of goods for other goods. It was the first type of trade

Question 14

Advantages of BATER

Answer 14

• flexibility
• no money involved
• utilizing the ideal resources to the fullest
• networking

Question 15

Disadvantages of BATER

Answer 15

• lack of trust worthiness
• no consumer protection
• no legal certification

Question 16

Money

Answer 16

Is anything that is commonly acceptable as instrument or medium of exchange

Question 17

History of money

Bathering

Answer 17

First of medium exchange/ had many disadvantages

Question 18

Metals

Answer 18

Gold,diamond problem to bulky/heavy

Question 19

Coins

Answer 19

More acceptable since they were hard wearing ,easily to carry and contained valuable metals

Question 20

Features of money

Answer 20

The commodity must acceptable
-everyone must be willing to accept it.
It must be portable
-one must be able to carry it around easily
It must be homogeneous
-look the same, it must be identical in looks, size and weight.
It must be durable
-it must be able to pass from hand to hand.

Question 21

Functions of money

Answer 21

As a medium of exchange
-everyone must be willing to accept it in exchange for goods and services
As standard of value
-the worth of goods or services is measured in money, which sets the price for the item
Money is a store of value
-money can be saved and used in the future. It makes saving possible and hence brings out investment

Question 22

Credit card

Answer 22

Credit

/ pay back at a later date/ banks barrows you money to be paid back.

Question 23

Debit card

Answer 23

Money removed directly from your account/ doesn’t have to be paid back because it’s your own money

Question 24

Tell-banking

Answer 24

A system for conduct banking over the telephone lines.

Question 25

E-commerce

Answer 25

Shopping online/ referred to as any business transaction that is done through the internet.

Question 26

Electronic transfer

Answer 26

Payments are transferred electronically from one bank account to another

Question 27

Bills of exchange

Answer 27

Is a written order for one person to another. Instructing the person receiving money to pay a specific sum of money at a specific time in the future/

A payment method used in internal trade that allows the importers a period of credit

Question 28

Checks

Answer 28

Is a written instruction to a bank to transfer a certain sum to the account of the payee

Question 29

Money order

Answer 29

A money order is a gurented instrument for making payments issued by banks or post offices.

Question 30

Bank draft

Answer 30

Is a check drawn on the back itselfs. The bank has the authority to send checks for a banker

Question 31

Tele- graphic money transfer

Answer 31

An electronic means of transferring money form one bank account to another usually overseas