The Nature Of Business Flashcards
Enterprise
Used to describe an undertaking or activity with some degree of difficulty or risk
Trade
This means and selling. A business with engaged in trade in order to make a profit
Organization
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
Economic
This is a system that allocates or shares resources by deciding what should be produced and for whom
Producer
This is a person or business that makes or creates rules or services. Usually the goal of the producers to make a profit
Consumer
This is the person or group that buys goods and services to satisfy wants
Exchange
The giving of wants, things and receiving of another. The things exchange are usually of similar value
Goods
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.
Services
This means work that is done for an another distance or benefits given services or intangible unlike goods.
Market
A market is any situation in which buyer and seller meet or communicate in other exchange goods and services
Entrepreneurship
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
Entrepreneur
A individual who identifies the opportunity and risk the time and money to organize this new adventure [business]
BATER
The exchange of goods for other goods. It was the first type of trade
Advantages of BATER
- flexibility
- no money involved
- utilizing the ideal resources to the fullest
- networking
Disadvantages of BATER
- lack of trust worthiness
- no consumer protection
- no legal certification
Money
Is anything that is commonly acceptable as instrument or medium of exchange
History of money
Bathering
First of medium exchange/ had many disadvantages
Metals
Gold,diamond problem to bulky/heavy
Coins
More acceptable since they were hard wearing ,easily to carry and contained valuable metals
Features of money
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.
Functions of money
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
Credit card
Credit
/ pay back at a later date/ banks barrows you money to be paid back.
Debit card
Money removed directly from your account/ doesn’t have to be paid back because it’s your own money
Tell-banking
A system for conduct banking over the telephone lines.
E-commerce
Shopping online/ referred to as any business transaction that is done through the internet.
Electronic transfer
Payments are transferred electronically from one bank account to another
Bills of exchange
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
Checks
Is a written instruction to a bank to transfer a certain sum to the account of the payee
Money order
A money order is a gurented instrument for making payments issued by banks or post offices.
Bank draft
Is a check drawn on the back itselfs. The bank has the authority to send checks for a banker
Tele- graphic money transfer
An electronic means of transferring money form one bank account to another usually overseas
