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Commerce Exam Term 1 > Key Terms/ Definitions > Flashcards

Flashcards in Key Terms/ Definitions Deck (24):
1

Define budget

a list of income and likely expenditures

2

Define business

any organisation that produces and sells goods and services in order to make a profit.

3

Define income

money received on a regular basis from work, property, business, investment or welfare payments

4

Define labour force

people aged 15 and over who are either employed or unemployed

5

Define profit

what remains after all business expenses are deducted from sales revenue

6

Define goods / services

items that you can see or touch / things done for you by others

7

Define comparison shopping

contacting a number of sellers to obtain the best deal

8

Define scam

an illegal business practice

9

Define EFTPOS

Electronic Funds Transfer Point of Sale: based on the use of payment cards at payment terminals located at points of sale.

10

Define acceptable quality

a product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable

11

Barter

the swapping or exchanging of one good for another

12

caveat emptor

a term meaning "let the buyer beware"

13

commerce

the buying and selling of goods and services between individuals and businesses

14

gross income

income before tax deductions

15

net income

income after tax deductions

16

durable good

a good not frequently purchased and has long-life span

17

disposable income

income after tax has been deducted

18

consumer sovereignty

the power to decide which goods/services survive in the marketplace

19

contract

legally binding agreement

20

depreciation

a reduction in the value of an asset over time, e.g. petrol depreciates 2% every year

21

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

22

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.

23

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).

24

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.