terms and concept relating to business

Question 1

what is enterprise?

Answer 1

Enterprise- The word enterprise could simply mean a ‘business’. Generally, it is used to describe an undertaking or activity with some degree of difficulty or risk.

Question 2

example of enterprise

Answer 2

Example: Shanzi has started a small restaurant. The enterprise should be very successful because she is such a great chef.

Question 3

what is entrepreneurship?

Answer 3

Entrepreneurship- is the practice of identifying a new innovation or opportunity, organizing the financing and other resources, and taking the risk in the hope of creating new wealth. The entrepreneur is the individual who takes the time to identify the opportunity and risk the time and money to start this new adventure.

Question 4

what is barter?

Answer 4

The exchange of goods and services without the use of money

Question 5

tangible goods

Answer 5

items that can be seen/touched
eg: food items

Question 6

intangible

Answer 6

good that cannot be seen or touched
eg: service and entertainment

Question 7

instruments of exchange

Answer 7

Bank Draft - a cheque from one bank to another

Question 8

direct satisfaction

Answer 8

producing for one’s own use

Question 9

What is a written order by one party to a pay a certain sum by a certain time

Answer 9

bill of exchange

Question 10

divisibility is?

Answer 10

enables small transactions to take place

Question 11

early economies could be described as?

Answer 11

subsistence economics

Question 12

functions of money

Answer 12

medium of exchange- money can be used to purchase goods and services easily

store of a value- money can be put away or saved

standards of value- the worth of goods and services are measured in money

Question 13

characteristics of money

Answer 13

•Acceptability- must be readily accepted by persons.
•divisibility- can be broken down into smaller parts
•difficulty to forge-shouldn’t be easy to duplicate
•profitability- should be easy to move from one place to another

Question 14

what is a bank draft

Answer 14

a cheque from one bank to another

Question 15

what is a cheque

Answer 15

a written order by the drawer(the maker of the bill of exchange) to the drawee( usually the bank responsible for following the drawer’s instructions) to pay a specific amount from your bank acc to to a payee (person entitled to payment by the drawee as a result of instructions made by the drawer).

Question 16

internet banking

Answer 16

allows customers to bank anytime of the day from their offices ,home or any other location via cellphone and laptops

Question 17

subsistence/ traditional economy

Answer 17

a person producing their own goods for their own use or family use

Question 18

What is an economy

Answer 18

economy refers to the society as a whole

Question 19

disadvantage of barter

Answer 19

indivisibility of goods-some commodities find it difficult to trade as it was hard to divide them into smaller parts

inability to store wealth- goods exchanged could not be stored for future use as some commodities were easily spoiled

Question 20

money before

Answer 20

beads , shells, elephant tucks , feathers and grain

Question 21

characteristics of money

Answer 21

It is portable- It can be easily transported from one point to another.

It is divisible- It can be divided into smaller or fractional units. Example: cents.

It is acceptable- It is accepted by people in a country in exchange for goods and services.

It is durable-Coins and bank notes are designed to last, and any worn bank notes are replaced.

It is scarce-It is limited or restricted in supply.

It is homogenous-Coins and bank notes are similar in appearance and feel.

Question 22

bill of exchange

Answer 22

A bill of exchange is usually used to facilitate international trade between an importer and an exporter of a commodity.

Question 23

coins and bank notes

Question 24

credit cards

Answer 24

A card used to make payments on credit. The user is effectively borrowing money (from a finance house which is usually owned by the bank) to make payment. Users therefore buy goods and pay for them later.

Question 25

debit cards

Answer 25

Details of the card are read by the card machine, and funds are transferred directly and immediately from the user’s account to the person’s account they are paying.

Question 26

electronic transfer

Answer 26

This involves the electronic transfer of money from one account to another.

Question 27

money order

Answer 27

This is used as a method of payment which is sold by the bank to persons who wish to make overseas payment for good and services.

Question 28

tele banking

Answer 28

Tele-banking refers to making banking transactions using computer network

Question 29

e-commerce

Answer 29

e-commerce refers to trading of goods using online communications.

Question 30

mixed economic

Answer 30

somethings are own by the government and some owned by individuals

Question 31

private sector

Answer 31

businesses owned by individuals to make a profit

Question 32

public sector

Answer 32

enterprises and organizations owned by the government for public use

Question 33

partnership

Answer 33

a business owned by 2 to 20 persons

Question 34

co-operatives

Answer 34

a business that consist of a group of individuals that have shared interests or objectives