terms and concept relating to business Flashcards
(34 cards)
what is enterprise?
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.
example of enterprise
Example: Shanzi has started a small restaurant. The enterprise should be very successful because she is such a great chef.
what is entrepreneurship?
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.
what is barter?
The exchange of goods and services without the use of money
tangible goods
items that can be seen/touched
eg: food items
intangible
good that cannot be seen or touched
eg: service and entertainment
instruments of exchange
Bank Draft - a cheque from one bank to another
direct satisfaction
producing for one’s own use
What is a written order by one party to a pay a certain sum by a certain time
bill of exchange
divisibility is?
enables small transactions to take place
early economies could be described as?
subsistence economics
functions of money
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
characteristics of money
•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
what is a bank draft
a cheque from one bank to another
what is a cheque
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).
internet banking
allows customers to bank anytime of the day from their offices ,home or any other location via cellphone and laptops
subsistence/ traditional economy
a person producing their own goods for their own use or family use
What is an economy
economy refers to the society as a whole
disadvantage of barter
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
money before
beads , shells, elephant tucks , feathers and grain
characteristics of money
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.
bill of exchange
A bill of exchange is usually used to facilitate international trade between an importer and an exporter of a commodity.
coins and bank notes
credit cards
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.
