Functions of Money
The item is valued because it is in relatively scarce supply
What is scarcity
Written instruction to a bank to make payment on behalf of an account holder.
What is a cheque
The owner does not qualify for limited liability
What is a sole trader
Enough is produced for communal needs.
What is a traditional/subsistence economy
Converts raw materials into finished goods
What is Production Department
The item is taken as payment
This is used for payments such as the purchase of a car. This offers extra security that the money will be received.
What is a bank draft
At least one person must have unlimited liability.
What is a partnership
Industries are owned by the government.
What is command/planned
Attempts to ensure that goods meet customer requirements.
What is marketing department
The item is easy to carry around
What is portability
This allows individuals to make payments and allows them a specific time frame each month in which to repay outstanding balances.
What is a credit card
A partner who is not involved in day to day decision making but provides capital.
What is a sleeping partner
A combination of state planning with a free market
What is a mixed system
Secures funds for the business.
What is the finance department
The item is hard wearing and long lasting
What is durability
Transferring funds from one bank account to another without the intervention of bank staff
What is an electronic transfer
Formed by a group of people with similar interests to achieve a common objective
What is a co-operative
Businesses are owned by private individuals
What is a free/ capitalist economy
Deals with the welfare of workers
What is Human resources
The item consists of units so large sums can be broken down.
What is divisibility
This is used to transfer funds overseas.
What is Telegraphic money transfer
There may be restrictions on how they can operate under this type of business.
What is a franchise.
Decisions on what to produce is based on supply and demand
What is a capitalist/free economy.
Responsible for product development
What is Research and Development