Nature of Business
define barter
direct exchange of goods or service for other goods or service without the use of money.
define the term partnership
an association of two to 20 persons who establish a business with a common view of maximizing profits.
Define Economic System
A system put in place by the government of a country to allocate scarce resources for the production of goods and services to satisfy needs and wants.
why should money be scarce
to be able to control the availability of it and how much in use
identify 2 advantages of barter
Trading could take place without the use of money
Surplus products were disposed of through the barter system
Simplest form of trade
what are the maximum number of persons to a private limited company
50
What is the difference between the free market and command economy
the free market economy is controlled by private individuals and consumers
in the planned economy all the economic decisions are made by the government.
the fee paid over by franchisee to franchisor is called
royalty
what is double coincidence of wants?
a person had to find someone else who who wanted what he/she had to exchange and that other person had to have what was needed before the exchange could take place.
which type of business can have its stock traded on the stock market
public limited company
state the difference between the private vs public sector
the public sector consist of enterprises run and owned by the government while private sector consist of enterprises run and owned by private individuals.
what is the difference between a debit card and a credit card
A credit card facility is actually a loan given to a customer and thus it is repaid at an interest. A debit card is issued against a customer’s account balance and is therefore not a loan.
list 4 forms of Business Organizations
sole trader, partnership, private limited company, public limited company and franchise, cooperatives
List the types of economic systems
Planned/command economy
free market
mixed and traditional
list the main functional areas of a business.
Marketing, production, finance, HR, and research and development
list 5 instruments of payments
Cheques, debit card, credit card, bank draft, money order, telebanking, electronic transfer, internet banking, e-commerce
state the diffrence between limited vs unlimited liability
shareholders are only liable for the amounts they have invested while with unlimited you will be liable for amounts invested along with personal assets.
what are the characteristics of money
Portable, acceptable, durable, divisible, homogenous and stable value