BGCSE Commerce 0598 key terms

The buying, selling and moving of goods and services between producers and consumers, together with the supporting activities such as banking, insurance, transport and advertising that make those exchanges possible.

The act of exchanging goods or services for money or for other goods, either within a country (home trade) or between countries (foreign trade).

A business owned and run by one person, who keeps all profits, bears unlimited liability for the debts and is not legally separate from the business.

A business owned by two or more people who share the capital, profits and work of the firm under an agreed arrangement, usually each carrying unlimited liability unless registered as limited partners.

A business that is a separate legal entity from its owners, so shareholders can lose only the money they invested and not their personal property when the company owes debts.

The protection that limits an owner's financial loss to the amount of capital invested in the business, leaving personal assets safe from company debts.

A legal position in which an owner is personally responsible for all business debts and may have to sell personal property to pay them.

A person who owns part of a company by holding shares, receiving dividends from profits and voting at general meetings on major decisions.

The part of a company's profit that is paid out to shareholders, usually as an amount per share, after the directors decide how much to distribute.

A business owned and controlled by its members, who pool resources and share benefits such as lower prices or shared marketing, with each member usually having one vote.

An arrangement in which one business pays a fee to use another firm's brand, products and proven operating methods under agreed rules.

The process of combining land, labour, capital and enterprise to create goods and services that satisfy people's wants.

The four resources used to make goods and services: land (natural resources), labour (human effort), capital (machinery, tools and money) and enterprise (the risk-taking organiser).

In production, the man-made resources such as machinery, tools, vehicles and buildings used to make other goods; in finance, money invested in or lent to a business.

The difference between the selling price of a product and the cost of the materials and components bought in to make it.

The route a product follows from producer to final consumer, commonly passing through wholesalers and retailers, with each stage adding cost and service.

A trader who buys goods in large quantities from producers and resells them in smaller amounts to retailers, often providing storage, delivery and credit.

A trader who sells goods or services directly to the final consumer, usually in small quantities and in a convenient location.

A large retail outlet divided into separate departments, each selling a different type of goods, all under one roof and one management.

A large self-service retail store selling mainly food, drink and household goods, usually organised by aisles with checkout counters at the exit.

Buying and selling goods or services over the internet, including online stores, electronic payments and home delivery of orders.

Anything generally accepted as payment for goods and services or as settlement of debts, serving as a medium of exchange, a measure of value, a store of value and a standard of deferred payment.

The direct exchange of goods or services for other goods or services without using money, which requires a double coincidence of wants.

The function of money that allows it to be handed over in return for goods and services, avoiding the need for barter.

Money that a law requires a creditor to accept when a debt is offered in payment, such as the notes and coins issued by a country's central authority.

The national bank that issues currency, holds the reserves of commercial banks, supervises the banking system and carries out monetary policy; in The Bahamas this is the Central Bank of The Bahamas.

A profit-making bank that accepts deposits from the public, lends money, and provides services such as current accounts, savings accounts and money transfers.

The price paid for the use of borrowed money, usually expressed as a percentage of the amount borrowed or saved over a period of time.

The movement of funds from one person or account to another, often through banks, remittance agencies or electronic payment systems.

The money a business needs to start up, operate and expand, obtained from owners' savings, retained profits, loans, share issues or trade credit.

A sum of money lent by a bank or other lender that must be repaid, usually with interest, over an agreed period.

A banking arrangement that lets a current account holder withdraw more money than the account holds, up to an agreed limit, with interest charged on the amount used.

The amount left when total costs are subtracted from total revenue; it rewards the owner for taking risk and can be kept or reinvested.

A contract in which a person or business pays regular premiums to an insurer, who agrees to pay compensation if a stated loss or damage occurs.

The regular amount paid by the insured person or business to an insurance company to keep a policy in force.

The chance of loss or harm from events such as fire, theft, accident or bad weather; businesses try to reduce it, avoid it or transfer it through insurance.

Laws, agencies and practices that safeguard buyers against unsafe goods, false advertising, unfair prices and dishonest selling, and that give them a route to complain and obtain redress.

The entitlements of buyers, such as the right to safety, to be informed, to choose and to be heard when a product or service is unsatisfactory.

The remedy a consumer can obtain when a seller breaks the rules, such as a refund, replacement, repair or compensation.

The compulsory payments collected by government from individuals and businesses to fund public services, raised through taxes such as customs duty, value added tax and income tax.

A tax charged by a government on goods entering or leaving the country, which raises revenue and can protect local producers from cheaper imports.

Services provided by government for the community, often funded by taxation, such as education, health care, roads, police and postal services.

Rules and controls set by government that businesses must follow, covering areas such as health and safety, licensing, prices, advertising and environmental standards.

A good or service bought from another country and brought into the buyer's country.

A good or service produced in one country and sold to a buyer in another country.

The difference between the value of a country's exports and the value of its imports over a period; a surplus means exports exceed imports, a deficit means imports exceed exports.

A record of all money entering and leaving a country over a period, covering trade in goods and services as well as transfers and financial flows.