Cameroon GCE O-Level Commerce key terms

The branch of business activity concerned with the buying, selling, and distribution of goods and services, including trade and the auxiliary services that support it, such as transport, banking, insurance, and communication.

The creation of goods and services to satisfy human wants. It includes extraction, manufacturing, construction, and the provision of services, and involves combining factors of production.

The splitting of a production process into separate tasks performed by different workers, so that each worker specialises in one task, increasing efficiency and output through repetition and skill.

The resources used to produce goods and services: land (natural resources), labour (human effort), capital (man-made aids to production), and enterprise (risk-taking and organisation). Each earns rent, wages, interest, and profit respectively.

Man-made resources used in the production of other goods and services, such as machinery, tools, buildings, and equipment. It does not include money itself, which is only capital when used to buy productive assets.

A business owned and controlled by one person, who takes all profits and bears unlimited liability for the debts of the business. It is the simplest and most common form of business organisation.

A business owned by two or more people, usually up to twenty, who share the capital, profits, and management according to a partnership agreement, and who generally have unlimited liability for the firm's debts.

A separate legal entity formed by registration, with its own name and identity, owned by shareholders and managed by directors. It can own property, sue and be sued, and has limited liability for its members.

A legal protection meaning that the owners of a business (shareholders) can lose only the amount they invested, and are not personally responsible for the company's debts beyond that amount.

A legal position in which the owner or owners of a business are personally responsible for all business debts, and may have to sell personal assets to pay them.

A business owned and democratically controlled by its members, who share the benefits according to cooperative principles. Common types include consumer, producer, and credit cooperatives.

A business owned and operated by the government, usually to provide essential goods or services, to control strategic industries, or to serve the public interest rather than to maximise profit.

Trade carried out within the boundaries of a single country, involving the buying and selling of goods and services between individuals and businesses in the same nation. It is also called internal or domestic trade.

Trade between residents of different countries, consisting of imports (goods bought from abroad) and exports (goods sold abroad). It is also called international trade.

The difference between the value of a country's visible exports and the value of its visible imports over a period. A surplus occurs when exports exceed imports; a deficit occurs when imports exceed exports.

A complete record of all economic transactions between a country and the rest of the world over a period, including visible trade, invisible trade, and capital movements. It shows whether the country has an overall surplus or deficit.

The part of international trade that involves physical goods, such as exports and imports of raw materials, food, and manufactured products. It is recorded in the balance of trade.

International trade in services, such as banking, insurance, tourism, shipping, and remittances, which are not recorded as physical goods but still affect the balance of payments.

A trader who buys goods in large quantities from producers or importers and sells them in smaller quantities to retailers or other businesses, providing services such as storage, transport, and credit.

A trader who buys goods from wholesalers or producers and sells them directly to final consumers in small quantities, providing convenience, choice, and after-sales service.

The route or path through which goods pass from the producer to the final consumer, involving intermediaries such as wholesalers, retailers, and agents. It may be direct or indirect.

The business activity of identifying customer needs and satisfying them profitably through the marketing mix: product, price, place, promotion, and people. It includes market research, advertising, and selling.

The paid, non-personal communication of information about a product or service to persuade or inform potential customers, using media such as radio, television, newspapers, posters, and the internet.

Anything generally accepted as a medium of exchange, a measure of value, a store of value, and a standard for deferred payment. It facilitates trade and specialisation.

A financial institution that accepts deposits from the public, provides loans and credit, and offers services such as current accounts, savings accounts, and payment facilities. Banks include commercial and central banks.

The arrangement by which a buyer obtains goods or services now and pays for them later, or the amount of money lent by a bank. It involves trust and usually interest.

The written records and forms used in business transactions, such as invoices, receipts, delivery notes, credit notes, debit notes, statements of account, and cheques. They provide evidence and help control business activities.

A document sent by a seller to a buyer showing the details of goods or services supplied, including quantity, description, unit price, total amount due, and payment terms. It is a request for payment.

A document issued by a seller to a buyer to reduce the amount owed, usually because goods were returned or because an overcharge was made. It is the opposite of a debit note.

The process of transmitting information, ideas, or messages from a sender to a receiver through a chosen channel, with feedback to confirm understanding. In business, it may be internal or external, formal or informal.

A method of spreading risk in which an individual or business pays a premium to an insurer, who in return promises to compensate for specified losses, such as fire, theft, or accident, according to the policy terms.

The amount of money paid by the insured to the insurance company for cover against a specified risk over a stated period. It is usually paid monthly, quarterly, or annually.

The process of identifying, assessing, and controlling risks that could affect a business, using methods such as risk avoidance, reduction, retention, and transfer (for example, through insurance).

The movement of people, goods, and services from one place to another. It is an auxiliary service to trade that creates place utility and enables goods to reach consumers.

The compulsory payment of money by individuals and businesses to the government to finance public expenditure. Taxes may be direct (on income and profits) or indirect (on goods and services).

The study of how the government raises revenue (through taxes, fees, and borrowing) and spends it on public services such as education, health, roads, and defence. It includes budgeting and debt management.

Laws, agencies, and practices designed to safeguard buyers of goods and services against unfair trade practices, unsafe products, misleading advertising, and exploitation, and to provide redress for consumers.

The moral principles and standards that guide behaviour in business, including honesty, fairness, integrity, and social responsibility towards customers, employees, suppliers, and the community.

The rules and controls imposed by government on business activities to protect consumers, workers, and the environment, and to ensure fair competition. Examples include licensing, price controls, and health and safety standards.