Assam ASSEB HSLC Elective Commerce key terms

The sum of external forces-economic, social, legal, technological and competitive-that surround a firm and shape its decisions but lie largely outside its control.

The organised activity of producing goods and services and moving them from producers to consumers, including trade and the aids to trade such as banking, transport and insurance.

A business owned, financed and managed by one person, who receives all profits and bears unlimited personal liability for the debts of the firm.

A relationship between two or more persons who agree to carry on a business together and share its profits, governed normally by a written deed or the Indian Partnership Act, 1932.

The written agreement among partners setting out capital contributions, profit-sharing ratio, duties, admission and retirement rules, and the method of settling disputes.

An artificial legal person registered under company law, having a separate identity from its members, perpetual succession and liability of members normally limited to unpaid share capital.

The principle that an owner or shareholder can lose only the amount invested or agreed to be contributed, and is not personally answerable for the firm's debts beyond that.

A position in which the owner's personal assets may be used to pay business debts when the firm's own resources fall short, common in sole proprietorships and general partnerships.

A voluntary association of persons registered to promote their common economic interest, run on the principle of one member one vote and distributing surplus according to patronage rather than capital.

The money a company raises by issuing shares, divided into units of fixed nominal value and shown on the liabilities side of its balance sheet as owners' funds.

A written acknowledgement of a loan to a company, carrying a fixed rate of interest and usually repaid on a stated date, with holders ranking ahead of shareholders on winding up.

The funds tied up in day-to-day operations-stock, debtors, cash and short-term expenses-calculated as current assets minus current liabilities and needed to keep the business running.

Money invested in long-lasting assets such as land, buildings, plant and machinery, which are used repeatedly over several years rather than consumed in one operating cycle.

Profits kept in the business after dividends are paid, forming an internal, interest-free source of finance that strengthens the firm's capital base over time.

Buying and selling of goods and services within the boundaries of one country, using the domestic currency and subject to a single set of tax and commercial laws.

Exchange of goods and services across national borders, involving customs duties, foreign exchange, shipping documents and often greater risk than domestic dealings.

A trader who buys goods in large quantities from producers and resells them in smaller lots to retailers, providing storage, credit and market information in the chain.

A trader who sells goods in small quantities directly to final consumers, linking the wholesale stage to household buyers and often adding services such as display and home delivery.

A document issued by a shipowner acknowledging receipt of goods for carriage, serving as a contract of transport, a receipt and sometimes a document of title.

The apex monetary authority of a country, which issues currency, controls credit, acts as banker to government and commercial banks, and holds foreign exchange reserves.

A financial institution that accepts deposits from the public, lends to borrowers, and provides payment and agency services with the aim of earning profit.

A facility allowing a current account holder to withdraw more than the balance up to an agreed limit, with interest charged on the amount actually used.

A contract in which one party, for a premium, agrees to compensate another for a specified loss, spreading the risk of many policyholders over the insurer.

The consideration paid by the policyholder to the insurer, calculated from the sum assured, the likelihood of loss and the expenses of running the cover.

A financial relationship with the subject matter of insurance such that the insured gains from its safety and suffers measurable loss from its damage; it must exist for a valid policy.

The activity of storing goods safely in a dedicated place until they are needed, creating time utility, stabilising prices and enabling bulk purchase and seasonal supply.

The movement of goods and persons from one place to another, creating place utility and making large-scale production and wide distribution of goods possible.

The transmission of information, orders and ideas between parties through letters, telephone, internet or other media, supporting decisions and coordination in business.

Paid, non-personal communication about a product or service, delivered through a chosen medium by an identified sponsor to inform, persuade or remind a target audience.

The personal, face-to-face skill of persuading a prospective buyer to purchase, involving product knowledge, listening, handling objections and closing the sale.

A person who buys goods or hires services for personal use rather than for resale or commercial production, and who is protected by consumer protection law.

The legally recognised entitlements of buyers, including safety, information, choice, being heard, redressal and consumer education, enforceable against unfair trade practices.

A quasi-judicial forum established under consumer protection law to hear complaints of defective goods or deficient services and award compensation or replacement.

The process of identifying an opportunity, assembling resources and bearing the risk of starting and running a new venture, often producing innovation and employment.

A firm whose investment in plant and turnover fall below limits set by government policy, typically managed by its owners and serving a local or regional market.

The accounting method in which every transaction is recorded with equal debits and credits in two or more accounts, keeping the books in balance.

The book of original entry in which transactions are first recorded in date order, showing the accounts debited and credited with a brief narration.

The principal book of accounts where entries from the journal are posted account by account, allowing the balance of each account to be found.

A statement listing the debit and credit balances of all ledger accounts on a given date to test whether total debits equal total credits.