Commerce Key Terms Glossary

• Barter - The swapping or exchanging of one good for another
• Price - The amount of money a consumer is prepared to offer in exchange for a good or service
• Budget - A list of income and likely expenditures
• Comparison Shopping - Researching a number of sellers to obtain the best deal
• Consumer - Someone who purchases goods or services to satisfy needs and wants
• Contact - A legally binding agreement
• Disposable income - The amount of money that households have available for spending and saving after income tax has been deducted
• Distribution Chain - The businesses that are involved in getting the product to the customer
• Needs - Things that are necessary for survival

  
  

  These include:

  • Water
  • Food
  • Shelter
  • Clothing
• EFTPOS - Electronic funds transfer at point of sale
• Fixed expense - Expenses that are the same amount everytime e.g. rent, phone bill
• Impulse Buying - Buying something without giving much thought as to whether you really need it
• Durable Goods - Items that can be used many times
• Variable Expenses - Expenses that change overtime, and do not occur on a regular basis
• Services - Things done for you by others
• Wants - Things that are not essential for survival but we would like to have
• Non-durable goods - Items that can only be used once
• Profit - What remains after all business expenses are deducted from sales revenue
• Redress - To set right
• Online shopping - Purchasing products from over the internet
• Retailer - A business that sells products directly to consumers
• Goods - Items that you can see or touch
• Scam - A dishonest scheme or fraud
• Labour - The human skills and effort required to produce goods and services
• Income - Money received on a regular basis from work, property, business or investment
• E-Commerce - The buying and selling of information, goods and services via the internet
• Commerce - The buying and selling of goods and services between individuals and businesses
• Manafacturer - A person or business that makes goods
• Unconscionable act - Any practice by a seller that is just not reasonable and often illegal
• Acceptable Quality - What would normally be expected for the product i.e. a product fit for purpose, acceptable in appearance and finish, free from defects, safe and durable for its purpose