Rinna

• Loss


  The result of selling an item or offering a service for less than it had cost the business
• Profit


  The money earned by a business when its total revenue exceeds its total expenses
• Entrepreneurship


  The practice of identifying a new innovation or opportunity, organizing the financing, other resources and taking the risk in hope of creating value
• Barter


  A system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange such as money
• Profit


  Financial gain or benefit obtained when revenue earned exceeds costs such as expenses and taxes
• Loss


  Occurs when a company's expenses or costs exceed its revenues, meaning the business is not making enough money
• Trade


  The buying and selling of goods and services between businesses. A business will engage in trade to make a profit
• Organization


  A group of people arranged in a certain way to carry out specific activities in order to achieve a shared goal or objective. A business is an organization
• Economy


  The system by which goods and services are produced, distributed and consumed within a country or region
• Enterprise


  A term used synonymously with business or company. It is used to describe an undertaking or activity with some degree of difficulty or risk
• Organization


  • Hospitals
• Barter


  • Butter can be exchanged for bread
• Enterprise


  • A paper or local chocolate company
• Different countries may make different decisions about their economies
• Barter System


  The exchange of one thing for another without the use of money
• Direct Production


  • Early people provided all their needs themselves without the help of others
• Subsistence Economy


  Providing just enough to survive
• Improving way of living

  1. Building permanent homes

  2. Making tools to satisfy their way of living

  3. Producing more goods than required/needed

  4. Resulting in a surplus
• Barter


  The exchange of one thing for another without the use of money
• Advantages of Barter


  • Allowed people to get rid of any surplus of goods and obtain a wide variety of things needed
  • Facilitated people to specialise in producing the thing they could do best
  • Increased productivity and resulted in more surplus and further wealth
• Disadvantages of Barter


  • Double coincidence of wants: Individuals must have what another person needed and be prepared to exchange it
• Money


  Anything that is generally accepted as a medium of exchange and used to purchase goods and services. Money is a legal tender that means, its use is acceptable as a means of payment.
• Barter system


  • A method of exchange in which one good or service was exchanged for another before a common medium of exchange was developed
  • Allowed farmers and hunters to swap surplus goods, beads, or shells in exchange for goods they could not purchase themselves (Subsistence economy)
  • Had several limitations such as the double coincidence of wants, exchange rates, divisibility of goods and storage of wealth
• Development of a medium of exchange

  1. To overcome the disadvantages of the barter system

  2. Gold and silver were minted and used as money
• Modern means of exchange

  Notes, coins, bills of exchange, credit cards, debit cards, cheques
• Characteristics/features of money


  • Acceptable (everyone must be willing to accept it)
  • Durable (must not wear out easily)
  • Homogenous (identical in look, size and weight)
  • Divisible (capable of being broken up into smaller amounts)
  • Portable (easy to carry around)
  • Scarce (only available in small quantities)
• Functions of money


  • Medium of exchange (everyone must be willing to accept it in exchange for goods and services)
  • Measure of value (can be used to determine prices)
  • Store of value (can be saved and used in the future)
• principles of Business
• Tople. The private and public sectors


  The private and public sectors is that part of the economy which Comprises of business owned and operated by private individuals. The public sectors is that part of the economy, which Comprises of Business owned and operated by the government.
• Differences between private and public sectors

  • Ownership
  • Aims
  • Sources finance
• Private Sector


  private individuals, to make profits, Distribution of profits profits and loans in other sectors
• Types of products and business in private sector


  • Goods and Services
  • Sole trader
  • Partnership
  • Company
  • Franchise
  • Cooperatives (etc)
• Dividends paid to shareholders
• Financed by Customers
• Public Sector


  The government
• Purpose of the public sector

  • To provide Social Services
• Public goods provided by the government

  • Street lights
  • Health care
• Ministry of Education, Wealth & Agriculture (et)
• Forms of Business Organization

  • Sole trader
  • Partnership
• Sole trader


  A business owned and operated by one person