The Notion of Commerce and Enterprise

Vocabulary flashcards covering core definitions, branches of trade, auxiliaries, growth factors in Cameroon, enterprise types, stages of production, elements of production, and organizational structures from the lecture notes.

Commerce

A subject that deals with the study of trade and its auxiliary activities, focusing on how buying and selling may effectively take place.

Trade

The buying and selling of goods and services, subdivided into home trade and foreign trade.

Home trade

The buying and selling of goods and services within a country.

Wholesale trade

The part of home trade involving buying from the manufacturer in bulk and selling to retailers in smaller quantities.

Retail trade

The part of home trade involving buying in smaller quantities from the wholesaler and selling in bits to the final consumers.

Foreign trade

The buying and selling of goods and services in and out of the country or across international boundaries; also known as international trade.

Import trade

The part of foreign trade that involves buying goods and services from foreign countries into the country.

Export trade

The part of foreign trade that involves selling goods and services out of the country to foreign countries.

Entreport trade

The part of foreign trade that involves the importation of goods for re-exportation (e.g., goods imported into Cameroon and later exported to Chad).

Auxilliaries to trade

Commercial activities that make trade efficient or effective, including transport, advertisement, banking, warehousing, insurance, and communication.

Transport

The movement of persons and goods from a place of origin to a destination, facilitating movement from areas of surplus to areas of scarcity.

Advertisement

An act of creating awareness about an existing product in the market to stimulate or increase demand.

Banking

The act of accepting deposits, granting loans, and safeguarding valuable items to facilitate trade.

Warehouse

Large buildings used to store goods awaiting demand, securing them against damages from bad weather and pilferage (theft).

Insurance

An agreement between the insured and the insurer where the insurer compensates the insured in case of damage or risk.

Communication

The act of transmitting information from one place or person to another to inform about the needs and activities involved in trade.

Enterprise

Any establishment that carries out economic activities of production and distribution of goods and services for profit or non-profit motives.

Private enterprise

An enterprise owned by private individuals.

Public enterprise

An enterprise owned by the government.

Parastatals

Enterprises owned jointly by private individuals and the government.

Primary stage of production

The first stage of production involving the extraction of raw materials from the surface of the earth, such as farming, mining, forestry, fishing, and hunting.

Secondary stage of production

The stage of production involving the transformation of raw materials into semi-finished or finished goods.

Tertiary stage of production

The stage of production dealing with the distribution of services that enable products to reach the final consumer.

Quaternary stage of production

The stage of production dealing with the provision of highly skilled services such as computer expertise, chartered accountancy, and research.

Land

Natural resources used for the production of goods and services, also known as a free gift of nature, whose reward is rent.

Labour

Any mental or physical effort used in the production of goods and services, whose reward is wages or salary.

Capital

Man-made resources used for the production of goods and services, whose reward is interest.

Entrepreneur

Managerial resources who coordinate and organize the production process, whose reward is profit.

General assembly

The supreme decision-making organ of an enterprise where policies are voted on and members of the Board of Directors are elected.

Board of directors (BOD)

An enterprise organ headed by a chairperson that sets meeting agendas, adopts internal rules, determines important strategies, and approves worker promotions and salaries.