Principles of Business Revision Guide for CSEC Examinations

Flashcards covering key terms and concepts from the Principles of Business revision guide for CSEC exams.

barter

An economic system where needs and wants are directly satisfied from nature without using money.

double coincidence of wants

A situation in barter where one person must have what the other person wants for an exchange to occur.

money

Any commodity accepted as a measurement of value and a medium of exchange.

instruments of exchange

Various means through which transactions are conducted, including barter, bills of exchange, cheques, and electronic transfers.

private sector

The part of the economy owned and controlled by private individuals or firms, aimed at making a profit.

public sector

The part of the economy owned and operated by the government for the benefit of the public.

sole trader

A type of business organization owned and operated by a single individual, bearing total responsibility for debts and profits.

partnership

A business organization where two to twenty persons share ownership, responsibilities, profits, and losses.

corporation

A legal entity that is separate from its owners, owned by shareholders who share in its profits.

entrepreneur

A person who identifies business opportunities and takes risks to establish and operate a business.

economic system

A method by which society organizes its scarce resources for the production of goods and services.

marketing mix

The combination of four key elements: product, price, place, and promotion used to market a product.

consumer behaviour

The study of how individuals make decisions to spend their available resources on consumption-related items.

supply chain

The entire system of production, processing, and distribution of goods from supplier to consumer.

financial institution

An organization that provides financial services, including loans, deposits, and investment services.

insurance

A contract in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.

taxation

The process through which governments collect money from individuals and businesses to fund public services.

foreign direct investment

An investment made by a company or individual in one country in business interests in another country.

balance of trade

The difference between the value of a country's exports and imports over a specific period.

balance of payments

A summary of all transactions made between entities in one country and the rest of the world over a specific time period.

stakeholders

Individuals or groups who have an interest or investment in a business and are affected by its operation.