Barter

Is the exchange of goods without the use of money.

EG. Services
Assets.

Money
is a medium of exchange that is centralized, generally accepted, recognized, and facilitates transactions
of goods and services.
The characteristics of money are durability, portability, divisibility, uniformity, limited supply, and
acceptability.
Three functions of money
First: Money is a store of value. ...
Second: Money is a unit of account. ...
Third: Money is a medium of exchange.

What is an Economic System?

An economic system is a means by which societies or governments organize and distribute available
resources, services, and goods across a geographic region or country. Economic systems regulate the
factors of production, including land, capital, labor, and physical resources.
Eg There are three main types of economies: free market, command, and mixed. The chart below
compares free-market and command economies.

Globalization
Is the process by which people and goods move easily across borders.

Production
Primary industries focus on converting and extracting raw materials. Secondary industries perform
the function of converting and processing raw materials into usable goods. Tertiary industries provide
services that are intangible in nature.

Production Levels
Subsistence

This is the lowest level of production. Subsistence productions refers to output from the
production process that is just enough for the survival

Domestic Production

Domestic production refers to production that is more than survival level. It provides
output that is enough to satisfy domestic needs and wants.Surplus or Export

This level of production is adequate to supply local demand and for export.
Private & public enterprise
Public sector organizations are owned, controlled and managed by the government or other state-
run bodies. Private sector organizations are owned, controlled and managed by individuals, groups
or business entities.

Limited liability
Limited liability is a type of legal structure for an organization where a corporate loss will not exceed the
amount invested in a partnership or limited liability company.

Special business relationships

Cooperatives- Cooperatives are businesses owned by “member-owners”. Co-ops are democratically
controlled by their member-owners, and unlike a traditional business each member gets a voice in how
the business is run.

Franchise-A franchise is a joint venture between a franchisor and a franchisee. The franchisor is the
original business. It sells the right to use its name and idea. The franchisee buys this right to sell the
franchisor's goods or services under an existing business model and trademark.

Management
The four functions are:
Planning involves the planning of decision making.
Organizing includes appropriate coordination between planning and resources.
Leading involves motivating the employees to achieve organizational goals.
Controlling is related to monitoring and evaluation.

Leadership
Types of Leadership Styles
Autocratic.
Democratic.
Laissez-faire.
Transformational.

Stakeholders
Common examples of stakeholders include employees, customers, shareholders, suppliers,
communities, and governments.
Contracts
differences between a Simple & a Specialty Contract & Contract of record. A simple contract can be
made orally, in writing or by the implications deemed from the actions of the parties. A specialty
contract must be signed by the parties sealed, for example with a company seal and finally it must be
delivered.

Foeerign trade documents

Documents Required for Exporting
Proforma Invoice.
Commercial Invoice.
Packing List.
Certificates of Origin.
Certificate of Free Sale.
Shipper's Letter of Instruction.
Inland Bill of Lading.
Ocean Bill of Lading.

Insurance
In insurance, there are 7 basic principles that should be upheld, ie Insurable interest, Utmost good faith,
proximate cause, indemnity, subrogation, contribution and loss of minimization.

Types of insurance
Home or property insurance, life insurance, disability insurance, health insurance, and automobile
insurance are five types that everyone should have.

Industries
Industrial linkage can be broadly defined as the contacts and flows of information and/or materials
between two or more industrial sectors or firms.

A cottage industry is a small manufacturing business that is owned and operated by an individual or a
family, typically operating out of a home rather than a purpose-built facility

Supply chain
Producers-Market-Consumers.

Distribution chain
Producer-Wholesaler-Retailer-Consumer
Methods of transportation

1. Road.
The most common types of freight transport, road shipping is available in most countries.

2. Ocean
Ninety percent of global shipping is done over the ocean. For large equipment or container loads, there
is no other way to ship economically.

3. Air.
Air cargo is by far the fastest shipping method. However, it is also the most expensive, especially if your
shipment is heavy or bulky.

Banks
Central bank can be called the apex bank, which is responsible for formulating the monetary policy of an
economy. Commercial banks, on the other hand, are those banks that help in the flow of money in an
economy by providing deposit and credit facilities.

Finance
Short-term financing is typically used to cover short-term needs like materials purchases, inventory, and
cash flow fluctuations. Long-term financing is typically credit extended for periods over two.

Savings & investments

Saving can also mean putting your money into products such as a bank time account (CD). Investing —
using some of your money with the aim of helping to make it grow by buying assets that might increase
in value, such as stocks, property or shares in a mutual fund.