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Commerce

The document outlines key concepts related to commerce, including production processes, types of services, and the structure of businesses. It defines various sectors of the economy, such as primary, secondary, and tertiary, as well as concepts like globalization, specialization, and the chain of production. Additionally, it explains different business forms, including sole traders, partnerships, and limited companies.

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A Boi
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0 views3 pages

Commerce

The document outlines key concepts related to commerce, including production processes, types of services, and the structure of businesses. It defines various sectors of the economy, such as primary, secondary, and tertiary, as well as concepts like globalization, specialization, and the chain of production. Additionally, it explains different business forms, including sole traders, partnerships, and limited companies.

Uploaded by

A Boi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Commerce

Production-
Production is the process of converting resources goods and services

Manufacturing-
Manufacturing is the process of converting raw materials into tangible goods

Direct services-
Services aimed directly at the consumers

Commercial services-
Commercial services are activities such as transportation

Distribution-
The delivery of something to other people or places

Commerce-
Activities that assist the exchange and distribution of goods and services

Advertising-
Communication between a business and its consumers where the business encourages the consumers
to buy their products

Labor-
The people used in the production

Fixed capital-
The stock of man-made resources such as machines

Working capital-
Resources used up un the production

Entrepreneur-
Entrepreneurs are people who takes the risk of involving their own money into a business venture

Chain of production
Chain of production has the different stages of production needed to produce most products

Primary sector-
Primary sector involves in the extraction of raw material from earth

Secondary sector-
Secondary sectors involve in converting raw materials into finished or semi-finished goods

Tertiary sector-
Tertiary sector involves in the production of services

Industrialization-
Industrialaztion is the growth in the manufacturing sectors
Specialization-
Specialization is the production of a limited range of goods by individuals, firms, and regions or countries

Division of labor
Division of labor is the process of breaking down the production process into smaller parts

Globalization-
Globalization is the spread of trade technology, information and jobs across national border and cultures

Intermediary-
Business that acts as a link between the buyers and sellers in the chain of distribution

Distributor-
Distributors are people who supply goods to the retails

Public sector-
Public sectors are organizations that provide goods and services in the economy

Private sector-
Private sectors are owned by individuals or a group of individuals

Unincorporated businesses-
Unincorporated businesses are businesses that have no legal difference from owner and the business

Incorporated businesses-
Incorporated businesses are businesses that have a separate legal from its owners

Limited companies-
Limited companies are businesses that have a separate legal identity from its owners

Sole trader-
Sole traders are organization owned by a singular person

Corporative-
A private business that is owned and controlled by the people who uses its products, supplies and or
services

Dividend-
Dividend is the amount paid to the shareholders from profits

Partnership-
A business owned by between 2-20 people

Deed of partnership-
A legal document that states the official rights of partners

Limited partnerships-
A partnership where some partners contribute in capital but do not take place in the running of the
business

Sleeping partner-
A partner who invests capital ad takes share of the profit but does not take part in the running of the
business

Public limited companies-


A company that has its shares publicly available for purchase on the stock exchange

Prospectus-
A document produced by a company that wants the public to buy its shares

Flotation-
The process of company being able to sell its shares on the stock market for the first time

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