1.
Money
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The main functions of money are distinguished as, a medium of exchange, a unit of account, a store of value, and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered as money, Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender, the money supply of a country consists of currency and, depending on the particular definition used, one or more types of bank money. Bank money, which consists only of records, forms by far the largest part of money in developed countries. The word money is believed to originate from a temple of Juno, in the ancient world Juno was often associated with money. The temple of Juno Moneta at Rome was the place where the mint of Ancient Rome was located, the name Juno may derive from the Etruscan goddess Uni and Moneta either from the Latin word monere or the Greek word moneres. In the Western world, a prevalent term for coin-money has been specie, stemming from Latin in specie, meaning in kind. The use of methods may date back to at least 100,000 years ago. Instead, non-monetary societies operated largely along the principles of gift economy, when barter did in fact occur, it was usually between either complete strangers or potential enemies. Many cultures around the world eventually developed the use of commodity money, the Mesopotamian shekel was a unit of weight, and relied on the mass of something like 160 grains of barley. The first usage of the came from Mesopotamia circa 3000 BC. Societies in the Americas, Asia, Africa and Australia used shell money – often, according to Herodotus, the Lydians were the first people to introduce the use of gold and silver coins. It is thought by scholars that these first stamped coins were minted around 650–600 BC. The system of commodity money eventually evolved into a system of representative money and this occurred because gold and silver merchants or banks would issue receipts to their depositors – redeemable for the commodity money deposited. Eventually, these became generally accepted as a means of payment and were used as money. Paper money or banknotes were first used in China during the Song Dynasty and these banknotes, known as jiaozi, evolved from promissory notes that had been used since the 7th century. However, they did not displace commodity money, and were used alongside coins, in the 13th century, paper money became known in Europe through the accounts of travelers, such as Marco Polo and William of Rubruck
2.
Goods
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In economics, goods are materials that satisfy human wants and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods that are property, and services, which are non-physical. A good is an item that is useful to people but scarce in relation to its demand. In contrast, free goods, such as air, are naturally in abundant supply, commodities may be used as a synonym for economic goods but often refer to marketable raw materials and primary products. Although in economic theory all goods are considered tangible, in reality certain classes of goods, such as information, only take intangible forms. For example, among other goods an apple is an object, while news belongs to an intangible class of goods. Goods may increase or decrease their utility directly or indirectly and may be described as having marginal utility, some things are useful, but not scarce enough to have monetary value, such as the Earths atmosphere, these are referred to as free goods. In economics, a bad is the opposite of a good, Goods diversity allows for their classification into different categories based on distinctive characteristics, such as tangibility and relative elasticity. A tangible good like an apple differs from a good like information due to the impossibility of a person to physically hold the latter. Intangible goods differ from services in that goods are transferable and can be traded. Price elasticity also differentiates types of goods, an inelastic good is one for which there are few or no substitutes, such as tickets to major sporting events, original works by famous artists, and prescription medicine such as insulin. Complementary goods are generally more inelastic than goods in a family of substitutes and this is because hamburger buns and beef are complementary goods. It is important to note that goods considered complements or substitutes are relative associations, the following chart illustrates the classification of goods according to their exclusivity and competitiveness. Goods are capable of being delivered to a consumer. Goods that are economic intangibles can only be stored, delivered, Goods, both tangibles and intangibles, may involve the transfer of product ownership to the consumer. Services do not normally involve transfer of ownership of the service itself, for example, distributing electricity among consumers is a service provided by an electric utility company. While the service is a process that remains in its entirety in the ownership of the service provider. The consumer becomes electric energy owner by purchase and may use it for any lawful purposes just like any other goods, fast-moving consumer goods Final goods Intangible asset Intangible good List of economics topics Goods and services Service Tangible property Bannock, Graham et al
3.
Farmers' market
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A farmers market is a physical retail market featuring foods sold directly by farmers to consumers. Farmers markets typically consist of booths, tables or stands, outdoors or indoors, where farmers sell fruits, vegetables, meats, Farmers markets exist worldwide and reflect their local culture and economy. Their size ranges from a few stalls to several city blocks, the current concept of a farmers market is similar to past concepts, but different in relation to other forms – as aspects of consumer retailing, overall, continue to shift over time. Similar forms existed before the Industrial age, but often formed part of broader markets, trading posts began a shift toward retailers who sold others products more than their own. Modern industrial food productions advantages over prior methods depend largely on modern, cheap, fast transport, but transport costs and delays cannot be completely eliminated. So where distance strained industrial suppliers reach, where consumers had strong preference for local variety, starting in the mid-2000s, consumer demand for foods that are fresher and for foods with more variety—has led to growth of farmers markets as a food-retailing mechanism. It has been claimed that farmers markets can offer farmers increased profit over selling to wholesalers, food processors, by selling directly to consumers, produce often needs less transport, less handling, less refrigeration and less time in storage. By selling in a market, the cost of land, buildings. Farmers may also retain profit on produce not sold to consumers, by selling the excess to canneries, at the market, farmers can retain the full premium for part of their produce, instead of only a processors wholesale price for the entire lot. Some farmers may also prefer the simplicity, immediacy, transparency, with fewer intermediaries, the support of independent growers by local community members can enhance local economic opportunities and health & wellness in poor communities. Some consumers may favor farmers markets for the perceived, reduced overhead, driving, parking, etc. fresher foods seasonal foods healthier foods a better variety of foods, e. g. In some cases claimed to sell products from their own farm at first. In at least one case despite vendor claims to the contrary the farm in question was not growing any food, in many cases fraud is obvious because the type of food being sold does not grow locally or is out of season. Federal regulations in the United States require country of origin labelling for produce at supermarkets, in the United States, the FDA requires that the manufacturers name and address be listed on the food label, which can reveal this discrepancy. In New York City, there are 107 farmers markets in operation, in the Los Angeles area,88 farmers markets exist, many of which support Hispanic and Asian fare. Since the first farmers market was established in the UK in 1997, consumers were worried about the farming practices by which food is produced, processed and the health and safety aspects of certain foods. The emergence of books, magazine articles, and cookery and gardening programmes influence consumer concern of food preparation and consumption, the EU has formalized efforts to expand farmers markets to reduce food safety risks and poor nutrition through programs known as Farm to Fork. Some markets are strictly managed, with rules for pricing, quality, others are much more relaxed in their operations and vendor criteria
4.
Contract
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A contract is a voluntary arrangement between two or more parties that is enforceable by law as a binding legal agreement. Contract is a branch of the law of obligations in jurisdictions of the civil law tradition, Contract law concerns the rights and duties that arise from agreements. A contract arises when the parties agree that there is an agreement, formation of a contract generally requires an offer, acceptance, consideration, and a mutual intent to be bound. Each party to a contract must have capacity to enter the agreement, minors, intoxicated persons, and those under a mental affliction may have insufficient capacity to enter a contract. Some types of contracts may require formalities, such as a memorialization in writing, at common law, the elements of a contract are offer, acceptance, intention to create legal relations, and consideration. Not all agreements are necessarily contractual, as the parties generally must be deemed to have an intention to be legally bound, a so-called gentlemens agreement is one which is not intended to be legally enforceable, and which is binding in honour only. In order for a contract to be formed, the parties must reach mutual assent and this is typically reached through offer and an acceptance which does not vary the offers terms, which is known as the mirror image rule. An offer is a statement of the offerors willingness to be bound should certain conditions be met. If a purported acceptance does vary the terms of an offer, it is not an acceptance but a counteroffer and, therefore, the Uniform Commercial Code disposes of the mirror image rule in §2-207, although the UCC only governs transactions in goods in the USA. As a court cannot read minds, the intent of the parties is interpreted objectively from the perspective of a reasonable person and it is important to note that where an offer specifies a particular mode of acceptance, only an acceptance communicated via that method will be valid. Contracts may be bilateral or unilateral, a bilateral contract is an agreement in which each of the parties to the contract makes a promise or set of promises to each other. For example, in a contract for the sale of a home, less common are unilateral contracts in which one party makes a promise, but the other side does not promise anything. In these cases, those accepting the offer are not required to communicate their acceptance to the offeror, in a reward contract, for example, a person who has lost a dog could promise a reward if the dog is found, through publication or orally. The payment could be conditioned on the dog being returned alive. Those who learn of the reward are not required to search for the dog, but if someone finds the dog and delivers it, the High Court of Australia stated that the term unilateral contract is unscientific and misleading. In certain circumstances, a contract may be created. A contract is implied in fact if the circumstances imply that parties have reached an agreement even though they have not done so expressly, quantum meruit claims are an example. Carbolic, a firm, advertised a smoke ball marketed as a wonder drug that would, according to the instructions
5.
Communication
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Communication is the act of conveying intended meanings from one entity or group to another through the use of mutually understood signs and semiotic rules. The main steps inherent to all communication are, The forming of communicative motivation or reason, transmission of the encoded message as a sequence of signals using a specific channel or medium. Noise sources such as forces and in some cases human activity begin influencing the quality of signals propagating from the sender to one or more receivers. Reception of signals and reassemblying of the message from a sequence of received signals. Decoding of the encoded message. Interpretation and making sense of the original message. The channel of communication can be visual, auditory, tactile and haptic, olfactory, electromagnetic, human communication is unique for its extensive use of abstract language. Development of civilization has been linked with progress in telecommunication. Nonverbal communication describes the process of conveying information in the form of non-linguistic representations, examples of nonverbal communication include haptic communication, chronemic communication, gestures, body language, facial expressions, eye contact, and how one dresses. Nonverbal communication also relates to intent of a message, examples of intent are voluntary, intentional movements like shaking a hand or winking, as well as involuntary, such as sweating. Speech also contains nonverbal elements known as paralanguage, e. g. rhythm, intonation, tempo and it affects communication most at the subconscious level and establishes trust. Likewise, written texts include nonverbal elements such as handwriting style, spatial arrangement of words, Nonverbal communication demonstrates one of Wazlawicks laws, you cannot not communicate. Once proximity has formed awareness, living creatures begin interpreting any signals received, Nonverbal cues are heavily relied on to express communication and to interpret others’ communication and can replace or substitute verbal messages. There are several reasons as to why non-verbal communication plays a role in communication. Written communication can also have non-verbal attributes, e-mails and web chats allow individual’s the option to change text font colours, stationary, emoticons, and capitalization in order to capture non-verbal cues into a verbal medium. Many different non-verbal channels are engaged at the time in communication acts. “Non-verbal behaviours may form a language system. ”Smiling, crying, pointing, caressing. Such non-verbal signals allow the most basic form of communication when verbal communication is not effective due to language barriers, Verbal communication is the spoken or written conveyance of a message
6.
Sales
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A sale is the exchange of a commodity or money as the price of a good or a service. Sales is activity related to selling or the amount of goods or services sold in a time period. The seller or the provider of the goods or services completes a sale in response to an acquisition, appropriation, requisition or an interaction with the buyer at the point of sale. There is a passing of title of the item, and the settlement of a price, the seller, not the purchaser generally executes the sale and it may be completed prior to the obligation of payment. In common law countries, sales are governed generally by the common law, a person or organization expressing an interest in acquiring the offered item of value is referred to as a potential buyer, prospective customer or prospect. Buying and selling are understood to be two sides of the coin or transaction. Both seller and buyer engage in a process of negotiation to consummate the exchange of values, the exchange, or selling, process has implied rules and identifiable stages. It is implied that the process will proceed fairly and ethically so that the parties end up nearly equally rewarded. Sometimes, sellers have to use their own experiences when selling products with appropriate discounts, from a management viewpoint it is thought of as a part of marketing, although the skills required are different. Sales often forms a separate grouping in a structure, employing separate specialist operatives known as salespersons. Selling is considered by many to be a sort of persuading art, selling is the profession-wide term, much like marketing defines a profession. Recently, attempts have been made to understand who is in the sales profession. There are many articles looking at marketing, advertising, promotions, two common terms used to describe a salesperson are Farmer and Hunter. The reality is that most professional sales people have a little of both, a hunter is often associated with aggressive personalities who use aggressive sales technique. In terms of sales methodology a hunter refers to a person whose focus is on bringing in and this process is called sales capturing. An example is a commodity such as a long distance sales person, shoe sales person. Their job is to find and convert buyers, a sales farmer is someone who creates sales demand by activities that directly influence and alter the buying process. Many believe that the focus of selling is on the agents involved in the exchange between buyer and seller
7.
Trade
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Trade, or commerce, involves the transfer of goods or services from one person or entity to another, often in exchange for money. A network that allows trade is called a market, the original form of trade, barter, saw the direct exchange of goods and services for other goods and services. Barter is trading things without the use of money, later one side of the barter started to involve precious metals, which gained symbolic as well as practical importance. Modern traders generally negotiate through a medium of exchange, such as money, as a result, buying can be separated from selling, or earning. The invention of money greatly simplified and promoted trade, Trade between two traders is called bilateral trade, while trade between more than two traders is called multilateral trade. Trade exists due to the specialization and division of labor, in which most people concentrate on an aspect of production. As such, trade at prices between locations can benefit both locations. Trade originated with human communication in prehistoric times, trading was the main facility of prehistoric people, who bartered goods and services from each other before the innovation of modern-day currency. Peter Watson dates the history of commerce from circa 150,000 years ago. In the Mediterranean region the earliest contact between cultures were of members of the species Homo sapiens principally using the Danube river, at a time beginning 35–30,000 BCE, Trade is believed to have taken place throughout much of recorded human history. There is evidence of the exchange of obsidian and flint during the stone age, Trade in obsidian is believed to have taken place in Guinea from 17,000 BCE. The earliest use of obsidian in the Near East dates to the Lower, Trade in the stone age was investigated by Robert Carr Bosanquet in excavations of 1901. Trade is believed to have first begun in south west Asia, obsidian was traded at distances of 900 kilometres within the Mediterranean region. Trade in the Mediterranean during the Neolithic of Europe was greatest in this material, networks were in existence at around 12,000 BCE Anatolia was the source primarily for trade with the Levant, Iran and Egypt according to Zarins study of 1990. Melos and Lipari sources produced among the most widespread trading in the Mediterranean region as known to archaeology, the Sari-i-Sang mine in the mountains of Afghanistan was the largest source for trade of Lapis Lazuli. The material was most largely traded during the Kassite period of Babylonia beginning 1595 BCE, ebla was a prominent trading centre during the third millennia, with a network reaching into Anatolia and north Mesopotamia. Materials used for creating jewelry were traded with Egypt since 3000 BCE, long-range trade routes first appeared in the 3rd millennium BCE, when Sumerians in Mesopotamia traded with the Harappan civilization of the Indus Valley. The Phoenicians were noted sea traders, traveling across the Mediterranean Sea, for this purpose they established trade colonies the Greeks called emporia
8.
Asset
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In financial accounting, an asset is an economic resource. Anything tangible or intangible that can be owned or controlled to produce value, simply stated, assets represent value of ownership that can be converted into cash. The balance sheet of a firm records the value of the assets owned by that firm. It covers money and other valuables belonging to an individual or to a business, one can classify assets into two major asset classes, tangible assets and intangible assets. Tangible assets contain various subclasses, including current assets and fixed assets, current assets include inventory, while fixed assets include such items as buildings and equipment. Intangible assets are resources and rights that have a value to the firm because they give the firm some kind of advantage in the marketplace. Examples of intangible assets include goodwill, copyrights, trademarks, patents and computer programs, an asset is a resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. One of the most widely accepted accounting definitions of asset is the one used by the International Accounting Standards Board, employees are not considered assets like machinery is, even though they can generate future economic benefits. This is because an entity does not have sufficient control over its employees to satisfy the Frameworks definition of an asset, similarly, in economics an asset is any form in which wealth can be held. The accounting equation is the structure of the balance sheet. It relates assets, liabilities, and owners equity, Assets = Liabilities + Capital Liabilities = Assets − Capital Equity = Assets − Liabilities Assets are listed on the balance sheet. On a companys balance sheet certain divisions are required by generally accepted accounting principles, Assets can be divided into e. g. current assets and fixed assets, often with further subdivisions such as cash, receivables and inventory. Assets are formally controlled and managed within larger organizations via the use of asset tracking tools and these monitor the purchasing, upgrading, servicing, licensing, disposal etc. of both physical and non-physical assets. Current assets are cash and other assets expected to be converted to cash or consumed either in a year or in the operating cycle and these assets are continually turned over in the course of a business during normal business activity. There are 5 major items included into current assets, Cash and cash equivalents – it is the most liquid asset, which includes currency, deposit accounts, short-term investments – include securities bought and held for sale in the near future to generate income on short-term price differences. Receivables – usually reported as net of allowance for non-collectable accounts, inventory – trading these assets is a normal business of a company. The inventory value reported on the sheet is usually the historical cost or fair market value. This is known as the lower of cost or market rule, prepaid expenses – these are expenses paid in cash and recorded as assets before they are used or consumed
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