Definition List Part 2
CAMBRIDGE O LEVEL COMMERCE (7100)
COMPLETE DEFINITIONS NOTES — PART 2
TRANSPORT
Transport
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The movement of goods and people from one place to another.
Importance of Transport:
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Facilitates trade
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Connects producers and consumers
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Enables distribution of goods
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Supports economic growth
Road Transport
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Transport carried out using roads.
Examples:
-
Trucks
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Vans
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Cars
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Motorcycles
Advantages:
-
Door-to-door service
-
Flexible routes
-
Suitable for short distances
Disadvantages:
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Traffic congestion
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Accidents
-
Limited carrying capacity
Rail Transport
-
Transport using railway tracks and trains.
Advantages:
-
Suitable for bulky goods
-
Economical for long distances
-
Large carrying capacity
Disadvantages:
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Expensive infrastructure
-
Fixed routes
-
Less flexible
Water Transport
-
Transport using seas, rivers or canals.
Types:
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Inland Waterways
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Sea Transport
Advantages:
-
Cheap for heavy goods
-
Suitable for international trade
Disadvantages:
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Slow
-
Weather dependent
Air Transport
-
Transport using aircraft.
Advantages:
-
Fastest mode of transport
-
Suitable for perishable goods
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Useful for emergencies
Disadvantages:
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Expensive
-
Limited carrying capacity
-
Weather disruptions
Pipeline Transport
-
Transport of liquids and gases through pipelines.
Examples:
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Oil
-
Natural gas
-
Water
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
Containerisation
-
Using standard containers for transporting goods.
Advantages:
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Faster loading and unloading
-
Reduced theft and damage
-
Easier handling
Freight
-
Goods transported in bulk.
Haulage
-
Transporting goods by road vehicles.
Carrier
-
A business that provides transport services.
Port
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A place where ships load and unload cargo.
Airport
-
A place where aircraft take off and land.
Terminal
-
A point where transport services begin or end.
Infrastructure
-
Basic facilities needed for transport and communication.
Examples:
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Roads
-
Railways
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Airports
-
Bridges
Distribution
-
The movement of goods from producers to consumers.
Logistics
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Managing the movement and storage of goods efficiently.
Warehousing
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The storage of goods until needed.
Functions of Warehouses:
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Protection of goods
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Bulk storage
-
Stabilising prices
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Enabling continuous supply
Cold Storage
-
Storage of goods at low temperatures.
Used For:
-
Meat
-
Medicines
-
Dairy products
Bonded Warehouse
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Warehouse where imported goods are stored before customs duty is paid.
Customs Clearance
-
Official permission allowing goods to enter or leave a country.
Customs Duty
-
Tax imposed on imported or exported goods.
Bill of Lading
-
A document showing ownership of goods transported by sea.
Functions:
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Receipt of goods
-
Evidence of contract
-
Document of title
Airway Bill
-
A document used in air transport.
Consignment Note
-
Document used in road or rail transport.
Demurrage
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Charges imposed for keeping goods too long at a port.
Dock
-
Enclosed area in a port where ships load and unload cargo.
Quay
-
Platform beside water where ships are loaded or unloaded.
Harbour
-
Sheltered area where ships can anchor safely.
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
INSURANCE
Insurance
-
Protection against financial loss.
Purpose:
-
Reduces risk
-
Provides compensation
-
Gives financial security
Insurer
-
The company providing insurance cover.
Insured
-
The person or business covered by insurance.
Premium
-
Regular payment made for insurance cover.
Policy
-
Contract between insurer and insured.
Claim
-
Request made to the insurer for compensation.
Compensation
-
Money paid for loss suffered.
Risk
-
The possibility of loss occurring.
Indemnity
-
Restoring the insured to the same financial position as before the loss.
Utmost Good Faith
-
Both parties must provide truthful information.
Insurable Interest
-
Financial interest in the insured item.
Contribution
-
Sharing compensation payment among several insurers.
Subrogation
-
Insurer gains legal rights after paying compensation.
Proximate Cause
-
The main cause of a loss.
Reinsurance
-
Insurance taken by insurance companies to reduce risk.
Underinsurance
-
Insuring property for less than its actual value.
Overinsurance
-
Insuring property for more than its actual value.
Assurance
-
Insurance against an event certain to happen.
Example:
-
Death
Life Assurance
-
Insurance covering human life.
Marine Insurance
-
Insurance covering ships and cargo.
Fire Insurance
-
Insurance against fire damage.
Written and Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 11 World Records and 7 Distinctions, Educate A Change.
Burglary Insurance
-
Insurance against theft and break-ins.
Liability Insurance
-
Insurance against legal claims from others.
Fidelity Guarantee Insurance
-
Insurance against employee dishonesty or fraud.
Accident Insurance
-
Insurance covering accidents and injuries.
Employer’s Liability Insurance
-
Insurance covering claims made by employees injured at work.
Third Party Insurance
-
Insurance covering damage caused to other people or property.
No Claim Bonus
-
Reduction in premium for not making claims.
Average Clause
-
Clause reducing compensation if property is underinsured.
Actuary
-
A specialist who calculates insurance risks and premiums.
Insurance Broker
-
An independent agent arranging insurance for clients.
Lloyd’s of London
-
A famous insurance market specialising in unusual risks.
Peril
-
Specific cause of loss covered by insurance.
Examples:
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Fire
-
Theft
-
Flood
Hazard
-
Condition increasing the chance of loss occurring.
Types:
-
Physical Hazard
-
Moral Hazard