Definition List Part 6
CAMBRIDGE O LEVEL COMMERCE (7100)
COMPLETE DEFINITIONS NOTES — FINAL PART
WAREHOUSING
Warehouse
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A place where goods are stored before sale or distribution.
Warehousing
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The process of storing goods until they are needed.
Functions:
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Storage
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Protection
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Price stabilisation
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Continuous supply
Private Warehouse
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Warehouse owned by manufacturers or large businesses for their own goods.
Public Warehouse
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Warehouse available for public use on rent.
Bonded Warehouse
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Warehouse storing imported goods before customs duty is paid.
Cold Storage
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Warehouse maintaining low temperatures for perishable goods.
Bulk Storage
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Storage of goods in large quantities.
Stockpile
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Large quantity of goods stored for future use.
Inventory
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Stock of goods held by a business.
Stock Control
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Managing inventory efficiently.
Buffer Stock
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Extra stock kept to avoid shortages.
Lead Time
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Time between ordering and receiving goods.
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.
TOURISM
Tourism
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Travelling for leisure, business or recreation.
Domestic Tourism
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Tourism within a person’s own country.
International Tourism
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Tourism involving travel to another country.
Eco-tourism
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Tourism focusing on environmental conservation.
Tourist
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Person travelling away from home for leisure or business.
Travel Agency
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Business arranging travel and holidays for customers.
Tour Operator
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Business organising complete holiday packages.
Package Holiday
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Holiday including transport, accommodation and other services for one price.
Hospitality Industry
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Industry providing accommodation, food and services to travellers.
Hotel
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Establishment providing accommodation and meals.
Motel
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Hotel designed mainly for motorists.
Resort
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Place developed for holidays and recreation.
Visa
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Official permission to enter another country.
Passport
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Official document identifying a traveller internationally.
Foreign Exchange Earnings
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Income earned from foreign visitors.
Seasonal Demand
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Demand varying at different times of the year.
Peak Season
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Time of highest demand.
Off Season
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Time of lower demand.
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.
COMMUNICATION TECHNOLOGY
ICT (Information and Communication Technology)
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Technology used to handle communication and information.
E-Commerce
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Buying and selling goods electronically.
Online Banking
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Banking services carried out through the internet.
Mobile Commerce
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Buying and selling through mobile devices.
Cloud Computing
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Storing and accessing data through the internet instead of local devices.
Database
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Organised collection of information stored electronically.
Cybersecurity
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Protection of digital systems from attacks.
Encryption
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Converting information into coded form for security.
Password
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Secret code used to access systems.
Firewall
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Security system protecting computer networks.
Spam
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Unwanted electronic messages.
Virus
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Harmful computer program.
Malware
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Software intended to damage computer systems.
Video Conferencing
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Holding meetings using audio and video technology.
Teleworking
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Working remotely using communication technology.
Automation
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Use of machines and technology to perform tasks automatically.
Artificial Intelligence (AI)
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Technology enabling machines to imitate human intelligence.
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.
GOVERNMENT AND TRADE
Subsidy
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Financial assistance given by government to businesses.
Tax
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Compulsory payment made to government.
Indirect Tax
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Tax imposed on goods and services.
Examples:
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Sales tax
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Customs duty
Direct Tax
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Tax imposed directly on income or wealth.
Examples:
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Income tax
Value Added Tax (VAT)
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Tax added at each stage of production and distribution.
Excise Duty
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Tax imposed on specific goods produced locally.
Fiscal Policy
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Government policy involving taxation and spending.
Monetary Policy
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Government or central bank policy controlling money supply and interest rates.
Inflation
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Persistent rise in general price levels.
Deflation
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Persistent fall in general price levels.
Recession
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Period of declining economic activity.
Unemployment
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Situation where people willing to work cannot find jobs.
National Income
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Total income earned within a country over a period.
GDP (Gross Domestic Product)
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Total value of goods and services produced within a country.
Per Capita Income
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Average income per person.
Economic Growth
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Increase in production of goods and services over time.
Development
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Improvement in living standards and quality of life.
Standard of Living
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Level of wealth, comfort and necessities available to people.
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.
MISCELLANEOUS IMPORTANT TERMS
Consumer
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Final user of goods or services.
Producer
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Person or business making goods or providing services.
Middleman
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Person or business linking producers and consumers.
Retailer
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Seller of goods directly to consumers.
Wholesaler
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Trader selling goods in bulk to retailers.
Intermediary
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Business acting between producer and consumer.
Profit
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Excess of revenue over costs.
Loss
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Excess of costs over revenue.
Revenue
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Income earned by a business.
Cost
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Expense incurred by a business.
Fixed Cost
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Cost remaining constant regardless of output.
Variable Cost
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Cost changing with level of output.
Break-even Point
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Level where total revenue equals total cost.
Demand
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Quantity consumers are willing and able to buy.
Supply
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Quantity producers are willing and able to sell.
Market
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Place or system where buyers and sellers interact.
Competition
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Rivalry among businesses for customers.
Monopoly
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Market dominated by one seller.
Consumer Satisfaction
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Degree to which consumers’ wants are fulfilled.
Quality Control
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Ensuring products meet required standards.
Efficiency
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Producing maximum output with minimum waste.
Productivity
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Output produced per unit of input.
Opportunity Cost
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Next best alternative forgone.