51 Terms related to Commerce for Beginners
These Commerce related terms are important not only for Commerce students but for all those who have passed out and preparing for competitive exams. Such terms are often asked in interview also. Beginners benefit from these terms to catch hold of the subjects before putting their best efforts to study the Commerce subjects in detail.
- Accounting:
The process of recording, summarizing, and analyzing financial transactions of a business.
- Assets:
Economic resources owned or controlled by a business, which can include cash, inventory, equipment, and property.
- Balance Sheet:
A financial statement that provides a snapshot of a company's financial position, showing its assets, liabilities, and equity at a specific point in time.
- Business Ethics:
The principles and values that guide business behavior and decision-making, ensuring fairness, honesty, and responsibility.
- Business Plan:
A written document that outlines the goals, strategies, and financial projections of a business.
- Business:
An organization or entity engaged in commercial, industrial, or professional activities.
- Capital:
Financial resources or assets that are used to start or operate a business.
- Cash Flow:
The movement of money into and out of a business, including revenue, expenses, and investments.
- Commerce:
The activity of buying and selling goods and services, on continuous basis.
- Competition:
The rivalry among businesses to attract customers and increase market share.
- Deferred revenue expenditure:
Expenditure incurred in the present but allocated to future periods, representing an expense that will provide benefits over an extended period.
- Demand:
The quantity of goods or services that consumers are willing and able to purchase at a given price and time.
- Depreciation:
The gradual decrease in the value of an asset over time due to wear and tear or obsolescence.
- E-commerce:
The buying and selling of goods and services conducted over electronic systems such as the internet.
- Economic Recession:
A period of significant decline in economic activity, typically lasting for a few months to a year.
- Entrepreneur:
A person who starts and operates a business, assuming financial risks in the hope of making a profit.
- Equity:
The ownership interest or residual claim in a business after deducting liabilities.
- Expenditure:
The act of spending or using money or resources to acquire goods, services, or assets.
- Expenses:
The costs incurred by a business in order to generate revenue and operate effectively.
- Free Trade:
The policy of allowing goods and services to be traded between countries without imposing significant barriers such as tariffs or quotas.
- Goodwill:
The intangible value that a business possesses due to its reputation, customer loyalty, and positive brand image.
- Gross Domestic Product (GDP):
The monetary value of all finished goods and services produced within a country's borders during a specific period.
- Gross Profit:
The difference between sales revenue and the cost of goods sold, excluding operating expenses.
- Inflation:
The increase in the general price level of goods and services over time, resulting in a decrease in the purchasing power of money.
- International trade:
The exchange of goods and services between different countries or regions.
51 Terms related to Commerce for Beginners cotd.
- Inventory:
The stock of goods or materials that a business holds for production, sales, or future use.
- Liability:
An obligation or debt owed by an individual or entity, usually resulting from past transactions or events.
- Logistics:
The process of planning, implementing, and controlling the efficient flow of goods, services, and information from the point of origin to the point of consumption.
- Loss:
The negative financial outcome when the cost of producing and selling goods or services exceeds the revenue earned.
- Market:
The place or mechanism where buyers and sellers interact to trade goods and services.
- Marketing:
The process of promoting, advertising, and selling products or services to customers.
- Monopoly:
A market situation where a single seller or producer dominates the supply of a product or service.
- Oligopoly:
A market structure characterized by a few large firms dominating the market for a particular product or service.
- Outsourcing:
The practice of hiring external resources or services to perform specific tasks or functions that were previously handled in-house.
- Profit and Loss Statement (Income Statement):
A financial statement that shows a company's revenues, expenses, and net income or loss over a specific period.
- Profit:
The financial gain resulting from the difference between a business's revenues and expenses.
- Revenue:
The total income generated by a business through its normal activities.
- Risk management:
The process of identifying, assessing, and prioritizing risks to minimize their negative impact on business operations.
- ROI (Return on Investment):
A measure of the profitability of an investment, calculated by dividing the net profit by the initial cost of the investment and expressed as a percentage.
- Sales:
The act of selling products or services to customers in exchange for money or other considerations.
- Supply and Demand:
The fundamental concept in economics where supply refers to the quantity of a product or service available, and demand represents the consumer's willingness and ability to buy that product or service.
- Supply chain:
The sequence of processes and activities involved in the production and distribution of goods, from the raw material stage to the final consumer.
- Supply:
The quantity of goods or services that producers are willing and able to offer for sale at a given price and time.
- Target Market:
The specific group of consumers or businesses that a company aims to reach and serve with its products or services.
- Tariff:
A tax or duty imposed on imported or exported goods, usually to protect domestic industries or regulate trade.
- Trade deficit:
The situation where a country's imports exceed its exports, resulting in a negative balance of trade.
- Trade surplus:
The situation where a country's exports exceed its imports, resulting in a positive balance of trade.
- Trade:
The buying and selling of goods and services, either domestically or internationally.
- Value Chain:
The series of activities that businesses go through to add value to a product or service, from raw material acquisition to final delivery to customers.
- Wholesale:
The sale of goods or merchandise to retailers or other businesses rather than to individual customers.
- Yield:
The return or profit generated from an investment or business activity, typically expressed as a percentage.
51 Terms related to Commerce for Beginners ends here.