Credit Cards/Debit Cards

This allows the card holder to make payments by simply presenting the card to the
seller. A credit card facility is actually a loan given to a customer and thus it is
repaid at an interest. A debit card is issued against a customers account balance
and is therefore not a loan.
Money Order
They can be used to make payments locally or overseas, as they are made out in
the currency in which they are to be paid. The payee will cash the money order at
his bank.
Bank Draft
A bank draft is a cheque which guarantees payment to the receiver from the issuing
bank. Bank drafts can be made out to a payee in foreign currency and thus used for
making overseas payments. Bank drafts are obtained for a fee from a commercial
bank.
Bill of Exchange
This is used to pay for goods bought overseas on credit. It is an order in writing
from an exporter to an importer requiring payments of a certain sum of money at a
fixed future date. The time period allowed is normally three months.
Electronic Transfer
This is a system used to transfer funds electronically rather than paper-based
payment methods. Examples include credit and debit card transactions, remittances
(through companies such as Western Union) and money transfers.
Tele-Banking
This system allows a banks customer to simply use the telephone to get his
banking services done rather than visiting the bank. Services include; checking
account balances and transaction history, opening a new account, transferring
funds etc.
Internet Banking
This differs form tele-banking in that the internet is used to access the same
services. Customers can go on-line to view their balances and transaction history
and transfer funds etc.
Ecommerce
Electronic commerce more popularly called ecommerce is the buying and selling of
goods and service using the internet. It allows for a full range of trading activities

over the internet such as advertising, placing orders, delivery and making
payments.

Reasons for starting a Business:

1. Financial Independence
Some persons feel restricted financially with the income received from their job.
Starting a business would give them the opportunity to be a successful business
person and achieve financial independence.
2. Being your own boss
You are able to make decisions about the direction and operation of the business.
3. To use your skills and knowledge for yourself
The skills, knowledge and experience that you have acquired can be put to work for
you.
4. Self-actualization/fulfillment
Owning and operating a successful business will give a feeling of accomplishment.
5. To create employment for relatives, friends and community members
Business can assist in providing jobs for persons in communities with high levels of
unemployment.

Stakeholders And Their Role In Business Activities

Business owners must be aware of the various groups that they interact with for the
successful running of the business.
Owners
A business may be owned by a single individual (a sole trader), partners or by a
group of shareholders forming a company.
Role of Owners
They must provide the resources that are required for the business to operate
efficiently. These include the employment of workers, identifying suitable premise
and procuring machinery, equipment and raw materials. They must make timely
decisions to ensure that the business remains profitable. They must motivate
employees to perform well.

Employees
They are employed to carry out assigned tasks to achieve the companys objectives.
Role of Employees
Employees must work efficiently to accomplish tasks assigned. Accomplishing tasks
may require teamwork and therefore employees must have good interpersonal
skills. Employees must adhere to the rules and relations of the company.
Customers
They are the supporters of businesses in the economy. They purchase goods and
services to satisfy their needs and wants.
Role of Customers
They assist businesses in indentifying the goods and services to be produced based
on their demands. They also help business to identify changing trends in the market
and so prepare business operators for future demands.
Society
Businesses must be aware of the society as a whole, how its activities affect it and
not only those who are customers.
Role of Society
The production process may cause air pollution and discharge of harmful waste into
rivers and seas. The society keeps businesses in check by making them aware of
their impact on society. They write letters to the company and the media and speak
on talk shows.
Government
They are the managers of the economy within which the business operates.
Role of Government
Regulate business activities to protect consumers. Government agencies ensure
product standards as well as that various legislations are adhered to ensure the
protection of consumers rights.

Functions Of A Business
The functions of a business are:
1. To produce high quality goods and services that will satisfy needs and wants.
Entrepreneurs enter business to make profits. They must be very keen in identifying
those goods and services that will create high demand make profits.
2.To create employment
Business will need all categories of workers to carry out the various tasks required
to achieve its goals. If the business is profitable and expands then more workers will
be needed for its operations.
3.To make a profit
The reason for the establishment of a business is to make profits. If businesses are
not profitable, its owners will not be encouraged to continue operating. Profits are
used to reinvest in the business for its expansion.

Role Of A Business Within A Community

Corporate citizen is the term used to describe the responsibilities that businesses
have within their environment. As a good corporate citizen business must strive to
have a good relationship with their community.
Good corporate citizenship includes:
-Support for the community through community projects, sports and youth clubs.
-Being environmentally aware by reducing pollution
-Providing job opportunities for community members e.g. a holiday work programme

Sources Of Conflict Within An Organization

Unfair treatment of workers

Unfair dismissal
Discrimination

Health related issues

The need for protective clothing
Poor ventilation
Harmful fumes from chemicals

Wages and fringe benefits

Nonpayment of allowances
Underpayment
Methods Used To Gain An Upper Hand During Periods Of Conflict
Workers organize themselves to collectively deal with conflicts. This is done through
the trade union. A Trade Union is an organization of persons employed in an
industry who have joined together in order to improve their wages and working
conditions.
Methods used by Trade Unions
1. Strikes
2. Sick-out
3. Work-to-rule
4. Go slow
5. Picketing
Methods used by employers during conflicts
Union busting
Union busting is the prevention by management of the formation of a trade union
within its organization. The employer may explicitly state this to workers or covertly
discourage its formation.
Lock out

A lockout refers to the refusal by an employer to allow workers into the business
place during an industrial dispute. This is a means of coercing workers to comply
with management.
Scab labour
This is a derogatory term used to refer to workers hired to replace workers on strike.
Role Of Teamwork
Many firms adopt a teamwork approach to complete tasks more efficiently. For
example a major Caribbean airline encourages its workers to work as a team to
achieve the main task of having each flight leave on time. Workers therefore move
to various positions if needed, to have each flight leave on time.
Benefits of Teamwork
1. It improves the working relationship among workers
2. It increases communication
3. Skills and knowledge are passed on through the interaction
4. It satisfies the social needs of workers
Groups are formed naturally by persons with similar interest, common goals and
similar past experiences in an organization. The establishment of various clubs,
work socials and outings will encourage greater interaction among workers, better
relationships and a teamwork approach to completing tasks.

Functional Areas In The Operation Of Businesses

Departments in a business organization are structured according to certain
functions. The departments of various organizations will differ depending on the
type of business.
Production
The production department is responsible for transforming raw materials into
finished products. They are also responsible for quality control to ensure that
required standards are met.
Finance/Accounts
The accounts department makes and receives all payments on behalf of the
business and records all financial transactions

Marketing
This department creates awareness for the firm products and motivates consumers
to buy. They also carry out market research to identify customers needs
Human Resources/Personnel
The human resource department recruits and selects staff for the business
organization. They are also responsible for staff training and welfare.
The Purchasing Department
This department is responsible for the purchasing of the firms raw material,
stationery and goods for re-sale.
Customer Service/ Customer Relations Department
This Department bridges the gap between a business and its customers. it deals
with customers queries, advising and assisting customers to place orders and
handling customers complaints.
Legal Department
This department is concerned with legal problems that might arise for the company.
For example, compensation for employees and customers, who have brought
lawsuits against the company.
Research and Development (R&D)
This department is involved with research to explore ways of improving the
companys existing products, developing new ones and identifying efficient
processes to increase production. This department works closely with the marketing
department as products developed must satisfy consumers needs.

Strategies For Effective Communication

Communication is defined as a two-way process which involves the conveying of
information from (sender) to (receiver). The need for effective communication is
very important when dealing with the human factor from recruitment to retirement
in the organization.
For communication to be effective there must be feedback.
Means of Communication
1. Oral This includes all types of spoken communication, e.g. interviews and
meetings.
2. Written This includes all things that are written, e.g. reports and letters.

3. Visual This includes all things which can be seen, e.g., posters and films.
The primary objective of communication in any organization is to get work done.
Types of communication
Formal Communication -These are official methods approved by management.
These includes meetings, announcement on notices boards, memoranda, messages
over public address systems, interviews, performance appraisals, company
magazines. etc.
Informal Communication -These are unofficial methods of communication.
These include: rumours and the grapevine, secret signs and gestures as well as
casual conversation between employees.
Barriers to Communication
1. Distortion of messages e.g. rumours or the grapevine can easily distort
messages.
2. Inappropriate forms of transmission e.g. a notice of a formal meeting must be
conveyed in writing and not by word of mouth. If this type of meeting is not
conveyed in writing it may seem casual and unimportant.
3. Physical barriers e.g. faulty telephone connections, defects in mechanical or
electronic equipment, and poor postal services.
Purpose Of A Feasibility Study
It is research done to ascertain the viability/feasibility of a business idea or any
other venture. It asses the business idea in terms of its operational costs, expected
revenue flows, level of competition etc. Its main purpose is to find out if the
business idea will be workable. If the business idea is found to be feasible a
business plan is may drafted to obtain financial support.
Ethical And Legal Issues
Business owners are required to obey all legislation concerning the operations of a
business. These include, paying taxes, business registration, obtaining licenses
when required etc. Business owners should also operate their business based on
integrity. This involves:
- Environmental awareness reducing pollution and harmful effluents in the rivers
and seas.
- Avoiding tied selling (marrying of goods)

- Misleading advertising (untruths about goods advertised)

- Untrue sale price For example, writing the word sale on items for which the price
remains the same.
- The use of market dominance to squeeze firms out of the industry- For example
large firms may drop the price of their goods so low that small firms are unable to
compete with them.