Obtaining Goods and Services in the business

How to Obtain Goods and Services

The methods of obtaining goods or services have changed with time, beginning with barter or exchange of product or services, then the use of money, and now the trend is using the credit card.

1. Barter - In the beginning, man gave or exchanged his product or service by means of barter. For example, a farmer would exchange three sacks of rice for one carabao, or a shoemaker would receive a precious stone for a pair of shoes that he made. Barter is not an easy method of trading because it is difficult to determine the cost of the goods or services a person is willing to give or exchange
2. Money - Money is anything generally accepted in exchange for goods and services, a tool or a medium of exchange with a standard value. It is one of the most important inventions of man. Many things have been used as money. Furs, grains, salt, beads, stones, metals, feathers, ivory, tea leaves, and shells were used as money. They were called commodity money. In ancient Rome, soldiers were given salt as payment of their services. This was called "salt ration" or salarium in Latin. A person's income is called salary.

Whatever people agree to use as money is their monetary unit. For example, if chicken is money, it is considered the monetary unit. Fiat money is the money by government decree. Peso is the monetary unit in the Philippines, Dollar in US, and Yen in Japan. In order for money to be of real use as a medium of exchange, it must be portable. durable, divisible, and stable in value.

3. Credit -  The new trend in buying or purchasing goods or services is with the use of "plastic money" or credit card. Most businessmen, as well as professionals, go for this kind of sales in buying arrangement because they can buy the goods and services they want anytime and pay later on installment basis at a certain interest rate.

Entrepreneurship and Free Enterprise

Free enterprise is a system where people enjoy many freedoms and rights in carrying out economic activities such as:

1. own private properties

2. choose their careers

3. choose what products and services to buy

4. make a business

5. make profit

6. encourage business competition to produce high-quality goods and services

Entrepreneurship is the ability to develop an idea into goods or services.