economics


business transactions




a business transaction usually involves a trade, i.e. exchanging one item for another.


e.g. purchase a meal for $15.



	customer  $15 -> restaurant


	restaurant  lunch -> customer



the two items should be of approximately equal value.


the financial value is not created at this stage. it is created when work is done.


e.g.

	
	box of chocolate bars, 100 items, cost $80.		total cost $80


	individual bars, 100 items, $2				total value $200



in this example the value is created by opening the bulk box and splitting the contents into individual bars 


the customer transactions exchange cash for the products, which results in building up the assets of 

the business

