Business Activity

IGCSE BS: Business Activity

Assets and liabilities

Assets - economic resources. They are items fóf economic value that can be exchanged for cash. Securities and stock are types of assets.

Liabilities -obligation that binds individuals or companies to settle a debt. They are things that you owe to someone else. Mortages and loans are liabilities.

When you buy a house, the house would become your asset. The mortage with which you financed the house is your liability.

In a balance sheet, the value of the assets has to equal the value of the liabilities.

Why Economics?

Because Economics examines what drives human beings to do what they do, and looks at how they react when faced with difficulties or succes.

Because Economics matters. It determines everything from the price of what you eat, to how much your house costs, and whether or not you have an education or health care.

Because it helps you to understand the world around you.

Because it is a subject that is provocative, poweful, and highly relevant to almost every aspect of our lives.