a) Outline five problems of barter trade. b) Explain to Domingo five benefits of using computers in the conduct of his business.

Answer Details

(a) Five problems of barter trade

1. Lack of double coincidence of wants: Each party must want exactly what the other has to offer at the same time, which is difficult to achieve.
2. Lack of a common measure of value: There is no standard unit for expressing the value of goods, making fair exchange hard.
3. Indivisibility of some goods: Some goods, such as a cow, cannot be divided into small parts to match the value of what is wanted.
4. Difficulty in storing value: Wealth held as goods, especially perishable ones, cannot be stored for long without loss of value.
5. Problem of deferred payments: It is difficult to make future or credit arrangements because the goods may change in value or quality over time.

(b) Five benefits of using computers in business

1. Fast processing of work: Computers process large volumes of data quickly, saving time.
2. Accuracy: They perform calculations and records with a high degree of accuracy, reducing errors.
3. Efficient storage and retrieval of information: Large amounts of business records can be stored and recalled easily when needed.
4. Improved communication: Through email and the internet, Domingo can communicate quickly with customers and suppliers worldwide.
5. Cost saving and better decision-making: Computers reduce paperwork and labour costs and provide timely information that aids sound business decisions.