Business Studies · Ch 4 — Business Services
Key Terms
Key Terms
- Business services — services used by business enterprises to conduct their activities (banking, insurance, transportation, warehousing, communication).
- Banking — accepting deposits of money from the public for lending and investment, repayable on demand or otherwise and withdrawable by cheque, draft or order.
- Commercial banks — institutions dealing in money, governed by the Banking Regulation Act 1949, comprising public- and private-sector banks.
- e-Banking — electronic banking; conducting banking transactions over the internet using a PC, mobile or handheld device.
- Insurance — a device that spreads the loss from an uncertain event over the many persons exposed to it, through a contract for consideration.
- Insurable interest — the pecuniary (financial) interest an insured has in the subject matter of the insurance.
- Indemnity — the insurer's undertaking to restore the insured to the same financial position he held immediately before the loss.
- Subrogation — after settling a claim, the insurer's right to stand in the insured's place to recover from an alternative source.
- Contribution — the right of an insurer who has paid a claim to have other liable insurers share the loss in double insurance.
- Mitigation — the insured's duty to take reasonable steps to minimise the loss or damage.
- Proximate cause — the direct, most dominant and effective cause of a loss, which must be a peril covered by the policy.
- Life insurance — a contract to pay an assured sum on a specified life event or on expiry of a period; both protection and investment.
- Fire insurance — a contract of strict indemnity to make good loss or damage caused by fire within a specified period, up to the policy amount. …