A ‘transaction’ is an act of debt between parties. The seller owes goods to the buyer (performance debt), and the buyer owes money to the seller (monetary debt). A transaction is considered complete when the debt is settled and the promise to owe each other is called a ‘contract.’ Thus, a good trader or businessman excels at making and repaying debts. When it comes to debt, the type of debt matters. Anyone who misjudges this should not engage in business. - Joseph’s “just my thoughts”
Let’s say I’m a potato farmer. Assuming that I can survive by eating only potatoes, I become wealthy when I work hard to increase potato production. However, to survive, we also need shelter and clothing. No matter how much money we have, we cannot eat the money itself as food. In other words, exchange is vital for survival. This means that if we have to rely on one job, we can only survive by trading needs, apart from potatoes, with other producers, using the output we gain from that job. In an agricultural society, production determined wealth, but in a modern society where industrial products have taken the place of other needs, the greater the potential for exchange between ourselves and others, the more advantageous it is for survival and the greater the potential for wealth. This is known as the power of distribution. The more sales channels you have, the stronger your business competitiveness and market influence. The ability to sell a lot is paramount. - Joseph’s “just my thoug...