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Most people don’t spend much time wondering what money is, their major concern is how much they have, and how to get more. Usually, the question of what money IS arises only when money ceases to function properly. In economics (properly understood), the answer to the question – what is money? Before the development of a medium of exchange, people would barter to obtain the goods and services they needed. This is basically how it worked: two individuals each possessing a commodity the other wanted or needed would enter into an agreement to trade their goods.

Wealth is the most common a very familiar word throughout the world. Initially the phrase was derived from the old English word weal. Wealth carries many definitions and few of them are given by some distinguished people in the society, Adam Smith refers wealth as “the annual produce of the land and labor of the society” ‘Wealth’ refers to some accumulation of income, whether abundant or not. ‘Richness’ refers to an abundance of such income. A wealthy individual, community, or nation thus has more resources than a poor one. The opposite of wealth is destitution. The opposite of richness is poverty. Wealth can be categorized in a minor and major ways wherein wealth of a person or nation is the value of assets owned net of liabilities owed (to foreigners in the case of a nation) at a point in time.

A business is also called a firm or an enterprise. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit to increase the wealth of owners. The most common types of business are Sole proprietorship is a type of business owned by a single person who is called a sole proprietor. Business is a process in which a person or an organization purchases and or sells goods in an attempt to make a profit. A sole proprietorship is a business owned by one person. The owner may operate on his or her own or may employ others. The owner of the business has total and unlimited personal liability of the debts incurred by the business.