Let’s think about it this way. If you run a business and only make one transaction per day, chances are you won’t keep a record of those transactions because you can remember them. However, if there are hundreds of transactions in a year, or even in a single day, will you be able to remember all those transactions? A business makes a profit, but do you know how much you have earned or how much you’ve lost? After all, if we don’t keep the books, we can’t know the profit or loss. Those book records are called financial statements (balance sheets). You can do business without reading and understanding financial statements, but you’re just doing the hard-working, foolish thing without knowing the real content of the 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...