The direct exchange of commodities or services by way of trade, without the use of an intermediate and neutral currency such as coins, promissory notes, or bills of exchange. Barter is the mostprimitive manner of trading, but, in certain circumstances, the most satisfactory. It could, by eliminating the need for the keeping of records, be a useful way of avoiding taxation - which can only be applied to stated profits - and so, such transactions. when undertaken in the course of business. must under law be recorded in monetary in terms for the calculation of tax.
|Reference: The Penguin Business Dictionary, 3rd edt.|