front 1 Business | back 1 An organised effort of individuals to produce and sell goods and services for profit to satisfy needs and wants |
front 2 Goods | back 2 Tangible products that can be seen or touched (e.g. food clothing electronics) |
front 3 Services | back 3 Intangible activities provided to customers (e.g. hairdressing banking) |
front 4 Profit | back 4 Financial reward gained when revenue is greater than expenses |
front 5 Profit Formula | back 5 Profit = Revenue − Expenses |
front 6 Employment | back 6 Businesses provide jobs and income for people in the economy |
front 7 Income | back 7 Money earned by individuals through work or business ownership |
front 8 Wages | back 8 Payment made to employees based on hourly work |
front 9 Salary | back 9 Fixed annual payment to employees |
front 10 Commission | back 10 Payment based on a percentage of sales made |
front 11 Bonus | back 11 Extra payment given as a reward for good performance |
front 12 Fringe Benefits | back 12 Non-cash benefits given to employees such as company cars or discounts |
front 13 Dividend | back 13 A share of profit paid to shareholders of a company |
front 14 Choice | back 14 Competition between businesses gives consumers more variety and options |
front 15 Innovation | back 15 The process of improving or creating new products or services |
front 16 Research and Development (R&D) | back 16 Activities businesses undertake to develop new products or improve existing ones |
front 17 Entrepreneur | back 17 A person who starts and runs a business and takes financial risks |
front 18 Risk | back 18 The possibility that a business may lose money |
front 19 Wealth | back 19 The total value of goods services and assets produced in an economy |
front 20 Quality of Life | back 20 The overall standard of living and wellbeing of individuals in society |
front 21 Micro Business | back 21 A business with fewer than 5 employees |
front 22 Small Business | back 22 A business with 5–19 employees |
front 23 Medium Business | back 23 A business with 20–199 employees |
front 24 Large Business | back 24 A business with 200 or more employees |
front 25 SME (Small to Medium Enterprise) | back 25 A business with fewer than 200 employees |
front 26 Local Business | back 26 A business that operates in a small geographic area |
front 27 National Business | back 27 A business that operates across one country |
front 28 Global Business | back 28 A business that operates in multiple countries around the world |
front 29 Primary Industry | back 29 Industry involved in extracting natural resources (e.g. mining farming) |
front 30 Secondary Industry | back 30 Industry involved in manufacturing goods from raw materials |
front 31 Tertiary Industry | back 31 Industry that provides services to consumers and businesses |
front 32 Quaternary Industry | back 32 Industry based on knowledge and information services such as IT and research |
front 33 Quinary Industry | back 33 Industry providing domestic or personal services such as childcare and hospitality |
front 34 Unincorporated Business | back 34 A business where the owner and business are legally the same |
front 35 Incorporated Business | back 35 A business that is a separate legal entity from its owners |
front 36 Unlimited Liability | back 36 The owner is personally responsible for all business debts |
front 37 Limited Liability | back 37 The owners are only responsible for debts up to the amount they invested |
front 38 Sole Trader | back 38 A business owned and operated by one person |
front 39 Sole Trader Advantage | back 39 Easy to start full control keeps all profit |
front 40 Sole Trader Disadvantage | back 40 Unlimited liability and limited access to capital |
front 41 Partnership | back 41 A business owned by 2–20 people who share profits and responsibilities |
front 42 Partnership Advantage | back 42 Shared responsibility and more capital |
front 43 Partnership Disadvantage | back 43 Unlimited liability and possible disagreements |
front 44 Private Company (Pty Ltd) | back 44 A company owned by shareholders but not listed on the stock exchange |
front 45 Public Company (Ltd) | back 45 A company that sells shares to the public on the stock exchange |
front 46 External Influences | back 46 Factors outside the business that cannot be controlled but affect operations |
front 47 Internal Influences | back 47 Factors inside the business that management can control |
front 48 Economic Influence | back 48 Factors such as inflation unemployment interest rates and economic growth |
front 49 Financial Influence | back 49 The availability of finance such as loans or investment capital |
front 50 Geographic Influence | back 50 Physical location factors such as climate distance and natural resources |
front 51 Social Influence | back 51 Changes in society’s values attitudes and lifestyles |
front 52 Legal Influence | back 52 Laws and regulations businesses must follow |
front 53 Political Influence | back 53 Government policies that affect businesses |
front 54 Institutional Influence | back 54 The impact of organisations such as regulators or unions |
front 55 Technological Influence | back 55 Advances in technology that affect how businesses operate |
front 56 Competitive Situation | back 56 The level of competition between businesses in a market |
front 57 Product | back 57 The goods or services a business sells |
front 58 Location | back 58 The physical place where a business operates |
front 59 Resources | back 59 Inputs used by businesses including human physical financial and information resources |
front 60 Management | back 60 The process of planning organising leading and controlling resources |
front 61 Business Culture | back 61 The shared values beliefs and behaviours within a business |
front 62 Stakeholders | back 62 Individuals or groups with an interest in a business’s activities |
front 63 Internal Stakeholders | back 63 Stakeholders inside the business such as owners managers and employees |
front 64 External Stakeholders | back 64 Stakeholders outside the business such as customers suppliers and government |
front 65 Business Life Cycle | back 65 The stages a business goes through from start-up to decline |
front 66 Establishment Stage | back 66 The stage where the business begins operations and faces high costs and low sales |
front 67 Growth Stage | back 67 The stage where sales increase and the business expands |
front 68 Maturity Stage | back 68 The stage where growth slows and competition increases |
front 69 Post-Maturity Stage | back 69 The stage where the business may renew remain stable or decline |
front 70 Business Decline | back 70 A decrease in sales profits or market share |
front 71 Voluntary Cessation | back 71 When the owner chooses to close the business |
front 72 Involuntary Cessation | back 72 When creditors force a business to close |
front 73 Bankruptcy | back 73 A legal process where individuals cannot repay debts |
front 74 Voluntary Administration | back 74 An external administrator is appointed to attempt to save the company |
front 75 Liquidation | back 75 The process of selling a company’s assets to repay creditors |