Year 11 Business Studies Term 1 Review

A comprehensive set of vocabulary flashcards covering key concepts from Year 11 Business Studies.

Nature of Business

The organised effort of individuals to produce and sell goods and services for profit to satisfy needs and wants.

Profit

The financial gain obtained when revenue exceeds expenses.

Gross Profit

Revenue minus the cost of goods sold (COGS).

Net Profit

Gross profit minus all other expenses.

Entrepreneurship

The process of starting and running one's own business, often involving risks.

Research and Development (R&D)

Investment in developing and innovating new products or improving existing ones.

Sole Trader

A business owned and operated by one individual, who has unlimited liability.

Partnership

A business owned by two or more individuals, usually between 2-20 partners, sharing profits and liabilities.

Private Company (Pty Ltd)

A Company in Australia, with 1-50 shareholders, and its shares are not available to the public.

Public Company (Ltd)

A company whose shares are available for public purchase and trading on the stock exchange.

Deregulation

The removal of government regulations from an industry to increase efficiency.

Limited Liability

A legal structure that protects owners' personal assets from the debts of the business.

Stakeholders

Individuals or groups with an interest in the success or failure of a business, including shareholders, employees, and customers.

Cash Flow

The total amount of money being transferred into and out of a business.

Mergers and Acquisitions

Mergers combine two or more businesses, while acquisitions involve purchasing control of another business.

Voluntary Cessation

When a business owner chooses to stop operating the business.

Insolvency

The inability of a business to pay its debts as they fall due.

Liquidation

The process of winding up a company’s financial affairs and selling its assets to pay creditors.