Nature of business

Producing Goods and Services

Businesses create and sell products to meet consumer needs and wants.

Profit

Financial gain, calculated as revenue minus expenses.

Employment

Providing paid work for individuals.

Income

Money earned from work or investments.

Wage

Payment based on hours worked for casual employees.

Salary

Fixed regular payment for permanent employees.

Shareholder

A person who owns shares in a company.

Dividend

A share of company profits paid to shareholders.

Choice

More businesses lead to a greater variety of products and lower prices.

Innovation

Improving products or processes to remain competitive.

Entrepreneurship

The process of starting businesses and taking financial risks.

Wealth Creation

Businesses generate economic value, increasing national wealth (GDP).

Quality of Life

Businesses impact well-being through wages, services, and ethical practices.

Micro Business

A business with fewer than 5 employees.

Small Business

A business with 5 to 20 employees.

Medium Business

A business with 21 to 199 employees.

Large Business

A business with 200 or more employees.

Multinational Corporation

A company with branches in multiple countries.

Local Business

A business that operates in one small area.

National Business

A business that operates across an entire country.

Global Business

A business that operates in multiple countries.

Primary Industry

Extracts natural resources like farming and mining.

Secondary Industry

Manufactures goods such as factories and construction.

Tertiary Industry

Provides services like retail and healthcare.

Quaternary Industry

Information-based services like IT and research.

Quinary Industry

High-level decision-making and domestic services.

Sole Trader

One owner with full control and unlimited liability.

Partnership

Business owned by 2 to 20 individuals sharing profits and liability.

Private Company (Pty Ltd)

A company with 1 to 50 shareholders and limited liability.

Public Company (Ltd)

A company with unlimited shareholders listed on stock exchange.

Government Enterprise

A business owned by the government.

External Influences

Factors outside a business that can impact its performance.

Economic Factors

Interest rates, inflation, and consumer spending affecting businesses.

Competitive Situation

The level of market competition influencing pricing and strategy.

Stakeholders

Individuals or groups with an interest in a business.

Business Life Cycle

The stages a business goes through from establishment to decline.

Establishment

The phase where a business starts, facing high costs and low profits.

Growth

The phase where business sales increase and expansion occurs.

Maturity

The phase where a business stabilizes with steady profits.

Decline

The phase where sales drop and the business risks closure.

Bankruptcy

A legal status of being unable to repay debts.

Liquidation

The process of selling business assets to pay debts before closing.

Creditors

People or organizations owed money by a business.