Year 11 Business Management Key Terms

Flashcards for Year 11 Business Management Key Terms

Internal Environment

Factors within the business that influence its operations, such as employees, management, and corporate culture.

External Environment

Factors outside the business that can affect its performance.

Operating Environment

Immediate external factors like customers, competitors, suppliers, and special interest groups.

Macro Environment

Broader societal forces such as legal, political, technological, social, and economic conditions.

Sole Trader

A business owned and operated by one person, who bears all the risks and benefits.

Unlimited Liability

The owner's personal assets can be used to cover business debts.

Partnership

A business owned by two or more individuals who share profits, losses, and responsibilities.

Private Limited Company (Pty Ltd)

A business structure with limited liability, where shares are held privately and not traded publicly.

Public Listed Company

A company whose shares are traded on a public stock exchange, allowing the public to invest.

Government Business Enterprise (GBE)

A government-owned and operated business that provides goods or services with the aim of making a profit.

Business Model

The plan or framework a business uses to generate revenue and make a profit from operations.

Online Business

Operates primarily through digital platforms, selling goods or services via the internet.

Direct-to-Consumer Business

Sells products or services directly to customers, bypassing intermediaries.

Bricks and Mortar Business

Has a physical presence, such as a retail store or office, where customers can interact in person.

Franchise

A business model where individuals purchase the rights to operate under an established brand and system.

Importer

A business that brings goods or services into a country for sale.

Exporter

A business that sells domestic goods or services to customers in other countries.

Natural Resources

Raw materials from nature, like water, minerals, and land.

Labour Resources

Human effort and skills used in production.

Capital Resources

Man-made tools, equipment, and facilities used in production.

Business Location

The geographical site where a business operates, influencing accessibility, visibility, and customer traffic.

Equity Capital

Funds contributed by the owners or shareholders, representing ownership interest.

Debt Capital

Funds borrowed from external sources, which must be repaid with interest.

Overdraft Facilities

An arrangement allowing a business to withdraw more money than is available in its account, up to an agreed limit.

Business Support Services

External services that assist businesses, such as legal advice, accounting, and marketing.

Business Planning

The process of setting business goals and outlining strategies to achieve them.

Business Plan

A formal document detailing a business's objectives, strategies, market analysis, and financial forecasts.

Strengths

Internal attributes that are helpful to achieving objectives.

Weaknesses

Internal attributes that are harmful to achieving objectives.

Opportunities

External factors that the business could exploit to its advantage.

Threats

External factors that could cause trouble for the business.

SWOT Analysis

A strategic planning tool used to identify a business's Strengths, Weaknesses, Opportunities, and Threats.

Corporate Social Responsibility

A business's commitment to operate ethically and contribute to economic development while improving the quality of life for employees, the local community, and society at large.