Business Studies Grade 12

Flashcards for Business Studies Grade 12 Lecture Notes

Needs

The physical and mental conditions which are compulsory to be fulfilled by humans.

Wants

The different ways of fulfilling the needs

Characteristics of Needs

Essential for survival, common to all, limited.

Characteristics of Wants

Unlimited, varies from person to person, can be created by businesses, subjective.

Products

Anything offered to the market which fulfills human needs and wants.

Goods

Tangible and can be stored.

Services

Intangible and cannot be stored.

Market

Any situation where buyers and sellers meet or connect.

Characteristics of a Business

Exchange or selling takes place, transactions of goods and services, continuous transactions, motivated by profit, has a risk, creates wants, and is an economic activity.

Main Activities of a Business

Fulfillment of needs and wants and adding value to the resources.

Goals of a Business

Survival in the market, profit maximization, sales maximization, increasing market share, increasing consumer satisfaction, maximizing the market value of shares, personal satisfaction of businessmen, social and community welfare, and employee welfare.

Contribution of Businesses to the Economy

Satisfying complex and changing wants, innovation, generating employment, and national economic development.

Direct Production

Producing his own requirements by himself.

Indirect Production

Producing for the market.

Evolution of Money

Use of materials, use of metals, use of metal money, use of coin & notes, use of bank money, use of electronic money.

Auxiliary Services

Banking, transport, insurance, communication and warehousing.

Commerce

Trade + Support Services.

Electronic Commerce

When buying and selling activities are conducted through the internet

Electronic Business

When all activities which belong to the business are conducted by the use of internet.

New Trends in the Business Field

Expansion of globalization, emergence of electronic businesses, use of electronic money, concern on environment and concern on business social responsibilities.

Criteria for Business Classification

According to the nature of the production, according to the ownership/proprietorship, according to the goals, according to the scale and according to the production sector/source of production.

Primary Sector

Agriculture, forestry and fishing, mining and quarrying.

Secondary Sector

Manufacturing industries and construction industries.

Tertiary Sector

Electricity, gas providing steam and air conditioning, clarification and distribution of water, banking, insurance and real estate etc.

Inputs (Resources) for Business Activities

Land, Labour, Capital, Entrepreneurship, Information, Time, Knowledge

Basic Functions of a Business

Administration, Production, Marketing, Financial activities, Human resource activities, Research and development.

Reasons for Owner's Interest in a Business

To know if they receive an adequate profit for the money they have invested, to find about the growth of the business and to know the market share.

Reasons for Manager's Interest in a Business

To maximize the profit of the business, to know the growth of the business and to know the successfulness of the management decisions.

Reasons for Employee's Interest in a Business

To obtain a higher salary, to obtain a bonus and to get promotions.

Reasons for Debtor's Interest in a Business

To know the ability of recovering the loans and to know the safety of the lendings.

Reasons for Customer's Interest in a Business

To receive quality goods and services and to see if the responsibilities are fulfilled properly.

Reasons for Supplier's Interest in a Business

To receive continuous orders and to collect money back for the goods supplied.

Reasons for Potential Investor's Interest in a Business

To invest their resources in that business in the future.

Reasons for Government's Interest in a Business

To collect taxes/ to give tax reliefs and to improve the employment.

Reasons for Community's Interest in a Business

To know about the environment protection and to obtain job opportunities.

Business Environment

The environment, in which the factors which influence the business operates.

Internal Environment

The forces and conditions that influence and exist within an organization.

External Environment

All forces that influence and exist outside of an organization.

Immediate Environment (Task Environment)

The specific organizations or groups that influence and belong to external environment of the business.

Macro Environment or General Environment

The broad environment of a business and influential groups related to it.

Internal Environmental Factors

Owners, Managers, Employees, Organization culture, Organization structure and Resources.

Task Environmental Forces

Customers (Consumers), Suppliers, Competitors, Produces of substitute products and Potential businessmen.

Macro Environmental Forces

Economic environment, Political environment, Legal environment, Technological environment, Demographic environment, Natural environment, Social and cultural environment and Global environment.

Internal forces

The forces inside a school, which impact the day today learning.

Social responsibility

Social responsibility is to perform business activities in an unbiased way to all the stakeholders.

Sustainable development

Sustainable development is development which meets the needs of the present, without compromising the ability of future generations to meet their own needs.

Business ethics

Business ethics means to act favorably to all the interested parties acknowledging the good and bad.

Tax

is a must payment imposed on a person or an institute by a government or an authorized institute of a government

monetary policy

The policy that a government follows, to control the money supply of a country

Consumer protection

is the legal cover that ensures customer receives sufficient satisfaction for the money he pays