Grade 11 exams business

Adding value

Is the practice of producing a good or service that is worth more than the cost of the resources used in the production process

Tertiary sector

Refers to businesses involved with a provision of services to customers

The quarternary sector

Is a sub category of the tertiary sector where a businesses are involved in intellectual and knowledge based activities that generate and share information such as research organisations

Cooperative

Are for profit social enterprise is set up owned and run by their members who might be employees and or customers

Deed of partnership

Is the legal contract signed by the owners of a partnership the formal deed specify the name and responsibility to each partner and their proportion of any profits or losses

Incorporation

Means that there is a legal difference between the owners of a company and the business itself this ensures that the owners are protected by limited liability

Partnerships

Are a type of private sector business entity owned by 2 to 20 people and they share the responsibilities and burden of running and owning the business

Social Enterprises

Are revenue generating businesses with social objectives at the core of their operations. They can be for profit or nonprofit business entities.

a stock exchange

Is a marketplace for trading stocks and shares of public health companies - highly regulated

Unlimited liability

Is a feature of soul traders and ordinary partnerships were legally liable or responsible for all monies owed to their creditors even if it means they have to sell their personal possession

Corporate social responsibility

Is the conscientious consideration of ethical and environmental practice related to business activity.

Ethical code of practice

The documented beliefs and philosophies of an organisation so that people know what is considered acceptable or not acceptable within the organisation

Emission statement

Refers to the declaration of an organisation overall purpose. It sets objectives.

a vision statement

Is an organisation long-term aspirations for example where the business ultimately wants to be

Conglomerate

Our businesses that provide a diversified range of products and operate in a range of different industries

Demerger

Occurs when a company sells off a part of its business thereby separating into two or more businesses and usually happens due to conflicts or inefficiencies

External economies of scale

Occurs when an organisation average cost falls as the industry grows. Hence, all firms in the industry benefit.

A takeover

Also referred to as a hostile takeover, occurs when a company buys a controlling interest in another firm without the prior agreement or approval of the target company board of directors

Lateral integration

Refers to external growth of firms that have similar operations but do not directly compete with each other

Joint venture

Is a growth strategy that combines the contributions are responsibilities of two or more different organisations in a shared project by creating a separate legal enterprise

Strategic alliances

Are formed when two or more organisations join together to benefit from external growth without having to set up a new legal entity