Grade 10 Business Functions Lecture Notes

Flashcards covering leadership vs management, business functions, levels of management, management tasks, and the purchasing function.

What is the main role of leaders?

Inspire other people

What is the main role of managers?

Ensures tasks are completed

What type of orientation do leaders have?

People-oriented

What type of orientation do managers have?

Task-oriented

What approach do leaders use?

Motivational approach

What approach do managers use?

Instructional approach

What is leadership?

inspiring and influencing others to achieve business goals

What is management?

the process of achieving business goals

What are the eight business functions?

General management, Administration, Financial, Purchasing, Public relations, Human resources, Production, Marketing

What is the role of general management?

Sets the overall direction or strategy for the business

What are the three levels of management?

Top, Middle, Lower

What type of decisions does Top management make?

Long-term strategic decisions

What type of decisions does Middle management make?

Medium-term tactical decisions

What type of decisions does Lower management make?

Short-term routine/tactical decisions

What are the five basic management tasks?

Planning, Organising, Leadership, Controlling, Risk Management

What does organizing involve?

breaking a plan into action

What is the role of leading?

to guide, motivate and inspire others to achieve goals

What is the purpose of controlling?

Ensures that the business achieves its goals

What is the role of risk management?

Identifies possible risk

What is the administration function responsible for?

Handling of information and data

What types of information does the administration function handle?

accounting records, cost accounting, budgets, statistics

What is data?

Raw/unprocessed facts

What is information?

Processed/analysed data that gives specific knowledge

What is the role of the Financial function?

Planning and managing all the funds and assets of the business

What are some sources of financing for a business?

Bank loans, bank overdraft, asset-based loan, grants, receivable finance, angel funding, venture capital

What does a capital budget estimate?

Estimates the fixed capital

What does a cash budget estimate?

Estimates the working capital

What is fixed capital?

Money invested in fixed assets

What is working capital?

Money for day-to-day activity

What is own capital?

Money provided by the owners of the business

What is borrowed capital?

Money borrowed from financial institutions

What is the role of the public relations function?

Keeping all stakeholders of the business happy

What are some methods of managing public relations?

Promotional events, news conferences, community events, annual reports, brochures, Networking; Social responsibility

What is external public relations?

Creates a good company image and awareness to those outside of the company

What is internal public relations?

Builds the culture of the business (Creating good company image and awareness to employees in the company)

What is the role of the purchasing function?

Buying quality raw materials and services for the business

What is the purpose of the purchasing function?

Manage stock, find reputable suppliers, contact other departments, negotiate payment terms

What is the purchasing procedure?

Determine need, determine price, select supplier, place order, collect order, pay supplier, distribute stock, complete order

What is cash payment?

Payments made by cash/cheque

What is credit payment?

Payments made by credit cards/on a future date

Why is it important to managing stock?

Determine the amount/value of stock; check cost and selling price; meet customer demand; keep correct stock levels; Record the cost prices and selling prices of stock

What is reckless credit?

Credit agreement made without proper assessment

What is the main purpose of the NCA?

To allow more people to apply for credit and protect them from exploitation by credit providers

What is the National Credit Regulator (NCR)?

Organization that ensures the Credit Act is followed by businesses and money lenders

What is the National Consumer Commission (NCC)?

Organization that is responsible for promoting compliance with the NCA and CPA through advocacy and enforcement

What is an ombudsman?

The Ombusdman is an independent person with authority and responsibility to receive, investigate and formaly address complaints from consumers.

What is the aim of the Consumer Protection Act (CPA)?

Protects consumers from exploitation by businesses

What is are the advantages of the CPA for businesses?

Businesses may be safeguarded from dishonest competitors.

What are the disadvantages of the CPA for businesses?

Confidential business information may become available to competitors

What are some discriminatory acts according to Consumer Protection Act?

Charging unfair prices for the same goods and services.

What are the penalties for non-compliance to the Consumer Protection Act?

A contract may be rendered void or a fine or term of direct imprisonment may be imposed

What is the right to privacy under the Consumer Protection Act?

Consumers have the right to stop and restrict unwanted direct marketing

What are some consumers rights under the CPA?

Right to choose, Right to privacy and confidentiality (e.g. of personal info), Right to fair and honest dealings.Consumer Rights of the Consumer Protection Act