Introduction to Business Functions

A set of vocabulary flashcards covering the fundamentals of business, types of ownership, business activities, and core organizational functions.

Business

An entity created with a specific purpose or mission, such as providing goods or services to satisfy customer needs, while combining human, physical, and financial resources.

Needs

The essentials or basic requirements needed for survival and well-being, such as food, water, clothing, healthcare, and education.

Wants

Non-essential items or services that enhance lifestyle but are not necessary for survival, such as dining out, entertainment, or fashionable clothing.

Sole Trader

A business where the owner supplies the capital, faces no legal formalities to start, is taxed in his personal capacity, and the business is not a legal entity.

Company

A legal entity separate from its owners (shareholders) formed in terms of the Companies Act $71$ of $2008$.

Close Corporation (CC)

A separate legal entity established in terms of the Close Corporation Act $69$ of $1984$ that can have between $1$ to $10$ members who are natural persons.

Partnership

A legal relationship between $2$ to $20$ people where partners share in the profit and liability of the business for the purpose of making a profit.

Service business

A type of business activity that provides professional support to its clients.

Manufacturers

A business that buys raw materials and converts them into finished products.

Wholesalers

Middlemen who buy in bulk from manufacturers and supply the goods in smaller quantities.

Retailers

Businesses that buy goods from wholesalers and sell them at a mark-up to consumers in smaller quantities.

Business function

A major organisational unit of a business which has specific responsibilities, such as Finance and Accounting.

Accounting and Finance

The business function involving the recording and reporting of financial activity and transactions, such as paying bills, taxes, and preparing payroll.

Marketing and Sales

The business function that aims to satisfy consumer needs through exchange, involving market research, product development, and the marketing mix.

Human Resources Management

The function responsible for managing people relations, recruitment, training, development, and maintaining optimum working conditions.

Management

The function that ensures the entire organisation meets its goals and obligations by effectively working with people and using available resources.

Information system (IS)

A combination of computers, people, procedures, and software that store, organize, and deliver information to support business processes.

Business process

A collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.