business studies Flashcards
what is competition influenced by
- new entrants,power of suppliers , power of consumers
why is competition important
keeps price at a reasonable price ,stimulates productivity
why does competition poses as a threat
competition keeps price down and reduces the profitability of the business, 2. competition reduces the business market share and its target market
what are intermediaries
intermediaries are the gap between producers and consumers
what are regulators
regulators remove any bad business practice from the market
what are he organisations that work with regulators
Nersa , Ncr, Icasa ,Asa
what is Asa
advertising standards authority helps with regulating advertising in the public
what is Icasa
Independent communications authority of south africa which helps with communications and broadcasting
what is Ncr
National credit regulator which helps regulate supply of loans form creditors such as banks
Nersa
National energy regulator of south africa which helps with the regulation of electricity
The four administration function
collection of information ,handling of information ,information technology , office practice
purchasing procedure
determine the need for the product ,determine the price of product ,choose a suitable supplier, place an order , collect the order ,distribute stock ,complete order
what is the macro enviroment
it is the external parts of a business where they have no control
what is the three enviroments
the social enviroment , the cultural enviroment , the demographic
importance of stock control
keep the correct levels of stock on hand ,record the cost prices and selling prices of stock
cash payments
cash payers can qualify for cash discounts,
credit payments
the credit payer can pay more for goods due to the interest added on credit purchases
what is the Nca
National credit act ,iit introduces both credit providers and credit applicants with other guide lines
purpose of the Nca
promotes the development of a credit market
, encourage responsible buying
discourage reckless credit granting by credit providers
consumers have the right to
apply for credit , information in one’s official language
impact of national credit act [positives ]
lowering bad debts resulting in better cash flow
protects business against non-paying consumers
prevents reckless lending by financial institution
what are the public relation function
they are responsible for keeping the stakeholders happy
importance of public relations
businesses get publicity for promotional events and information through the media
business can sponsor community
brochures can be used to distribute information
what is exeternal public relations
creates a good company image and awareness to those outside the business
