Unit 1 Chapter 2

Question 1

internal environment

Answer 1

factors within a business that a business has control over

Question 2

internal environment factors (9)

Answer 2

• resources
• locations
• sources of finance
• existing vs establishing
• support services
• business types
• business models
• SWOT analysis
• CSR

Question 3

external environment

Answer 3

surrounding factors that can impact a business, which it
has minimal control over. macro and operating
factors.

Question 4

operating factors (4)

Answer 4

• customer needs and expectations
• special interest groups
• competitor’s behaviour
• suppliers and the supply chain

Question 5

macro factors (6)

Answer 5

• CSR considerations
• global considerations
• technological considerations
• economic conditions
• legal and government regulations
• societal attitudes and behaviour

Question 6

order of environments

Answer 6

internal) operating) macro)

Question 7

types of businesses (6)

Answer 7

sole trader, partnership, private limited (Pty Ltd), public listed (Ltd), social enterprise, government business enterprise (GBE)

Question 8

sole trader

Answer 8

• 1 individual owner
• unincorporated
• unlimited liability
• profit: owner

Question 9

partnership

Answer 9

• 2-20 owners
• unincorporated
• unlimited liability
• profit: partners

Question 10

private limited company (Pty Ltd)

Answer 10

• up to 50 shareholders
• only specific people
• incorporated
• limited liability
• shares to private

Question 11

public listed company (Ltd)

Answer 11

• unlimited shareholders
• any people
• incorporated
• limited liability
• shares to public

Question 12

social enterprise

Answer 12

• aims to fulfil a social or environmental need
• NOT a business structure
• must give 50% profit
• profit: reinvested or donated

Question 13

government business enterprise (GBE)

Answer 13

• owned and operated by the government
• caters for social needs e.g. transport, housing, communication
• profit: reinvested or to government

Question 14

unincorporated vs incorporated

Answer 14

1. business = owner, same legal entity
2. business ≠ owners, different legal entity

Question 15

unlimited vs limited liability

Answer 15

1. owner is responsible for debt
2. shareholders only liable to extent of original investment

Question 16

types of business models (6)

Answer 16

online, direct-to-consumer, bricks-and-mortar, franchise, importer, exporter

Question 17

online business

Answer 17

operates online
e.g. eBay

Question 18

direct-to-consumer business

Answer 18

products sold directly to customers with no intermediaries
e.g. apple store

Question 19

bricks-and-mortar business

Answer 19

has a physical store presence
e.g. woolworths

Question 20

franchise

Answer 20

grants another person the right to operate under its name and sell its goods and services
e.g. McDonalds

Question 21

importer

Answer 21

purchases goods and services from overseas and sells them in its home country
e.g. Toyota

Question 22

exporter

Answer 22

produces goods and services in its home country and sells them to overseas buyers
e.g. iron ore

Question 23

purchasing an existing business

Answer 23

obtain: premises, equipment, stock/goods, employees, customer accounts, goodwill

Question 24

establishing a new business

Answer 24

consider: location, business name registration, suppliers, staff employment

Question 25

business resources (3)

Answer 25

• natural resources e.g. wood
• labour resources e.g. barista
• capital resources e.g. forklift

Question 26

business locations (4)

Answer 26

shopping centres, shopping centres, home businesses, online businesses

Question 27

sources of finance (4)

Answer 27

equity capital, debt capital, grants, overdraft facilities

Question 28

equity capital

Answer 28

• money from investor for partial ownership
• business doesn’t repay
• investor owns ^50% = major influence
• personal/private/public

Question 29

debt capital

Answer 29

• lent from an external source
• paid back with interest
• e.g. loans

Question 30

grants

Answer 30

• provided by government for a specific reason
• helps business
• business must meet set conditions

Question 31

overdraft facilities

Answer 31

• between bank and business
• account can go below $0
• business must prove they can repay
• high interest rate, expensive

Question 32

business support services (7)

Answer 32

legal support, financial support, technological support, community-based support, formal networks, informal networks, business mentors

Question 33

parts of a business plan (8)

Answer 33

• executive summary
• business owners
• supporting documents
• CSR
• product
• financial plan
• marketing plan
• operations plan

Question 34

SWOT analysis

Answer 34

is a planning analysis tool that helps a business identify its internal strengths and weaknesses, as well as any external opportunities and threats

Question 35

corporate social responsibility (CSR)

Answer 35

the ethical conduct of a business beyond legal obligations, and the consideration of social, economic, and environmental impacts when making business decisions

Question 36

CSR considerations

Answer 36

• aware and responsible
• integrity and honesty
• commitment = positive reputation + competitive

Question 37

CSR strategies

Answer 37

• sourcing sustainable resources
• planning to sell environmentally responsible products
• providing supportive conditions of work
• fair employment