Welcome to business Flashcards
What is a business
-An organization or enterprising entity engaged in commercial, industrial, and professional activities.
What are the types of business
-Profits entities
-Non-profit organizations
-Limited liability companies
-Corporations
Why are businesses important in South Africa
-Attracting & growing businesses strengthen the economy by
-Providing locally produced goods & services that can be bought by people and other businesses
-Strong businesses pay taxes which are then used for infrastructure
-They provide jobs the put money in people’s pockets
BEE (Black Economic Empowerment)
-Focused on increasing the number of opportunities for
-Blacks
-Coloured
-Indians
What expanded the BEE
BBBEE (Broad-Based Black Economic Empowerment)
-This addressed
-Gender, social and racial inequality
What can South Africa be classified as
The most:
-Industrialized
-Technologically advanced
-Diversified
What is an economic system
-A regulatory system for controlling aspects of production and distribution.
These include:
-Capital
-Labour
-land
Advantages of a traditional economic system
-No surplus in goods
-Community members are more satisfied in social roles
Disadvantages of the traditional economic system
-Old methods of distribution
-Lack of growth and technology development
Advantages of a Command economic system
-Government creates the potential for mass mobilization of resources
-Increased mobilization of goods results in more job opportunities for community members
Disadvantages of a command economic system
-Creates scarcity due to the inability to plan for individual needs
-There’s no market competition which results in there being no innovation
Advantages of a centrally planned economic system
-Able to meet national and social objectives by addressing issues like environmentalism and anti-corruption
-Governing powers can make regarding the production and distribution of goods and resources
Disadvantages of centrally planned economic system
-Lack of government resources to respond to shortages and surplus
-Governing bodies can become corrupt
Advantages of a Market economic system
-Provides incentives for innovative entrenuership
-Gives consumers a choice in the pricing of goods and services
Disadvantages of a Market economic system
-Potential for monopoly of industries such as technology and healthcare
-Income disparity due to focusing more on economic needs than societal needs
