Business Acumen
1st Year, 2nd Semester UCT Notes
, Business Classification
A Business - Activity classified as services, Classification:
merchandising, extractive, or Manufacturing. An entity
Size:
that uses resources, whether natural or human, to create
value, and in so doing, to make a profit” Micro = 0-10 workers
Role of Business – to meet consumer needs and wants Small = 11-50
and create value in a sustainable way Medium = 51-250
Businesses start either when there is an opportunity or
Large = >250
there are no other opportunities for employment
To start you need an idea, legal requirements, and the six Sector:
capitals (*see under frameworks)
Primary – Production or extraction of natural reso
Secondary – Manufacturing and construction
Legal form:
• Sole Proprietorship Tertiary – Goods and services
• Partnership
• Private Company [(Pty) Ltd] – shares not on Commerce:
public exchange Trade – Sale, transfer, or exchange of goods and
• Public Company [Ltd] – shares on the exchange Internal – wholesale or retail
External – import, export, or entreport
The companies have limited liability, their entity is a
legal person, with more registration requirements, Aid to trade – facilitate exchange of goods and se
and are covered by the Companies Act, 2008 E.g. transport, banking, insurance, warehousing, etc
1st Year, 2nd Semester UCT Notes
, Business Classification
A Business - Activity classified as services, Classification:
merchandising, extractive, or Manufacturing. An entity
Size:
that uses resources, whether natural or human, to create
value, and in so doing, to make a profit” Micro = 0-10 workers
Role of Business – to meet consumer needs and wants Small = 11-50
and create value in a sustainable way Medium = 51-250
Businesses start either when there is an opportunity or
Large = >250
there are no other opportunities for employment
To start you need an idea, legal requirements, and the six Sector:
capitals (*see under frameworks)
Primary – Production or extraction of natural reso
Secondary – Manufacturing and construction
Legal form:
• Sole Proprietorship Tertiary – Goods and services
• Partnership
• Private Company [(Pty) Ltd] – shares not on Commerce:
public exchange Trade – Sale, transfer, or exchange of goods and
• Public Company [Ltd] – shares on the exchange Internal – wholesale or retail
External – import, export, or entreport
The companies have limited liability, their entity is a
legal person, with more registration requirements, Aid to trade – facilitate exchange of goods and se
and are covered by the Companies Act, 2008 E.g. transport, banking, insurance, warehousing, etc
