1.Establishing a business
1.1.Key concepts
Legal personality, partnership, control, authority, ownership of a business, tax liability, sole
proprietorship, business location, close corporation, company, legal requirements,
business plan.
1.2.Importance of geographical location
LO1: Identify the factors that influence the location of a business.
• Sources of raw materials
• Availability of labour
• Proximity & access to the market
• Availability & cost of
o Transport facilities
o Power & water
o Site & buildings
• Availability of capital
• Attitudes, regulations and tariffs of local authorities
• Existing business environment
• Social environment
• Climate
• Central government policy
• Personal preference
1.3.Legal forms of ownership
LO3: Discuss the key considerations that are applicable when a form of business has to be
chosen.
• Legal/juristic personality
• Limited liability
• Degree of control/management
• Potential for capital acquisition
• Legal formalities & regulations
• Taxation
• Ease with which business or entrepreneur’s interest can be transferred
LO2: Distinguish between the different forms of ownership in SA.
• Sole proprietorship
• Partnership
• Close corporation
• Company
• Business trust
• Co-operative society
• Joint ventures
1.1.Key concepts
Legal personality, partnership, control, authority, ownership of a business, tax liability, sole
proprietorship, business location, close corporation, company, legal requirements,
business plan.
1.2.Importance of geographical location
LO1: Identify the factors that influence the location of a business.
• Sources of raw materials
• Availability of labour
• Proximity & access to the market
• Availability & cost of
o Transport facilities
o Power & water
o Site & buildings
• Availability of capital
• Attitudes, regulations and tariffs of local authorities
• Existing business environment
• Social environment
• Climate
• Central government policy
• Personal preference
1.3.Legal forms of ownership
LO3: Discuss the key considerations that are applicable when a form of business has to be
chosen.
• Legal/juristic personality
• Limited liability
• Degree of control/management
• Potential for capital acquisition
• Legal formalities & regulations
• Taxation
• Ease with which business or entrepreneur’s interest can be transferred
LO2: Distinguish between the different forms of ownership in SA.
• Sole proprietorship
• Partnership
• Close corporation
• Company
• Business trust
• Co-operative society
• Joint ventures
