Business Acumen for Accountants: Summary Cheat Sheet
MODULE 1: What is a Business?
Definition: An organisation that combines resources to produce goods or
services for profit.
Example: A bakery buys flour, hires bakers, and sells bread for a
profit.
Purpose: To satisfy consumer needs and wants ethically and sustainably.
Example: Woolworths sources organic produce to meet customer
demand while reducing environmental harm.
Why Businesses Start:
Spotting a gap in the market
Lack of job opportunities
Example: A graduate starts a tutoring business due to high demand
and lack of employment.
What’s Needed to Start a Business:
Idea: An innovation or improvement
Legal Requirements: Business registration, licenses
Resources:
o Financial (money/funding)
o Human (skills/employees)
o Natural (raw materials)
o Knowledge and experience
Example: Opening a coffee shop requires funding, a trained barista,
a location, and business registration.
Classifications:
Industry Sectors:
o Primary: Extract natural resources (e.g., mining)
o Secondary: Manufacturing (e.g., car production)
o Tertiary: Services (e.g., banking)
, Size: Based on turnover and staff:
o Micro, Small, Medium, Large
Legal Form:
o Sole trader (owned by one person)
o Partnership (2+ owners sharing profits and risk)
o Private Company (Pty Ltd): Not listed on stock exchange
o Public Company (Ltd): Listed and sells shares to the public
Sectors:
o Public (government-owned, e.g., Eskom)
o Private (individually-owned, e.g., Pick n Pay)
MODULE 2: Business Structure & Functions
, Business Functions (Departments):
HR (Human Resources): Hires and supports employees
o Example: Recruitment, payroll, training
IT: Manages tech systems and data
o Example: Maintaining company software and security
Marketing: Promotes the business using the 4Ps (product, price,
place, promotion)
o Example: Social media campaigns
Sales: Makes transactions happen
o Example: A retail store assistant selling products
Finance: Manages money and records
o Example: Budgeting and financial reporting
Operations: Converts inputs into finished goods/services
o Example: A factory producing clothing
Logistics: Manages transport and storage
o Example: Courier delivery planning
Procurement: Buys inputs the business needs
o Example: Purchasing inventory from suppliers
Management Levels:
Executive: Strategic planning (e.g., CEO)
Middle: Tactical management (e.g., branch manager)
Operational: Day-to-day tasks (e.g., store supervisor)
MODULE 3: Business Processes & Success
MODULE 1: What is a Business?
Definition: An organisation that combines resources to produce goods or
services for profit.
Example: A bakery buys flour, hires bakers, and sells bread for a
profit.
Purpose: To satisfy consumer needs and wants ethically and sustainably.
Example: Woolworths sources organic produce to meet customer
demand while reducing environmental harm.
Why Businesses Start:
Spotting a gap in the market
Lack of job opportunities
Example: A graduate starts a tutoring business due to high demand
and lack of employment.
What’s Needed to Start a Business:
Idea: An innovation or improvement
Legal Requirements: Business registration, licenses
Resources:
o Financial (money/funding)
o Human (skills/employees)
o Natural (raw materials)
o Knowledge and experience
Example: Opening a coffee shop requires funding, a trained barista,
a location, and business registration.
Classifications:
Industry Sectors:
o Primary: Extract natural resources (e.g., mining)
o Secondary: Manufacturing (e.g., car production)
o Tertiary: Services (e.g., banking)
, Size: Based on turnover and staff:
o Micro, Small, Medium, Large
Legal Form:
o Sole trader (owned by one person)
o Partnership (2+ owners sharing profits and risk)
o Private Company (Pty Ltd): Not listed on stock exchange
o Public Company (Ltd): Listed and sells shares to the public
Sectors:
o Public (government-owned, e.g., Eskom)
o Private (individually-owned, e.g., Pick n Pay)
MODULE 2: Business Structure & Functions
, Business Functions (Departments):
HR (Human Resources): Hires and supports employees
o Example: Recruitment, payroll, training
IT: Manages tech systems and data
o Example: Maintaining company software and security
Marketing: Promotes the business using the 4Ps (product, price,
place, promotion)
o Example: Social media campaigns
Sales: Makes transactions happen
o Example: A retail store assistant selling products
Finance: Manages money and records
o Example: Budgeting and financial reporting
Operations: Converts inputs into finished goods/services
o Example: A factory producing clothing
Logistics: Manages transport and storage
o Example: Courier delivery planning
Procurement: Buys inputs the business needs
o Example: Purchasing inventory from suppliers
Management Levels:
Executive: Strategic planning (e.g., CEO)
Middle: Tactical management (e.g., branch manager)
Operational: Day-to-day tasks (e.g., store supervisor)
MODULE 3: Business Processes & Success
