Businesses Flashcards
1
Q
Formal business
A
A business registered by the government
2
Q
Informal business
A
A business unregistered by the government
3
Q
Formal business examples
A
-Woolworths, Pick ‘n Pay (developed property/building)
4
Q
Informal business examples
A
Spaza shops, “corner” or street shops
5
Q
Advantages of formal businesses
A
- products associated with the brand
- times (opening and closing times) consistent
- well developed and have worked hard to be what they are today
- reliable: ^^^
- safer: registered and protected by the government
(4)
6
Q
Advantages of informal businesses
A
-smaller amount of employees and products
1
7
Q
Types of businesses
A
1.-trading: profits from selling goods/products
-manufacturing: profits from products (primary phase)
-service: profits from provision of services
(3)
2.-formal
-informal
8
Q
Types of enterprises
A
- micro-enterprise
- small enterprise
- medium enterprise
- large enterprise
(4)
9
Q
Micro-enterprises
A
Less than 5 people working
10
Q
Small enterprise
A
- owner manages
- 5-50 people
- trades locally
11
Q
Medium enterprise
A
- manager managed
- +200 people
- formal business
- regional/national branches
- customers nationwide
12
Q
Large business
A
- owned by many people whom have bought shares
- hundreds of people employed
- have large amount of sales and production
- location fixed, offices and branches
