Complete Grade 10 Business Studies study guide in English, aligned to the CAPS curriculum. 18 chapters with explanations, worked examples, exercises with solutions, and original practice papers with memos.

Chapters

Chapter 1. Introduction to Business Studies and the World of Business FREE

Every day in South Africa, millions of people take part in business activity without always naming it. When a learner in Soweto buys a R12 loaf of bread at a Shoprite, when a taxi owner in Mthatha fills up with diesel, or when Sasol sells fuel worth billions of rands, business is happening. Business Studies is the subject that helps you understand this world of buying, selling, producing and managing. It teaches you how businesses are started, how they are run, and how they create the goods, services and jobs that a country needs to grow.

1.1 What is Business Studies?

Business Studies is the study of how people and organisations use scarce resources to produce goods and services that satisfy human needs and wants, while aiming to make a profit. A good is something physical you can touch, such as a Bokomo cereal box or a pair of school shoes. A service is an action done for you, such as a haircut, a taxi ride, or banking at Capitec. The subject draws on four big areas of study: business environments, business operations, business roles and business ventures. Together these help you understand both the inside of a business and the world around it.

1.2 Needs, wants and the economic problem

People have unlimited needs and wants, but the resources to satisfy them are limited. A need is something you cannot live without, such as food, water, clothing and shelter. A want is something that makes life more pleasant but is not essential, such as a smartphone or a holiday in Durban. Because resources are scarce, every person, business and government must choose what to produce and what to give up. This is called the economic problem, and the value of the next best option you give up is called the opportunity cost.

Example: Thandeka has R200 of pocket money. She can buy a pair of takkies for R200 or a school calculator for R200, but not both. Step 1: list the options (takkies or calculator). Step 2: she chooses the calculator because she needs it for Mathematics. Step 3: the takkies she gave up are her opportunity cost. The opportunity cost of the calculator is therefore one pair of takkies.

1.3 Why businesses exist

Businesses exist to satisfy needs and wants by combining resources to produce goods and services, and in doing so they pursue a profit. Profit is what is left after the costs of running the business are subtracted from the money the business earns. We can express this simply:

\[ \text{Profit} = \text{Total Income} - \text{Total Expenses} \]

If a spaza shop in Khayelitsha sells stock worth R8 000 in a month and its expenses (stock, rent, electricity) come to R6 500, then its profit is \( \text{R8 000} - \text{R6 500} = \text{R1 500} \). When expenses are larger than income, the business makes a loss. Profit is important because it rewards the owner for taking risks and provides money to grow the business.

1.4 The role of business in society

Businesses do far more than make money for their owners. They play a central role in the South African economy and community:

They create jobs, which give people an income and reduce unemployment.
They produce goods and services that satisfy the needs and wants of consumers.
They pay taxes to government, which funds schools, clinics, roads and grants.
They encourage skills and training, helping workers grow and earn more.
They support the community through corporate social investment, such as sponsoring local sports or bursaries.

1.5 Types of businesses you will meet

Businesses come in many shapes and sizes. A formal business is registered with government and pays tax, such as Pick n Pay or Woolworths. An informal business is not registered, such as a street vendor selling fruit. Businesses also differ in size: a small business may be a single hair salon, while a large business such as MTN employs thousands of people. You will study the detailed forms of ownership and the different sectors of the economy later in this course; for now it is enough to recognise that the business world is varied and that each type plays its part.

1.6 Why study Business Studies?

Learning Business Studies prepares you to become a wise consumer, a capable employee, and perhaps one day an entrepreneur who starts and runs a business. It builds skills such as planning, decision making, communication and problem solving that are useful in any career. In a country with high unemployment, the ability to spot an opportunity and start a venture can change a family and a community for the better. This subject gives you the foundation to do exactly that.