Introduction to the Business

Environment
Chapter 1 in Coetzee et al

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Hopes,Dreams and Goals

 Money, self pride

 Growth
 Businesses also have as such.
 Need guidance to achieve and a
clear step to success.

2
Business environment

 Simple business
 Examples
 How to start a business?
 How to make it succeed?
 How to protect the business?

3
Business structure

 Sole proprietor
 Partner
 Private Legal company with shareholders (the owners)-
how to form (Pty)/ Propiety Ltd
 Directors manage the company but don’t own the company

• Public legal company Ltd

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Not examinable – Skills to
have
 CIPC
 Register your profile
 Form companies
 Lodge annual returns
 Change Directors
 Charge for these services
 www.cipc.co.za

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Running a Business

 Much can go wrong in a business, discuss

 How can we protect the business from disasters and to
recover from events?
1. Governance
2. Risk management
3. Policies and procedures
4. Business systems and processes
Discuss in your own words

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Business Consultant

 Guidance on
1. Governance,strategic plan
2. Business structure
3. Relevant business policies and procedures
4. Systems and processes
5. Laws and regulations
6. Who are the stakeholders

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Listed Companies

 Companies Act 2008

 Listed companies must have a board of directors
 Non executive and executive directors
 External auditors
 Audit committee

Internal Audit function

 King Report on Corporate Governance

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 Purpose?

“To 1.evaluate and

Internal 2.improve the effectiveness of governance,

Audit
activity
3.risk management and

4.control within the organisation,

5.supporting management in adding value and

6.providing independent assurance to the board
of directors via the audit committee.

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Internal Audit

 Definition of internal audit

Internal auditing is an appraisal or monitoring activity
established within an entity as a service to the entity. It
functions by, amongst other things, examining,
evaluating and reporting and to management and the
directors on the adequacy and effectiveness of
components of the accounting and internal control
systems.
 Discuss , in your own words.

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