Grade 11 Business Studies Final Exam Study Notes

Vocabulary study flashcards covering key definitions, frameworks, and theories across Chapters 1 to 11 for the Grade 11 Business Studies Final Exam.

Environmental Scanning

The process of gathering, analysing and interpreting information about current and future events in the internal and external environments to identify opportunities and threats.

Micro Environment

The internal business environment over which management has full control, including culture, resources, structure, employees, and vision and mission.

Market Environment

The external environment where the business has limited control, consisting of competitors, suppliers, intermediaries, consumers, and the market.

Macro Environment

The external environment over which the business has no control, comprising PESTLE factors.

SWOT Analysis

A strategic tool assessing internal Strengths and Weaknesses along with external Opportunities and Threats to formulate strategic combinations.

Porter's Six Forces Model

A model used to assess the attractiveness and profitability of an industry based on threat of new entrants, supplier power, buyer power, threat of substitutes, rivalry among existing competitors, and complementary products.

PESTLE Analysis

A macro-environmental framework used to examine Political, Economic, Social, Technological, Legal, and Environmental factors affecting a business.

Corporate Social Responsibility (CSR)

The responsibility a business has towards society and the environment, beyond just making a profit, ensuring commercial sustainability while meeting society's expectations.

Triple Bottom Line

A sustainability framework measuring business success across three pillars: Profit (Economic), People (Social), and Planet (Environmental).

Corporate Social Investment (CSI)

Specific projects or initiatives funded by a business, such as building schools, skills training, and health clinics.

Planning

The management task undertaken mainly by top management that involves setting goals, developing strategies, and determining resources needed.

Organising

The management task involving grouping tasks, allocating resources, and defining authority and responsibilities through organisational structures.

Leading / Activating

The management task that involves motivating staff, giving instructions, and guiding employees to achieve organisational goals.

Control

The management task of monitoring performance, comparing it to the plan, and taking corrective action.

Autocratic Leadership

A strict, punishment-based leadership style where the leader makes all decisions unilaterally; effective in a crisis.

Democratic Leadership

A consultative, team-focused leadership style that actively involves staff in decision-making and builds high morale.

Laissez-faire Leadership

A leadership style where the leader grants complete freedom to employees, requiring highly skilled and experienced staff.

Charismatic Leadership

A leadership style where the leader relies on personal charm, appeal, and personality to influence others.

Maslow's Hierarchy of Needs

A motivation theory postulating five levels of needs that must be satisfied in order from bottom to top: Physiological, Safety/Security, Social/Belonging, Esteem, and Self-actualisation.

Herzberg's Two-Factor Theory

A motivation model distinguishing between hygiene factors (which prevent dissatisfaction but do not motivate) and motivators (which create true job satisfaction).

Adams' Equity Theory

A motivation theory asserting that employees compare their input/output ratio with that of others and lose motivation if they perceive inequality or unfairness.

Primary Research

Original, first-hand data gathered directly by the business through methods such as surveys, interviews, observations, and questionnaires.

Secondary Research

The collection of existing data previously compiled by others, such as internet sources, textbooks, government statistics, and internal company records.

Sole Proprietor

A business owned by a single individual that is not a separate legal entity, offers unlimited liability, is not bound by the Companies Act, and dissolves upon the owner's death.

Partnership

A business structure formed by $2$ to $20$ partners bound by a Partnership Agreement, where owners share profits and skills but face unlimited liability.

Private Company (Pty Ltd)

A separate legal entity offering limited liability and continuous existence under the Companies Act 71 of 2008, featuring restricted share transfer, no prospectus, and no listing on the JSE.

Public Company (Ltd)

A separate legal entity offering limited liability and continuous existence that is listed on the JSE, freely transfers shares, and must issue a prospectus and publish audited financials.

Delphi Technique

A problem-solving technique where a panel of experts completes questionnaires anonymously over multiple rounds, with results shared after each round until consensus is reached.

Force-Field Analysis

A problem-solving tool that weighs driving forces for change against restraining forces against change, where change succeeds if driving forces outweigh restraining forces.

SCAMPER

A creative thinking technique representing Substitute, Combine, Adapt, Modify, Put to another use, Eliminate, and Reverse.

Indigenous Knowledge (IK)

Traditional knowledge passed down through generations that businesses can apply to innovate new products or improve existing processes.

Consequence-based (Utilitarian) Theory

An ethical framework holding that an action is morally right if it produces the greatest good for the greatest number of people.

Principle-based Theory

An ethical framework asserting that an action is morally right if it adheres to universal moral rules, duties, and principles regardless of the outcome.

King Code of Governance (King IV)

A South African governance framework focused on achieving an ethical culture, good performance, effective control, and legitimacy through transparency, accountability, responsibility, and fairness.

Tuckman's Stages of Team Development

A model outlining the progression of a team through five successive stages: Forming, Storming, Norming, Performing, and Adjourning.

Public Relations (PR)

The management function that establishes and maintains mutually beneficial relationships and trust between an organisation and its internal and external publics.

Income Statement

A financial statement that summarizes all income, expenses, and resulting profit or loss over a specific accounting period.

Balance Sheet

A financial snapshot reflecting the financial position of a business on a specific date based on the accounting equation: $\text{Assets} = \text{Liabilities} + \text{Owner's Equity}$.

Break-even Point

The specific level of sales or production where $\text{Total Revenue} = \text{Total Costs}$, resulting in neither profit nor loss.

Feasibility Study

An investigation carried out to assess the practical viability of a business idea before launch, analysing the target market, capital requirements, required skills, and profitability.

Fidelity Insurance

A specific insurance policy that covers the business against financial losses caused by employee theft or fraud.

Business Interruption Insurance

An insurance policy designed to compensate the business for lost income if a disaster forces operations to halt.

Public Liability Insurance

An insurance policy that covers legal liabilities and costs if a customer or member of the public is injured on the business premises.

Market Segmentation

The process of dividing a broad market into distinct subsets of consumers with shared characteristics such as age, gender, income, lifestyle, or geography.

Consumer Protection Act (CPA)

South African legislation enacted to protect consumers from unfair business practices and ensure rights to privacy, choice, safety, fair value, redress, and information.