Business Studies Flashcards

Flashcards on Business Studies topics, including investment, JSE functions, risk factors, types of shares, interest calculations, insurance, social responsibility, team performance etc.

Simple interest

It is when interest is paid on the original amount only and not on the accrued interest.

Dividends

It is the return/or earning which shareholders receive for investing in shares/when they have bought shares

Capital gain

It is the extra money the investor makes from selling an asset.

Debenture

The lender agrees to lend money to the company on certain conditions for a certain period.

Compound interest

It is when interest is earned also on the interest accrued, not only on the amount invested.

Fixed rate

The rate of return stays the same for the period.

Shareholder

An owner or part owner in a company

Johannesburg Security/Stock Exchange/JSE

Acts as a link between investors and public companies.

Average clause

A stipulation set by the insurer which is applicable when property/goods is under insured/insured for less than its market value.

Excess

A clause which states that the insured is responsible for a fixed amount of the loss or damages when submitting a claim.

Indemnification/Indemnity

Usually applies to short term insurance, as the insured is compensated for specified/proven harm/loss.

Security

Applies to long-term insurance where the insurer undertakes to pay out an agreed-upon amount in the event of loss of life.

Utmost good faith

Insured must be honest in supplying details when entering in an insurance contract.

Compulsory Insurance

Insurance that is required by law before businesses/individuals may engage in certain activities.

Non-insurable risks

These risks are not insured by insurance companies as insurance cost/risks are too high/remains the responsibility of the business.

Team

Group of people who work together to achieve a common goal.

Conflict

A disagreement/a clash of opinions in the workplace.

Teamwork

Interactions with team members to achieve a common goal.

Team dynamics

A way in which team members work together in a group.

Forming

Team members get to know each other and accept their roles in the team.

Storming

Team members confront each other with their different ideas.

Norming

Team members accept each other and set common goals and values for the team.

Performing

An accomplished task measured against pre-set standards.

Adjourning

Team members must leave a team after completion of the tasks.

Team dynamic theories

Assist to allocate tasks according to the roles of individual members.

Grievance

A formal complaint laid by an employee when he/she feels that