Grade 12 Business Studies Term 2 Review

Comprehensive practice flashcards covering Business Sectors, Quality of Performance, Leadership, Investments, Insurance, and Team Dynamics based on Grade 12 Term 2 notes.

Name the three types of business sectors.

The three types are primary, secondary, and tertiary.

What is the definition of the primary sector?

The sector that deals with the extraction of raw materials and natural resources, such as mining, fishing, and agriculture.

Describe the function of the secondary sector.

This sector is responsible for changing raw materials acquired from the primary sector into useful products through manufacturing, construction, and energy generation.

What does the tertiary sector provide?

It renders services to the public and businesses, including transport, banking, legal, and health services.

Identify the three business environments and their corresponding extent of control.

Micro environment (Full control), Market environment (Partial/Some/Limited control), and Macro environment (No control).

How is 'quality' defined in a business context?

Products and services that satisfy needs and exceed customer expectations, measured by criteria like reliability, durability, and physical appearance.

What is the difference between quality control and quality assurance?

Quality control is a system of inspecting final products to ensure standards are met, whereas quality assurance involves checks during and after production to prevent mistakes at every stage.

Define Total Quality Management (TQM).

An integrated management approach/system applied throughout the organization that focuses on continuous quality improvement in all business activities.

List the four steps of the PDCA model for improving product quality.

Plan, Do, Check/Analyse, and Act.

What is a 'Quality Circle'?

A group of workers performing similar work who meet regularly to identify, analyse, and solve work-related problems.

Distinguish between management and leadership.

Management focuses on planning, organising, and controlling systems/procedures, while leadership involves influencing and inspiring followers to achieve goals through vision and charisma.

Describe the Autocratic leadership style.

A style where the leader takes decisions on their own without consulting staff, often used in crisis situations or with uncooperative employees.

What characterizes the Laissez-faire/free-reign leadership style?

The leader delegates tasks to followers with little or no direction, trusting competent subordinates to make decisions independently.

Explain the Situational leadership theory.

A theory suggesting that the task or situation dictates the leadership style applied, requiring leaders to be adaptable and flexible based on employee maturity levels.

Name at least four functions of the JSE (Johannesburg Securities Exchange).

Serves as a barometer of economic conditions, link between investors and public companies, regulates share trading, and facilitates electronic trading (STRATE).

What are the six factors to consider when making an investment decision?

Return on investment (ROI), Risk, Investment term/period, Inflation rate, Personal budget, and Taxation/Liquidity.

Define Ordinary Shares.

Standard shares with no special rights where dividends are paid only after profit is made and after preference shareholders are paid; they also provide voting rights at the AGM.

Define Cumulative Preference Shares.

Shares that entitle the holder to receive any outstanding dividends from previous years that were not paid out when profits were low.

What is the formula for calculating Simple Interest?

$$\text{Interest} = P \times R \times T$$

What is the formula for calculating Compound Interest?

$$\text{Amount} = P \times (1 + r)^{n}$$

Explain the concept of 'Average Clause' in insurance.

A stipulation used when property is under-insured, where the insurer pays for loss in proportion to the insured value relative to the market value.

What is the formula for the Average Clause compensation?

$$(\text{Amount insured} \div \text{Market value}) \times \text{Amount of damages/loss}$$

Distinguish between Insurance and Assurance.

Insurance is based on indemnity for events that 'may' occur (like fire), while Assurance is based on security for events that 'will' occur (like death or reaching a certain age).

What are the three main types of compulsory insurance in South Africa?

Unemployment Insurance Fund (UIF), Road Accident Fund (RAF), and Compensation for Occupational Injuries and Diseases (COIDA).

How much does an employee contribute to the UIF?

$1\,\%$ of their basic wage.

Name the five stages of team development in order.

Forming, Storming, Norming, Performing, and Adjourning/Mourning.

What happens during the 'Storming' stage of team development?

Team members experience unease and conflict, confront different ideas, and may experience power struggles before settling into their roles.

Distinguish between a grievance and conflict in the workplace.

A grievance is an individual's formal complaint about being ill-treated or unhappy, while conflict is a disagreement or clash of opinions between two or more parties.

What is the recommended strategy for dealing with an 'Expert' personality?

Be firm and assertive, know your facts, and do not get caught in their game or accuse them of being incorrect.

Define the 'Indemnity' principle of insurance.

The insurer agrees to compensate the insured for specified loss to place them in the same financial position as before the loss, ensuring the insured does not profit.