Grade 10 Business Studies Term 1 to Term 4 Summary

Flashcards covering core concepts, environments, business functions, forms of ownership, and management principles from the Grade 10 Business Studies Learner's Book.

What is the meaning of the micro environment of a business?

The micro environment includes everything inside the business over which the business has full or complete control, and all internal affairs are managed by the directors or owners.

What are the components of the micro environment?

The components are the vision, mission statement, goals and objectives; organisational culture; organisational resources; management and leadership; organisational structure; and the eight business functions.

What is the difference between a business vision and a mission statement?

A vision describes what the business wants to achieve in the long term (its dream or future position), whereas a mission statement describes what the business provides or produces, why it exists, and its core aims and values.

What are the four main groups of organisational resources?

Human resources, physical resources, financial resources, and technological resources.

What are the differences between leadership and management?

A leader creates a vision, inspires subordinates, influences human behaviour, communicates via charisma, and possesses natural skills. A manager understands goals, ensures tasks are completed, guides behaviour, communicates through management functions, and is appointed to the position.

What are the three levels of management and the types of decisions they make?

Top-level management makes long-term strategic decisions; middle-level management makes medium-term tactical decisions; and lower-level management makes short-term operational decisions.

What are the five basic management tasks?

Planning, organising, leading (or directing/activating), controlling, and risk management.

What is the difference between data and information in the administration function?

Data refers to raw or unprocessed facts and statistics found in tables or graphs, whereas information refers to processed data used by managers to make meaningful business decisions.

What is the difference between fixed capital and working capital?

Fixed capital finances long-term capital needs invested in fixed assets (such as land and buildings), while working capital finances day-to-day short-term operating activities (such as trading stock and raw materials).

What are the steps in the purchasing procedure?

1. Determine the need for the product (requisition); 2. Determine the price; 3. Select a suitable supplier; 4. Place the order; 5. Collect or receive the order; 6. Pay the supplier; 7. Distribute stock; 8. Complete the order.

What is the purpose of the National Credit Act (NCA) (No. $34$ of $2005$)?

To establish clear guidelines for credit providers and consumers, promote an accessible credit market, discourage reckless credit granting, avoid over-indebtedness, and correct imbalances in negotiating power.

What is the purpose of the Consumer Protection Act (CPA) (No. $68$ of $2008$)?

To prevent consumer exploitation by businesses, establish national standards to protect consumers, promote fair and responsible business practices, and empower consumers to take legal action if their rights are violated.

What are the main components of the market environment?

Consumers/customers, suppliers, intermediaries, competitors, and other organisations/civil society (CBOs, NGOs, regulators, strategic allies, and unions).

How do CBOs and NGOs differ within the market environment?

Community-based organisations (CBOs) are local organisations established to assist the community with job creation, socio-economic development, and basic social upliftment. Non-governmental organisations (NGOs) are non-profit bodies operating separately from the government that supply goods and services to address broader socio-economic issues.

What external elements constitute the macro environment according to the PESTLE framework?

Political (including institutional), Economic, Social (including cultural and demographic), Technological, Legal, and Environmental (including physical/natural and international/global).

How are the micro, market, and macro environments interrelated?

Changes in the macro environment (such as an increase in interest rates) impact the micro environment by raising production costs, which subsequently alters the market environment by causing price increases and lower consumer demand.

What are the primary, secondary, and tertiary business sectors?

The primary sector extracts or cultivates raw materials and natural resources; the secondary sector processes and transforms raw materials into finished or semi-finished goods; and the tertiary sector distributes, transports, and sells goods and provides services to businesses and consumers.

What are the main differences between the formal sector and the informal sector?

The formal sector comprises registered businesses (with CIPC and SARS) that pay taxes, adhere to labour laws, and are counted in GDP figures. The informal sector comprises unregistered, unmonitored small-scale or home-based businesses with irregular incomes that do not pay income tax on business profits.

What is the difference between the public sector and the private sector?

The public sector is owned and managed by the government to provide public goods, services, and infrastructure to uplift living standards. The private sector is owned, financed, and managed by private individuals seeking to generate a profit.

How does HIV/AIDS negatively impact business operations?

It leads to reduced employee productivity, increased absenteeism for clinic appointments or funerals, high staff turnover, loss of experienced personnel, increased hiring and training costs, and lowered staff morale.

What are the three main types of gambling outlined in the curriculum?

Pyramid schemes, illegal gambling (unlicensed casinos or street betting), and money laundering.

What legal protections are available to businesses to prevent piracy?

Copyright (protecting original artistic, musical, or software expressions), patent (exclusive right granted to an inventor to prevent others from producing or importing an invention for up to $20$ years), and trademark (registered signs, logos, or names protected indefinitely if renewed every $10$ years).

What is Corporate Social Responsibility (CSR)?

A company's ongoing commitment to take responsibility for its impact on society and the environment and conduct its operations morally and ethically in line with public expectations.

What are the core qualities of a successful entrepreneur?

Flexibility and the ability to adapt quickly, desire for responsibility, willpower to overcome obstacles, ambition and self-confidence, risk-taking, perseverance, strong management and leadership skills, high motivation/energy levels, and a high degree of commitment.

What are the defining characteristics of a sole proprietorship?

Owned and managed by one person, no legal requirements regarding the business name, no separate legal personality, unlimited liability for all business debts, and lack of continuity upon the death of the owner.

What are the key differences between a private company and a public company?

A private company ends in '(Pty) Ltd', requires at least $1$ director, cannot offer shares to the general public, and does not publish a prospectus. A public company ends in 'Ltd', requires at least $3$ directors, trades shares freely on the JSE, must issue a prospectus, and must publish audited financial statements.

What is a Personal Liability Company?

A form of company whose name ends in 'Inc.', commonly used by professional associations like attorneys and accountants, where current and previous directors have unlimited, joint liability for the debts of the business.

What is the difference between quality control and quality assurance?

Quality control is the inspection of the final product to ensure it meets required standards and taking corrective measures, while quality assurance is the inspection carried out during and after production to ensure standards are met at every stage and to prevent mistakes from occurring.

What are the seven steps of the problem-solving cycle?

1. Identify the problem; 2. Define the problem; 3. Formulate a strategy; 4. Implement the strategy; 5. Allocate resources; 6. Monitor problem solving; 7. Evaluate the problem-solving process.

How does a business apply the Delphi Technique to solve complex problems?

A business invites a panel of experts who are contacted individually through questionnaires, compiles their responses in feedback reports, and sends revised rounds of questionnaires until consensus on the solution is reached.

What does each letter in the SCAMPER problem-solving technique stand for?

Substitute, Combine, Adapt, Modify (or Magnify/Minify), Put to another use, Eliminate, and Reverse (or Rearrange).

What are the three essential ethical rules of a research protocol?

Research may not disadvantage anyone, research may not be inhumane, and research may not exploit anyone.

What is the difference between internal and external market research?

Internal market research is conducted by employees within the company using internal resources and business data, whereas external market research is conducted by outside specialists focusing on customers, competitors, and the broader external market.

What essential legal requirements make a contract legally binding and enforceable?

Parties must have contractual capacity, the agreement must be reasonable and legally possible, necessary legal formalities must be complied with, terms must be certain and clear, and both parties must freely intend to enter into the agreement.

What are the 7Ps of the marketing mix?

Product, Price, Place (distribution), Promotion, People, Process, and Physical environment.

What does the SMART acronym represent when establishing business objectives?

Specific, Measurable, Attainable, Relevant, and Timely.