Business Studies Grade 12 Flashcards

Comprehensive vocabulary flashcards covering the grade 12 Business Studies curriculum, including business concepts, environment, organization types, finance, insurance, communication, and international trade.

Business

Any economic activity that fulfills human needs and wants, including production, distribution, and selling of goods and services with or without a profit motive.

Needs

The physical and mental conditions that are compulsory to be fulfilled by humans for survival, such as food, clothes, house, and education.

Wants

The different ways of fulfilling needs, which are unlimited, vary from person to person, and can be created by businessmen.

Product

Anything offered to the market which fulfills human needs and wants, categorized mainly into goods and services.

Goods

Tangible products that can be touched, stored, are separable from the producer, and can be produced as identical items.

Services

Intangible products that cannot be touched or stored, vary according to the provider, and are inseparable from the service provider.

Market

Any situation where buyers and sellers meet or connect to obtain goods and services.

Consumer Goods

Goods bought for final or end consumption, such as bread, clothes, and shoes.

Industrial / Business Goods

Goods bought for the production of consumer goods, such as raw materials and machinery.

Value Addition

The increment of the value of resources that occurs when the nature of the resource is changed during the production of goods and services.

Direct Production

A system where individuals or groups produce their own requirements by themselves, a key feature of a self-sufficient economy.

Indirect Production

Producing goods and services specifically for the market rather than for personal consumption.

Barter System

The first stage of the evolution of business characterized by exchanging one's surplus production for another's surplus production.

Commerce

The combination of trade and auxiliary / support services ($\text{Commerce} = \text{Trade} + \text{Support Services}$).

Electronic Commerce (E-commerce)

The conduct of buying and selling activities through the internet.

Electronic Business (E-business)

A system where all activities belonging to the business are conducted using the internet.

Primary Sector

Businesses that extract natural resources in their own form for production, such as agriculture, forestry, fishing, mining, and quarrying.

Secondary Sector

Businesses that convert natural resources into other productions, including manufacturing and construction industries.

Tertiary Sector

The sector consisting of businesses that provide services, such as banking, insurance, and transport.

Internal Environment

The forces and conditions that influence and exist within an organization, including owners, managers, employees, organization structure, and culture.

Immediate / Task Environment

The specific outside organizations or groups that influence a business, such as customers, suppliers, competitors, and potential businessmen.

Macro / General Environment

The broad external environment including economic, political, legal, demographic, technological, natural, social, cultural, and global forces.

Organization Culture

The beliefs, values, attitudes, norms, habits, and behavioral patterns shared among everyone in a business and handed to future generations.

Business Social Responsibility (BSR)

The continuous commitment by a business to act ethically and contribute to economic development while improving the quality of life of the workforce, local community, and society.

Sustainable Development

Development which meets the needs of the present without compromising the ability of future generations to meet their own needs.

4R Concept

A sustainability concept focusing on Recycle, Reuse, Reduce, and Replace to manage waste in production and consumption.

Business Ethics

Acting favorably toward all interested parties by acknowledging what is good and bad/right and wrong in business conduct.

Fiscal Policy

The functions performed by the government related to its revenue (tax and non-tax) and expenditure.

Direct Tax

Tax charged on the income or assets of a business that must be paid by the relevant party itself, such as Corporation Tax or Payee Tax.

Indirect Tax

Tax charged on goods and services that can be transferred to another party, such as Value Added Tax (VAT) or Customs Duties.

Monetary Policy

The policy followed by a government, executed by the Central Bank, to control the money supply and maintain price stability.

Statutory Reserve Requirement (SRR)

The volume of deposits that commercial banks must maintain in the Central Bank relative to the deposits they hold.

Consumer Protection

The legal cover that ensures a customer receives sufficient satisfaction for the money they pay and is protected from trade malpractices.

Sole Proprietorship

A business organization where the ownership is held by a single individual who provides capital, makes all decisions, and has unlimited liability.

Partnership

The relationship between individuals (minimum $2$, maximum $20$) who carry out a business with a profit motive based on an agreement.

Incorporated Company

A collection of individuals distinct from its shareholders, incorporated under the Companies Act No. $7$ of $2007$, featuring perpetual succession and limited liability.

Co-operative

An autonomous association of people united voluntarily to meet common economic, social, and cultural needs through a jointly owned and democratically controlled enterprise.

Franchise

A business method where a franchisor assigns the authority to market products or services under its brand name to a franchisee in a specific trade zone.

Horizontal Combination

The combination of two or more businesses engaged in similar business activities.

Vertical Combination

Joining together business units at different stages in the production or marketing process within the same industry.

Conglomerate Combination

Joining together businesses that are not in the same industry.

Entrepreneurship

The process of extracting environmental opportunities creatively and generating innovation while bearing risks to satisfy human needs and wants.

Intra Entrepreneurship

Entrepreneurship where creative individuals within an organization introduce and implement changes in products or production methods.

Money

Anything that is generally accepted in exchange for goods and services.

Near Money

Assets that function as a store of value and can be converted to cash easily, such as Time Deposits, Treasury Bills, and Commercial Papers.

Unit Trust

An investment fund raised through the sale of units to investors and managed by professional fund managers in an investment portfolio.

Bank Overdraft

A facility where a bank allows a current account holder to draw cheques for more than the credit balance available in their account.

Cheque

A written order issued by a current account holder (drawer) to a commercial bank (drawee) to pay a stated amount to a named person (payee) or bearer.

Endorsement

Writing the name of the payee on the reverse side of a cheque exactly as it appears on the face to confirm a legitimate transfer.

Insurance

An agreement between an insurer and the insured where the insured pays a premium and the insurer agrees to pay compensation for losses from specified risks.

Principle of Indemnity

An insurance principle where the insurer pays an adequate amount of compensation to restore the property to its state before the damage, without allowing the insured to profit.

Subrogation

An insurance principle where the insurer, after settling a loss, takes over the remaining rights and advantages of the insured regarding the damaged property.

Communication

Sending, receiving, understanding, and sharing information from one party to another or many parties.

Logistics

The process of planning and implementing the efficient flow of goods, services, and information from the point of origin to the point of consumption.

Entrepot Trade

Trade where goods are imported from one country, kept in a warehouse at the port of entry without being brought into the country, and re-exported to another.

Bill of Lading ($B/L$)

A document issued by a ship-owner or agent confirming that goods have been received on the ship for transport to a destination port.

Letter of Credit ($L/C$)

A confirmatory document issued by an importer's bank to an exporter's bank stating that payment for shipped goods will definitely be made.

Trade Block

A free trade zone where multiple countries work together in accordance with a treaty regarding tariffs, duties, and trade, such as the EU or ASEAN.