Business Studies Grade 12 - Term 2 Learner Booklet 2025 Flashcards

Flashcards covering key vocabulary and concepts from Business Studies Grade 12, Term 2 Learner Booklet 2025, focusing on business sectors, environments, quality management, TQM, leadership, investment, insurance, and team performance.

Business sectors

Subdivisions/subsets of economic activities, e.g., primary, secondary, and tertiary.

Primary sector

Deals with the extraction of raw materials and natural resources.

Secondary sector

Responsible for changing the raw materials acquired from the primary sector into useful products.

Tertiary sector

Renders services to the public and businesses.

Micro environment extent of control

Full control

Market environment extent of control

Partial/Some/Limited/Less control

Macro environment extent of control

No control

Quality

A good/service’s ability to satisfy a specific need; measured against specific criteria such as physical appearance/reliability/durability/sustainability/after-sales services.

Quality control

A system that ensures the desired quality is met by inspecting the final product to ensure that it meets the required standards; includes setting targets/measuring performance and taking corrective measures.

Quality assurance

Checks carried out during and after the production process to ensure that required standards have been met at every stage of the process; ensuring that every process aims to get the product 'right the first time'.

Quality management

Techniques/tools used to design/improve the quality of a product; aims to ensure that the quality of goods/services is consistent.

Quality performance

Total performance of each department measured against the specified standards; can be obtained if all departments work together towards the same quality standards.

Total Quality Management (TQM)

An integrated system/methodology applied throughout the organisation, which helps to design/produce/provide quality products/services to customers. Management ensures that each employee is responsible for the quality of his/her work/actions.

PDCA model/cycle-Plan

The business should identify the problem, develop a plan for improvement, and plan the method and approach.

PDCA model/cycle-Do

The business should implement the change on a small scale and implement the processes and systems.

PDCA model/cycle-Check/Analyse

Use data to analyse the results of change, determine whether it made a difference, and check whether the processes are working effectively.

PDCA model/cycle-Act

Institutionalise the improvement, devise strategies on how to continually improve, and implement the change on a wider scale if successful.

Role/Importance of quality circles

Solve problems related to quality and implement improvements, investigate problems and suggest solutions to management, and discuss ways of improving the quality of work/workmanship.

Management

The coordination of planning, organizing, leading, and controlling employees to achieve goals.

Leadership

The ability of an individual or a group of individuals to influence and guide followers or other members of an organization.

Democratic leadership style

Leadership style when group members are skilled and eager to share their ideas, leader does not have all info, decisions from several perspectives.

Autocratic leadership style

Leadership style during crisis situations, when all information is available to solve the problem, or when employees are not cooperative/new.

Laissez-faire/ Free reign leadership style

Leadership Style when subordinates are experts and know what they want and can take responsibility for their actions, leader is busy and delegation will increase productivity.

Charismatic leadership style

Leadership style used to sell vision and achieve excellent results and to motivate employees as the leader is energetic/ inspiring.

Transactional leadership style

Leadership style when the business wants to maximise employee performance, deadlines have to be met on short notice, or when workers have low morale.

Situational leadership theory

Different leadership characteristics are needed for different situations. The task/situation dictates the leadership style that should be applied.

Transformational theory

The passion/vision/personality of leaders inspire followers to change their expectations/perceptions/motivation to work towards a common goal.

Functions of the JSE

Gives opportunities to financial institutions investing surplus funds, serves as a barometer of economic conditions, and keeps investors informed by publishing share prices daily.

Return on investment (ROI)

Income from the investment, namely interest/dividends/increased capital growth on the original amount invested. High risk investments yield higher returns.

Risk

Shares have low/medium risk over a longer investment period. Shares with higher risks have a greater potential for higher returns.

Mutual funds/Stokvels

It is an informal savings scheme to which a relatively small group of people contribute.

Managed portfolio

An investor instructs a financial institution/bank/financial advisor to manage his/her various investments/assets in one portfolio.

32-day notice accounts/Call Deposits

Money is invested at a fixed rate, although withdrawals may be made provided the bank is given 32 days' notice of the withdrawal.

Debentures

Debentures are issued to raise borrowed capital from the public. Debenture holders receive annual interest payments based on the terms/ amounts of debentures held.

Business Ventures/Venture capital

Venture capital is given by an investor/businesses to start up/expand a business in return to have a share in the new/expanded business.

Endowment/Life insurance policies/Retirement Annuities

It is a monthly payment paid to an insurance company with the expectancy of receiving a pre-determined amount on a date in the future.

Impact of RSA Retail Savings Bonds/Government Retail Bonds

Guaranteed returns, attract more investors, affordable for all income earners, easily obtained, no charges/commissions.

Impact of unit trusts

Managed by a fund manager, investor has variety/wider range of shares, safe investments, smaller investments possible.

Impact of shares/Ordinary shares

Higher number of shares may result in higher proportional dividend pay-outs and can be freely transferred/traded on the JSE.

Impact of fixed deposits

Interest is earned at a fixed rate. Ensures financial discipline as investors cannot withdraw their funds before the maturity date.

Ordinary shares

Receive dividends only when profit is made and have a right to vote at the Annual General Meeting/AGM.

Preference shares

Some of these types of shares receive dividends regardless of whether a profit is made and have a preferred claim on company assets,fixed return is paid.

Founders' shares

Issued to the founders/incorporators/promoters of the company and receive dividends after all other shareholders were paid.

Bonus shares

Gifts/Payment in the form of shares to shareholders and issued as compensation for unpaid dividends.

Participating preference shares

Entitled to share in any surplus company profits and have preferential rights over ordinary shares on repayment when the company closes down.

Non-participating preference shares/Ordinary preference shares

Shareholders do not have the right to participate in profits after equity shareholders have been paid a dividend and entitled to only fixed rate dividend.

Cumulative preference shares

Shareholders are compensated for past dividends that were not paid out when profits were too low to declare dividends.

Non-cumulative preference shares

Shareholders are not compensated for past dividends that were not paid out when profits were low.

Redeemable preference shares

Shares can be redeemed/ bought back at the option of the issuing company at a fixed price on a specified date.

Non-redeemable preference shares

Shares are only bought back when the company closes down for reasons other than bankruptcy.

Convertible preference shares

Shares can be converted into a predetermined number of ordinary shares on the date specified when the preference shares were issued.

Non-convertible preference shares

Shares cannot be converted into ordinary shares.

Debentures

It is issued to raise borrowed capital from the public and can be traded on the JSE.

Dividends

Shareholders are paid a dividend, managed by board of directors and approved by the shareholders.

Capital gain

The return on property/fixed assets/investments. Capital gains tax is payable when you sell an asset that has increased in value.

Simple interest

The interest is calculated on the original/principal amount invested. The principal amount remains the same over the entire period of investment.

Compound interest

Interest is calculated in every period on original/principal amount plus interest. This is added to the original/principal amount and interest is earned on interest.

Insurance

Refers to cover for a possible event that may cause a specified loss/ damage and the insured has to pay a premium for specified losses/damages covered.

Meaning of non-compulsory insurance

It is voluntary/the insured has a choice whether to enter into an insurance contract

Over insurance

It is when the item is insured for more than the actual market value , businesses will not receive pay-outs larger than the value of the loss at market value

Under-insurance

The property/asset is insured for less than the current/actual value of the property/assets.

Average clause

A stipulation set by the insurer which is applicable when property/goods is under insured/insured for less than its market value, the insured will then be partly responsible for a part of the loss.

Reinstatement

It is a stipulation whereby the insurer may replace lost/damaged property/goods instead of reimbursing, the reinstatement value will not be higher than the market value of the loss

Excess

A portion of the insurance claim that the insured will have to pay towards the cost of replacing/repairing the goods/property concerned. It keeps premiums lower and they discourage fraud

Indemnification/Indemnity

Usually applies to short term insurance, as the insured is compensated for specified/proven harm/loss, the insured may not profit from it.

Security/Certainty

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 has to be honest in supplying details when entering in an insurance contract and must disclose everything that may affect the extent of the policy.

Insurable interest

Insured must prove that he/she will suffer a financial loss if the insured object is damaged/lost/ceases to exist. An insurable interest must be expressed in financial terms.

Insurable risks

These risks are insured by insurance companies and they decide on the likelihood of an event and then decide if they want to insure the risk.

Non-insurable risks

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

Compulsory insurance

Insurance that is required by law before businesses/individuals may engage in certain activities and is regulated by Government and does not require insurance contracts/brokers.

Unemployment Insurance Fund (UIF)

Fund provides benefits to workers who have been working and become unemployed for various reasons.

Road Accident Fund (RAF)/Road Accident Benefit Scheme (RABS)

Compulsory cover for all road users in South Africa, which include South African businesses. RAF/RABS insures road-users against the negligence of other road users

Compensation Fund/Compensation for Occupational Injuries and Diseases/COIDA

Fund covers occupational diseases and workplace injuries. Compensates employees for injuries and diseases incurred at work.

Interpersonal attitudes and behavior

Members have a positive attitude of support and motivation towards each other, Shows loyalty/respect/trust towards team members despite differences.

Shared values/Mutual trust and support

Shows loyalty/respect/trust towards team members despite differences and shows respect for the knowledge/skills of other members.

Communication

A clear set of processes and efficient communication that results in quick decisions.

Co-operation/ Collaboration

Clearly defined realistic goals are set, so that all members know exactly what is to be accomplished, all members also take part in decision making

Forming Stage

Individuals gather information and impressions about each other and the scope of the task and how to approach it.

Storming Phase

Teams go through a period of unease/conflict after formation and team members open up to each other and confront each other's ideas/perspectives.

Norming/Settling/reconciliation

Team members come to an agreement and reach consensus.

Performing Stage/Working as a team towards a goal

Team members are aware of strategies and aims of the team and all members are now competent, autonomous and able to handle the decision- making process

Adjourning/Mourning stage

The focus is on the completion of the task/ending the project and all tasks need to be completed before the team finally dissolves

Importance of team dynamic theories in improving team performance

Explain how effective teams work/operate, allocate tasks according to abilities and ensure similar strengths compete for tasks.

Handling conflict in the workplace/Conflict resolution steps/techniques

Acknowledge that there is conflict and identify the cause of the conflict, devise ways to resolve such issues.

Grievance

When an employee is unhappy/ has a problem/complaint in the workplace.

Conflict

Clash of opinions/ideas/view points in the workplace which can result in a disagreement between two or more parties.

Correct procedures to deal with grievances

Aggrieved employee must verbally report the incident/grievance to his/her supervisor, should the employee not be satisfied, then he/she could refer the matter to the highest level of management.

Strategy to deal with Complainer

Listen to the complaints but do not acknowledge them. Interrupt the situation and move to the problem-solving process

Strategy to deal with Indecisiveness

Guide them through alternatives, stay in control and emphasize the importance of making

Strategy to deal with Over-agree

Be firm and do not let them make promises that they cannot keep. Follow up on their actions

Strategy to deal with Negativity

Be firm with them and do not let them draw the supervisor into their negativity. Listen to them but do not agree with them

Strategy to deal with Expert

Be firm and assertive. Do not accuse them of being incorrect/Do not get caught in their game. Build your knowledge.

Strategy to deal with Quiet

Do not fill their silence with words wait for their response

Ways in which businesses can deal with difficult employees

Difficult employees can be corrected by regular meetings, identify problems and meeting privately with difficult employees