Grade 12 Business Studies Comprehensive Vocabulary Review

Comprehensive vocabulary flashcards covering major business concepts, legislative acts, HR processes, ethics, strategies, quality systems, leadership styles, investments, insurance rules, team stages, and forms of ownership from Grade 12 Business Studies.

Affirmative action

The policy and process of providing preferences in employment opportunities for previously disadvantaged people.

Bargaining council

Negotiations between trade union representatives and employer organisations on labour-related issues such as demand for higher wages or improved working conditions.

Basic Conditions of Employment Act (BCEA)

This Act sets the minimum standard for employment in order to promote fair labour practice.

Compensation for Occupational Injuries and Diseases Act (COIDA)

The Act gives employees who are injured or contract diseases while on duty the right to claim compensation.

Broad-Based Black Economic Empowerment Act (BBBEE)

An Act introduced in order to ensure the full economic participation of previously disadvantaged individuals.

Consumer Protection Act (CPA)

An Act whose main aim is to promote and protect the economic interests of consumers by providing them with information so that they make informed choices.

National Credit Act (NCA)

An Act designed to promote a fair and competitive credit market and protect consumers from reckless lending and over-indebtedness.

Skills Development Act (SDA)

An Act whose main aim is to improve the skill levels of people who are already employed in the business and those entering the workforce.

Labour Relations Act (LRA)

An Act introduced to promote simple procedures for the resolution of labour disputes in the workplace.

Job Analysis

A tool used by the human resources function to obtain and analyse information about the business's workforce so that they can place the right person in the right job.

Job Description

A written component of job analysis that describes the duties and responsibilities of a specific job.

Job Specification

A written component of job analysis that describes the minimum acceptable personal qualities, skills, or qualifications needed for a job.

Induction

The process of introducing new employees to a business, work environment, products, services, policies, and immediate team.

Placement

The process where selected candidates are placed or positioned where they will function optimally and add value to the business.

Piecemeal salary determination

A salary determination method where workers are paid according to the number of items or units produced or actions performed.

Time-related salary determination

A salary determination method where workers are paid for the amount of time they spend at work or on a specific task.

Ethical behaviour

Acting according to a set of values that is morally acceptable in society.

Professionalism

Describes the internationally accepted standards and expectations that businesses and society have of people's conduct and levels of competence in the workplace.

Tax evasion

An illegal practice where a business does not declare all its income to SARS with the aim of paying less tax.

Delphi Technique

A problem-solving technique where a business invites a panel of experts to complete questionnaires individually without meeting face-to-face.

Force Field Analysis

A problem-solving technique that involves listing, scoring, and weighing the driving forces for change against the restraining forces resisting change.

Nominal Group Technique

A problem-solving technique where group members silently brainstorm ideas individually, present them one by one, and anonymously vote on the best solution.

Market Penetration

An intensive strategy where a business focuses on selling existing products into the existing market to increase their market share.

Market Development

A growth strategy where a business aims to sell its existing products in new geographical markets or target customer segments.

Product Development

A growth strategy where a business aims to introduce new products or modify existing products for its current target market.

Backward Vertical Integration

An integration strategy where a business combines with or takes over its suppliers up the supply chain to reduce dependency on external suppliers.

Forward Vertical Integration

An integration strategy where a business combines with or takes over its distributors or retail outlets down the supply chain.

Horizontal Integration

An integration strategy where a business takes control of or merges with other businesses in the same industry that produce or sell similar products.

Concentric Diversification

A diversification strategy where a business adds a new product or service that is related to existing products and will appeal to new customers.

Horizontal Diversification

A diversification strategy where a business adds new products or services that are unrelated to existing products but appeal to current customers.

Conglomerate Diversification

A diversification strategy where a business adds new products or services that are completely unrelated to existing products and appeal to new groups of customers.

Primary Sector

The business sector focused on activities related to the extraction, exploitation, cultivation, or harvesting of natural resources directly from the earth.

Secondary Sector

The business sector focused on manufacturing, processing, converting, or transforming raw materials sourced from the primary sector into semi-finished or finished products.

Tertiary Sector

The business sector focused on providing commercial, financial, and personal services and distributing final products to consumers.

Quality Control

A system that ensures the desired quality is met by inspecting the final product after production to ensure it meets required standards.

Quality Assurance

Checks carried out during and after the production process to ensure standards are met at every stage and to prevent mistakes from happening.

Total Quality Management (TQM)

An integrated management system applied throughout an organization that focuses on continuous quality improvement in all processes to achieve customer satisfaction.

PDCA Model

A continuous quality improvement process consisting of four sequential steps: Plan, Do, Check, and Act.

Democratic Leadership Style

A leadership style where the leader invites team members to participate and contribute ideas to the decision-making process.

Autocratic Leadership Style

A leadership style where the leader takes all decisions alone without consulting or involving employees in the decision-making process.

Laissez-faire Leadership Style

A leadership style where the leader delegates decision-making authority to experienced and trustworthy employees with minimal direction.

Transactional Leadership Style

A leadership style that uses rewards and punishments as incentives to influence employee performance and drive goals.

Charismatic Leadership Style

A leadership style where the leader uses charm, energy, and personality to inspire, motivate, and influence followers.

Return on Investment (ROI)

The additional yield or profit earned after tax expressed as a percentage of the original investment amount.

Liquidity

Refers to the ease and speed with which an investment asset can be converted into cash.

Debentures

Financial instruments issued by a public company to raise borrowed capital from the public, which must be repaid with interest over a specified period.

Unit Trusts

An investment option consisting of pooled funds from multiple investors managed by a professional fund manager across a portfolio of securities.

Simple Interest

Interest calculated strictly on the original principal amount invested using the formula $\text{Interest} = P \times R \times T$.

Compound Interest

Interest calculated in each period on the original principal amount plus all accumulated interest earned in prior periods using $\text{Total Amount} = P \times (1 + r)^n$.

Over-insurance

A scenario where an asset or property is insured for an amount greater than its actual market value.

Under-insurance

A scenario where an asset or property is insured for an amount less than its actual market value.

Average Clause

A clause applied by insurers in under-insurance claims to calculate compensation using the formula $\text{Compensation} = \frac{\text{Amount Insured}}{\text{Market Value}} \times \text{Amount of Loss}$.

Reinstatement

A clause in insurance where the insurer agrees to repair or rebuild damaged property or replace lost items instead of paying a cash payout.

Excess

A predetermined portion of an insurance claim that the insured must pay out of pocket before the insurer covers the remaining loss.

Indemnity

A principle of insurance where the insurer agrees to compensate the insured for specified provable losses to restore them to the same financial position as before the loss.

Utmost Good Faith

A core principle of insurance requiring both parties to disclose all relevant facts honestly and accurately when entering into an insurance contract.

Insurable Interest

A legal requirement that the insured person or business must suffer a direct financial loss if the insured item is lost or damaged.

Forming Stage

The initial stage of team development where members gather information, orientate themselves, and understand the task scope and rules.

Storming Stage

The stage of team development characterized by internal conflict, competing ideas, and power struggles among members.

Norming Stage

The stage of team development where conflicts are resolved, consensus is reached, roles are clear, and members work in harmony.

Performing Stage

The stage of team development where members are autonomous, highly competent, and function cohesively to achieve group objectives.

Grievance

A formal complaint laid by an employee when they feel ill-treated or dissatisfied with employment conditions or employer decisions.

Triple Bottom Line

An accounting framework that evaluates business performance across three key dimensions: Profit (Economic), People (Social), and Planet (Environment).

Corporate Social Responsibility (CSR)

The ongoing commitment by a business to conduct its operations ethically and manage internal processes to impact stakeholders and local society positively.

Corporate Social Investment (CSI)

The investment of corporate money, resources, and time into external community projects without expecting direct business profits.

Limited Liability

A legal condition where owners or shareholders are protected from losing personal assets, as their losses are limited to their invested capital in the business.

Unlimited Liability

A legal situation where business owners or partners are personally liable for all business debts, placing their personal assets at risk.

Memorandum of Incorporation (MOI)

The constitutional document of a company that sets out the rights, duties, and responsibilities of shareholders and directors.

Public Company (Ltd)

A profit-making company registered to offer and sell its shares to the general public, often listed on a stock exchange like the JSE.