Business Studies Exam Review – Key Acts, Strategies, HR & Quality

Flashcards cover major legislative acts, business strategies, HR processes, quality management and sector/environment basics for exam preparation.

What is the main purpose of the Skills Development Act (SDA)?

To encourage businesses to improve workers’ skills and invest in education and training, especially for previously disadvantaged people.

Name one positive impact of the SDA on businesses.

It increases the number of skilled employees with scarce skills (other valid positives accepted).

Give one disadvantage of the SDA for businesses.

Productivity may decline when employees attend learnerships during work hours.

List one activity regarded as non-compliance with the SDA.

Preventing qualified employees from accessing learnerships.

State one possible penalty for non-compliance with the SDA.

A business may receive large fines or jail sentences depending on severity.

What simple way can businesses comply with the SDA?

Display a summary of the SDA where all employees can see it.

Give one key function of SETAs.

Register and promote learnerships within their sector.

How are SETAs mainly funded?

Through 1 % skills development levies collected from employers’ payrolls over R500 000.

What is the aim of the National Skills Development Strategy (NSDS)?

To improve skills in the public sector and outline responsibilities of education and training stakeholders.

State one goal of the Human Resources Development Strategy (HRDS).

To address skills shortages and promote social development by reducing poverty.

What is the primary purpose of the Labour Relations Act (LRA)?

To provide a framework for sound labour relations and promote collective bargaining.

Mention one advantage of the LRA for businesses.

It promotes quick and less expensive labour-dispute resolution.

Give one disadvantage of the LRA for businesses.

Productivity may decrease if employees engage in union activities during work hours.

Name one action that contravenes the LRA.

Unfairly dismissing employees for participating in legal strikes.

Provide one consequence for non-compliance with the LRA.

The Labour Court can revoke the business licence.

How can a business practically comply with the LRA?

Allow employees to form and join trade unions.

State one right of employers under the LRA.

Employers may institute a lockout during illegal labour action.

Give one right of employees under the LRA.

To embark on a legal strike when procedures are followed.

What is the main purpose of the Employment Equity Act (EEA)?

To promote equal opportunity and fair treatment by eliminating unfair discrimination at work.

List one positive impact of the EEA on a business.

Encourages workforce diversity by hiring people from various racial backgrounds.

Give one negative impact of the EEA on businesses.

Submitting equity reports is time-consuming and administratively burdensome.

Name one act of non-compliance with the EEA.

Harassing or victimising an employee based on race, gender, or disability.

State one penalty for ignoring the EEA.

Large fines imposed by the Labour Court, especially for fronting.

How can businesses comply with the EEA?

Pay employees equally for work of equal value.

What is the primary purpose of the Basic Conditions of Employment Act (BCEA)?

To set minimum terms and conditions of employment and promote fair labour practices.

Give one advantage of the BCEA for businesses.

It specifies work hours, preventing exploitation and clarifying expectations.

Mention one disadvantage of the BCEA for employers.

Employers cannot require staff to work more than 45 hours a week, possibly lowering output.

Provide one action that breaches the BCEA.

Refusing lawful maternity leave to an employee.

Give one consequence for BCEA non-compliance.

The Labour Court may issue a compliance order and impose fines or imprisonment.

State one way a firm can comply with the BCEA regarding hours.

Ensure staff do not exceed 45 working hours per week.

How many consecutive days of annual leave is an employee entitled to under the BCEA?

21 consecutive days per year.

What overtime limit does the BCEA set per week?

Maximum 10 hours overtime per week, by agreement.

At what age is it illegal to employ a child in South Africa?

Under 15 years old.

What is the core purpose of the Broad-Based Black Economic Empowerment Act (BBBEE)?

To spread wealth and economic participation across all population groups, especially black South Africans.

Name one key difference between old BEE and BBBEE.

BBBEE uses five pillars and targets a broader group of disadvantaged people, whereas BEE focused on three pillars and benefitted a few.

Give one positive business impact of BBBEE.

A good BBBEE rating can attract investors and improve company image.

State one negative impact of BBBEE on companies.

Implementation can be costly and administratively burdensome.

Mention one act that constitutes BBBEE non-compliance.

Promoting unsuitable people over qualified black candidates for scorecard points.

Provide one penalty for BBBEE non-compliance.

Loss of government tenders and large fines or imprisonment.

Name one way to comply with the BBBEE ownership pillar.

Sell shares to black investors inside or outside the organisation.

What is the purpose of the Compensation for Occupational Injuries and Diseases Act (COIDA)?

To compensate employees for injuries or diseases sustained in the course of employment.

State one advantage of COIDA for businesses.

Promotes safer workplaces by encouraging compliance with health and safety standards.

Give one disadvantage of COIDA for employers.

Annual contributions to the Compensation Fund may strain cash flow.

Name one non-compliance act under COIDA.

Failing to report workplace accidents to the Compensation Commissioner.

What is a possible sanction for ignoring COIDA?

Fines or imprisonment plus a Labour Court compliance order.

List one way businesses can meet COIDA requirements.

Register with the Compensation Commissioner and pay required premiums.

What is the primary goal of the National Credit Act (NCA)?

To promote responsible lending, protect consumers, and ensure equal access to credit.

Give one advantage of the NCA for businesses.

Protects firms from non-paying consumers through clear legal processes.

Mention one disadvantage of the NCA for businesses.

Strict rules add administrative costs and can lower profit from credit sales.

Provide one example of NCA non-compliance.

Granting credit without affordability assessment (reckless lending).

State one result of non-compliance with the NCA.

The National Credit Regulator may revoke the credit provider’s licence.

How can businesses comply with the NCA?

Conduct affordability assessments and register with the National Credit Regulator.

Name one consumer right under the NCA.

To receive reasons if credit is refused.

What is the central purpose of the Consumer Protection Act (CPA)?

To promote fair, transparent and responsible business practices and protect consumer rights.

State one benefit of the CPA for compliant businesses.

Enhanced customer loyalty due to trust and fair dealings.

Give one drawback of the CPA for firms.

Consumers may exploit return policies, leading to unnecessary returns and costs.

Mention one prohibited practice under the CPA.

False or misleading information about a product’s expiry date.

Provide one penalty for CPA non-compliance.

Large fines, jail sentences, or revocation of business licence.

How can a retailer comply with the CPA regarding cooling-off?

Offer a five-day cooling-off period for direct-marketing purchases.

State one consumer right to information under the CPA.

Contracts must be in plain, easy-to-understand language.

Define ‘strategy’ in a business context.

A long-term, purposeful course of action designed to achieve a specific goal.

List the five basic steps of the strategic management process (Option 1).

1 Vision/mission/objectives; 2 Environmental scanning (SWOT/PESTLE); 3 Formulate strategy; 4 Organise resources & motivate staff; 5 Monitor & take corrective action.

What does SWOT stand for?

Strengths, Weaknesses, Opportunities, Threats.

Give one example of a SWOT ‘Opportunity’.

A vacant building suitable for expansion (other valid examples accepted).

Name the five forces in Porter’s model.

Power of suppliers, Power of buyers, Barriers to entry, Competitive rivalry, Threat of substitution.

In Porter’s Five Forces, when is supplier power high?

When suppliers offer unique products or there are few alternative sources.

What does PESTLE stand for?

Political, Economic, Social, Technological, Legal, Environmental.

Explain forward vertical integration.

A business takes control of its distributors or sales outlets further down the supply chain.

What is market penetration as an intensive strategy?

Selling more existing products to the existing market to increase market share.

Differentiate between market development and product development.

Market development sells current products in new markets; product development introduces new products to existing markets.

Define concentric diversification.

Adding new, related products to appeal to new customers while using existing technology.

What is retrenchment in defensive strategies?

Terminating employees to reduce costs and restructure the business.

List the three business sectors.

Primary, Secondary, Tertiary.

Give one characteristic of the primary sector.

Extraction or harvesting of natural resources.

What level of control does a business have over the macro environment?

No control.

Identify one general challenge within the micro environment.

Lack of adequate management skills.

Define recruitment.

The process of identifying vacancies and attracting suitable candidates.

Name two internal recruitment sources.

Internal email/intranet and office notice boards (others valid).

State one advantage of external recruitment.

It brings new ideas, skills and experiences into the business.

List the first two steps of a typical selection procedure.

1 Determine fair assessment criteria; 2 Screen CVs against those criteria.

Give one purpose of a job interview.

To assess an applicant’s suitability for the job.

Before an interview, what should the interviewer prepare?

A set of questions based on the job’s required skills and knowledge.

What is an employment contract?

A legally binding agreement outlining the rights and duties of employer and employee.

Give one legal requirement of an employment contract.

Both employer and employee must sign it.

Differentiate between piecemeal and time-related pay.

Piecemeal: pay per unit produced; Time-related: pay based on hours/days worked.

What percentage of salary must employees contribute to UIF?

1 % of their basic salary.

Define induction.

The process of introducing new employees to the business, its procedures and colleagues.

List one advantage of a good induction programme.

Quicker adaptation leading to higher productivity.

What is ‘placement’ in HR?

Assigning selected candidates to jobs where they will function best.

Why is continuous skills development important in HR?

Trained employees perform better, increasing productivity and profitability.

How does the LRA affect the HR function?

Dismissals must follow fair procedures; HR must accommodate union activities and collective bargaining.

State one implication of the BCEA for HR managers regarding hours.

Ensure employees work a maximum of 9 hours per day in a 5-day week.

What is quality in business terms?

The ability of a product or service to satisfy customer needs.

Differentiate between quality control and quality assurance.

Control inspects the final product; assurance checks quality at every production stage.

What is a quality management system (QMS)?

A formal framework that documents processes and responsibilities to meet quality objectives.

Define Total Quality Management (TQM).

An integrated, company-wide approach focused on continuous improvement and customer satisfaction.

Name one TQM element.

Continuous skills development (others: continuous improvement, financing & capacity, monitoring & evaluation, total customer satisfaction).

State one advantage of continuous skills development for large businesses.

They can afford specialised trainers and improve overall competence.

Give one disadvantage of continuous improvement initiatives.

They may disrupt well-functioning parts of the business if not managed.

What does the PDCA cycle stand for?

Plan, Do, Check/Analyse, Act.