BUSINESS P2 Flashcards
(125 cards)
1
Q
Examples of long-term insurance
A
- Life insurance
- Pension fund
- Trauma insurance
- Funeral insurance
- Medical aid
2
Q
MANAGEMENT vs LEADERSHIP
A
MANAGEMENT
- Guides human behavior.
- Does things right.
- Focuses on how and when.
- Task orientated
- Instructional in their approach.
LEADERSHIP
- Influences human behavior.
- Does the right things.
- Focuses on what and why.
- Motivational/Inspirational in their approach.
3
Q
Leadership Styles
A
Democratic leadership
Autocratic leadership
Transactional leadership
4
Q
Advantages of the autocratic leadership style
A
- Quick decisions can be taken without consulting
employees. - Work gets done in time.
- Communication is clear as employees
know exactly what to do. - Clear guidance can be given to new staff.
5
Q
Advantages of the transactional leadership style
A
- Encourages employees to work hard because they will receive rewards
- Improves employees’ productivity and morale.
- Disciplinary action procedures are well communicated.
- The goals and objectives of the business can be achieved as workers are
motivated.
6
Q
Impact of handouts as a visual aid
A
Positives/Advantages
- It is easy to update handouts with recent information.
- Meaningful handouts may be handed out at the start of the presentation to
attract attention
Negatives/Disadvantages
- It only summarizes key information, some details might be lost.
- Printed material is expensive and it is easy to lose hard copies.
7
Q
Factors to be considered while presenting
A
- Avoid hiding behind equipment.
- Show the most important information first
- Maintain eye contact with the audience
- Do not rush or talk too slowly
- Keep the presentation short and simple.
8
Q
Responding to questions after a presentation in a non-aggressive and
professional manner.
A
- Keep answers short and to the point.
- First listen and then respond.
- Always address the questions and not the person.
- Don’t debate when responding to
questions. - Be polite when responding to questions.
9
Q
Principles of insurance
A
Security
- Aims to provide financial security to the dependents of deceased.
Indemnity
- The insured may not profit from Insurance.
Insurable interest
- An insurable interest must be expressed in financial terms.
Utmost good faith
Information supplied when claiming should be true.
10
Q
Impact of non-profit companies
A
Positives/Advantages
- Has continuity of existence even if its members retire.
- Can receive government aid to render their services.
- They provide social services to various communities.
Negatives/Disadvantages
- Needs professional assistance to set up this organisation.
- Does not generate enough capital to cover their expenses.
- Creating a non-profit company takes time, effort and money
11
Q
Components of CSR
A
Environment
Health and safety
Corporate governance
Business ethics
Employees and customers
Community
12
Q
Ways in which professional, responsible, ethical, and effective business
practice should be conducted
A
- Mission statement should include values of equality.
- Treat workers with respect by recognizing work well done.
- Treat all their employees equally, regardless of their race etc.
- All workers should have access to equal opportunities.
- Draw up code of conducts
13
Q
Human Rights
A
- Privacy
- Respect and Dignity
- Equity
- Freedom of Speech and Expression
- Information
- Vote
- Children’s right
- Safety
- Health care
14
Q
Causes of conflict in the workplace
A
- Management and workers may differ in personality and background.
- Constant changes can cause instability.
- Lack of clarity regarding employee’s roles and responsibilities.
- Disciplinary procedures may appear unfair if favoritism or nepotism is involved.
- Certain leadership styles, such as autocratic management, may disregard worker input.
15
Q
Dealing with pricing of goods in rural area.
A
- Charge fair prices for goods and services.
- Avoid unethical business practices to attract customer loyalty.
- Work together with suppliers to share delivery costs to remote rural areas.
16
Q
Importance of team dynamic theories in
improving team performance
A
- Allocates tasks according to the role of each team member.
- Team dynamic theories explain how effective teams work.
- Team members can maximize performance as tasks are allocated
according to their skills
17
Q
CSR VS CSI
A
CSR
- Intention to change business practices.
- Focus on increasing image and profits.
- Often intended as a marketing initiative.
- Projects linked to the business (training the unemployed)
CSI
- Actively committing money and resources to uplift the community.
- Focus on upliftment of community ROI.
- CSI projects relevant to the needs of communities.
- Intended to benefit and uplift communities through social development.
- Projects external to the business with a strong developmental approach.
18
Q
Roles of health and safety representatives in protecting the workplace
environment
A
- Identify potential dangers in the workplace.
- Investigating workers’ complaints.
- Ensure that employers comply with COIDA.
- Ensure that protective clothing is provided to all workers.
19
Q
Examples of non-verbal presentations
A
- Tables
- Graphs
- Handouts
-Diagrams
-Slide shows
20
Q
Benefits of diversity in the workplace
A
- Diversity in the workforce improves morale.
- Businesses with a diverse workforce are more likely to have a good.
public image and attract more customers. - Employees demonstrate greater loyalty to the business because they
feel accepted. - Workforce diversity improves the ability of a business to solve
problems
21
Q
Responsibilities of employees in promoting health and safety
in the workplace
A
- Report unsafe or unhealthy conditions.
- Report accidents to the employer by the end of the shift.
- Use prescribed safety equipment.
- Take reasonable care of their own safety
22
Q
Types of benefits paid out by the UIF
A
- Sickness benefits
- Maternity benefits
- Paternity benefits
- Adoption benefits
- Parental benefits
- Unemployment benefits
23
Q
Situations in which the autocratic leadership style can be applied
A
- When all the information is available to solve the problem.
- In emergencies, where there is a shortage of time.
- When dealing with employees who are not cooperative.
- When employees are new.
- In crisis situations, e.g. accidents
24
Q
Situations in which the transactional leadership style can be applied
A
- The business wants to maximize employee performance.
- Deadlines have to be met on short notice.
- Workers have a low morale.
- Productivity levels are very low.
25
Advantages of a PowerPoint
- Easy to combine with sound.
- Simple may capture the interest of the audience.
- Video clips can provide variety and capture the attention of the audience.
- Slides should only be used where they can summarize
information.
26
Democratic Leadership Style
- The leader involves employees in the decision-making process.
- Clear communication ensures group commitment to final decisions.
- People-oriented, as employees' feelings and opinions are considered.
- Workers feel empowered as they are involved in the decision-making process.
- Handles conflict situations by involving followers in finding the best solution.
27
Autocratic Leadership Style
- A leader takes all decisions alone without involving employees.
- Line of communication is clear as it is top-down; followers know exactly what to do.
- Task-oriented, as the opinions of employees are not considered.
- New employees feel confident as strong leadership is provided.
- Handles conflict situations by telling followers what they should do.
28
Stages of team development
- F orming
- A djourning
- P erforming
- S torming
- N orming
29
Impact of CSI/CSR on Businesses
Positives/ Advantages
- Promotes customer loyalty resulting in more sales.
- Biz may enjoy the support of communities.
-Gives businesses tax advantages such as tax reduction.
Negatives/Disadvantages
- CSI activities distract business focus from its core business functions
- Detailed reports must be drawn up, which can be time consuming.
- Most managers are not trained to handle social programmes.
30
Advantages of creative thinking
- Complex business problems may be solved.
- Improves motivation amongst staff members
- Better ideas are generated.
- Productivity increases as employees may quickly generate multiple
ideas which uses time and money more effectively.
31
Ways in which businesses could promote cultural rights
- Employees should be trained on cultural tolerance.
- Employ people from various cultural backgrounds.
- Encourage employees to participate in cultural activities such as religious
gatherings.
- Allow employees to provide solutions to challenges from their own cultural
perspective.
32
Advantages of force-field analysis
- Employees feel included and understood.
- Employees develop and grow with the business
- Enables businesses to strengthen the driving forces and weaken the restraining
forces.
33
Advantages of a state-owned company
- Profits may be used to finance other state departments.
- Generates income to finance social programmes.
- Jobs are created for all skills levels.
34
Leadership theories
- Situational leadership theory
- Transformational leadership theory
35
Ways in which businesses can deal with difficult employees in the
workplace
- Guidelines for improvement should be given.
- Ask someone in authority for their input into the situation.
- Identify the type of personality which is creating the problem.
- Help difficult employees to be realistic about the task at hand.
36
Aspects of designing a multimedia presentation
- Use legible font and font size.
- Start with the text.
- Keep the text simple.
- Create clear graphics.
- Limit information on a slide.
- Make sure there are no spelling mistakes
37
Link between triple bottom line and social responsibility
Profit
- Businesses should not make a profit at the expense of its
community.
People
- Improve the quality of life of their employees.
Planet
- Recycle, e.g. packaging from recycled material
38
Impact of CSI/CSR on Communites
Positives/Advantages
- Provision of bursaries encourages communities to improve their skills.
- The standard of living of the community is uplifted.
- Better educational facilities are established in poor communities.
Negatives/Disadvantages
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take their own initiatives.
- Businesses tend to focus on CSR programmes that does not directly benefit the community.
39
Ways of contributing to the well-being of the employees
- Provide overtime schedules for fair workload distribution.
- Provide transport to employees who work unusually long hours.
- Establish mentoring programmes for junior employees.
- Conduct team-building sessions to improve employees' morale.
- Provide accommodation for their employees.
40
Implication of equality, respect and on businesses
- Mission statement should include values of equality/respect.
- Training policies should include issues such as
diversity
- All workers should have access to equal opportunities.
41
Handling of conflict in the workplace
- Acknowledge that there is conflict in the workplace.
- Identify the cause(s) of the conflict.
- Arrange a meeting between conflicting employers/employees.
- Parties must agree on the best solution.
- Direct conflicting parties towards finding
solutions.
42
Functions of the Johannesburg Securities Exchange
- Regulates the market for dealing with shares.
- Plans, researches and advises on investment possibilities.
- Ensures that the market operates in a transparent manner.
- Provides protection for investors.
- Encourages short-term investment.
43
Ways businesses could contribute time and effort in improving the well-being
of communities
- Run projects to uplift the community.
- Ensure that the products they supply do not harm consumers.
- Donate money to community projects.
- Make ethically correct business decisions
44
Advantages of insurance for businesses
- Transfers the risk from the insured to an insurance company/insurer.
- Protects businesses against losses due to death of a debtor
- Protects businesses against dishonest employees
44
Roles of the health and safety representatives in protecting the workplace
environment
- Ensure that protective clothing is provided.
- Ensure that all equipment that is necessary to perform the work is provided
- Ensure that employers comply with COIDA.
45
Dealing with unemployment as a socio-economic issue
- Provide SDPs through learnerships.
- Offer bursaries to the community to improve the level of education.
- Create jobs for members of the community.
- Support existing small businesses to create more employment opportunities.
46
Impact of CSR/CSI on communities
Positives
- Community skills can be improved through the provisions of bursaries.
- Better educational facilities are established in poor communities.
- The standard of living of communities is uplifted
Negatives
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take
their own initiatives.
- Businesses tend to focus on CSR projects that does not directly benefit
communities.
47
Types of compulsory insurance
**Road Accident Fund (RAF)**
- Insures road users against the negligence of other road users.
**COIDA**
-The fund covers occupational diseases and workplace injuries.
**UIF**
- Businesses are compelled to register their employees with the fund and to pay contributions to the fund.
48
Transformational leadership theory
- Suitable for a dynamic environment, where change could be drastic
- Leaders have the respect of their followers.
- Encourages followers to try new things.
49
Role of personal attitude in successful leadership
- Positive attitude releases leadership potential for personal growth.
- A leader's good attitude can influence the success of the business.
- Leaders' attitude may influence teams' thoughts.
- Leaders should model the behaviour that they want to see in team
members.
50
Examples of CSI projects
- Buy school uniforms for needy learners
- Offer HIV/ AIDS prevention programmes
- Offer food parcels to alleviate poverty
- Donate money to social events that benefit the community directly.
- Fund additional lessons, for example Mathematics and Science
51
LIMITED LIABILITY vs UNLIMITED LIABILITY
**LIMITED LIABILITY**
- Applicable to companies that have
a separate personality
- Losses are limited to the amount
that the owner invested in the
business.
- The owners personal assets are
protected against the debts of the
business.
**UNLIMITED LIABILITY**
- Applicable to a sole proprietorship
and partnership as they do not have
a separate personality.
- The liability of the owner to pay
debts is not limited to the
business only
- The owners personal assets may be
seized to pay for the debts of the
business
52
Impact of fixed deposit
Positives
- Investors can choose the investment period that suits them
- It has a low risk as investors are guaranteed of the final payment.
-The period of investment can be over a short/medium/long term.
Negatives
- Low returns compared to other investments
- May not outperform the effect of inflation over the long-term.
- The investor cannot withdraw their funds before the maturity date.
53
Factors to be considered when making investment decisions
- Return on investment (ROI)
- Risk
- Investment term
- Inflation rate
- Taxation
- Liquidity
54
Delphi technique
- Experts do not have to be in one place and will be contacted individually.
- Summarise the responses from the experts in a feedback report.
- The business should choose the best solution
55
Types of shares
Bonus shares
Ordinary shares
Preference shares
Founders' shares
56
Impact of RSA
Positives
- Interest is usually higher than on fixed deposits.
- Interest can be received twice a year.
- No charges payable on this type of investment.
Negatives
- Retail bonds are not freely transferable amongst investors.
- Retail bonds cannot be given to banks as security for obtaining loans.
- A minimum of R1 000 must be invested, which may be difficult for some small
investors to accumulate.
57
problem-solving vs decision-making
PROBLEM-SOLVING
- Problems can be solved by a team or an individual team member.
- Alternative solutions are
generated and critically
evaluated.
DECISION-MAKING
- It is often done by one
member of senior management
which makes it authoritarian.
- Various alternatives are
considered before choosing the
best one.
58
Ways in which businesses can create an environment that promotes creative
thinking in the workplace
- Encourage job swops within the organisation.
- Study how other businesses are doing things.
- Encourage alternative ways of doing things
59
Impact of Unit Trust
Positives
- Easy to cash in when an investor needs money
- A small amount can be invested per month.
- Generally, beats inflation on the medium/long term.
Negatives
- Share price may fluctuate.
- It is not a good option for people who want to avoid risks at all costs.
- Units Trusts are not allowed to borrow, therefore reducing potential returns.
60
Meaning of corporate social responsibility
- It is an obligation required by law that benefits the society.
- A business voluntarily takes steps to improve the quality of life of employees
and their communities.
61
Compensation Fund in terms of COIDA as a type of compulsory insurance
- Employees do not have to contribute towards this fund.
- The fund covers occupational diseases and workplace injuries.
- Compensates employees for injuries and diseases incurred at work.
62
- Life insurance
- Pension fund
- Trauma insurance
- Funeral insurance
- Medical aid
Examples of long-term insurance
63
MANAGEMENT
- Guides human behavior.
- Does things right.
- Focuses on how and when.
- Task orientated
- Instructional in their approach.
LEADERSHIP
- Influences human behavior.
- Does the right things.
- Focuses on what and why.
- Motivational/Inspirational in their approach.
MANAGEMENT vs LEADERSHIP
64
Democratic leadership
Autocratic leadership
Transactional leadership
Leadership Styles
65
- Quick decisions can be taken without consulting
employees.
- Work gets done in time.
- Communication is clear as employees
know exactly what to do.
- Clear guidance can be given to low-skilled/inexperienced/new staff.
Advantages of the autocratic leadership style
66
- Encourages employees to work hard because they will receive rewards
- Improves employees' productivity and morale.
- Disciplinary action procedures are well communicated.
- The goals and objectives of the business can be achieved as workers are
motivated.
Advantages of the transactional leadership style
67
Positives/Advantages
- It is easy to update handouts with recent information/developments.
- Meaningful handouts may be handed out at the start of the presentation to
attract attention
Negatives/Disadvantages
- It only summarizes key information, some details might be lost.
- Printed material is expensive and it is easy to lose hard copies.
Impact of handouts as a visual aid
68
- Avoid hiding behind equipment.
- Show the most important information first
- Maintain eye contact with the audience
- Do not rush or talk too slowly
- Keep the presentation short and simple.
Factors to be considered while presenting
69
- Keep answers short and to the point.
- First listen and then respond.
- Always address the questions and not the person.
- Don't debate when responding to
questions.
- Be polite when responding to questions.
Responding to questions after a presentation in a non-aggressive and
professional manner.
70
Security
- Aims to provide financial security to the dependents of deceased.
Indemnity
- The insured may not profit from insurance
Insurable interest.
Utmost good faith
Information supplied when claiming should be accurate/true.
Insurable interest
- An insurable interest must be expressed in financial terms.
Principles of insurance
71
Positives/Advantages
- Has continuity of existence even if its members retire.
- Can receive government aid to render their services.
- They provide social services to various communities.
Negatives/Disadvantages
- Needs professional assistance to set up this organisation.
- Does not generate enough capital to cover their expenses.
- Creating a non-profit company takes time, effort and money
Impact of non-profit companies
72
Environment
Health and safety
Corporate governance
Business ethics
Employees and customers
Community
Components of CSR
73
- Mission statement should include values of equality.
- Treat workers with respect by recognizing work well done.
- Treat all their employees equally, regardless of their race etc.
- All workers should have access to equal opportunities.
- Draw up code of conducts
Ways in which professional, responsible, ethical, and effective business
practice should be conducted
74
- Privacy
- Respect and Dignity
- Equity
- Freedom of Speech and Expression
- Information
- Vote
- Children's right
- Safety
- Health care
Human Rights
75
- Management and workers may differ in personality and background.
- Constant changes can cause instability.
- Lack of clarity regarding employee’s roles and responsibilities.
- Disciplinary procedures may appear unfair if favoritism or nepotism is involved.
- Certain leadership styles, such as autocratic management, may disregard worker input.
Causes of conflict in the workplace
76
- Charge fair/market related prices for goods and services.
- Avoid unethical business practices to attract customer loyalty.
- Work together with suppliers to share delivery costs to remote rural areas.
Dealing with pricing of goods in rural area.
77
- Allocates tasks according to the role of each team member.
- Team dynamic theories explain how effective teams work.
- Team members can maximize performance as tasks are allocated
according to their skills
Importance of team dynamic theories in
improving team performance
78
CSR
- Intention to change business practices.
- Focus on increasing image and profits.
- Often intended as a marketing initiative.
- Projects linked to the business (training the unemployed)
CSI
- Actively committing money and resources to uplift the community.
- Focus on upliftment of community ROI.
- CSI projects relevant to the needs of communities.
- Intended to benefit and uplift communities through social development.
- Projects external to the business with a strong developmental approach.
CSR VS CSI
79
- Identify potential dangers in the workplace.
- Investigating workers’ complaints.
- Ensure that employers comply with COIDA.
- Ensure that protective clothing is provided/available to all workers.
Roles of health and safety representatives in protecting the workplace
environment
80
- Tables
- Graphs
- Handouts
-Diagrams
-Slide shows
Examples of non-verbal presentations
81
- Diversity in the workforce improves morale.
- Businesses with a diverse workforce are more likely to have a good.
public image and attract more customers.
- Employees demonstrate greater loyalty to the business because they
feel accepted.
- Workforce diversity improves the ability of a business to solve
problems
Benefits of diversity in the workplace
82
- Report unsafe or unhealthy conditions.
- Report accidents to the employer by the end of the shift.
- Use prescribed safety equipment.
- Take reasonable care of their own safety
Responsibilities of employees in promoting health and safety
in the workplace
83
- Sickness benefits
- Maternity benefits
- Paternity benefits
- Adoption benefits
- Parental benefits
- Unemployment benefits
Types of benefits paid out by the UIF
84
- When all the information is available to solve the problem.
- In emergencies, where there is a shortage of time.
- When dealing with employees who are not cooperative.
- When employees are new/not fully trained.
- In crisis situations, e.g. accidents
Situations in which the autocratic leadership style can be applied
85
- The business wants to maximize employee performance.
- Deadlines have to be met on short notice.
- Workers have a low morale.
- Productivity levels are very low.
Situations in which the transactional leadership style can be applied
86
- Easy to combine with sound/video clips.
- Simple may capture the interest of the audience.
- Video clips can provide variety and capture the attention of the audience.
- Slides should only be used where they can summarize
information.
Advantages of a PowerPoint
87
- The leader involves employees in the decision-making process.
- Clear communication ensures group commitment to final decisions.
- People-oriented, as employees' feelings and opinions are considered.
- Workers feel empowered as they are involved in the decision-making process.
- Handles conflict situations by involving followers in finding the best solution.
Democratic Leadership Style
88
- A leader takes all decisions alone without involving employees.
- Line of communication is clear as it is top-down; followers know exactly what to do.
- Task-oriented, as the opinions of employees are not considered.
- New employees feel confident as strong leadership is provided.
- Handles conflict situations by telling followers what they should do.
Autocratic Leadership Style
89
- F orming
- A djourning
- P erforming
- S torming
- N orming
Stages of team development
90
Positives/ Advantages
- Promotes customer loyalty resulting in more sales.
- Biz may enjoy the support of communities.
-Gives businesses tax advantages such as tax reduction.
Negatives/Disadvantages
- CSI activities distract business focus from its core business functions
- Detailed reports must be drawn up, which can be time consuming.
- Most managers are not trained to handle social programmes.
Impact of CSI/CSR on Businesses
91
- Complex business problems may be solved.
- Improves motivation amongst staff members
- Better ideas are generated.
- Productivity increases as employees may quickly generate multiple
ideas which uses time and money more effectively.
Advantages of creative thinking
92
- Employees should be trained on cultural tolerance.
- Employ people from various cultural backgrounds.
- Encourage employees to participate in cultural activities such as religious
gatherings.
- Allow employees to provide solutions to challenges from their own cultural
perspective.
Ways in which businesses could promote cultural rights
93
- Employees feel included and understood.
- Employees develop and grow with the business
- Enables businesses to strengthen the driving forces and weaken the restraining
forces.
Advantages of force-field analysis
94
- Profits may be used to finance other state departments.
- Generates income to finance social programmes.
- Jobs are created for all skills levels.
Advantages of a state-owned company
95
- Situational leadership theory
- Transformational leadership theory
Leadership theories
96
- Guidelines for improvement should be given.
- Ask someone in authority for their input into the situation.
- Identify the type of personality which is creating the problem.
- Help difficult employees to be realistic about the task at hand.
Ways in which businesses can deal with difficult employees in the
workplace
97
- Use legible font and font size.
- Start with the text.
- Keep the text simple.
- Create clear graphics.
- Limit information on a slide.
- Make sure there are no spelling mistakes
Aspects of designing a multimedia presentation
98
Profit
- Businesses should not make a profit at the expense of its
community.
People
- Improve the quality of life of their employees.
Planet
- Recycle, e.g. packaging from recycled material
Link between triple bottom line and social responsibility
99
Positives/Advantages
- Provision of bursaries encourages communities to improve their skills.
- The standard of living of the community is uplifted/quality of life of communities is improved.
- Better educational facilities are established in poor communities.
Negatives/Disadvantages
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take their own initiatives.
- Businesses tend to focus on CSR programmes that does not directly benefit the community.
Impact of CSI/CSR on Communites
100
- Provide overtime schedules for fair workload distribution.
- Provide transport to employees who work unusually long hours.
- Establish mentoring programmes for junior employees.
- Conduct team-building sessions to improve employees' morale.
- Provide accommodation for their employees.
Ways of contributing to the well-being of the employees
101
- Mission statement should include values of equality/respect.
- Training policies should include issues such as
diversity
- All workers should have access to equal opportunities.
Implication of equality, respect and on businesses
102
- Acknowledge that there is conflict in the workplace.
- Identify the cause(s) of the conflict.
- Arrange a meeting between conflicting employers/employees.
- Parties must agree on the best solution.
- Direct conflicting parties towards finding
solutions.
Handling of conflict in the workplace
103
- Regulates the market for dealing with shares.
- Plans, researches and advises on investment possibilities.
- Ensures that the market operates in a transparent manner.
- Provides protection for investors.
- Encourages short-term investment.
Functions of the Johannesburg Securities Exchange
104
- Run projects to uplift the community.
- Ensure that the products they supply do not harm consumers.
- Donate money to community projects.
- Make ethically correct business decisions
Ways businesses could contribute time and effort in improving the well-being
of communities
105
- Transfers the risk from the insured to an insurance company/insurer.
- Protects businesses against losses due to death of a debtor
- Protects businesses against dishonest employees
Advantages of insurance for businesses
106
- Ensure that protective clothing is provided.
- Ensure that all equipment that is necessary to perform the work is provided
-Ensure that employers comply with COIDA.
Roles of the health and safety representatives in protecting the workplace
environment
107
- Provide skills development programmes through learnerships.
- Offer bursaries to the community to improve the level of education.
- Create jobs for members of the community.
- Support existing small businesses to create more employment opportunities.
Dealing with unemployment as a socio-economic issue
108
Positives
- Community skills can be improved through the provisions of bursaries.
- Better educational facilities are established in poor communities.
- The standard of living of communities is uplifted
Negatives
- Businesses are not always equipped to address social problems.
- Communities tend to be dependent on CSR programmes and struggle to take
their own initiatives.
- Businesses tend to focus on CSR projects that does not directly benefit
communities.
Impact of CSR/CSI on communities
109
Road Accident Fund (RAF) - - Insures road users against the negligence of other road users.
COIDA
-The fund covers occupational diseases and workplace injuries.
UIF
- Businesses are compelled to register their employees with the fund and to pay contributions to the fund.
Types of compulsory insurance
110
- Suitable for a dynamic environment √, where change could be drastic
- Leaders have the respect of their followers.
- Encourages followers to try new things.
Transformational leadership theory
111
- Positive attitude releases leadership potential for personal growth.
- A leader's good attitude can influence the success of the business.
- Leaders' attitude may influence teams' thoughts.
- Leaders should model the behaviour that they want to see in team
members.
Role of personal attitude in successful leadership
112
- Buy school uniforms for needy learners
- Offer HIV/ AIDS prevention programmes
- Offer food parcels to alleviate poverty
- Donate money to social events that benefit the community directly.
- Fund additional lessons, for example Mathematics and Science
Examples of CSI projects
113
- Applicable to companies that have
a separate personality
-Losses are limited √ to the amount
that the owner invested in the
business.
-The owners personal assets are
protected against the debts of the
business.
UNLIMITED LIABILITY
- Applicable to a sole proprietorship
and partnership as they do not have
a separate legal entity/personality.
-The liability of the owner to pay
debts is not limited to the
business only
- The owners personal assets may be
seized to pay for the debts of the
business
LIMITED LIABILITY vs UNLIMITED LIABILITY
114
Positives
- Investors can choose the investment period that suits them
- It has a low risk as investors are guaranteed of the final payment.
-The period of investment can be over a short/medium/long term.
Negatives
- Low returns compared to other investments
- May not outperform the effect of inflation over the long-term.
- The investor cannot withdraw their funds before the maturity date.
Impact of fixed deposit
115
- Return on investment (ROI)
- Risk
- Investment term
- Inflation rate
- Taxation
- Liquidity
Factors to be considered when making investment decisions
116
- Experts do not have to be in one place and will be contacted individually.
- Summarise the responses from the experts in a feedback report.
- The business should choose the best solution
Delphi technique
117
Ordinary shares
Preference shares
Founders' shares
Bonus shares
Types of shares
118
Positives
- Interest is usually higher than on fixed deposits.
- Interest can be received twice a year.
No charges payable on this type of investment.
Negatives
- Retail bonds are not freely transferable amongst investors.
- Retail bonds cannot be given to banks as security for obtaining loans.
- A minimum of R1 000 must be invested, which may be difficult for some small
investors to accumulate.
Impact of RSA Retail Savings Bonds
119
PROBLEM-SOLVING
- Problems can be solved by a team or an individual team member.
- Alternative solutions are
generated and critically
evaluated.
DECISION-MAKING
- It is often done by one
member of senior management
which makes it authoritarian.
- Various alternatives are
considered before choosing the
best one.
problem-solving vs decision-making
120
- Encourage job swops within the organisation.
- Study how other businesses are doing things.
- Encourage alternative ways of doing things
Ways in which businesses can create an environment that promotes creative
thinking in the workplace
121
Positives
- Easy to cash in when an investor needs money
- A small amount can be invested per month.
- Generally, beats inflation on the medium/long term.
Negatives
- Share price may fluctuate.
- It is not a good option for people who want to avoid risks at all costs.
- Units Trusts are not allowed to borrow, therefore reducing potential returns.
Impact of Unit Trust
122
- It is an obligation required by law that benefits the society.
A business voluntarily takes steps to improve the quality of life of employees
and their communities.
Meaning of corporate social responsibility
123
- Employees do not have to contribute towards this fund.
- The fund covers occupational diseases and workplace injuries.
- Compensates employees for injuries and diseases incurred at work.
Compensation Fund in terms of COIDA as a type of compulsory insurance
124
IMPACT OF DEMOCRATIC LEADERSHIP STYLE
Positves:
