Business Studies Chap 4 Flashcards

Contemporary socio-economic issues and businesses

1
Q

What is the impact of Low Income Levels

A
  • Many S.ANS live in poverty, which limits their buying power
    -Because of this limited consumer spending, buses. are unable to grow and prosper
    -Consumers opt to spend money on cheaper goods and products
    -Low-income earners mainly spend their money on basic goods and services, thus leading to lower profits for buses.
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1
Q

What is inflation

A

-Refers to the general increase of prices. Increaes fall in the purchasing value of money
-Rising inflation causes consumers to spend less because they have less Disposable income

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1
Q

What is the impact of inflation

A

-Bus. sales will decrease because of reduced consumer spending on goods/services
-Bus. will have less money to spend on producing goods if the cost of raw materials increase
-Reduced sales figures could lead to bus. implementing cost-saving models
-Reduced Bus. profits because of declining sales figures may lead to bus. retrenching staff members

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2
Q

what is the social, cultural and demographic issues

A

-The way in which people live, work, produce, and consume products(social and cultural factors) can influence the market environment
-S.A diverse population characterized by different race group , religions, creeds

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3
Q

What is the impact of S.C.D issues

A

-Bus. need to try and accommodate the preferences of the diverse consumer body so that it could lead to increase in sales for the bus.
-Bus. are also encouraged to keep track of latest trends in the different industries so that they can grow their market share.

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4
Q

What is economic crime

A

-Refers to the money gained through unlawful business dealings covered up under a shell company(or a bus. with a ‘fake name’)

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5
Q

What is the impact of economic crime

A

-Theft of bus. profits through fraud and deception lead to a decrease in profits for the bus.
-Cyber security poses a huge challenge, especially for bus. who advertise their products on the internet
-Bus. need to spend money on installing additional security features in offices or on the premises. This may result in additional costs.

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6
Q

What is Population Growth

A

-Refers to the percentage change in the population as a result of births, deaths, relocation to other countries
-The word ‘population’ refers to the amount of people who live in a country

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7
Q

What is the impact of Population Growth

A

-Bus. are challenged to provide goods/services to meet consumer demands
-Bus. growth may lead to creation of jobs for some people.
-A high population growth may put strain on the natural resources of the country.
-The economy may also be put under strain because of increasing number of individuals who require support from the Gov.

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8
Q

What is Illiteracy

A

Refers to people who unable to read or write

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9
Q

What is the impact of Illiteracy

A

-Bus. may find it difficult to enter into written contracts with illiterate individuals
-Little to no literacy skills put people at a disadvantage when trying to find employment or when trying to learn a new skill
- High levels of illiteracy in communities may force bus. to contribute towards edu. programs to minimize its impact
-There is a strong link between unemployment and illiteracy as bus. can’t employ people who can’t read or write

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10
Q

What is the impact of Lack of skills

A

-This could lead to errors and having to repeat or correct a work task
-Businesses may be required to increase the budget for skills development programme
-Unskilled workers could spend considerable time seeking assistance to perform their work
-The time spent on assisting unskilled workers can reduce productivity levels in the workplace

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11
Q

What is Unavailability of natural resources

A

-Oil, water, coal are examples of natural resources. The resources are becomming more and more scarce.

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12
Q

What is the impact of unavailability of natural resources

A

-Oil and coal are examples of natural resources that are not renewable. Once depleted, they cant be recovered
-Bus. will not be able to produce goods due to shortages of natural resources that are used as raw material.

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13
Q

What is inefficiency in the sue of resources

A

Unnecessary wastage leads to further depletion of the natural environment and threatens the future supply of natural resources.

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14
Q

What id the impact of inefficiency in the use of resources

A

-Businesses cant produce at optimum levels if resources are not adequately used
-Reduced production levels may lead to a drop in sales and profitability
-Unused stock can become obsolete, increasing losses for businesses

15
Q

What is dumping

A

-Occurs when a country/company exports a product at a price that is lower in the international importing market than the price in the exporters local market

16
Q

What is the impact of dumping

A

-Local bus. lose profits as they cant compete with cheaper prices
-They may also lose income and forced to close their operations
-This may lead to a decease in local production and a loss of jobs
-Its not possible for local bus. to manufacture the same products at an equal price or lower

17
Q

What is exhaustion of natural resources

A

Refers to the over-usage of natural resources, which could lead to depletion of these resources

18
Q

What is the impact of exhaustion of natural resources

A

-Exhaustion of natural resources can be devastating for bus. whose operations solely depend on their existence
-Over time, the depletion of these resources will lead to an energy crisis, which gov. will then need to address.

19
Q

What are strikes

A

Strike is a result of unresolved disputes for examples, on salary increase between the employer and employees.

20
Q

What is the impact of strikes

A

-Strikes actions have a potential of jeopardising relations between the employer and employees
-It can also affect teamwork in the workplace in instances where not all workers are in support of such industrial action
-Bus. suffer financial losses due to low levels of productivity and consumer confidence is adversely affected

21
Q

Meaning of Piracy

A

-Is the illegal use or imitation of persons work

22
Q

What is the impact of Piracy

A

-Bus. suffer substantial losses in revenue because of the illegal reproduction of artists’, music, movies and branded clothing
-Unlawful copying and streaming of movies and TV series lead to a decline in the sales and profits for the business
-Artists may see no value in producing a new set of music or movies because of reduced sales
-This may affect the artists and producers productivity levels

23
Q

Copyright

A

-Refers to an exclusive legal right assigned to the author, artist, or producer of artistic work to print, perform, or record the work
-Laws relating to CR protect authors and allow them to sell their works to make a profit

24
Q

Patent

A

-Gives the creator of the product the right to prohibit other people from making or using their invention
-This right is granted by Gov. for a limited period of up to 20 years for the exclusive right to an invention

25
Q

Trademark

A

-Refers to a sign, character or word that is protected by law to represent a product or company.
-Damages may be claimed from individuals who make use of the trademark illegally.

26
Q

Meaning of industrial relations

A

-Refers to the relation between management and workers in the industry

27
Q

What are Go-slows

A

-Are a form of industrial action in which work or progress is deliberately delayed or slowed down as a from of protest
-The goal is to reduce bus. productivity or efficiency

28
Q

What are Lockouts

A

-Occurs when the employer prevents striking employees from entering the bus. premises
-When bus. comply with the Labor Relations Act, the lockout is regarded as legal.

29
Q

What is the purpose of the Labour Relations Act

A

-The act provides the structure for governing the relations between an employer and their employees.
-It encourages collective bargaining processes to take place in the workplace
-It encourages the establishment of workplace forums to support employees in decision-making
-The transfer of employment contracts between the existing and new employers are explained

30
Q

Meaning of Trade Unions

A

-Is an association formed by workers to represent and protect their rights in the workplace

31
Q

What is the role of Trade Unions

A

-The main role of trade unions is to represent staff members in the workplace
-They highlight the need for job creation in the country
-Trade unions advocate that the economy should support the working class and the poor
-Hold discussions on poverty reduction programs, reasonable income levels, and job creation strategies with employers

32
Q

What is the function of Trade Union ?

A

-Trade unions represent and protect their members against unfair labor practices in the workplace.
-Employees are protected from unfair dismissals and labor practices.
-They may take legal action on behalf of their members when necessary.
-They empower employees about their rights in the workplace and how to apply these rights.