Business Studies Gr 10 Term 2 #1 Flashcards
Contemporary socio-economic issues
What is the meaning of socio-economic issues?
o Socio-economic issues are social and economic factors in the macro environment that can cause problems in the business.
o Socio-economic issues include discrimination and poverty, inclusivity, unemployment and an unproductive workforce, HIV and AIDS, gambling, piracy, forgery, strikes, violence and crime.
Reasons why socio-economic issues can be a challenge for the business
o If employees are affected by poverty, HIV and AIDS, violence and crime, it affects their ability to work and leads to unproductivity in the business.
o If robbery, forgery and strikes continue, businesses will incur losses
Meaning of inequality
o Inequality means that everyone is not equal. Some people have a lot of money and can afford education while others are very poor.
o In equality in south Africa has become a problem because the gap between rich and poor is very large
Meaning of poverty
o Poverty is when a person is unable to satisfy their most basic survival needs.
o A person is considered very poor if he or she does not have food/water and shelter
o Poverty also includes those people who are unable to meet their daily food needs as well as proper housing/clean running tap water, flushing toilet, electricity, transport, education and basic health services.
Impact of inequality and poverty on the business
o Poverty affects consumer spending because poor people do not have the ability to buy goods
o If people cannot spend money, businesses cannot grow
o Current way of thinking and media attention on poverty gives rise to the expectation that businesses should invest in poor communities but that puts extra pressure on businesses
inclusivity term
o Inclusivity entails giving everyone equal opportunities
purpose of inclusivity in the business
o The purpose of inclusivity is to ensure that the business is fair labour practices
o It seeks to create workplaces where people of different races, cultures, genders, faiths, abilities, languages and beliefs can work together effectively to benefit the business.
o Try to ensure that businesses are not allowed to exclude anyone
Unemployment
o The state of job-seeking people in the economically active population who are unable to find work despite being willing and able to work.
Unproductive labour forces
o Labour force – the workers
o Unproductive labour – workers who do not work at required level of productivity for a business to be sustainable
Negative impact of HIV/AIDS on the business
o This disease leads to a decrease in the productivity of affected employees
o Trained and experienced workers die of this disease before they grow old and increase staff turnover in the business
o There is a decrease in demand because customers are getting less
Different types of legal gambiling
o Legal Gambling
- Licenced casino’s
- Betting on horse-racing and other sporting events through a licensed bookmaker
- National lottery: Lotto
Impact of gambling on the business
o Gambling can be addictive, especially for lower income groups struggling to support families and steal money. This disrupts the work environment.
o The low morale of people losing money puts pressure on relationships and responsibilities at the workplace
o People who lose money in gambling also no longer have money to buy from businesses
o Gambling such as money laundering promotes corruption in businesses
Meaning of Counterfeit
is an imitation of the real product with the aim of selling it as the original
Meaning of bootlegging
is illegal manufacturing fake goods for sale
meaning of strikes and political disturbance
a strike and a political disturbance (riot) is a collective action taken by a group of unhappy employees to force employers to accept their demands
a trade union must be notified that a strike/riot is taking place
