EMS Exam 22 November Flashcards

Question

What does CCMA stand for

Answer 1

Commission for Conciliation, Mediation and Arbitration

Answer 2

Its role is to resolve (mediate) labour disputes referred to it in terms of the Labour Relations Act. Employers generally treat their employees fairly in order to keep good, reliable workers.

Answer 3

Natural resources (most often referred to as land by economists) are the naturally occurring materials of the planet that are used for the production Natural resources of goods and services, including: the minerals and nutrients in the ground the water the land itself vegetation on the surface wildlife air.

Answer 4

Production is, in fact, the basic process of transforming naturally occurring materials that provide little satisfaction to people in their natural state, to goods and services that provide more satisfaction to people.

Answer 5

Everything physical (other than people) which is not the result of human effort falls within the economic definition of land. This concept therefore includes all natural materials, forces and opportunities. The trees in a naturally occurring forest are land; in a cultivated forest they are wealth. To understand the meaning of land as a factor of production, we must think of land in this sense, as the entire set of natural opportunities.

Answer 6

Entrepreneurship is the special sort of human effort that takes on the risk of bringing labour, capital and natural resources together to produce goods. Entrepreneurship is the factor that organises the other three. Without someone to organise production, the other three factors do not produce. This resource takes the risk of organising production before anything is produced and with no guarantee that production will be successful.

Answer 7

A key component of entrepreneurship is risk.

Answer 8

An entrepreneur is a person who starts a business, taking a financial risk in the hope of making a profit. A successful entrepreneur makes sure that the product or service meets the needs or wants of the people he or she will sell to.

Answer 9

hard working prepared to take risks prepared to persevere good with people motivated able to work on their own. innovative

Answer 10

Entrepreneurs stimulate the economy by creating jobs and further opportunities for other entrepreneurs. They also generate profit that can be taxed by the government.

Answer 11

The payment of labour is wages and salaries. The economic term is 'wages'.

Answer 12

The more competition there is for available job openings, the less money people are offered to do the work. However, highly skilled and specialised workers tend to be scarce and are therefore paid more as a reward for their efforts in improving their own knowledge and skills, and also to entice them to accept a particular job offer.

Answer 13

Profit is the payment for entrepreneurship.

Answer 14

Borrowed capital is paid for in interest charged on a loan from a bank or investor in the business. Own capital is also paid for by interest lost as the capital is not invested in a financial institution and therefore does not earn interest for the owner.

Answer 15

business expenses, such as rent, that are not directly attributable to any department or product

Answer 16

Rent is paid for the use of land and business premises. If the property is owned by the business, the rental that could be charged for the use of the property by other parties is taken as the rental cost to calculate overhead costs.

Answer 17

``` Wholesale Retail Farmers Craft Flea Service Factor Labour Financial Capital ```

Answer 18

A market can be a physical place, like a shop or it can be a virtual place, such a website on the Internet. As technology has improved, markets have changed and some have become more specialised.

Answer 19

Wholesalers purchase large quantities of goods from different manufacturers and suppliers. Customers visit the wholesaler and select the goods they want to purchase. The wholesaler re-packs the goods in smaller quantities for their customers. The wholesaler's customers are usually small businesses called retailers.

Answer 20

Retailers can purchase goods directly from manufacturers or from wholesalers. They also buy goods in big quantities and re-sell them in much smaller quantities to their consumers. Retail stores include supermarkets, department stores, specialist stores such as boutiques and stores that sell sports clothing or equipment, as well as furniture and equipment shops.

Answer 21

Farmer's markets sell fruit, vegetables, meat and dairy products directly from the farmer to the local community.

Answer 22

Craft markets offer various types of products that have been handmade, such as cakes, biscuits, clothing, shoes, bags and wooden toys.

Answer 23

Flea markets offer a range of different products that people have obtained for re-sale, such as secondhand books; used goods such as crockery, kitchenware and furniture; secondhand clothes or factory rejects.

Answer 24

A service market is where a service, expertise, skill or experience is sold. For example, a lawyer sells his or her knowledge, skills and experience of the law to a client who needs this type of service. (office or shop)

Answer 25

A factor market is the place where the factors of production are bought and sold.

Answer 26

Capital: money invested in business, manufacturing, buying and selling this factor market is called a 'financial market Labour: • skilled, semi-skilled and unskilled workers • people are paid to do a specific job • people's time, expertise and skills are paid for • this factor market is called a 'labour market' Resources: all raw materials and other resources a business needs in order to operate Entrepeneurship: entrepreneurs are needed to start businesses using capital, purchase resources and pay for labour in order to produce goods or services to meet the needs and wants of their consumers

Answer 27

The labour market is the place where the employer and employee come into contact. This is not a specific place. Employers advertise job vacancies in newspapers, magazines or on the Internet, or they pay an employment agency to find people to fill vacancies. People then apply for positions.

Answer 28

A financial market is any type of financial transaction that helps a business grow or helps an investor to make money. There are two types of financial markets, namely capital and money markets.

Answer 29

A capital market is where money, in the form of shares, is obtained to start large businesses. Members of the public share in a public company. The company uses the money to purchase assets and pay for labour and operating costs. The holders of these shares are called shareholders. The company only has contact with the shareholders at annual general meetings and when a dividend is distributed. . When the company starts to do well, other members of the public will want to purchase shares and so the price or value of these shares increases until a shareholder is prepared to sell all or some of their shares.

Answer 30

A money market is a place where a business can obtain cash or credit. This can take the form of a loan from a bank, credit from a supplier or a bank overdraft.

Answer 31

Salaries are paid to semi-skilled and skilled workers such as secretaries, accountants, managers and supervisors. A wage is an hourly rate that is paid to workers at the end of the week according to the number of hours they have worked. Wages are usually paid to unskilled and semi-skilled workers, such as factory and mine workers.

Answer 32

A dividend is the portion of profit that the shareholder receives according to the number of shares they own.

Answer 33

A bank loan is money the bank loans the business. The business repays a specific amount over a specified number of months until the debt plus interest is repaid.

Answer 34

Credit is when a supplier allows the business to take the goods and only pay for them at the end of the month or after 60 days.

Answer 35

A bank overdraft is a facility where the bank will allow a business to withdraw more money than they have in their cheque account. A maximum amount is stipulated. The business will pay interest on the amount overdrawn for the number of days it was overdrawn.

Answer 36

Government is a group of people who govern the citizens of a country. This means that the government exercises control over the people who live in the country.

Answer 37

South Africa is a democracy. This means that the citizens of the country decide who governs them.

Answer 38

The three main role players in the economy are government, business and households.

Answer 39

It is a person or group of peoples' belief on how the affairs of the state or country should be managed. In South Africa there are 13 political parties represented in government.

Answer 40

Politics is the knowledge of government affairs

Answer 41

Government receives money from income tax, levies and duties, such as customs duties and VAT (value-added tax). This money is used to run the country, and provide infrastructure and services, such as transport, electricity, national roads, health and education.

Answer 42

The national government The provincial government' The local government

Answer 43

Cabinet: the president is the head of cabinet. He is assisted by the deputy president and ministers who deal with the day-to-day running

Answer 44

The national government is split into three tiers, namely: cabinet, parliament and judiciary. Very simply put, Parliament makes the laws, The cabinet ensures that they are carried out and The judiciary decides whether the law has been broken.

Answer 45

South Africa has three levels of government (national, provincial and local) as well as a separate judicial system. All people, groups and organisations - including the government - are subject to the Constitution which is the supreme law of the country.

Answer 46

Judicial: to do the law Supreme: the highest authority in the country

Answer 47

As well as page 15 for the cabinet president | And paid 16 for the provincial government premier

Answer 48

Parliament is situated in Cape Town and consists of two 'houses', the National Assembly and the National Council of Provinces (see page 14).

Answer 49

The National Assembly has 400 members who represent the different political parties and are elected every five years in a national election. They are responsible for drawing up laws.

Answer 50

The National Council of Provinces is a body that was created to make sure that all the provinces are involved in or co-operate in the legislative process.

Answer 51

development: a higher standard of living due to an increase in the number of goods and services produced

Answer 52

Judiciary is made up of the various courts in the country, such as the Supreme Court and Magistrates Courts.

Answer 53

There are nine provinces in South Africa and each one has its own provincial government. Members of the provincial government are also elected every five years. The executive council of a province consists of a premier and a number of members (MECS). Premiers are appointed by the President of the country. Decisions are taken by consensus. Each member has a department to manage.

Answer 54

Local government consists of municipalities. Large areas, such as Johannesburg are governed by metropolitan municipalities. The smaller Services pro areas are governed by local municipalities who are grouped into districts. Local government is responsible for local roads, traffic, clinics, libraries, sewage, water and transport.

Answer 55

Each level of government receives funds and must use this to benefit the consumers and producers in the areas

Answer 56

The ministers in the national and provincial cabinet all have specific areas of responsibility which cover the services that they must provide the consumer and producer.

Answer 57

Education: schools and teachers Provides hospitals and pays salaies for the staff and doctors Ensures labour laws are fair and unbiased for workers and employers Provide sports and Recreation facilities Promote arts and Culture Ensures women, youth, children and people with disabilities are able to function to the full capacity in Society Ensures safety of Citizens and businesses through police and correctional services and military.

Answer 58

The provincial government is responsible for providing the following services Water sanitation and electricity on a provincial scale As well as Health Care and education services eg. provincial , hospitals ,clinics,education and housing

Answer 59

The provincial government ensures to use the provincial budget capital resources in the most efficient manner They sure land and natural resources are managed efficiently and in a sustainable manner

Answer 60

The government is both a consumer and a producer and the household is also a consumer and producer. Both government and households interact to provide for each other's needs and wants. Government is a consumer as it purchases labour, and goods and pays for services provided by members of households. It also produces electricity and builds hospitals, police stations and courts for households. Households provide the labour and capital for the government and consume electricity and water, and use the infrastructure, such as roads.

Answer 61

All levels of government are consumers in that they purchase goods and services from businesses to build infrastructure, hospitals and other government buildings, and repair and maintain government assets. Government is also a producer in that it provides infrastructure, such as transport systems (roads, harbours and airports) so that businesses can operate more efficiently. Businesses are consumers because they pay for certain government services such as electricity and water. They also sell their goods and services to the government or government organisations. Business profits are taxed by the government and the money is paid to the government, who produces the relevant services.

Answer 62

Provide electricity water and refuse removal Promote tourism and encourages businesses to be involved in tourism activities Encourages business expansion and development in the province by offering incentives and assistance to the business Provides training and information on health and safety for employers and employees through the provincial health departments Uses correct tender procedures for local businesses and producers to provide goods and services to Provincial government Promotes international trade through trade agreements with other countries

Answer 63

The insured provincial roads Promotes tourism in the province and encourages businesses in promoting tourism Encourages business involved in farming ,forestry and fisheries in the area Develops legislation to protect Labour and the environment Provide fresh produce markets and businesses expos to encourage the production of goods and services

Answer 64

Every year in February, the Minister of Finance presents the National Budget to Parliament. The Finance Minister explains how the government will collect money in the next financial year and announces how this money will be spent. Total spending Education The budget continues to support job creation, with a particular focus on unemployed youth. The budget provides for personal income tax relief. Measures are proposed to increase household savings. Strengthening financial management in the public sector, pursue value for money with the greatest possible vigour and ensure that taxpayers' money is well used. Fraud and corruption will be combatted through changes to procurement policies and practices and tough enforcement of the law.

Answer 65

The term 'government revenue' refers to the income that government receives from various sources. This is the money available to supply services to the country and to pay government workers.

Answer 66

Direct taxes are drawn from personal income tax payments from individuals and from taxes paid by businesses on their profits. A taxpayer pays a direct tax to a government for different purposes, including real property tax, personal property tax, income tax or taxes on assets. Direct tax is based on the ability to pay, i.e. those who earn more or who have more wealth pay more taxes.

Answer 67

A tax that may be charged on land or buildings

Answer 68

A tax that may be charged on personal property such as money shares or goods As an example inheritance tax charged on property when the owner dies

Answer 69

Tax charged on the profit of a company

Answer 70

Indirect taxes are levied (imposed or charged) by the government on our consumption and expenditure. Other indirect taxes are VAT on goods and products bought by consumers and excise duty (a tax that is paid by manufacturers of certain goods, e.g. car manufacturers). And fuel levies

Answer 71

Excise duties are taxes that government charges on certain goods, and are applicable to the following products consumed in the whole of the Southern African Customs Union (SACU), BEER Fuel/Petroleum products Tobacco products Malt Beer Traditional African Beer PUFF Spirits/Liquor products Wine Other fermented beverage

Answer 72

Government spending focuses on providing citizens with education, health care, safety and security, and the necessary infrastructure (roads, harbours, airports, railways, hospitals and schools) to support these services.

Answer 73

Government is responsible for providing school buildings, furniture and equipment, and qualified teachers, to ensure that all young South Africans have access to an education that will prepare them for a productive working life.

Answer 74

Primary health care, in the form of local clinics, is provided by government's Department of Health. The Department gets its funds from the National Budget and patient fee contributions. The Department has the following commitments: increasing life expectancy lowering levels of mother and child deaths combatting HIV and AIDS and decreasing the burden of disease from tuberculosis (TB) strengthening the effectiveness of the health system.

Answer 75

This government department continues to focus on providing more homes and eliminating informal housing areas in the shortest possible Time. the process also includes providing support infrastructure for the homes in terms of sanitation water and electricity

Answer 76

The Department for Social Development is responsible for providing the following social grants to qualifying citizens: ``` old age (pensions) disability war veterans child support foster care care dependency grants in aid. ``` The Department for Social Development also looks after a range of social issues with the support of government funding, such as: National Food Relief Programme funding for Early Childhood Development Centres home- and community-based care (for people living with HIV and AIDS) child protection services services to the youth registration of shelters and drop-in centres.

Answer 77

The following are some of the public entities that fall under the Department of Transport: The Road Accident Fund Transport Cross-Border Road Transport Agency The South African Civil Aviation Authority Ports Regulator of South Africa Passenger Rail Agency of South Africa The names of each of these agencies indicate the specific areas for which they are responsible.

Answer 78

The budget provides for: social grants to almost a third of South Africa's population largely free services at public health facilities no-fee schools for 60 per cent of learners housing, water and electricity in poor communities. In addition, provision of health care, education and basic living standards should translate into educated, healthy citizens who are able to make a contribution to the growth of the economy by working in productive jobs.

Answer 79

Lifestyle is the way individuals, families (households) and societies live. It includes a person's sense of style, his or her attitudes and possessions and the things that he or she does. Lifestyle is a behaviour and is shown in a person's attitude, values, the way he or she allocates resources and what the person does for fun. Lifestyle also reflects a person's culture, family and friends.

Answer 80

A self-sufficient society can survive and provide for its needs without any outside help. People in self-sufficient societies learn vital skills from past generations on how to grow and preserve food, make and repair tools, and make and mend clothing. Eg. The Khoikhoi and San are of early self-sufficient societies in South Africa. A self-sufficient society can also be seen as independent of the state or government.The Amish people in America are an example of modern self-sufficient society.

Answer 81

In modern society, people are less dependent on each other for survival. They are dependent on their employer for income and shops and supermarkets for food, clothing and other manufactured products. People are dependent on their income to survive.

Answer 82

Workers become specialised in a specific field, skill or task. Tasks are divided among workers. This division of labour increases productivity as each person becomes an expert doing their part of the job and can do it quicker than if they had to make the entire product themselves.

Answer 83

People form social groups within their social circle. Their social circle will depend on their lifestyle and standard of living. Eventually, the people in their social group will become their main support. Their choice of social group reflects their individual interests, goals and ambitions.

Answer 84

As the world becomes a global village through improved communication and transport, all the factors of production also become more mobile. Labour, money and raw materials can be moved to any place in the world to increase productivity and profit.

Answer 85

Rural societies form in the countryside, away from the towns and cities. Fewer people live in rural areas than in towns or cities. There are fewer employment opportunities in rural areas and members of rural societies spend much of their time producing food for their families. Family, culture and customs are a very important part of rural society. Extended family is considered as important as immediate family. They support each other both emotionally and financially. Ubuntu

Answer 86

However, Study the table on page 31

Answer 87

Unemployment is when a person is actively looking for a job but is unable to find work or when a person does not have a job with a regular income.

Answer 88

A country measures its unemployment rate by dividing the number of unemployed people by the number of people in the labour force.

Answer 89

Unemployment is a serious problem and is often seen as an indicator of the health of an economy. A large volume of unemployed people in a country could indicate a struggling economy.

Answer 90

Poor education and an uneven balance of skilled, semi-skilled and unskilled workers is a major cause of unemployment.

Answer 91

Unemployment has many serious consequences: loss of income and a decline in the standard of living drop in demand for local products and services which leads to reduced sales and less profit for business owners government loses income from reduced income tax people could resort to begging and crime divorce, poor health and alcoholism.

Answer 92

Sustainability is the key to using resources in a manner that promotes a healthy environment. Efficiency is about making the best possible use of resources. Increase productivity Improve health and safety Promote the protection of the environment Promote development that will avoid destroying and using up natural resources. RRR

Answer 93

The study of the way in which one acquires and uses limited resources to produce goods and services that satisfy a community's wants and needs

Answer 94

The state of a country or region in terms of the production and consumption of goods and services and the supply of money

Answer 95

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Answer 96

Using recycled paper for packaging Using energy-efficient appliances and lights Ensuring proper solid waste management at the municipal level encouraging recycling by industry, business and households using natural fertilisers and pest control methods.

Answer 97

Sustainability is a business approach to creating long-term value by taking into consideration how a given organization operates in the ecological, social, and economic environments

Answer 98

House holds and firms

Answer 99

Loan: money the bank loans Credit: When abuisness allows someone to buy goods and pay for it at the end of 60 days Overdraft: the bank allows the business to take more money than it has

Answer 100

The main activities that are required in a business that allow the business to operate efficently

Answer 101

Admin Filing Marketing Canteen HR General Management Purchasing Finances Public Relations Production Risk management Email Services

Answer 102

Closed corporation Public and private companies Sole traders Partnership

Answer 103

The legal position of the business and the way it is owned.

Answer 104

Top management is usually represented by the owner/s of the business or the chairman and board of directors. Top management is responsible for clarifying the business's vision, identifying its goals and employing specialised staff to handle the overall running of the business. Middle management breaks down the overall Vision and goals of top management in to work units. Lower management levels are supervisory and are directly involved in the day-to-day operations of the business they are closely involved with problem-solving and decision-making related to the daily activities of the teams

Answer 105

Organising Planning Leading Controling

Answer 106

Keeping track of how happy employees are in their work environment How well each employee is doing their job What areas needed training Whether or not the business is making good progress towards its goals

Answer 107

Autocratic Directive autocratic Permissive autocratic

Answer 108

Being completely in charge and making decisions by yourself (without taking feedback)

Answer 109

a permissive manager allows employees to take part in decision-making and also gives a large degree of Independence in completing written work activities. this style is only really successful with inspirational management that understands the different areas of the initiative being taken by the employees and strong and creative employees who share the same vision throughout the organisation

Answer 110

a directive democratic manager makes decisions participatively which means their employees have a say in this decision however he or she still closely supervisors the employee.This style of management can be particularly useful when complex decisions need to be made that require a range of skill sets.

Answer 111

Closed corporation Public and private companies Sole traders Partnership