chapter 2
what is a national Budget
A national budget is a government’s plan that shows how it expects to earn money (revenue) and spend money (expenditure) over a specific period, usually one year.
what is standard of living
Standard of living is the level of wealth, comfort, goods, and services available to people in a country.
what is a market
A market is a place or system where buyers and sellers meet to exchange goods and services.
Define what is meant by the term sole trader
A sole trader is a business owned and run by one person, who is responsible for all profits and debts.
Four basic tasks of a manager
POLC
What does MTEF Stand for
Medium term expenditure frame work
define the term unemployment
Someome who is willing ad able to work but is unable to find a job
What is an oligopoly market
An oligopoly market is a market dominated by a few large firms that have significant control over prices and competition.
What does JSE stand for
what does CEO stand for
Chief executive Officer
Name all four indirect taxes
Fuel levy
VAT
custom duties
excise duties
How can a business improve productivity
Training employees
Using better technology
Streamlining processes
Motivating staff
Reducing waste and downtime
Give me three examples of a perfect market
Agricultural markets (e.g., wheat, corn)
Foreign exchange market
foreign market for widely traded shares
Explain the term unlimited Liability
Unlimited liability means the owner of a business is personally responsible for all the business’s debts, even if it means using their own personal assets.
Explain the different levels of managers with giving examples for each
Top Ceo board of director
middle- branch manager
lower- supervisor
What does RAF stand for
ROAD ACCIDENT FUND
Name four stakeholder within a business
Owners/shareholders
Employees
Customers
Suppliers
What is a cartel
A cartel is a group of businesses in an imperfect market that collaborate to fix prices, limit production, or divide markets to reduce competition.
What does CIPC stand for and give one responsibility for the CIPC
IPC stands for Companies and Intellectual Property Commission.
Responsibility: Registers companies and maintains company records.
Four characteristics of a good manager
PERSONAL
relationship qualities
business characteristics
communication qualities
Name and explain the fiscal and monetary policies
1. Fiscal Policy
Fiscal policy refers to how the government uses its spending and taxation to influence the economy.
2. Monetary Policy
Monetary policy is how the South African Reserve Bank (SARB) controls the money supply and interest rates to maintain price stability and support economic growth.
name the three pillars of sustainable development
Economic development
Social development
Environmental protection
Four circimstances that create a monopoly
Government grants exclusive rights
Control of key resources
High startup costs preventing competition
Mergers or acquisitions reducing competitors
What is meant by the term shares in a public company are transfered freely
It means that shares can be bought and sold by anyone on the stock exchange without needing approval from other shareholders.
Name and explain each management style and give one disadvantage and one advantage of them
1. Autocratic
Explanation: Manager makes decisions alone.
Advantage: Quick decision-making.
Disadvantage: Low employee morale.
2. Democratic
Explanation: Employees are involved in decision-making.
Advantage: Higher employee motivation.
Disadvantage: Decisions take longer.
3. Laissez-faire
Explanation: Employees make most decisions with little manager involvement.
Advantage: Encourages creativity.
Disadvantage: Can lead to lack of direction.
Situational
Explanation: Manager adapts style based on the situation and employees.
Advantage: Flexible and effective in different contexts.
Disadvantage: Can confuse employees if styles change too often.