BS GRADE 12 LB.indb 1 2022/03/14 10:47:46
, Foreword from Absa
Absa is playing a shaping role in Africa’s growth and sustainability through a focused set of actions that bring commercial and
societal outcomes together, creating shared value. Absa implemented a range of programmes aimed at enabling access to
quality education to contribute towards an inclusive society. Absa in partnership with the Department of Education is a proud
funder and supporter of the Digital Learner Books and Teacher Guides for Business Studies Grades 10 to 12
Dr Reaan Immelman
Head: Education Delivery
Quality Assurance team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Annacletta Fisane Ngubane, Busisiwe Zwane, Cherylleen Gordon, Enoch Rasmeni, Florence Baloyi-Jele, Fouzia Peters, Frank
Ofori, Habiel Adams, Handri van Rooi, Hester Steenkamp, Joyce Strydom, Leicester Momberg, Madeline Trollope, Maselo
Ditshego, Medupe Shadrack Mmui, Melanie Momberg, Mzikaise Masango, Nonhlanhla Gumbi, Petra Burger, Sybil Mdunge.
Project Management team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Henry Kavuma – DBE Digitisation, Mimi Mini – DBE LTSM, Ntebo Mkhondo – DBE Administration
Jeanine Briggs – Absa Management, Julia Lhuillery-Moulder Project Coordination – Absa, Zainab Karriem Publishing – Absa
Grade 12 Learner Book
Book ISBN: 978-1-77633-225-0
First published in 2022
Published by: The Training Room Online and Imprint Publishing
Copyright in the text remains with the contributors.
Restrictions
You may not make copies of this book in part or in full – in printed or electronic or audio or video form – for a profit
seeking purpose.
Rights of other copyright holders
All reasonable efforts have been made to ensure that materials included are not already copyrighted to other entities, or in a
small number of cases, to seek permission from and acknowledge copyright holders. In some cases, this may not have been
possible. The publishers welcome the opportunity to redress this with any unacknowledged copyright holders.
BS GRADE 12 LB.indb 2 2022/03/14 10:47:46
, Contents
TERM 1
Topic 1 The impact of recent legislation on businesses 1
Unit 1.1 The Skills Development Act (SDA) (No. 97 of 1998) 4
Unit 1.2 The Labour Relations Act (LRA) (No. 66 of 1995) 10
Unit 1.3 The Employment Equity Act (EEA) (No. 55 of 1998) 13
Unit 1.4 The Basic Conditions of Employment Act (BCEA) (No. 75 of 1997) 17
Unit 1.5 The Compensation for Occupational Injuries and Diseases Amendment Act
(COIDA) (No. 61 of 1997) 22
Unit 1.6 The Broad-Based Black Economic Empowerment Act (BBBEE)
(No. 53 of 2003, as amended in 2013) 25
Unit 1.7 The National Credit Act (NCA) (No. 34 of 2005) 29
Unit 1.8 The Consumer Protection Act (CPA) (No. 68 of 2008) 32
Consolidation 36
Topic 2 The human resources function 45
Unit 2.1 Recruitment 48
Unit 2.2 Selection 52
Unit 2.3 Induction 59
Unit 2.4 Placement 61
Unit 2.5 Salary determination 63
Unit 2.6 Fringe benefits 64
Unit 2.7 The implications of the legislation on the human resources function 67
Consolidation 70
Topic 3 Ethics and professionalism 82
Unit 3.1 Understanding ethical and professional behaviour 84
Unit 3.2 Application of the King Code principles 87
Unit 3.3 Challenges posed by unethical and unprofessional business practices 89
Consolidation 96
Topic 4 Creative thinking and problem-solving 98
Unit 4.1 Problem-solving 99
Unit 4.2 Creative thinking 108
Consolidation 112
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, Topic 5 Macro environment: Business strategies 114
Unit 5.1 The strategic management process and business strategies 117
Unit 5.2 Industrial analysis tools 129
Consolidation 140
Formal Assessment Tasks: Term 1 149
TERM 2
Topic 6 Business sectors and their environments 155
Unit 6.1 Business sectors 156
Unit 6.2 Business environments 159
Consolidation 165
Topic 7 Quality of performance 168
Unit 7.1 Quality and quality concepts 170
Unit 7.2 Total Quality Management (TQM) 178
Consolidation 190
Topic 8 Management and leadership 198
Unit 8.1 Distinguishing between management and leadership 199
Unit 8.2 Applications and impact of the five leadership styles in the workplace 203
Unit 8.3 Understanding the three leadership theories 208
Consolidation 214
Topic 9 Investment: Securities 216
Unit 9.1 Functions of the Johannesburg Securities Exchange (JSE) 217
Unit 9.2 Factors that should be considered when making an investment decision 218
Unit 9.3 Types of investment opportunities and risk factors 221
Unit 9.4 Forms of investments 224
Unit 9.5 Understanding simple and compound interest 232
Consolidation 236
Topic 10 Investment: Insurance 238
Unit 10.1 Insurance concepts 240
Unit 10.2 The principles of insurance 244
Unit 10.3 Advantages/Importance of insurance for businesses and insurable risks 246
Consolidation 256
BS GRADE 12 LB.indb 4 2022/03/14 10:47:46
, Foreword from Absa
Absa is playing a shaping role in Africa’s growth and sustainability through a focused set of actions that bring commercial and
societal outcomes together, creating shared value. Absa implemented a range of programmes aimed at enabling access to
quality education to contribute towards an inclusive society. Absa in partnership with the Department of Education is a proud
funder and supporter of the Digital Learner Books and Teacher Guides for Business Studies Grades 10 to 12
Dr Reaan Immelman
Head: Education Delivery
Quality Assurance team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Annacletta Fisane Ngubane, Busisiwe Zwane, Cherylleen Gordon, Enoch Rasmeni, Florence Baloyi-Jele, Fouzia Peters, Frank
Ofori, Habiel Adams, Handri van Rooi, Hester Steenkamp, Joyce Strydom, Leicester Momberg, Madeline Trollope, Maselo
Ditshego, Medupe Shadrack Mmui, Melanie Momberg, Mzikaise Masango, Nonhlanhla Gumbi, Petra Burger, Sybil Mdunge.
Project Management team for the Digital Business Studies Grades 10 to 12 Learner Books and Teacher Guides
Henry Kavuma – DBE Digitisation, Mimi Mini – DBE LTSM, Ntebo Mkhondo – DBE Administration
Jeanine Briggs – Absa Management, Julia Lhuillery-Moulder Project Coordination – Absa, Zainab Karriem Publishing – Absa
Grade 12 Learner Book
Book ISBN: 978-1-77633-225-0
First published in 2022
Published by: The Training Room Online and Imprint Publishing
Copyright in the text remains with the contributors.
Restrictions
You may not make copies of this book in part or in full – in printed or electronic or audio or video form – for a profit
seeking purpose.
Rights of other copyright holders
All reasonable efforts have been made to ensure that materials included are not already copyrighted to other entities, or in a
small number of cases, to seek permission from and acknowledge copyright holders. In some cases, this may not have been
possible. The publishers welcome the opportunity to redress this with any unacknowledged copyright holders.
BS GRADE 12 LB.indb 2 2022/03/14 10:47:46
, Contents
TERM 1
Topic 1 The impact of recent legislation on businesses 1
Unit 1.1 The Skills Development Act (SDA) (No. 97 of 1998) 4
Unit 1.2 The Labour Relations Act (LRA) (No. 66 of 1995) 10
Unit 1.3 The Employment Equity Act (EEA) (No. 55 of 1998) 13
Unit 1.4 The Basic Conditions of Employment Act (BCEA) (No. 75 of 1997) 17
Unit 1.5 The Compensation for Occupational Injuries and Diseases Amendment Act
(COIDA) (No. 61 of 1997) 22
Unit 1.6 The Broad-Based Black Economic Empowerment Act (BBBEE)
(No. 53 of 2003, as amended in 2013) 25
Unit 1.7 The National Credit Act (NCA) (No. 34 of 2005) 29
Unit 1.8 The Consumer Protection Act (CPA) (No. 68 of 2008) 32
Consolidation 36
Topic 2 The human resources function 45
Unit 2.1 Recruitment 48
Unit 2.2 Selection 52
Unit 2.3 Induction 59
Unit 2.4 Placement 61
Unit 2.5 Salary determination 63
Unit 2.6 Fringe benefits 64
Unit 2.7 The implications of the legislation on the human resources function 67
Consolidation 70
Topic 3 Ethics and professionalism 82
Unit 3.1 Understanding ethical and professional behaviour 84
Unit 3.2 Application of the King Code principles 87
Unit 3.3 Challenges posed by unethical and unprofessional business practices 89
Consolidation 96
Topic 4 Creative thinking and problem-solving 98
Unit 4.1 Problem-solving 99
Unit 4.2 Creative thinking 108
Consolidation 112
BS GRADE 12 LB.indb 3 2022/03/14 10:47:46
, Topic 5 Macro environment: Business strategies 114
Unit 5.1 The strategic management process and business strategies 117
Unit 5.2 Industrial analysis tools 129
Consolidation 140
Formal Assessment Tasks: Term 1 149
TERM 2
Topic 6 Business sectors and their environments 155
Unit 6.1 Business sectors 156
Unit 6.2 Business environments 159
Consolidation 165
Topic 7 Quality of performance 168
Unit 7.1 Quality and quality concepts 170
Unit 7.2 Total Quality Management (TQM) 178
Consolidation 190
Topic 8 Management and leadership 198
Unit 8.1 Distinguishing between management and leadership 199
Unit 8.2 Applications and impact of the five leadership styles in the workplace 203
Unit 8.3 Understanding the three leadership theories 208
Consolidation 214
Topic 9 Investment: Securities 216
Unit 9.1 Functions of the Johannesburg Securities Exchange (JSE) 217
Unit 9.2 Factors that should be considered when making an investment decision 218
Unit 9.3 Types of investment opportunities and risk factors 221
Unit 9.4 Forms of investments 224
Unit 9.5 Understanding simple and compound interest 232
Consolidation 236
Topic 10 Investment: Insurance 238
Unit 10.1 Insurance concepts 240
Unit 10.2 The principles of insurance 244
Unit 10.3 Advantages/Importance of insurance for businesses and insurable risks 246
Consolidation 256
BS GRADE 12 LB.indb 4 2022/03/14 10:47:46
