BUSINESS STUDIES
GRADE 12
REVISED NOTES TERM 2
1
,TAKE NOTE:
• This document should serve as a resource to guide teaching and learning of Business Studies
in Grade12.
• It does not replace the CAPS policy document; it was developed to support Business Studies
Grade 12 teachers and learners.
• The content/notes are aligned to 2023/24 Annual Teaching Plan, 2021 Examination Guidelines
and recent addendums (2023)
• Previous NSC & SCE papers, textbooks, examination guidelines and other sources relevant to
the subject were used.
2
, TERM TWO
TABLE OF CONTENT
6 BUSINESS SECTORS (TERM 2)………………………………………………………. 5
EXAMINATION GUIDELINES FOR BUSINESS SECTORS………………………………….. 5
TERMS AND DEFINITIONS………………………………………………………………………. 5
6.1 Types of business sectors……………………………………………………………….. 6
6.2 Possible business challenges, their environments and extent of control…………… 7-8
6.3 The extent to which a business (operating in any of the three sectors) can control 9
the three business environments from given scenarios and case studies………….
CHAPTER 7: QUALITY OF PERFORMANCE (TERM2)……………………………………… 10
EXAMINATION GUIDELINES ON QUALITY OF PERFORMANCE…………………………. 10
. 11
TERMS AND DEFINITION………………………………………………………………………… 11-12
7.1 Definition of concepts………………………………………………………………………….. 12-13
7.2 Differences between quality control and quality assurance………………………….. 13
7.3 Differences between quality management and quality performance……………….. 13
7.4 Benefits of a good quality management system………………………………………. 13-16
7.5 How quality of performance can contribute to the success of a business /quality
indicators…………………………………………………………………………………… 16
7.6 The meaning of TQM……………………………………………………………………... 16
7.7 TQM elements…………………………………………………………………………….. 17-20
7.8 The impact of TQM elements on large businesses……………………………………. 18
7.9 Application of PDCA model/steps to improve the quality of products……………….. 21
7.10 The role/importance of quality circles as part of continuous improvement to 21
processes and systems…………………………………………………………………..
7.11 The impact of TQM if poorly implemented by businesses…………………………….
21
7.12 Ways in which TQM can reduce the cost of quality……………………………………
21-22
CHAPTER 8: MANAGEMENT AND LEADERSHIP (TERM 2) 23
EXAMINATION GUIDELINES……………………………………………………………………. 23
TERMS AND DEFINITIONS………………………………………………………………………. 23-24
3
, 8.1 Meaning of management and leadership……………………………………………….. 24
8.2 Differences between management and leadership……………….……………………. 25
8.3 Leadership styles………………………………………………………………………….. 25
8.3.1 Democratic……………………………………………………………….......................... 25
8.3.2 Autocratic…………………………………………………………………………………… 25
8.3.3 Liassez-faire/free-reign……………………………………………………………………. 25
8.3.4 Charismatic…………………………………………………………………………………. 25
8.3.5 Transactional……………………………………………………………………………….. 25
8.3 Impact of each leadership style………………………………………………………….. 25-28
8.4 Situations in which each leadership styles can be applied….…………………………. 25-28
8.5 Leadership theories……………..…………………………………………………………... 28
8.5.1 Situational leadership……………………………………………………………………….. 28-29
8.5.2 Leaders and followers………………………………………………………………………. 29
8.5.3 Transformational/transitional………………………………………………………………. 29
8.7 The role of personal attittude ………………………………………………………………. 30
CHAPTER 9: INVESTMENT – SECURITIES/OPPORTUNITIES (TERM 2)……………….. 31
EXAMINATION GUIDELINES………………………………..……………………………………. 31
TERMS AND DEFINITIONS……………………………………………………………………….. 32
9.1 Functions of the JSE…………………..…………………………………………………… 32-33
9.2 Factors to consider when making an investment………….......................................... 33-34
9.3 Various types of investment opportunities and their risks. 34-35
9.4 Impact of various forms of investments …………………………………………………. 36-38
9.5 Types of shares …………………………………………………………………………….. 39
9.6 Types of preference shares ……………………………………………………………….. 39
9.7 Rights of ordinary and preference shareholders ………………………………………... 40-41
9.8 Differences between ordinary and preference shares ……......................................... 41
9.9 Meaning of debentures, dividend, capital gain, simple and compound interest……… 41-42
9.10 Differences between simple and compound interests ………………………………….. 42
9.11 Calculation of simple and compound interests…………………………………………... 42-43
9.12 Recommendation of best investment option based on calculations …………………. 43
CHAPTER 10: INVESTMENT - INSURANCE (TERM 2)……………………………………….. 44
EXAMINATION GUIDELINES ……………………………………….…………………………….. 44
TERMS AND DEFINITIONS………………………………………………………………………… 45
10.1 Meaning of insurance……………………………………………………………................. 45
10.2 Non-compulsory insurance………………………………………………........................... 45
10.3 Meaning of concepts…………………………………………………………...................... 46-47
10.4 Differences between over and under insurance………………………………………….. 47
4
GRADE 12
REVISED NOTES TERM 2
1
,TAKE NOTE:
• This document should serve as a resource to guide teaching and learning of Business Studies
in Grade12.
• It does not replace the CAPS policy document; it was developed to support Business Studies
Grade 12 teachers and learners.
• The content/notes are aligned to 2023/24 Annual Teaching Plan, 2021 Examination Guidelines
and recent addendums (2023)
• Previous NSC & SCE papers, textbooks, examination guidelines and other sources relevant to
the subject were used.
2
, TERM TWO
TABLE OF CONTENT
6 BUSINESS SECTORS (TERM 2)………………………………………………………. 5
EXAMINATION GUIDELINES FOR BUSINESS SECTORS………………………………….. 5
TERMS AND DEFINITIONS………………………………………………………………………. 5
6.1 Types of business sectors……………………………………………………………….. 6
6.2 Possible business challenges, their environments and extent of control…………… 7-8
6.3 The extent to which a business (operating in any of the three sectors) can control 9
the three business environments from given scenarios and case studies………….
CHAPTER 7: QUALITY OF PERFORMANCE (TERM2)……………………………………… 10
EXAMINATION GUIDELINES ON QUALITY OF PERFORMANCE…………………………. 10
. 11
TERMS AND DEFINITION………………………………………………………………………… 11-12
7.1 Definition of concepts………………………………………………………………………….. 12-13
7.2 Differences between quality control and quality assurance………………………….. 13
7.3 Differences between quality management and quality performance……………….. 13
7.4 Benefits of a good quality management system………………………………………. 13-16
7.5 How quality of performance can contribute to the success of a business /quality
indicators…………………………………………………………………………………… 16
7.6 The meaning of TQM……………………………………………………………………... 16
7.7 TQM elements…………………………………………………………………………….. 17-20
7.8 The impact of TQM elements on large businesses……………………………………. 18
7.9 Application of PDCA model/steps to improve the quality of products……………….. 21
7.10 The role/importance of quality circles as part of continuous improvement to 21
processes and systems…………………………………………………………………..
7.11 The impact of TQM if poorly implemented by businesses…………………………….
21
7.12 Ways in which TQM can reduce the cost of quality……………………………………
21-22
CHAPTER 8: MANAGEMENT AND LEADERSHIP (TERM 2) 23
EXAMINATION GUIDELINES……………………………………………………………………. 23
TERMS AND DEFINITIONS………………………………………………………………………. 23-24
3
, 8.1 Meaning of management and leadership……………………………………………….. 24
8.2 Differences between management and leadership……………….……………………. 25
8.3 Leadership styles………………………………………………………………………….. 25
8.3.1 Democratic……………………………………………………………….......................... 25
8.3.2 Autocratic…………………………………………………………………………………… 25
8.3.3 Liassez-faire/free-reign……………………………………………………………………. 25
8.3.4 Charismatic…………………………………………………………………………………. 25
8.3.5 Transactional……………………………………………………………………………….. 25
8.3 Impact of each leadership style………………………………………………………….. 25-28
8.4 Situations in which each leadership styles can be applied….…………………………. 25-28
8.5 Leadership theories……………..…………………………………………………………... 28
8.5.1 Situational leadership……………………………………………………………………….. 28-29
8.5.2 Leaders and followers………………………………………………………………………. 29
8.5.3 Transformational/transitional………………………………………………………………. 29
8.7 The role of personal attittude ………………………………………………………………. 30
CHAPTER 9: INVESTMENT – SECURITIES/OPPORTUNITIES (TERM 2)……………….. 31
EXAMINATION GUIDELINES………………………………..……………………………………. 31
TERMS AND DEFINITIONS……………………………………………………………………….. 32
9.1 Functions of the JSE…………………..…………………………………………………… 32-33
9.2 Factors to consider when making an investment………….......................................... 33-34
9.3 Various types of investment opportunities and their risks. 34-35
9.4 Impact of various forms of investments …………………………………………………. 36-38
9.5 Types of shares …………………………………………………………………………….. 39
9.6 Types of preference shares ……………………………………………………………….. 39
9.7 Rights of ordinary and preference shareholders ………………………………………... 40-41
9.8 Differences between ordinary and preference shares ……......................................... 41
9.9 Meaning of debentures, dividend, capital gain, simple and compound interest……… 41-42
9.10 Differences between simple and compound interests ………………………………….. 42
9.11 Calculation of simple and compound interests…………………………………………... 42-43
9.12 Recommendation of best investment option based on calculations …………………. 43
CHAPTER 10: INVESTMENT - INSURANCE (TERM 2)……………………………………….. 44
EXAMINATION GUIDELINES ……………………………………….…………………………….. 44
TERMS AND DEFINITIONS………………………………………………………………………… 45
10.1 Meaning of insurance……………………………………………………………................. 45
10.2 Non-compulsory insurance………………………………………………........................... 45
10.3 Meaning of concepts…………………………………………………………...................... 46-47
10.4 Differences between over and under insurance………………………………………….. 47
4
