Business studies Grade 10

Term 2
Layout of slides
• First a summary of the content will be provided ( do not just focus on
the slides please look at your textbook as well.)
• Activities will be given on the topics from the textbook and extra
activities will be given from the slides.
• Ask questions regarding the content on the WhatsApp group.
Topics for term 2
• Socio-economic issues (Page46-53)
• Social Responsibility( Page 100-102)
• Entrepreneurial Qualities (Page 53-55)
• Forms of ownership ( Page 55-72)
 TOPIC 1
SOCIO- ECONOMIC ISSUES
PAGE 44-53
1. Socio- economic issues (Pg 46-53)
• Are issues that influence individuals, businesses as well as the economy of the country.
• All these issues have a negative influence.
• These issues bring challenges to businesses and people as some people classify under one or
more of these issues and still form part of the market environment meaning they will have less
spendable income (less income to spend on goods/services).
• Businesses lose a part of their market due to these issues.
• These issues are as follows:
 Inequality and poverty
 Inclusivity
 HIV/AIDS
 UNEMPLOYMENT AND A NON-PORDUCTIVE LABOUR FORCE
 GAMBLING, VIOLENCE AND CRIME
 PIRARCY, COUNTERFEINTING AND BOOTLEGGING
 INEQUALITY AND POVERTY
• Inequality – the extent where people did not have the same opportunities
in life, or they are handled differently. (The bigger the inequality , the
bigger the difference in income) (The rich people become richer and the
poor people become poorer.)

• Poverty - the condition where people did not have enough money to
satisfy their basic needs(food, clothes, housing and education)
- Poverty usually goes hand in hand with bad life circumstance, hunger and
diseases.
- Not only unemployed people live in poverty, but also people in the lower
income groups.
IMPACT OF INEQUALITY AND POVERTY ON
BUSINESSES
• The poor become poorer.
• People do not have enough to live on.
• Poor people do not contribute to economic growth of the country.
• Children of poor people are normally also poor as adults as they will not have the same opportunities and
education as a child from a rich family.(Leads to the problem that children of poor parents have less/weaker
job opportunities)
• To study at a tertiary institution or to start your own business is more difficult for children with poor parents
than a child with rich parents
• Income of businesses operating in poor communities will be lower than those located in wealthy
communities
• These factors contribute to different types of crimes.
• High crime levels created opportunities for entrepreneurs to create for example security firms.
• Crime as a result of poverty and inequality make it more expensive for businesses and the general public.
(People and businesses now have to spend money on security systems etc.)
How the government plans to reduce poverty
• Approximately 13million people receive social grants.
• Free education is provided for children aged 7 to 13.
• Free clinic-based health care is available nationwide.
• Subsided housing, water, electricity and basic services help those who have some form of income.
• The Broad-Based Black Economic Empowerment Act (BBBEE), Employment Equity Act and the Skills
Development Act have all contributed to creating employment.
• The Reconstruction and Development Program is providing housing and shelter.
• The National Growth and Development Strategy (NGDS), Growth, Employment and Redistribution(GEAR)
strategy and Expanded Public Works Program (EPWP) are some of the other government initiatives.
2. INCLUSIVITY
• Means that each person is valued
regardless of their status, position,
type of work or level of management.
• All people should have and equal
opportunity to employment.
• Employers cannot discriminate against
applicants because of their age,
gender, sexual orientation, religion,
culture, race, disabilities etc.
• Business should be inclusive meaning
that all applicant with the same skills,
qualifications and talents and
experience must be treated equally
during the employment process.
Purpose of inclusivity
• Optimal usage of all the human resources in the workplace.
• People of a different background get an opportunity to make a
contribution to the business.
• Opportunity for a variety of people to form part of the economy.
• To adhere to the stipulations in the Employment Equity Act.
- This act promotes inclusivity by protecting people against
discrimination in the workplace.
- This act also includes the gap between the salary of managers and the
wages paid to workers.
Attempt to create an inclusive workforce
• The target mark of the business consists of different populations
groups, therefor the business must employ people of different
cultures and languages so that all people can be understood.
• The transformation to an inclusive work environment does not just
happen overnight it is a long process.
• The government implemented the Employment Equity Act, Act 5 of
1998 to ensure that there is diversity according to the population of
the workforce.
3. HIV/AIDS
• Human Immuno-deficiency Virus (HIV) is a virus that
attacks the body’s immune system.
• Over time the infected immune system becomes weak
that it cannot protect the body against disease or
infections, at this stage it becomes AIDS (Acquired
Immune Deficiency Syndrome)
• HIV is the cause of the virus as AIDS is the end result.
• Antiretroviral drugs are used to treat the disease, as
there is no cure for the disease.
• The drugs prolong the process from it moving from HIV
to AIDS.
• It is transferred from an HIV-positive person to healthy
persons through the mixture of body fluids.
HIV/AIDS IN THE WORKPLACE
• People that are HIV-positive can do their jobs efficiently and
effectively. However when the person’s health deteriorates, they will
eventually be unable to continue working.
• The most productive and skilled workforce are between the ages of
20 and 40 years and these groups are more affected by the HIV/AIDS.
• This is destroying the economically active population (EAP).
EFFECT OF HIV/AIDS
• On the employees:
 They lose earnings
 They must deal with discrimination and stigma having HIV/AIDS.
 Meeting the increasing cost for sick family members and funeral costs.
 Trauma of leaving a family without financial support.
• On the employers
 The financial and social impact on business is high:
 The labour force is reduced as skilled staff members die and new employees must be trained. Businesses are not able to train
employees fast enough to make up for the years of experience and training that have been lost.
 Increase of absenteeism due to having to care for ill family members or attending of funerals.
 Other employees might have to take up more work to cope with high absenteeism. Effects staff moral and productivity.
 Profit will be lower as production decreases.
 Cost of medical insurance and pension premiums increase.
 Business are increasingly having to contribute to testing, treatment and support programs for HIV-positive workers and their
families.
 Wage demands increase as workers struggle to support the members of the extend family who are left without breadwinners.
HIV/AIDS policy documents
• This policy should address the following:
Encourage workers to be tested confidentially and providing testing
facilities.
Allow employees to disclose their status without fear of
discrimination.
Discuss the effect of HIV/AIDS and decide what treatment or support
programs should be available.
Increase the morale of the workers and promote a happy working
environment that will increase productivity.
Ensure that the laws regarding HIV/AIDS are obeyed. E.g. a person
with HIV/AIDS cannot be discriminated against in the workplace.
4. UNEMPLOYMENT AND A NON-PRODUCTIVE LABOUR FORCE.
• UNEMPLOYMENT
Unemployment is a situation where people want to work, but there are no
vacancies(jobs) available.
Reasons for unemployment:
- Skills do not match the jobs that are available.
- Poor standard of education and a general lack of skills.
- Advances in technology means that machines are being used to do work.
- Due to economic downturn, there is generally less money available to buy
goods and services. Lower production levels mean a decline in the number
of workers required.
- Unreasonably high wage and salary demands lead to increased production
costs and therefor higher prices. Customers than by cheaper products and
other manufactures cannot compete with cheaper products.
• Unproductive workforce
 Means some employees are not making sufficient physical or mental effort to produce enough
work to justify their wage or salary.
 This effects the profit of the business as less work is done.
 Workers with a poor work ethic and low performance should not be allowed to work, as they are
taking the places of unemployed workers that will value their job.
 A business cannot just dismiss workers who are unproductive, for example someone that has
been working for the company for year gained experience and training at the expense of the
business, so the business will lose that.
• Solutions to the unproductive workforce
 Clear communication and good management are important to improve productivity.
 Incentives also help to motivate employees to work more efficiently.
 The Skills Development Act provides money and opportunities for employers to obtain suitable
skills training for all their staff.
 Skills training increases worker morale and loyalty, and allows employees to pursue better career
paths.
 Employees become more productive as they are more confident and their ability to do the job
increases.
5. GAMBLING,
VIOLENCE AND CRIME
5.1 Gambling
• Gambling
• Is any game of chance where people hope to
win money, but they have the risk of losing all
their possessions because of too much
gambling.
• Types of gambling include lottery tickets,
scratch cards, slot machine, horse racing,
betting on sport teams, internet gambling etc.
• There are also illegal gambling which is not
allowed and is normally linked to organized
crime/fraud for example, pyramid schemes and
money laundering.
5.1.1Pyramid schemes
• Is a type of investment where investors are promised an
extra- ordinary high income in their investment.
• People see it as a easy way to make money in a very
short period of time.
• However only people at the top of this pyramid will
make money.(Those that invested early in the scheme)
• A person or a small group of persons invite other people
to invest and these people will then also invite people to
invest money.
• The high income that is promised is paid to the first
investors from the invested by the latest investors, which
means the latest investors will not receive money.
• As soon as no investors can be gathered anymore the
pyramid will collapse, meaning the scheme can no
longer make money for the people at the top.
5.1.1Money laundering
• Fraud syndicates took the profit from illegal transactions (dirty money) e.g.
from dealing drugs and making legal investments to “clean the money”.
• The income from these legal investments is used to finance further illegal
transactions.
• Through this procedure the illegal transaction is disguised.
• Money laundering promotes crime and corruption.

 The Prevention of Organized Crime Act, Act 21 of 1998, prohibits illegal

gambling.
 Gambling influences businesses because people game their money away and
then they do not have enough money to satisfy their needs.
5.2 Violence
• There is a lot of violence in South Africa.
• It has a devasting influence on individuals and their families as these
people become afraid.
• Some people leave the country due to the violence which means that
the country lost experienced and knowledgeable workers and the
consumers market gets smaller.
• All types of violence have an influence on individuals and business:
- Family/ Physical violence
- Emotional violence/ ill- treatment
- Violence in the workplace
5.2.1 Family/ Physical violence
• Violent actions by family members on each other
through assault.
• Employees who ae traumatized by violence are
normally absent from work or take sick leave.
• They are to injured or ashamed to come to work
with bruises or cuts.
• Employees with patterns of absence, normally
after weekends can be victims of violence.
• Sometimes employees stay away from work to
protect their family members.
5.2.2 Emotional violence/ ill- treatment
• Is a form of bullying.
• Not all violence is physical.
• Emotional violence may have the same affect as physical
violence.
• Includes treating people in a way that they feel
ashamed, afraid, traumatized or threatened. E.g.
continuous belittling of a person.
• The self- esteem of people who are treated in this
manner is low and this leads to the problem that they
cannot reach their full potential in the workplace.
5.2.3 Violence in the workplace
• Can originate from stress, the stress can
originate from the employee struggles to
complete tasks in a certain time frame.
• A group of workers that must complete a
task in a specific time frame to get a
performance bonus, can easily become
violent towards lazy and slow workers in
the group.
• Xenophobic assaults on immigrant
workers, as the local workers can feel
that the immigrant stole the work
opportunity for local workers.
• Violence in the workplace is a criminal
offence and workers found guilty of such
behavior can be discharges or criminal
charges can be laid against them.
5.4 Crime
• Has a negative influence on individuals and
businesses.
• Burglary. Robbery, shoplifting, hijacking,
corruption, misuse of business assets (using the
company's truck to move your house for
example), theft.
• Business’s expenses increase because they must
implement preventative systems such as alarm
systems and 24/7 security guards.
• It is also disruptive to the productivity and
activities of businesses.
• Corruption takes place when employees take
bribes to make unauthorized payments or
misuse of funds of the business.
6. Piracy, counterfeiting and bootlegging
6.1Piracy
• The illegal copying, reproduction and selling of
somebody else's intellectual property/product
without their consent.
• Refers to the theft of ideas/ intellectual property.
• The original creator lose money because the
product is sold illegally and way cheaper than the
original product.
• Includes violations of copyright, patent rights and
trademark rights.
• Selling of pirate products is usually through the
informal sector.
 6.2 Counterfeiting/Imitations/ Bootlegging
• Imitation of goods that looks the same as the original product.
• Selling of imitated cigarettes is a big problem for the business selling
the original product.
• Other examples; counterfeiting of passports, IDs, academic
certificates, banknotes, drivers' licenses, brand-name clothes/shoes.
 6.3 Smuggling
• Manufacturing and selling/ trading of good an illegal manner.
• Exploiting of natural resources such as abalone(part of a family that
includes clams, mussel), rhino horn etc. and the selling of these goods
are illegal. Government placed an embargo(an official ban on trade or
other commercial activity) on the trade of these goods.
• Preparators can be fined or jailed.
Solutions for piracy, counterfeiting and
smuggling.
• Recording by artist and singers and the publication of books by writers, is the intellectual
property of the creator. The intellectual property is protected by legislation and offenders will be
fined. E.g. five years jail or a fine of R5 000 if a CD is copied.
• New inventions are protected by the registration of patent rights in the name of the inventor and
by legislation. If patent rights are registered nobody else may manufacture/sell those products.
• Copyright is exclusive right given to the creator of the original work to change, copy and
distribute. If copyright are reserved no part of it may be reproduced without the permission of
the original creator. Perpetrators can be accused of plagiarism. For example, when you write an
essay and you use someone else’s research you must reference them or else it is seen as
plagiarism.
• Trademarks are registered by businesses to be paced on their product to be distinguish their
product from products of competitors. Their registered trademark cannot be used by another
business.
• Strict regulations are implemented by government to restrict the trading of smuggled goods. For
example customs at the airport must go through everybody's belongings that enter the country.
Influence on business activities and
consumers
• Influences on businesses:
- A negative influence on the income of the original intellectual owner.
- Businesses spend a lot of time and money to develop new products and it takes time to account for the investment
through the selling of the products.
- If competitors imitate the products, they can sell it for cheaper because they did not spend so much money on the
development of the product.
- Legislation protects the original owner against any behavior that stops them from getting the full income of their
product.
• Influence on consumers:
- Legislations protect consumers to enable consumers that if he/she buys a product with a specific trademark they
will receive quality goods.
- Consumers that buy pirated products have no guarantee that product will be repaired or replaced if it is faulty.
- Pirated medicine is dangerous to consumers to use as it may include harmful ingredients.
- Manufacturers of pirated goods mislead consumers
- Value of products decreases through the manufacturing and trading of the imitated product.
 7. Strikes and political unrest
• Strikes
- Industrial action taken by employees/ trade unions against the employer to force the
employer to give in to the claims of the employees regarding certain issues.
- Normally organized as a result of labour disputes spread from unfair remuneration, por
working conditions, wage increases.
- Strikes are legal if is executed according to te stipulations in the Labour Relations Act, Act 66
of 1995.
- Normally the last alternative taken by employees/ trade unions when a dead end is reach in
negotiations.
- During strikes employers lose production, but the employer does not have to pay the striking
workers because legislation stipulates: no work no pay.
- Has an emotional influence on the employer and the employee.
- Employees are worried about money they are losing during a strike.
- Employers are worried about the higher financing of wages.
- If the employer agrees to the claims all employees will benefit whether they participated in
the strike or not.
- Strikes can become violent as strikes can assault and intimidate those employees who do not
want to strike.
- During strikes employers can employ temporary workers to ensure the business activities
continues, at an extra expense of the business.
• Go- slows
- Is another form of industrial action when workers are working slower
than they usually do.
- Employees keep on working, but at a slower pace, it has a negative
influence in the productivity and output of the business.
- The employees force the employer to do something to their
grievances.
• Picketing
- Employees and sympathizers form groups and walk to the workplace or a
central venue where they deliver a memorandum with their grievances to a
representatives of the employer.
• Sympathy strikes
- Sometimes employees will strike in sympathy with workers in other
careers.
• Lock outs
- The constitutions of the country as well as the Labour Relations Act, make
provision that workers may strike.
- Also makes provision that employers have the right to prevent strikers to
enter the premises of the employer.
- Purpose of a lock-out is to prevent damage and vandalisme of the
workplace during a strike.
Political unrest
• Has a negative influence on the business.
• Takes place when the community is not satisfied regarding certain
aspects such as poor service delivery, racism, drug dealing,
gangsterism, rape etc. in the community.
• Those that are not satisfied with the current situation went to the
streets and intimidated the culprits, assault them and vandalize
businesses, put rubbish in the streets, put fire to tires etc.
• Businesses normally have to close their business during such action to
prevent damage and that mean there is a loss of income.
Activities
• Activity 14 Page 170 number 1- 2
• Activity 15 Page 170 number 3-5
• Activity 16 Page 171 number 6 and 7
• Activity 17 Page 171 number 8 and 9

• Essay questions
• Activity 18 Page 173 Question 1
• Activity 19 Page 173 Question 2