Business Studies Grade 12 KZN Prelim 2016 Question Paper

Basic Education KwaZulu-Natal Department of Basic Education REPUBLIC OF SOUTH AFRICA : BUSINESS STUDIES ‘: " PREPARATORY EXAMINATION " ol SEPTEMBER 2016 : NATIONAL SENIOR CERTIFICATE GRADE 12 MARKS: 300 ; » TIME: 3 hours N.B. This question paper consists of 18 pages including this page. Please turn over Copyright reserved IR BTR UT REE TR

Downloaded from hlayiso.com Business Studies nec Preparatory Examination September 2016 INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections and covers all broad topics. SECTION A: COMPULSORY SECTION B: Consists of FOUR questions. Answer any THREE of the FOUR questions in this section. SECTION C: Consists of FOUR questions. Answer any TWO of the four questions in this section. 2. Read the instructions for each question carefully and take particular note of what is required. 3. Number the answers correctly according to the numbering system used in this question paper. | 4, Except where other instructions are given, answers must be written in full : sentences. 5. Use the mark allocation and the nature of each question to determine the length of an answer. ; 6. Use the table below as a guide for marks and time allocation when answering each question. | SECTION QUESTION | MARKS TIME A: Objective type questions . COMPULSORY 1 40 30 minutes B: FOUR direct/indirect type ; 35 3 minutes questions (CHOICE: Answer ri 60 30 minutes any THREE) 5 60 30 minutes : 6 40 30 minutes C: FOUR essay type questions 7 40 30 minutes (CHOICE: Answer any TWO) 8 40 30 minutes 9 40 30 minutes TOTAL: 300 180 minutes 7. Begin the answer to EACH question on a NEW page, for example QUESTION 1 —new page, QUESTION 2 — new page, et cetera. 8. Non-programmable calculator may be used. 9. Write neatly and legibly. | Copyright reserved Please turn over i

Downloaded from hlayiso.com Business Studies 3 Preparatory Examination September 2016 NSC SECTION A: (COMPULSORY) QUESTION 1: MULTIPLE CHOICE 1.1. Each of the following statements / questions is followed by four options, only ONE of which is correct. Choose the correct option and indicate this by placing the letter of the alphabet that corresponds to it next to the number. For example: 1.11 E. 1.1.1 Legit provides fashionable clothing to fashion-conscious women between the ages of 16 and 24 years, who live on a shoestring budget. These young, fashionable women belong to Legit’s environment. A micro B market Cc mega D macro 1.1.2 The legislation with regards to employing a domestic worker had convinced many people to rather not employ full-time domestic workers. This could be regarded as --------------for Cinderella Home Cleaning services. A a weakness B a strength Cc a threat D an opportunity 1.1.3. ... oversees compliance with the National Credit Act, 2005 (Act 34 of 2005). A A debt counsellor B The National Credit Regulator Cc A credit enforcement agency D A credit counsellor 1.1.4 Hi Glow quality Paints sells indoor and exterior paints. Hi Glow wants to change its business structure and introduce new product lines that may attract more customers. This problem solving technique used by Hi Glow to change its structure is.... A Chair technique. B Delphi technique. Cc Force-field analysis. D Brainstorming. Copyright reserved Please turn over A ST

Downloaded from hlayiso.com 1 ' | Business Studies 4 Preparatory Examination September 2016 : NSC 1.1.5 Which ONE of the following is an advantage of corporate social responsibility for a business? A CSR costs money that could have been invested more profitably. B Good publicity to improve reputation i Cc Businesses are required to prepare detailed CSR reports —this is time consuming D Projects must be constantly monitored 1.1.6 African Bank applies corporate governance in order to ensure sustainability of the organisation and its business. These principles and practices are applied in line with the ... A Kyoto Protocol. | B King 3 report. : Cc Global Reporting Initiative (GRI). D JSE SRI index. 1.1.7 Small groups of employees who voluntarily meet on a regular basis | to discuss problems relating to an improvement in production is ' known as ... A Quality circles. B MBO strategies. Cc Entrepreneurship. D Empowerment. 1.1.8 Grouping and combining tasks according to job title, duties and responsibilities is known as. A job analysis. B job description. Cc job specification. D induction. 1.1.9 This leadership style assumes a facilitators’ role, if employees/followers are skilled and motivated. A __ transactional B laissez-fair C transformational D © situational 41.10 The source of funding represents a long term loan to an enterprise: A Government (RSA) retail savings bonds B Unit trust Cc Fixed deposit D Debentures (10 x 2) (20) __ Copyright reserved Please turn over

Business Studies Downloaded from. blayisa AON, Examination NSC 1.2 Choose a description from COLUMN B that matches a term/Act in COLUMN A. Write only the letter (A-E) next to the question number (1.3.1-1.3.5) in the ANSWER BOOK. For Example: 1.2.6 F. COLUMN A COLUMN B 1.2.1 | Management A selects the most suitable candidate for the job 1.2.2 | Screening B provides financial security for the investor upon reaching pensionable age 1.2.3 | Retirement annuity Cc a chicken farmer entering into a fixed supply agreement with a buyer such as KFC (a buyer): 1.2.4 | Forward vertical integration D Set of standards of expected behaviour 1.2.5 | Professionalism E use charm to inspire people F eliminates unsuitable candidates for the position G Payment when an employer resigns H Conforms to a set of values that are morally acceptable l directing people and resources according to preset policies J Clover Diary enters into fixed agreements with the jersey cow farmers for the daily provision of milk. (5 x 2) (10) Copyright Reserved Please Turn Over

| Business Studies Downloaded dro molayi PrGOM), Examination NSC 1.3. Choose the correct word(s) from those given in brackets. Write only the words(s) next to the question number (1.3.1- 1.3.5) in the answer book. 1.3.1 A(SWOT/PESTLE model) analysis is a tool for assessing the internal and external environment. 1.3.2 (Quality assurance / quality control) is the process carried out during and after the production process to ensure required standards have been met at every stage of the process. 1.3.3 (Insurance/Assurance) covers the loss from an event that will definitely occur. 1.3.4 When a business enterprise support (the triple bottom line / human right) they will consider the social, environmental and economic impact in its business. 1.3.5 (Time-related/Piecemeal) pay is received on an agreed hourly rate. 5 x 2 (10) TOTAL SECTION A: 40 Copyright Reserved Please Turn Over

Business Studies SECTION B: (COMPULSORY) Answer ANY THREE questions from this section. Clearly indicate the QUESTION NUMBER of each chosen question. The answer to EACH question must start on a NEW page, for example QUESTION 2 ona NEW page, QUESTION 3 on a NEW page, et cetera. QUESTION 2: BUSINESS ENVIRONMENT 2.1 2.2 Copyright Reserved Identify the legislation relevant to each of the following statements. 2.1.1 The management of Cupid Manufacturing Enterprise has to send their employees for training. 2.1.2 The Act that makes provision for working hours, leave conditions and remuneration. 2.1.3 This Act makes provision for the establishment of trade unions and chamber of commerce. 2.1.4. The main aim of this Act is to protect consumers against unfair credit terms. 2.1.5 The Act ensures that workers who are disabled or become ill as a result of performing their duties are paid. Read the scenario below and answer the following questions. Downloaded fromblanlseRMn, Examination (10) PHOTO DEVELOPMENT STORES With digital smart phones, cameras, high — quality home printing, and digital photos sharing becoming a cultural norm, taking that roll of film to the neighbourhood photo store just isn’t a part of life any more .Companies such as Perfect Pictures and Candid Pictures are developing new ways to keep the customers with online services and touch screen stations in stores where customers can download and create their own CD albums. 2.2.1 Identify the challenge that is affecting the Photo Development Stores. 2.2.2 Discuss the impact of the challenge identified in 2.2.1 on Photo Development Stores. 2.2.3 Recommend TWO ways in which businesses can overcome the challenges of this environment. (2) (4) (4) Please Turn Over

Business Studies Down oa de d.fro mblayise..Gom, Examination NSC 2.3. Read the scenario below and answer the questions that follow FRUITY TREATS to diversify their business operations in order to continue making a profit. Dakyla is the manageress of Fruity Treats, who supplies their stock to various large supermarkets. The business repacks different types of dried fruits e.g. apple, rings, apricot and fruit munch. Packaging varies in sizes ready for consumption or reselling. With the economic decline, Dakyla feels that they need 2.3.1. Explain how Dakyla can apply concentric, horizontal and conglomerate diversification. Give examples to support your answer. 2.3.2 Discuss TWO defensive strategies that Dakyla can use to alleviate pressure on the profitability of her business. 2.4 The Skills Development Act,1998 (Act 97 of 1998). makes provision for employees skills to be improved. Mention challenges / negative impact the businesses may experience when implementing this Act. 2.5 Describe the strategic management process . 2.6 — Justify the introduction of Broad-Based Black Economic Empowerment Act/(BBBEE). Copyright Reserved Please Turn Over (9) (6) (8) (10) (7) [60]

Business Studies Downloaded from DAVISA-GOM, Examination NSC QUESTION 3 BUSINESS VENTURES Read the article below and answer the questions that follow SHORT TERM INSURANCE Short term insurance is useful in case of incidents such as a car accident or a burglary at your house. Few people have the cash to repair a car or buy new things that have been stolen in a burglary. Choose a broker who represents as many companies as possible or ask more than one broker for quotes. When you have all the quotes, you have to look at: The excess you are responsible for when you claim. Make sure you insure property with short term insurance for the correct replacement value if you are under-insured only a pro rata portion of your claim will be paid. It is important and your responsibility to ensure that the sum insured is in line with inflation index and premium adjusted accordingly. e Itis important not to over insure as this will result in over payment of premium. * Insurance companies also offer lower premiums to those who take special steps to ensure the safety of their possessions. These include security precaution, smoke detectors, water sprinklers, fire drill. safety inspections etc 3.1.1 Name the term used to describe “the portion of the claim the insured has to bear’. (1) 3.1.2 Quote two steps from the scenario above the insured may take to reduce the premium on household and motor car policies. (2) 3.1.3 Explain the necessity to revise or adjust the sum insured regularly. (2) 3.2. Read the scenario below and answer the questions that follow Property valued R1000 000 was insured against fire for R800 000. Fire causes damages worth R30 000, 3.2.1 Calculate the amount that the insurance company will pay as compensation. (4) 3.22 Name the clause that applies to this claim. (2) 3.3. Explain uninsurable and insurable risks and give two examples of each. (8) 3.4 Safia invested R5 000 for three years, at 10% interest per year, compounded annually, with Capital Bank. 3.4.1 Calculate the amount Safia will receive after three years. (Show all calculations) (6) 3.4.2 Calculate the amount of interest that Safia will earn. (Show all calculations. (4) Copyright Reserved Please Turn Over

Business Studies Down | oa de dfro mblayi AR ROM, Examination NSC 3.5 Read the scenario below and answer the questions that follow. FAST AND FURIOUS SPORTS CARS LTD (FFSC) equal share in the business. to incorporate and sell shares. The business is now called Fast and Furious Sports Cars LTD A Ally and B.Baba recently opened Fast and Furious Sports cars. They had an Soon they realised that they could not manage the business by themselves, as they did not have enough funds to meet the growing consumer demand. They decided 3.5.1 Name the type of ownership Fast and Furious was before they decided to sell shares. (1) 3.5.2 Explain how taxation and legislation can contribute to the success or failure of Fast and Furious Sports Cars LTD. (12) 3.6 Describe the factors you would consider when preparing for a presentation. (12) 3.7. Evaluate the impact of the bureaucratic leadership style on a business. 160] Copyright Reserved Please Turn Over

Business Studies Down | oa de d fro m HDlavise,.gom,, Examination NSC QUESTION 4: BUSINESS ROLES 4.1 Identify the unethical business practice illustrated in each scenario below and recommend one strategy to address each scenario in order to promote ethical conduct: 4.1.1 Fast Motors is paid cash for its services in order to avoid paying VAT on the transaction. This transaction is not recorded. (3) 4.1.2 John a manager at Friskys Resturant requests sexual favours from a waitress in return for a promotion. (3) 4.1.3 Employees of Fast and Furious are often on face book on the internet during work time. (3) 4.2 The King Code contains principles for ethical corporate governance. Independence and responsibility are two of these principles. Advise businesses on how they should apply these principles. (4) , } 4.3 Discuss the correct procedure to deal with grievance in a workplace. (8) 4.4 Read the following scenario and answer the questions that follow. ROCKET BROKERS Rocket Brokers is committed to growing and investing in socially responsible activities such as Build schools in communities, offer bursaries to needy students, donates old computers to less privileged schools and provide adult education and training in the local community. 4.4.1 Define Corporate Social Investments and Corporate Social Responsibility. (4) 4.4.2 Quote FOUR ways in which Rocket Brokers contributes to the community. (4) 44.3 Name TWO other CSI projects Rocket Brokers can contributes to the community. (4) 4.5 Explain how businesses should address environmental issues to maintain sustainability. (10) 4.6 Suggest ways in which businesses may promote social rights in the workplace. (6) Copyright Reserved Please Turn Over

Business Studies NSC 4.7 Discuss ways in which businesses can create an environment that promotes creative thinking. 4.8 Describe the importance of team dynamic theories to understand team performance. Copyright Reserved Downloaded from HlavisacEQMoy Examination (8) (3) [60] Please Turn Over

Business Studies Down | oa de d fro m Havise.Gam,, Examination NSC QUESTION 5: BUSINESS OPERATIONS 5.1 Read the scenario below and answer the questions that follow. SPORTSCENE SPORTS SHOES Sportscene sports shoes is a South African company based in Pietermaritzburg that produces sport shoes, such as running shoes, cross trainers and soccer boots, for the domestic market .It competes for market share with international brands such as Nike, Adidas and Asics, However, over the past six months sales declined because the number of pairs of shoes returned by customers every month has increased. They have identified that the machinery and equipment in the factory have not been properly maintained or replaced for many years. The finishing on shoes is inferior and the stitching frequently comes apart if the shoes are heavily used. 5.1.1. Name the business function that is responsible for addressing Sportscsene sports shoe. (1) 5.1.2. Quote FOUR factors that contributed to the poor performance of the business function identified in QUESTION 5.1.1. (4 x 1) (4) 5.2 Read the employment contract below and answer the questions that follow. EMPLOYMENT CONTRACT Name of Employee: N. GOVENDER Gender: Female Age: 46 years TERMS AND CONDITIONS OF THE CONTRACT . Annual leave is based on employee sales. . Working hours: As per operational hours of the business. . Resignation when she falls pregnant 5.2.1 Outline any FIVE aspects that should be included in an employment contract. (10) 5.2.2 Critically evaluate the terms and conditions of the contract in the scenario above. Make recommendations that are in line with the Basic Conditions of Employment Act, 1997 (Act 75 of 1997). (10) Copyright Reserved Please Turn Over

Business Studies Downloaded from blayviso Goma, Examination Nsc 5.3. Read the scenario below and answer the questions that follow. Matata Motors required the services of an experienced marketing manager to take over the management of the marketing department. They contacted, Quest Personnel, a recruitment agency, to find a suitable candidate for the vacancy. 5.3.1 Identify the type of recruitment used by Matata Motors in the scenario above. Motivate your answer. 5.3.2 Discuss the impact of this type of recruitment referred to in Question 5.3.1. 5.3.3 Mention reasons for the termination of employment contracts of employees at Matata Motors. 5.4 Explain how quality of performance of the following business functions’ influence the success of a business. 5.41 Public relations function. 5.4.2 Financial Function. Copyright Reserved Please Turn (3) (8) (8) (8) (8) [60] Over

Business Studies NSC QUESTION 6: MISCELLANEOUS BUSINESS ENVIRONMENTS 363 Down | oa de d fro m Alayvisa,.cam,, Examination 6.1 Identify the business sector represented by the statements below and support your answer. 6.1.1 Liberty Life offering tax free investment opportunities for 2016. (3) 6.1.2 Sappie forestry planting trees. (3) 6.2. Discuss the impact of the Compensation for Occupational Injuries and Diseases Act (COIDA), 1997 (Act 61 of 1997), as amended, on employers/ businesses. (10) BUSINESS VENTURE List the criteria for a logical and effective presentation. (8) 6.4 Read the scenario below and answer the questions that follow: Jack Daniels is the manager of Tipsy Stores. He explains work procedures, rewards employees for excellence and punishes them if targets are not met. 6.4.1 Identify the leadership style described above. (1) 6.4.2 Discuss the impact of this leadership style on businesses. (4) 6.5 Discuss the role of a positive attitude in successful leadership. (4) BUSINESS ROLES 6.6 Recommend FOUR ways in which professional, responsible, ethical and effective business practice should be conducted. (8) 6.7. Evaluate the effectiveness of the Delphi technique in solving business problems. (5) Copyright Reserved Please Turn Over

Business Studies Downloaded from HLAVISO6E.ONory Examination NSC BUSINESS OPERATIONS 6.8 Identify the business function that is responsible for improving the quality of performance in each of the scenarios below: 6.8.1 A decrease in the number of customers. at Take and Pay supermarket. (2) 6.8.2 High staff turnover (employees resigning after being with the business for a short while) at grab and go take-away. (2) 6.8.3 Ensuring the correct quantities of inputs are available at the right time and place. : : (2) 6.9 Describe the positive impact of an induction programme in businesses. (8) [60] Copyright Reserved TOTAL SECTION B: 180 Please Turn Over

Business Studies Down | oa de d ifro m.blayi SQ RAM, Examination NSC Answer ANY TWO questions. NOTE: Clearly indicate the QUESTION NUMBER of the chosen question. The answer to EACH question must start on a NEW page, for example QUESTION 7 on a NEW page, QUESTION 8 on a NEW page, et cetera. QUESTION 7 BUSINESS ENVIRONMENT Take and Pay’s COMPLIANCE WITH THE CONSUMER PROTECTION ACT Take and Pay has always and will always put the consumer first, and strive to uphold the principles of the Consumer Protection Act in all their dealings with their customers. As a consumer you should know and understand what the Consumer Protection Act aims to achieve, what your rights are as a consumer, and how and where to address your concerns. With reference to the above statement: ° Discuss the purpose of the Consumer Protection Act, 2008 (Act 68 of 2008). Explain any FOUR rights of consumers outlined in the act. Evaluate the impact of the Consumer Protection Act, 2008 (Act 68 of 2008) on Pick and Pay. . Discuss the penalties/consequences for Take and Pay if they do not comply with the act. [40] QUESTION 8 BUSINESS VENTURES Great leaders don’t set out to be a leaders. They set out to make a difference. Taking a team from ordinary to extraordinary means understanding and embracing the difference between management and leadership. Refer to the statement above and elaborate on the on the following: Distinguish between leadership and management. Evaluate the consensus/democratic, autocratic and laissez-faire leadership styles. Recommend when each of the above mentioned style can be applied by management. [40] Copyright Reserved Please Turn Over 4.

Business Studies Down | oa de d fiso m RhayisecGOmMory Examination QUESTION 9: BUSINESS ROLES TEAMWORK ON THE SHOP FLOOR AT GENERAL MOTORS SOUTH AFRICA (GMSA) GMSA employs more than 3.500 employees at its vehicle assembly in Port Elizabeth. The workforce is divided into teams from diverse cultural backgrounds and beliefs which may lead to conflict in the workplace. The team concept is a management system, which is driven by key empowerment principles and supported by clearly defined roles and responsibilities (www.gmsa.co.za) Write a detailed report to the Directors of GMSA in which you include the following aspects: Discuss any FOUR possible causes of conflict within the teams at GMSA. Explain the procedure that GMSA should apply to overcome conflict that teams usually experience. ° Outline the characteristics that team members may apply to assess their team's SUCCESS. . Suggest ways in which GMSA can deal with difficult people or different personalities within the different teams. QUESTION 10 BUSINESS OPERATIONS Total Quality Management (TQM) implies that every employee in the organisation accepts the responsibility. for ensuring that, whatever they do in the job, adds value to the benefit of all stakeholders in order to ensure that the consumers are ‘satisfied. ; With reference to the above statement: . Outline the benefits that a business may enjoy when implementing a good quality management system. . Discuss how the quality of performance within the general management function will ensure success in the business. ° Analyse the impact of the following elements of Total Quality management on large businesses: - Continuous skills development Total client satisfaction - Continuous improvement to processes and systems [40] [40] TOTAL MARKS: [300] Copyright Reserved

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