# Business Studies Grade 12 KZN Prelim 2017 Memo > Grade 12 Business Studies memorandum from the KZN Prelim 2017, 22 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2017-kzn-prelim-memo/f95681ff-b57c-4515-a31b-6803dd244908 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2017 - Exam period: KZN Prelim - Curriculum: CAPS - Pages: 22 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 KZN Prelim 2017 Memo](https://www.hlayiso.com/library/2017-kzn-prelim-memo/f95681ff-b57c-4515-a31b-6803dd244908) ## About this document Business Studies · Grade 12 · KZN Prelim · 2017. Memorandum, 22 pages. Read online or download the PDF. 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Please tum over Copyright Reserved PREAMBLE ‘The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (o) Facilitate the moderation of candidates’ scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across the country (3) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 41. For marking and moderation purposes, the following colours are recommended: Marker Red Senior Marker Green Deputy Chief Marker Brown Chief Marker Pink Internal Moderator Orange DBE Moderator Turquoise 2: Candidates’ responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 3. A comprehensive memorandum has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but: * Uses a different expression from that which appears in the memorandum * Comes from another source © Original * Adifferent approach is used. NOTE: There is only one correct answer in SECTION A. 4. Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding. part-marks should be awarded, for example, one mark instead of the maximum of two marks.) 5. The word 'Sub max' is used to facilitate the allocation of marks within a question or sub question 6. The purpose of circling marks (guided by ‘max’ in the breakdown of marks) on the right- hand _ side is to ensure consistency and accuracy in the marking of scripts as well as for calculation purposes. Please tum over Copyright Reserved ### Page 2 Business Studies Downloaded from hlayiso.com 3 September 2017 Preparatory Examination NSC Subtotals to questions must be written in the right-hand margin. Circle the subtotals as indicated by the allocation of marks. This must be guided by 'max' in memo. Only the total for each answer should appear in the left-hand margin next to the appropriate question number. In an indirect question, the theory as well as the response must be relevant and related to the question. Incorrect numbering of answers to questions or sub questions in Sections A and B will be severely penalised. Therefore, correct numbering is strongly recommended in all sections. No additional credit must be given for repetition of facts. Indicate with an ‘R’ Note that no marks will be awarded for indicating Yes/No in evaluation type questions requiring substantiation or motivation. (Applicable to SECTIONS B and C.) The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as follows: 12.1 When 'evaluate' is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: 'COIDA eliminates time and costs spent” on lengthy civil court proceedings.’ 412.2 When critically evaluate’ is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance. In this instance candidates are also expected to support their responses with more depth, e.g. ‘COIDA eliminates time and costs spent ¥ on lengthy civil court proceedings, ~ because the employer will not be liable for compensation to the employee for injuries sustained during working hours as ong as it can be proved that the business was not negligent.’ NOTE: The above could apply to ‘analyse’ as well. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the memorandum and the context of each question. Cognitive verbs, such as: 13.1 Advise, devise, name, state, mention, recommend, suggest, (list not exhaustive) do not usually require much depth in candidates’ responses. Therefore, the mark allocation for each statement/answer appears at the end. 13.2 Describe, explain, discuss, elaborate, justify, analyse, evaluate, critically evaluate (list not exhaustive) require a greater depth of understanding, application and reasoning. Therefore, the marks must be allocated more objectively to ensure that assessing is conducted according to established norms so that uniformity, consistency and fairness are achieved. Please tum over Copyright Reserved Business Studies 4 14. 14.5 September 2017 Preparatory Examination Nsc SECTION B 14.1 If, for example, FIVE facts are required, mark the candidate's FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word MAX’. NOTE: This applies only to questions where the number of facts is specified. 14.2 If two facts are written in one sentence, award the candidate FULL credit. Point 14.1 above still applies. 14.3 If candidates are required to provide their own examples/views, brainstorm this at the marking centre to finalise alternative answers. 14.4 Use of cognitive verbs and allocation of marks: 14.4.1 If the number of facts is specified, questions that require candidates to ‘describe/discuss/explain' may be marked as follows: « Fact 2 marks (or as indicated in the memorandum) « Explanation 1 mark The ‘fact’ and ‘explanation’ are given separately to facilitate mark allocation. 14.4.2 If the number of facts required is not specified, the allocation of marks must be informed by the nature of the question and the maximum mark allocated in the memorandum ONE mark may be awarded for answers that are easy to recall, requires one-word answers or is quoted directly from a scenario/case study. This applies to SECTION B and C in particular (where applicable). SECTION C 15.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: Conclusion | Insight 8 TOTAL 40 Please tum over Copyright Reserved ### Page 3 Business Studies 15.2 Downloaded from hlayiso.com 5 September 2017 Preparatory Examination NSC Insight consists of the following components: | Layout/Structure Is there an introduction, body, proper paragraphs and zg a conclusion? | Analysis and interpretation Learners' ability to break down the question/interpret 2 it correctly to show understanding of what is being asked. Synthesis Are there relevant decisions/facts/responses made 2 based on the questions? Marks to be allocated using this guide: No relevant facts: 0 (Two '-S') | Some relevant facts: 1 (One -S') Only relevant facts: 2 (Zero '-S’) NB: If there are no -S' award the maximum of TWO (2) marks. | Originality Examples, recency of information, current trends 2 and developments. TOTAL FOR INSIGHT: TOTAL| 8 MARKS FOR FACTS: TOTAL| 32 MARKS FOR ESSAY (8 + 32)|_ 40 NOTE: 15.3 15.4 Please tum over No marks will be awarded for contents repeated from the introduction and conclusion. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated No marks will be allocated for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. Indicate insight in the left-hand margin with a symbol, e g. (L, A, S and/or 0’) The breakdown of marks is indicated at the end of the suggested answer! marking guidelines to each question. Mark all relevant facts until the SUB MAX/MAX mark in a subsection has been attained. Write ‘SUB MAX'/'MAX' after maximum marks have been obtained. Copyright Reserved Business Studies 15.6 15.7 15.8 15.10 Please turn over 6 September 2017 Preparatory Examination NSC At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: L —Layout, A — Analysis, S — Synthesis, O — Originality as in the table below. CONTENT MARKS Facts 32 (max.) L 2 L A 2 s - 2 fe} 2 TOTAL 40 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not use the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the memorandum. 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.10.2 With effect from November 2015, the TWO marks will not necessarily appear at the end of each completed sentence. The ticks (v) will be separated and indicated next to each fact, e g. ‘Product development is a growth strategy, ¥ where businesses aim to introduce new products into existing markets.'V This will be informed by the nature and context of the question, as well as the cognitive verb used. Copyright Reserved ### Page 4 Businoss Studies SECTION A (COMPULSORY) QUESTION 1 14 144 CvY 142 Dvv 113 BYY 144 AVY 115 BYY 14.6 CvY 147 BYY 118 BYY 149 AYY 11.40 AvY 1.2 1.2.4 strategy vv 4.2.2 control “vw 1.2.3. partners ¥v 1.2.4 professionalism vv 1.2.5 tertiary vv 1.3 1.3.1 Cv 1.3.2 AVY 1.3.3 D¥vv 13.4 EvY 13.5 Ivy Please turn over Downloaded from hlayiso.com T September 2017 Preparatory Examination NSC (10 x 2) (20) ( x 2) (40) (6 x 2) (10) BREAKDOWN OF MARKS QUESTION 1 | MARKS 14 20 1.2 10 1.3 10 TOTAL [40] Copyright Reserved Business Studies 8 ‘September 2017 Preparatory Examination NSC SECTION B QUESTION 2 24 2.2 221 2.2.2 2.2.3 2.2.4 212.5 2.3 Components of PESTLE Political, ~ Economical, v Social, ¥ Technological, “ Legalv and Environmental” (6) Consumer rights Right to choose v ¥ Right to privacy and confidentially vv Right to information about products and agreements/ Right to disclosure and information v ~ Right to accountability from suppliers VV Right to fair and honest dealings v ” (10) Strategic management process OPTION 1 - Have a clear vision, a mission statement and measurable/realistic objectives in place. vy - Identify opportunities\weaknesses/strengths/threats by conducting environmental scanning/situational analysis. ¥ - Tools available for environmental scanning may include a SWOT/PESTLE/Porters Five Forces-analysis. ¥~ - Formulate alternative strategies to respond to the challenges/scanning results.“ ~ - Develop (an) action plan(s), including the tasks to be done/deadlines to be met/resources to be procured, etc. Vv“ - Implement selected strategies by communicating it to all stakeholders/organising the business's resources/motivating staff. vv - Continuously evaluate, monitor, measure strategies in order to take corrective action. v~ - Any other relevant answer related to how the strategic management process can be applied. OR OPTION 2 - Review vision statement. v ¥ - Analyse/Re-examine mission statement. v ~ - Conduct an analysis using models such as PESTLE/PORTERS. ¥ ¥ - Formulate strategy, referring to strategies such as defensive/retrenchment. v ~ - Implement strategy using templates such as action plans. v ~ - Control of strategy to identify gaps in planning. v¥ - Evaluate strategy to identify deviations in implementation. ~ - Take corrective action to ensure goals/objectives are met. v~ - Any other relevant answer related to how the strategic management process can be applied. NOTE: The steps may be in any order. Max (10) Please tum over Copyright Reserved ### Page 5 Business Studies 9 2.44 2.4.2 25 Downloaded from hlayiso.com ‘September 2017 Preparatory Examination Nsc SECTOR MOTIVATION (a) Primary sector” Supplies mealies to the local markets” (b) Secondary sector” v Manufacture super maize meal! samp/ maize flour/ instant maize porridge.~” @) Backward integration. ~~ 2) (8) Types of diversification strategies NOTE: Please tum over Concentric diversificationvV * The business adds a new product or service that is related to existing products and which will appeal to new customers. * Occurs when a business wants to increase its product range and markets.V. * Any other relevant answer related to concentric diversification. Sub max (3) Horizontal diversificationvV * The business adds new products or services that are unrelated to existing products, but which may appeal to existing customers.¥ * Occurs when a business acquires or merges with a business that is at the same production stage, but it may offer a different product. * Any other relevant answer related to horizontal diversification. Sub max (3) Conglomerate diversificationvV * The business adds new products or services that are unrelated to existing products which may appeal to new groups of customers.V * Conglomerate diversification means that a business grows into new products, services and markets. * Any other relevant answer related to conglomerate diversification. Sub max (3) Mark the first TWO (2) only. (3 x 2) (6) Copyright Reserved Business Studies 10 2.6.1 vv 2.6.2 26.3 27 September 2017 Preparatory Examination NSC The Compensation for Occupational Injuries and Diseases Act (Act 61 of 1997)/ (COIDA) (2) Purpose of COIDA COIDA protects all casual and full-time workers who become ilfinjured/disabled/killed due to a workplace accident/disease. vv It excludes workers who are guilty of wilful misconducthworkers working outside South Africa for at least twelve months/members of the SA Defence Force/ Police services. vv It provides for the establishment of a Compensation Board whose function is to advise the Minister of Labour on the application/provisions of COIDAY~ Medical expenses/Other types of compensation are paid to employees and/or their families depending on the type/severity of the injuries. “~~” Employers have to pay a monthly amount to the Compensation Fund depending on the number of employees/the level of risk they are exposed tovy Any other relevant answer related to the purpose/nature of COIDA Max (8) YES NO Njabulo got injured when a recycling machine chopped off his fingers. vv He was not given protective clothing. vv NOTE: Do not allocate marks for Yes or No. Max (4) National Skills Development Strategy Please tum over Provides for the participationy of government, organised business and labour. Encourages good quality training in the workplace to ensure on-going development of skills. Indicates how Sector Education and Training Authorities (SETAs) should use the money allocated vfrom the Skills Development Levy (SDL). Improves social developmenty through economic development.V Increases access to programmes’ that train eople.V Encourages and supports small businessesV, community-training groups, NGOs and worker-initiated training initiatives.v Increases the skills of the public sectory to improve service delivery.v Builds/provides~’ career vocational guidance/ training centres. Establishes and promotes closer links between employersv, training institutions and the SETAs.V Any other relevant answer related to the National Skills Development Strategy. Max (6) Copyright Reserved ### Page 6 Business Studies 4 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC QUESTION 2 | MARKS 24 6 22 {| 10 10 6 2 6 2 ; 8 4 6 60 QUESTION 3: BUSINESS VENTURES. 3.1 Types of shares 3.1.1 Ordinary shareholders v ¥ 3.1.2 Preference shareholders Vv 3.1.3 Bonus shares ¥~ 3.1.4 Founders shares “~ 3.1.5 Redeemable preference shares v (5x2) (10) 3.2. Factors to be considered when making an investment decision - Return of investment (ROI) ” - Risk” - Investment term / period” - Influence of inflation on the pay-out value / growth of investments“ (Any other relevant factors related to making an investment decision) (4x1) (4) 3.3 Functions of JSE - Serves as a link ¥ between investors and entrepreneurs. ¥ - Keeps investors informed ~ through newspapers and other media by publishing share prices daily. ¥ - Regulates market v for dealing with shares. “ - Serves as a barometer/indicator “ of economic conditions. - Mobilises the funds ~ of insurance companies and other institutions. ” - Raisesv primary capital. ~ - Venture capital market v is made possible. ~ - Provides protection “ for investors. - Has strict listing requirements ¥ which increase liquidity for investors. “ - Creates a safe environment ~’ for exchanging securities. - Forces listed companies to improve their reporting, ¥ and provide better information for decision-making by investors. “ - Encourages ~ short term investments. ¥ - Allows small investors to buy shares in large companies. Please tum over Copyright Reserved Business Studies 3.4.4 3.4.2 3.5 12 September 2017 Preparatory Examination NSC - Enables financial institutions to invest v their surplus funds in shares. ¥ - Enables companies to offer share option incentives, v which increases their ability to attract and retain high-quality investment talent. ” - Monitors change ~ in listed companies. ~ - Monitors the activities ~ of the stockbrokers. ” - Uses STRATE ¥ to facilitate share transactions. v - Promotes the JSE to the general public “ and educates the public about the stock exchange. ¥ - Plans, researches and advises Y on investment possibilities. ~ - Allows shareholders to realise the value of their investments” through a public trading platform. v - Any relevant answer related to the functions of the JSE. Max (8) Transformational leadership theory. ¥~ (2) Motivation - has the ability to inspire his employees ¥ - to develop new leaders and build the group” - appeals to the ethical values of managers” - inspire people with his innovative style” Note: Mark the first TWO examples only (2) (4) Application of Transformational Theory - May be applied when followers/employees have a low morale ~/are demotivated/ are underperforming. ¥ - Applied during the strategic planning process~’, where vision/mission/objectives have to be developed/changed. ” - When a business is restructuring” and exploring new ways of doing things. ~ - Any other relevant answer related to the application of the transformational leadership theory in the workplace. Max (4) Role of personal attitude in successful leadership - Positive attitude releases leadership potential vv - Aleader's good/bad attitude can influence the success/failure of the business. v ¥ - Leaders must know their strengths and weaknesses to apply their leadership style effectively. vv - Great leaders understand that the right attitude will set the right atmosphere. v ~ - Leaders’ attitude can influence employees'/teams' thoughts and behaviour. v “ - Leaders should model their behaviour that they want to see in team members. v ~ - Leaders must know/understand their teams to be able to allocate tasks/roles effectively” ¥ - Enthusiasm produces confidence in a leader. v “ - A positive attitude is critical for good leadership because good leaders will stay with the task regardless of difficulties/challenges. vv - Successful employees and leaders have a constant desire to work and achieve personal and professional success. Vv“ Please tum over Copyright Reserved ### Page 7 Business Studies 13 3.6.1 3.6.2 3.7.1 3.7.2 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC - Leaders with a positive attitude know that there is always more to learn and space to grow. vw - Any other relevant answer related to the role of personal attitude in successful leadership. Max (8) Unit trusts” ¥ (2) Advantages / benefits of unit trusts - Managed by a fund manager ~ to buy shares on the stock exchange. “ - The investor has a variety to choose from/a wider range of shares v and a lower degree of risk. ¥ - Safe investments, ~ as it is managed according to rules and regulations. v - Asmall amount ¥ can be invested per month. ~ - Easy to invest in, v as investors simply fill in several forms or invest online. “ - Easy to cash in ~ when an investor needs money. ¥ - Fluctuations in unit trust rates of return are often not so severe “ because of diversity of the investment fund. ~ - Generally beats inflation “ on the medium/long term. “ - Offer competitive returns v in the form of capital growth and dividend distribution. ~ - Fund managers are knowledgeable/experts/reliable/trustworthy “ as they are required to be accredited to sell unit trusts. - Any other relevant answer related to the advantages of unit trusts. Max (6) Success factors of a private company Capital - Can raise large amounts of capital “ /New shareholders can be attracted. v - Share capital clause in the Memorandum of Incorporation (MO!) may be changed ~ to issue more shares, “ - May attract financially strong investors v if share value increases /remain stable. ” - Any other relevant answer related to the contribution of capital to the success of a public company. Max (4) Legislation - Procedures to form a private company Y have been simplified by the new Companies Act 71 of 2008. ¥ - Limited liability allows for greater risk taking, V which may lead to growth of the business. ” - Auditing of financial statements (if required), “ gives shareholders the assurance that the business is being properly managed and supports raising additional finance. ~ - There is no longer a limit v on the number of shareholders in a private company.” - Aprivate company can benefit from government programmes ~’if they comply with the relevant legislation. ” - Personal liability of share- holders” does not affect the company's assets. “ - Any other relevant answer related to the contribution of legislation to the success of a private company. Max (4) Please tum over Copyright Reserved Business Studios 14 3.8 September 2017 Preparatory Examination NSC Effectiveness of using graphs Positives - Used when information ¥ needs to be shown in parts. ~ - Graphs are invaluable visual summaries, v as it enhances a better understanding of the presentation. ¥ - People can easily identify trends with graphs, “ because it clearly show which parts are bigger/relative to others. “ - More visually appealing, v therefore important facts could be remembered better. ~ - Easier to read Y and keeps the audience attentive. v - Useful visual ways to represent data v to easily see patterns/make comparisons. v - Communicates figures much clearer v than just being a set of numbers. “ - Any other relevant positives for effectiveness of using graphs. AND/OR Negatives - Can be confusing v if they are not simple and clear. “ - Time consuming ~ because it involves cumbersome calculations. ” - Too many variables “ may make it difficult to read. “ - Audience can be distracted by graphs v and not concentrate on the presentation itself. ~ - Some graphs may only show the percentage, ~ but they do not indicate the major trends. ¥ - _ Any other relevant negatives for effectiveness of using graphs. Max (6) [60] BREAKDOWN OF MARKS QUESTION 3 | MARKS 3.1 10 @ 5 |] | ]0|r] 00] a].n) co]. Please tum over Copyright Reserved ### Page 8 Business Studies 15 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC QUESTION 4: BUSINESS ROLES 44 4.44 41.2 4.1.3 AAA 4.1.5 42 Unethical / unprofessional business practice Unprofessional Vv” Unprofessional v~ Unethical vv Unethical “~ Unethical. v~ (10) Characteristics of successful teams - Interpersonal attitudes and behaviour “ - Have a positive attitude of support and motivation towards co-team members. v~ - Have a positive attitude and passion to achieve team objectives. v~ - There must be clear objectives and agreed upon goals, v~ - Team members must be committedy to achieve the team objectives. ¥ - Team leader should acknowledge/give credit “to members for positive contributions. vv - Shared values”’/Mutual trust and support. “~~ - Shows loyalty/respect” towards team members despite differences. “VW - Shows respect to the knowledge and skills of other members. v “ - Perform team tasks with integrity, pursuing responsibility and meeting team deadlines with necessary commitment to team goals. v~ - Team members trust one another. ¥~ - Effective” communication v ~ - Speaks clearly and listens attentively “ - Communicates with team members and allows for feedback. ¥ - Encourages discussion about the problem so that solutions can be found. v” - Co-operation/Collaboration amongst team members ¥ ¥ - Willingness to co-operate in the team to achieve team objectives. v~ - Willingness to co-operate with management to achieve team and business objectives. v~ - Agree on methods/ways to get the job done effectively without wasting time on conflict resolution. ““ - Allmembers take part in decision making. Vv ¥ - Any other relevant answer related to characteristics of teams. Note: Mark the first FIVE characteristics Max (10) Please tum over Copyright Reserved Business Studies 16 September 2017 Preparatory Examination NSC 4.3 Procedure for dealing with grievances in the workplace 444 - An aggrieved employee must verbally report the incident/grievance to his/her supervisor/manager, Y who needs to resolve the issue within 3 to 5 working days. ~ - Should the employee and supervisor not be able to resolve the grievance, “ the employee may take it to the next level of management. “ - The employee may move to a more formal process” where the grievance must be lodged in writing/completes a business grievance form. ~ - He/She must receive a written reply “ in response to the written grievance. ~ - Agrievance hearing/meeting v must be held with all relevant parties present. ” - Minutes of the meeting must be recorded ¥ and any resolution passed must be recorded on the formal grievance form. ~ - Should the employee not be satisfied, v then he/she could refer the matter to the highest level of management. ¥ - Top management should arrange a meeting v with all relevant parties concerned. v - Minutes of this meeting should be filed/recorded” and the outcome/decision must be recorded on the formal grievance form. ¥ - Should the employee still not be satisfied, he/she may refer the matter to the CCMA” who will make a final decision on the matter. ~ - Any other relevant answer related to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max (8) - Increase in salesv - Increase in productivity” - Increased morale~ - _ Increased motivation’ NOTE: Mark the first TWO only. (2) Benefits of a diverse workforce - Workforce diversity improves the ability of a business ~ to solve problems/ innovate/cultivate diverse markets. “ - Employees value each other's diversity“ and learn to connect and communicate across lines of difference. - Diversity in the workforce improves morale and motivation. ~ - Employees demonstrate greater loyalty to the business ~ because they feel respected/accepted/understood. ” - Adiversified workforce can give businesses a competitive advantage v as they can render better services. Vv - Being respectful of differences/demonstrating diversity “ makes good business sense/improves profitability. ~ - Diverse businesses ensure that its policies/practices empower every employee to perform at his/her full potential. - Customers increasingly evaluate businesses Y on how they manage diversity in the workplace. ” - Employees from different backgrounds ¥’ can bring different perspectives to the business. Please tum over Copyright Reserved ### Page 9 Business Studies 7 September 2017 Proparatory Examination Business Studies 18 Downloaded from hlayiso.com NSC - Adiversified workforce stimulates debate v on new and improved ways of getting things done. ¥ - Employees represent various groups ~ and are therefore better able to recognise customer needs/satisfy consumers. ~ - Businesses with a diverse workforce are more likely to have a good public image “ and attract more customers. ~ - Any other relevant answer related to benefits of diversity in the workplace. (Do not award marks if responses to 4.4.1 are repeated) Max (8) Address issues of diversity in the workplace (a) Language - Abusiness may specify that all communications must be in one specific language only and would expect employees to have a certain level of fluency in that AS language.vW - It may sometimes be necessary to employ an interpreter so that everyone can fully understand what is being said in a meeting. VW - All business contracts should be in easy-to-understand language and should be available in the language of choice for the parties signing.Vv - Any other relevant answer related to how businesses should address language as a diversity issue in the workplace. Sub max (4) (b) Age - Eromaiens should not be linked to age, but rather to specific skills set - Abusiness must not employ children aged 15 or younger.vv - The ages of permanent workers should vary from 18 to 65 to include all age groups.VV - A business may employ a person who is older than the normal retirement age provided that person is the most suitable candidate.vV - Businesses must encourage older employees to help young employees to develop their potential.VV - Young employees must be advised to respect and learn from older employees. vV¥ - The business should encourage employees to be sensitive to different perspectives of various age groups.vV - Any other relevant answer related to how businesses should address age as a diversity issue in the workplace. Sub max (4) (c) Disability = Provide employment opportunities for people with disabilities. VV - Accommodate people with disabilities by providing facilities/ramps for wheel chairsw\, etc. - Ensure that workers with special needs are not marginalised/feel excluded from workplace activities.\V - Business should be well informed with how to deal with disabled employees.vv) - Policies and programs should accommodate the needs of people with disabilities. WW Please tum over Copyright Reserved September 2017 Preparatory Exeminetion NSC - Create an organisational culture and climate that is conducive for people with disabilities. VV - Employees should be trained to deal with colleagues with disability.Vv - _ Bringing in external experts to help with disability and accommodation issues.W - Ensure that employees with disabilities are treated fairly VV - Focus on job skills/work performance of the disabled, rather than their disability/ possible problems they may pose in the future. VV - Any other relevant answer related to how businesses should address disability as a diversity issue in the workplace. Sub max (4) Max (12) Creative thinking - _ Emphasise the importance of creative thinking to ensure that all staff know that you want to hear their ideas. vv - Encourage staff to come up with new ideas/opinions/solutions. v” - Make time for brainstorming sessions to generate new ideas, e. g. regular workshops/generate more ideas/build on one another's ideas. “” - Place suggestion boxes around the workplace and keep communication channels open for new ideas. vv - Train staff in innovative techniques/creative problem solving skills/mind- mapping/lateral thinking. v ~ - Encourage job swops within the organisation/studying how other businesses are doing things. v ~ - Encourage alternative ways of working/doing things. vv - Respond enthusiastically to all ideas and never let anyone feel less important. vv - Reward creativity by introducing reward schemes for teams/individuals who come up with creative ideas. vv - Provide a conducive working environment free from distractions. vv - Any other relevant answer related to ways in which businesses can promote creative thinking in the workplace. NOTE: The emphasis is on ‘ways’, not necessarily advantages. Max (10) BREAKDOWN OF MARKS QUESTION 4 | MARKS 44. 10 | 42 10 43 8 444 2 4.4.2 8 4430 12 45 - 40 TOTAL 60 Please tum over Copyright Reserved ### Page 10 Business Studies 19 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC QUESTION 5: BUSINESS OPERATIONS. 5.1 a in 5.3 Business functions 5.1.1. General Management v ~ 5.1.2. Production Function vv 5.1.3. Human Resource Function’ “ 5.1.4 Financial Function v¥ 5.1.5 Public Relations Function vv (10) Contents / details of an employer contract - Name/Address/Contact details of Employer. “ - Personal details/Address of Employee. ” - Job title. - Job description. - Working hours. ~ - Overtime. ¥ - Salary/Remuneration package. ¥ - Normal place of work. “” - Leave. ¥ - Date of commencement of employment/Starting date. v - Probation period. v - Code of conduct and/or Code of ethics. ~ - Termination of the contract” - Disciplinary policy. ~ - Any other relevant answer related to the contents of the employment contract. NOTE: Mark the first FIVE details. Any (5x 1) (5) Selection Procedure - Determine fair assessment criteriay on which selection will be based. - Use the assessment criteria to assess all CVs/application forms v received during recruitment “Preliminary screening” is done by sorting the applications received according to the criteria for the job. ” - Check that applicants are not submitting false documents” such as forged certificates/degrees. “ - Make a list of all applicants” who qualify for the post. ~ - Screen and check reference, Y e.g. check applicants’ criminal records/credit history/social media, ¥ etc. - Conduct preliminary interviews ~ to sift out applicants who qualify for the job. ” - Inform all applicants v about the outcome of the application. ~ - Compile a shortlist “ of approximately five people. ~ - Invite the shortlisted applicants/candidates v for an interview. ~ - Shortlisted candidates may be subjected to various types of selection tests, ¥ e.g. skills test. ¥ - Awvritten offer is made” to the chosen candidate. - Any other relevant answer related to the selection procedure of a receptionist. NOTE: Procedure can be in any order. Max (10) Please tum over Copynght Reserved Business Studies 20 5.4.2 September 2017 Preparatory Examination NSC Identification Intemal recruitment (2) Motivation Bollywood Boutique has advertised the vacancies on the staff notice board/bulletins~ (t) Identification (2) Motivation (1) Max (3) Evaluation of internal recruitment. Positives Cheaper/Quicker~ to fill the post. ~ Placement is easy, Y as management knows the employees’ skills/personality/ experience/strengths. Provides opportunities V for career paths within the business. Vv The employee already has an understanding” of how the business operates. “/ Induction/Training” is not always necessary. ” Reduces the chances of losing employees, “ as future career prospects are available. ¥ Detailed, reliable information” can be obtained from the supervisors/employee records. ~ Any other relevant answer related to the positives of internal recruitment. AND/OR Negatives Please tum over The promotion of an employee could cause resentment” among other employees. ¥ The number of applicants from which to choose is limited to existing staff only. ¥ Itis possible to promote certain employees who do not really have the required skills for the new job. v It may close the door” to new ideas from outsiders. “ The business has to spend more money on training/developing “ existing employees on the new position. ~ Employees who are not promoted v may feel demotivated. v Any other relevant answer related to the negatives of internal recruitment. Max (8) Copyright Reserved ### Page 11 Downloaded from hlayiso.com Business Studies 24 NSC September 2017 Preparatory Examination 5.5 Difference between quality control and quality assurance QUALITY CONTROL QUALITY ASSURANCE Inspection of the final product¥ to ensure that it meets the required standards. - Carried out during and after the production process¥ to ensure required standards have been met at every stage of the process.V Includes setting targets/measuring performancev and taking corrective measures.¥ - Ensure that every process is aimed at getting the product right first timev and prevent mistakes from happening again.v Any other relevant answer related to | quality control - Any other relevant answer related to quality assurance. Sub max (4) Sub max (4) NOTE: 1. The answer does not have to be in tabular format. 2. The distinction must be clear. Max (8) 5.6 Benefits / Advantages of a good quality management system Effective customer services will be rendered, resulting in increased customer satisfaction. Vv Time and resources are used efficiently. vv Productivity increase through proper time management and using high quality resources. v¥ Products and services are constantly improved. vv Vision and mission/Business goals” may be achieved, Vv” The business may achieve a competitive advantage over its competitors. Vv“ Continuous training will continuously improve the quality of employees’ skills and knowledge. vv Employers and employees will have a healthy working relationship which generally results in happy workers. v~ Increased market share/profitability may result in business growth/expansion. ¥v ~ Any other relevant answer related to the advantages of a good quality control system. Max (8) 5.7 Quality indicators for the purchasing function Buy raw materials in bulk at lower prices. vv Select reliable suppliers that render the best quality raw materials/capital goods at reasonable prices. v Place orders timeously and regular follow-ups to ensure that goods are delivered on time. ¥~ Effective co-ordination between purchasing and production departments so that purchasing staff understand the requirements of the production process. VW” Required quantities are delivered at the Implement and maintain stock control systems to ensure the security of stock. “” right time and place. vv Maintain optimum stock levels to avoid overstocking/reduce outdated stock. vv Monitor and report on minimum stock levels to avoid stock-outs. Vv” Effective use of storage space and maintain product quality while in storage. vv Please tum over Copyright Reserved Business Studies 22 September 2017 Preparatory Examination NSC Involve suppliers in strategic planning/product design/material selection/quality control process. vv Ensure that there is no break in production due to stock shortages. vv” Establish relationships with suppliers so that they are in alignment with the business's vision/mission/values. v Have a thorough understanding of supply chain management. vv Any other relevant answer related to quality indicators for the purchasing function. Max (8) [60] BREAKDOWN OF MARKS QUESTION 5__| MARKS 5.1 10 5.2 [5 5.3 to | 5.4.4 3 5.4.2 8 5.5 8 5.6 8 5.7 8 TOTAL 60 QUESTION 6: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 6.1 Provisions of the BCEA Family responsibility/maternity/annual leave.V Fringe benefits/Employee benefits/Perks.V Remuneration/Salary/Severance packages or pay. Sunday/Public holiday.v Prohibition of child labour. Termination of employment.V Any other relevant answer related to the provision of the BCEA. NOTE: Mark the first FIVE only. (5) Please tum over Copyright Reserved ### Page 12 Business Studies 23 6.2 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC Business Strategies Intensive strategies Market penetrationy v - Business may use aggressive marketing campaigns, e.g. low prices, to attract competitors’ clients/attempt to persuade consumers that are already buying their products to continue supporting them. - Increase the market share of existing products/Promote new products that have become well established. v - Business should do market research on existing clients to decide how to improve his marketing mix. ” - Reduce prices to increase sales. ¥ - Embark on an intensive advertising campaign to increase awareness and customer loyalty. ¥ - Employ more sales staff to improve sales services. ¥ - Any other relevant answer related to a discussion of market penetration. Strategy: 2 Discussion: 1 Sub max (3) Market development v “ - tis a growth strategy where businesses aim to sell its existing products in new markets. ~ - Businesses can target consumers in a potential market that is outside of its normal target market. “ - Find new ways of selling cars to other customers/in other areas. ¥ - Restructure pricing policies to cater for customers of all income levels. ¥ - Any other relevant answer related to a discussion of market development Strategy: 2 Discussion: 1 Sub max (3) Product development vv - It is a growth strategy where businesses aim to introduce new products into existing markets. - Businesses generate new ideas/develop a new products/services. ¥ - Businesses may conduct test marketing/market research to establish whether new products will be accepted by existing customers. ¥ - New products may be different/of a higher quality than those of competitors. “ - Any other relevant answer related to a discussion of product development. Strategy: 2 Discussion: 1 Sub max (3) Max (9) Please tum over Copyright Reserved Business Studies 24 September 2017 Preparatory Examination NSC BUSINESS VENTURE 63 6.3.1 Insurance 6.3.2 6.4 Amountinsured x damages (formula) Market value 400000 y x 300000” 500 000 = R240 000 ¥Y (4) NOTE: 1. Allocate full marks (4) if the answer is correct and no working are shown. 2. If working were shown correctly, but the final answer is wrong, award a maximum of TWO (2) marks 3. If the answer is incorrect, award a maximum of ONE (1) mark for the understanding of concept and method. 4. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. Average clausev “ Applies when goods/ property are/is under insured”, then the insurance company will not pay out the full amount of the loss. ” (4) Responding to questions - Understand each question/comment before responding. v¥ - Listen carefully to each question and then respond. v ¥ - Address questions and not the person. v ~ Acknowledge good questions. v Remain professional, polite, calm and open. Vv Ability to answer the questions and follow up on it. ¥Y - Rephrase questions if uncertain/ensure that you understand what is being asked. v - Do not get involved in a debate/argument. Vv” - Do not allow one member of the audience to dominate the discussion/session and ask all the questions. vv - Avoid answering difficult questions when the answer is not known.v” - Apologise for the error and promise to provide everyone with the correct details. vv - Address the whole audience and not only the person asking the question. v ” - Any other relevant answer related to aspects to keep in mind when responding to questions in a non-aggressive and professional manner after the presentation NOTE: Mark the first THREE only. (3 x 2) (6) Please tum over Copyright Reserved ### Page 13 Business Studies 25 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC BUSINESS ROLES 65 6.6.1 66.2 67 King code principles Transparency ~ Accountability ~ Responsibility “ (3 x 1) (3) Delphi technique “~ (2) Positives / Advantages of the Delphi technique in solving business problems A group of experts will be used~’ without bringing them together. ” Experts will give clear ideas/solutions” on how to improve on low productivity/profitability. “ Panel members/Experts can give new information” on problems. “ Information received from experts” can be kept confidential. ” It reduces noise levels in an office environment” since there is no group discussion.” Panel members/Experts need to reach consensus, v so that the best solution is found. ¥ All experts are given an equal opportunity to give their opinions, “ so no-one dominates the process. “ Any other relevant positive evaluation related to the use of the Delphi technique in solving business problems. Max (6) Ways of promoting social rights in the workplace Please tum over Businesses should ensure that employees have access to health care/social security. “Vv Encourage employees/Provide opportunities for skills training/basic education. vv Register workers at UIF to provide adequate protection in the event of unemployment/ illness. vv Encourage employees to participate in special events, e.g. World Aids day. ¥“ Establish site clinics to give employees access to basic medical examinations. ¥” Any other relevant answer related to the promotion of social rights in the workplace. NOTE: Do not accept ways that promote human and/or economic rights. Max (6) Copyright Reserved Business Studies 26 September 2017 Preparatory Examination NSC BUSINESS OPERATIONS 6.8.1 Car allowance ~ (1) 6.8.2 Advantages of fringe benefits to SE 6.9 Altractive fringe benefit packages“ may result in higher employee retention/reduces employee turnover. ~ It increases employee satisfactionoyalty, “ as they may be willing to work under pressure/improve personal performance. “ Leads to higher productivity, ~ as workers work for longer hours/more days. ¥ Attracts good/qualified employees~ who do not always need extra training. ~ Any other relevant positive aspect related to fringe benefits. Max (6) Benefits of a good management system Please tum over Effective customer services will be renderedy, resulting in increased customer satisfaction.v Time and resources\ are used efficiently.v Productivity increase through proper time managementv and using high quality resources. Products and servicesv are constantly improved.¥ Vision and mission/Business goals may be achieved. The business may achieve a competitive advantage over its competitors.V Continuous trainingy will continuously improve the quality of employees’ skills and knowledge.¥ Employers and employees will have a healthy working relationshipy which generally results in happy workers. Increased market share/profitability) may result in business growth/expansion.v Any other relevant answer related to the benefits / advantages of a good quality control system. Max (8) [60] BREAKDOWN OF MARKS QUESTION 6 | MARKS 6.1 5 6.2 6.3.1 6.3.2 6.4 6.5 6.6.1 66.2 6.7, 6.8.1 68.2 8) 0\0|-]o]a|nJos/o]a| aloo Copyright Reserved ### Page 14 Business Studies 27 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC QUESTION 7 7.3 BUSINESS ENVIROMENTS 7 7.2 BUSINESS ENVIRONMENTS (LEGISLATIONS) Introduction - The Skills Development Act, 1998 (Act 97 of 1998) (SDA) was developed in response to the demand for redress and equity. ~ - The SDA is the integral part of the National Skills Development Strategy that aims to link learning to the demands of the world of work and enables employers/employees to become more productive and competitive. ~ - Learnerships are theoretical and practical training opportunities that can lead to a recognised occupational qualification. - Broad-Based Black Economic Empowerment (BBBEE) creates opportunities for people who were previously excluded from participating in the South African economy. ~ - BBBEE empowers black people including women, youth, and people with disabilities and people living in rural areas. ~ - BBBEE is a mechanism to transform all business in South Africa. ~ - The aim of BBBEE is to address the shortcomings of the Employment Equity Act, BEE and affirmative action as a whole. “ - The BBBEE Act deals with codes of good practice and industry charters. ~ - Any other relevant introduction related to the implementation offcompliance to the SDA/SETAs and BBBEE (1 x 2) (2) 7.4 Role of SETAs - Develops skills plans in line with the National Skills Development Strategy. v~ - Approves workplace skills plans and annual training reports. v~ - Pays out grants to companies complying with the requirements of the Skills Development Act. “~ - Promotes and establishes learnerships. v ” - Registers learnerships and learning programmes. ¥ ~ - Provides training material/programmes for skills development facilitators. v ~ - Provides accreditation for skills development facilitators. “~ - Oversees training in different sectors of the South African economy. ¥¥ - Draws up skills development plans for their specific economic sectors. v ¥ - Allocates grants to employers, education and training providers and employees. v ” - Promotes learnerships and learning programmes by identifying suitable workplaces for practical work experience. “~ - Collects levies and pays out grants as required. v ” - Any other relevant answer related to the roles of SETAs. Max (10) Please tum over Copyright Reserved Business Studies 26 September 2017 Preparatory Examination NSC Purposes of the SDA - Develops the skills of people in South Africa ‘in order to improve productivity. ~ - Invests in education” and training of workers. ” - Encourages businesses” to improve the skills of their workers. “ - Improves the chances of getting a job” for previously disadvantaged people. ¥ - Redresses imbalances of the pastv through education and training. ~ - Provides for the implementation of strategies“ on a national, sector and workplace basis. v - Provides funds for skills development through the levy-grant scheme” anda - National Skills Fund. ” - Encourages workers “to participate in learning programmes. ¥ - Any other relevant answer related to the purpose of the SDA. Max (12) Impact of the Skill Development Act on businesses Businesses: Positives / Advantages - Increases the number of skilled employees in areas where these skills are scarce.¥ - Improves productivity” in the workplace. ~ - Increases global“ competitiveness. - Increases investment in education” and training in the labour market. ~~ - Improves the return on investment” in education and training. ¥ - Any other relevant answer related to the positive impact of the SDA on businesses. AND/OR Negatives / Disadvantages - The SDA process is prescriptive and requires a large amount of paperwork and administration. v This can cost time and money. v - Skill Development Levy could be an extra burden to financially struggling businesses. v - Itmay be monitored and controlled by government departments ~ that do not have education and training as their key priorities. v - The SETAs may not be well organised and many courses offered by companies” may not have unit standards that relate to the course content. ~ - Many service providers that offer training services” are not SAQA accredited. v - Many businesses” may not support this government initiative. - Implementation of the SDAY can be difficult to monitor and control. “ - Employees are expected to attend learnerships during work hours“ which could affect the production process/productivity. “ - Costly for businesses to employ a personv to implement, manage and control learnerships. ¥ - The time and money spent on improving employee skills is wasted v if they leave the business. ¥ ” Any other relevant answer related to the negative impact of the SDA on businesses. Max (12) Please tum over Copyright Reserved ### Page 15 Downloaded from hlayiso.com Business Studies i September 2017 Preparatory Examination Business Studies 30 September 2017 Preparatory Examination NSC 7.5 Recommendations of BBBEE pillars on Isilumko Staffing BREAKDOWN OF MARK ALLOCATION FOR QUESTION 7 7.5.1 Ownership Details Maximum | Total - Businesses should include black people in shareholding/partnerships/ franchises. v ” Introduction 2 - Exempted microenterprises (EMEs) with a black ownership of 50% or more have a Role of SETAs. 10 better BEE rating/score. vw Purpose of SDA 12 - More opportunities are created for black people to become owners/ Impact of SDA on businesses 12 Max entrepreneurs. v~” Recommendations of 32 - Businesses sometimes find it difficult to attract suitable black business Ownership and Management as 12 partners/shareholders. v ~ pillars of BBBEEE - Many black people cannot afford shares/contributions to partnerships. v~ Conclusion 2 - Any other relevant answer related to the implication of ownership as a BBBEE pillar INSIGHT _ on businesses. Layout 2 Sub max (6) Analysis, interpretation 2 8 ‘Synthesis 2 7.5.2 Management Originality, examples 2 - Appointing black people in senior executive positions/management. v~ TOTAL MARKS 40 - Ensuring black female representation in management. vv LASO - For each component: - When businesses sell 25% of their shares to black investors to become directors, the Allocate 2 marks if all requirements are met. business will score points in both management and ownership. v~ Allocate 1 mark if some requirements are met. - Due to a shortage of skilled black managers/directors, some businesses may find it Allocate 0 marks where requirement are not met at all. difficult to make appointments, “~~ - Any other relevant answer related to the implication of management as a BBBEE pillar on businesses. Sub max (6) Max (12) 7.6 Conclusion - The SDA plays an important role in ensuring that the workforce is skilled and contributes to productivity and the economic growth of the country. v~ - The SDA enables businesses to improve the skills of their employees and this increases employee morale/reduces staff turnover. vv - Itis a practical growth strategy that aims to stimulate economic growth. vv - Itis a good strategy of government to address the imbalances of the past. vv - To promote access to finance for Black Economic Empowerment. “~~ - Any other relevant conclusion related to the implementation offcompliance to the SDA and BBBEE. (2 x 1) (2) [40] Please tum over Copyright Reserved Please tum over Copyright Reserved ### Page 16 Business Studies 34 Downloaded from hlayiso.com September 2017 Preparatory Examination NSC QUESTION 8: BUSINESS VENTURE (Insurance) 8.4 8.2 Introduction Insurance is extremely beneficial to businesses as it provides financial relief in times of unforeseen financial losses. ¥ Business owners should have a clear understanding of the financial impact of accidents and disasters on their business operations, so that they can make provision for that in advance. v Business owners should be aware of the benefits of contributing towards compulsory insurance, e.g. UIF and RAF. “ Itis important for business owners to understand the difference between insurable and non-insurable risks. ~ Any other relevant introduction related to insurance. (2x1) (2) Advantages insurance to businesses Please tum over Transfers the risk from the business/insured v‘to an insurance company/insurer. The transfer of the risk is subject to the terms and conditions” of the insurance contract. 7 Protects the business against theft and loss of stock and/or damages~ caused by natural disasters such as floods, storm damage, etc. “ The business will be compensated” for insurable losses, e.g. destruction of property through fire. ” Business assets”, e.g. vehicles/equipment/buildings need to be insured against damage and/or theft. “ Business is protected against the loss of earnings e.g. strikes by employees result in losses worth millions of rands. Protects the business against deeds of dishonesty” by employees. Insurance can be taken against the life of partnersv in a partnership. v Should the services of key personnel be lost due to accidents or death, “the proceeds of an insurance policy can be paid out to the business/ beneficiaries. “ Replacement costs for damaged machinery and equipment are very high, “ therefore, insurance can reduce/cover these costs. ~ Any other relevant answer related to the advantages of insurance to businesses. Max (12) Copyright Reserved Business Studies 8.3 a2 September 2017 Preparatory Examination NSC Principles of Insurance Indemnification/IndemnityvV Applicable to short term insurance.VV Insured is restored to almost the same financial position as before the loss occurred.vV Neither the insurer nor the insured may profit from insurance. VY Principle of re-instatement may be applied if the item was over-insured.vV In the case of under-insurance only a portion of the loss will be refunded. VV Any other relevant answer related to the principle of indemnification/indemnity. Principle (2) Description (4) Sub max (6) SecurityvV - Applicable to long/short term insurance/life assurance.v - Insurer undertakes to pay out a pre-determined amount in the event of the death/reaching a certain age/personal injury of the insured.vY - Aim is to provide financial security to the insured at retirement/the dependants of the deceased. - Any other relevant answer related to the principle of security. Principle (2) Description (4) Sub max (6) Utmost good faithvY Insured has to be honest in supplying details when entering into the insurance contract.vv Details/Information supplied when claiming should be accurate/true.vV Any other relevant answer related to the principle of utmost good faith Principle (2) Description (4) Sub max (6) Insurable interestv¥ Please tum over Insured will suffer a financial loss/liability as a result of an insurable risk.vVv Insured must have a legal relationship with the object insured in the contract, e.g. a man is legally married to his wife and he can insure her life.vv Any other relevant answer related to the principle of insurable interest. Principle (2) Description (4) Sub max (6) Max (12) Copyright Reserved Text truncated here. 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