Business Studies Grade 12 KZN Prelim 2018 Question Paper

Education KwaZulu-Natal Department of Education NATIONAL SENIOR CERTIFICATE GRADE 12 FARASAS SEERA SA 20880 BUSINESS STUDIES PREPARATORY EXAMINATION MARKS: 300 TIME: 3 hours This question paper consists of 16 pages. = Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination NSC 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 FIVE questions. Answer any THREE of the FIVE questions in this section. SECTION C: Consists of FOUR questions. Answer any TWO of the FOUR questions in this section. ee 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. g. Use the table below as a guide for marks and time allocation when answering each question. SECTION QUESTION | MARKS TIME A: Objective type questions . COMPULGHRY" 1 40 30 minutes 2 60 30 minutes B: FIVE direct/indirect type 3 60 30 minutes questions (CHOICE: Answer 4 60 30 minutes any THREE) 5 60 30 minutes 6 60 30 minutes gr 40 30 minutes C: FOUR essay type questions 8 40 30 minutes (CHOICE: Answer any TWO) 9 40 30 minutes 10 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

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination 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 An industrial tool that Take and Pay Store can use to analyse challenges in the market environment. A Balanced Scorecard. B PESTLE. Cc Porters Five Forces D Scamper 1.1.2 The Compensation Fund pays benefits to .... a person employed by the state to perform military service. an employee who is disabled.. a member of South Africa Police Force. a domestic worker in a private household 0C0oOw> 1.1.3 “Consider all alternatives to solve a problem and choose the best one” refers to... A Problem solving B Creativity Cc Decision-making D Presentation 1.1.4 The following business can be listed on the JSE: A Kimmy’s Boutique (Pty) Ltd. B Nalini’s Boutique Inc. Cc Kia’s Boutique Ltd. D Nalini’s & Kia’s Boutique Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination NSC 4.1.5 ONE of the roles of the health and safety representative: A Identify potential dangers in the workplace B Report product defects Cc Make a monetary contribution to the central fund D Charge workers who do not comply with safety measures 1.1.6 Diversity in business means ... A only previously disadvantaged individuals should be employed. B businesses should include people from different religions and cultures. Cc employ young people only. D include only English-speaking people. 1.1.7 This team dynamic theory focusses on the roles that team members prefer to play in a team. A Magerison-McCann B Belbin Cc MTR-I approach D Jungian 1.1.8 The process whereby new employees' skills are matched to the positions in which they will be appointed: A Induction B Recruitment c Placement D Selection 1.1.9 This aspect should be considered when designing a multimedia presentation: A Choose relevant images. B Cover a large amount of information. Cc Keep eye contact with the audience. D Information should include past and present facts. 1.1.10 Comparing the actual performance of a financial manager to his/her expected performance in order to increase his/her salary: Staff development Recruitment Performance appraisal Counselling (10 x 2) (20) DOWD Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies eptember 2018 Preparatory Examination NSC 1.2 Complete the following statements by using the word(s) provided in the list below. Write only the word(s) next to the question number (1.2.1 — 1.2.5) in the ANSWER BOOK. economic; indemnification; Consumer Protection Act; professionalism; monitoring and evaluation; security; | continuous improvement to processes and systems; cultural; ethics; National Credit Act 1.2.1. The principle of ... is applicable to short term insurance as the insured is compensated for specified harm/loss. 1.2.2 The right of the employee to have day offs for religious purposes is an example ofa... right. 1.2.3. .... Act promotes a fair/competitive credit market. 1.2.4... includes guidelines on employees’ appearance, communication, attitude and responsibility. 1.2.5... is an ongoing effort to improve products, services or processes. (5 x 2) (10) 1.3. Choose a description from COLUMN B that matches a term from COLUMN A. Write only the letter (A - E) next to the question number (1.3.1 — 1.3.5) in the ANSWER BOOK, e.g. 1.3.6 K. COLUMN A COLUMN B 1.3.1 | Employment Equity | A Right to belong to a trade union. Act 1.3.2 | Reinstatement B A complaint from an employee over something believed to be wrong or unfair in the workplace. 1.3.3 | Conflict Cc Refers to techniques/tools used to design / improve the quality of the product. 1.3.4 | Human right D The insurer will only pay the average between the actual value and the insured 1.3.5 | Quality performance | E Differences in opinions, values and attitudes. F Insured is restored to almost the same financial position as before the loss occurred G Inspections is carried out during and after the production process to ensure required standards have been met at every stage of the process H Implement affirmative action to prevent unfair discrimination. _ | Enhance the economic participation of black people. J Right to healthcare. (5x 2)(10) TOTAL SECTION A: 40 Copyright Reserved Please Turn Over

Download ed from hlayise,gom, Preparatory Examination NSC 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 on a NEW page, QUESTION 3 on a NEW page, et cetera. QUESTION 2: BUSINESS ENVIRONMENT 2.1. Name FIVE provisions of the Basic Conditions of Employment Act, 1997 (Act 75 of 1997). (5) 2.2 Read the scenario below and answer the questions that follow. RELIABLE COMPUTERS (RC) RC specialises in the manufacturing of quality computers in Mtubatuba. Their suppliers are often unable to deliver parts on time. The unfavourable exchange changes rates increased costs of production. Management feels time spent on improving employee skills is a waste as it decreases profitability. 2.2.1 Identify the sector in which RC operates. Motivate your answer by quoting from the scenario above. (3) 2.2.2 |dentify RC’s challenges according to the scenario and then classify them into the THREE business environments. (6) 2.2.3. State the extent of control RC have over each business environment. (3) Redraw the table below in the ANSWER BOOK to answer question 2.2.2 and 2.2.3 CHALLENGE BUSINESS ENVIRONMENTS | EXTENT OF CONTROL 2.2.2 22,2 2.2.3 (a) (b) (c) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination NSC 2.3 Describe the strategic management process. (6) 2.4 Discuss any THREE consumer rights as stipulated in the Consumer Protection Act (CPA), 2008 (Act 68 of 2008). (9) 2.5 Outline the role of SETAs in supporting the Skills Development Act, 1998 (Act 97 of 1988). (8) 2.6 Recommend ways in which businesses may apply the following pillars of the Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003) 2.6.1 Management (4) 2.6.2 Enterprise development (4) 2.6.3 Preferential procurement (4) 2.7 Suggest practical ways in which businesses may comply with the Employment Equity Act, 1998 (Act 55 of 1998). (8) [60] Copyright Reserved Please Turn Over

Business Studies Downloaded from hlayiso.com September 2018 Preparatory Examination NSC QUESTION 3: BUSINESS VENTURE 3.1 3.2 3.3 3.4 3.5 Name FOUR factors that should be considered when making investment decisions. (4) Distinguish between insurance and assurance. (4) Read the scenario below and answer the questions that follow. Azareen won R100 000 in an East Coast Radio competition. She is considering investing directly with the National Treasury or with a financial consultant who will buy a group of shares and securities from a variety of companies. 3.3.1 Identify the TWO types of investment described in the scenario above. (2) 3.3.2 Explain the differences between the two types of investments identified in QUESTION 3.3.1. (8) Read the scenario below and answer the questions that follow. Sisaya CC Sisay owns a manufacturing business called Sisaya CC. He changed to another form of ownership where he is the only director and has limited liability for the debts of the business. He registered his new form of ownership as Sisaya (Pty) Ltd. 3.4.1. Identify the new form of ownership that Sisay registered. Motivate your answer by quoting from the scenario. (3) 3.4.2. Describe how the following factors can contribute to the success and/or failure of Sisay new form of ownership as identified in QUESTION 3.4.1. (a) Capacity (4) (b) | Management (4) (c) Legal requirements (4) Evaluate the effectiveness of using Electronic slides / PowerPoint / Slide Show when making a presentation. (6) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination nse 3.6 Read the scenario below and answer the questions that follow. CODING TRADERS (CT) Mr. Tarrick, a managing director at Coding Traders, ensures that all employees are involved in decision making process. The management values each employee’s contribution on how to increase business profits. 3.6.1 Name the leadership style that Mr. Tarrick is applying in the scenario above. Motivate your answer by quoting from the scenario. (3) 3.6.2 Evaluate the impact of Mr. Tarrick’s leadership style identified in QUESTION 3.6.1 on Coding Traders. (8) 3.6.3 Advise Mr. Tarrick on the benefits of using the transformational leadership theory in the workplace. (6) 3.7. Recommend ways on how Mr. Tarrick can improve on his next presentation. (4) [60] Copyright Reserved Please Turn Over

Business Studies Downloaded from hlayiso,com NSC QUESTION 4: BUSINESS ROLES 4.1 4.2 4.3 44 4.5 Copyright Reserved List FIVE economic rights of employees in the workplace. Identify the stage of team development applicable in EACH of the following statements: 4.2.1 Team processes and style of work improve and unity is strong. 4.2.2 Individuals are motivated by the desire to be accepted by fellow team members. 4.2.3. Team members open up to each other and confront each other's ideas/ perspectives. September 2018 Preparatory Examination 4.2.4 Team members find ways to complete tasks without external supervision. (8) Explain the responsibility of employees in promoting human health and safety in the workplace. Read the scenario below and answer the questions that follow: (8) SAUNDERS LTD Ms Senzeni is the human resources manager at Saunders Ltd. Eight employees are reporting to her. She seldom meets with her employees to give feedback and/or listen to their inputs. Thando, Ms Senzeni’s favourite, was promoted as her assistant manager, although he lacks the necessary skills and experience. New computers and office equipment are allocated only to those employees who support Thando’s appointment. Employees were informed that there was not enough money to provide new equipment for everybody as the business is involved in CSI projects. 4.4.1 Identify THREE causes of conflict from the scenario above. 4.4.2 Advise the employees of Saunders Ltd on the correct procedure to deal with grievances in the workplace. 4.4.3 Explain how Saunders Ltd may promote cultural rights in the workplace. 4.4.4 Discuss the advantages of corporate social investments (CSI) for businesses. Evaluate the effectiveness of the Delphi technique in solving business challenges. (10) [60] Please Turn Over

Business Studies Downloaded from hlayiso.com September 2018 Preparatory Examination NSC QUESTION 5: BUSINESS OPERATIONS 5.1 5.2 6.3 5.4 5.5 Read the scenario below and answer the questions that follow: SMART CARS(SC) Smart Cars specialises in the trading of used cars and renders vehicle repairs services. The business is in need of a specialist in sales and repairs. The applicant must have a degree in marketing, three years’ experience in the motor industry. Applicant must be able to forecast the trend in sales. Ability to keep records and do presentation will be an advantage. The vacancy will be advertised in the local newspaper and on the internet. 5.1.1 State TWO job analysis components that SC should use when compiling the advertisement. Quote TWO examples of EACH component from the scenario above. Redraw the table below in the ANSWER BOOK to present your answers. COMPONENTS EXAMPLES A. 1. 2. B. 1. 2. (8) 5.1.2 Identify the type of recruitment that SC will use to find the suitable candidate for the vacancy. Motivate your answer by quoting from the scenario. (3) 5.1.3. Explain the role of the interviewee during the interview. (8) Distinguish between piece-meal and time-related as salary determination method. (4) Discuss THREE reasons for the termination of an employment contract. (6) Explain the difference between quality control and quality assurance. (8) Explain the importance of quality circles in Total Quality Management (TQM). (8) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination nse 5.6 Read the scenario below and answer the questions that follow: AVANTE COSMETICS (AC) Avante cosmetics sell beauty products globally. Shanon, the marketing manager regularly requests their buyers to complete a survey on their experience from using their products. Their customers were also requested to give inputs on how to improve the quality of their product and service. 5.6.1. Name the TQM element that is applicable to the scenario above. Motivate your answer by quoting from the scenario above. Use the following table as a guide to your answer. TQM ELEMENT MOTIVATION 5.6.2 Evaluate impact of the TQM element identified in QUESTION 5.6.1 on Avante Cosmetics as a large business. 5.7. Elaborate on the advantages of implementing a good quality management system for businesses. (6) [60] Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination Nee QUESTION 6: MISCELLANEOUS BUSINESS ENVIRONMENTS 6.1 6.2 List any FIVE components of the PESTLE analysis. (5) Read the statement below and answer the questions that follow. This Act creates a framework for acceptable employment practices and safety regulations. 6.2.1 |dentify the Act that is applicable to the scenario above. (2) 6.2.2 Recommend ways in which businesses can comply with the Act identified in 6.2.1. (8) BUSINESS VENTURES 6.3 6.4 6.5 Identify the type of visual aids represented by each of the following statements: 6.3.1 It enables two or more people to have a conversation at different places. 6.3.2 Businesses use this visual aid for small groups during a brainstorming session. (4) Differentiate between simple and compound interest. (4) Discuss the factors to be considered by a presenter during a presentation. (6) BUSINESS ROLES 6.6 Name FIVE components of corporate social responsibility. (5) Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination NSC 6.7. Read the scenario below and answer the questions that follow: RAMEEZ CATERING (RC) Rameez Catering has employed more women than men even though they do not have qualifications. The language to be spoken at the workplace is only English, despite the fact that most employees do not understand the language. The management of RC has also employed the physically challenged people but there are no ramps for wheelchairs. 6.7.1 Identify TWO issues of diversity from the scenario above. (2) 6.7.2. Recommend a way in which RC should deal with each of the diversity issues identified in QUESTION 6.7.1. (4) Use the table below to present your answer for 6.7.1 and 6.7.2 DIVERSITY ISSUE IDENTIFIED RECOMMENDATION 6.7.1 6.7.2 (a) (a) (by) (b) Max (2) Max (4) 6.8 | Suggest ways in which professional, responsible, ethical and effective business practices should be conducted. (4) BUSINESS OPERATIONS 6.9 Identify the business function responsible for the activity in each statement below: 6.9.1 Pearlene ensures that business documents are kept in a safe storage. (2) 6.9.2 Keown is responsible for releasing positive news about the business in the local media. (2) 6.9.3 The management of Anton’s Plant and Hire ensures that equipment and machinery are regularly maintained. (2) 6.10 Advise businesses on how total quality management (TQM) can reduce the cost of quality. (10) {60} TOTAL SECTION B: 180 Copyright Reserved Please Turn Over

Downloaded from hlayiso.com Business Studies September 2018 Preparatory Examination NSC SECTION C 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 (STRATEGIES) Businesses operate within different business environments. Each business environment has its own challenges that can impact negatively on business. Businesses must devise different strategies to address these challenges. The effectiveness of the strategies must be evaluated. Bearing the above scenario in mind, write detailed notes on the following aspects * Explain how businesses may use Porter's Five Forces Model to analyse the market environment. * Describe THREE types of defensive strategies that businesses may use to address challenges in the macro-environment. ° Discuss the effectiveness of diversification strategies in addressing business challenges. * Suggest steps that businesses may use to evaluate a strategy. [40] QUESTION 8 BUSINESS VENTURES (INSURANCE) Legislation in South Africa makes provisions of compulsory and non-compulsory insurance. Different types of insurance products are available for business. This is to provide for security and indemnity for claims. * Explain the difference between insurable and non-insurable risks. * Discuss the importance of insurance for business. * Describe THREE principles of insurance * Evaluate the impact of COIDA as a form of compulsory insurance on businesses. [40] Copyright Reserved Please Turn Over

B Downloaded from hlayiso.com usiness Studies September 2018 Preparatory Examination NSC QUESTION 9: BUSINESS ROLES (ETHICS AND PROFESSIONALISM) King Code of good corporate governance provides guidelines on how businesses should be conducted ethically. Businesses value the impact of good corporate governance on sustainable business practices. Businesses must adhere to professional, responsible and ethical business practices. They should ensure that the environment in which they operate is not polluted. Write detailed notes on the following aspects: Explain how businesses can apply the following principles: - Responsibility - Accountability - Transparency Discuss how the pricing in rural areas, sexual harassment and unauthorised use of funds pose challenges for businesses. Recommend ways in which businesses may address any TWO of the above mentioned unethical business practices. Advice ways in which businesses could protect the environment and promote human health in the workplace. [40] QUESTION 10 BUSINESS OPERATIONS (HUMAN RESOURCE FUNCTION AND QUALITY OF PERFORMANCE) PRECISION ENGINEERING LTD (PEL) PEL is a large mechanical engineering business. The management has decided to recruit and appoint a quality controller to monitor and evaluate quality processes. An induction plan is on the cards for new candidate to be appointed. The successful candidate will be required to sign an employment contract. Provide a detailed report on the following aspects: Outline the legal requirements of the employment contract that the employee and employer should sign. Elaborate on the advantages of monitoring and evaluating PEL’s quality processes as a TQM element. Advise PEL on the advantages of inducting the new candidate. Discuss the implications of the Labour Relations Act on businesses. [40] TOTAL SECTION C: 80 GRAND TOTAL: 300 Copyright Reserved