# Business Studies Grade 12 Paper 1 KZN Prelim 2020 Memo > Grade 12 Business Studies Paper 1 memorandum from the KZN Prelim 2020, 29 pages. Read online or get the free PDF download, question paper linked when available. - Page: https://www.hlayiso.com/library/2020-kzn-prelim-p1-memo/4c0e38f7-3a52-4c23-a540-58cf93cd3383 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2020 - Exam period: KZN Prelim - Paper: 1 - Curriculum: CAPS - Pages: 29 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 Paper 1 KZN Prelim 2020 Memo](https://www.hlayiso.com/library/2020-kzn-prelim-p1-memo/4c0e38f7-3a52-4c23-a540-58cf93cd3383) ## About this document Business Studies · Grade 12 · KZN Prelim · 2020. Memorandum, 29 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com cuucduoll Department: Education PROVINCE OF KWAZULU-NATAL NATIONAL SENIOR CERTIFICATE GRADE 12 Marks: 150 Time: 2 hours This marking guideline consists of 28 pages. Copyright Reserved Please Turn Over ### Page 2 Downloaded from hlayiso.com Business Studies P1 2 Preparatory Examination 2020 NSC NOTES TO MARKERS 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 (b) Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across the country (d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 1. 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 marking guideline 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 marking guideline  Comes from another credible source  Original  A different 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 and moderation purposes. 7. 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 the marking guidelines. Only the total for each question should appear in the left- hand margin next to the appropriate question number. Copyright Reserved Please Turn Over ### Page 3 Downloaded from hlayiso.com Business Studies P1 3 Preparatory Examination 2020 NSC 8. In an indirect question, the theory as well as the response must be relevant and related to the question. 9. Correct numbering of answers to questions or sub-questions is recommended in SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of the candidate's responses. Candidates will be penalised if the latter is not clear. 10. No additional credit must be given for repetition of facts. Indicate with an 'R'. 11. The differentiation between 'evaluate' and 'critically evaluate' can be explained as follows: 11.1 When 'evaluate' is used, candidates are expected to respond in either appositive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: 'COIDA eliminates time and costs spent√ on lengthy civil court proceedings.'√ 11.2 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 long as it can be proved that the business was not negligent.'√ NOTE: 1. The above could apply to 'analyse' as well. 2. Note the placing of the tick (√) in the allocation of marks. 12. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the marking guideline and the context of each question. Cognitive verbs, such as: 12.1 Advise, name, state, mention, outline, motivate, 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. 12.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, 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. 13. Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions that require one answer. Copyright Reserved Please Turn Over ### Page 4 Downloaded from hlayiso.com Business Studies P1 4 Preparatory Examination 2020 NSC 14. 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 'Cancel'. 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 the cognitive verbs and allocation of marks: 14.4.1 If the number of facts are specified, questions that require candidates to 'describe/discuss/explain' may be marked as follows:  Fact 2 marks (or as indicated in the marking guidelines)  Explanation 1 mark (two marks will be allocated in Section C) The 'fact' and 'explanation' are given separately in the marking guideline 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 marking guideline. 14.5 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 SECTIONS B and C in particular (where applicable). Copyright Reserved Please Turn Over ### Page 5 Downloaded from hlayiso.com Business Studies P1 5 Preparatory Examination 2020 NSC 15. SECTION C 15.1 The breakdown of the mark allocation for the essays is as follows: Introduction Maximum: Content 32 Conclusion Insight 8 TOTAL 40 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, a body, and a conclusion? 2 Analysis and Is the candidate able to break down the question into 2 Interpretation headings/subheadings/interpret it correctly to show understanding of what is being asked? Marks to be allocated using this guide: All headings addressed: 1 (One 'A') Interpretation (16 to 32 marks): 1 (One 'A') Synthesis Are there relevant decisions/facts/responses made based 2 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 (No '-S') Option 1: Where a candidate answers 50% or more of the question with only relevant facts; no '-S' appears in the left margin. Award the maximum of TWO (2) marks for synthesis. Option 2: Where a candidate answers less than 50% of the question with only OR some relevant facts; one '-S' appears in the left margin. Award a maximum of ONE (1) mark for synthesis. Option 3: Where a candidate answers less than 50% of the question with no relevant facts; two '-S' appear in the left margin. Award a ZERO mark for synthesis. Originality Is there evidence of examples based on recent 2 information, current trends and developments? TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY (8 + 32): 40 Copyright Reserved Please Turn Over ### Page 6 Downloaded from hlayiso.com Business Studies P1 6 Preparatory Examination 2020 NSC NOTE: 1. No marks will be awarded for contents repeated from the introduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be awarded for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. 15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O'). 15.4 The breakdown of marks is indicated at the end of the suggested answer/marking guideline to each question. 15.5 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, but continue reading for originality “O”. 15.6 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 A 2 S 2 O 2 TOTAL 40 15.7 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not make use of 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.) 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 15.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guideline. Copyright Reserved Please Turn Over ### Page 7 Downloaded from hlayiso.com Business Studies P1 7 Preparatory Examination 2020 NSC 15.10 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 (√) 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.'√ This will be informed by the nature and context of the question, as well as the cognitive verb used. 15.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guidelines, will not necessarily apply to each question. This would also depend on the nature of the question. Copyright Reserved Please Turn Over ### Page 8 Downloaded from hlayiso.com Business Studies P1 8 Preparatory Examination 2020 NSC SECTION A 1.1 MULTIPLE CHOICE 1.1.1 C 1.1.2 C 1.1.3 D 1.1.4 A 1.1.5 B (5x2) (10) 1.2 CONCEPTS 1.2.1 ownership 1.2.2 full control 1.2.3 family responsibility 1.2.4 quality 1.2.5 legal (5X2) (10) 1.3 MATCHING 1.3.1 B 1.3.2 I 1.3.3 G 1.3.4 J 1.3.5 A (5x2)(10) TOTAL SECTION A: (30) BREAKDOWN OF MARK ALLOCATION QUESTION MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Copyright Reserved Please Turn Over ### Page 9 Downloaded from hlayiso.com Business Studies P1 9 Preparatory Examination 2020 NSC SECTION B Mark only FIRST TWO answers. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Types of business environments -micro -market -macro (3) 2.2 Porters Five Forces 2.2.1 Threat / barrier of new entrants to the market (2) 2.2.2 Competitive rivalry / power of competitors (2) 2.2.3 Threat of substitution (2) 2.3 Purpose of COIDA -Provides a comprehensive protection to employees who are injured in the course of performing their duties -COIDA applies to all casual and full-time workers who become ill/ injured/disabled/ killed due to workplace accident/ disease. -It excludes workers who are guilty of willful misconduct /workers outside South Africa for at least twelve months/members of SA Defense Force/Police services . -It provides for the establishment of a Compensation Board whose function is to advise the Minister of Labour on the application /provision of COIDA -Any other relevant answer related to purpose of COIDA Max (6) 2.4 Distinction between BEE AND BBBEE BEE BBBEE -It is a government policy which may not -It is an Act that is enforced / must be be enforced . complied with by businesses . -Benefits only a few previously -Encourages a wider group of previously disadvantaged people in the economy . disadvantaged people/ black women/ people who are physically challenged/ youth/people in rural areas to participate in the economy -Few previously disadvantaged individuals -Aims to distribute the country’s wealth share in the wealth of economy . across a broader spectrum of society . -Focuses only on three pillars that did not -Focuses on five pillars which include all include all previously disadvantaged sectors of the society, especially the people previously disadvantaged -Any other relevant answer related to BEE -Any other relevant answer related to BBBEE Sub max (2) Sub max (2) Copyright Reserved Please Turn Over ### Page 10 Downloaded from hlayiso.com Business Studies P1 10 Preparatory Examination 2020 NSC MAX (4) NOTE: 1. The answer does not have to be in tabular format, but distinction must be clear. 2. Award maximum of TWO marks if distinction is not clear/ Mark either BEE or BBBEE only. 2.5 2.5.1 Employment Equity Act,1998 (Act 55 of 1998) / EEA (2) 2.5.2 Ways to comply with EEA - Business must guard against discriminatory appointments - Promote equal opportunities and equal treatment - Implement affirmation action measures to redress disadvantaged experienced by designated group - Ensure that diversity/inclusivity in the workplace is achieved. - Implement affirmative action measures to redress disadvantages experienced by designated groups - Clearly define the appointment process, so that all parties are well informed - Reasonable accommodation of people from designated groups - Prepare an employment equity plan in consultation with employees - Eliminate barriers that have an adverse impact on designated groups. - Restructure/analyse current employment policies/practices/procedures to accommodate designated groups - Ensure that there is equal representation of all racial groups in every level of employment - Submit the employment equity plan to the Department of Labour - Retain designated group, including skills development of such groups - Access the racial composition of all employees, including senior management - Use certified psychometric tests to assess applicants/ employees to ensure that suitable candidates are appointed - Regularly report to the Department of Labour on progress in implementing the plan. - Any other relevant answer related to ways of complying with EEA. Max (4) Copyright Reserved Please Turn Over ### Page 11 Downloaded from hlayiso.com Business Studies P1 11 Preparatory Examination 2020 NSC 2.6 Types of intensive business strategies Market development - A process of exploring/ finding/ searching new markets for existing products. - Targeting consumers in a potential market that is outside normal target market. - Changing the way the products are distributed to reach a different market. - Businesses sell their existing products to new markets - It is a growth strategy where businesses aim to sell its existing products in new markets - This strategy involves finding new markets and new ways to distribute product Strategy: (2) Discussion: (1) Sub max : (3) Product development - Businesses generate new ideas and develop a new product or service . - Business may improve/change packaging of current products so they look and seem different and appeal to the market - The introduction of a new product or service into existing markets .e.g. powdered soap manufacturer introduces a new powdered soap which also has a fabric softener. - It is a growth strategy which businesses aims to introduce new products into existing markets/ modifies an existing product - Businesses generate new ideas and develop new products/ services Strategy: (2) Discussion: (1) Sub max: (3) - Market penetration - Businesses 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. - Reduce prices to increase sales -New products penetrate an existing market at a low price, until it is well known to the customers and then the prices changes - It is a growth strategy where businesses focus on selling existing products to existing markets - Focuses on gaining a larger share of the market by reducing prices to increase sales / increasing advertising and promotion Strategy: (2) Discussion: (1) Sub max: (3) Max: (9) Copyright Reserved Please Turn Over ### Page 12 Downloaded from hlayiso.com Business Studies P1 12 Preparatory Examination 2020 NSC 2.7 Non-compliance 2.7.1 - additional costs to loans are not disclosed. - no credit checks are conducted before granting loans Note: 1. The quote must be from the scenario 2. Mark the first TWO ways ONLY Max: (2) 2.7.2 Effectiveness of NCA on businesses Positives/ Advantages -Lower bad debts resulting in better cash flow - Authorised credit providers may attract more customers - Protects businesses against non-paying consumers - Increases cash sales as credit can only be granted to qualifying customers - Stamps out reckless lending and prevents businesses from bankruptcy - The whole credit process is transparent , e.g. both businesses and customers know their responsibilities. - Businesses can do thorough credit checks and receive up to date documentation from the consumers as the proof they can afford the repayment - Leads to more customers through credit sales as they are now protected from abuse. - Credit bureau information is made available to businesses so that they can check the credit worthiness of consumers before granting credit - Any other relevant answer related to the positive (advantages) effectiveness of NCA on businesses. AND OR Negative/Disadvantages  Businesses can no longer carry out credit marketing.  Leads to loss of sales as many consumers may no longer qualify to buy on credit.  The paperwork and administrative process required by the act are costly and time consuming.  The business needs to appoint additional staff to deal with the extra administration.  Should the credit agreement be declared reckless the business can forfeit the outstanding debt and the goods.  Businesses that are official credit providers, must submit a compliance report every year.  A business must make sure that all attempts have been made to recover the debt before blacklisting the customer.  Debt collection procedures are more complex and expensive. Copyright Reserved Please Turn Over ### Page 13 Downloaded from hlayiso.com Business Studies P1 13 Preparatory Examination 2020 NSC  Credit providers cannot collect from consumers who are under debt reviews.  Increases the administration burden on credit providers.  More working capital is needed as businesses cannot sell many goods on credit due to stricter credit application processes.  Fewer customers buy on credit as it is more difficult to obtain credit.  Businesses struggle to get credit such as bank loans/overdrafts.  Businesses that do not comply with the NCA may face legal action .  Any other relevant answer related to the negative (disadvantages) effectiveness of NCA on businesses. Max (4) BREAKDOWN OF MARKS QUESTION MARKS 2.1 3 2.2.1 2 2.2.2 2 2.2.3 2 2.3 6 2.4 4 2.5.1 2 2.5.2 4 2.6 9 2.7.1 2 2.7.2 4 TOTAL 40 Copyright Reserved Please Turn Over ### Page 14 Downloaded from hlayiso.com Business Studies P1 14 Preparatory Examination 2020 NSC QUESTION 3 BUSINESS OPERATIONS 3.1 Fringe benefits - Car/travel/housing/cell phone/clothing allowances - Bonus - Funeral benefit - Medical aid/Health Insurance Fund - Provident Fund - Performance based incentives - Issuing of bonus shares - Staff discount/free or low/ Canteen facilities - Any other relevant answer related to the examples of fringe benefits (2) NOTE: Mark first TWO examples of fringe benefits 3.2 Reasons of terminating the employment contract 3.2.1 Retrenchment (2) 3.2.2 Resignation (2) 3.3 Salary determination methods 3.3.1 EMPLOYEE SALARY DETERMINATION METHOD Nana Piecemeal Nono Time related (2) NOTE: 1. Salary determination method must be linked to the employee. 3.3.2 Link between salary determination and the BCEA - BCEA outlines legalities such as the employment contract which may affect salary determination - Businesses are supposed to deduct income tax (PAYE) from the employees’ taxable salaries - The - BCEA sets out conditions that ensure fair labour and human resources practices - According to the BCEA, businesses may use different remuneration methods to pay their employees - Payment of salaries should be based on whether the employee is permanent or employed on a fixed contract - Any other relevant answer related to link between salary determination and the BCEA Max (8) Copyright Reserved Please Turn Over ### Page 15 Downloaded from hlayiso.com Business Studies P1 15 Preparatory Examination 2020 NSC 3.4 UIF as a benefit required by the law. - It is a fund that offers short term financial assistance to workers when they become unemployed or unable to work due to illness, maternity, adoption leave - The employer and the employee each contribute 1%, therefore 2% of the value of of the value of each employee’s salary is contributed towards the Unemployment Insurance Fund - The fund also assists the dependents of a contributing worker who has died . - Contributions are paid to the Unemployment Insurance Fund (UIF) or the South African Revenue Service - Any other relevant answer related to UIF as a compulsory form of insurance Max (6) Note: 1. Accept responses based on UIF as a compulsory insurance. 2. This applies ONLY to this 2020 preparatory paper. 3.5 BUSINESS FUNCTIONS 3.5.1 - Administration function - Financial Function (4) 3.5.2 Quality indicators Administration function - Documents are kept neatly and orderly in a safe place - Financial documents are kept up to date and recorded accurately - Handle complaints quickly and effectively - Easy to recall/find information/documentation - Use modern technology effectively - Make relevant information available for quick decision making - Fast and reliable information available to management on time - Make reliable information available to management - Quality assurance/control/ evaluation is recorded accurately - Implement effective risk management policies to minimize business losses - All systems and processes are documented - Any other relevant answer related to quality indicators of the administration function Max (4) OR Copyright Reserved Please Turn Over ### Page 16 Downloaded from hlayiso.com Business Studies P1 16 Preparatory Examination 2020 NSC Financial function - Draw up budgets to ensure sufficient application of monetary resources - Keep financial records up to date to ensure timely/accurate tax payments - Analyse strategies to increase profitability - Accurately analyse and interpret financial information. - Implement credit granting / debt collecting policies to monitor cash flow - Invest surplus funds to create sources of passive income - Draw up accurate financial statements timeously/regularly - Obtain capital from the most reliable /suitable/available sources -Negotiate better interest rates in order to keep financial cost down . - Implement financial control measures/ systems to prevent fraud - Invest in strategies that will assist the business to remain profitable - Avoid over / under capitalisation so that financial resources will be used effectively - Any other relevant answer related to quality indicators of financial function Max (4) NOTE: 1. Award marks for quality indicators of the administration function OR the financial function. 3.6 Application of PDCA cycle Plan  Develop a plan for improvement to processes and systems  Plan the method and approach  The business should identify the problem  Answer questions such as ‘what to do’ and ‘how to do it’ Name: (1) Discussion: (1) Sub Max: (2) Do  Implement the processes and systems  The business should implement the change on a small scale  Put plan into action Name: (1) Discussion: (1) Sub Max : (2) Copyright Reserved Please Turn Over ### Page 17 Downloaded from hlayiso.com Business Studies P1 17 Preparatory Examination 2020 NSC Check  Check whether plan is working effectively  Use data to analyse the results of change  Businesses should assess, plan and establish if it is working things are going accordingly  Determine whether it made difference. Name: (1) Discussion: (1) Sub Max : (2) Act  Continuously revise the process  Devise strategies on how to continually improve  Institutionalise the improvement  Take corrective actions, if there are deviations  If change was successful, implement it on a wider scale Name: (1) Discussion: (1) Sub Max : (2) Max (8) 3.7 Impact of adequate financing and capacity on large business Positive impact - Large businesses can afford to purchase quality raw material and equipment - It can afford product research / market research to gather information - Large businesses have sufficient financing to test everything before implementing - They can afford to have systems in place to prevent errors in process/defects raw material/products - Any other relevant answer related to positive impact of adequate financing and capacity on large businesses Copyright Reserved Please Turn Over ### Page 18 Downloaded from hlayiso.com Business Studies P1 18 Preparatory Examination 2020 NSC AND/OR Negative impact - If business grows it may demand large amount of capital to balance to balance normal operations and expansions - If the demand for company’s product increases, orders begin coming in faster than expected , and the company lacks the capital required to fund the production of the stock to fill the orders. - Any other relevant answer related negative impact of adequate financing and capacity. Max (4) BREAKDOWN MARK ALLOCATION QUESTION MARKS 3.1 2 3.2.1 2 3.2.2 2 3.3.1 2 3.3.2 6 3.4 6 3.5.1 4 3.5.2 4 3.6 8 3.7 4 TOTAL 40 QUESTION 4 MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Industrial analysis tools - SWOT analysis - Porters Five Forces model - PESTLE model (3X1) (3) Note: Mark the first THREE industrial tools only. Copyright Reserved Please Turn Over ### Page 19 Downloaded from hlayiso.com Business Studies P1 19 Preparatory Examination 2020 NSC 4.2 Employer and employees’ rights Identification of right Quote from the scenario Employee -Right to embark on a legal -employees at GTS are refusing to work as strike as a remedy for their demands regarding salary increase grievances and improving working conditions have not been met . Employer -Right to lockout employees -GTS management has denied them who engage in labour access to business premises whilst dispute action. was being resolved. Sub max (4) Sub max (2) (6) NOTE: 1. Right must be linked to the employee/ employer. 2. The quote must be linked to the right. 4.3 Consumers rights according to NCA Consumers have the right to: - Apply for credit without discrimination - Obtain reasons if credit application was declined - Fair and responsible marketing - Receive information in plain and understandable language - Choose which goods they will buy and return such goods if they are not satisfied - Receive documents as required by the Act - Access and challenge credit records and information - Receive pre-agreement documentation before concluding any credit transaction - Any other relevant answer related to consumer rights according NCA Max (8) 4.4 Strategy evaluation - Examine the underlying basis of a business strategy - Look forward and backwards into the implementation process - Compare expected performance with actual performance - Measure business performance in order to determine the reasons for deviation and analyse these reasons - Take corrective action so that deviations may be corrected - Set specific dates for control and follow up . - Draw up table of the advantages and disadvantages of a strategy . - Decide on the desired outcome . - Consider the impact of the strategic implementation in the internal and external environments of the business - Any other relevant answer related to the steps in evaluating a strategy. Max (4) Copyright Reserved Please Turn Over ### Page 20 Downloaded from hlayiso.com Business Studies P1 20 Preparatory Examination 2020 NSC BUSINESS OPERATIONS 4.5 Aspects in an employment contract - Job title/ position - Job description, e.g. duties/ working conditions - Personal details of the employee - Details of the business/employer , e.g. name/address, etc. - Date of employment/ commencement of employment - Place where employee will spend most of his/her working time - Benefits/fringe benefits/ perks/allowances probation period - Signature of both the employer and employee - Employee deductions (compulsory /non-compulsory) - Leave, e.g. sick/maternity/ annual/ adoption leave - Period of contract/ details of termination . - Hours of work, e.g. normal time/ overtime . - Remuneration, e.g. weekly/ monthly pay - Any other relevant answer related to contents of employment (3X1) (3) Note: Mark the first THREE aspects only TYPE OF RECRUITMENT 4.6.1 Identification -External recruitment (2) 4. 6.2 Negative impact - Information on CV may not be reliable - Recruitment process takes longer / is more expensive as background checks must be conducted - New candidates generally take longer to adjust to a new work environment - Any unsuitable applications can slow down the selection process - The selection process may not be effective and incompetent candidate may be chosen - External sources can be expensive , e.g. recruitment agencies’ fees/ in newspaper/ may be expensive - In service training may be needed which decreases productivity during the time of training - Any other relevant answer related to negative impact of external recruitment Max (8) Copyright Reserved Please Turn Over ### Page 21 Downloaded from hlayiso.com Business Studies P1 21 Preparatory Examination 2020 NSC 4.7 HOW TQM CAN REDUCE THE COST OF QUALITY - Schedule activities to eliminate duplication of tasks - Train employees at all levels, so that everyone understands their roles quality - Introduce quality circles to discuss ways of improving the quality of work/ workmanship - Share responsibility for quality output amongst management and workers - Work closely with suppliers to improve the quality of raw materials/ output - Improve communication about quality challenges/ deviations, so that everyone can learn from experience. - Reduce investment on expensive, but ineffective inspection procedures in the production process . - Service machineries regularly to avoid delays in production and processes - Any other relevant answer related to ways of reducing cost of quality Max (6) BREAKDOWN MARK ALLOCATION QUESTION 4 MARKS 4.1 3 4.2.1 6 4.3 8 4.4 4 4.5 3 4.6.1 2 4.6.2 8 4.7 6 TOTAL 40 TOTAL SECTION B (80) Copyright Reserved Please Turn Over ### Page 22 Downloaded from hlayiso.com Business Studies P1 22 Preparatory Examination 2020 NSC SECTION C Note: Mark the FIRST question only. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) 5.1. Introduction - The Skill Development Act 97 of 1998(SDA) is one of recent legislation was developed in response to the demand to redress and equity. - SDA gives the right to workers who have had little or no formal education to acquire skills and training in the workplace . - The workplace must be viewed as an active learning environment in which skills can be gained through formal training programmes and practical experience - The National Skills Development Strategy a comprehensive framework for skills improvement that includes government, organized business and organized labour - Any other relevant introduction related to purpose / differences between NSDS and HRDS/ impact and ways to comply with SDA (Any 2x1) (2) 5.2 Purpose of SDA -To develop skills of people of South Africa in order to improve productivity -To improve chances of getting a job for previously disadvantaged -To redress the disadvantages through education and training -To encourage businesses to improve the skills of their workers . -To get businesses to invest in education and training of workers -To encourage workers to participate in learnership and training programmes in order to become more skilled in the workplace -To ensure quality education that is globally competitive -Any other relevant answer related to purpose of SDA Max (8) Copyright Reserved Please Turn Over ### Page 23 Downloaded from hlayiso.com Business Studies P1 23 Preparatory Examination 2020 NSC 5.3 Differentiation between National Skills Development Strategy (NSDS) and Human Resource Development Strategy (HRDS) National Skills Development Strategy Human Resources Development Strategy -Builds/ Provide career/vocational guidance/ - Increases employee participation in training centers lifelong learning. -Increases / improves access to training -Improves supply of skills programmes -Improves social development through -Promotes social development/social justice economic development and helps to alleviate poverty -Indicates how Sector Education and Training - Develops short term and long term Authorities (SETAs) should use the money workforce skills. allocated from the Skills Development Levy. -Provides for participation of government, -Aims at achieving faster economic growth/ organized business and labour. higher employment levels of poverty. -Encourages good quality training in the -Addresses skills shortages in South African workplace to ensure on-going development of workforce. skills. -Any other relevant answer related to NSDS -Any other relevant answer related to HRDS Sub Max 6 Sub Max 6 Max (12) NOTE: 1. Answers need not be in a tabular format but the distinction must be clear. 2. Do not award full marks if distinction is not clear, mark either NSDS or HRDS. 5.4 Impact of SDA on businesses Positive impact - Promotes self-employment and black entrepreneurship - Business could become globally more competitive - Workplace discrimination can be addressed through training - Increases the number of skilled employees in areas where these skills are scarce - Trains employees to improve in the workplace - Encourages on-going skills development and learning to sustain the improvement of skills development - Improves employment opportunities and labour movement of workers from previously disadvantaged group - Increases the return on investment in education and training - Workplace is used as an active environment where employees can gain practical job experience - BBBEE-compliant businesses can improve their products / service delivery as they employ more skilled workers . - Any other relevant answer related to positive impact of SDA on businesses Copyright Reserved Please Turn Over ### Page 24 Downloaded from hlayiso.com Business Studies P1 24 Preparatory Examination 2020 NSC AND/OR Negative impact -Implementation of the Act can be difficult to monitor and control l. -The time and money spent on improving employee skills is wasted if they leave the business -Skills programme may not always address training needs of employees -Skills development levy could be an extra financial burden to financially struggling businesses -The process increases administration cost and volume of paperwork -Many providers that are offering the training services are not SAQA accredited -It is costly for the business to employ skills development facilitator -Some businesses may not support this government initiative . -Business time may be wasted when employees are attending learnerships could affect the production process/ productivity . -Government departments monitoring and controlling SDA may not have education and training as their priority -Any other relevant answer related to negative impact of SDA on businesses Max (16) 5.5 Ways to comply with SDA - Businesses with more than 50 employees must appoint skills development facilitator - Business that has a payroll of R500 000 or more should contribute 1% towards skills development - Business that collects PAYE should register with SARS in the area in which their business is classified (in terms of the SETA) - Assess the skills of employees to determine areas in which skills development are needed provide all employees with the opportunity to improve their skills - Businesses should register with relevant SETAs - Business should submit a workplace skills plan and provide evidence that it was implemented - Encourage employees to participate in learnerships and other training programmes - Any other relevant answer related to the ways in which businesses comply with the SDA. Max (10) Copyright Reserved Please Turn Over ### Page 25 Downloaded from hlayiso.com Business Studies P1 25 Preparatory Examination 2020 NSC 5.6 Conclusion - Companies must pay skills development levy to offer learnership programmes/ claim grants - Businesses that encourage their workers to participate in learnership and training programme, entitles them to tax concessions - Businesses may claim a learnership for incentive payment for employing workers who find it difficult to be employed due to lack of skill - NSDS encourages good quality training in the workplace to ensure on-going development of skills . - Any other relevant conclusion related SDA. (Any 1X2) (2) QUESTION 5 BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM Introduction 2 Purpose of Skills Development Act 8 National Skills Development Strategy Human 12 and Resource Development Strategy MAX Impact of Skills Development Act 16 32 Ways to comply with Skills Development Act 10 Conclusion 2 INSIGHT Layout 2 8 Analysis, interpretation 2 Synthesis 2 Originality, examples 2 TOTAL 40 LASO- For each component Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 1 mark 0 where requirements are not met at all. Copyright Reserved Please Turn Over ### Page 26 Downloaded from hlayiso.com Business Studies P1 26 Preparatory Examination 2020 NSC QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES FUNCTION AND QUALITY OF PERFORMANCE) 6.1 Introduction - Businesses follow different selection procedures depending on the type of job advertised, the size of the business and their internal human resource processes - Businesses should provide ongoing support to new employees to ensure that they settle as quickly as possible to be productive -Government have put certain policies to ensure that labour practices and human resources practices are fair and equitable. - It is essential to instill a value of quality in the business that all employees uphold - Any other relevant introduction related to the selection procedure / benefits of induction program / implications of EEA on human resources function and quality indicators of the human resources function. (Any 2 X1) (2) 6.2 Selection procedure Option 1 - Determine fair assessment criteria on which selection will be based - Applicants must submit the application forms /curriculum vitae and certified copies of personal documents /IDs /proof of qualifications, etc. - Sort the received documents/ CVs according to the assessment / selection criteria - Screen/ Determine which applications meet the minimum job requirements and separate these from the rest - Preliminary interviews are conducted if many suitable applications received - Reference checks should be made to verify the contents of CV’s, e.g. contact previous employers to check work experience - Compile shortlist of potential candidates identified - Shortlisted candidates may be subjected to various types of selection tests e.g. skills tests, etc. - Invite shortlisted candidates for an interview - A written offer is made to the selected candidate - Inform unsuccessful applicants about the outcome of their application / some adverts indicate the deadline for informing only successful candidates - Any other relevant answer related to the selection procedure NOTE: The procedure can be in any order Copyright Reserved Please Turn Over ### Page 27 Downloaded from hlayiso.com Business Studies P1 27 Preparatory Examination 2020 NSC Option 2 - Receive documentation, e.g. application forms and sort it according to the criteria of the job - Evaluate CVs and create a shortlist/ screen the applicants - Check information in the CVs and contact references - Conduct preliminary sifting interviews to identify applicants who are not suitable for the job, although they meet all the requirements - Assess /Test candidates who have applied for senior positions / ensure the best candidate is chosen - Conduct interviews with sorted shortlisted candidates - Offer employment in writing to the selected candidates - Any other relevant answer related to the selection procedure Max (10) NOTE: The procedure may be in any order 6.3 Benefits of induction to businesses - New employee may establish relationship with fellow employees at different levels - Make new employees feel at ease in the workplace , which reduces anxiety/ fear/insecurity - Increases quality of performance/productivity - Minimises the need for ongoing training and development - Allows employees to settle in quickly and work effectively - Employees will be familiar with organizational structures e.g. supervisors departmental managers, etc. - Ensures new employees understand rules and restrictions in the business - New employees may feel part of the team resulting in positive morale and motivation - New employees will understand their roles / responsibilities concerning safety regulations and rules - New employee will know the layout of the building /factory/ offices/where everything is which saves production time - Any other relevant answer related to benefits induction to businesses Max (12) Copyright Reserved Please Turn Over Text truncated here. 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