# Business Studies Grade 12 Paper 1 MP Prelim 2022 Memo

> Grade 12 Business Studies Paper 1 memorandum from the MP Prelim 2022, 31 pages. Read online or get the free PDF download, question paper linked when available.

- Page: https://www.hlayiso.com/library/2022-mp-prelim-p1-memo/e718736c-23b3-485f-8b8c-77127f7dc628
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Memorandum
- Year: 2022
- Exam period: MP Prelim
- Paper: 1
- Curriculum: CAPS
- Pages: 31

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Business Studies · Grade 12 · MP Prelim · 2022. Memorandum, 31 pages. Read online or download the PDF.

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                                     NATIONAL
                                SENIOR CERTIFICATE

                                        GRADE 12

                                BUSINESS STUDIES P1

                                   SEPTEMBER 2022

                                 MARKING GUIDELINE

   MARKS: 150

                     This marking guidelines consist of 31 pages.

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        Business Studies/P1                         2                              MDE/September 2022
                                            NSC- Marking Guideline

   NOTES TO MARKERS

   1.      Candidates' responses must be in full sentences for SECTIONS B and C. However,
           this would depend on the nature of the question.

   2.      Comprehensive marking guidelines have 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 source
           -   Is original
           -   A different approach issued

           NOTE: There is only ONE correct answer in SECTION A.

   3.      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.

   4.      The word 'Submax' is used to facilitate the allocation of marks within a question or
           sub-question.

   5.      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 purpose.

   6.      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
           guideline. Only the total for each question should appear in the left-hand margin next
           to the appropriate question numbers.

   7.      In an indirect question, the theory as well as the response must be relevant and
           related to the question.

   8.      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.

   9.      No additional credit must be given for repetition of facts. Indicate with an R.

   10. 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.)

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      Business Studies/P1                             3                                MDE/September 2022
                                              NSC- Marking Guideline

   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 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.'√

          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 guidelines 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       Describe, explain, discuss, elaborate, compare, distinguish, differentiate,
                     justify, devise, 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.

   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 only applies 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 to come up with alternative answers.
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       Business Studies/P1                            4                            MDE/September 2022
                                              NSC- Marking Guideline
 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 guideline)
                         • Explanation 1mark
                     The 'fact' and 'explanation' are given separately in the marking guidelines
                     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 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.
 15.     SECTION C

 15.1 The breakdown of the mark allocation for the essays is as follows:
              Introduction
              Content                                   Maximum: 32
              Conclusion
              Insight                                          8
              TOTAL                                            40

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                                        NSC- Marking Guideline

15.2 Insight consists of the following components:
        Layout/Structure          Is there an introduction, body, proper paragraphs and a        2
                                 conclusion?
        Analysis and              Is the candidate able to break down the question into
        interpretation            headings/subheadings/interpret it correctly to show
                                  understanding of what is being asked?                          2
        Synthesis                 Are there relevant decisions/facts/responses made              2
                                 based on the questions?

                                  Option 1:     Only relevant facts: 2 marks (No'-S')
                                                Where a candidate answers 50% or
                                                more (two to four sub-questions) 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      Some relevant facts: 1 mark (One '-S')
                                                Where a candidate answers less than
                                                50% (only one sub-question) 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:    Some relevant facts: 1 mark (One '-S')
                                                Where a candidate writes FOUR sub-
                                                questions, but one/two/three sub-
                                                question with irrelevant facts; one '-S'
                                                appears in the left margin. Award a
                                                maximum of ONE (1) mark for
                                                synthesis..
                                  Option 4:     No relevant facts: 0 mark (Two '-S')
                                                Where a candidate answers less than
                                                50% (only one sub-question) of the
                                                questions with no relevant facts; two '-S'
                                                appears in the left margin. Award a
                                                ZERO mark synthesis.
         Originality              Is there evidence of one or two examples, not older than
                                  two (2) years, that are based on recent information,           2
                                  current trends and developments?
                                                                         TOTALFORINSIGHT:         8
                                                                 TOTAL MARKS FORFACTS:           32
                                                         TOTAL MARKS FOR ESSAY (8 +32)           40
         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.

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      Business Studies/P1                          6                              MDE/September 2022
                                           NSC- Marking Guideline

         3.     No marks will be allocated 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 guidelines to each question.
                15.5    Mark all relevant facts until the SUBMAX/MAX mark in a subsection
                        has been attained. Write SUBMAX/MAX after maximum marks have
                        been obtained.
                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 sub-headings are encouraged and contribute to
                        insight (structuring/logical flow/sequencing) and indicate clarity of thought.
                        (See MARKS 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
                        memorandum.
                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 memo, will not necessarily apply to each
                        question. This would also depend on the nature of the question.
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SECTION A (COMPULSORY)

QUESTION 1

1.1
      1.1.1   A√√
      1.1.2   D√√
      1.1.3   C√√
      1.1.4   D√√
      1.1.5   A√√

                                                                        (5×2)     (10)
1.2
      1.2.1   National Credit Act√√
      1.2.2   retrenched√√
      1.2.3   selection√√
      1.2.4   continuous improvement to processes and systems √√
      1.2.5   threat√√

                                                                        (5x2)      (10)
      1.3.1   J√√
      1.3.2   G√√
      1.3.3   I√√
      1.3.4   A√√
      1.3.5   C√√
                                                                        (5x2)       (10)

                                                             TOTAL SECTION A        (30)
                                                       BREAKDOWN OF MARKS
                                                      QUESTION 1    MARKS
                                                         1.1         10
                                                         1.2         10
                                                         1.3         10
                                                          TOTAL      30

 SECTION B

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                                        NSC-Marking Guidelines

QUESTION 2: BUSINESS ENVIRONMENTS

2.1 Intensive strategies
        - Market penetration. √
        - Market development √
        - Product development√
    NOTE: Mark the first THREE (3) only
                                                                                          (3)
                                                                             (3x1)

2.2 The role of SETAs in supporting the Skills Development Act
      - Report to the Director General. √√
      - Promote and establishes learnerships. √√
      - Collect levies and pays out grants as required.√√
      - Provide accreditation for skills development facilitators. √√
      - Register learnership agreements/learning programmes. √√
      - Approve workplace skills plans and annual training reports√√
      - Monitor/Evaluate the actual training by service providers.√√
      - Allocate grants to employers, education and training providers. √√
      - Oversee training in different sectors of the South African economy. √√
      - Develop skills plans in line with the National Skills Development Strategy√√
      - Draw up skills development plans for their specific economic sectors. √√
      - Provide training material/programmes for skills development facilitators.√√
      - Pay out grants to companies that are complying with the requirements of
          the Skills Development Act. √√
      - Promote learnerships and learning programmes by identifying suitable
          workplaces for practical work experience.√√
      - Any other relevant answer relating to the role of SETAs in supporting the
          Skills Development Act (SDA.

                                                                                Max       (6)

2.3 Porter’s Five Forces model from statements
    2.3.1 Power of competitors/Competitive rivalry√√

     2.3.2    Threat of substitution/substitutes√√

     2.3.3    Power of buyers√√                                                            (6)

2.4 Penalties of no-compliance with the Skills Development Act
      - Businesses that do not pay the Skills Development Levy√ may not offer
          learnerships/claim grants from the SDA. √
      - A labour inspector could order the business to stop operating√ should the
          business be found guilty of illegal practices. √
      - Businesses will be fined√ if they fail to comply with the SDA. √
      - Any other relevant answer related to penalties of no-compliance to the

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                                      NSC-Marking Guidelines

            Skills Development Act.
                                                                                 Max         (4)

2.5 Diversification strategy from the scenario
    2.5.1 Horizontal diversification√√                                                       (2)
            Motivation
            VCM decided to combine with Bargain Bed Manufacturers to include a
            new product line. √                                                              (1)
            NOTE: Do not award marks for the motivation if the type of strategy
            was incorrectly identified.

    2.5.2    Advantages of diversification strategies
               - Increase sales√ and business growth. √
               - Improves the business brand √and image√.
               - Reduces the risk √of relying only on one product. √
               - More products can be sold √to existing customer and additional
                  more new markets can be established. √
               - Businesses gain more technological capabilities√ through product
                  modification. √
               - Diversification into a number of industries or product line√ can help
                  create a balance during economic fluctuations. √
               - Business produces more output√ using less inputs as one factory
                  may be used to manufacture more products. √
               - Any other relevant answer related to advantages of diversification
                  strategies.
                                                                                  Max        (4)

2.6 Challenges posed by PESTLE factors to businesses
    2.6.1 Economic factors
                -   High inflation/Interest rate may decrease the market share of
                    business√ as customers cannot afford high prices/Increase in
                    taxes will result in lower customer spending√
                -   Loans may be expensive √ due to high interest rates. √
                -   Fluctuations in foreign currency √ may restrict import. √
                -   Any other relevant answer related to how the economic factor pose
                    a challenge to businesses

                                                                                Max          (4)

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                                      NSC-Marking Guidelines

    2.6.2    Environmental factors
                -   Chemicals/Ingredients in business’ products√ may be harmful to
                    customers√
                -   Measures to dispose of business waste√ may be expensive. √
                -   Packaging of some products √may not be environmentally friendly
                    may not be recyclable. √
                -    Any other relevant answer related to how the environment factor
                    as a PESTLE factor pose a challenge to businesses.                     (4)
                                                                                 Max

2.7 Ways in which businesses can comply with Basic Conditions of
    Employment Act.
      - Workers should only work 9 hours per day in a 5 day work week. /8 hours
         per day in a 6 day work week./Overtime should not exceed 10 hours per
         week.√√
      - Workers can take up to six weeks paid sick leave during a 36-month
         cycle√√
      - Workers must receive double if they work during public holidays/Sunday√√
      - They must have a break of 60 minutes after five hours of work√√
      - Businesses should not employ children under the age of 16.√√
      - Any other relevant answer related to ways in which businesses can comply
         with Basic Conditions of Employment Act.
                                                                             Max            (6)
                                                                                           [40]

    BREADOWN OF MARK ALLOCATION
                                               QUESTION        MARKS
                                                   2.1                 3
                                                   2.2                 6
                                                   2.3                 6
                                                   2.4                 4
                                                  2.5.1                3
                                                  2.5.2                4
                                                  2.6.1                4
                                                  2.6.2                4
                                                   2.7                 6
                                               TOTAL                  40

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                                           NSC-Marking Guidelines

QUESTION 3: BUSINESS OPERATIONS
3.1 Examples of fringe benefits
      - Pension fund√
      - Medical Aid√
      - Provident fund√
      - Funeral benefits√
      - Car/Travel/Housing/Cell phone/Clothing allowance√
      - Performance based incentives√
      - Issuing of bonus shares√
      - Staff discount/Free or low-cost meal/Canteen facilities√
      - Any other relevant answer related to examples of fringe benefits.
    NOTE: Mark the first TWO (2) only
                                                                                            (2x1)        (2)
3.2    Role of the interviewee during the interview
          - Greet the interviewer by name with a solid handshake and a friendly
             smile.√√
          - Listen carefully to the questions before responding. √√
          - Make eye contact and have good posture/body language. √√
          - Show confidence and have a positive attitude/be assertive. √√
          - Be inquisitive and show interest in the business. √√
          - Ask clarity seeking√ questions.√√
          - Show respect and treat the interview with its due importance.√√
          - Be honest about mistakes and explain how you dealt with it.√√
          - Know your strengths and weaknesses and be prepared to discuss
             it√√
          - Thank the interviewer for the opportunity given to be part of the
             interviews. √√
          - Any other relevant answer related to the role of the interviewee during
             the interview
                                                                                             Max         (6)
3.3 Recruitment method from the scenario                                                                 (2)
      3.3.1   Internal recruitment√√

      3.3.2   Advantages of Internal recruitment
                - Cheaper/Quicker √to fill the post. √
                - Provides opportunities for career paths√ within the business. √
                - Reduces the chances of losing employees√, as future career prospects
                   are available √
                - Placement is easy√, as management knows the employees'
                   skills/personality/ experience/strengths. √
                - The employee already has an understanding of how the business

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                                         NSC-Marking Guidelines

                  operates. /√ Induction/Training is not always necessary. √
              -   Detailed, reliable information can be obtained√ from the supervisors/
                  Employee records. √
              -   Any other relevant answer related to the advantages of internal
                  recruitment.
                                                                                          Max         (4)
3.4       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 were
                received.√√
            - Reference checks should be made√ to verify the contents of CV's, e.g.
                contact previous employers to check work experience. √
            - Compile a 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.√
                                                 OR
          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
                  requirements.√
              -   Assess/Test candidates who have applied for senior positions√/to ensure
                  the best candidate is chosen. √
              -   Conduct interviews√ with shortlisted candidates. √
              -    Offer employment in writing √ to the selected candidate(s).√
              -   Any other relevant answer related to the selection procedure.
                                                                                          Max        (6)

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                                            NSC-Marking Guidelines

3.5 Differences between quality management and quality performance
     Quality management                    Quality performance
    - Techniques/tools used to design/     - Total performance of each
        improve the quality of a product√√    department measured against√ the
                                              specified standards√√
    - Can be used for accountability       - Can be obtained if all departments
        within each of the business           work together towards the same
        functions √√                          quality standards √√

      - Aims to ensure that the quality of - Quality is measured through
        goods/ services are consistent/       physical product/ statistical output of
        focuses on the means to achieve       processes/ surveys of the users
        consistency√√                         and/ or buyers of goods/ services√√
      - Any other relevant answer related - Any other relevant answer related to
        to quality management                 quality performance
                               Submax (2)                                Submax (2)
      NOTE: 1. The answer does not have to be in tabular format.
            2. The difference does not have to link, but must be clear
            3. Award a maximum of TWO (2) marks if the difference is not clear/Mark
               either quality management or quality performance only.

                                                                                        Max         (4)
3.6
            BUSINESS FUNCTIONS                               MOTIVATIONS
      1 Purchasing√√                           ZM ensures that there is no interruption in
                                               production due to stock shortages. √
      2 Public relations√√                     They also handle complaints quickly and
                                               effectively√.
                                    Submax (4)                                  Submax (2)

               NOTE:       1 Mark the first TWO (2) only.

                           2 Award marks for the business functions even if the
                             motivations were incomplete.
                           3 Do not award marks for the motivations if the business
                             functions were incorrectly identified.
                                                                                        Max         (6)

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3.7 Quality indicators of the financial function
      - Obtain capital from the most suitable√/available/reliable sources. √
      - Negotiate better interest rates√ in order to keep financial cost down. √
      - 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. √
      - Invest surplus funds√ to create sources of passive income. √
      - Implement financial control measures√/systems to prevent fraud.√
      - Implement credit granting√/debt collecting policies to monitor cash flow. √
      - Draw up accurate financial statements√ timeously/regularly. √
      - Accurately analyse and interpret√ financial information. √
      - Invest in strategies that will assist the business √ to remain profitable. √
      - Avoid over/under-capitalisation √ so that financial resources will be utilised
          effectively√.
      - Any other relevant answer related to quality indicators of the financial function.
                                                                                         Max        (4)
3.8 Benefits of a good quality management system
       - Effective customer services are rendered, resulting in increased customer
           satisfaction. √√
       - Time and resources are used efficiently. √√
       - Productivity increases through proper time management/using high quality
           resources. √√
       - Products/Services are constantly improved resulting in increased levels of
           customer satisfaction. √√
       - Vision/Mission/Business goals may be achieved. √√
       - Business has a competitive advantage √over its competitors.√√
       - Regular training will continuously improve the quality√ of employees' skills/
           knowledge.√√
       - Employers and employees will have a healthy working relationship√ resulting in
           happy/productive workers.√√
       - Increased market share√/more customers improve profitability. √√
       - Improves business image√ as there are less defects/returns. √
       - Any other relevant answer related to benefits of a good quality management
           system
                                                                                       Max           (6)
                                                                                                    [40]

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                                  NSC-Marking Guidelines

  BREAKDOWN OF MARKS
                                                      QUESTION      MARKS
                                                            3.1          2
                                                            3.2          6
                                                           3.3.1         2
                                                           3.3.2         4
                                                            3.4          6
                                                            3.5          4
                                                            3.6          6
                                                            3.7          4
                                                            3.8          6
                                                           TOTAL         40

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS
4.1      Consumer rights as stipulated in the Consumer Protection Act/CPA
       - Right to choose√
       - Right to privacy√
       - Right to fair and honest dealings√
       - Right to disclosure and information√
       - Right to fair and responsible marketing√
       - Right to fair value/good quality and safety√
       - Right to accountability by suppliers√
       - Right to fair, just and reasonable terms and conditions√
       - Right to equality in the consumer market√
         NOTE:1. Mark the first THREE (3) only                       (3x1)                (3)
               2. Only award marks for the consumer rights as mentioned above

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                                           NSC-Marking Guidelines

4.2         Challenges and business environments from the scenario

                      CHALLENGES                       BUSINESS           EXTENT OF
                         4.2.1                         ENVIRONMENT         CONTROL
                                                       S                     4.2.3
                                                            4.2.2
       Bil Restaurant experienced a decline in         Macro√          No control√
       profitability because of load shedding.√
       The business income could not cover        Micro√               Full control√
       salary expenses for two months.√
       Many clients are visiting Buya Restaurant Market√               Partial/Some/
       on the same building as they are not                            Limited/Less/Little
       affected by load shedding. √                                    control√
                                       Submax (3)       Submax (3)             Submax (3)

               NOTE: 1.          Mark the first TWO (2) only.
                     2.          The answer does not have to be in tabular format.
                     3.          Award marks for the business environments even if the extent of
                                 control was not indicated/incorrect.
                            4.   The extent of control must be linked to the business
                                 environment.
                            5.   Do not award marks for the extent of control if the business
                                 environment is not mentioned.
                            6    Responses can be in any order.
                                                                                        Max   (9)

4.3   Actions regarded as non-compliance by the Employment Equity Act
         - Not employing a young woman√ because she would want to have children in
            future. √
         - Refusing to employ a person√ because he/she has strong religious
            beliefs/has a disability√
         - Doing HIV testing√ unless justified by the Labour Court. √
         - Denying people access to the workforce√ based on gender/race/culture/etc.
            and treating them unfairly. √
         - Any other relevant answer related to the actions regarded as non-compliance
            by the Employment Equity Act.
                                                                                   Max             (4)

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                                       NSC-Marking Guidelines

4.4   Steps in strategy evaluation
         - Examine the underlying basis of a business strategy. √√
         - Look forward and backwards into the implementation process. √√
         - Compare the expected results in order to determine the reasons for
            deviations and analyse these reasons. √√
         - Take corrective action so that deviations may be corrected. √√
         - Set specific dates for control and follow up. √√
         - Draw up a 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 strategy evaluation.
                                                                                      Max         (4)
      BUSINESS OPERATIONS

4.5   Aspects that must be included in an employment contract
        - Personal details of the employee. √
        - Details of the business/employer e.g. name/address, etc. √
        - Job title/Position√
        - Job description e.g. duties/ working conditions √
        - Job specification e.g. formal qualifications/willingness to travel. √
        - Date of employment/commencement of employment. √
        - Place where employee will spend most of his/her working time√.
        - Hours of work, e.g. normal time/overtime. √
        - Remuneration, e.g. weekly or monthly pay. √
        - Benefits/Fringe benefits/Perks/Allowances. √
        - Leave, e.g. sick/maternity/annual/adoption leave. √
        - Employee deductions (compulsory/non-compulsory).
        - Period of contract/Details of termination. √
        - Probation period. √
        - Signatures of both the employer and employee. √
        - List of documents that form part of the contract, e.g. appointment letter/code
           of conduct/ethics. √
        - Disciplinary policy, e.g. rules and disciplinary procedure for unacceptable
           behaviour√
        - Any other relevant answer related to the aspects of an employment contract.
      NOTE: Mark the first TWO(2) only.                                             (2x1)         (2)

4.6   The purpose of an interview
        - To determine a candidate's suitability for the job. √√
        - Obtains information about the strengths and weaknesses of each candidate.
        - Evaluate the skills and personal characteristics√ of the applicant√√
        - Helps the employer in choosing/making an informed decision about the most
            suitable candidate.√√
        - Matches information provided by the applicant to the job requirements.√√

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                                       NSC-Marking Guidelines

         -   Creates an opportunity where information about the business and applicant
             can be exchanged√√
         -   Any other relevant answer related to the purpose of an interview
                                                                                    Max          (4)

4.7   Distinction between piecemeal and time related salary determination methods
                       PIECEMEAL                             TIME-RELATED
      - Workers are paid according to the         - Workers are paid for the amount of
          number of items√/units                    time they spend √at work/on a task.
          produced/action performed√                √
      - Workers are not remunerated for the - Workers with the same
          number of hours worked√,                  experience/qualifications are paid on
          regardless of how long it takes them      salary scales regardless√ of the
          to make the items√                        amount of work done. √
      - Mostly used in factories√ particularly - Many private and public sector
          in the textile/technology industries. √   businesses √ use this method√
      - Any other relevant answer related to - Any other relevant answer related to
          piecemeal.                                time-related.
                                      Submax (2)                              Submax (2)
      NOTE: 1. The answer does not have to be in a tabular format
               2. The distinction does not have to link, but must be clear
               3. Award a maximum of (4) marks if the distinction is not clear/ Mark
                  either Piecemeal or Time-related only
                                                                                      Max         (4)
4.8   TQM elements from the scenario
4.8
                TQM ELEMENTS                              MOTIVATIONS
       1 Adequate financing and capacity√√    GP has sufficient financing to test
                                              everything before implementing. √
       2 Monitoring and evaluating quality    They also allow for quality control
         processes. √√                        checks at key points. √
                                   Submax (4)                               Submax (2)
      NOTE: 1. Mark the first TWO (2) only
            2. Award marks for the TQM elements even if the quotes were
              incomplete.
            3. Do not award marks for the motivation s if the TQM elements were
               incorrectly identified.
                                                                                  Max             (6)

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4.9   The impact of total quality management (TQM) if it is poorly implemented by
      businesses
         - Setting unrealistic deadlines that may not be achieved.√√
         - Employees may not be adequately trained resulting in poor quality products.
            √√
         - Decline in productivity, because of stoppages. √√
         - Businesses may not be able to make necessary changes of products/services
            to satisfy the needs of customers. √√
         - Business reputation/image may suffer because of poor quality/defective
            goods. √√
         - Customers will have many alternatives to choose from and the impact could
            be devastating to businesses. √√
         - Investors might withdraw investment, if there is a decline in profits. √√
         - Decline in sales as more goods are returned by unhappy customers. √√
         - High staff turnover, because of poor skills development. √√
         - Undocumented/Uncontrolled quality control systems/processes could result in
            errors/ deviations from pre-set quality standards. √√
         - Any other relevant answer related to the impact of total quality management
            (TQM) if poorly implemented by businesses.

                                                                                   Max          (4)
                                                                                               [40]
                                                                     TOTAL SECTION B           [80]
                                                              BREAKDOWN OF MARKS
                                                              QUESTION       MARKS
                                                                 4.1          3
                                                                4.2.1         3
                                                                4.2.2         3
                                                                4.2.3         3
                                                                 4.3          4
                                                                 4.4          4
                                                                 4.5          2
                                                                 4.6          4
                                                                 4.7          4
                                                                 4.8          6
                                                                 4.9          4
                                                               TOTAL         40

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                                        NSC-Marking Guidelines

SECTION C

QUESTION 5: BUSINESS ENVIRONMENTS(LEGISLATION)

5.1   Introduction
          - The Act was introduced in order to ensure full economic participation of previously
            disadvantaged individuals. √
          - BBBEE achieves sustainable change in the racial composition and increase the
            access to economic activities and skills training of previously disadvantaged
            individuals.√
          - Businesses enjoy the benefits of the BBBEE Act even though this Act may
            disadvantage other businesses.√
          - Consequences for no-compliance encourage businesses to comply with this Act. √
          - Any other relevant introduction related to the purpose of BBBEE/impact of the
            Act/Implications of BBBEE pillars/ penalties for non-compliance with the BBBEE.
                                                                                         Any (2x1) (2)

5.2   The purpose of Broad Based Black Economic Empowerment/BBBEE
         -   Enable wealth to be spread more broadly across all population groups. √√
         -   Outline areas that would give the government a platform for bringing equitable spread
             of wealth. √√
         -   Allows for the development of Codes of Good Practice. √√
         -   It aims at targeting inequality in the South African economy. √√
         -   Bridges the gap between formal and substantive equality to ensure that all people in
             South Africa fully enjoy the right to equality. √√
         -   Any other relevant answer related to the purpose of BBBEE.
                                                                                              Max (8)
5.3   Impact of BBBEE Act on business
      Positives/advantages
         -   Encourages businesses to address the demands√ for redress/equity directly. √
         -   Provides a variety of business codes to improve employment equity. √
         -   Provides for human resources development through training and development. √
         -   A good BEE rating√ improves the image of the business. √
         -   Fronting is discouraged√, as it may lead to the disqualification of a business's entire
             scorecard/BBBEE status√
         -    Promotes enterprise development√, by developing entrepreneurial skills of
             designated people to start their own businesses√
         -   Businesses that comply with BBBEE regarding the pillars will be rated high on the
             BEE scorecard√/may get government tenders/may attract other BBBEE business
             partners/-suppliers. √
         -   Businesses will have a good overview on how it is performing√ in comparison to other
             businesses in the rest of the country. √
         -   By focusing on BBBEE, the business will show commitment√ towards the
             social/education/economic developments in the community/country. √

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                                       NSC-Marking Guidelines

         -   Once rated, the business will understand how to develop BBBEE strategies√ that will
             increase its BBBEE ratings on an annual basis. √
         -   Share prices of BBBEE compliant businesses√ are likely to increase as they attract
             more business. √
         -   Businesses that support Small, Micro, Medium Enterprises (SMMEs), may increase
             their own BBBEE ratings√
         -   Complying with BBBEE requirements gives businesses experience/exposure√ to be
             able to provide better employment opportunities/staff development. √
         -   Any other relevant answer related to the positive impact/advantages of BBBEE Act
             on businesses.

                                                   AND/OR

             Negative/Disadvantages
         -   Businesses could experience large financial implications/penalties√ if they do not
             comply with BBBEE. √
         -   Processes may lead to corruption/nepotism if not monitored properly. √
         -   Processes and procedures may be costly for a business√ as there are many legal
             requirements for scoring enough points to be compliant. √
         -   Investment/Ownership issues can cause unhappiness√ amongst existing share-
             holders/owners. √
         -   Provides for preferential procurement√, so certain businesses may be excluded from
             supplying goods/services. √
         -   Businesses will have to spend money√ in areas covered by five BBBEE pillars to
             obtain a good BBBEE rating. √
         -   Businesses that want to do business with the government√ must have their BEE
             status assessed annually√.
         -   Businesses have to go through the process of having their BBBEE compliance
             measured√/verified by an independent BEE verification agency. √
         -   Many businesses have been disadvantaged due to BBBEE ratings√ as they may not
             be able to meet all the scoring. √
         -   Any other relevant answer related to the negative impact/disadvantages of BBBEE
             Act on businesses.
                                                                                                Max (10)

5.4   The implications of Broad Based Black Economic the following revised FIVE pillars of
      BBBEE on businesses
5.4.1 Management control√√
        - Business must ensure that transformation√ is implemented at all levels. √
        - Appoint black people√ in senior executive positions/to management. √
        - Involve black people√ in the decision-making processes. √

         -   Ensure that black females√ are represented in management. √
         -   Businesses score points in both management and ownership√ when selling more

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