Business Studies Grade 12 Paper 1 Eastern Cape June 2025 Memo

NATIONAL SENIOR CERTIFICATE GRADE 12 JUNE 2025 BUSINESS STUDIES P1 MARKING GUIDELINE MARKS: 150 This marking guideline consists of 31 pages.

2 BUSINESS STUDIES P1 (EC/JUNE 2025) 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. Candidates responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 2. 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. 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. - 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 purposes. 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 guidelines. Only the total for each question should appear in the left-hand margin next to the appropriate question number. 7. In an indirect question, the theory as well as the response must be relevant and related to the question. 8. 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. Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 3 9. No additional credit must be given for repetition of facts. Indicate with an R . 10. explained as follows: 10.1 either a positive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: 10.2 respond in either a positive/negative manner or take a neutral (positive and negative) stance. In this instance candidates are also IDA employee for injuries sustained during working hours as long as it can be proved that the business was not negligent. NOTE: 1. 2. 11. 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: 11.1 Advise, name, state, outline, motivate, recommend, suggest, (list not exhaustive) responses. Therefore, the mark allocation for each statement/answer appears at the end. 11.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, 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. 12. 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

4 BUSINESS STUDIES P1 (EC/JUNE 2025) 13. SECTION B 13.1 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. NOTE: 1. This applies only to questions where the number of facts is specified. 2. The above also applies to responses in SECTION C (where applicable). 13.2 If two facts are written in one sentence, award the candidate FULL credit. Point 14.1 above still applies. 13.3 If candidates are required to provide their own examples/views, brainstorm this to finalise alternative answers. 13.4 Use of the cognitive verbs and allocation of marks: 13.4.1 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) marking guideline to facilitate mark allocation. 13.4.2 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. 13.5 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

(EC/JUNE 2025) BUSINESS STUDIES P1 5 14. SECTION C 14.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: Conclusion 32 Insight 8 TOTAL 40 14.2 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 on the 2 questions? Marks to be allocated using this guide: 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 questions, but one sub-question of the question with no relevant facts; - of ONE (1) mark for synthesis. Option 4: No relevant facts: 0 marks (Two -S ) Where a candidate answers less than 50% (only one sub-question) 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 one or two examples, not older than two (2) 2 years that are based on recent 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

6 BUSINESS STUDIES P1 (EC/JUNE 2025) 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. 14.3 Indicate insight in the left-hand margin with a symbol e.g. ( L, A, -S and/or O ). 14.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guideline to each question. 14.5 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 14.6 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 14.7 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.) 14.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 14.9 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. 14.10 14.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 7 14.10.2 With effect from November 2015, the TWO marks will not necessarily appear at the end of each completed sentence. The 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. 14.11 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

8 BUSINESS STUDIES P1 (EC/JUNE 2025) SECTION A QUESTION 1 1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.1.5 (5 x 2) (10) 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 (5 x 2) (10) 1.3 1.3.1 1.3.2 1.3.3 1.3.4 G 1.3.5 (5 x 2) (10) TOTAL SECTION A: 30 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 9 SECTION B Mark the FIRST TWO answers only. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Provisions of the Basic Conditions of Employment Act/BCEA - Regulation of working time/Ordinary hours of work/overtime/meal - Leave/annual/sick/family - - - - Any other relevant answer related to the provisions of the BCEA. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 2.2 Strategic management process OPTION 1 - Businesses should have a clear vision, mission - Identify opportunities/weaknesses/strengths/threats by conducting - Tools available for environmental scanning may include a SWOT analysis/Porter s Five Forces model/PESTLE analysis/industrial analysis - - Develop (an) action plan(s), including the tasks to be done/deadlines to - Implement selected strategies by communicating it to all stakeholders/ - Continuously evaluate/monitor/measure strategies in order to take - Any other relevant answer related to the strategic management process. OR OPTION 2 - Businesses should review/analyse/re-examine their vision/mission - Conduct an environmental analysis using models such as - - - Control/Evaluate/Monitor the implemented strategy to identify - - Any other relevant answer related to the strategic management process. Max. (6) Copyright reserved Please turn over

10 BUSINESS STUDIES P1 (EC/JUNE 2025) 2.3 Challenges of business environments CHALLENGES BUSINESS ENVIRONMENTS 1. MB employees went on a wild cat strike Micro due to unpaid overtime. 2. Muzi Bakery has to close early sometimes Macro due to service delivery protests 3. Roaster Bakery offers similar products at lower prices. Max. (3) Max. (3) Max. (6) NOTE: 1. Mark the first THREE (3) challenges only. 2. Award marks for challenges even if the environment is not mentioned. 3. Do not award marks for the environment if the challenges were incorrectly/not identified. 4. Accept responses in any order. 2.4 Funding of Sector Education and Training authorities (SETA - Skills Development levies are paid by employers - - The different SETAs receive eighty percent (80%) of the levy for organisational expenses - - - Funds received - Any other relevant answer related to how SETAs are funded. Max. (4) 2.5 Rights of employers in terms of Labour Relations Act (LRA), 1995 (Act 66 of 1995) - - - - Dismiss employees who engage in - Not pay/remunerate an employee who has participated in a protected - Any other relevant answer related to the rights of employers in terms of the LRA. Max. (6) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 11 2.6 Steps in strategy evaluation - - - - - - - Draw up a - Decide on the desired outcome as envisaged when strategies were - Consider the impact of the strategic implementation in the internal and - Any other relevant answer related to the steps in strategy evaluation. NOTE: Accept steps in any order. Max. (4) 2.7 PESTLE analysis from the scenario 2.7.1 (2) 2.7.2 Ways in which SS can deal with challenges posed by the PESTLE factor identified - businesses. - Comply with the legal requirements for operating businesses e.g. licence/trade mark registration/patents. - for high legal establishment costs. - Businesses must know the legalities of business contracts that they comply with all the requirements. - Any other relevant answer related to ways in which SS can deal with challenges posed by legal as PESTLE factor. NOTE: Accept relevant facts even if the legal factor was incorrectly identified as an answer in QUESTION 2.7.1 Max. (4) Copyright reserved Please turn over

12 BUSINESS STUDIES P1 (EC/JUNE 2025) 2.8 Ways in which businesses could comply with the Compensation for Occupational Injuries and Diseases Amendment Act, (COIDA) 1997. - Businesses should provide a healthy/safe working environment - Ensure that the premises/equipment/machinery is in good working condition. - Register with the Compensation Commissioner and provide the particulars of the business. - Report all incidents causing death/injury/illness of employees. - Levies must be paid to the Compensation Fund. - Keep records of employees income and details of work for four years. - Submit returns of earnings by no later than 1 March annually. - Allow regular assessment of the workplace by inspectors in order to determine the level of risk their employees are exposed to. - Employers may not make deductions for COIDA from employees' remuneration packages. - Businesses must ensure that claims are lodged within twelve months of the date of the accident. - Any other relevant answer related to ways in which businesses could comply with the Compensation for Occupational Injuries and Diseases Amendment Act 1997 (COIDA), (Act 61 of 1997). Max. (4) [40] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 4 2.2 6 2.3.1 3 2.3.2 3 2.4 4 2.5 6 2.6 4 2.7.1 2 2.7.2 4 2.8 4 TOTAL 40 Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 13 QUESTION 3: BUSINESS OPERATIONS 3.1 Sources of external recruitment - Advertisements in media including newspapers, radio, internet - Recruitment agencies or consultants - Professional associations - Networking outside the business - Noticeboards outside the business - Walk-in applications - Headhunting outside the business - Educational institutions - Social media e.g. facebook - Any other relevant answer related to sources of external recruitment. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.2 Placement procedure - Outline the specific responsibilities of the new position, including the expectations/skills required for this - Determine the successful strengths/weaknesses/interests/ - Determine the relationship between the position and the competencies of the new employee - Any other relevant answer related to the placement procedure as a human resources activity. Max. (4) Copyright reserved Please turn over

14 BUSINESS STUDIES P1 (EC/JUNE 2025) 3.3 Example of job description from the scenario 3.3.1 - EL advertised a vacancy for a - Successful applicant must be able to prepare budgets. NOTE: Mark the first TWO (2) quotes only. (2 x 1) (2) 3.3.2 Impact of fringe benefits on businesses Advantages/Positives - Attractive fringe benefit packages - - - It increases employee satisfaction/loyalty - - - Any other relevant answer related to the positive impact/advantages of fringe benefits on businesses. AND/OR Disadvantages/Negatives - - - - - - - - - - Any other relevant answer related to the negative impact/disadvantages of fringe benefits on businesses. Max. (6) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 15 3.4 Implication of the Labour Relation Act on the human resource function. - Promotes resolution of labour disputes - Protects the rights of employees/employers as outlined in the Constitution. - - Provides for unresolved disputes to be referred to Labour Courts/Labour Appeal Courts. - Promotes orderly negotiations and employee participation in decision making in the workplace. - Workers cannot be easily dismissed as bargaining council/Commission for Conciliation, Mediation and Arbitration (CCMA) processes need to be followed. - Provides a framework for bilateral meetings where employees, trade unions and employers discuss matters relating to employment. - The human resource manager should allow workers to form workplace forums/trade unions to promote the interests of all employees. - Clarify the transfer of contracts of employment/If a business is transferred to another owner, then the employee contracts are also transferred - Any other relevant answer related to the implication of the Labour Relation Act on the human resource function. Max. (4) 3.5 Quality indicators of the public relations - Providing regular/positive press releases. - Dealing quickly with negative publicity/less/little/no incidents of negative - Implement sustainable corporate social investment (CSI) programmes. - Good results of/Positive feedback from public surveys on business image. - High standard of internal publicity/appearance of buildings/professional - Deliver quality goods/services that promote the brand/image with key - - Any other relevant answer related to the quality indicator of the public relation. Max. (4) Copyright reserved Please turn over

16 BUSINESS STUDIES P1 (EC/JUNE 2025) 3.6 Ways in which TQM to reduce the cost quality 3.6.1 Ways in which TQM can reduce the cost of quality from the scenario. - They use the services of quality circles to improve their quality of - Mavela Technologies develop work systems that empower NOTE 1. Mark the first TWO (2) only 2. Only award marks for responses that are quoted from the scenario (2 x 1) (2) 3.6.2 Other ways in which TQM can reduce the cost of quality - Schedule activities - Share responsibilities for quality output - - Work closely with suppliers - Improve communication about the quality challenges/ so that everyone can learn from past - - Implement pro-active maintenance programmes - Any other relevant answer related to ways in which TQM can reduce the cost of quality. Max. (4) NOTE: Do not award marks for responses that are quoted from the scenario. 3.7 Benefits of a good quality management system - - - through proper time management/using high - Products/services are constantly improved - Vision/mission/b - A business has a competitive - - Employers and employees will have a healthy working relationship - - - Any other relevant answer related to the benefits of a good quality management system. Max. (4) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 17 3.8 Impact of continuous skill development/education and training as an element of total quality management (TQM) on large businesses Positives/Advantages - skills training and - Human resources experts ensure that training programmes are - - Large businesses conduct skills audits to establish the - - Any other relevant answer related to the positive impact/advantages of continuous skills development/education and training as a TQM element on large businesses. AND/OR Negatives/ Disadvantages - - after they gained more - - - - - Any other relevant answer related to the negative impact/disadvantages of continuous skills development/education and training as a TQM element on large businesses. Max. (6) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 4 3.3.1 2 3.3.2 6 3.4 4 3.5 4 3.6.1 2 3.6.2 4 3.7 4 3.8 6 TOTAL 40 Copyright reserved Please turn over

18 BUSINESS STUDIES P1 (EC/JUNE 2025) QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Consumer rights as stipulated in the Consumer Protection Act/CPA - - - - Right to disclosure and - - - - - NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 4.2 Advantages of diversification strategies - - - Reduce the risk of relying only on one product for sales / revenue / income - More products can be sold to existing customers and additional new - Businesses gain more technological capabilities through product - Diversification into several industries or product lines can help create a - Businesses produce more output using less inputs as one factory may be - Enables businesses to retain their competition advantage by meeting the needs of current /new customers - Allows businesses to remain relevant / functional/ operational in a dynamic business environment. - Any other relevant answer related to the advantages of diversification strategies. Max. (4) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 19 4.3 Porter Five Forces Porter Five Forces from the scenario MOTIVATIONS 1. Threat/Barriers of new - CS is highly profitable and attracts entrants to the market many new entrepreneurs to enter 2. Power of competitors/ - Competitive rivalry across the street offering services at lower prices than Candice Spa. Submax (4) Submax (2) NOTE: 1. Mark the first TWO (2) only. 2. The answer does not have to be in a tabular format. 3. Award marks for the forces even if motivations were incomplete. 4. Do not award marks for the motivations if the forces were not identified. 5. Accept responses in any order. Max. (6) 4.4 Ways in which businesses could apply enterprise and supplier development (ESD) as a BBBEE pillar in the workplace. - - Outsource services to suppliers - Businesses are encouraged to invest in/support black owned SMMEs to make them more sustainable. - Identify black owned suppliers services. - Invest / support black owned SMMEs by contributing loans / donations / consulting services/ advice / entrepreneurial programmes - techniques, legal advice - Support the cash flow of small suppliers by offering them preferential terms of payment. - Develop and implement a supplier development plan /supply chain. - Any other relevant answer related to ways in which businesses could apply enterprise and supplier development/ESD as a BBBEE pillar in the workplace. Max. (6) Copyright reserved Please turn over

20 BUSINESS STUDIES P1 (EC/JUNE 2025) BUSINESS OPERATIONS 4.5 4.5.1 4.5.2 Time-related NOTE: Mark the first TWO (2) only. (2 x 1) (2) 4.6 TQM applicable to Terah Spices 4.6.1 (2) 4.6.2 Total (2) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 21 4.7 Difference between quality management and quality performance QUALITY MANAGEMENT QUALITY PERFORMANCE Techniques/tools Total performance of each department measured Can be obtained if all departments each of the business work together Aims to ensure that the quality of Quality is measured goods/services physical product/statistical output of Focuses on the means processes/surveys of the users Any other relevant answer related to Any other relevant answer related quality management. to quality performance. Submax (2) Submax (2) NOTE 1. The answer does not have to be in tabular form. 2. The difference does not have to link but must be clear. 3. Award maximum of TWO (2) marks if the difference is not clear. 4. Mark either quality management or quality performance. Max. (4) 4.8 Quality indicators for the purchasing function - Businesses should buy raw materials/products in bulk - Select reliable suppliers that render the best quality raw materials/capital goods - Place orders timeously and regular follow-ups delivered on time. - Effective co-ordination between purchasing and production departments so that purchasing staff understand the requirements of the production process. - Required quantities should be delivered - Implement/Maintain stock control systems stock. - -dated stock. - Monitor and report on minimum stock levels - Effective use of storage space storage. - Involve suppliers selection/quality control process. - Ensure that there is no break in production - Establish relationships with suppliers the business's vision/mission/values. - Have a thorough understanding - Any other relevant answer related to the quality indicators for the purchasing function. Max. (6) Copyright reserved Please turn over

22 BUSINESS STUDIES P1 (EC/JUNE 2025) 4.9 Impact of TQM if poorly implemented by businesses - - Employees may not be adequately trained resulting in poor quality - - Businesses may not be able to make the necessary changes to - The reputation/image of the business may suffer because of poor - Customers will have many alternatives to choose from and the impact - Investors might withdraw investments, if there is a decline in profits. - - - Undocumented/Uncontrolled quality control processes/systems could result in errors/deviations from pre- - Any other relevant answer related to the impact of TQM if poorly implemented by businesses. Max. (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2 4 4.3 6 4.4 6 4.5 2 4.6 4 4.7 4 4.8 6 4.9 4 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 23 SECTION C Mark the FIRST answer only. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) 5.1 Introduction - The Employment Equity Act (EEA) was introduced to redress the economic imbalances of the past. - The EEA applies to all employers, employees and people applying for jobs. - The aim of the Act is to ensure that transformation takes place in the workplace. - Labour inspectors have the power to issue compliance orders. - Employment policies and procedures must be aligned with the requirements of the Act. - Any other relevant introduction related to the purpose of the EEA/impact of EEA on businesses/consequences/penalties/practical ways in which businesses can comply with the EEA. (Any 2 x 1) (2) 5.2 Purpose of the Employment Equity Act - The EEA allows employees who do the same work to be paid equally. - Eliminates discrimination on grounds of gender/race/disability in the workplace. - Promotes equal opportunity and fair treatment in the workplace. - Protects employees from victimisation if they exercise the rights given to them by the EEA. - Promotes diversity in the workplace by ensuring that people of diverse backgrounds are appointed - Ensures equal representation in the workplace through the implementation of affirmative action. - Ensures equal representation of all population groups in the workplace. - Any other relevant answer related to the purpose of the EEA. Max. (10) Copyright reserved Please turn over

24 BUSINESS STUDIES P1 (EC/JUNE 2025) 5.3 Impact of the EEA on businesses Positives/Advantages - Encourages consultation - Motivates employees workforce is more diverse/ representative/inclusive. - Creates a framework measures. - Prevents unfair discrimination/discriminatory appointments that the workforce represents the demographics of the country/promotes diversity in the workplace. - Motivates employees opportunities. - Appointment process is clearly defined - Promotes the implementation of affirmative action measures imbalance in employment. - Businesses are in a better position government. - Impacts positively - Any other relevant answer related to the positive impact/advantages of EEA on businesses. AND/OR Negatives/Disadvantages - Increased administration burden employment equity reports every two years. - Expensive to train/employ someone - Other groups may not respect the knowledge/skills/experience of an EEA appointment - Fines/Penalties for non-compliant businesses business. - Employers have to appoint one or more senior managers to ensure the implementation of the EEA plan - Skilled people from designated groups may demand higher salaries increases salary expenses. - Job hopping of skilled/trained EE appointees - Diversity in the workplace - Businesses must submit a compliance certificate business with state businesses. - Businesses are meet EEA requirements. - Often positions go unfilled candidates. - Any other relevant answer related to the negative impact/disadvantages of the EEA on businesses. Max. (14) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 25 5.4 Consequences/Penalties for non-compliance - Labour inspectors may conduct onsite visits, to interview employees which can create a bad image for the business. - A compliance order may be issued to businesses that do not comply with the EEA. - Businesses may be brought before the Labour Court if compliance orders are not adhered to/no efforts made to reach targets. - Labour inspectors may investigate/inspect/ask questions about complaints. - Businesses may face heavy fines for non-compliance. - They can be ordered to pay compensation and damages to the employee. - Any other relevant answer related to the consequences/penalties for non-compliance with the EEA. Max. (12) 5.5 Practical ways in which businesses can comply with the EEA - Businesses should guard against discriminatory appointments. - Assess the racial composition of all employees, including senior management. - Ensure that there is equal representation of all racial groups in every level of employment. - Clearly define the appointment process, so that all parties are well informed. - Ensure that diversity/inclusivity in the workplace is achieved. - Prepare an employment equity plan in consultation with employees. - Compile employment equity plans that indicate how they will implement affirmative action. - Ensure that affirmative action measures promote diversity in the workplace. - Implement the employment equity plan. - Implement affirmative action measures to redress disadvantages experienced by designated groups/Accommodate people from different designated groups. - Submit the employment equity plan to the Department of Labour. - Assign one or more senior managers to ensure implementation and monitoring of the employment equity plan. - Eliminate barriers that have an adverse impact on designated groups. - Regularly report to the Department of Labour on progress in implementation of the plan. - Display a summary of the Act where employees can clearly see/have access to the document. - Conduct medical/psychological tests fairly to employees/when deemed necessary. - Ensure that the workplace represents the demographics of the country at all levels. - Restructure/Analyse current employment policies/practices/procedures to accommodate designated groups. - Retrain/Develop/Train designated groups through skills development programmes. - Employees must be paid equal for work of equal value. - Any other relevant answer related to practical ways in which businesses can comply with the EEA. Max. (10) Copyright reserved Please turn over

26 BUSINESS STUDIES P1 (EC/JUNE 2025) 5.6 Conclusion - The EEA does not only promote and regulate affirmative action, but also gives - Businesses can access the skills and expertise of previously - Businesses should take necessary steps/put practical measures in - Penalties for non-compliance may have a negative financial implication - Any other relevant conclusion related to the purpose of the EEA/impact of EEA on businesses/consequences/penalties/practical ways in which businesses can comply with the EEA. Any (1 x 2) (2) [40] Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 27 QUESTION 5: BREAKDOWN OF MARKS DETAILS MAXIMUM TOTAL Introduction 2 Purpose of Employment Equity Act 10 Impact of Employment Equity Act 14 Max Consequences/penalties for non- 32 12 compliance. Practical ways in which businesses can 10 comply with the EEA Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 8 Originality/Examples 2 TOTAL MARKS 40 *LASO For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

28 BUSINESS STUDIES P1 (EC/JUNE 2025) QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES) 6.1 Introduction - The human resources manager must be well conversant with the requirements of a vacancy to ensure that the recruitment procedure is - Internal recruitment is a method where businesses advertise vacancies - A good induction programme enables new employees to have a fundamental understanding of what is expected in the new job/ position. - An employment contract sets out the legal conditions of employment that must be observed by both the employer and the employee. - Any other relevant introduction related to the legal requirements of the employment contract/recruitment procedure as human resource activity/benefit of induction for businesses/reason for the termination of an employment contract. (Any 2 x 1) (2) 6.2 Legal requirements of the employment contract - The employer and employee/b - - No - The remuneration package/including benefits must be clearly indicated. - The employment contract may not contain any requirements that are in - Aspects of the employment contract can be renegotiated during the course - The employer must explain the terms and conditions of the employment - Conditions of employment/duties/responsibilities of the employees must be - All business policies, procedures and disciplinary codes/rules can form - The employer must allow the employee to thoroughly read through the - - The employment contract should include a code of conduct and code of - Any other relevant answer related to the legal requirements of the employment contract. Max. (10) Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 29 6.3 Recruitment procedure as human resource activity - The human resource manager should evaluate the job/prepare a job analysis, identify recruitment needs. - The human resource manager should prepare the job description to determine the responsibilities of the job. - Human resource manager should indicate the job specification/description/key performance areas to attract suitable candidates. - Choose the method of recruitment, e.g. internal/external, to reach/target the suitable applicants/candidates. - Vacancies can be internally advertised via internal email/word of mouth/ posters/staff notices. - If the external recruitment is chosen, the relevant recruitment sources should be selected, e.g. recruitment agencies/tertiary institutions/ newspapers, etc - If internal recruitment is unsuccessful, external recruitment should be considered. - The advertisement should be prepared with the relevant information, e.g. the name of the company, contact details, contact person, etc. - Place the advertisement in the appropriate media that will ensure that the best candidates apply. - Any other relevant answer related to the recruitment procedure as human resource activity. Max. (12) 6.4 Benefit for induction for businesses - Allows new employees to settle in quickly - Ensures that new employees understand rules - New employees may establish relationships - Make new employees feel at ease in the workplace - The results obtained during the induction process focussed - Increases quality of performance/productivity - Minimises/Decreases the need for on-going training - Employees will be familiar with organisational structures - Opportunities are created for new employees - New employees will understand their role/responsibilities - New employees will know the layout of the building/factory/offices/where everything is - Learn more about the business so that new employees understand - Company policies regarding conduct/procedures/safety and security/employment contract/conditions of employment/working hours/leave Copyright reserved Please turn over

30 BUSINESS STUDIES P1 (EC/JUNE 2025) - Realistic expectations for new employees - New employees may feel part of the team - Employees may have a better understanding of business policies - - Any other relevant answer related to the benefits of induction for businesses. Max. (14) 6.5 Reasons for termination of an employment contract - The employer may dismiss an employee for valid reason(s) such as - Employer may no longer have work for redundant employees/cannot fulfil - The employer may retrench some employees due to insolvency/may not be - Employees decided to leave/resign voluntarily for better job - An employee may have reached the pre-determined age for retirement. - - - - Any other relevant answer related to the reasons for the termination of an employment contract. Max. (10) 6.6 Conclusion - Businesses should align the employment contract according to the - Businesses should remain objective when recruiting to ensure that the successful candidate makes a meaningful contribution in the workplace. - A well-designed induction programme allows new employees to gain a better understanding of the requirements of the new job. - The employee must be given a notice in writing when terminating an employment contract as per BCEA. - Any other relevant conclusion related to the legal requirements of the employment contract/recruitment procedure as human resource activity/benefit of induction for businesses/reason for the termination of an employment contract. (Any 1 x 2) (2) [40] Copyright reserved Please turn over

(EC/JUNE 2025) BUSINESS STUDIES P1 31 QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Legal requirement of the employment 10 contract Recruitment procedure as human resource 12 Max. function 32 Benefits of induction for businesses 14 Reason for the termination of an 10 employment contract. Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 *LASO For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved Please turn over