# Business Studies Grade 11 Eastern Cape November 2018 Memo > Grade 11 Business Studies memorandum from the Eastern Cape November 2018 (English), 41 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/bstd-gr11-memo-eng-nov2018/ad4cd946-ab18-48f2-a0b4-3d5de0705441 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 11 - Document type: Memorandum - Year: 2018 - Exam period: Eastern Cape November - Curriculum: CAPS - Pages: 41 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Business Studies](https://www.hlayiso.com/library/grade-11/business-studies) › [Business Studies Grade 11 Eastern Cape November 2018 Memo](https://www.hlayiso.com/library/bstd-gr11-memo-eng-nov2018/ad4cd946-ab18-48f2-a0b4-3d5de0705441) ## About this document Business Studies · Grade 11 · Eastern Cape November · 2018. Memorandum, 41 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 NATIONAL SENIOR CERTIFICATE GRADE 11 NOVEMBER 2018 BUSINESS STUDIES MARKING GUIDELINES MARKS: 300 This marking guideline consists of 41 pages. ### Page 2 Downloaded from hlayiso.com 2 BUSINESS STUDIES (EC/NOVEMBER 2018) 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 memorandum  Comes from another 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. 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 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. 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). Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 3 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. Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com 4 BUSINESS STUDIES (EC/NOVEMBER 2018) 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 to come up with alternative answers. 14.4 Use of the cognitive verbs and allocation of marks: 14.4.1 If the number of facts is specified, questions that require candidates to 'describe/discuss/explain' may be marked as follows:  Fact 2 marks (or as indicated in the marking guidelines)  Explanation 1 mark 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 guidelines. 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). 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 Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 5 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, body, proper paragraphing and a conclusion? 2 Analysis and Is the candidate able to break down the question into interpretation headings/sub-headings/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’) 2 Synthesis Are there relevant decisions/facts/responses made based on the questions? Marks to be allocated using this guide: No relevant facts: 0 (Two ‘-S’) Some relevant facts: 1 (One ‘-S’) Only relevant facts: 2 (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. 2 Originality Is there evidence of examples, recency of information, current trends and developments? 2 TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 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. 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’). Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com 6 BUSINESS STUDIES (EC/NOVEMBER 2018) 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 SUB MAX/MAX mark in a subsection has been attained. Write SUB MAX/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 16.7 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.) 16.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 16.9 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. 16.10 16.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 16.10.2 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. 16.11 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. Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 7 SECTION A: COMPULSORY QUESTION 1 1.1 1.1.1 D √√ 1.1.2 C √√ 1.1.3 A √√ 1.1.4 A √√ 1.1.5 B √√ 1.1.6 C √√ 1.1.7 B √√ 1.1.8 D √√ 1.1.9 D √√ 1.1.10 B √√ (10 x 2) (20) 1.2 1.2.1 acquisition √√ 1.2.2 co-operative √√ 1.2.3 workplace forum √√ 1.2.4 Jungian √√ 1.2.5 Interview √√ (5 x 2) (10) 1.3 1.3.1 G √√ 1.3.2 F √√ 1.3.3 A √√ 1.3.4 E √√ 1.3.5 D √√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com 8 BUSINESS STUDIES (EC/NOVEMBER 2018) SECTION B Mark the FIRST THREE questions in this section ONLY. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Business environments - Micro √ - Market √ - Macro √ NOTE: Mark the first THREE (3) only. (3 x 1) (3) 2.2.1 Secondary √√ Submax. (2) Motivation: Angle Furniture Manufacturer (AFM) specialises in manufacturing of office furniture √ Submax. (1) Max. (3) 2.2.2 Challenges of the micro environment Challenges of the micro Motivation environment (a) Lack of vision and The management of AFM developed mission √√ unclear goals which confuse staff about the direction of the business. √ (b) Lack of adequate AFM decided to promote Zuko and management skills √√ Sophia as managers even though they do not have the necessary skills to execute their task effectively. √ (c) Unions , strikes and Some employees decided to go on go-slows √√ strike after consulting with their unions as they felt that the appointment process was not transparent and fair. √ Submax. (6) Submax. (3) Max. (9) 2.2.3 Function of trade unions - Protecting the interest of workers √√ - Representing the interest of general society and minority groups through media and negotiations √√ - Influencing government decisions √√ - Influencing management for better working conditions, salaries and benefits √√ - Representing employees corporately and individually √√ - Improving the material benefits of their members √√ - Advancing the interest of members √√ - Providing legal and financial advice. √√ - Providing benefits and educational facilities to its members √√ Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 9 - Supporting gender equality √√ - Protecting members in times of retrenchments and disciplinary hearings √√ - Protecting the interests of their members during disciplinary procedures √√ - Any other relevant answer related to the functions of trade unions Max. (6) 2.3 Differences between strikes and go-slows STRIKES GO-SLOWS - Temporary collective refusal √ of - The employees still carry on with employees to work √ their work, √ but at a much slower pace than normal √ - A collective, organised cessation of - The employees aim to work by employees √ to force the disrupt √ the workplace/ employers to accept their demands √ production √ - Any other relevant answer related to - Any other relevant answer strikes related to go-slows Submax. (2) Submax. (2) Max. (4) NOTE: 1. The answer does not have to be in a tabular format but the distinction must be clear. 2. Award a maximum of TWO (2) marks if the distinction is not clear./Mark either strikes or go-slows only. 2.4 Ways business can adapt to the challenges of the macro environment 2.4.1 Information management - Information must be found/recorded/stored/easily retrieved √ and effectively used. √ - Businesses need to implement an effective information management system which is accessible √ and useful to all staff. √ - Any other relevant answer related to information management as a method to adapt to challenges of the business environments. Submax. (4) 2.4.2 Organisational design and flexibility - Businesses need to be flexible in their organisational design √ and strategies so that they can compete in a changing market. √ - Organisation design is a process to integrate people/information/ technology of an organisation √ in order to improve the profitability of the business. √ - Change the organisational design √ to adapt to a specific challenge √ - Any other relevant answer related to organisational design and flexibility as a method to adapt to challenges of the business environments. Submax. (4) Max. (8) Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com 10 BUSINESS STUDIES (EC/NOVEMBER 2018) 2.5 Ways businesses form power relationships - Build around BBBEE √ and empowerment of employees. √ - Ability of a person’s power to influence √ others’ thoughts, actions or choices. √ - Every party to a relationship possesses a degree of power, √ i.e. power to strike √/demand payment √/order material etc. √ - Strategic alliances/Agreement √ between businesses leading to mutual benefits. √ - Strategic allies do not want to lose √ mutual benefits. √ - Strategic allies consider suggestions √ made by businesses in the alliance. √ - Persuasion of large investors √ has power to influence other businesses. √ - Secure goodwill of investors √ and listen to suggestions of investors. √ - Influence on company representatives √ through agent or intermediary. √ - Intermediaries influence customers by handing out free samples √ and by recommendation of certain products by specialists/investors. √ - Any other relevant answer related on ways businesses form power relations. Max. (6) 2.6.1 Socio-economic issues - Strikes √ - Poverty √ - Unemployment √ - Crime √ - HIV/Aids √ NOTE: Mark the first THREE (3) only. (3 x 1) (3) 2.6.2 Impact of crime on FI - Huge financial losses √ as the businesses have to secure their premises with burglar bars, security cameras and security guards √ - Business also loses money √ due to stolen stock. √ - It affects the employees; √ they feel threatened and scared to be at work √ and this affects their work performance √ and results in decreased productivity. √ - Businesses do not get the best employees √ available as the people are too scared to work in that area. √ - Customers are too scared to shop in that area √ so it is a decrease in profits for the business. √ - Insurance and security costs √ become expensive. √ - Smaller businesses often cannot afford insurance √ and then have to replace the stolen goods themselves at greater loss. √ - Lower profits affect the decision to expand √ and employ more people/ pay higher wages. √ - Businesses lose skilled people √ resulting in a decline in productivity √ - Crime causes increase in health costs of employees √ due to injuries or stress. √ - Discourages foreign investment √ and reduces tourism √ - Crime brings about unfair competition √ from stolen goods resold at a lower price. √ - Any other relevant answer related to the impact of crime on businesses. Max. (6) Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 11 2.6.3 Ways that FI can address HIV/Aids - Develop counselling programmes for infected/affected persons/ employees. √√ - Conduct workshops on HIV/Aids programmes/campaigns. √√ - Roll out anti-retroviral (ARV) treatment programmes (ART) for the infected employees. √√ - Encourage employees to join HIV/Aids support groups. √√ - Develop strategies to deal with stigma and discrimination. √√ - Participate in the HIV/Aids prevention programmes implemented in the community. √√ - Support non-governmental organisational/community based organisation/ NPC HIV/Aids initiatives. √√ - Any other relevant answer related to addressing HIV as socio-economic issues. Max. (6) 2.7 Purpose of the Labour Relations Act (LRA) - Provides a framework where employees, trade unions and employers work together √ to discuss matters relating to employment, e.g. wages, conditions of employment. √ - Promotes orderly negotiations and employee participation √ in decision making in the workplace. √ - Promotes resolution √ of labour disputes. √ - Promotes fair √ employment practices. √ - Outlines the relationship √ between employees and employers. √ - Provides simple procedures √ for the registration of trade unions and employers’ organisations. √ - Regulates the rights of trade unions and facilitates √ collective bargaining. √ - Regulates the effectiveness of bargaining councils √ and statutory councils. √ - Allows workplace forums √ where employees may participate in decision making. √ - Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) to resolve labour disputes √ through statutory conciliation, mediation and arbitration. √ - Endorses the right to strike against retrenchments, √ and facilitates labour disputes. √ - Clarifies the transfer √ of contracts of employment procedures. √ - Establishes Labour Courts and Labour Appeal Courts √ to deal with labour issues. √ - Offers codes √ of good practice. √ - Deals with √ strikes and lockouts and workplace forums. √ - Establishes workplace forums to promote √ the interest of all employees in the workplace whether they belong to a trade union or not. √ - Any other relevant answer related to the purpose of the Labour Relations Act Max. (6) [60] Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com 12 BUSINESS STUDIES (EC/NOVEMBER 2018) BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 3 2.2.1 3 2.2.2 9 2.2.3 6 2.3 4 2.4 8 2.5 6 2.6.1 3 2.6.2 6 2.6.3 6 2.7 6 TOTAL 60 QUESTION 3: BUSINESS VENTURES 3.1 Success factors - Sustainability √ - Profitability √ - Customer base √ - Any other relevant answer related to the success factors of a business venture NOTE: Mark the first THREE (3) only. (3 x 1) (3) 3.2.1 Quotation from the scenario She took a calculated risk by resigning from her teaching post / she opened her own homework centre √ Max. (1) 3.2.2 Qualities of an entrepreneur - Committed √ - Perseverance √ - Ability to adapt quickly √ - Desire for responsibility √ - Good management and leadership √ - Confidence in the ability to succeed √ - High levels of energy √ - Passion √ - Organisational skills √ - Willpower to overcome obstacles √ - Opportunity-seeking √ - Dreamer with clear visions √ - Patience √ - Good communication skills√ - Ambitious √ - Enthusiastic √ - Hard worker √ - Honest √ - Any other relevant answer related to the qualities of an entrepreneur NOTE: 1. Mark the first FOUR (4) only. 2. Do not award mark for ‘taking calculated risks’. (4 x 1) (4) Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 13 3.3 Factors to consider before starting a business - Culture of the organisation √√ - Ensure the code of conduct is in place √√ - Provision for on-going training √√ - Possible environmental changes √√ - Possible risk factors √√ - Planning and minimising the environmental impact on the business √√ - Action plan to satisfy the needs of customers √√ - Cutting of costs on unnecessary waste and expenditure √√ - The sources of raw materials/suppliers √√ - The sources of funding that the business would use √√ - The form of ownership that will be used by the business √√ - The registration of the business √√ - The location/business premises to be used √√ - Consumer services √√ - Possibility of business growth √√ - Possibility of saving costs √√ - Any other relevant answer related to the factors that must be considered before starting a business. NOTE: Mark the first FOUR (4) only. (4 x 2) (8) 3.4 3.4.1 Meaning of an action plan - An action plan is a record of activities √ showing how those activities will be organised √ to achieve the goals set out in the business plan. √ - Is a planning and a monitoring tool √ that specifies what tasks must be done by whom, when and with what resources √ in order to reach specific goals. √ - Is a process that will help to focus ideas √ and to decide on the steps to achieve a particular goal. √ - Any other relevant answer related to meaning of action plan. Max. (4) 3.4.2 Importance/Advantages of an action plan - It enables projects to be completed √ within the specified time √ - It helps the person responsible for achieving certain goals √ to be organised. √ - It is a control measure against which standards and performance √ can be measured. √ - It prioritises activities √ according to importance. √ - It turns plans √ into actions. √ - Identify problems √ that could occur. √ - Acts as a monitoring tool √ that makes it possible to check Progress. √ - Any other relevant answer related to the importance/advantages of an action plan. Max. (8) Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com 14 BUSINESS STUDIES (EC/NOVEMBER 2018) 3.4.3 Sources of financing - Equity capital (own funds) √√/Money the owners of a business invest in the business/Owner’s savings/Shares issued, Retained profit. √√ - Debt/loans √√/Money that has been borrowed √√ - Loans from family or friends. √√ - Bank loans. √√ - Mortgage √√/a particular type of bank loan that is used to buy property. √√ - Debenture √√/the company borrows money from the public. √√ - Lease/Hire purchase √√/involves monthly payments by the business for use of vehicles or equipment. √√ - Overdraft √√/a bank allows a business to take out more money than it has in its bank account. √√ - Trade credit √√ suppliers who provide goods and services to the business are often willing to wait a certain period for payment. √√ - Other sources: o ‘Grants √√/money’ made available by government for small developing businesses. √√ o ‘Venture capital √√/wealthy’ business people who want to invest in promising small businesses in return for a profit share in the business. √√ o ‘Angel funding √√/financing’ is given for an ownership share in the business at its start-up. √√ - Any other relevant answer related to the sources of funding NOTE: Mark the first FOUR (4) only. (4 x 2) (8) Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 15 3.5 Differences between private and public company PRIVATE COMPANY PUBLIC COMPANY - May not offer shares √ to the general - Trades its shares publicly √ on public. √ the Johannesburg Securities Exchange. √ - Name must end √ with Proprietary - Name must end √ with Limited/(Pty) Ltd. √ Limited/Ltd. √ - Financial statements must be - Annual financial statements √ independently reviewed √ but they need need to be audited. √ not be audited. √ - Does not need to publish a prospectus √ - Have to register and publish √ a as it cannot trade its shares publicly. √ prospectus with the CIPRO. √ - The company is not required to raise √ - Must raise a minimum the minimum subscription/ issue subscription prior √ to minimum shares. √ commencement of the company. √ - Any other relevant answer related to a - Any other relevant answer private company. related to a public company Submax. (6) Submax. (6) NOTE: 1. The answer does not have to be in a tabular format, but the differences must be clear. 2. Award a maximum of SIX (6) marks if differences are not clear. /Mark either private company or public company only. Max. (12) 3.6 Benefits of establishing a company over other forms of ownership - A company has its own legal status√ and is protected unlike sole proprietors and partnerships. √ - A company has continuity √ of existence. √ - Shareholders’ private assets are protected √ as they have limited liability. √ - Companies have legal constraints √ and more accountability than sole proprietors and partnerships. √ - A company may have more investors √ to fund the setting up of the business. √ - Shareholders are able to buy √ and sell shares freely in a public company. √ - Shareholders share in the profits of the company √ through dividends. √ - The company is managed by a qualified √and competent board of directors.√ - A company is less likely to use consultants √ as it has a larger pool of skills and expertise. √ - Companies have a better √ cash flow. √ - Directors do not have to take out personal loans √ to grow the business. √ - Company shares can be √ transferred /bought/sold. √ - Companies have tax benefits √ other enterprises do not have. √ - Any other relevant answer related to the benefits of establishing a company over other forms of ownership. Max. (8) Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com 16 BUSINESS STUDIES (EC/NOVEMBER 2018) 3.7 Reasons why an entrepreneur may decide to purchase an existing business - The buyer can investigate the part record of the company, the profit and finances. √√ - Easier to raise finance if the business has a good history/image. √√ - Immediate cash flow as there are already established customers. √√ - Market research has already been done and there ais an established customer base. √√ - Distribution, supply links and staff are already established/established networks/experienced staff. √√ - The market is not being further divided by an extra business √√ - Many problems have already been solved. √√ - Any other relevant answer related to why an entrepreneur may decide to purchase an existing business. NOTE: Mark the first TWO (2) only. (2 x 2) (4) [60] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 3 3.2 5 3.3 8 3.4.1 4 3.4.2 8 3.4.3 8 3.5 12 3.6 8 3.7 4 TOTAL 60 Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 17 QUESTION 4: BUSINESS ROLES 4.1 Stages of team development - Forming √ - Storming √ - Norming √ - Performing √ - Mourning/Adjourning √ - Any other relevant answer related to the stages of team development NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 4.2 4.2.1 Causes of conflict from the scenario - Shortage of resources √ - Poor communication √ - Constant changes √ NOTE: Mark the first THREE (3) only. (3 x 1) (3) 4.2.2 Functions/Roles of workplace forum to resolve conflict - To promote the interests √ of all employees in the workplace. √ - To promote efficiency in the workplace √ through co-operation. √ - To be consulted by an employer √ and to reach consensus about working conditions. √ - To participate in decision-making √ related to working conditions. √ - Any other relevant answer related to the functions/roles of the workplace forum to resolve conflict. Max. (8) 4.3 Contemporary conflict management theory - Conflict is a normal consequence of human interactions √ and the process of change. √ - Conflict can be transformative √ and lead to positive organisational change. √ - Conflict should be managed √ through the use of conflict management skills. √ - Management uses its skills to negotiate and collaborate √ in order to achieve a win-win situation. √ - Conflicts are inevitable √ between human beings. √ - Conflicts are often√ beneficial. √ - Conflicts are the natural √ result of change. √ - Conflicts can √ and should be managed. √ - Any other relevant answer related to the contemporary conflict management theory. Max. (6) 4.4 4.4.1 Meaning of stress and crisis Stress - The body’s reaction √ to a change √ that requires a physical, mental or emotional adjustment or response. √ - The adverse reaction √ people have to excessive pressures √ or other types of demands placed on them at work. √ - Is the way the body reacts √ to situations √ that a person finds difficult to control. √ - Any other relevant answer related to defining stress. Submax. (2) Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com 18 BUSINESS STUDIES (EC/NOVEMBER 2018) Crisis - Is a time √ of intense difficulty, trouble, or danger. √ - An event √ that can within a short period of time, √ harm the business’s stakeholders, its property, finances or its reputation. √ - Any other relevant answer related to defining a crisis. Submax. (2) Max. (4) 4.4.2 Causes of stress - Work overload √√ - Long working hours √√ - Time pressures √√ - Deadlines/incompetent managers √√ - Unpleasant/Dangerous tasks √√ - Lack in participation in decision-making/control √√ - Lack of promotion opportunities √√ - Weak and careless supervision √√ - Bullying/harassment/violence √√ - Poor communication/leadership √√ - Any other relevant answer related to causes of stress in the business environment Max. (6) 4.4.3 Ways businesses can deal with businesses-related crisis - Businesses should respond appropriately and quickly to lessen the effects of the crisis situation. √√ - Prevent/try to stop the crisis from happening √√ - Assess/If the crisis happens, face up to it and quickly find out what has happened without over-reacting. √√ - Plan/Identify and prioritise the actions required √√ - Evaluate the damage/situation. √√ - Inform/Provide accurate and correct information √√ - Support/Guide others through the situation by providing training and support. √√ - Resolve any conflict of interest. √√ - Be sensitive to the people concerned. √√ - Regain control/Manage the situation in a calm manner until the crisis is over. √√ - Obtain expert advice if the crisis falls outside the business’ scope of expertise. √√ - Any other relevant answer related to ways that businesses can deal with business-related crises Max. (6) 4.5 Rights-based approach as theory of ethics - Ethics and behaviour are motivated √ by promoting the rights of people. √ - Basic rights of people are identified and protected √ e.g. right to freedom and life. √ - Aims √ at promoting and protecting human rights. √ - Focuses on whether the decision √ is right or wrong. √ - Focuses on process √ and outcomes. √ - Works towards outcome √ and process goals. √ - Recognises that rights can only be realised √ with empowerment. √ - Any other relevant answer related to rights-based approach. Max. (8) Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 19 4.6 4.6.1 Ways in which Eastern Cape Hardware assists abused women and children - Group counselling √ - Legal advice √ - Entrepreneurial programmes √ NOTE: Mark the first THREE (3) only. Max. (3) 4.6.2 Citizenship roles and responsibilities of ECH - Social responsibility √ - Environmental sustainability √ - Economic prosperity √ - Product stewardship √ - Procurement √ - Product access √ - Dualistic economy, apartheid legacy, poverty and HIV/Aids √ - Any other relevant answer related to the citizenship roles and responsibilities that ECH need to perform within the business environment NOTE: Mark the first FOUR (4) only. Max. (4) 4.6.3 Role that ECH can play in social and economic development of communities - Offering training √ to community members. √ - Involvement √ in community upliftment programmes. √ - Offering counsellors √ to council HIV and Aids patients and affected families to help them cope emotionally. √ - Involvement in feeding schemes √ to distribute food donated by businesses. √ - Active role √ in social welfare projects in the community. √ - Help to solve √ environmental problems. √ - Funding education √ by providing scholarships and bursaries √ - Encouraging employee √ volunteering. √ - Educational development √ of staff. √ - Funding √ local literacy programme. √ - Any other relevant answer related to role that ECH can play in development of communities. Max. (8) [60] Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com 20 BUSINESS STUDIES (EC/NOVEMBER 2018) BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2.1 3 4.2.2 8 4.3 6 4.4.1 4 4.4.2 6 4.4.3 6 4.5 8 4.6.1 3 4.6.2 4 4.6.3 8 TOTAL 60 QUESTION 5: BUSINESS OPERATIONS 5.1 Aspects in an employment contract - Personal details of the employee √ - Details of the business/employer, e.g. name/address, √ etc. - Job title/Position √ - Job description √ - Job specification √ - 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 that should be included in the employment contract NOTE: 1. Mark the first FOUR (4) only. 2. Allocate a maximum of ONE (1) mark for each aspect when examples are used. (4 x 1) (4) Copyright reserved Please turn over ### Page 21 Downloaded from hlayiso.com (EC/NOVEMBER 2018) BUSINESS STUDIES 21 5.2 Purpose of induction - Introduce new employees to management/colleagues √ to establish relationships with fellow colleagues at different levels. √ - Create opportunities for new employees √ to experience/explore different departments. √ - Explain safety regulations and rules, √ so that new employees will understand their role/responsibilities in this regard. √ - Communicate information √ about the products/services of Sipho Traders √ - Allow new employees the opportunity to ask questions √ that will put them at ease/reduce insecurity/anxiety/fear √ - Make new employees feel welcome √ by introducing them to their physical work space. √ - Give new employees a tour/information √ about the layout of the building/office √ - Improve skills √ through in-service training. √ - Familiarise new employees √ with the organisational structure/their supervisors √ - Ensure that employees understand their roles/responsibilities √ so that they will be more efficient/productive. √ - Communicate business policies √ regarding ethical/professional conduct/ procedures/employment contract/conditions of employment, √ etc. - Any other relevant answer related to the purpose of induction. Max. (8) 5.3 5.3.1 External recruitment √ Submax. (1) Motivation: The post was advertised in the local newspaper. √√ Submax. (2) Max. (3) 5.3.2 Role of the applicant/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. √ - Any other relevant answer related to the role of the applicant/interviewee during the interview. Max. (8) 5.3.3 Placement procedure - HA should outline the specific responsibilities of the new position, including the expectations/skills required for this position. √√ - Determine the successful candidate’s strengths/weaknesses/ interests/skills by subjecting him/her to a range of psychometric Tests. √√ - Determine the relationship between the position and the competencies of the new candidate. √√ - Any other relevant answer related to the placement procedure Max. (6) Copyright reserved Please turn over ### Page 22 Downloaded from hlayiso.com 22 BUSINESS STUDIES (EC/NOVEMBER 2018) 5.4 Aspects of production planning - Planning √ - Routing √ - Scheduling √ - Loading √ - Any other relevant answer related to the aspects of production planning. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 5.5 Characteristics of mass production - Products are made in large quantities √ and are identical or standardised. √ - Products move along assembly lines/automatic conveyor belts √ through a series of workstations. √ - There is division of labour, √ workers are low or semi-skilled and carry out repetitive tasks. √ - Special, single-purpose machines are used √ use of technology and robotics is also common. √ - Products need a large, √ regular demand. √ - Machines are to be well arranged √ and balanced so that there is a continuous flow of goods and effective use of floor space in the factory. √ - Any other relevant answer related to the characteristics of mass production. Max. (8) 5.6 Ways to comply with the Occupational Health and Safety Act - Employers who employ more than twenty employees must appoint at least one health and safety representative for every 100 employees √√ - Ensure health and safety of persons at work and during the use of plants and machinery √√ - Workers must be provided with protective gear to protect themselves against dangerous situations √√ - First-aid boxes must be available at the workplace and in the factory √√ - Machinery must be maintained at regular intervals and repaired promptly √√ - Any other relevant answer related to ways in which businesses can comply with the Occupational Health and Safety Act, (No 85 of 1993). Max. (6) Copyright reserved Please turn over Text truncated here. 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