Business Studies Grade 11 April Test 2021 Paper & Memo

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Downloaded from hlayiso.com Business Studies 2 April 2021 Common Test NSC INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections SECTION A: COMPULSORY SECTION B: Consists of THREE questions Answer any TWO of the THREE questions in this section. SECTION C: Consists of TWO questions Answer ONE of the TWO questions in this section. Read the instructions for each question carefully and take particular note of what is required. Number the answers correctly according to the numbering system used in this question paper. No marks will be awarded for answers that are numbered incorrectly. Except where other instructions are given, answers must be in full sentences. Use the mark allocation and nature of each question to determine the length and depth of an answer. Use the table below as a guide for mark and time allocation when answering each question. SECTION QUESTION | MARKS TIME A: Objective-type questions COMPULSORY 1 20 20 minutes B: THREE direct/indirect- type 2 20 20 minutes questions 3 20 20 minutes CHOICE (Answer any TWO) 4 20 20 minutes C: THREE essay-type questions 5 40 30 minutes CHOICE (Answer any ONE essay) 6 40 30 minutes TOTAL 100 90 minutes Begin the answer to EACH question on a NEW page, for example QUESTION 1 — new page, QUESTION 2 — new page, et cetera. You may use a non-programmable calculator. Write neatly and legibly. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies 3 March 2021 Common Test NSC SECTION A (COMPULSORY) QUESTION 1 1.1. Various options are provided as possible answers to the following questions. Write down the question number (1.1.1-1.1.5) and the correct letter next to it ONLY. Example: 1.1.6 A 1.1.1 A... occurs when two companies join together and form one new business. A takeover B mergers Cc acquisitions D alliances 1.1.2 XYZ Construction Company produces concrete pallets and is classified as the ... sector. A informal B primary Cc economic D secondary 1.1.3. Any act of dishonesty such as bribery/collusions, etc is known as ... A mismanagement of funds B fraud Cc corruption D theft 1.1.4 The name of the ... company must end with the letters INC. A. personal liability B. partnership Cc. private De: public 1.1.5. The method whereby a business pays for the use of an asset is knownas ... A franchising B leasing ie outsourcing D vending (5x2) [10] Copyright reserved

Downloaded from hlayiso.com Business Studies 4 April 2021 Common Test NSC 1.2 Complete the following statements by using the word(s) in the list below. Write only the word(s) next to the question number (1.2.1—1.2.5) in the ANSWER BOOK. workplace forum; patent; stamp; trade union; directors; shareholders; copyright; lessor; trade mark; lessee 1.2.1 A... is an employee oraganisation that focuses on improving working conditions. 1.2.2 A unique word/symbol/phrase used to identify manufacturers products is known asa... 1.2.3 Knowles Snowman was granted an exclusive known as ... for his new invention of solar geysers. 1.2.4 Aprivate company is managed by the board of ... 1.2.5. The ... is the person who owns the asset and !end it out for use at a price. (5x2) (10) TOTAL SECTION A: [20] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies 5 April 2021 Common Test NSC SECTION B Answer ANY TWO questions in this section. NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose. The answer to EACH question must start on a NEW page, for example QUESTION 2 on a NEW page, QUESTION 3 on a NEW page, et cetera. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 List any TWO components of the macro environment. (2) 2.2 Read the scenario below and answer the questions that follow. LOMBARD COSMETICS (LC) Lombard Cosmetics vision and mission statements are not implemented in a way that shapes its internal environment. Gert, the CEO of the business also needs to be trained on some managerial aspects. 2.2.1 Identify any TWO challenges of the micro environment impacting on LC’s operations. Support your answer by quoting from the scenario above. (6) Use the table below as a GUIDE to answer QUESTION 2.1.1 above. CHALLENGES OF THE MICRO MOTIVATIONS ENVIRONMENT 1 2.3. Discuss the negative impact of piracy on businesses. (8) 2.4 Advise businesses on the relationship between the primary, secondary and tertiary sectors. (4) [20] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies 6 April 2021 Common Test NSC QUESTION 3: BUSINESS VENTURES 3.1 3.2 3.3 3.4 Copyright reserved Identify the form of ownership applicable in EACH statement below: 3.1.1 ABC Ltd listed its shares with the Johannesburg Securities Exchange (JSE). 3.1.2 Eskom has the government as its major shareholder. Read the scenario below and answer the questions that follow. SAMANTHA CREATIONS (SC) Samantha Creations specialises in the manufacturing of ceramic tiles. Samantha is the sole owner of the business and a hard working person. 3.2.1 Identify the form of ownership illustrated in the scenario above. 3.2.2 Explain the disadvantages of the form of ownership identified in QUESTION 3.2.1 above. Discuss the advantages of Franchising. Advise businesses on the contractual implications of outsourcing. (2) (2) (2) (6) (4) (4) [20] Please turn over

Downloaded from hlayiso.com Business Studies i Apri! 2021 Common Test NSC QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1. Outline the purpose of Labour Relations Act (LRA), 1995 (Act 66 of 1995). (4) 4.2 Read the scenario below and answer the questions that follow. TOM THUMB MANUFACTURERS (TTM) Tom Thumb Manufacturers specialises in the production of ballroom gowns. Recently, the management of TTM had to lockout some workers who stopped working due to salary disputes. 4.2.1 Identify the type of industrial action TTM employees embarked on from the scenario above. (2) 4.2.2 Elaborate on the meaning of the industrial action identified in QUESTION 4.2.1 above. (4) BUSINESS VENTURES 4.3. Explain the advantages of leasing. (6) 4.4 Advise businesses on the aspects that should be included in a prospectus. (4) [20] TOTAL SECTION B: [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies 8 April 2021 Common Test NSC SECTION C Answer ONE question in this section. NOTE: Clearly indicate the QUESTION NUMBER of the chosen question. The answer to EACH question must start on a NEW page, for example QUESTION 5 on a NEW page, QUESTION 6 on a NEW page, etcetera. QUESTION 5: BUSINESS ENVIRONMENTS Business operations are influenced by micro, market and macro environments. Businesses have full control over the components of micro environments and limited control over market environment. They also benefit from being involved in the macro environment. Write an essay on business environments in which you include the following aspects. ° Outline the components of the micro environment. ° Explain why businesses have full control over the micro environment and less control over market environment. . Discuss challenges of the market environment. ° Advise businesses on the benefits of being involved in the macro environment. [40] QUESTION 6: BUSINESS VENTURES (FORMS OF OWNERSHIP) Nalini and Nana own a successful restaurant as partners known as “African Delights”. After reviewing their financial statements, the partners have decided that they want to change to a new form of ownership with legal personality and limited liability. A business adviser has recommended that they should consider a private company as compared to a public company. Write an essay on the forms of ownership in which you include the following aspects. ° Outline the disadvantages of a partnership. e Discuss the advantages of a private company. ° Tabulate the differences between the private and public company. . Advise Nalini and Nana on the disadvantages of a public company. [40] TOTALSECTIONC: [80] TOTAL MARKS: [100] Copyright reserved

KWAZULU-NATAL PROVINCE CATION REPUBLIC OF SOUTH AFRICA. NATIONAL SENIOR CERTIFICATE GRADE 11 1 Pee weeaaeesey a BUSINESS STUDIES * : COMMON TEST : | : APRIL 2021 : 5 MARKING GUIDELINES : Semnene eeegeessesees ssase geese MARKS 4 100 4", Hours | These marking guidelines consist of 18 pages. Copyright reserved Please turn over el) Downloaded from hlayiso.com : BSTD GE Il +10 Business Studies April Common Test 2024 2 Marking Guidelines NOTES TO MARKERS iF 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 source . Original ° A different approach is used NOTE: SECTION A: . There are no alternative answers. . Each question has only one correct answer. ri 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 ofthe maximum _ of two marks.) 3. The word ‘sub-max’ is used to facilitate the allocation of marks within a question or sub-question. 4 4. 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. 5. In an indirect question, the theory as well as the response must be relevant. and related to the question. iF No additional credit must be given for repetition of facts. Indicate with an R. 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 memo. Only the total for each question should appear in the left-hand margin next to the appropriate question number. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Studies 3 April Common Test 2021 Marking Guidelines SECTION B 8.1 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. 8.2 If two facts are written in one sentence, award the candidate FULL credit. Point 10.1 above still applies. 9. Where the number of facts are specified, questions that require: candidates to ‘explain/discuss/ describe’ will be marked as follows . Heading 2 marks . Explanation: 1 mark (or as indicated in the marking guideline). . The ‘heading’ and ‘explanation’ are given separately to facilitate mark . allocation. 10.2 If the number of facts is not specified, the candidate must be informed by the nature of the question and the maximum marks allocated 10.3 If candidates are required to provide their own examples/views, brainstorm this to come up with alternative answers 10.4 ONE mark will be awarded for answers that are easy to recall, requires. one-word answers, or is quoted directly from scenario/case study. This applies to SECTIONS B and C in particular. Copyright reserved Please turn over Business Studies 4 April Common Test 2021 Marking Guidelines SECTION C 14.1. The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: 32 Conclusion Insight 8 TOTAL 40 11.2 Insight consists of the following components: Layout / Is there an introduction, body, proper paragraphs | 2 structure: and a conclusion? Analysis and Learners’ ability to break down the 2 interpretation question/interpret it correctly to show understanding of what is being asked. 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 (Zero/No '-S') NB: 1. If no '-S' is indicated, award the maximum TWO (2) marks. 2. Where a candidate answers less than 50% of the question with relevant facts, one -S appears in the left margin, award a maximum of ONE (1) mark Originality: Examples, recency of information, current trends | 2 and developments. TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY (8 + 32) 8 40 Copyright reserved Please tum over

Business Studies SECTION A QUESTION 1 14 14.4 BW 11.2 DW 11.3 CW 114 AW 115 BW 1.2 4.2.1 trade unionvV 1.2.2. trade mark WW 1.2.3 patentvv 1.2.4 directorsvV 1.2.5 lessor Copyright reserved Downloaded from hlayiso.com 5 Marking Guidelines April Common Test 2021 (5x2) (10) (5x2) (10) TOTAL SECTION A: [20] BREAKDOWN OF MARKS QUESTION 1 MARKS. 44 10 4.2 10 TOTAL 20 Please turn over Business Studies 6 April Common Test 2021 Marking Guidelines SECTION B Mark ONLY the FIRST TWO questions answered in this Section. QUESTION 2: BUSINESS ENVIRONMENTS 24 Components of the macro environment Physical/Natural environment V Economic environment V Socia¥/Cultural/Demographic environment ¥ Technological environment ¥ Legal/Political ¥ Environmental/Global environment ¥ Institutional environment NOTE: Mark the first two (2) components only Any 2x 4 (2) eee ceee 2.2.1 Challenges of the market environment from the scenario CHALLENGES OF THE MICRO MOTIVATIONS ENVIRONMENT . Lack of vision and missionVV | Lombard Cosmetics vision and mission statements are not implemented in a way that shapes its internal environment. ¥ 2. Lack of adequate Gert, the CEO of the business also needs to management skillsvv. be trained on some managerial aspects V Submax (4) Submax (2) 2.3 Copyright reserved Max (6) NOTE: 1, The answer does not have to be in tabular format. 2. eaee oe Award marks for challenges of the micro environment even if the quotes were incomplete. 3. Do not award marks for the motivations if the challenges of the market environment were incorrectly identified. Negative impact of piracy May lead to job lossesv that businesses will not be able to sustain. ¥ Businesses lose sales and incomev which lead to cash flow problems May cause damagev to the image of the businessV Businesses are reluctant to develop new talentv due to the high risk involvedv Businesses lose outy on productivity and profits¥ Drives = the prices of products¥ in order to compensate for the loss in sales t{ can undermine the music / film industry¥ as they lose moneyV Any other relevant answer related to the impact of piracy on businesses. (8) Please turn over

Business Studies 24 7 April Common Test 2021 Marking Guidelines The relationship between the primary, secondary and tertiary sectors The secondary sector depends on the primary sector for raw materials and productsvV The primary sector in tum depends on the secondary sector for manufactured goods, such as machinery /equipment / fertilisersvV The secondary sector processes the raw materials obtained from the primary sector into more useful products VV The primary sector is dependant on the tertiary sector for its customer needs WV The tertiary sector depends on the primary sector for raw materials that do not need processing by the secondary sectorv: The secondary sector depends on the tertiary sector for a variety of services such as banking and insurance covervV The tertiary sector depends on the secondary sector for manufactured goods, such as office machines /office furniture /stationeryVV Any other relevant answer related to the relationship between the primary, secondary and tertiary sectors. Max (4) TOTAL: BREAKDOWN OF MARKS QUESTION 2 MARKS 24 2 2.2.4 6 2.3 8 24 4 TOTAL 20 Copyright reserved Please turn over Business Studies QUESTION 3: 3.44 3.1.2 3.3 -Downloaded from hlayiso.com 8 April Common Test 2021 Marking Guidelines BUSINESS VENTURES Public company VW State-owned companyVV (4) Sole trader/proprietorvV Max(2) Disadvantages of sole trader/proprietor Cash flow is often a problem” which may lead to business failurev Growth of business can be restrictedV due to lack of capital Not a legal entityY and no continuity¥ Difficult to attracty highly skilled and knowledgeable empioyeesV The owner is responsiblev for providing all the capital neededV If the owner does not have enough knowledge/experiencev the business may failY The owner is responsible for al} debts“ incurred by the business.” Any other relevant answer related to disadvantages of a sole trader/proprietor Max (6) Advantages of franchising It allows businesses to buy a well-known brandwWwhich guarantees sales and good returnv Purchasing a franchise is cheapervthan starting a new business¥ Franchising reduces long-term financial riskv A business is based on a proven ideaVand the product and service are tried and testedV A franchisee can get support from the franchisor¥which often includes training, advice, and marketingY Forms of financing that are not available to the publicVare often available to franchiseesY Purchasing a franchise could be cheapervthan starting your own businessV Businesses are able to use a recognised brand name and registered trademarkv,which helps with advertising and marketingY The systems/operations/goods and services Vare well established¥ Copyright reserved Please tum over

Downloaded from hlayiso.com April Common Test 2021 Business Studies April Common Test 2021 Business Studies Marking Guidelines Marking Guidelines « There is often access to group supportvfrom other franchisees Vand a network of communication and legal advicev Established suppliers give bulk discounts as they form part of a larger groupY « The marketing and advertising costs are shared so they are often QUESTION 4: MISCELLANEOUS lower than for a non-franchised business V « Management advice is often providedyso it is not necessary to be a business expert¥ «Any other relevant answer related to disadvantages of franchising. BUSINESS ENVIRONMENTS Max (4) 4.1 Purpose of the Labour Relations * Offers code of good practice. VV ‘ : «Promotes fair employment practices. VW 3.4.1 Contractual implications of outsourcing « Acontract will protect and regulate the rights and responsibilities of both parties involved. Some aspects that may be included in the Deals with strikes and lockouts and workplace forums. WW contract are: :, " ft ; * Outline the relationship between employees and employers. WW ® Anexact description of the service/product. V ie eae ployes dead * Clarifies the transfer of contracts of employment procedures. wW * Regulates the rights of trade unions and facilitates collective bargaining. WW «Promotes resolution of labour disputes. VW > Duration of the contract ¥ A detailed description of the duties and the responsibilities of wv both parties. V J Regulates the effectiveness of bargaining councils and statutory councils. > Confidentiality ™ ‘i lab Payment terms and conditions. ¥ * Establishes Labour Courts and Labour Appeal Courts to deal with labour ® Penalties for not delivering the agreed services. ¥ issues. WW + Any other reievant answer related to contractual implications of * Any other relevant answer to the purpose of the Labour Relations Act Max (4) outsourcing. Max (4) TOTAL: [20] 4.2 Types of industrial actions BREAKDOWN OF MARK ALLOCATION 4.2.1 Strike (2) 3.1.4 2 342 z 4.2.2 Meaning of a strike 3.2.4 2 * Astrike is when employees” stop working completely.” » Employees do not get paid “ for days spent on a strike.¥ 3.2.2 6 * Strikes represent the final stage of disputes / disagreements” 3.3 4 between management and employees.” The purpose of a strike is to force employers to agree v to the 34 4 demands of the workers” TOTAL 20 : * Any other relevant answer related to the meaning of a strike ! Max (6) Gopyright reserved Copyright reserved Please turn over Please turn over

Business Studies 14 BUSINESS VENTURES 4.3. Advantages of leasing Downloaded from hlayiso.com April Common Test 2021 Marking Guidelines The business gains the use of the asset with less initial expenditure ¥ than needed if the asset were purchased. ¥ The business can acquire the latest technology ¥ without having to invest large amounts of capital. V The business does not have to carry the risk V of expensive equipment becoming obsolete. v/The leased items are returned V to the lessee at the end of the term of the lease. ¥ For the lessee the lease payments ¥ are tax deductible. ¥ Leasing improves the cash flow ¥ of the business. V Leasing is regarded as an expense to the lessee V and therefore is not regarded as debt. ¥ Leases are usually easier to obtain v and have more flexible terms than loans for buying equipment. ¥ The lessor normally covers V the maintenance and replaces any damaged Business Studies 12 QUESTION 5: April Common Test 2021 Marking Guidelines SECTION C Mark only the First question answered in this Section. BUSINESS ENVIRONMENTS 5.1 Introduction . The micro environment consists of various components fully controlled by businesses.v . Businesses have limited / no control over the challenges from the market and macro environments. ¥ . Businesses must identify challenges from the market environment and put control measures in place.~ . Many businesses benefit from getting involved in the macro environment.v . Any other relevant introduction related to the components of micro / challenges of the market environment benefits of macro environment. parts or equipment. V Any (2x1)(2) * The asset can be retumed ¥ to the lessor when it is no longer needed. ¥ * Makes budgeting and planning easier ¥ and it provides better control over 5.2 Components of the Micro environment cash flow. Vision and mission statement VV * Any other relevant answer related to the advantages of leasing. * Goals and objectivesvV : Max(6) * Organizational culturevY 4.4 Aspects that should be included in a prospectus * Organizational resources VV * Company overview, including the vision, mission and goals of a businessV¥ ¢ Organizational structurevW © Product or service portfoliovW Hb ions * Market analysis and strategyVV D yuakeat. * Management team * Management and leadership VV «The risk and potential of the businessvV ‘ Max (10) * Available financial and share information * Company's assets and liabilitiesVV 5.3 Reasons why businesses have full control over the micro-environment Financial position VV ¢ Business owners and managersv have a great deal of contro! over the internal/micro * Profits and lossesvV environment of businessv, which covers day-to-day decisions V * Cash flowy 1 * They choose the suppliers¥ they purchase/which employees they hire/the products * Prospects for growthwv they sellV, and where they sell those productsV * Pre-incorporation contracts that have been signedVV ¢ They use their skills and resources Vto create goods and services that will satisfy a alee ea of ie acon existing and prospective customersV ateddindl etenecneh etd (4) * Accept any other relevant answer related to reasons why businesses have full control TOTAL: [20] over the micro-environment. Submax (6) BREAKDOWN OF MARK ALLOCATION 4 Reasons why businesses have limited control over the market environment. 2 * Market environment for a business includes¥ company related influencesY 7 ° The market environment refers to influences’ that have an impact on the success’ in 4 forming and keeping a sustainable businessV such as competition and suppliersV 20 * Businesses can influence their competitors¥ by increasing the quality of their products vin relation with competitor pricesv . Copyright reserved Copyright reserved Please turn over : Please turn over

Business Studies 13 5.4 Downloaded from hlayiso.com Aprit Common Test 2021 Marking Guidelines + The opposite can also be that suppliers’ raw materials can influence the quality of business products¥ ¢ Any other relevant answer related to reasons why businesses have limited contro} over the market environment. Submax (6) Max (12) Challenges of the market environment + Shortages of supply Vv Essential for a business to have a regular supply ¥ of all the materials that are inputs in the production process. Vv Any shortage V can have a seriously negative effect on production and profits. V Dissatisfied customers can damage the reputation V and threaten the future of the business. The business needs fo plan and communicate ¥ well so that any change in goods and services needed is fulfilled on time. V Any other relevant answer related to shortage of supply. Chalienge(2) Explanation(2) Submax. (4) Strong competition VV Businesses which sell similar/substitute products V pose a problem to/threaten the success of a business. ¥ Consumers will buy ¥ from the business where they get the most value for their money. V If a business is not able to match the quality of service/products and the price of its competitors, ¥ it will be in real danger. ¥ Businesses could find that they are unable to make sufficient profit when the demand is not high enough to support the supply of the same goods/ services. The business must ensure that it differentiates itself from its competitors ¥ in order to gain a competitive advantage. V The challenges around competitors can be industry rivalry where businesses aim to sell more than competitors, ¥ new entrants with better products/cheaper or better substitutesV Businesses should be aware of competitors V and their prices/influences/operation. V Any other relevant answer related to strong competition. Challenge(2) Explanation(2) Submax. (4) Changes in consumer behaviour vv A business is dependent on its customers ¥ /to purchase its products. ¥ Consumers are influenced by many factors V/ and are mostly unpredictable in their buying behaviour, 7 Consumers’ preferences and tastes can change ¥/ as fashions change as technology advances. ¥ Changes in consumer behaviour, s} ending habits, tastes and preferences V present an ongoing challenge to businesses. T The challenges include keeping up with Changes in consumer tastes and demand by doing research, ¥ finding ways to influence consumer demand /and ‘conducting /advertising ‘campaigns /and consumer surveys. V Copyright reserved Please turn over Business Studies 14 5.5 ew eee Copyright reserved April Common Test 2021 Marking Guidelines Businesses should be aware of and understand changes in demand and the behavioural patterns of consumers and adjust accordingly. ¥ Any other relevant answer related to changes in consumer behaviour. Challenge(2) Explanation(2) Submax. (4) Demographics and psychographic vv Consumers’ attitude, interest, opinions and lifestyle V determine the characteristics of the consumer, ¥ Itis difficult to determine the demographics/psychographics of thetarget market V because they change frequently. ¥ Business should be aware of the diversity of the markets V and the cultural and social influences on the choices people they make, The challenges include collecting/interpreting information about the target market ¥ and to use the data to develop a marketing strategy. ¥ Business need to study the attitudes. tastes and desires ¥ of the market. V The demographics and | psychographice can change quickly and businesses need to change just as quickly V if they want to retain their customers. ¥ Any other relevant answer related to demographics and psychographic. Challenge(2) Explanation(2) Submax. (4) Socio-cultural factors VV Social-cultural factors describe the common behaviour and attitudes ¥ of a particular society. ¥ As society changes ¥ so will the cultural values and practices of individuals, V Business must be aware of change V and that they can avoid threats and take advantage of the new opportunities that the change may present. ¥ : Business should be aware of social trends and influential campaigns ¥ that promote buying. V The challenge is to gather information about changes ¥ and to respond to them by adapting practices to maintain and increase its customer base. ¥ Any other relevant answer related to socio-cultural factors. Chailenge(2)} Explanation(2) Submax. (4) Mark the first FOUR (4) only. (4x4) Max(16) Benefits/advantages of invoivement in macro environment The business can more accurately predict future events, threats and opportunities that may arise. vv” The business can contribute to a healthier, more skilled and productive workforce. Vv’ It can protect natural resources and meet consumer needs in a sustainable way. vv The business can contribute to wealthier consumers. VV Reduced industrial conflict and increase productivity. “v The business can accurately promote a cause that is a concern to the society. vv Please tum over

Business Studies 15 5.6 Downloaded from hlayiso.com April Common Test 2021 Marking Guidelines The business can contribute its expertise and resources that can influence the public opinion. VY Any other relevant answers related to the benefit of involvement in macro environment Max (8) Conclusion . Businesses can influence the business environments in one way or the other, and need to take into consideration the components of the market environment. WW . Businesses must pay careful attention to challenges that are posed by market environment and devise strategies to overcome those challenges. VV . Businesses that get involved in macro environment may promote its image from the public and gain more support. VW . Any other relevant conclusion related to the components of micro / challenges of the market environment benefits of macro environment. Any (1x2) (2) QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS Introduction MAXIMUM _| TOTAL 2 components of micro environment Reasons why businesses have More control over the micro 12 environmentfess control over Max market environment 32 Challenges of the market 16 environement Benefits/advantages of involvement in macro 8 environment Conclusion INSIGHT Layout Analysis/Interpretation Synthesis Originality/Examples TOTAL MARKS 10 x) N]ypVfr) © 40 LASO - For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over Business Studies 16 April Common Test 2021 Marking Guidelines QUESTION 6: BUSINESS VENTURES 61 6.2 6.3 Introduction Businesses must examine their current form of ownership in line with their future plans / growth prospects. ¥ In a partnership partners are liable for debts of the business and their assets can be used to pay off the businesses debts. Private companies are suitable for individuals who wants to protect their private positions.“ Any other relevant introduction relating to the disadvantages of a partnerships/ advantages of a private company / differences between private and public company / disadvantages of a public company. Any (2x1) (2) Disadvantages of a partnership eeeee No separate legal entity. WW Partners are jointly and individually liable for the actions of the partners. WW Profits must be shared with others. VV Disagreements can occur because of shared decisions. WV The partnership may have a limited life. WW May end upon the withdrawal or death of a partner. WW Any other relevant answer related to the disadvantages of a partnership. Max (6) Advantages of a private company The private companyv does have a separate legal entity. ¥ There is continuity of existence ¥ if shareholders die/leave the company will continuev Shareholders have limited liability ¥ their assets cannot be used to pay of the company’s debtsv, they will only lose their initial capital investedV Itis easy to raise capital V by issuing more shares for saley There is a greater efficiency of managementv has directors are highly skilled and qualified individuaisV It is adaptablev to both small and large business. ¥ They are not required to file their annual financial statements¥ with the Registrar of Companies. ¥ Financial statements are not availablev to the general public. V All shareholders are directorsv, so that there is less need to seek shareholder approval for certain board decisions. ¥ Any other relevant answer related to the advantages of a private company. Max (14) Copyright reserved Please tum over

Business Studies 17 April Common Test 2021 Marking Guidelines 6.4 Tabulate differences between private and public company PRIVATE COMPANY PUBLIC COMPANY * May not offer shares V to the general ° Trades its shares publicly Vv on the public, ¥ Johannesburg Securities Exchange. ¥ « Name must end ¥ with Proprietary + Name must end V with Limited/Ltd. 7 Limited/(Pty) Ltd. V ¢ Financial statements must be « Annual financial statements V¥ need to be independently reviewed but they need audited. ¥ not be audited. v * Does not need to publish a prospectus Vas |» Have to register ba publish ¥ a prospectus it cannot trade its shares publicly. v with the CIPRO. ¥ * The company is not required to raise Vv the Must raise a minimum subscription prior Vv minimum subscription/ issue minimum to commencement of the company. ¥ shares. V * Any other relevant answer related to a « Any other relevant answer related to a private company. public company Sub max. (8) Sub max. (8) NOTE: 1. The differences must be clear. 2. Answers have to be in tabular format. { Max. (16) 6.5 Disadvantages of public company ° Costly for the company, has large amount of funds are spent on financial audits . A full report must be submitted to the major shareholders each year, this becomes time consuming for the company . Difficult and expensive to establish a public company as it is subjected to many legal requirements VV . Shareholders may be allowed little or no input into the affairs of the company depending on the type of shares purchased 4‘ ° Financial affairs must be shared with the public which could benef the * competitors’ VW . A public company is compelled to hold annual general meeting for its shareholdersv v . Directors fees increases the companies expenses and reduces profit. vv . Any other relevant answer related to disadvantages of a public company. Max. (10) 6.6 Conclusion . Private companies are able to raise capital more than the partnership. VW Copyright reserved Please turn over Downloaded from hlayiso.com Business Studies 18 April Common Test 2021 Marking Guidelines . Private companies are more sustainable in the future because of their unlimited continuity. v . Any other relevant introduction related to the components of micro / challenges of the market environment benefits of macro environment. Any (1x2) (2) BREAKDOWN OF MARKS Details Maximum | Total Introduction 2 Disadvantages of partnership 6 Advantages of private Company 14 Max 32 Tabulate differences between private and public 16 company Disadvantages of public company 10 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 or Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO — For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved