Business Studies Grade 11 NSC Prelim 2017 Paper & Memo

BY BUSINESS STUDIES GRADE 11 KZN — DEPT, OF EDUCATION GREENBURY SECONDARY SCHOOL THIRD CONTROL TEST — 2017 BUSINESS STUDIES - GRADE 11 EXAMINER : R NAIDOO/R GOVENDER/S DHOODHANATH MODERATOR : S DHOODHANATH/R GOVENDER/R NAIDOO NAME : 2017 SEPTEMBER CONTROLLED TEST MARKS : 100 DURATION : 1 HOUR INSTRUCTIONS AND INFORMATION 1. This paper consists of 5 printed pages. 2. There are 3 sections : ¢ SECTION A : COMPULSORY ¢ SECTION B : Consists of THREE questions. CHOOSE ANY TWO QUESTIONS. e SECTION C : ESSAY question. Consists of TWO questions. CHOOSE ANY ONE. . Use the SPECIAL ANSWER SHEET for Section A. . Start each question on a new page. 5. Tick(v) the questions answered on the special answer sheet. SECTION A: COMPULSORY. QUESTION ONE : (MULTIPLE CHOICE) 11 Various options are provided as possible answers to the following questions. Choose the correct answer and write only the correct letter next to the question number. E.G 1.1.11 B 1.1.1 Which one of the following is not a policy instrument in marketing? A) Product Policy B) Price Policy C) Financial Policy D) Distribution Policy 1.1.2 The manufacturing of a large quantity of a standardised article can be identified as production. A) Job B) Mass C) Batch D) Product 1.1.3 Purchasing an item such as a car, is an example of a good. A) Shopping B) Convenience C) Speciality D) Frequent Page Lof5 P.T.O/.....1.1.4 |

| i I i BUSINESS STUDIES GRADE 11 2017 SEPTEMBER CONTROLLED TEST 1.1.4 A quota on imports is .... A) A legal barrier that restricts imports from that country. B) A tax on imports. C) A limit on the quantity of a good that can be imported. D) Where a government gives grants to domestic business. 1.1.5 A production process is capital-intensive if .... A) The cost of machinery is small in comparison to the cost of the labour B) The costs of elements are established before production can take place. C) The costs are linked to the actual production of the goods or services. D) The cost of machinery is large in comparison to the costs of the labour (5x2=10markA. ) 1.2 Choose the correct word/s from those given in the textbox provided. Write only the correct word/s next to the question number. Direct channels Batch production Standardisation Mission statement Job production Distribution channels Vision statement Grading 1.2.1 Identifies the long-term goal of the company. 1.2.2 The producer sells goods through almost all available wholesale and retail outlets. \ 1.2.3 This production system is used for labour-intensive projects such as building bridges. ( ‘ 1.2.4 This production system is divided into different operations that each need to be completed before the next one starts. 1.2.5 This is when products are identical and made to specific standards. (5x 2=10 marks) TOTAL : SECTIONA : 20 marks P.T.O./..SECTION B Page 2 of 5

BUSINESS STUDIES GRADE 11 2017 SEPTEMBER CONTROLLED TEST SECTION B [ANSWER ANY 2 QUESTIONS QUESTION 2 — [BUSINESS VENTURES & ROLES] 2.1 READ THE EXTRACT BELOW AND ANSWER THE QUESTIONS THAT FOLLOW: TAKALANI TRADERS ~ SUCCESS STORY Takalani traders is owned by Penelope Kwenyama. Her business offers a variety of goods for sale to the public. Over the years Penelope, has established her business very well in her market. She is well applauded by her staff for her commitment and dedication in her business. Her ability to perserve through trying times is worthy of praise. Her creative and innovate ideas has won over her target market, and allowed for her to take calculated risks, To improve the image of the business and gain customer loyalty, her business has embarked on a number of | community projects. This has proved to be successful for Penelope has her sales and profits have doubled | _over the past years. 2.1.1 Identify from the extract above, any four(4) entrepreneurial qualities that Penelope displays. (4) 2.1.2 Give another name/term for “Corporate Citizenship.” (2) 2.1.3 According to the extract, state two(2) reasons why Penelope embarked on community projects. ; (2) 2.2 Tabulate the difference between Non-governmental organizations(NGO’S) and Community-based Organizations(CBO’S) . (4) 2.3 Explain, how individuals can play a positive role in their business community? (8) ; [20 MARKS] ( - QUESTION 3 — [BUSINESS.OPERATIONS] 3.1 Tabulate the differences between the following terms: 3.1.1 Imports and Exports (2) 3.1.2 E-commerce and E-marketing (2) 3.2 Explain the advantages of E-Marketing. (8) 3.3 Foreign marketing is marketing that is carried out in other countries so that the business’s exports are bought there. 3.3.1. Discuss any four(4) benefits that foreign marketing has on a business. (8) [20 MARKS] P.T.0./...QUESTION 4 Page 3 of 5

BUSINESS STUDIES GRADE 11 QUESTION 4 — [MISCELLANEOUS] BUSINESS VENTURES & ROLES 41 2017 SEPTEMBER CONTROLLED TEST | An entrepreneur is a person who is able to convert inputs into a successful output(profit) | 4.1.1 Explain the following key success factors: 4.1.1.1 Sustainability 4.1.1.2 Customer base 4.1.1.3 Profitability 4.2 (2) (2) (2) Advertising is the communication of a message about a product to increase sales. All advertisements must comply with the Advertising Standards Authority (ASA). 4.2.1 Discuss the “A.1.D.A” principles that is used in advertising. BUSINESS OPERATIONS 4.3 (8) price is R200, and the unit variable cost came to R100. Trim Manufacturers, is a business that manufacturer lawn mowers. The following costs were incurred by Trim Manufacturers. The fixed cost for the month was R2 500, selling 4.3.1 Calculate the break-even point? 4,3.2 Explain, the term “break-even point.” 4 © (2) [20 MARKS] TOTAL SECTION B: 20 X 2 = 40 MARKS Page 4 of 5 P.T.O./...SECTION C

BUSINESS STUDIES GRADE 11 SECTION C: ESSAY [ANSWER ANY ONE QUESTION] 2017 SEPTEMBER CONTROLLED TEST QUESTION 5: BUSINESS ROLES Mr Khumalo is an employee at Tongaat Huletts. His general manager has decided to give him the task to embark on a project for the community that would uplift the area and in doing so will also increase the reputation of his company. You have been appointed to enlighten Mr Khumalo about the following aspects with regards to Corporate Social Responsibility (CSR) that would make him understand the importance of the job assigned to him: ° ye Identify and explain any 2 principles of good co-operate citizenship e Explain the 3 P’s that CSR encompasses ¢ Discuss the 3 main aspects of CSR * Discuss how CSR would be implemented in the Micro, Market and Macro environment [40 MARKS] QUESTION 6: BUSINESS OPERATIONS Danone yogurt wants to launch their new flavour of watermelon yogurt onto the market. The owner is a bit confused on how to price their yogurt as it is unique compared to their other ranges. ( You are required to assist the owner of Danone yogurt with price determination. Enlighten him on the following aspects: ) ¢ Identify 4 internal and 4 external factors that affect price determination ° Identify and explain the.4 steps in price determination e Explain the 4 important questions to ask before deciding on the pricing policy ¢ Discuss the following pricing technique : > Cost plus pricing > Mark-up pricing > Target pricing > Break-even pricing [40 MARKS] ALL THE BEST! Page 5 of 5 GREENBURY SECONDARY SCHOOL DEPARTMENT OF COMMERCE

a ) GREENBURY SECONDARY SCHOOL THIRD QUARTERLY TESTS - 2017 SECTION A_- MEMORANDUM QUESTION ONE 11 111 1.1.2 1.1.3 1.1.4 1.1.5 1.2 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 pw BY cv CY pw VISION STATEMENT DISTRIBUTION CHANNELS 7 JOBPRODUCTION:- BATCH PRODUCTION STANDARDISATION GREENBURY SECONDARY SCHOOL & DEPARTMENT OF COMMERCE RSC MAHARAJ

SECTION B QUESTION 2 ~ [BUSINESS VENTURES & BUSINESS ROLES’ 2.1.1 ANY FOUR(4) ENTREPRENEURIAL QUALITIES FROM THE EXTRACT « Commitment and dedication’ e Perserve/perserverance / « Creativeandinnovate VW * Take Calculated risk/risk-taker “ (4) 2.1.2 GIVE ANOTHER NAME FOR “CORPORATE CITIZENSHIP.” © Corporate Social Responsibility 4“ (2) ( , 2.1.3 EXPLAIN WHY PENELOPE EMBARKED ON COMMUNITY PROJECTS (FROM EXTRACT) * Toimprove the image of the business“ ¢ Gain customer loyalty. (2) 2.2 NON- GOVERNEMENTAL ORGANISATIONS COMMUNITY-BASED ORGANISATIONS Operates without a profit motive and instead mostly _| Are organizations that serve the direct needs aim at developing and serving civil society. of specific communities, in response to specific problems and conditions. ~” a) 2.3 EXPLAIN, HOW INDIVIDUALS CAN PLAY A POSITIVE ROLE IN THEIR BUSINESS COMMUNITY? C ‘ e Being honest'’4nd trustworthy” e Forming good relationshipswith the community. . Respecting’the environment” e Creating opportunitiesfor the community and its members. e Supporting the wellness of employees. e Supporting the community. ¢ Contributing time and effort towards an identical cause. ¢ Contributing to the sustainable development of the community e Being proactive and getting involved. (8) Page 1 of 3

QUESTION 3 —[BUSINESS OPERATIONS] 3.11 IMPORTS EXPORTS It is when a product is broyant in form a Are products that are sent/sold over to a foreign | (2) foreign country for sale. country for sale. v 3.1.2 E-COMMERCE E-MARKETING Is the buying and selling of products over Is the marketing of product over the internet or (2) the internet or other electronic networks, / other electronic networks. / 3.2 ADVANTAGES OF E-MARKETING e Itcan be used to reach large and international audience” } e The costs of advertising’on the internet are lower if properly planned. e Itisan adaptable‘4nd flexible system” e = Itcanbe personalizedfor different audiences” © Itis easy to track and measure results. (8) 3.3.1 FOUR(4) BENEFITS OF FOREIGN MARKETING ° it can reach larger target market” It can increaseYnarket share 4 It can increas profits” It can means that downswings4n the domestic economy have less of an impact on the business, / There can be tax advantage¥ for exporters. The business may be able to take advantage of better transport and communication systems. The business may be able to use climate differences to its advantage. (8) Page 2 of 3

QUESTION 4 ~ [MISCELLANEOUS BUSINESS VENTURES & BUSINESS ROLES 4.1.1.1 SUSTAINABILITY . The business's ability to stay in operation in the future, will depend on its capturing the market share. 4/ 4.1.1.2 CUSTOMER BASE ¢ The business must be able to attract and retain its customers. It must offer affordable prices, so that they eliminate competitors and gain the market share 4.1.1.3 PROFITABILITY . The business must be able to make a profit. It does this by maintaining its customer base and sustaining itself in the long term. Lf 4.2.1 EXPLAIN THE “A.1.D.A” PRINCIPLES A - Attention 6f the consumer is attracted “ ] - Interest Gets the consumer examining the product 4 D - Desirevhakes the consumer want to own the product” A - Actionfesults in the consumer buying the product.// 4.3.1 CALCULATE BREAK-EVEN POINT 2500 / (200 ~ 100)/ @ =25 lawn mowers Nf 4.3.2 EXPLAIN THE TERM “BREAK-EVEN POINT.” e Is the point at which the total revenue(sales) equals the total costs of production process, (7 Page 3 of 3 (2) (2) (2) (8) (4) (2)

QUESTION 5: BUSINESS ROLES - - - Se - INTRODUCTION Businesses play an important tple in their communities simply by providing employment, producing goods and services and paying taxes. However, the responsibility of businesses today goes beyond just making a profit but also focusing on corporate social responsibility. ve max 2 BODY 1. PRINCIPLES OF GOOD COPORATE CITIZENSHIP Good relations vA A business should develop and maintain good relations with key stakeholders such as investors, employees, customers and suppliers. A business can play its role as a citizen effectively only if it is on good terms with these groups of people. Integrity VA ‘Integrity ‘means honesty and wholeness. A business demonstrates integrity by sticking to an ethical code“and being honest in its dealings. | Mindfulness A A business should be aware of the impact of its decisions and practices, { . ) both in and outside the officé. Mindfulness is Important as the business must carefully consider how to minimise any negative impact, but also how to promote any positive impact. Opportunities for V~% A busingss needs to create opportunities for employees to reflect on their reflections work.Reflection and evaluation allows a business to learn from the decisions it made in the past. This will help the business.to make better decisions in the future. max q 2. THE 3 P’S THAT CSR ENCOMPASSES A wv . Profitathe financial aspect of the business e People- the social aspect of the business nce, 6 Planet: the environmental aspect of the business “~~ 3. THREE MAIN ASPECTS OF CSR w - © How the business uses its products to promote health and well-being and increase the quality of life e How the business operates and includes social and environmental responsibility in its planning and strategic management ¢ Equity within the company and the incorporation of different communities in the production and distribution process ~ mow 4. IMPLEMENTATION OF CSR IN THE MICRO, MARKET AND MACRO ENVIRONMENT MICRO _. MARKET MACRO ® Thecreation‘ofa healthy e Following ‘¥dvertising * Job &eation” and safe wotkplace™~ standards . Scholarsh\¥s for young e The educational « Adopting kthical trading learners development Of staff standards ~~ e Funding of cultural and ® The paymenYof market sporting events ~~ related incentives \~ e Efficient energy usé aN () ¢ Waste control policies (h) meek (2

CONCLUSIONS All the information above describes the importance of CSR and how a business should go about deciding on the most suitable project. Mr Khumalo should now have a good idea about why his general manger has given him this task. “7 MARK ALLOCATION DETAILS MAXIMUM MARKS TOTAL Introduction MAX 32 Principles of good corporate citizenship 3 p’s that CSR encompasses 3 main aspects of CSR Implementation of CSR in the micro, market and macro environment Conclusion INSIGHT Layout Analysis Synthesis Originality NENIN | Ny

QUESTION 6: BUSINESS OPERATIONS INTRODUCTION The price of a good is important because if it is too high consumers will not want to buy it, and if it is too low then it will not be worthwhile for the business to produce it. The price of any to the budget of the target market or else the business will not make any sales, i BODY ‘oduct must be suitable MON 2. 1. INTERNAL AND EXTERNAL FACTORS THAT AFFECT PRICE DETERMINATION INTERNAL FACTORS EXTERNAL FACTORS e Business strategies “ e Production costs e Distribution costs e Economies of scale c& Competition The availability and price of substitute goods \y The general market price determined by forces of demand and supply ~ Government legislation 2 Trade practices wv The competition structure of the market The sales channels ~ The life cycle of the product ay) 2. FOUR STEPS IN PRICE DETERMINATION max $ Step1. Cost price ~ Refers to what it costs f@ make the pre dict. The cost-accounting department determinesthe cost price. The price charged for a product cannot be lower than the cost price. Step2. Market price This is the amount the market js willing to pay. The marketing department determinesthe market price using market rese¥fch that determines the demand for the product. Step3. Target price “ This is the price that the manufacttirer wants to recover. The target price includes the cost pricé“plus a profit margin. Step4. Final price This is the price that is eventually determina after the cost price, market price and target pricé have all been considered. ~ may ( 3. FOUR IMPORTANT QUESTIONS TO ASK BEFORE DECIDING ON THE PRICING POLICY e What is the cost of production? “ © What will the volume of sales be? © How will the products price compare to the prices set by competitors? e What value do consumers place on the product? “ mach A 4. PRICING TECHNIQUES COST-PLUS PRICING MARK-UP PRICING TARGET PRICING BREAK-EVEN PRICING When a set amount of profit is added to the cost of manufacturing the product Wj When the cost price of a product anda percentage of that cost price are added together to arrive at the selling price When prices are set to achieve a specific profit _for a specific volume of sales “~ When the break-even profit is determined using break-even analysis and the prices are set above this point, in order to earn a profit ond

a CONCLUSION The pricing of the good should be given careful consideration as it will determine the success or failure of the business. “4 MAL MARK ALLOCATION _ DETAILS MAXIMUM TOTAL Introduction MAX 32 Internal and external factors that affect price determination Steps In price determination 12 4 important questions Pricing techniques INSIGHT Layout Analysis Synthesis Originality NININ|w TOTAL MARKS