Business Studies Grade 12 KZN March 2018 Memo

Education KwaZulu-Natal Department of Education REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE GRADE 12 : BUSINESS STUDIES : ; COMMON TEST i " MARCH 2018 ; MARKS: 100 TIME: 1 hour N.B. This question paper consists of 7 pages. Copyright Reserved Please Turn Over Ls Ss ss

Business Studies Downloaded from hlayiSO.COM march 2018 common Test 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. Choose any TWO questions. SECTION C: Consists of TWO questions. Answer any ONE of the TWO questions in this section. 2. Read the instructions for each question carefully and take particular note of what is required. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Except where other instructions are given, answers must be written in full sentences. 5, Use the mark allocation and the nature of each question to determine the length of an answer. 6. Use the table below as a guide for marks and time allocation when answering each question. QUESTION SECTION MARKS TIME 1 A: Multiple-choice questions and . matching COMPULSORY 20 10 minutes 2,3and4 |B: THREE Direct questions. (Choose 40 20 minutes any TWO questions) 5 and 6 C: TWO questions. (Choose any ONE ‘ of the TWO questions) he a0 minutes TOTAL 100 60 minutes Copyright reserved Please turn over

Business Studies Downloaded from hlayiSO.COMarch 2018 Common Test SECTION A: (COMPULSORY) QUESTION 1 1.1. Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A-D) next to the question number (1.1.1 - 1.1.5) in the ANSWER BOOK, for example 1.1.6 D. 1.1.1. Employers are legible to pay a skills levy if their total annual salary expense exceeds A R 1 million B R 5million Cc R 250 000 D R 500 000 1.1.2 Fast and Furious tyre manufacturing company purchases Ouick tyre fitment retailers. This strategy is called ... A backward vertical integration B horizontal diversification Cc forward vertical integration D horizontal integration 1.1.3 A pregnant employee qualifies for a maximum of ... paid maternity leave. A two months' B one month Cc four months' D three months' 1.1.4 A human resources activity that determines which applicants meet the minimum job requirements and separate them from the rest. A Interview B Induction Cc Placement D Screening 1.1.5 An example of unprofessional and unethical behaviour is A selling second hand cars at lower prices than new cars B ensuring that the environment is protected Cc receiving kickbacks, gifts and gratuities during the procurement process D not starting a venture at the expense of someone else (5 x 2) (10) Copyright reserved Please turn over

Business Studies Downloaded fram hlayiso.comwverc 2018 Common Test 1.2 Choose a description from COLUMN B that matches a term/Act in COLUMN A. Write only the letter (A-E) next to the question number (1.2.1 — 1.2.5) in the ANSWER BOOK. For Example: 1.2.6 F. COLUMN A COLUMN B 1.2.1 Tax evasion A. This act encourages employers to use the workplace as a learning environment 1.2.2 Porter's Five Forces B. pay received for a specific piece of work done. 1.2.3. Time-related remuneration Cc. a business or person deliberately conceals information or illegally claims to have made expenses that reduces the tax 1.2.4. Empty chair D, This act promotes demographic representation in a business 1.2.5 Broad —Based Black Economic | E. A problem-solving technique Empowerment Act,2003(Act 53 where a team of experts are of 2003) given questionnaires to obtain their opinions without bringing them together F. analyses the micro-environment G. calculation based on an agreed hourly rate. H. a process through which a business legally claim benefits that will reduce tax payable to the South African Revenue Services (SARS) I. analyses the market environment J. This problem-solving technique allows a manager to find solutions on his/her own. (5 x 2) (10) TOTAL SECTION A: 20 Copyright reserved Please turn over

Business Studies Nsc SECTION B Answer any TWO questions from this Section. QUESTION 2 2.1 List TWO types of defensive strategies. 2.2 Read the following scenario and answer the question that follows. AZ MANUFACTURERS (AZM) AZM specialises in the manufacture of swimming costumes. Due to competition they have decided to manufacture other sportswear. 2.2.1 Identify the type of diversification strategy in the above scenario. 2.2.2 Discuss TWO other diversification strategies. 2.3. Recommend steps in evaluating a strategy. QUESTION 3 3.1 Outline any FOUR problem-solving steps. 3.2 Read the following scenario and answer the question that follows. ACE CLOTHING (AC) AC specialises in the selling of men’s clothing. The business sales are declining and there are losing customers to businesses that sells similar men’s clothing. They have consulted experts to solve the problem. 3.2.1 Identify the problem solving technique in the above scenario. 3.2.2 Discuss the advantages of the problem solving technique identified in QUESTION 3.2.1. 3.3. Recommend ways in which a business can create an environment that stimulates Copyright reserved creative thinking Downloaded from hlayiSO.COMbarch 2018 common test (8) [20] Please turn over

Business Studies Downloaded frem hlayisO.COM waccn 2018 common Test NSC QUESTION 4 4.1. Distinguish between professional behaviour and ethical behaviour (8) 4.2. Explain ways in which businesses can apply the following King code principles 4.3 to improve their corporate governance. (a) transparency (4) (b) accountability (2) Read the following scenario and answer the questions that follow. TTP is a local paint factory in Umlazi. Tyrick and Taarick are the only directors. Tarrick appointed Mandisa, his niece, as the new secretary although she was not the best candidate for the position. Aliah, the supervisor, dumps the factory's waste material in a nearby river to save on disposal costs. TT PAINTS (PTY) LTD (TTP) 4.3.1. Quote TWO unethical business practices from the scenario above. (2) 4.3.2 Recommend a strategy to deal with each unethical business practice identified in QUESTION 4.3.1. Redraw the table below in your answer book to present your response. (4) 4.3.1 UNETHICAL BUSINESS 4.3.2 STRATEGIES PRACTICE (a) (a) (b) (b) [20] TOTAL FOR SECTION B: [40] Copyright reserved Please turn over

Downloaded from hlayisO.COMaci 2018 common Test NSC Business Studies SECTION C ANSWER ANY ONE QUESTION FROM THIS SECTION QUESTION 5 BUSINESS ENVIRONMENT The National Credit Act, 2005 (Act 34 of 2005) (NCA) protects the consumer in the credit market and make credit and banking services more accessible. The Act helps to enhance control for a better and more responsible credit practices in industry. With reference to the statement above: ° Discuss the purpose of the National Credit Act . Explain the rights of consumer as outlined in this Act . Analyse the impact of this Act on businesses ° Suggest ways in which businesses can comply with this Act [40] QUESTION 6 BUSINESS OPERATIONS The financial manager of KK Movers and Shakers (Pty) Ltd recently announced his retirement. Nalini, the human resources manager, needs to find a new financial manager. Nalini had to compile a job description and job specification before advertising the position. She has advertised the position on the business's notice board. She is also responsible for the arrangements during the selection process. Refer to the scenario above and write an essay in which you include the following aspects: ° Distinguish between job description and job specification . Discuss the impact of internal recruitment on businesses . Explain the selection procedure that Nalini should follow to identify the most suitable candidate . Advise Nalini on the purpose of the interview and her role as an interviewer [40] TOTAL FOR SECTION C: [40] GRAND TOTAL: [100] Copyright reserved

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Downloaded from hlayiso.com ness Studies 3 NSC SECTIONA QUESTION 1 4.1 Multiple choice Til DY 1.1.2 Cvv 1.4.3 Cv¥v 14.4 Dv¥v 11.5 C¥v 1.2 Matching 1.2.1 C¥v 1.2.2 Wv 1.2.3 Gvv 1.24 Ivy 1.2.5 Dvy Copyright reserved slarch 2018 Common Test 5x2 (10) 5 x 2 (10) TOTAL SECTION A; [20] Please turn over Business Studies 4 March 2018 Common Test NSC SECTION B QUESTION 2 2.1. Defensive strategies Retrenchmentv Divestiture/Divestment~ Liquidation” Mark the first TWO only (2x 1) (2) 2.2.1 Concentric diversification VV (2) 2.2.2 Horizontal diversification “ 2.3 A growth strategy where the business adds new products v that are unrelated to existing products “but may appeal to existing customers “eg. a car dealership that starts marketing financing services. Sub Max (3) Conglomerate diversification’ A growth strategy where the business adds new products or services ¥ that are unrelated to existing products v but may appeal to new groups of customers. ¥ eg. Virgin has interest in air, travel, music, mobile phones etc. Sub Max (3) Max (6) Steps in evaluating strategies ° Examine the underlying basis of a business strategy. “v ° Formulate strategies to meet objectives favourably. v~ . Implement strategies using action plans, etc, VW . Look forward and backwards into the implementation process. Vv . Compare the expected performance with the actual performance. ¥ ¥ Measure business performance in order to determine the reasons for deviations/analyse these reasons. “¥ ° Take corrective action so that deviations may be corrected. WW . Set specific dates for control and follow up. ¥~ . Draw up a table of the advantages and disadvantages of a strategy. Vv . Decide on the desired outcome to determine the effectiveness of the strategy. ¥v . Consider the impact of the strategic implementation in the internal and external environments of the business. Vv” . Any other relevant answer related to the steps in strategy evaluation. NOTE: Steps can be in any order Max (10) (20] Copyright reserved Please turn over

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Business Studies 42 43 Downloaded from hlayiso.com March 2018 Common Test NSC Principles of ethical business conduct (a) Transparency . Decisions / Actions must be clear v to all stakeholders. ~ . Business should give details of shareholders’ voting rights to them” before / at the Annual Genera! Meeting (AGM). * Business dealings / transactions v must be open / honest. ” . Business policies and process “ must be clear and understand by al stakeholders. ¥ . The board of directors must report on both the negative and positive impact ¥ of the business on the community / environment¥ . Any other relevant answer related to transparency as a principle of ethical business conduct. {4) (b) Accountability ° Business should be accountable / responsible ~ for their decisions / actions. . Business should present accurate annual reports to shareholders at the Annual General Meeting (AGM). ” . Top management should ensure that other levels of management are clear about their roles and responsibilities “ to improve accountabil . Any other relevant answer related to accountability as a princigle of ethical business conduct. {2) 4.3.1 Unethical business 4.3.2 Strategies ___practice_ 7 Adhere to the Employment Equity Act. Tarrick appointed Mandisa, his | vv niece, as the new secretary TTP should have a policy on although she was not the best appointment proceduresv ¥ | candidate for the position. ¥ (1) Sub max (2) | Any other relevant strategy related to ___unethical business practice identified. Allah, the supervisor, dumps the | Adhere to the conservation acts. v ¥ factory's waste material ina | The business must educate employees nearby river to save on disposal on the importance of nature costs. ¥ conservationy (1) Sub max (2) Any other relevant strategy related to _ _ unethical business practice identified. a (2) | Max (4) (6) NOTE: 1. Mark first TWO (2) unethical practices only. Copyright reserved 2. The unethical practice must be quoted from the scenario. 3. The strategy must be linked to the unethical business practice. [20] TOTAL SECTION B: [40] Please turn over Business Studies 8 March 2018 Common Test NSC SECTION C QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATIONS) 51 5.2 ‘5:3 Copyright reserved Introduction The National Credit Act (NCA) was developed in response to demands for redress and equity. ¥ It impacts significantly on small and large businesses. ~ Acredit provider must adhere to the regulations set out in the NCA in order to comply with the Act ” Many consumers overspend when buying on credit. “ The National Credit Act was put in place to safeguard the interest of consumers and credit providers. ¥ The Act ensures that credit is used in a way that adds value to customers'¥ Any other relevant introduction related the National Credit Act. (2x1) (2) Purpose of the National Credit Act Protects the consumer against unfair credit agreements, “ e.g. charging interest rates well above the maximum stipulated by law. ~ Introduces a single functional system of regulations “ that will apply to all credit activities. ¥ Ensures that all credit providers and credit consumers ¥ are treated equally. Encourages responsible “ borrowing. Justifies rights and responsibilities V for consumers and credit providers. ¥ Discourages careless granting of credit by service providers “ to unsuspecting consumers. ~ Regulates the interest rate to be charged by service providers ¥ to consumers. ¥ Makes provision for the establishment ~ of the National Credit Regulator (NCR). ~ Makes provision for the establishment v of a credit register (database). ¥ Any other relevant answer related to the purpose of the National Credit Act Max. (12) Rights of consumer in the National Credit Act The right to: Apply for credit “ and to be free from discrimination. ~ Obtain reasons ¥ for credit being refused. “ Receive pre-agreement documentation v before concluding any credit transaction. ¥ Fair ¥ and responsible marketing. ¥ Choose which goods they will buy “ and return such good: satisfied. Receive Information in plain and understandable language. ¥ Receive documents” as required by the Act. ” Access and challenge v credit records and information. Any other relevant answer related to consumer rights as stipulated in the NCA. Max. (10} they are not Please turn over

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Business Studios " March 2018 Commen Test NSC QUESTION 6 BUSINESS OPERATIONS 61 Introduction The human resources manager (HRM) is responsible for selecting and appointing competent and skilled employees. ~ The HRM must conduct a job analysis for a suitable candidate. v Itis important that the HRM follows correct/fair procedures in selecting and Interviewing the suitable candidates “ The shortlisted applicants should be interviewed in order to evaluate their suitability for the job. ¥ Any other relevant introduction related to the recruitment, selection, job description and specification and interviewing. (2x1) (2) 6.2 Distinguish between job description and job specification JOB DESCRIPTION ic job v/Summary V of the nature/type of the job. | Written description of the job V and its PTI JOB SPECIFICATION _ sVofa Specifies the minimum acceptable personal qualities/skills/qualifications V | needed for the job. \ Written description of specific qualifications/skills/experience V needed for the job. v Describe key performance areas/tasks for a specific job. V e.g. job title/working conditions/relationship of the job with other jobs in the business, ¥ etc. Describes key requirements for the person who will fill the position, v e.g. formal qualifications/willingness to travel/work unusual hours, ¥ ete Any other relevant answer related to job description. Any other relevant answer related to jod specification NOTE: Downloaded from hlayiso.com Copyright reserved Submax. (4) | _ Submax. (4) Max. (8) 1. Answer does not have to be in tabular format. 2. The differences must be clear. 3. Award a maximum of FOUR (4) marks if the differences are not clear./Mark either job description or job specification only. Please turn over Business Studies 12 6.3 6.4 Copyright reserved March 2018 Common Test NSC Internal recruitment Positives/Advantages The business recruits from e: inside the business. ¥ Opportunities for promotion reward good work ~ and motivate current employees. ¥ Staff morale and productivity increases ~ if suitable staff members are promoted regularlyw” Current employees understand Y how the business operates. ¥ The business knows the candidate, “his/her personality, strengths and weaknesses. ¥ Reliable/Key staff members are retained ~ if they are promoted/ transferred within the business. “ Detailed, reliable information on candidates “ can be obtained from super- visors/employee records. Recruitment process is faster and less expensive ~ if the candidates are known. ¥ Any other relevant answer related to positive impact of internal recruitment on businesses. ting employees ¥ through promotions/transfer from AND/OR Negatives/Disadvantages Current employees may not bring “new ideas into the business. 7 Promoting a current employee may cause resentment amongst v other employees. ¥ The number of applicants is limited v to current staff only. ¥ Employees who do not really have the required skills for the new job “ may be promoted. ” Current employees may need to be trained/developed before they can be promoted, ¥ which can be expensive. ¥ Staff that is not promoted may feel demotivated v which may hamper productivity. “ Any other relevant answer related to negative impact of internal recruitment on businesses. Max. (42) Selection procedure Determine fair assessment criteria ¥ on which selection will be based. ¥ Use the assessment criteria to assess all CVs/application forms ~ received during recruitment” Preliminary screening is done by sorting the applications received according to the criteria for the job. ~ Check that applicants are not submitting false documents Y such as forged certificates/degrees. “ Make a list of all applicants Vv who qualify for the post. “ Screen and check reference, v e.g. check applicants’ criminal records/ credit history/social media, ¥ etc. Conduct preliminary interviews ¥ to sift out applicants who quality for the job. ~ Please turn over

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