# Business Studies Grade 12 P2 Eastern Cape June 2021 Memo > Grade 12 Business Studies Paper 2 memorandum from the Eastern Cape June 2021 (English), 32 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/bus-studies-p2-gr12-memo-june2021-english/657b9e6a-52b1-4250-8853-178727be6de2 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Language: English - Document type: Memorandum - Year: 2021 - Exam period: Eastern Cape June - Paper: 2 - Curriculum: CAPS - Pages: 32 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 P2 Eastern Cape June 2021 Memo](https://www.hlayiso.com/library/bus-studies-p2-gr12-memo-june2021-english/657b9e6a-52b1-4250-8853-178727be6de2) ## About this document Business Studies · Grade 12 · Eastern Cape June · 2021 · English. Memorandum, 32 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 12 JUNE 2021 BUSINESS STUDIES P2 MARKING GUIDELINE (EXEMPLAR) MARKS: 150 This marking guideline consists of 31 pages. ### Page 2 Downloaded from hlayiso.com 2 BUSINESS STUDIES P2 (EC/JUNE 2021) NOTES TO MARKERS 1. PREAMBLE The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (b) Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across the country (d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 2. Candidates' responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 3. A comprehensive marking guideline has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but:  Uses a different expression from that which appears in the marking guideline  Comes from another credible source  Original  A different approach is used NOTE: There is only ONE correct answer in SECTION A. 4. 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.) 5. The word ‘Submax.’ is used to facilitate the allocation of marks within a question or sub-question. 6. The purpose of circling marks (guided by 'max' in the breakdown of marks) on the right-hand side is to ensure consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes. 7. 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. 8. In an indirect question, the theory as well as the response must be relevant and related to the question. 9. Correct numbering of answers to questions is recommended in SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of the candidate’s answers. Candidates will be penalised if the latter is not clear. Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 3 10. No additional credit must be given for repetition of facts. Indicate with an 'R'. 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 guideline 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 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, justify, 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 P2 (EC/JUNE 2021) 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 are specified, questions that require candidates to 'describe/discuss/explain' may be marked as follows:  Fact 2 marks (or as indicated in the marking guideline)  Explanation 1 mark (two marks will be allocated in Section C) The 'fact' and 'explanation' are given separately in the marking guideline 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 guideline. 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/JUNE 2021) BUSINESS STUDIES P2 5 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, a body and a conclusion? 2 Analysis and Is the candidate able to break down the question into 2 interpretation headings/subheadings/interpret it correctly to show understanding of what is being asked? Marks to be allocated using this guide: All headings addressed: 1 (One 'A') Interpretation (16 to 32 marks): 1 (One 'A') Synthesis Are there relevant decisions/facts/responses made 2 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. Originality Is there evidence of examples based on recent 2 information, current trends and developments? 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 awarded for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com 6 BUSINESS STUDIES P2 (EC/JUNE 2021) 15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O'). 15.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guideline 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, but continue reading for originality (“O”). 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 15.7 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not make use of the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 15.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guideline. 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.10.2 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. 15.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guideline, 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/JUNE 2021) BUSINESS STUDIES P2 7 SECTION A QUESTION 1 1.1 1.1.1 C √√ 1.1.2 D √√ 1.1.3 A √√ 1.1.4 B √√ 1.1.5 B √√ (5 x 2) (10) 1.2 1.2.1 over insurance √√ 1.2.2 rental √√ 1.2.3 Delphi technique √√ 1.2.4 collaboration √√ 1.2.5 code of ethics √√ (5 x 2) (10) 1.3 1.3.1 H √√ 1.3.2 J √√ 1.3.3 I √√ 1.3.4 G √√ 1.3.5 B √√ (5 x 2) (10) TOTAL SECTION A: 30 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com 8 BUSINESS STUDIES P2 (EC/JUNE 2021) SECTION B Mark the FIRST TWO answers only. QUESTION 2: BUSINESS VENTURES 2.1 Examples of non-insurable risks - Losses caused by war √ - Most risks occurring between placing orders and receiving goods √ - Changes in fashion √ - Losses caused by marketing malpractices by the business √ - Advancement in technology/new machinery invention √ - Any other relevant answer related to the examples of non-insurable risks. NOTE: Mark the first THREE (3) only. (3 x 1) (3) 2.2 Types of shares 2.2.1 Founder’s shares √√ 2.2.2 Bonus shares √√ (4) 2.3 Leadership styles 2.3.1 Transactional leadership √√ (2) Motivation He rewards employees for meeting sales targets and punishes them for not meeting deadlines. √ (1) NOTE: 1. Award marks for the leadership style even if the quote is incomplete. 2. Do not award marks for the motivation, if the type of leadership style was incorrectly identified. Max (3) 2.3.2 Impact of transactional leadership style Positives/Advantages - Encourages employees to work hard √ because they will receive rewards. √ - Improves employees' productivity √ and morale. √ - The goals and objectives of the business can be achieved √ as workers are motivated. √ - Employees know √ what is expected of them. √ - Disciplinary action procedures √ are well communicated. √ - Any other relevant answer related to a positive impact/ advantages of a transactional leadership style. Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 9 AND/OR Negatives/Disadvantages - Employees may become bored/lose creativity √ as they have to follow rules/ procedures. √ - A transactional leader will have to monitor the work performance of employees √ to ensure that expectations are met. √ - Managing/controlling employees √ may be time-consuming. √ - Some employees may be demoralised/udemotivated √ if they fail to reach/meet targets despite having worked very hard. √ - Not suitable for team work as all team members can be punished √ for poor performance caused by one team member. √ - Any other relevant answer related to a negative impact/disadvantages of a transactional leadership style. Max. (8) NOTE: Accept relevant facts, if the autocratic style was incorrectly identified as answer in QUESTION 2.3.1. 2.4 Situations in which the democratic and laissez faire leadership styles can be applied in the workplace 2.4.1 Democratic leadership style This leadership style can be used when: - Group members are skilled and eager to share their ideas. √√ - The leader does not have all the information needed to make a decision and employees have valuable information to contribute. √√ - Cooperation is needed between a leader and a team. √√ - Decisions need to be looked at from several perspectives. √√ - Any other relevant answer related to situations in which the democratic leadership style may be applied in the workplace. Max. (4) 2.4.2 Laissez-faire/ Free reign This leadership style can be used when: - Subordinates are experts and know what they want/can take responsibility for their actions. √√ - The leader is very busy and delegation of tasks will increase productivity. √√ - Team members need to improve/develop leadership skills. √√ - Suitable when employees are highly experienced and know more about the task than the leader. √√ - Any other relevant answer related to a situation in which laissez- faire/free-reign leadership style may be applied in the workplace. Max. (4) Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com 10 BUSINESS STUDIES P2 (EC/JUNE 2021) 2.5 Meaning of debentures - It is issued to raise borrowed capital √ from the public. √ - The lender/debenture holder agrees to lend money to the company √ on certain conditions for a certain period. √ - Debenture holders are creditors, √ as the company is liable to repay the amount of the debentures. √ - Most types of debentures can be traded √ on the JSE. √ - Debenture holders receive annual interest payments √ based on the terms/ amount of debentures held. √ - Any other relevant answer related to the meaning of debentures. Max. (4) 2.6 Insurance 2.6.1 Average clause √√ (2) 2.6.2 Insured amount x Loss/Damages √ Market value 500 000 = x 300 000 √ 800 000 = R187 500 √√ NOTE: 1. Allocate full marks (4) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of TWO (2) marks. 3. If the answer is incorrect, award a maximum of ONE mark for the understanding of concept and method. Max. (4) Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 11 2.7 Difference between simple and compound interest SIMPLE INTEREST COMPOUND INTEREST - Interest earned on the original - Interest earned on original amount amount √ and not on the invested, √ as well as interest interest accrued. √ earned in previous period(s). √ - The principal amount remains - The principal amount grows √ with the same √ as interest is not re- the addition of interest to it. √ invested/ added. √ - The interest is calculated on the - Interest is calculated on the higher original/ principal amount √ and principal amount √ and again added added at the end of the to it. √ investment period. √ - Yields lower √ return on - Yields high √ return on investment.√/ investment. √/ Total interest Total interest earned on investment√ earned on investment √ is is high.√ lower. √ - Any other relevant answer - Any other relevant answer related to related to simple interest. compound interest. Submax. (2) Submax. (2) NOTE: 1. The answer must be in a tabular format/differences listed in an organised way. 2. The differences must be clearly linked. 3. Award a maximum of TWO (2) if the differences are not clear/Mark either simple or compound interest only. Max. (4) [40] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 3 2.2 4 2.3.1 3 2.3.2 8 2.4.1 4 2.4.2 4 2.5 4 2.6.1 2 2.6.2 4 2.7 4 TOTAL 40 Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com 12 BUSINESS STUDIES P2 (EC/JUNE 2021) QUESTION 3: BUSINESS ROLES 3.1 Practical examples of unethical behaviour - Sold old item as new √ - Using false figures in accounts √ - Excessive salaries during recession √ - Bribing to avoid penalty or get tender √ - Stealing patent for your own benefits √ - Harming environment √ - Lack of transparency √ - Evade paying tax √ - Any other relevant answer related to the practical examples of unethical behaviour. NOTE: Mark the first THREE (3) only. (3 x 1) (3) 3.2 Unethical business practices 3.2.1 Pricing of goods in rural areas √√ 3.2.2 Taxation/Tax evasion √√ (4) 3.3 Problem-solving technique 3.3.1 Force-field analysis √√ (2) Motivation RSF needs to look at both the pros and cons before establishing another factory. √ (1) NOTE: 1. Award marks for the problem-solving technique even if the quote is incomplete. 2. Do not award marks for the motivation if the problem-solving was incorrectly named. Max. (3) 3.3.2 Advantages of force-field analysis - It provides a visual summary of all the various factors supporting √ and opposing a particular idea. √ - Employees feel included √ and understood. √ - Employees develop √ and grow with the business. √ - Informed decisions can be made as forces for √ and against are critically evaluated. √ - Enables businesses to strengthen the driving forces √ and weaken the restraining forces. √ - Businesses are able to have an idea of the timeline required √ and the requirements of additional resources. √ - Any other relevant answer related to the advantages of force- field analysis. Max. (8) Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 13 3.4 Difference between problem-solving and decision-making. PROBLEM-SOLVING DECISION-MAKING - Problems can be solved by a - It is often done by one person/a group/ team √ or an individual team member of senior member. √ management √ who makes it authoritarian. √ - Alternative solutions are generated/ - Various alternatives are identified √ and critically considered √ before deciding on evaluated. √ the best one. √ - Process of analysing a situation √ - It is part of the problem solving to identify strategies to bring about cycle √ as decisions need to be change. √ taken in each step. √ - Any other relevant answer related - Any other relevant answer to problem-solving. related to decision-making. Submax. (2) Submax. (2) NOTE:1. The answer does not have to be in a tabular format 2. The differences do not have to link, but must be clear. 3. Award a maximum of TWO (2) marks if the differences are not clear/ Mark either decision-making or problem-solving only. Max. (4) 3.5 King Code principles 3.5.1 Transparency √ Accountability √ (2 x 1) (2) Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com 14 BUSINESS STUDIES P2 (EC/JUNE 2021) 3.5.2 Application of each King Code principle Principle Application Transparency - Decisions/Actions must be clear to all stakeholders. √√ - Businesses should give details of shareholder’s voting rights to them before/ at Annual General Meeting. √√ - Business dealings/transactions must be open/honest. √√ - Business policies and processes must be clear and understood by all 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 how businesses can apply transparency as a King Code principle for good corporate governance. Submax. (4) Accountability - Businesses should be accountable/responsible for their decisions. √√ - Businesses should present accurate annual reports to shareholders at the Annual General Meeting (AGM). √√ - Top management should ensure that other levels of top management are clear about their roles and responsibilities to improve accountability. √√ - Any other relevant answer related to how businesses can apply accountability as a King Code principle for good corporate governance. Submax. (4) NOTE: 1. The answer does not have to be in tabular format. 2. The application in QUESTION 3.5.2 must link to the correct King Code principles in QUESTION 3.5.1. Max. (8) Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 15 3.6 Application of brainstorming technique - State/Define the business problem clearly, √ so that all participants/stake- holders understand the problem. √ - Members state possible causes √ of the business problems. √ - Set a time limit √ for each brainstorming session. √ - Record/Write ideas down, √ where all participants can see it. √/Ideas may also be shared online √ during an e-brainstorming session. √ - Use each suggestion √ to inspire new thoughts/ideas. √ - Do not judge/criticise/discuss the ideas, √ so that many ideas could be generated as quickly as possible. √ - All members of the group √ randomly make suggestions. √ - The group rates ideas √ according to its usefulness/success/difficulty/cost to implement. √ - The group evaluates all ideas, √ and combines similar ones/draw up a refined list. √ - Discuss a plan of action √ on how to implement the best ideas. √ - Any other relevant answer related to the application of the brainstorming technique to solve business problems. Max. (8) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 3 3.2 4 3.3.1 3 3.3.2 8 3.4 4 3.5.1 2 3.5.2 8 3.6 8 TOTAL 40 Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com 16 BUSINESS STUDIES P2 (EC/JUNE 2021) QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURES 4.1 Principles of insurance - Indemnification √ - Security √ - Utmost good faith √ - Insurable interest √ NOTE: Mark the first THREE (3) only. (3 x 1) (3) 4.2 Investments 4.2.1 Simple interest (Kelly) FORMULA: Interest = P x R x T √ R5 000 x 12% x 2 years √ = R1 200 √ NOTE: 1. Allocate full marks (3) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of ONE (1) mark. 3. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. Max. (3) 4.2.2 Compound interest (Keith) Option 1 Year 1: R5 000 √ x 12% = R600 √ Year 2: R5 600 √ x 12% = R672 √ Total interest = R1 272 √ OR Option 2 FORMULA: P x (1 + r)n √ R5 000 √ x (1+12/100)2 √ R5 000 x (1,12)2 = R6 272 √ Total interest = R6 272 – R5 000 = R1 272 √ NOTE: 1. Allocate full marks (4) if the answer is correct and no workings are shown. 2. If workings were shown correctly, but the final answer is wrong, award a maximum of THREE (3) marks. 3. If there are no workings shown and the answer is incorrect, allocate a ZERO mark. Max. (4) Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 17 4.2.3 Better investment option Keith √/An investment on compounded/compound interest is better. √ (1) Motivation Keith receives more interest/R72 more interest/has a higher return on his investment over 2 years/earns interest on interest accrued.√ (1) Max. (2) 4.3 Role of personal attitude in successful leadership - Positive attitude releases √ leadership potential. √ - A leader’s good/bad attitude √ can influence the success/failure of the business. √ - Leaders must know their strengths and weaknesses √ to apply their leadership styles effectively. √ - Great leaders understand that the right attitude √ will set the right atmosphere. √ - Leaders' attitude may influence √ employees'/teams' thoughts/behaviour. √ - Leaders should model the behaviour√ that they want to see in team members. √ - Successful leaders consider the abilities/skills of team members √ to allocate tasks/roles effectively. √ - Enthusiasm√ produces confidence in a leader. √ - A positive attitude is critical for good leadership √ because good leaders will stay with the task regardless of difficulties/challenges. √ - Successful employees and leaders have a constant desire to work √ and achieve personal/professional success. √ - Leaders with a positive attitude know√ that there is always more to learn/space to grow. √ - Any other relevant answer related to the role of personal attitude in successful leadership. Max. (8) BUSINESS ROLES 4.4 Difficult personalities 4.4.1 Indecisive √√ (2) 4.4.2 Complainer √√ (2) 4.4.3 Aggressive √√ (2) Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com 18 BUSINESS STUDIES P2 (EC/JUNE 2021) 4.5 Importance of team dynamics theories in improving team performance - Team dynamics theories explain how effective teams √ work/operate.√ - Businesses are able to allocate tasks √ according to the roles of team members. √ - Team members can maximise performance √ as tasks are allocated according to their abilities/skills/attributes/personalities. √ - Team members with similar strengths may compete for team tasks/ responsibilities √ that best suit their abilities/competencies. √ - Theories assist team leaders to understand the personality types of team members √ so that tasks are assigned more effectively. √ - Conflict may be minimised √ when team members perform different roles. √ - Any other relevant answer related to the importance of team dynamic theories in improving team performance. Max. (6) 4.6 Strategies that businesses may introduce to deal with employees who abuse work time - Speak directly to those employees who abuse work time. √√ - Code of conduct/ethics should contain clear rules about abuse of work time. √√ - Conduct training on the contents of the code of conduct/ethics. √√ - Code of conduct/ethics should be signed by all employees so that they are aware of its contents. √√ - Monitor employees to ensure that tasks are completed.√√ - Structure working hours in such a way that employees have free/flexible time for personal matters. √√ - Create a culture of responsibility/strengthen team spirit in order for all employees to feel responsible for what has to be achieved.√√ - Remind employees that profit will decrease resulting in fewer incentives/bonuses pay-outs. √√ - Any other relevant answer related to strategies to deal with employees who abuse work time as an unethical/unprofessional business practice. Max. (8) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 3 4.2.1 3 4.2.2 4 4.2.3 2 4.3 8 4.4 6 4.5 6 4.6 8 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 19 SECTION C Mark the FIRST question only. QUESTION 5: BUSINESS VENTURES 5.1 Introduction - The Johannesburg Securities Exchange (JSE) is a formal market comprising of all the public companies that have been listed. √ - Various services are offered to listed companies by the JSE. √ - Shares represent the parts of the company that a person/group of people own. √ - Preference shares can be considered as a viable investment option as investors have various options to choose from. √ - Investors have a range of investment opportunities to choose from. √ - They measure these investment opportunities against criteria for good investment. √ - Investors set financial goals and consider different factors when making these decisions. √ - Entrepreneurs who started business ventures must show a return on their investment. √ - Unit trusts consist of a number of different shares and securities put together and managed by a fund manager. √ - Any other relevant answer related to the functions of JSE/ Types of preference shares/factors that must be considered when making an investment decision/effectiveness of unit trusts as a good investment. (Any 2 x 1) (2) 5.2 Functions of JSE - Gives opportunities to financial institutions such as insurance companies to invest their funds in shares. √√ - Serves as a barometer/indicator of economic conditions in South Africa. √√ - Keeps investors informed on share prices by publishing the share prices daily. √√ - Acts as a link between investors and public companies. √√ - Shares are valued and assessed by experts. √√ - Small investors are invited to take part in the economy of the country through the buying/selling of shares. √√ - Venture capital market is made available on the open market. √√ - Orderly market for securities serves as a disciplined market for securities. √√ - Encourages new investments in South African companies. √√ - Mobilises the funds of insurance companies and other institutions. √√ - Raises primary capital. √√ - Regulates the market for dealing with shares. √√ - Plans, researches and advises on investment possibilities. √√ - Ensures that the market operates in a transparent manner. √√ - Provides protection for investors. √√ - Encourages short-term investment. √√ - Facilitates electronic trading of shares/STRATE. √√ - Any other relevant answer related to the functions of the Johannesburg Securities Exchange (JSE). Max. (10) Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com 20 BUSINESS STUDIES P2 (EC/JUNE 2021) 5.3 Types of preference shares Participating preference shares √√ Shareholders: - are guaranteed minimum √ fixed dividends. √ - are entitled to share in any √ surplus company profits. √ - receive higher dividends √ when the company performs well. √ - have preferential rights over ordinary shares√ on repayment when the company closes down. √ - Any other relevant answer related to participating preference shares. Identification (2) Description (2) Submax. (4) Non-participating preference shares √√ Shareholders: - receive an amount equal to the initial investment √ plus accrued and unpaid dividends upon liquidation. √ - do not have the right to participate in profits √ after equity shareholders have been paid a dividend. √ - will not get extra dividend √ in case of surplus profits. √ - are entitled to receive only a fixed rate of dividend √ every year. √ - Any other relevant answer related to non-participating preference shares. Cumulative preference shares√√ - Shareholders are compensated for past dividends that were not paid out√ when profits were too low to declare dividends√/Receive dividends not√ previously paid out.√ - Any other relevant answer related to cumulative preference shares. Identification (2) Description (2) Submax. (4) Non-cumulative preference shares √√ - Shareholders are not compensated for past dividends √ that were not paid out when profits were low. √ - Any other relevant answer related to non-cumulative preference shares. Identification (2) Description (2) Submax. (4) Copyright reserved Please turn over ### Page 21 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 21 Redeemable preference shares √√ - Shares can be redeemed/bought back at the option of the issuing company, √ either at a fixed price on a specified date/over a certain period of time.√ - Any other relevant answer related to redeemable preference shares. Identification (2) Description (2) Submax. (4) Non-redeemable preference shares √√ - Shares are only bought back when the company closes down √ for reasons other than bankruptcy. √ - Any other relevant answer related to non-redeemable preference shares. Identification (2) Description (2) Submax. (4) Convertible preference shares √√ - Shares can be converted into a predetermined number of ordinary shares √ on the date specified when the preference shares were issued. √ - Any other relevant answer related to convertible preference shares. Identification (2) Description (2) Submax. (4) Non-convertible preference shares √√ - Shares cannot be converted √ into ordinary shares. √ - Any other relevant answer related to non-convertible preference shares. Identification (2) Description (2) Sub max (4) NOTE: Mark the first FOUR (4) only. Types (8) Max. Description (8) Max. (16) Copyright reserved Please turn over ### Page 22 Downloaded from hlayiso.com 22 BUSINESS STUDIES P2 (EC/JUNE 2021) 5.4 Factors to be considered when making investment decisions 5.4.1 Return on Investment (ROI) - Refers to income from the investment, √ namely interest/dividends/ increased capital growth on the original amount invested. √ - Generally, there will be a direct link √ between risk and return.√ - The return should be expressed √ as net after-tax gains on the investment. √ - Returns can be in the form of capital gains √ where the asset appreciates in value over time. √ - The net after-tax return should be higher √ than the inflation rate.√ - Any other relevant answer related to ROI as a factor to be considered when making investment decisions. Submax. (4) 5.4.2 Taxation - Refers to a compulsory payment √ made by citizens to the government. √ - A good investment √ will yield good after-tax returns. √ - Income tax implications must be considered √ in order to ensure a high net after-tax return. √ - Tax rates are not necessarily the same √ for different investments. √ - Any other relevant answer related to taxation as a factor to be considered when making an investment decision. Submax. (4) 5.4.3 Inflation rate - Inflation refers to a decrease √ in the value of money due to rising prices.√ - People are affected by a high inflation rate, √ because their money/purchasing power decreases.√ - The return on investment should be higher √ than the inflation rate.√ - Inflation has a positive effect on some investments √ such as property and shares where the income will increase as inflation increases.√ - Any other relevant answer related to inflation as a factor to be considered when making an investment decision. Submax. (4) Max. (12) Copyright reserved Please turn over ### Page 23 Downloaded from hlayiso.com (EC/JUNE 2021) BUSINESS STUDIES P2 23 5.5 Effectiveness of unit trusts as a good investment - Managed by a fund manager who buys shares on the Johannesburg Securities Exchange/JSE. √√ - The investor has a variety to choose from/a wider range of shares from lower to higher degrees of risk. √√ - Safe investments as it is managed according to rules and regulations. √√ - A small amount can be invested per month. √√ - Easy to invest in, as investors simply complete a few relevant forms or invest online. √√ - Easy to cash in when an investor needs money. √√ - Fluctuations in unit trust rates of return are often not so severe because of diversity of the investment fund. √√ - Generally beats inflation on the medium/long term. √√ - Offer competitive returns in the form of capital growth and dividend distribution. √√ - Fund managers are knowledgeable/experts/reliable/trustworthy as they are required to be accredited to sell unit trusts. √√ - Any other relevant answer related to the effectiveness/advantages of unit trusts as a good investment. Max (8) 5.6 Conclusion - Listed companies on the JSE will get more exposure to possible investors. √√ - Dividends paid out on preference shares will attract more people to invest in a company. √√ - A business that is managed successfully will make a number of investments over a period of time. √√ - Businesses should invest extra cash to generate more income rather than leaving it in the business's current account. √√ - Anyone can invest in unit trusts by investing a single lump sum/certain amount every month. √√ - Any other relevant conclusion related to the function of JSE/types of preference shares/factors that must be considered when making an investment decision/effectiveness of unit trusts as a good investment. (Any 2 x 1) (2) [40] Copyright reserved Please turn over ### Page 24 Downloaded from hlayiso.com 24 BUSINESS STUDIES P2 (EC/JUNE 2021) BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Functions of JSE 10 Types of preference shares 16 Max Factors that must be considered when 32 making an investment decision o Return of investment 12 o Taxation o Inflation rate Effectiveness of unit trusts 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 8 Originality/Examples 2 TOTAL MARKS 40 *LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over Text truncated here. 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