Business Studies Grade 12 NSC June 2013 Memo

Downloaded from hlayiso.com basic education 2 Department HO) I Basic Education LS REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS HIGHER GRADE 2013 POSSIBLE ANSWERS MARKS: 400 This memosandum consists of 33 pages. Copyright reserved , Please turn over

Downloaded from hlayiso.com Business Economics/HG SECTION A —- ANSWER SHEET QUESTION 1 SCE-i 1.1. MULTIPLE-CHOICE QUESTIONS Answer each question by making a cross (X) in the appropriate block. 4.1.1 A B c xX _|D 1.1.2 A B Cc D Xx 1.1.3 A B Cc X_|D 1.1.4 A X_ |B c D 1.1.5 A B Cc X_|D 1.1.6 A X_ |B c D Onleh A B c D Xx 1.1.8 A B Cc D 1.1.9 A X_|B Cc D 1.1.10 A B Cc D devel! A B Cc D 1.1.12 A X_ {|B Cc D 1.1.13 A xX_[B c D 1.1.14 A B Cc D 1.1.15 A B Cc D xX 1.1.16 A B Cc xX_|D 1.1.17 A B Cc D X 1.1.18 A B c xX_{D 1.1.19 A B Cc D 1.1.20 A B Cc D x Copyright reserved DBE/2013 (20 x 3) (60) 60 Pleaseturn over

Downloaded from hlayiso.com Business Economics/HG 3 DBE/2013 SCE - 1.2 MATCHING ITEMS 1.2.1 c 1.2.2 D 1.2.3 E 1.2.4 G Une B (5x2) (10) 10 1.3. TRUE OR FALSE NUMBER | TRUE | FALSE CORRECTION 1.3.1 XW 1.3.2 X¥V_| Multiple OR Combination packaging ¥ 1.3.3 XvV_| Preference V 1.3.4 XWV_| Pricing 7 1.3.5 XvV_| Distribution 7 1.3.6 xv 1.3.7 XW 1.3.8 Xv 20 1.4 DATA RESPONSE 1.41 [3xR3500V=R10 500 V (2) 1.4.2 [35507 x R5,50V = R19 525 V (3) 1.4.3. | Salary of manager V, Depreciation; Insurance; Rent (1) 1.4.4 | Gas V; Cleaning material: Indirect material; Indirect labour OR Cleaners wage/Wages (1) 1.4.5 | R45 585V/3 550V = R12,84 V (Accept R12,80 — R12,85) (3) 10 Copyright reserved TOTAL SECTION A: 100 100 Please tirover

Downloaded from hlayiso.com Business Economics/HG 4 DBE/2013 SCE- SECTION B GUIDELINES FOR MARKING: . When awarding marks for facts, take note of the submaximums indicated, especially if candidates do not make use of the same subheadings. Remember, headings and sub-headings are encouraged and contribute to insight {structuring/logical flow/sequencing) and indicates clarity of thought. (See BREAKDOWN at the end of each question.) . Allocate TWO marks for complete sentences. Allocate ONE mark for phrases, incomplete sentences and vague answers. . The components of insight are indicated at the end of the suggested answer for each question. Note that the components vary with each question. ° If the candidate identifies/interprets the question incorrectly, he/she can still obtain marks for insight. ° Take particular note of the repetition of facts. . Mark all relevant facts until MAXIMUM mark in sub-section has been attained. Write MAX after maximum marks have been obtained. ° Indicate insight in the left-hand margin with a symbol, e.g. “. At the end of each essay indicate the allocation of factual marks and insight marks as follows: Copyright reserved Please turn over.

Downloaded from hlayiso.com Business Economics/HG 5 DBE/2013 SCE- SECTION B QUESTION 2: FORMS OF OWNERSHIP CLOSE CORPORATION INTRODUCTION e Comment on fairness of new legislation VV e New CC's may not be formed e Existing CC's will be allowed to continue MAX « Any acceptable comment on CC. (4) CHARACTERISTICS A minimum of 1 and a maximum of 10 co-owners/members VV Managed by members The establishment of a close corporation is legally monitored The liability of the members for debt of the business is limited The name must end with CC. The name must be registered It has its own legal entity, independent of the members Capital is contributed by the founders It is a business without share capital or shareholders Membership is not freely transferable Profits are divided according to percentage membership It has unlimited continuity Not necessary to audit financial statements As a legal entity, it must pay income tax on the profit of the business No company can be a member of a CC MAX Any other suitable characteristic (12) FORMATION AND REGISTRATION e Draw up founding statement/CK 1V¥V e Contents: (Max 6) - Address of registered office VV - Names and identity numbers of members - Particulars of each member - Particulars of each member's contribution, indicated as a percentage - Date of the end of the financial year - Name and address of the accounting official - Working agreement between the members - Name of the CC - Principle activity of a CC e Reserve business name ¢ Pay registration fee MAX « Register document with registrar/CIPRO/CIPC (12) Copyright reserved Please tytn over\

Business Economics/HG 6 DBE/2013 Downloaded from hlayiso.com SCE - ADVANTAGES eevee eerere ee eee Members are not responsible for the debts of the CC/Limited liabilityvV The members have limited liability for debts Profit is divided according to percentage interest of members Easy to change the content of the founding statement Reasonably easy to establish Has unlimited continuity Capital is contributed by up to ten members — more available All members are actively involved in management Save on audit fees Need not hold AGM's Fiexible entity — no formal agreements/special resolutions Legal entity Accept any other suitable advantage DISADVANTAGES (AGAINST/NOT IN FAVOUR OF) ¢ Capital is limited to what 10 people can contribute VV e Members can become liable for debts under certain circumstances e Permission to sell members’ interest is needed before selling it to an outsider e Only natural persons could become members e Financial statements must be audited if apply for a lone e Not possible to sell CC as is — must first be converted to a company e Any other acceptable disadvantage. CONCLUSION e Reaction to new legislation. VV e New CC's may/may not be formed e Suitable form for promotion of small business e Reasons for its initial introduction e Any other suitable comment. FACTUAL MARK 40 INSIGHT 10 Copyright reserved MAX (10) MAX (10) (4) Please turn aver

Downloaded from hlayiso.com Business Economics/HG if DBE/2013 SCE - INSIGHT Structure/Layout e Inclusion of introduction, discussion and conclusion 2 (introduction, disctission and conclusion = 2: introdliction and discussion = 1: discussion and conclusion = 1; only discussioi = 6) Analysis and interpretation e Learner's ability to break down the question to show understanding of what is being asked. 2or0 Synthesis e How does the candidate create an answer to satisfy the requirements of the question? e Relevant parts included and irrelevant information excluded 4 4 components (see breakdown) = 43 rete 3:2 components = 2; 1 component = 1 Originality and application e Candidate's reasoning in the essay about the legislation and affect 2 on the need to form CC's. BREAKDOWN OF QUESTION Introduction 4 marks Characteristics Max 12 marks Formation and registration Max 12 marks Advantages Max 10 marks Disadvantages Max 10 marks Conclusion Max 4 marks WAXIMUM 40 MARKS Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 8 DBE/2013 SCE- QUESTION 3: MARKETING FUNCTION TRADEMARKS INTRODUCTION Comment on the ‘trust’ in trademarks. VW Comments on the popularity of Coca-Cola around the globe. Any other acceptable comment. A trademark is an image, value or norm connected to the products of a business. It identifies and distinguishes it from the products of competitors. MAX It consists of a logo, slogan and trade name. (4) IMPORTANCE OF TRADEMARKS TO CONSUMERS/MARKETER eoeeeeee Products can easily be identified. VV It ensures a uniform standard of quality. A measure of protection is enjoyed. Better products are developed as a result of competition. The manufacturer/supplier is identifiable. The consumer is warned against wrong purchases. Quick transactions are possible. A trademark guarantees a certain quality of product which creates consumers’ faith in the product. (The trademark guarantees spare parts.) Any other acceptable importance. The trademark forms the basis for advertising the business and its products. The marketer will ensure that his products are continuously better than those of competitors. The business can extend its product range because it is easy to market products under a well-known and popular trademark. A trademark can hasten a purchase and therefore increase sales. By using a trademark, a marketer can control his market share. A trademark creates loyalty amongst consumers and makes it difficult for the consumer to choose substitutes. A trademark creates a good product image that can be trusted by consumers. The marketer can use the same trademark to apply product differentiation. MAX Any other acceptable importance. (16) FORMS OF TRADEMARKS Individual vv ~ Explanation/example VV Family ~ Explanation/example Dealers — Explanation/example MAX Any other acceptable form of trade mark (8) Copyright reserved Please tuftroéver

Downloaded from hlayiso.com Business Economics/HG 9 SCE-j REQUIREMENTS OF TRADEMARKS ¢ Itmust be approved by the public vv e {t contains unique symbol, mark, graphic sign or word e It reflects the salient advantages/features/value of the products, e.g. and utility. \t could have versatile usage It is in good, simple language to be easily understood. Easily pronounced and remembered by consumers. confusion. Easily registered to enjoy legal protection. [tis not misleading Promote marketing mix of business Be adaptable to packaging and labelling requirements. Must be accepted and not irritate consumers Must be used unchanged for an extended product range Any other suitable requirement evoeceveee SIGNIFICANCE OF '@' DBE/2013 characteristics Be distinct from names or trademarks of related products or competitors to avoid The ' ® in the name indicates that the trademark has been registered VV Cannot be used by any other (soft drink) manufacturer VV CONCLUSION Any suitable comment on trade marks. Vv FACTUAL MARK 40 INSIGHT 10 TSTAL 50 INSIGHT Structure/Layout e Inclusion of introduction, discussion and conclusion 2 Uptroduction; discussion and conclusion = 2; introduction and discussion = iscussion and conclusion = 1; only discussion = 6) Analysis and interpretation e Learner's ability to break down the question to show understanding of what is being asked. 2 or0 Synthesis e How does the candidate create an answer to satisfy the requirements of the question? e Relevant parts included and irrelevant information excluded 4 an nts = 3; 2 comporierits Originality and apelieationts e Candidate's reasoning in the essay about the use of trademarks to promote products and create trust in the owner of the trade mark. 2 e Provide other examples: Toyota / Nokia / Levi's etc Copyright reserved Please turn over MAX (12) (4) (2)

Downloaded from hlayiso.com Business Economics/HG DBE/2013 SCE - BREAKDOWN OF QUESTION Introduction 4 marks Importance to consumers/marketers Max 16 marks Forms of trade marks Max 8 marks Requirements Max 12 marks Significance Max 4 marks Conclusion Max 2 marks | MAXIM 40 MARKS Copyright reserved Please turn pvér~,

Downloaded from hlayiso.com Business Economics/HG 11 DBE/2013 SCE - QUESTION 4: FINANCIAL FUNCTION INTRODUCTION e Own and/or borrowed capital was needed to start the business, but it was dependent on what had to be financed. VV « The capital could have been used as fixed or working capital, but this was determined by a few factors that had to be considered. e Any other acceptable comment. TYPES OF CAPITAL FIXED CAPITAL Max (4) e Fixed capital is that portion of the total capital used to purchase fixed assets V¥ e such as land, buildings and equipment to be used to the best advantage of the business. e Accept any other suitable comment on fixed capital. WORKING CAPITAL Max (4) Working capital is that portion of the total capital used to finance current assets VV such as stock and debtors ¥V To pay for current expenses of the business such as rent, electricity and wages. Keeps circulating and changes its form continuously Accept any other suitable comment on working capital. eeecee OWN CAPITAL Max (4) Consists of the capital contributed by the owners. VV Normally these funds are not paid back to the owners (shareholders). They differ in respect of the division of profits. Not all the profit is divided amongst the owners (shareholders). (A variety of shares are available.) (Shareholders have a say in the running of the business.) Accept any other suitable comment on own capital. BORROWED CAPITAL Max (4) ¢ Borrowed capital is that section of the total capital lend to the business. VV e Borrowed/foreign capital consists of funds obtained in the capital and credit market for long or short periods of time. e These funds are usually paid back after a certain period of time. e A fixed interest rate is paid on these amounts and the amount is usually redeemed on a predetermined future date. e The extent of the borrowed capital depends on the long-term and short-term needs of the business. « Accept examples of borrowed capital e Accept any other suitable comment on borrowed capital. MAX (4) MAX (16) Copyright reserved Please turn over.

Downloaded from hlayiso.com Business Economics/HG 12 DBE/2013 SCE - FACTORS DETERMINING WORKING CAPITAL REQUIREMENTS FOR STORE ¢ Nature of the business VV - need for money for day-to-day expenses might be high for one business but low for another. VV - eg. fruit and vegetables must be replaced daily ¥ e Size of the business - need for capita! to finance current assets increases as the business expands. - @.g. more fruit and vegetables requires more money e Stage of development - a growing business needs more working capital to purchase and accumulate current assets such as fruit and vegetables as well as the payment (increases) of current expenses e.g. fuel, electricity etc. - @.g. fruit and vegetables is normally purchased for cash e Rate of turnover of fruit and vegetables - the sooner fruit and vegetables (perishable) are sold, the sooner funds will be available and the smaller the need for working capital. - Due to possible losses from perishability, more working capital is required. - e.g. this is normally high and the need for cash will be low e Credit policy/Buying and selling terms - if aconsiderable percentage of sales are on credit, more working capital will be needed. If purchases are made in cash more capital will also be needed. - @g. normally fruit and vegetables are not sold on credit e Seasonal consumption - if a product is produced throughout the year and sold only during a limited period, more funds are required to store the products until such time as they can be sold. - @.g. fruit and vegetables are very much seasonal and purchases are done in large quantities which requires lots of cash e Seasonal production - if a product is produced only in one season but sold throughout the year, more funds are required to store the products until such time as they can be sold. - @.g. fruit and vegetables are very much seasonal and purchases are done in large quantities which requires lots of cash. DO NOT ACCEPT “TIME OF PRODUCTION" USAGE OF CAPITAL e Borrowed capital requires repayment and interest is added which makes it expensive. ¥ CONCLUSION e Borrowed capital requires repayment and interest is added which makes it expensive. VV e Any other suitable reason why own capital is chosen rather than borrowed capital. FACTUAL MARK 40 INSIGHT 10 MAX (20) (2) (2) Copyright reserved Please turn over.

Downloaded from hlayiso.com Business Economics/HG 13 DBE/2013 SCE - INSIGHT Structure/Layout e Inclusion of introduction, discussion and conclusion 2 (nhtrodlictioh, discssion and conclusion = 2; introduction and discussion = 4; discussion and conclusion = 4: only discussion = 6) Analysis and interpretation e Learner's ability to break down the question to show understanding of what is being asked. 2or0 Synthesis e How does the candidate create an answer to satisfy the requirements of the question? e Relevant parts included and irrelevant information excluded 4 [2 colriponents (see Breakdown} = 4; 4 component = 2) © Originality and application e Candidate's reasoning in the essay about the use of capital in this 2 type of business venture. BREAKDOWN OF QUESTION Introduction 4 marks Types of capital Max 16 marks Factors determining working capital Max 20 marks Conclusion __| Max 2 marks Copyright reserved Please turn ovet™~

Business Economics/HG 14 DBE/2013 Downloaded from hlayiso.com SCE ~i QUESTION 5: PRODUCTION FUNCTION AND BUSINESS ENVIRONMENT INTRODUCTION Accept any suitable comment referring to the manufacturing of the vehicle. VV SYSTEMS OF PRODUCTION INTERRUPTED/BATCH PRODUCTION/JOBBING/FOR SBV ONLYVV This is the manufacturing of a wide variety of products, but in small or limited batches or quantities. VV One range of products is completed before the production of another range starts. Use the same equipment to manufacture different batches. Less specialised equipment and rather generalised multi-purpose equipment is used in the production process. This production system is eminently suitable for products with a limited but stable demand. Accept any other suitable characteristic. UNINTERRUPTED/CONTINIOUS/MASS PRODUCTIONIFOR ALL OTHERSVV Large quantities with a limited varietyvV Continuous production — use conveyer belts Standard product — all identical Automation takes place — there are different workstations; with different production lines. Semi- and unskilled workers are used — specialisation takes place. Large constant demand needs constant production. Balanced capacity of machines — can be adjusted to produce more or less. Single purpose machines/equipment which are custom build. Stocks of raw material and finished products are relatively low. Accept any other suitable characteristics ROLE PLAYED BY CSIR Copyright reserved Assists in the development of products and services/Material resources. VV Focuses on community development. Renders a supporting service to manufacturing industries. Works on the technological development of new and better methods. Renders testing services. Makes new information regarding technological development available. Any other suitable service. (2) (2) MAX (10) (2) MAX (10) MAX (10) Please turn over

Downloaded from hlayiso.com Business Economics/HG 15 SCE-i ROLE TO BE PLAYED BY SABS Promote standardisation in industry and commercev¥ Prepare specifications and codes of practice Control the use of standardisation and distinctive marks Undertake education work in connection with standardisation eeoeeee commodities e Promote national awareness of quality e Determine standard of imported goods DBE/2013 Provide facilities for the testing and examination of commodities and raw materials Co-operate with the view to bring about standardisation in connection with e Accept any other suitable function of the SABS. CONCLUSION Any suitable comment regarding production and assistance from CSIR and SABS. VV FACTUAL MARK 40 INSIGHT 10 TOTAL ee INSIGHT Structure/Layout e Inclusion of introduction, discussion and conclusion 2 (lhtrodui discussion and conclusion = 2: inttodiiction and discussion = 1; discussion and conclusion = 1; only discussion = 6) Analysis and interpretation e Learner's ability to break down the question to show understanding of what is being asked. 2o0r0 Synthesis e How does the candidate create an answer to satisfy the requirements of the question? e Relevant parts included and irrelevant information excluded 4 (4 components (see breakdown) = 43 See 3; 2 components = 2; 1 component = 4}. 3 Originality and application e Any example of new developments 2 BREAKDOWN OF QUESTION Introduction 2 marks Systems of production Max 24 marks Uninterrupted production Max 12 marks Interrupted production Max 12 marks Role played by CSIR Max 10 marks Role to be played by SABS : Max 10 marks Conclusion 2 marks TOTAL SECTION B: Copyright reserved Please turn over MAX (10) (2) 100 aN

Downloaded from hlayiso.com Business Economics/HG 16 DBE/2013 SCE- SECTION C GUIDELINES FOR. MARKING e If for example FIVE facts are required, mark the FIRST FIVE responses of the candidate. Ignore the rest of the responses. e If two correct facts are written in one sentence, award the candidate FULL credit. e If candidates are required to provide their own examples/views, brainstorm it at the marking centre to finalise the alternative answers. e All questions that request candidates to ‘explain/discuss/describe’ will be marked as follows: HEADING = VV and EXPLANATION = ¥ e In questions that require candidates to 'name / list / mention’, the answers of candidates can be in phrases and not necessarily in full sentences. e YES/NO without motivation = 0 marks Copyright reserved Please turn over

Business Economics/HG 17 DBE/2013 SECTION C Downloaded from hlayiso.com SCE - Answer any FOUR questions from this section. QUESTION 6: FORMS OF OWNERSHIP 6.1 FOUR DISADVANTAGES OF A PARTNERSHIP Partners are jointly and severally liable for debts — unlimited liability for partners VV Lifespan of business depends on lifespan and unity of partners — dissolve when change in membership Capital is limited to what 20 people can contribute Partners have to consult one another to make final decisions/Urgent decisions cannot be made. Actions of one partner influences others Not a legal entity/not autonomous ACCEPT ANY OTHER SUITABLE DISADVANTAGE ANY 4X2 6.2 6.2.1 DOCUMENT Partnership agreement/articles/Memorandum of agreement VV 6.2.2 FOUR ITEMS IN AGREEMENT Copyright reserved e The aim and nature of the partnership VV Kind of partnership Name of the partnership The contribution of each partner The ratio or proportion in which the profits and losses are to be divided The duration of the financial period e Procedure to be followed when the partnership is terminated Insurance to be taken out on assets of the partnership and on partners How disputes are to be settled (arbitration clause) Who will bear the expense of an audit if an audit is required by one of the partners The rate of interest payable on capital and drawings Salaries payable to partners The amount of drawings allowed and the interest payable The names of the partners Duties of each partner and the time that must be spent with the partnership e Arrangements for leave ee e eee ACCEPT ANY OTHER SUITABLE ITEMS ANY 4X2 (8) (2) (8) Please turn over_—.

Downloaded from hlayiso.com Business Economics/HG 18 SCE- 6.3 OTHER FORM OF OWNERSHIP Private company VV 6.4 6.4.1 6.4.2 REGISTRATION WHERE? Registrar of companies/CIPRO/CIPC VW TWO REGISTRATION DOCUMENTS Memorandum of associationvY DBE/2013 (2) (2) 6.5 Articles of associationvV OR Memorandum of Incorporation (New Act) VvV (4) 6.4.3 ISSUE PROSPECTUS? YESVV MOTIVATION Public companies may invite the public to invest in shares VV (2) (2) YES WITHOUT MOTIVATION = 0 MARKS FIVE DIFFERENCES BETWEEN PRIVATE AND PUBLIC COMPANIES PUBLIC COMPANY PRIVATE COMPANY « Name ends in (Pty) Ltd Vv Name ends in Ltd vV « Min number of shareholders 4 © Min number of shareholders 7/1 e Max number of shareholders 50 e Max depends on shares issued « Managed by at least 1 director e Managed by at least 2/3 directors e Capital contributed by founders © Capital contributed by public investors e Financial information only e Financial information available to available to share holders public e May not invite public to buy shares/may not issue prospectus e« Commence business after Certificate of incorporation is received * Need no minimum subscription to start « Meetings not compulsory May not be listed on JSE No need to audit financial statements e Any other suitable difference Copyright reserved May use prospectus to invite public to buy shares Also receives certificate to commence business, but can only start operations after certificate to do so is received Need to reach minimum subscription to commence with operations Compulsory annual general meeting May list on the JSE Financial statements must be audited Any other suitable difference ANY5X2X2 = (20) [50] Please turn aver

Downloaded from hlayiso.com Business Economics/HG 19 DBE/2013 SCE ~~ QUESTION | MARKS 6.1 8 6.2 10 6.3 2 6.4 10 6.5 20 TOTAL 50 Copyright reserved Please turn over ~~

Downloaded from hlayiso.com Business Economics/HG 20 DBE/2013 SCE - QUESTION 7: MARKETING AND PRODUCTION FUNCTIONS 74 PRODUCT MIX OF CADBURY Width © number of product lines in the product rangevV ¢ e.g. Dairy milk; Cake Bites; Beverages; Brunch Bar; MiscellaneousvV¥ Depth ¢ number of different product items in each product linevV ¢ eg. Dairy milk — Hazelnut; Fruit & Nut; Mint Crisp; etc.v ¥ ACCEPT ANY OTHER SUITABLE EXAMPLES FROM CADBURY (8) 7.2 7.2.1 SATISFACTION OF NEEDS e The consumer is prepared to pay a certain price for the product that satisfies his needs. VV e The consumer wants the maximum satisfaction at the lowest possible price. e The target market has a certain amount available. If the product is too expensive, he will not buy it. e The consumer is prepared to pay only a certain price for the utility and value derived from the use of the product ACCEPT ANY OTHER SUITABLE RESPONSE. ANY 2X2 = (4) 7.2.2 AVAILABILITY OF SUBSTITUTES e The prices of substitute products could make consumers wanting to change to buy the substitute product. vv e If substitute products with exactly the same characteristics are available, pricing will influence the purchase thereof. ¢ If substitute products are not available prices will be high ACCEPT ANY OTHER SUITABLE RESPONSE. ANY 2X2 = (4) 7.3 CHANNELS OF DISTRIBUTION Indirect - use different intermediaries between producer and consumer VV - use agents, wholesalers, retailers as intermediaries Direct channel - liaise directly with the consumer ¥V - use no intermediaries (4) ACCEPT DIAGRAMS ACCEPT ANY OTHER SUITABLE DIFFERENCE Copyright reserved Please turn.evér™

Downloaded from hlayiso.com Business Economics/HG 21 DBE/2013 SCE-1! 7.4 JUSTIFICATION FOR THE USE OF DIRECT DISTRIBUTION The products can melt when too warm or can get stale over time.vV Too high profit margin of intermediaries — makes products too expensive. Preference of dealers/consumers. Middleman may acquire position of power No auxiliary services such as transport, insurance, storage, re-sorting of products, or financing are offered by intermediaries. (Need to demonstrate products) Cannot persuade intermediaries to sell products ACCEPT ANY OTHER SUITABLE REASON ANY 3X2 75 EXAMPLES OF CADBURY PRODUCTS SOLD IN INFORMAL SECTOR SHOPS eoeeeve Spaza stores/House shops/Tuck shops VV Flea markets Hawkers Mobile shops Vending machines (Shebeens) ACCEPT ANY OTHER SUITABLE EXAMPLE ANY 3X2 7.6 ETHICS IN ADVERTISING Advertisements should not: be misleading/deceptive/make misleading claims ¥V encourage false needs/ emotionally influence a consumer try to influence/pollute people culturally provide false information criticise competitors be in poor taste misuse children who do not understand the content of the advertisement advertising second hand/rebuilt goods as new ACCEPT ANY OTHER SUITABLE MOTIVATION Copyright reserved ANY 4X2 (6) (6) (8) Please turn over“

Downloaded from hlayiso.com Business Economics/HG 22 DBE/2013 SCE- 7.7 FIVE SAFETY MEASURES IN CADBURY FACTORY Offer special training to workers VV Supply protective clothing and accessories Draw up safety prescriptions Take measures to encourage tidiness/cleanliness Keep all utensils/equipment in predetermined places Have suitable facilities for employees — rest rooms Provide for emergency situations — have first aid equipment available Structural safety ACCEPT ANY OTHER SUITABLE MEASURES ANY5X2 = (10) [50] QUESTION | MARKS 7.4 8 7.2 8 7.3 4 7.4 6 7.5 6 7.6 8 7.7 10 TOTAL 50 Copyright reserved Please turn over—~~

Downloaded from hlayiso.com Business Economics/HG 23 DBE/2013 SCE ~- QUESTION 8: FINANCIAL FUNCTION 8.1 FOUR FACTORS DETERMINING NEED FOR FIXED CAPITAL ¢ Policy of the businessvV - more fixed capital is needed to buy assets than to lease them. V e Nature of the business - this business does not need much fixed capital because of the type of building used. e Size of the business - this is a small shop and therefore does not need much fixed capital. e Stage of development of the business - an established business that has already reached its optimum size will need less fixed capital than a business that is still developing. This one might still develop into a bigger concern. ACCEPT ANY OTHER SUITABLE FACTOR ANY4X3 = (12) 8.2 FOUR DUTIES OF THE CREDIT DEPARTMENT Determine the terms and conditions of credit for each client VV Allocate credit according to business policy Be conversant with credit policy Determine credit risks Check financial status of persons who are applying for credit Set a credit limit for each debtor Keep a close check that customers do not exceed their terms of credit Send account statements regularly to the debtors Check that complete records are kept of credit sales and the payment of accounts Follow up accounts in arrears according to the predetermined credit policy Determine when credit may no longer be granted to a customer Refer overdue accounts to a legal assistant Control volume of credit sales Monitor tendencies in the credit market, for example changes in interest rates ACCEPT ANY OTHER SUITABLE DUTY ANY4X2 (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 24 DBE/2013 SCE - 8.3 THREE ADVANTAGES OF STOCKPILING Discounts may be obtained by buying in bulk. ¥V A saving may be made on costs by ordering in large quantities and buying less often. Sufficient stock ensures better service to the customer as the required article is available when needed. Less working capital is needed to finance stock if purchases are made judiciously. Good stock control ensures that no unnecessary duplication of stock takes place. As a result of judicious stockpiling, changes in price have a less disadvantageous effect on the business. Losses owing to stock theft by employees may, with effective stockpiling, be limited to a minimum. Limited losses according to price fluctuations and obsolescence Storage facilities are used more economically and less floor space is needed for this purpose ACCEPT ANY OTHER SUITABLE ADVANTAGE ANY 3X2 (6) 8.4 8.4.1 KEEPING CASH Precautionary motive VV Speculative motive VV Transactional motive WW (6) ACCEPT EXPLANATIONS RELATED TO THE MOTIVES 8.4.2 FOUR ADVANTAGES OF SUFFICIENT CASH ON HAND e Obligations can easily be fulfilled which increase the creditworthinessv¥ Business can demand cash discount/lower prices More favourable terms when a loan is needed/Good credit rating Increases the overall efficiency of the business Current liabilities can be settled at the most favourable time Surplus cash can be invested on a short-term basis Use cash for unexpected profitable opportunities ACCEPT ANY OTHER SUITABLE ADVANTAGE ANY 4X2 (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 25 DBE/2013 SCE - 8.5 8.5.1 WHICH PRINCIPLE? Indemnification/IndemnityvV¥ (2) 8.5.2 OTHER PRINCIPLE SecurityvV (2) ACCEPT ANSWER OF 8.5.1 HERE IF 8.5.2 IS INCORRECT 8.5.3 AVERAGE CLAUSE e Stipulates that if the insured property is not insured for its real valuevv ~ all damages suffered by the insured will not be compensated in full VW e Over insurance — if property is insured for more than its actual value, only the amount of the actual damage will be paid out irrespective of the amount for which it was insured. ~ reinstatement can apply e Under insurance — if property is insured for less than its actual value only a proportionate part of the claim will be paid out. ACCEPT ANY OTHER SUITABLE RESPONSE ANY 2X2 (4) 8.5.4 EXAMPLE OF INSURABLE INTEREST e Ability to earn an income/Owner's life VW e Assets of the business ¢ Stock at hand/Fruit & veg at hand (Fruit = v) e The life of his debtors e Security for customers ACCEPT ANY OTHER SUITABLE EXAMPLES ANY1X2 = (2) [50] QUESTION | MARKS 8.1 12 8.2 8 8.3 6 8.4 14 8.5 10 TOTAL 50 Copyright reserved Please turn over.—

Downloaded from hlayiso.com Business Economics/HG 26 DBE/2013 SCE - QUESTION 9: GENERAL MANAGEMENT 9.1 ORGANISATION STRUCTURE Line organisational structurevV (2) MOTIVATION Flow from one level to the next is in linevV Lines of authority is clear Each person knows to whom to report and who reports to him/her. The manager or owner is in charge of a few departments. Each department has its own manager, assistants and workers. ACCEPT ANY OTHER SUITABLE MOTIVATION ANY1X2 = (2) 9.2 LEVELS OF MANAGEMENT e General management/Executive management/Top levelvV —EuniceV Heads of departments/Functional management/Middle level — Nathan/Mahlangu/Brian/Ngcobo/Selwyn/Andries Foremen/Supervisory management/lower level — Foremen/Heads of divisions/Supervisor 3X3 (9) 9.3 STEPS IN PLANNING (IN ANY ORDER) Establishing aimsvV Gathering information/Investigate/Assumptions of what can be obtained Analysing information Choosing the best alternative/plan Developing of action Implementing Evaluation/Follow up ANY6X2 = (12) 9.4 PRINCIPLES IN PLANNING ees eee s 8 ee Planning must be realistic and feasible. VV Planning must be done scientifically. Planning must be adjustable. Misunderstandings must be avoided by planning clearly and simply. Planning must be simple and clearly understandable. Planning must be put in writing. The type of planning is important and must be clearly defined. Effective communication is necessary because subordinates must know exactly what is expected of them. Planning is time-related and is done for a certain time. Planning is a means to an end and not an end in itself. Futuristic ACCEPT ANY OTHER SUITABLE PRINCIPLE ANY5X2 = (10) Copyright reserved Please tirn aver

Downloaded from hlayiso.com Business Economics/HG 27 DBE/2013 SCE - 9.5 STEPS IN CONTROL OF DEPARTMENT (IN ANY ORDER) Determine standardsv¥ Measure results Compare results with standards Take corrective steps/actions ACCEPT ANY OTHER SUITABLE STEP 4X2 (8) 9.6 IMPORTANCE OF PROPER COMMUNICATION Employees will have the opportunity to communicate with higher management. VVV The message will be understood. Subordinates will know what is required from them. ACCEPT ANY OTHER SUITABLE REASON (3) 9.7 PRINCIPLES OF DISCIPLINARY ACTION Rules and regulations must be in place. VV The offence must be followed up/investigated immediately. Do not confront the suspect in front of colleagues. A warning must be given. The trespasser must be given the opportunity to appeal/defend him- /herself. Corrective behaviour must be suggested. Fine or suspend the person. The same offences must be punished the same way. Keep record of all the meetings with the transgressor. Ensure trade union/or other representation at the meetings. ACCEPT ANY OTHER SUITABLE PRINCIPLE ANY 2X2 (4) [50) QUESTION | MARKS 9.1 4 9.2 9 9.3 12 9.4 10 9.5 8 9.6 3 9.7 4 | TOTAL 50 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 28 DBE/2013 SCE- QUESTION 10: MARKETING, PRODUCTION, ADMINISTRATION AND GENERAL MANAGEMENT FUNCTIONS AND BUSINESS ENVIRONMENT 10.1 DIFFERENCE BETWEEN PUBLICITY AND ADVERTISING PUBLICITY ADVERTISING Not paid forv¥ Pay for advertisingvV Gained by business without being Business active in gaining of involved in content of message acknowledgement Creates climate or circumstances Create climate artificially to the which may influence business benefit of the business Positive or negative Has more credibility Can be a lie/false statement Little control over message Have full control over message DOES NOT HAVE TO BE IN TABLE FORM ACCEPT ANY OTHER SUITABLE DIFFERENCE ANY1X2X2 (4) 10.2 FROM THE ILLUSTRATION: A PUBLICITY VV B ADVERTISING VV¥ (4) 10.3 BREAK-EVEN ANALYSIS « Analysis to determine point where income equals expenditure VWv¥V /Analysis to determine point where no profit is made or loss suffered 1X4 (A) 10.4 DISADVANTAGES OF CENTRALISATION Franchise — cannot centralise office activities Excessive centralisation of office activities can become uncontrollable. VV Widely dispersed office activities can hamper centralisation. The technical nature of some office work does not favour centralisation. Confidentiality of some material may be jeopardised by centralisation. A concentration of a large number of office workers leads to impersonal relations. eeeeceve ACCEPT ANY OTHER SUITABLE DISADVANTAGES ANY5X2 = (10) OR Copyright reserved Please turn over -—

Downloaded from hlayiso.com Business Economics/HG 29 DBE/2013 SCE- ADVANTAGES OF DECENTRALISATION In a small office unit, red tape is avoided. Sound human relations are promoted. Office workers are exposed to a greater variety of office duties. Personal interest in the work is stimulated. Productivity of workers is higher because workers work together. Matters are finalised more easily and quickly. ACCEPT ANY OTHER SUITABLE ADVANTAGES ALTERNATIVELY THE ABOVE DISADVANTAGES OF CENTRALISATION AND ADVANTAGES OF DECENTRALISATION CAN BE COMBINED INTO ONE ANSWER 10.5 PROJECT ORGANISATION STRUCTURE Temporary structure VV Specialists are gathered in a team The team has one duty to perform — establish a new outlet A project manager is in charge The project manager has line authority over projects. The project staff work together as team only until the project is completed The staff returns to their functional areas once the project is completed ACCEPT ANY OTHER SUITABLE RESPONSE ANY5X2 (10) 10.6 LISTED AT: Johannesburg Securities/Stock Exchange (Ltd)/JSE (Ltd)/JSE VY (2) FOUR SERVICES: ¢ Protects investors with strict listing rules applied to listed companies VV e Encourages small investors/you to participate in the economic development of South Africa e Serves as an important link between investors and entrepreneurs/You provide money which can be used by Nando's. ¢ Offers facilities for financial institutions to invest their funds in shares — e.g. insurance companies to let policies grow in value for your benefit « Provides the opportunity for company shares to be assessed by a large number of professionals — you invest in economically growing companies Publishes share prices daily —- keep you informed of share prices Is a sensitive barometer of economic conditions and price tendencies Makes an important contribution to the economic stability and growth of South Africa — you live in a stable and growing economic environment ¢ Offers the opportunity to convert an investment into cash relatively easily — you can exchange your shares into cash quickly/easily ACCEPT ANY OTHER SUITABLE SERVICE ANY4X2 (8) Copyright reserved Please turn ovet

Downloaded from hlayiso.com Business Economics/HG 30 DBE/2013 SCE- 10.7 FOUR FUNCTIONS OF SARB Issue banknotesvV¥ Issue coins Bankers of the state Custodian of cash reserves from banks Clear and settle claims between financial institutions Custodian of gold reserves Provider and lender of last resort Credit rationing Open market buying and selling of state bonds Gather, interpret and publish financial and monetary statistics Formulate and execute monetary and exchange rate policy Supervise the banking sector Control the currency rate ACCEPT ANY OTHER SUITABLE FUNCTION ANY 4X2 (8) 150} QUESTION | MARKS 10.1 4 10.2 4 10.3 4 10.4 10 10.5 10 10.6 10 10.7 8 TOTAL 50 Copyright reserved Please turn over ,

Downloaded from hlayiso.com Business Economics/HG 37 DBE/2013 SCE QUESTION 11: MISCELLANEOUS MARK THE FIRST FIVE ANSWERS TO THIS QUESTION 11.1 FIVE REASONS FOR DISSOLUTION OF PARTNERSHIP Mutual agreement of all partnersvV Admission of a new partner A partner leaving/dies/retires Completion of the partnership/business/attained goal Insolvency of a partner Insolvency of the business An order of court More than 20 partners without special permission Outbreak of war with one or more partners in opposing country Failure of a partner to deliver his/her predetermined contribution ACCEPT ANY OTHER SUITABLE REASONS ANY5X2 = (10) 11.2 FIVE REQUIREMENTS OF PACKAGING ©eeceece oes es Must be eye-catching/attracts attention of consumers.vV Satisfy the requirements of dealers. Must be designed for the target market. Must be different from competitors for easy identification. Must promote the image of the business. Must be well designed and strong to protect the contents. Must promote sales by being colourful, attractive and well designed. Must suit the product. Must be suitable for display purposes. Environmentally friendly/Green ACCEPT ANY OTHER SUITABLE REQUIREMENTS ANY5X2 (40) 11.3 FIVE ADVANTAGES OF CREDIT TRADING TO DEALER The dealer has more customers who cannot buy for cash.v¥ The dealer has more regular customers as the buyer purchases from the same dealer/obtains goodwillloyalty from customers. Granting of credit may be used as means of advertising and attracts customers. The dealer may charge more to cover extra costs of financing and administration. Credit trade stimulates the economy. Address lists of debtors may be used to advertise special offers. ACCEPT ANY OTHER SUITABLE ADVANTAGES ANY5X2 = (10) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 32 DBE/2013 SCE 11.4 FIVE FIRE PREVENTION MEASURES © 6 6 © 6 6 8 Fire drills should be in writing and communicated to workers VV Fire preventative measures should be in place Provide protective clothing Each room should have two exits Fire escapes should be available Fire fighting equipment should be available and in working condition Fire walls can be erected ACCEPT ANY OTHER SUITABLE SAFETY MEASURE ANY 5X2 11.5 FIVE DISADVANTAGES OF DECENTRALISATION Staff must deal with a larger variety of tasks. VV Productivity can be low because they possibly do not have all the expertise and skills. Specialisation is not possible Division of labour is not possible Standardisation of work procedures and activities is not possible. Expertise does not increase Duplication of activities takes place Procedures are not uniform Work may accumulate ACCEPT ANY OTHER SUITABLE DISADVANTAGES ANY 5X2 11.6 FIVE WAYS TO MOTIVATE WORKERS cooecevree ee eevee Work assurancevV Fair remuneration — salary and benefits Recognition/appreciation/acknowledgement of good work Interest in worker as person Good human relations Dignified/numane treatment Good liaison/communication with workers Reasonable instructions Opportunities for self-actualisation Participation in decision-making process Pleasant working conditions Promotion opportunities Purposeful leadership/management ACCEPT ANY OTHER SUITABLE WAYS Copyright reserved ANY 5X2 Please turnover (10) (10) (10)

Downloaded from hlayiso.com Business Economics/HG 33 DBE/2013 SCE 11.7 FIVE FUNCTIONS OF THE CHAMBERS OF COMMERCE ©eeee ee @ To settle disputes amongst members by means of arbitration.vV To eliminate unnecessary competition between members. To study new municipal laws and regulations and bring it to the attention of members. To agitate for municipal laws and regulations which will favour commerce? To introduce uniform shop hours, wages and prices. To keep a blacklist of defaulters for their members. To present courses and seminars to members and their employees. To collect/analyze information and give advice to members. To render a specific service on behalf of a member. To promote trade in their area. To bring members in contact with organisations and institutions that may be able to assist them in their business. ACCEPT ANY OTHER SUITABLE FUNCTIONS ANY5X2 (10) [50] QUESTION | MARKS 1.41 40 11.2 40 11.3 40 41.4 10 11.5 40 11.6 | 10 117 =| +10 TOTAL | 50 TOTAL SECTIONC: 200 GRANDTOTAL: 400 Copyright reserved