Business Studies Grade 12 NSC June 2013 Question Paper

Downloaded from hlayiso.com basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS HIGHER GRADE 2013 MARKS: 400 BUSINESS ECONOMICS HG TIME: hour: 4021E 3 hours 40210E This question paper consists of 17 pages and a 2-page answer sheet. X05 NIM Copyright reserved GAUTENG Please turn over

Downloaded from hlayiso.com Business Economics/HG 2 DBE/2013 SCE INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions. if 10. dial, This question paper consists of THREE sections, namely SECTION A, SECTION B and SECTION C. SECTION A: COMPULSORY Consists of ONE question with various subsections, which must be answered by ALL candidates. A separate answer sheet consisting of two pages is attached for QUESTION 1. SECTION B: Consists of FOUR questions. Answer any TWO questions from this section. SECTION C: Consists of SIX questions. Answer any FOUR questions from this section. Number the answers correctly according to the numbering system used in this question paper. Rule off on completion of each answer. Start the answer to EACH question on a NEW page. Answers should be given in full sentences except where otherwise required. Candidates will be penalised for short, incomplete answers. If more than SEVEN questions have been answered, only the first SEVEN applicable answers will be marked, namely: . QUESTION 1 ° First TWO questions from SECTION B ° First FOUR questions from SECTION C Clearly indicate answers that are NOT to be marked by writing 'CANCELLED' across the page. Questions must be answered in black or blue ink. Non-programmable calculators may be used. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the ANSWER BOOK. Write neatly and legibly. Cotsen TTL

Downloaded from hlayiso.com Business Economics/HG 3 DBE/2013 SCE SECTION A (COMPULSORY) Answer QUESTION 1 on the attached ANSWER SHEET. Place the completed ANSWER SHEET for QUESTION 1 in the front of the ANSWER BOOK. QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS Four options are provided as possible answers to the following questions. Choose the answer and make a cross (X) in the block (A—-D) next to the question number (1.1.1-1.1.20) on the attached ANSWER SHEET. There is only ONE correct answer to each question. EXAMPLE: 1.1.21 LA] Bic Pex] 1.1.1 One of the advantages of a sole trader is that ... A_ it has limited liability. Bits shares are freely transferable. C_ the owner can make quick decisions. D _ its lifespan is unlimited. 1.1.2 A holding company has obtained at least ...% of the issued capital of another company. A 60 B 51 Cc 50 D 30 oc This institution allows short-term borrowers to pay back their loans only after they have harvested their crops: A_ South African Reserve Bank B_ Corporation for Public Deposit C_ Land Bank D Johannesburg Securities Exchange Ltd 1.1.4 The concept 'listing' is associated with the ... Johannesburg Securities Exchange Ltd. Land Bank. South African Reserve Bank. Corporation for Public Deposit. vVOWODY conned TTT

Downloaded from hlayiso.com Business Economics/HG 4 DBE/2013 SCE 1.1.5 The holders of ... shares are entitled to receive the payment of 1.1.10 Copyright reserved dividends first. A bonus B_ ordinary C_ preference D_ founders From the following forms of ownership, identify those with limited liability for their owner(s): A_ Close corporation and public company B_ Sole trader and partnership C_ Private company and partnership D_ Sole trader and close corporation The market where owners and buyers of short-term capital meet is called the ... market. A product B capital C_ share D_ credit In this type of enterprise, profits are shared according to the volume of transactions with each member: A Partnership B_ Co-operative society C_ Private company D_ Close corporation Farmers can get mortgage bonds from the ... to purchase land, livestock and equipment. A Land Bank B_ Bank of Southern Africa C_ Business partners D_ South African Reserve Bank Analysing statistics is of great value for decision-making. Study the following figures representing the ages of workers: 31; 32; 33; 33; 33; 34; 35; 36; 37; 38; 40 What role does '33' play in the above set of values? A Median B Modus C Variance D_ Standard deviation TTT LIL Pease turn over GAUTENG

Downloaded from hlayiso.com Business Economics/HG 5 DBE/2013 SCE tu A private company raises its own capital by ... A obtaining loans. B selling shares to the members. C_ selling shares to the public. D_ issuing debentures. ce The portion of the capital of an enterprise, which is used to purchase stock, is known as ... A_ working capital. B fixed capital. C_ own capital. D_ borrowed capital. 1.1.13 AJAn ... is an account of expected income and planned expenditure which serves as a financial plan for a future period. A budget B production cost statement C_ income statement D_ balance sheet 1.1.14 ... is the process of selling debtors’ accounts at a discount to an outsider for cash. Reimbursing Factoring Provisioning Insuring wens P 4.1.15 ... fefers to the spreading of an insurance risk amongst a number of insurers for a share of the premium. A Excess B_ Subrogation Cc Surety D_ Reinsurance 10 The ... are the people elected by the owners of a public company to manage the affairs of the enterprise. shareholders debenture holders board of directors undermriters ijwkeks Conyhtesoned A 0 0 0 A Pose tum ove

Downloaded from hlayiso.com Business Economics/HG 6 DBE/2013 SCE 1.1.17 Reckless Taxi's insured a taxi for R100 000. The actual value of the taxi is R150 000. What will be the compensation for damages of R60 000 caused by an accident? A_ R150 000 B R100 000 C R60 000 D R40 000 1.1.18 ... describes the determination of deviations by comparing actual results with planned results in order to take corrective steps. A Leading B_ Activating C_ Controlling D_ Motivation 1.1.19 The SA Coin Company (Pty) Ltd is associated with ... A the Land Bank. B_ the South African Reserve Bank. C_ the Johannesburg Securities Exchange Ltd. D Business Unity South Africa. 1.1.20 ... is the management function that addresses workers who have trespassed rules and regulations relating to the code of conduct. Motivation Communication Delegation Disciplinary action (20 x 3) (60) when» Conhosed 0 Pease um or

Downloaded from hlayiso.com Business Economics/HG tf SCE 1.2 MATCHING ITEMS DBE/2013 Choose a term from COLUMN B that matches a statement in COLUMN A. Write only the letter (A-G) next to the question number (1.2.1—1.2.5) on the attached ANSWER SHEET, for example 1.2.6 H. COLUMN A COLUMN B 1.2.1 The transfer of authority from a senior A organising staff member to a subordinate B communication 1.2.2 The number of workers who are under the supervision of one senior person c delegation 1.2.3. The process by which people are D span of control influenced to cooperate of their own free | will to achieve the objectives of the E motivation business F planning 1.2.4 | The harmonising of individual efforts so _| that they work together to achieve the G co-ordinating objectives of the enterprise 1.2.5 The process of conveying a message from one person to another 1.3 TRUE OR FALSE (5 x 2) Indicate whether the following statements are TRUE or FALSE. Choose the answer and make a cross (X) in the block next to the question number (1.3.1-1.3.8) on the attached ANSWER SHEET. Correct the statement if it is FALSE, by correcting the underlined word(s) only. EXAMPLE: 1.3.9 A partnership has limited liability. NUMBER TRUE FALSE CORRECTION 1.3.9 X unlimited 1.3.1 Incentives, such as discount vouchers, are used by retailers to promote sales. 1.3.2 Kaleidoscopic packaging describes the practice of packing two bananas, two apples and two oranges in one plastic bag. 1.3.3 During the recognition stage of a trademark, the consumer opts for a specific trademark in preference to other trademarks. Copyright reserved FOAM ALO A Pease turn over GAUTENG (10)

Downloaded from hlayiso.com Business Economics/HG 8 DBE/2013 SCE 1.3.4 Promotion is the marketing function relating to the compiling of 1.4 production costs, expenses and profit for a product into one single figure at which the product will be sold. 1.3.5 Marketing communication is the route followed by the product from the manufacturer to the consumer with the help of intermediaries. 1.3.6 A franchiser sells the right to conduct a business for own interest within the boundaries of certain conditions, to the franchisee. 1.3.7 Telesales is a method that a manufacturer may use to sell his products directly to the consumer. 1.3.8 Advertising introduces a product or range of products to the consumer and tries to convince the consumer to buy the product. DATA RESPONSE Read the case study below and answer the questions that follow. Show calculations where applicable. You have three workers who make and sell burgers at R15 each, from a mobile stall at the local public park. During the past week 3 550 burgers were sold. You, as the manager, purchaser and general assistant, earn R5 250 per week. The workers earn R3 500 each per week. There is also a general cleaner who earns R20 per hour. She has worked 33 hours during the past week. Direct material costs add up to R5,50 per burger, while the indirect material costs are R2 per burger. The total depreciation and insurance on the stall and equipment per week amount to R120. Gas for the gas stove and cleaning materials amounted to R1 250 for the past week. The rent for the site from which you operate amounts to R350 per week. 1.4.1 Calculate the direct labour costs for the week. 1.4.2 Calculate the direct material costs for the week. 1.4.3 Identify ONE fixed overhead cost. 1.4.4 Identify ONE variable overhead cost. 1.4.5 If the total production costs are R45 585, what will the cost of ONE burger be? TOTAL SECTION A: Place the completed ANSWER SHEET for QUESTION 1 in the front of your ANSWER BOOK. cop om TTT (20) (2) (3) (1) (1) (3) 100

Downloaded from hlayiso.com Business Economics/HG 9 DBE/2013 SCE SECTION B Answer any TWO questions from this section. QUESTION 2: FORMS OF OWNERSHIP Close corporations continue to exist despite the impact of the new Companies Act 2008. Discuss in detail the close corporation as a form of ownership. Conclude by motivating whether you think new close corporations should be formed or not. FACTUAL: 40 INSIGHT: 10 [50] QUESTION 3: MARKETING FUNCTION The Coca-Cola trademark is well-known all over the world. Since the early years consumers have had faith in the Coca-Cola products in every country they visit, even if they do not understand the language spoken there. This confirms that a popular trademark makes people trust the products associated with it. Write an essay on trademarks. What is the significance of the use of the '®' in the Coca-Cola trademark? FACTUAL: 40 INSIGHT: 10 [50] Conran rosened LA 0 A Pee tum over

Downloaded from hlayiso.com Business Economics/HG 10 DBE/2013 SCE QUESTION 4: FINANCIAL FUNCTION Ae vee ionamin) asa soclmmlumlsbed "UdoasLalt Fi The fruit and vegetable store above sells its products from boxes and crates, rather than from display fridges or cold rooms. The owner has indicated that his need for working capital is higher than his need for fixed capital. He prefers to use his own capital rather than borrowed capital. Explain the types of capital which are mentioned in this paragraph. Using examples from the fruit and vegetable store, discuss the factors that will determine the working capital requirements. Why do you think he has used his own capital rather than borrowed capital? FACTUAL: 40 INSIGHT: 10 [50] las OT AL ATL LIL iaataiiaeial

Downloaded from hlayiso.com Business Economics/HG ay DBE/2013 SCE QUESTION 5: PRODUCTION FUNCTION AND BUSINESS ENVIRONMENT SABS APPROVED CSIR our future through scionce The Council for Scientific and Industrial Research (CSIR) has licensed a new mobile cash protection system. This device is used by SBV Services in their cash-in-transit vehicles. The devices can be manufactured for SBV Services only, or for all other owners of cash-in-transit vehicles in South Africa and abroad. Explain the characteristics of the types of production systems that they can use in manufacturing. In addition, explain the role the CSIR has played, as well as the role that the SABS could play in the development and future production of the cash protection device. FACTUAL: INSIGHT: TOTAL SECTION B: Com ed NN Pose tun or 40 10 [50] 100

Downloaded from hlayiso.com Business Economics/HG 12 DBE/2013 SCE SECTION C Answer any FOUR questions from this section. QUESTION 6: FORMS OF OWNERSHIP 6.1 6.2 6.3 6.4 6.5 Two of your friends have decided to start a partnership. You feel that a partnership is not the best choice. Convince them NOT to start a partnership by highlighting FOUR disadvantages. They have already agreed upon certain matters. 6.2.1 Name the document which they will draw up to prevent trouble between the two of them. 6.2.2 Name FOUR items that should be included in their agreement. Apart from a close corporation and a partnership, what other form of ownership can the two of them form without allowing others to join? They did not want to start a public company because of the lengthy registration process. 6.4.1 Where must public companies be registered? 6.4.2 Which document(s) form the basis of the registration process? 6.4.3 Can a public company issue a prospectus? Motivate your answer. Tabulate FIVE differences between a private company and a public company. Copa rosaned Ln Peosetum over (8) (2) (2) (2) (4) (4) (20) [50]

Downloaded from hlayiso.com Business Economics/HG QUESTION 7: 13 SCE MARKETING AND PRODUCTION FUNCTIONS Nobunny knows Easter better than Cadbury's. DBE/2013 Study the list of products selected from the Cadbury catalogue below. DAIRY MILK CAKE BITES BEVERAGES BRUNCH BAR MISCELLANEOUS Hazelnut Caramel Cocoa Apricot & Almond Chomp Fruit & Nut Choc Chip Drinking Chocolate Choc Chip Crunchie Mint Crisp Fudge Hot Chocolate Fruit & Nut Flake Rum & Raisin Highlights Espresso Mixed Berry Lunch Bar Top Deck Toasted Coconut Milk Tray Turkish Delight Roses Sweetie Pie 7.1 Explain the product mix (width and depth) of Cadbury. Use examples from the list above. (8) | How will the following factors influence Cadbury's pricing? 7.2.1 Satisfaction of needs (4) 7.2.2 Availability of substitutes (4) 7.3 Cadbury, as well as other businesses, may use indirect and/or direct channels for the distribution of their products. Explain the difference between the TWO options. (4) 7.4 Justify their decision should they decide to sell products directly to consumers. (6) 7.5 Where would you buy Cadbury products if they were sold through the informal sector? Name THREE examples. (6) 76 Give FOUR unethical practices in advertising. (8) l. Besides fire prevention measures, name FIVE other safety measures that should be applied in a Cadbury factory. (10) [50] Copyright reserved GAUTENG Please turn over

Downloaded from hlayiso.com Business Economics/HG 14 DBE/2013 QUESTION 8: SCE FINANCIAL FUNCTION Study the picture below and answer the questions that follow. 8.1 8.2 8.3 8.4 8.4.1 8.4.2 8.5 8.5.1 8.5.2 ee © 8.5.4 Copyright reserved GAVIN FRESH FRUIT & Veg Discuss FOUR factors that will determine the need for fixed capital. Refer to GAVIN FRESH FRUIT & Veg in your answer. State FOUR duties of the credit department. Name THREE advantages of stockpiling for Gavin. AVAILABILITY OF CASH State THREE motives for keeping cash. Name FOUR advantages of having enough cash. PRINCIPLES OF INSURANCE Which principle of insurance applies when insurance covers losses to stock in the event of fire? Name the other principle of insurance. Briefly explain the term average clause. What can Gavin insure to protect his insurable interest? Name ONE. CUTAN AA iiceiaiatiel GAUTENG (12) (8) (6) (6) (8) (2) (2) (4) (2) [50]

Downloaded from hlayiso.com Business Economics/HG 15 DBE/2013 SCE QUESTION 9: GENERAL MANAGEMENT FUNCTION ORGANISATION CHART OF MANAGEMENT EUNICE General manager NATHAN Human resources manager I 4 Assistants MAHLANGU BRIAN NGCOBO SELWYN ANDRIES Purchasing Sales manager Financial manager Marketing and Transport manager manager administration menpaer 1 Foreman 1 Foreman 2 Heads of 2 Heads of 1 Supervisor divisions divisions 8 Workers. 25 Workers 8 Assistants each 2 Assistants each 3 Drivers 9.1 Identify the type of organisation structure used in the organisation chart. 9.2 Identify the THREE levels of management. Use examples from the organisational chart. | Name the SIX steps in planning that Andries, as transport manager, will apply when planning the work of his department. 9.4 List FIVE principles that are applied when planning is done. 9.5 Name the FOUR steps in control which will apply to all managers. 9.6 Why would proper communication between Mahlangu and his subordinates be very important? 9.7 Advise the managers on TWO principles they should apply when disciplinary action is taken against an employee. Copyright reserved Please turn over Motivate your answer. GAUTENG (4) (9) (12) (10) (8) (3) (4) [50]

Business Economics/HG 16 DBE/2013 Downloaded from hlayiso.com SCE QUESTION 10: MARKETING, PRODUCTION, ADMINISTRATION AND GENERAL MANAGEMENT FUNCTIONS AND BUSINESS ENVIRONMENT Study the pictures below and answer the questions that follow. Nando's name associated with A Nando's delivery van taking an event in Cape Town stock to outlets in Gauteng. 10.1 10.2 10.3 10.4 10.5 10.6 10.7 Coos 0 0 Pease um or Explain the difference between publicity and advertising. Refer to the two illustrations above and identify the ONE that represents publicity and the ONE that represents advertising. (Write the letters A and B in your ANSWER BOOK, and next to each either ‘publicity’ or 'advertising’.) Explain the term break-even analysis when determining production costs. Nando's would like to centralise the administrative activities at their head office. Advise them NOT to do so and explain why. Nando's uses the project organisation structure when they launch a new product. Explain this type of structure. If Nando's were a listed company and you decided to buy shares in it, where would it be listed? Name FOUR services this institution will render to you as an investor. Name FOUR functions of the South African Reserve Bank. (4) (4) (4) (10) (10) (10) (8) [50]

Downloaded from hlayiso.com Business Economics/HG 17 DBE/2013 SCE QUESTION 11: MISCELLANEOUS Answer any FIVE of the following questions. 11.1 Give FIVE reasons why a partnership may be dissolved. (10) 11.2 Name FIVE requirements of packaging. (10) 11.3 Name FIVE advantages of credit trading to the dealer. (10) 11.4 Name FIVE fire-prevention measures. (10) 11.5 Name FIVE disadvantages of decentralisation. (10) 11.6 Name FIVE ways in which employers can motivate their employees. (10) 7 Name FIVE functions of the chambers of commerce to their members. oe TOTAL SECTIONC: 200 GRANDTOTAL: 400 Copritesoned ANA A

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Downloaded from hlayiso.com Business Economics/HG SCE DBE/2013 EXAMINATION NUMBER: | | | CENTRE NUMBER: PLACE THE COMPLETED ANSWER SHEET FOR QUESTION 1 IN THE FRONT OF THE ANSWER BOOK. SECTION A —- ANSWER SHEET QUESTION 1 1.1. MULTIPLE-CHOICE QUESTIONS Answer each question by making a cross (X) in the appropriate block. afoafoa}joa}a)/o)/a)/a}/a ae pore pee beg pec erg ee peg ee P|D|S| P| P| S| P| P|} |}| P| P| H| PH) S| }| S| P| >|> (oolfve}icelfve}ivelivelive}iceliveliveivelive|iceliveliveliceivelicyicel ive] S]S]o|]Sla|R]a/N]S/S]O]O|NJO|ar] sw liy| afalajoa}/oa}ajoa}a/a}ajo pokey Pa pes De pe De be erg pe pe ee elisiielieliciiviieleliclivelieliviiclicliclielielicliviie) ollelelelelleleileiteleielleilelellelleielleitel(e) Conese AA 0 A (20 x 3) (60) 60

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Downloaded from hlayiso.com Business Economics/HG DBE/2013 SCE EXAMINATION NUMBER: CENTRE NUMBER: 1.2 | MATCHING ITEMS 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 (5x2) (10) 10 1.3. TRUE OR FALSE NUMBER | TRUE | FALSE CORRECTION 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 20 1.4 DATA RESPONSE 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 10 TOTAL SECTION A: 100 100 Conritesoved | NL LLL