Business Studies Grade 12 NSC June 2014 Question Paper (English)

Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS HIGHER GRADE 2014 MARKS: 400 TIME: 3 hours This question paper consists of 17 pages and a 2-page answer sheet. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 2 DBE/2014 SCE INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions. 1. 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. 2. Number the answers correctly according to the numbering system used in this question paper. 3. Rule off on completion of each answer. 4. Start the answers to EACH question on a NEW page. 5. Answers should be given in full sentences except where otherwise required. Candidates will be penalised for short, incomplete answers. 6. If more than SEVEN questions have been answered, only the first SEVEN applicable answers will be marked, namely:  QUESTION 1  The first TWO questions from SECTION B  The first FOUR questions from SECTION C 7. Clearly indicate answers that are NOT to be marked by writing 'CANCELLED' across the page. 8. Questions must be answered in black or blue ink. 9. Non-programmable calculators may be used. 10. Write you examination number and centre number in the spaces provided on the ANSWER SHEET.Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the ANSWER BOOK. 11. Write neatly and legibly. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 3 DBE/2014 SCE SECTION A (COMPULSORY) Answer QUESTION 1 on the ANSWER SHEET. Place the completed ANSWER SHEET for QUESTION 1 in the front of the ANSWER BOOK. QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS Various options are given as possible answers to the following questions. Choose the answer and make a cross (X) in die block (A–D) next to the question number (1.1.1–1.1.20) on the ANSWER SHEET. EXAMPLE: 1.1.21 A B C D 1.1.1 Which ONE of the following is an advantage of a sole trader? A High risk of failure B No legal entity C Does not pay tax D Small capital investment needed to start 1.1.2 In this business, profits are shared according to the percentage interest held by a member: A Co-operative society B Partnership C Close corporation D Private company 1.1.3 Which ONE of the characteristics below applies to a partnership only? A Legal entity/personality B Joint and separate liability for the debts of the business C Specific requirements regarding name D Registering with a legal body 1.1.4 Identify the document to be drawn up to establish a close corporation: A Founding statement B Certificate to commence business C Memorandum of agreement between members D Certificate of incorporation Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 4 DBE/2014 SCE 1.1.5 Joha and Mitch were equal partners in a partnership. They each received a salary of R150 000 per year. The partnership went bankrupt and R280 000 of debt still has to be settled. How much of the debt will Joha have to cover? A R0,00 B R75 000 C R140 000 D R280 000 1.1.6 A holding company obtains at least ...% of the issued capital of another company. A 30 B 55 C 51 D 60 1.1.7 The product mix of any business consists of the ... A width of the product lines. B depth of the products in a line. C relationship between the products. D All the above-mentioned 1.1.8 A Mbombela farmer selling oranges from a farm stall to passing motorists, is an example of … distribution. A multiple B single C direct D indirect 1.1.9 A business conducted for own gain based on the business idea of another: A Distribution B Advertising C Marketing D Franchising 1.1.10 What medium would you use to advertise a carnival in the local community? A Television B Pamphlets C Billboard alongside the freeway D Internet Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 5 DBE/2014 SCE 1.1.11 A free sample of a product to test before deciding to purchase, is an example of ... A sales promotion. B advertising. C personal sales. D publicity. 1.1.12 Which ONE of the following is NOT part of the marketing mix? A Product policy B Financial policy C Price policy D Marketing communication policy 1.1.13 Having more than one owner in a business influences the ... A number of employees in the business. B amount paid in salaries to employees. C time that the business is open per day. D total amount of capital put together. 1.1.14 When a business is over-capitalised, ... to rectify the situation. A the productivity of workers should be reduced B business activities should be reduced C business activities should be expanded D share capital should be expanded 1.1.15 The management function related to the drafting of rules and regulations for workers, and following up on trespassers: A Motivation B Communication C Delegation D Disciplinary action 1.1.16 What do we call the number of workers under the supervision of a foreman? A Authority B Span of control C Responsibility D Supervision Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 6 DBE/2014 SCE 1.1.17 Which element of management is described in the following quotation? 'Consider all alternatives to solve a problem and choose the best one.' A Decision-making B Planning C Organising D Co-ordination 1.1.18 Placement and induction of new employees is the specific duty of ... management. A financial B human resource C general D production 1.1.19 The transfer of tasks and the authority to exercise it, is called ... A delegation. B motivation. C co-ordination. D communication. 1.1.20 A plan drawn up by management to determine the future need for employees in the business, is a ... budget. A financial B expenses C human resources D assets (20 x 3) (60) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 7 DBE/2014 SCE 1.2 MATCHING ITEMS The following table refers to the functions of the South African Reserve Bank. Choose a term from COLUMN B that matches the description in COLUMN A. Write only the letter (A–H) next to the question number (1.2.1–1.2.5) on the ANSWER SHEET. COLUMN A COLUMN B 1.2.1 Controls the granting of A open market transactions credit by banks B bankers for the state 1.2.2 Acts as middleman between banks in paying debts C prime rate between them D credit rationing 1.2.3 Draws up regulations to handle money matters in the E clearing and settlement of country claims 1.2.4 Facilitates the buying and F monetary policy selling of state shares in order to control the flow of G control over currency rate money in the country H repo rate 1.2.5 Determines the rate at which money is lent to other banks (5 x 2) (10) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 8 DBE/2014 SCE 1.3 GIVE ONE WORD/TERM Give ONE word/term for each of the following descriptions. Write only the answer next to the question number (1.3.1–1.3.10) on the ANSWER SHEET. 1.3.1 This principle of insurance applies to life policies 1.3.2 The requirement for honesty by both parties in insurance 1.3.3 The amount not covered when a claim is lodged 1.3.4 Insurance against losses due to forced entry into premises 1.3.5 Insurance against losses due to the dishonesty of employees 1.3.6 The clause in a contract stating that the records of the business must be kept in a fire-proof safe 1.3.7 The risk and premium being shared by a number of insurance companies 1.3.8 Transferring the rights to an insurance policy to another person 1.3.9 Compulsory insurance where the employee and employer contribute 1% each of the employee's salary to a central fund 1.3.10 The fund in which a levy on the fuel price makes provision for claims by road users in the case of accidents on South African roads (10 x 2) (20) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 9 DBE/2014 SCE 1.4 DATA RESPONSE Choose a statement from the table that describes each of the following the best. Write only the letter (A–G) next to the question number (1.4.1–1.4.5) on the ANSWER SHEET. A Consol Glass manufactures several different types of glass containers and bottles in large quantities for use by many other South African businesses in their manufacturing activities. B The glass bottles should be strong enough to contain liquids under pressure. C The machines used in the manufacturing of the bottles should be well maintained to ensure continued production. D Workers are skilled in a specific task and everything possible is done to ensure that they perform their duties in the most efficient way. E Waste material should be kept to a minimum. F Raw material stock should be available at all times. G Workers work in extreme heat. Select from the statements one that refers to: 1.4.1 Quality control (2) 1.4.2 Wearing protective clothing (2) 1.4.3 Method study (2) 1.4.4 Interrupted and uninterrupted production (2) 1.4.5 Preventative maintenance (2) TOTAL SECTION A: 100 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 10 DBE/2014 SCE SECTION B Answer any TWO questions from this section. QUESTION 2: FORMS OF OWNERSHIP One of the best ways to ensure that you maintain control in a business is to establish a private company, especially because of the ease with which it can be established. Motivate this statement. Factual: (40) Insight: (10) [50] QUESTION 3: MARKETING FUNCTION While many forms of packaging are designed to serve various purposes, marketers need to follow certain guidelines to satisfy the producers, manufacturers of products, dealers and the general public. Explain the above statement in detail, using appropriate examples. Factual: (40) Insight: (10) [50] QUESTION 4: FINANCIAL FUNCTION Allowing sales on credit can be both rewarding as well as risky. Risks can be reduced if the credit department performs its duties properly in the various roles it has to play, especially regarding overdue accounts. Indicate in detail how the credit department should function. Factual: (40) Insight: (10) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 11 DBE/2014 SCE QUESTION 5: GENERAL MANAGEMENT FUNCTION Besides the additional elements of the general management tasks, the basic elements of planning, organising, leading and control still remain more significant. Give a description of these tasks. (20) While both planning and control need to be performed according to a suggested order, they remain closely related. Explain this statement. (20) Factual: (40) Insight: (10) [50] TOTAL SECTION B: 100 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 12 DBE/2014 SCE SECTION C Answer any FOUR questions from this section. QUESTION 6: FORMS OF OWNERSHIP 6.1 Discuss THREE disadvantages of a sole trader. (9) 6.2 For partners in a partnership to co-operate without any problems it is advisable to put each partner's rights and duties in writing. Explain any THREE such rights and duties. (9) 6.3 Explain how profits can be shared in a partnership. (4) 6.4 Explain the differences between a close corporation and a partnership with regards to: 6.4.1 Taxation (4) 6.4.2 Liability for debts (4) 6.5 When a public company is formed, certain documents have to be drawn up. Describe each of the following documents briefly: 6.5.1 Memorandum of association (4) 6.5.2 Articles of association (4) 6.5.3 Prospectus (4) 6.6 When Mass Mart and Wall Mart amalgamated, they presented several reasons to the Competition Commission to justify their decision. Give FOUR possible reasons they could have mentioned. (8) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 13 DBE/2014 SCE QUESTION 7: MARKETING AND PRODUCTION FUNCTIONS 7.1 Name the THREE types of consumer goods and give an example of each. (9) 7.2 Explain the difference between a dealer's trademark and a manufacturer's trademark. (4) 7.3 State FOUR factors that influence prices. (8) 7.4 Illustrate possible channels for distributing fresh fruit. (8) 7.5 When an advertising practitioner designs an advertisement he/she applies certain principles. State FIVE of these principles. (10) 7.6 Answer the following questions that refer to unethical practices in advertising. 7.6.1 What do you understand by unethical? (2) 7.6.2 Give THREE examples of unethical advertising. (6) 7.6.3 What can the public do about unethical advertising? (3) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 14 DBE/2014 SCE QUESTION 8: FINANCIAL FUNCTION 8.1 John has enough of his own money to purchase a small cafe but is considering applying for a loan to expand it. Explain to him the difference between own and borrowed capital. (4) 8.2 What effect does under-capitalisation have in running a cafe? (6) 8.3 Zandile wants to invest money in either shares or debentures. 8.3.1 Help her to decide by tabulating THREE differences between shareholders and debenture holders. (6) 8.3.2 What would you advise her to do and why? (4) 8.4 Differentiate between fixed and working capital. (4) 8.5 Excess stock is not good for any business. Justify this statement by giving FOUR reasons. (8) 8.6 Name and explain any TWO reasons for keeping cash in a business. (8) 8.7 Use the data from the financial records of Wisdom Forever Ltd and answer the questions that follow. ISSUED SHARE CAPITAL R2 100 000 Ordinary shares (140 000 of R15 each) R2 100 000 LONG-TERM LOANS R1 050 000 Mortgage bond on buildings (8,5%) R1 000 000 Debentures R50 000 FIXED ASSETS R3 006 000 CURRENT ASSETS R184 000 Stock R72 000 Debtors R92 000 Cash R20 000 CURRENT LIABILITIES R40 000 Creditors R30 000 Bank overdraft R10 000 8.7.1 Explain the term liquidity. (2) 8.7.2 Calculate the current ratio and acid-test ratio of Wisdom Forever Ltd. (8) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 15 DBE/2014 SCE QUESTION 9: PRODUCTION FUNCTION 9.1 Bakeries can apply different production systems. Name the systems and describe each one. Give ONE example of a product from a bakery for each system. (21) 9.2 Guest houses have to take safety precautions to safeguard the life of visitors. Name FIVE safety measures that you would apply in a guest house. (10) 9.3 Use the information below to answer the questions that follow. Show ALL calculations. Your business does printing on T-shirts. During the past month you printed 2 500 T-shirts. You, as manager, earn R12 000 per month. The two workers earn R8 000 each per month. In addition, there is a general assistant who earns R3 500 per month. The direct material (ink) used per T-shirt costs R35 while the cost of indirect material is R5 per T-shirt. Depreciation and insurance for the month total R12 500, while electricity and water equals R5 500. You pay R6 000 rent per month for the premises from which you operate. 9.3.1 What would you add together to determine the primary cost? (4) 9.3.2 Calculate the fixed overhead costs. (6) 9.3.3 Identify ONE variable overhead cost. (2) 9.3.4 Calculate the cost per unit. (7) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 16 DBE/2014 SCE QUESTION 10: ADMINISTRATION AND GENERAL MANAGEMENT FUNCTIONS AND BUSINESS ENVIRONMENT 10.1 Mynhardt's, a sweets manufacturer with production units across the country, recently decided to move all administrative functions to one office in Johannesburg. State FIVE factors that would have influenced their decision to centralise these activities. (10) 10.2 Name FIVE ways to motivate employees to perform at their best. (10) 10.3 Name and discuss the THREE levels of management in a business by referring to the decisions taken and the field of responsibility. (12) 10.4 An engineering firm has to plan the building of a dam in the mountains near Howick. Explain how they could use either the project organisational structure or the matrix organisational structure in the planning of the task. (8) 10.5 State FIVE functions of the Council for Scientific and Industrial Research. (10) [50] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/HG 17 DBE/2014 SCE QUESTION 11: MISCELLANEOUS Answer any FIVE of the following questions. 11.1 Name FIVE functions of the South African Bureau of Standards (SABS). (10) 11.2 Name FIVE characteristics of a public company. (10) 11.3 Name FIVE requirements of trademarks. (10) 11.4 Name FIVE functions of the Johannesburg Securities Exchange Ltd (JSE Ltd). (10) 11.5 Name FIVE sources of information on prospective buyers/debtors. (10) 11.6 Name FIVE advantages of stockpiling. (10) 11.7 Name FIVE functions of Chambers of Commerce to their members. (10) [50] TOTAL SECTION C: 200 GRAND TOTAL: 400 Copyright reserved

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Downloaded from hlayiso.com Business Economics/HG DBE/2014 SCE 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 1.1.1 A B C D 1.1.2 A B C D 1.1.3 A B C D 1.1.4 A B C D 1.1.5 A B C D 1.1.6 A B C D 1.1.7 A B C D 1.1.8 A B C D 1.1.9 A B C D 1.1.10 A B C D 1.1.11 A B C D 1.1.12 A B C D 1.1.13 A B C D 1.1.14 A B C D 1.1.15 A B C D 1.1.16 A B C D 1.1.17 A B C D 1.1.18 A B C D 1.1.19 A B C D 1.1.20 A B C D (20 x 3) (60) 60 1.2 MATCHING ITEMS 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 (5 x 2) (10) 10 Copyright reserved

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Downloaded from hlayiso.com Business Economics/HG DBE/2014 SCE EXAMINATION NUMBER: CENTRE NUMBER: 1.3 ONE WORD/TERM 1.3.1 1.3.2 1.3.3 1.3.4 1.3.5 1.3.6 1.3.7 1.3.8 1.3.9 1.3.10 (10 x 2) (20) 20 1.4 DATA REACTION 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 (5 x 2) (10) 10 TOTAL SECTION A: 100 100 Copyright reserved