Business Studies Grade 12 NSC June 2013 Question Paper

basic education Department: Basic Education REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS STANDARD GRADE 2013 MARKS: 300 BUSINESS ECONOMICS SG TIME: 3 hours 4022E 40220E This question paper consists of 17 pages and an answer sheet of 2 pages. X@5 wn GAUTENG Please turn over Copyright reserved

Downloaded from hlayiso.com Business Economics/SG 2 DBE/2013 SCE INSTRUCTIONS AND INFORMATION Read the following instructions/information carefully before answering the questions. 1. This question paper consists of TWO sections, namely SECTION A and SECTION B. SECTION A: This section is COMPULSORY and consists of ONE question with various subsections. An ANSWER SHEET consisting of two pages is attached for QUESTION 1. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the ANSWER BOOK. SECTION B: Consists of EIGHT questions. Answer any FIVE questions from this section. Number the answers correctly, according to the numbering system used in this question paper. Rule off across the page 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 SIX questions have been answered, only the first SIX applicable answers will be marked, namely: e QUESTION 1 e First FIVE questions from SECTION B Clearly indicate questions that are NOT to be marked by writing CANCELLED across the page. Questions must be answered in black or blue ink. Pay attention to neatness, handwriting and language. Non-programmable calculators may be used. Conese TUT CC a

Downloaded from hlayiso.com Business Economics/SG 3 DBE/2013 SCE SECTION A (COMPULSORY) Answer QUESTION 1 on the attached ANSWER SHEET. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the ANSWER BOOK. QUESTION 1 4.4 MULTIPLE-CHOICE QUESTIONS Various options are provided as possible answers to the following questions. Choose the correct answer and make a cross (X) in the appropriate block on the ANSWER SHEET. There is only ONE correct answer to each question. EXAMPLE: 1.1.17 [A] Blic tex] 1.1.1 In this business the profits are shared according to the volume of transactions of each member: A_ Close corporation B_ Private company C_ Public company D Agricultural cooperative society 1.1.2 The aspect of the marketing policy that deals with advertising, personal sales and publicity of a product: A Product policy B_ Price policy C Communication policy D_ Distribution policy 1.1.3 Calculate the rate of stock turnover by using the following information: Sales for the year — R72 000 Cost of sales for the year — R36 000 Stock at the beginning of the year — R8 000 Stock at the end of the year — R4 000 9 times 6 times 3 times 2 times when 2 Coprihesoned ALA A 0 08 Pee tum ove

Downloaded from hlayiso.com Business Economics/SG 4 DBE/2013 SCE 1.1.4 In a ... organisation structure, only one person issues instructions. 1.1.5 Copyright reserved A line B line and staff C_ functional D_ matrix The SA Coin Company (Pty) Ltd is associated with the ... A_ Corporation for Public Deposits. B South African Reserve Bank. C_ South African Bureau of Standards. D_ Land Bank. From the following forms of ownership, identify those with limited liability for their owners: A Sole trader and close corporation B_ Private company and partnership C_ Close corporation and public company D_ Sole trader and partnership A good advertisement: (i) _ Is always in colour (ii) Arouses interest (iii) Attracts attention (iv) Leads to action (v) Creates a desire for the product Choose the correct combination: A All the above-mentioned B (ii), (iii) and (iv) C (i), (ii), (ii) and (iv) D (ii), (iii), (iv) and (v) This process takes place when a business sells its debtors' accounts at a discount to an outsider: Factoring Depreciation Indemnification Scheduling 0OWDY CUTAN OAL coaceanael GAUTENG

Downloaded from hlayiso.com Business Economics/SG 5 DBE/2013 SCE ve Which element of management is described in the following 1.1.10 1.1.11 1.1.12 1.1.13 Copyright reserved quotation? Determination of deviations by comparing actual results with planned results in order to take corrective steps. A Controlling B_ Organising C_ Decision-making D_ Coordinating Select TWO functions of the Council for Scientific and Industrial Research (CSIR) from the following: (i) | Helps to bring about and develop environmental conservation services (ii) Assists with development of the mining industry in South Africa (iii) Offers the opportunity to convert an investment into cash (iv) Uses surplus funds of the public sector to the advantage of the country (v) Formulates and implements monetary policy Choose the correct combination: A (ii) and (iii) B_ (i) and (ii) C_ (iv) and (v) D (iii) and (iv) Monzamo Traders insured its factory for R900 000. The actual value of the factory is R1 000 000. What will be the compensation for the loss of R235 000 caused by flooding? A R100 000 B_ R150 500 C R211 500 D R235 000 The product range (width) of a business refers to the ... A_ marketing strategy of a business. B_ different steps followed in the design of a product. C_ distance a product is transported to the consumer. D_ variety of products manufactured. Top management is responsible for ... decisions of a business. general tactical strategic operational eens UMNO ALO A Pease turn over GSUTENG

Downloaded from hlayiso.com Business Economics/SG 6 DBE/2013 SCE 1.1.14 Calculate the acid-test ratio by using the following information: Vehicles — R100 000 Debtors — R62 000 Stock — R8 000 Bank — R18 000 Creditors — R20 000 vuaWwDY onnhw AAAS 1.1.15 A shop on a farm, 20 km from Kuruman, buys stock from a retailer in town. The latter buys the stock from an agent who visits the town regularly. What type of distribution channel is being used? A Indirect channel B_ Single channel C_ Direct channel D Nochannel is used 1.1.16 These shares are issued to the promoters of a company: Bonus shares Ordinary shares Preference shares Founders' shares (16 x 3) (48) wen Con eed AA ULNAR ee

Downloaded from hlayiso.com Business Economics/SG Z 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-l) next to the question number (1.2.1-1.2.5) on the ANSWER SHEET, for example 1.2.6 J. COLUMN A COLUMN B 74) The consumer wants a specific HD A ordinary plasma television set and is willing to pay a much higher price for the name | B objective and quality of the set C double-use packaging 7 The holders of these shares receive dividends only when the holders of all | D speciality packaging the other types of shares have received their specific dividends E current capital ratio 1.2.3 The consumer buys the product to F speciality goods obtain the contents as well as the container G participating 1.2.4 The ability of the business to meet its | H solvency short-term cash payment obligations | select goods 1.2.5 This stipulates how the aim of a business will be achieved and must be set out in measurable terms 1.3 TRUE OR FALSE (5x2) 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 (1.3.1-1.3.11) on the ANSWER SHEET. EXAMPLE: 1.3.12 A sole trader has only one owner. 1.3.1 1.3.2 1.3.3 1.3.4 Copyright reserved NUMBER | _TRUE FALSE 1.3.12 X Jermaine Dealers Ltd is compelled to hold annual general meetings for its shareholders. Toothpaste, which is usually bought without spending considerable time and trouble, is an example of a convenience good. Bank charges are a source of working capital. One of the disadvantages of mass production is that products are produced at lower unit costs. FEU AU ANA A Please turn over GAUTENG (10)

Downloaded from hlayiso.com Business Economics/SG 8 DBE/2013 SCE 1.3.5 Lower management is a link between middle management and workers at ground level. 1.3.6 A function of the Land Bank is to supply financial assistance to farmers to build sport facilities for the local schools on their farms. 1.3.7 The articles of association is the document which states the internal rules and regulations of Cox (Pty) Ltd. 1.3.8 A competitor's name may be mentioned in an advertisement, as long as there are no swear words in it. 1.3.9 Fixed capital is that portion of the total capital used to purchase assets, such as land, buildings and equipment. 1.3.10 Planning needs to be adjustable and revised on a continuous basis. 1.3.11 The Council for Scientific and Industrial Research (CSIR) assists in the development of products and services. (11 x 2) 1.4 FILL IN THE MISSING WORD/TERM Complete the following sentences by using the words/terms provided in the list below. Write only the word/term next to the question number (1.4.1—1.4.5) on the ANSWER SHEET, for example 1.4.6 leading. re-insurance; motivation; work study; break-even analysis; delegating; franchising; fidelity insurance; publicity 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 Copyright reserved A press release is an example of ... ... takes place when one insurer shares the risk of the policy with other insurers. An employer may take out ... against losses resulting from the dishonesty of an employee. The objective of ... is to develop a more efficient way of, and a standard time for, executing a task in order to improve productivity. . is the process of influencing and guiding human behaviour to comply with the policy of the business. (5 x 2) FAUT AAAI AO AAG Pease tun over (22) (10)

Downloaded from hlayiso.com Business Economics/SG 9 DBE/2013 SCE 1.5 DATA RESPONSE Study the illustration below and answer the questions that follow. GARDENS TECHNO cc 1.5.1 What are the nine owners of this type of business called? (2) 1.5.2 What is the maximum number of owners Gardens Techno CC can expand to? (2) 1.5.3 What document is used to establish this type of business? (2) 1.5.4 Does this business have unlimited continuity? (2) 1.5.5 How are the profits shared in this business? (2) TOTAL SECTION A: 100 NOTE: Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of your ANSWER BOOK. Conran resened AA AU 0 Pease tum vr

Downloaded from hlayiso.com Business Economics/SG 10 DBE/2013 SCE SECTION B Answer any FIVE questions from this section. QUESTION 2: FORMS OF OWNERSHIP 2.1 Melissa Sabokazi is the owner of The Mushroom Shop in Amanzimtoti. The business is not a legal entity where no distinction is made between the business and the owner. She has inherited a large amount of money from her late father and is uncertain about whether to expand the business or not. 2.1.1 Identify the form of ownership in the scenario above. -_ Give FOUR disadvantages of this form of ownership for Melissa. 2.1.3 Which other form of ownership will you suggest to Melissa if she wants to take on more owners, while still retaining the current legal status of the business? 2.1.4 Tabulate THREE differences between the current form of ownership and the proposed form of ownership under the following headings: (a) Management (b) Formation (c) Profit sharing 2.2 Pete and Susan Rossouw, owners of The Mushroom Factory in Port Shepstone, negotiated a possible merger (amalgamation) between the two businesses with Melissa. What type of merger will take place, should it materialise? Motivate your answer. 2.3 Give any SIX reasons for amalgamation. Conyers AA 0 Pose tum or (2) (8) (2) (12) (4) (12) [40]

Downloaded from hlayiso.com Business Economics/SG 11 DBE/2013 SCE QUESTION 3: MARKETING FUNCTION 3.1 A trademark is an image or value connected to the products of a business. It identifies and distinguishes the goods and services of a supplier from those of competitors. FNB Y ‘ First Notional Bank “og ? \V// | Dy SOUTH AFRICAN NN 2 AIRWAYS Ket} + WOOWORTHS vodacom Sanlam 27 Give SIX requirements of a good trademark. (12) 3.1.2 Explain the THREE stages that can be distinguished in the acceptance of a trademark by the public. (9) 3.1.3 Woolworths markets all the products offered in their shops under the same trademark. Name this type of trade mark. (2) 3.2 Annie operates her business in Caledon Street, East London. 3.2.1 Is Annie operating within the formal or informal sector? Give a reason for your answer. (4) Cro om A EN) smn

Downloaded from hlayiso.com Business Economics/SG 12 DBE/2013 SCE 7 Explain ONE advantage of operating as a formal business. (3) 3.2.3 State FOUR disadvantages of the informal sector. (8) 3.2.4 State ONE other example of trade in the informal sector. (2) [40] QUESTION 4: FINANCIAL FUNCTION 4.1 Simphiwe and Sandy are sales staff at Auto Car Dealers, a second-hand car dealer that sells only for cash. They are putting together a proposal for the owner on the possibility of establishing a credit department for the business because they have had a poor sales record for the past six months. 4.1.1 State FOUR advantages of Auto Car Dealers allowing credit. (8) 4.1.2 The new credit department will have to determine the risk of every customer by investigating his/her creditworthiness. State FIVE other duties of the credit department. (10) 4.1.3 Explain TWO sources that may be used to determine the credit- worthiness of a prospective customer. (6) 4.2 Do you think it is necessary for Auto Car Dealers to be insured? Give FIVE reasons to substantiate your answer. (12) 4.3 State the TWO conditions for an insurance contract. (4) [40] Conran rosned AA 0 0 Peoe um over

Downloaded from hlayiso.com Business Economics/SG 13 DBE/2013 SCE QUESTION 5: PRODUCTION AND MARKETING FUNCTIONS 5.1 Sandiswa is the quality-control foreman in the packing depot on Oranges for Life farm in Mpumalanga. The oranges are sorted according to size and packed in boxes for the local and export markets. 5.1.1 Give FOUR reasons why quality control is important. _ Explain TWO types of maintenance systems that can be used for the mechanical equipment in the depot. 5.1.3 Name FIVE safety measures that are applicable to the packaging depot. 5.1.4 State any TWO basic objectives of packaging that must be taken into consideration when marketing the oranges. 5.1.5 Packaging must adhere to certain requirements. Use any TWO requirements for packaging and indicate how the oranges can be packed to adhere to those requirements. 5.1.6 Name THREE factors that can influence the price of the oranges. Conmatrosned ANAL 0 Pose tum over (8) (6) (10) (4) (6) (6) [40]

Business Economics/SG 14 DBE/2013 Downloaded from hlayiso.com SCE QUESTION 6: GENERAL MANAGEMENT Valerie Smith and her five departmental managers had a workshop to clarify a few issues. 6.1 6.2 6.3 6.4 6.5 Conran esoned AANA Pesetum ove Valerie is of the opinion that the decrease in the sales figures for the past three months, is due to the sales manager not having planned well for his department. Name the steps in the planning process she is referring to. Dennis was employed in the purchasing department of the business and made several costly mistakes. When he was dismissed from his job he decided to appeal to the Commission for Conciliation, Mediation and Arbitration (CCMA) to be reinstated. He mentioned to the CCMA that all communication took place in isiXhosa, a language in which he was not fluent. 6.2.1 Do you think his dismissal was justified? Give a reason for your answer. 6.2.2 Name TWO ways in which the business can improve internal communication. Give FOUR examples of how Tauriq Dollie, the marketing manager, can motivate the workers in his department to increase their productivity without increasing their salaries. Money went missing in the financial department. The manager, Kyla Terry, suspected that one of the clerks was involved. Advise her on THREE principles she should apply when disciplinary action is taken. Give THREE reasons why controlling is so important in the different departments. (12) (4) (4) (8) (6) (6) [40]

Downloaded from hlayiso.com Business Economics/SG 15 DBE/2013 SCE QUESTION 7: ADMINISTRATIVE FUNCTION AND FORMS OF OWNERSHIP 7.1 Study the illustration of the administration office of Charlton Pty (Ltd) below and answer the questions that follow. 7.1.1 Are the administrative activities of this business centralised or decentralised? Give ONE reason to motivate your answer. (4) 7.1.2 Name FOUR advantages of the system you have chosen in QUESTION 7.1.1. (8) 7.1.3 List FIVE factors which could have influenced the decision to centralise or decentralise the administrative activities. (10) _. The members of Charlton (Pty) Ltd want to change the company to a public company as from 2014. State SIX advantages of forming a public company. (12) 7.3 How can Charlton Ltd become a controlling company? (6) [40] Conroe LO Peosetum over

Downloaded from hlayiso.com Business Economics/SG 16 DBE/2013 SCE QUESTION 8: PRODUCTION FUNCTION AND THE BUSINESS ENVIRONMENT 8.1 Lindie Fourie is making a dress for Thulani Sepo to wear to her matric dance in November. Thulani gave Lindie the specific pattern for the dress. 8.1.1 Identify the type of production system that is used by Lindie Fourie. (2) 8.1.2 State any FOUR disadvantages of such a system. (8) 8.1.3 Give ONE example of the following costs Lindie will incur in the manufacture of the dress: (a) Direct labour cost (b) Direct raw material cost (c) Fixed overhead cost (6) 8.2 Study the photographs below and answer the questions that follow. 8.2.1 Give the correct names of the TWO institutions. (4) a CAUTION AO ALO Pease turn over

Downloaded from hlayiso.com Business Economics/SG 17 DBE/2013 SCE 8.2.2 The JSE makes an important contribution to the economic stability and growth of South Africa by providing a market for negotiable securities. Name FIVE other services of the institution. (10) 8.2.3 Name FIVE services of the SABS. (10) [40] QUESTION 9: MISCELLANEOUS Answer any FOUR of the following questions. 9.1 Name FIVE characteristics of a private company. (10) 9.2 Give FIVE reasons why a manufacturer will use agents in the distribution process. (10) 9.3 Name FIVE disadvantages of stockpiling. (10) 9.4 Name FIVE advantages of having sufficient cash on hand. (10) 9.5 Name FIVE advantages of the line and staff organisation structure. (10) 9.6 Name FIVE functions of the chamber of commerce. ey TOTAL SECTION B: 200 GRAND TOTAL: 300 Cont esoned NANA

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Downloaded from hlayiso.com Business Economics/SG DBE/2013 SCE CENTRE NUMBER: EXAMINATION NUMBER: PLACE THE COMPLETED ANSWER SHEET FOR QUESTION 1 INSIDE THE FRONT COVER 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. 3)a)safs]s)]a]a])o]o]o]o]o]o/o/a)a Sa fofoyoyoyoyoyu yaya yoyo yoyo ala]a]a]aja}a|olo|Nlolo|s)oliejs OO] B/O/N} 3/0 Dl DS| P| P| P| D| P| D/H | P| S| >| D>) >| >| > fvelfosltveliveltveliveliveliveliveiveivadtesiedtesliesiics) QINJONJONJONJNJOJOJ/O/O/O/O/O}N/N|O DOOOJOJO/OJOjO/O|O|Ojojojojo (16 x 3) (48) 1.2 MATCHING ITEMS Write only the letter (A—I) from COLUMN B next to the relevant question number. 1.2.1 1.2.2 1.2.3 1.2.4 1.2.5 (10) Cont reser ALA

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Downloaded from hlayiso.com Business Economics/SG DBE/2013 SCE CENTRE NUMBER: EXAMINATION NUMBER: 1.3. TRUE OR FALSE Make a cross (X) in the appropriate block. NUMBER | TRUE | FALSE 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 1.3.11 (11x 2) (22) 1.4 FILLIN THE MISSING WORD/TERM 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 (5x2) (10) 1.5 DATA RESPONSE 1.5.1 1.5.2 1.5.3 1.5.4 1.5.5 (5x 2) (10) TOTAL SECTION A: 100 Cont esoned ANA A