# Business Studies Grade 12 NSC June 2013 Question Paper

> Grade 12 Business Studies question paper from the NSC June 2013, 21 pages. Read online or get the free PDF download, memo linked when available.

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- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Question paper
- Year: 2013
- Exam period: NSC June
- Curriculum: CAPS
- Pages: 21

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## About this document

Business Studies · Grade 12 · NSC June · 2013. Question paper, 21 pages. Read online or download the PDF.

Read it free online on the page above; download the PDF from there.

## Document text

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### Page 1

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

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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

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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

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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

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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

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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

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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)

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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)

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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

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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]

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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

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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

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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]

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Business Economics/SG 14 DBE/2013

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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]

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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]

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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

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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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### Page 19

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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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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

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