Business Studies Grade 12 NSC June 2014 Memo (English)

basic education ers Department: }); Basic Education Ss REPUBLIC OF SOUTH AFRICA SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS STANDARD GRADE 2014 MEMORANDUM MARKS: 300 This memorandum consists of 20 pages. Copyright reserved Please turn over

Downloaded fr om hlayiso.com 2 Business Economics/SG DBE/2014 SCE - Memorandum SECTION A ANTSWER SHEET QUESTION 1 1.1 MULTIPLE CHOICE QUESTIONS 1.1.1 AX B c D 1.1.2 A B cx D 1.1.3 A B Cc DX 1.1.4 A BX Cc D 1.1.5 A BX Cc D 1.1.6 A B Cc DX 1.1.7 A B Cx D 1.1.8 AX B c D 1.1.9 A B Cc DX 1.1.10 AX B Cc D 1.1.11 A B CX D 1.1.12 A BX Cc D 1.1.13 A B c DX 1.1.14 AX B Cc D 1.1.15 A B Cx D 1.1.16 A BX Cc D (16 x 3) 1.2 MATCHING ITEMS 1.2.1 A 1.2.2 F 1.2.3 G 1.2.4 D 1.2.5 J (5 x 2) 1.3 TRUE OR FALSE NUMBER | TRUE FALSE 1.3.1 x 1.3.2 xX 1.3.3 b4 1.3.4 4 1.3.5 x 1.3.6 x 1.3.7 x 1.3.8 D4 1.3.9 Xx 1.3.10 x 1.3.11 x (11 x 2) Copyright reserved Please turn over (48) (10) (22)

Downloaded from hlayiso.com Business Economics/SG 3 DBE/2014 SCE — Memorandum 1.4 CHOOSE THE CORRECT TERM 1.4.1 Founding statement 1.4.2 Directors 1.4.3 Prospectus 1.4.4 Horizontal 1.45 Holding (5 x 2) 1.5 DATA RESPONSE 1.5.1 R8 054 000 vWWV V7 OR (8 000 000 V + 24 000 V + 30 000 V = R8 054 000 1) 1.5.2 400 000 Vv OR (4 600 000 ¥/ 41) IF R SIGN WITH CORRECT ANSWER = -1 Bonus shares VV Participating VV Copyright reserved TOTAL SECTION A: Please turn over (10) (10) 100

Business Economics/SG Downloaded from hlayiso.com 4 DBE/2014 SCE - Memorandum GUIDELINES FOR MARKING SECTION B * * MARK ONLY THE FIRST FIVE QUESTIONS IN SECTION B QUESTIONS 2-9: THE ANSWERS IN THE MEMORANDUM ARE ONLY A GUIDELINE. CANDIDATES MAY USE WORDS/NAMES/CONCEPTS/PHRASES FROM OTHER SOURCES WHICH MAY HAVE THE SAME MEANING AS THOSE GIVEN IN THE MEMORANDUM. READ VERY CAREFULLY THROUGH THE RESPONSE OF EACH CANDIDATE. IF THE CANDIDATE IS ASKED TO STATE, FOR EXAMPLE, FOUR FACTS, ONLY THE FIRST FOUR RESPONSES MUST BE MARKED. ACCEPT PHRASES INSTEAD OF FULL SENTENCES FOR 'NAME/LIST' QUESTIONS. IN QUESTIONS WHERE THREE MARKS ARE ALLOCATED FOR A FACT, IT IS RECOMMENDED THAT CANDIDATES MAKE USE OF HEADINGS AS INDICATED IN THE MEMO. CANDIDATES CAN OBTAIN THE FULL THREE MARKS IN A DETAILED EXPLANATION WITHOUT A HEADING. Copyright reserved Please turn over

Business Economics/SG Downloaded from hlayiso.com 5 DBE/2014 SCE - Memorandum QUESTION 2: FORMS OF OWNERSHIP 2.1 2.1.1 FORM OF OWNERSHIP Public company VV (2) 2.1.2 FIVE ADVANTAGES OF A PUBLIC COMPANY The liability of shareholders is limited VV It is a legal entity It has unlimited continuity Can raise large amounts of capital Shares are freely transferable May be listed on the JSE Ltd Shares can be converted into cash with ease Experts can be appointed as directors Management of company acts independent from shareholders ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY5x2) (10) 2.1.3 FOUR DETAILS IN THE ARTICLES OF ASSOCIATION directors dividends shares meetings VV accounting records amendments ACCEPT ANY OTHER SUITABLE DETAIL (ANY 4x2) (8) 2.1.4 COMPARISON BETWEEN PRIVATE COMPANY AND PUBLIC COMPANY PRIVATE COMPANY PUBLIC COMPANY (DAIRY CREAM ) Pty) Ltd) (CREAMLICIOUS Ltd) Contribution | Contributed by founders | Raised by _ selling of capital vv shares to public Vv Management | At least 1 director At least 2 = (1) directors Meetings Not compulsory — for | Compulsory for shareholders meetings shareholders meetings (3x4) (12) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 6 DBE/2014 SCE - Memorandum 2.2 FOUR ADVANTAGES OF AMALGAMATION e Amalgamated businesses are often more efficient than before VV e It becomes easier for a small, unknown business to get loans e Sharing of knowledge, work methods and techniques e Horizontal amalgamation ensures constant prices e Expand business e Income/Sales higher e Combine production e Eliminate competition ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY 4 x 2) 2.1 32 2.2 8 TOTAL | 40 QUESTION 3: MARKETING FUNCTION 3.1 3.1.1 FORM OF PACKAGING Combination packaging/multiple packaging VV 3.1.2 THREE FORMS OF PACKAGING Speciality VV - products are packed to create a certain image or example V Re-usable — can be used for the same purpose again or example Double-use — container may be used for something else or example Kaleidoscopic — packaging represents a certain event and changes continuously or example Immediate use — consumer can open it effortlessly or example Unique -— consumer buys the product mainly to obtain the container or example ACCEPT ANY OTHER FORM OF PACKAGING DO NOT ACCEPT COMBINATION/MULTIPLE PACKAGING (SEE 3.1.1) IF ANSWER IN 3.1.1 IS INCORRECT — ACCEPT COMBINATION/ MULTIPLE PACKAGING Copyright reserved HEADING = VV EXPLAIN = V (ANY 3 x3) Please turn over (8) (2) (9)

3.1.3 3.2 3.2.1 3.2.2 Copyright reserved Downloaded from hlayiso.com Business Economics/SG 7 DBE/2014 SCE - Memorandum THREE REQUIREMENTS OF PACKAGING Must be eye-catching VV - attract immediate attention of consumers V Satisfy the requirements of dealers — dealers may have specific requirements for their stores Must be designed for the target market — example: hotels need shampoo in small bottles for rooms Must be different from competitors — for easy identification Must promote the image of the business — example: name of wine maker to be engraved on bottle Must be well designed and strong — easy to handle and should not damage the content Must promote sales — example: colourful; attractive; well designed Must suit the product —- example: liquid in glass or plastic bottles Must be suitable for display purposes — example: stacked on shelves ACCEPT ANY OTHER REQUIREMENT OF PACKAGING HEADING = VV EXPLAIN = V¥ (ANY 3x3) (9) TWO ADVANTAGES OF THE INFORMAL SECTOR Income opportunities VW Creates work Creates opportunities for entrepreneur Stimulates mixed market system Supplies goods and services to consumer Low capital layout Not registered as VAT-vendor if income is less than certain amount ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY2x2) (4) TWO OTHER EXAMPLES OF INFORMAL SECTOR spaza shops/house shops/garage shops VV flea markets hawkers home industries vending machines barbers/hair salons from home ACCEPT ANY OTHER SUITABLE EXAMPLE (ANY 2x2) (4) Please turn over

Business Economics/SG 8 DBE/2014 3.3 3.3.1 3.3.2 Copyright reserved Downloaded from hlayiso.com SCE - Memorandum FOUR UNETHICAL PRACTICES e be misleading/make misleading claims VV e encourage false needs/emotionally influence a consumer e try to influence/pollute people culturally e provide false information e criticise competitors e be in poor taste e abuse children who do not understand the content of the advertisement ACCEPT ANY OTHER SUITABLE PRACTICE (ANY 4 x 2) DO WE NEED THE ASA? Yes WV TWO REASONS FOR HAVING THE ASA e To ensure that unethical practices are avoided VV e To protect the consumer from being mislead e To ensure that advertisements satisfy all the conditions ACCEPT ANY OTHER SUITABLE REASON (8) (2) (ANY1x2) = (2) OR Nee vv (2) TWO REASONS FOR NOT HAVING THE ASA e Hamper the creativity of individuals VV e General public complains too quick ACCEPT ANY OTHER SUITABLE REASON (ANY1x2) = (2) YES OR NO WITH NO MOTIVATION = 0 MARKS [40] 3.1 20 3.2 8 3.3 12 TOTAL | 40 Please turn over

Downloaded from hlayiso.com Business Economics/SG 9 DBE/2014 SCE - Memorandum QUESTION 4: FINANCIAL FUNCTION 4.1 4.1.1 Copyright reserved THREE FACTORS TO DETERMINE NEED FOR FIXED CAPITAL ¢ Policy of the business VV - more fixed capital is needed to buy assets than to lease them e Nature of the business — a manufacturing concern will have to invest more capital in fixed assets than a general trader ¢ — Size of the business — the larger the business, the greater the need for fixed capital * Stage of development of the business — an established business will need less fixed capital than a developing usiness ACCEPT ANY OTHER SUITABLE FACTOR HEADING = VV EXPLAIN = ¥ (ANY 3 x 3) THREE ADVANTAGES OF STOCKPILING e Discounts may be obtained for buying in bulk vv * Ensures better service to the customer as the required article is available when needed e The manufacturing concern experiences fewer delays in production as the required stock is available e Less working capital is needed to finance stock if purchases are made in good time e No unnecessary duplication of stock takes Place * Changes in price have a less disadvantageous effect on the business e Limited losses according to price fluctuations and obsolescence e Storage facilities are used more economically and less floor space is needed for this purpose ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY 3 x 2) RELATION BETWEEN STOCKPILING AND STOCK TURNOVER ¢ Stock in material/leather can become out of fashion and must have high rate of turnover vvV¥ e A high stock volume will have added expenses like storage and insurance — stock less e Encourage sales to get rid of stock by granting discounts etc ACCEPT ANY OTHER SUITABLE EXPLANATION EXCELLENT EXPLANATION = vv GOOD EXPLANATION = vv (ANY 1 x 3) Please turn over (9) (6) (3)

Downloaded from hlayiso.com Business Economics/SG 10 DBE/2014 SCE — Memorandum 4.14 FOUR DUTIES OF THE CREDIT DEPARTMENT Be conversant with the credit policy of the business Vv Determine credit-worthiness of customer Determine the terms of credit for each client Keep check that customers do not exceed their terms of credit Send out regular statements of accounts to customers Check that records are kept of credit sales and the payment of accounts Follow overdue accounts up according to policy of business Determine when credit may no longer be granted to a customer e Keep up to date with changes in the business world which may have an effect on credit policy of business e Counselling of bad debtors ACCEPT ANY OTHER SUITABLE DUTY (ANY 4x2) (8) 4.2 4.2.1 PRINCIPLE OF INSURANCE Indemnification VV (2) 4.2.2 FOUR FACTORS INFLUENCING FIRE PREMIUM Nature of the business VV Nature of the building Nature of buildings in the surrounding area Types of businesses in the immediate area Availability of fire fighting facilities ACCEPT ANY OTHER SUITABLE FACTOR (ANY 4x2) (8) 4.2.3 EXPLAIN THE TERM AVERAGE CLAUSE e Stipulates that if the property is insured for less than its real value (under insurance) ¥V e all damages suffered will not be compensated in full (proportionally) VW ACCEPT ANY OTHER SUITABLE EXPLANATION (4) [40] 41 26 4.2 14 TOTAL | 40 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 11 DBE/2014 SCE —- Memorandum QUESTION 5: PRODUCTION FUNCTION AND THE BUSINESS ENVIRONMENT 5.1 FIVE CHARACTERISTICS OF BATCH (INTERRUPTED) PRODUCTION Production in small quantities VV Goods are manufactured in batches Process-orientated layout/same equipment used for different products Use multi-purpose equipment Suitable for product with limited but stable demand Unbalanced load of equipment Trained labour force High stock levels of raw materials High stock levels of semi-completed products Low stock level of finished goods ACCEPT ANY OTHER SUITABLE CHARACTERISTIC (ANY5x2) = (10) 5.2 THREE REASONS / ADVANTAGES FOR QUALITY CONTROL Customers are assured that a predetermined standard is maintained VV The worker is encouraged to manufacture products of a quality standard Quality can be used as basis for performance bonuses Costs may be reduced by early identification of below standard products — reduces rejects e It leads to improved product quality ACCEPT ANY OTHER SUITABLE REASON/ADVANTAGE (ANY3x2) (6) 5.3 FOUR FIRE PREVENTION MEASURES Every room must have two exits VV Fire escapes must be provided Fire-fighting equipment must be available Inflammable material must be stored separate/in safe place Firewall provisions must be made Fire drills must be practised with workers (ANY 4x2) (8) 5.4 FOUR SERVICES OF THE SABS Promotes standardisation in industry VV Prepares specifications and codes of practice Provides facilities for the testing of products Controls the use of standardisation and distinctive marks Undertakes education work in connection with standardisation Promotes national awareness of quality Determines standard of imported goods ACCEPT ANY OTHER SUITABLE SERVICE (ANY 4x2) = (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 12 DBE/2014 SCE — Memorandum 5.5 FOUR SERVICES OF THE JSE Protects investors by applying strict requirements VV Encourages small investors to participate in the economic development of South Africa Serves as an important link between investors and entrepreneurs Offers facilities for financial institutions to invest their funds in shares Provides the opportunity for company shares to be assessed by a large number of professionals Publishes share prices daily Is a sensitive barometer of economic conditions and price tendencies Makes an important contribution to the economic stability and growth of South Africa e Offers the opportunity to convert an investment into cash relatively easily ACCEPT ANY OTHER SUITABLE SERVICE (ANY 4x2) (8) [40] 5.1 10 5.2 6 5.3 8 5.4 8 5.5 8 TOTAL | 40 QUESTION 6: GENERAL MANAGEMENT 6.1 6.1.1 EXPLAIN SPAN OF CONTROL Number of persons under control of the manager ¥V (2) 6.1.2 NUMBER OF SPAN OF CONTROL Six (6) VW (2) 6.1.3 INVOLVEMENT OF SHAREHOLDERS Make themselves available as directors VV Vote for directors to manage business Vote for suggested changes at AGM Approving financial statements ACCEPT ANY OTHER SUITABLE WAY (ANY1x2) = (2) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 13 DBE/2014 SCE- Memorandum 6.1.4 THREE ADVANTAGES OF FUNCTIONAL STRUCTURE Expert advice is available for each functional area VV Functional managers gain experience in other functional areas Line functional managers have more time to manage their own function Uniform procedures are applied in all the areas Limited authority and responsibility are exercised ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY3x2) (6) 6.1.5 FUNCTIONAL AUTHORITY OF HUMAN RESOURCE TEAM They deal with staff related matters of other departments VV OR Example — they place advertisements and appoint a person in the Finance Department (2) 6.2 FIVE PRINCIPLES OF EFFECTIVE PLANNING Must be realistic and feasible en uitvoerbaar wees VV Must be done scientifically Must be be adjustable Plans must be clear and simple Must be put in writing Type of planning must be clearly defined Must be time-related Must be communicated effectibely ACCEPT ANY OTHER SUITABLE PRINCIPLE (ANY5x2) = (10) 6.3 DELEGATION YES WV (2) e The manager cannot do all the work on his own VV All the staff members are part of the business and have to develop responsibility ACCEPT ANY OTHER SUITABLE RESPONSE (ANY 2x2) (4) OR Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 14 DBE/2014 SCE -— Memorandum NO WW e The work is of a specialised nature/cannot be delegated VV e It is not in the nature of the manager to delegate work ACCEPT ANY OTHER SUITABLE RESPONSE (2) (4) (6) (4) [40] (ANY 2 x 2) YES OR NO WITH NO MOTIVATION = 0 PUNTE 6.4 THREE WAYS TO IMPROVE COMMUNICATION e Written instructions VV e Updated notice boards e Newsletters e ~=Manuals e Policy documents e Minutes of meetings e Electronic devices ACCEPT ANY OTHER SUITABLE WAY (ANY 3 x 2) 6.5 TWO STEPS IN THE CONTROL PROCESS e Determining standards VV e Measuring standards e Comparison ¢ Taking corrective steps ACCEPT ANY OTHER SUITABLE STEP (ANY 2 x 2) 6.1 14 6.2 10 6.3 6 6.4 6 6.5 4 TOTAL | 40 Copyright reserved Please turn over

Business Economics/SG 15 DBE/2014 QUESTION 7: 7.1 7.1.1 7.1.2 7.1.3 Copyright reserved Downloaded from hlayiso.com SCE — Memorandum PRODUCTION AND ADMINISTRATIVE FUNCTIONS AND THE BUSINESS ENVIRONMENT PRODUCTION SYSTEM Mass production/continuous/uninterrupted VV REASON e Limited variety products VV e Produce large quantities e Different work stations ACCEPT ANY OTHER SUITABLE REASON THREE DISADVANTAGES OF MASS PRODUCTION The equipment is expensive The system is very vulnerable The ovens and baking lines are inflexible The routine activities of workers lead to dissatisfaction ACCEPT ANY OTHER SUITABLE DISADVANTAGE IF ANSWER IN 7.1.4 IS INCORRECT -— ACCEPT DISADVANTAGES OF SYSTEM GIVEN (ANY 3 x 2) THREE TYPES OF MAINTENANCE TYPES (3 x 2) BESPREEK (ENIGE 1 x 2) Remedial/corrective VV the machine is fixed after it has broken VV OR Preventative VV been done on a regular basis according to a schedule OR Pn equipment are inspected and Conditional WW tested according to a predetermined plan (3 x 2) + (ANY 1 x 2) Please turn over (4) (6) (8)

Downloaded from hlayiso.com Business Economics/SG 16 DBE/2014 SCE -— Memorandum 7.14 ADMINISTRATION ACTIVITIES AND MOTIVATION Centralised VV ot the administrative work is done at their head office in Pretoria 715 FOUR FACTORS TO CENTRALISE OR DECENTRALISE Experience of staff VV Training of staff Level of standardisation Competency of managers Geographical distribution Nature of business Size of business (ANY 4 x 2) 7.2 FIVE SERVICES OF CHAMBER OF COMMERCE To settle disputes amongst members by means of arbitration VV To eliminate unnecessary competition To study new municipal laws and regulations on behalf of members To agitate for municipal laws and regulations To introduce uniform shop hours, wages and prices To keep a blacklist of defaulters To present courses to members and their workers To collect information and give advice to members To render a specific service on behalf of a member To promote trade in city/town ACCEPT ANY OTHER SUITABLE SERVICE (ANY 5 x 2) 7.1 30 7.2 10 TOTAL 40 Copyright reserved Please turn over (4) (8) (10) [40]

Downloaded from hlayiso.com Business Economics/SG 17 DBE/2014 SCE — Memorandum QUESTION 8: FORMS OF OWNERSHIP, MARKETING AND FINANCIAL FUNCTIONS 8.1 8.1.1 8.1.2 8.2 8.2.1 Copyright reserved FOUR DETAILS IN PARTNERSHIP AGREEMENT The aim and nature of the partnership VV Kind of partnership Name of the partnership The contribution of each partner How profits and losses are to be divided The duration of the financial period Procedure to be followed when the partnership is terminated Insurance to be taken out on assets of the partnership 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 Arrangements for leave ACCEPT ANY OTHER SUITABLE ITEM (ANY 4x2) = (8) THREE 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 (ANY3x2) = (6) FOUR REQUIREMENTS OF TRADE MARKS Must reflect the salient advantages/features/value of the products Vv Must be in simple language to be easily understood Must be easily pronounced and remembered by consumers Must be different from other trade marks Must be easily registered to enjoy legal protection Must be unique Must not be misleading Must promote marketing mix of the business Please turn over

Downloaded from hlayiso.com Business Economics/SG 18 DBE/2014 8.3 8.4 8.5 Copyright reserved SCE -— Memorandum Must be adaptable to packaging and labelling requirements Must be accepted and not irritate customers Must be used unchanged for an extended product range Must create loyalty amongst customers Must hasten purchases ACCEPT ANY OTHER SUITABLE REQUIREMENT (ANY 4 x 2) 8.2.2 PARTS OF A TRADE MARK e Trade name Vv e Symbol e Slogan (ANY 2 x 2) TWO WAYS TO RECTIFY OVERCAPITALISATION e Expand the business VV e Reduce the capital e Invest excess capital elsewhere ACCEPT ANY OTHER SUITABLE STEP (ANY 2 x 2) TWO REASONS FOR KEEPING CASH e Transaction motive VV - cash must be available for the daily transactions of the business VV e Speculative motive — cash must be available to make a profit from any activity other than the normal activities of the business (2x 4) ONE STEP TO SAFEGUARD THE TRANSFER OF CASH e Make use of cash-in-transit vehicles VV e Use a different route every day e Bank at different times on a day e Make use of a different person to transfer cash ACCEPT ANY OTHER SUITABLE STEP (1x 2) 8.1 14 8.2 12 8.3 4 8.4 8 8.5 2 TOTAL | 40 Please turn over (8) (4) (4) (8) (2) [40]

Downloaded from hlayiso.com Business Economics/SG 19 DBE/2014 SCE - Memorandum QUESTION 9: MISCELLANEOUS THIS QUESTION CONSISTS OF SIX QUESTIONS (9.1-9.6). CANDIDATES NEED TO ANSWER ANY FOUR ONLY. MARK FIRST FOUR ANSWERS ONLY. 9.1 FIVE CHARACTERISTICS OF A CLOSE CORPORATION Minimum member is one (1) V¥ Maximum members are ten (10) Business is a legal entity It has unlimited continuity Members have limited liability for debt Business pays income tax on profits of the business The business is managed by the members The interest of the members are expressed as a percentage (%) The name of the business must end in CC Only natural people may form a close corporation A founding statement must be drawn up ACCEPT ANY OTHER SUITABLE CHARACTERISTIC (ANY5x2) (10) 9.2 FIVE FACTORS WHICH WILL INFLUENCE PRICE Satisfaction of needs VV Nature of demand Competition Availability of substitutes Form of market Normal trade practices/discounts/rebates Fixed prices Production costs Distribution costs Reaction of dealers Credit policy of business Marketing strategy ACCEPT ANY OTHER SUITABLE FACTOR (ANY 5x2) (10) 9.3 FIVE DISADVANTAGES OF CREDIT TRADING TO THE DEALER Need more working capital to finance debtors VV Administrative costs increase The risk of bad debts More staff will have to be employed Customers may tend to overspend Prices will be higher which will result in lower sales ACCEPT ANY OTHER SUITABLE DISADVANTAGE (ANY 5 x 2) (10) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 20 DBE/20 SCE -— Memorandum 9.4 FIVE STEPS IN THE PLANNING PROCESS 14 e Establish aims/define problem VV e Gather information e Analyse information/different plans e Choose the best alternative e Develop action plans e Implementation e = Follow up ACCEPT ANY ORDER OF THE PROCESS (ANY 5 x 2) 9.5 FIVE ADVANTAGES OF CENTRALISATION e Specialisation in one field is possible VV e Division of labour is possible e Standardisation of work is possible e Large volumes of work can be completed in shorter time e Duplication of work is eliminated e Decisions are more authoritative e Uniform procedures of work ACCEPT ANY OTHER SUITABLE ADVANTAGE (ANY 5 x 2) 9.6 FIVE FUNCTIONS OF THE SARB e Issuing of coins/notes e Bankers for the state e Custodian of cash reserves from banks e Clearing and settlement of claims between institutions e Custodian of gold reserves e Provider and lender of last resort ACCEPT ANY OTHER SUITABLE FUNCTION (ANY 5 x 2) 9.1 10 9.2 10 9.3 10 9.4 10 9.5 10 9.6 10 TOTAL | 40 TOTAL SECTION B: GRAND TOTAL: Copyright reserved (10) (10) (10) [40] 200 300