# Business Studies Grade 12 NSC June 2014 Memo (English)

> Grade 12 Business Studies memorandum from the NSC June 2014 (English), 20 pages. Read online or get the free PDF download, question paper linked when available.

- Page: https://www.hlayiso.com/library/business-economics-sg-english-june-2014-memo/65132c4f-fae5-49fe-a019-a0aa6a086f8a
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Language: English
- Document type: Memorandum
- Year: 2014
- Exam period: NSC June
- Curriculum: CAPS
- Pages: 20

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## About this document

Business Studies · Grade 12 · NSC June · 2014 · English. Memorandum, 20 pages. Read online or download the PDF.

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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.

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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)

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Business Economics/SG 3 DBE/2014
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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

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TOTAL SECTION A:

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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.

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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)

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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

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HEADING = VV
EXPLAIN = V

(ANY 3 x3)

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3.1.3

3.2 3.2.1

3.2.2

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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)

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Business Economics/SG 8 DBE/2014

3.3 3.3.1

3.3.2

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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

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Business Economics/SG 9 DBE/2014

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QUESTION 4: FINANCIAL FUNCTION

4.1 4.1.1

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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)

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Business Economics/SG 10 DBE/2014
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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

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Business Economics/SG 11 DBE/2014
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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)

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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)

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Business Economics/SG 13 DBE/2014
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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

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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

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Business Economics/SG 15 DBE/2014

QUESTION 7:
7.1 7.1.1
7.1.2
7.1.3

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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)

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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

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QUESTION 8: FORMS OF OWNERSHIP, MARKETING AND FINANCIAL
FUNCTIONS

8.1 8.1.1
8.1.2
8.2 8.2.1

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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

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Business Economics/SG 18 DBE/2014

8.3

8.4

8.5

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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

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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)

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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

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