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

Downloaded from hlayiso.com SENIOR CERTIFICATE EXAMINATION BUSINESS ECONOMICS STANDARD GRADE 2014 MARKS: 300 TIME: 3 hours This question paper consists of 16 pages and a 2-page answer sheet. 3 Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 2 DBE/2014 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. A separate ANSWER SHEET consisting of two pages is provided for QUESTION 1. SECTION B: This section consists of EIGHT questions. Answer any FIVE 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 question. 4. Start the answer 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 SIX questions have been answered, only the first SIX applicable answers will be marked, namely:  QUESTION 1  First FIVE questions from SECTION B Clearly indicate questions that are NOT to be marked by writing CANCELLED across the page. 7. Questions must be answered in black or blue ink. 8. Pay attention to neatness, handwriting and language. 9. Non-programmable calculators may be used. 10. Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of the ANSWER BOOK. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 3 DBE/2014 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 1.1 MULTIPLE-CHOICE QUESTIONS Four options are given as possible answers to the following questions. Choose the correct answer by making a cross (X) next to the letter (A–D) in the appropriate block on your ANSWER SHEET. There is only ONE correct answer to each question. Example: 1.1.17 A B C D 1.1.1 One of the advantages of a sole trader is that ... A the owner can make quick decisions. B its shares are freely transferable. C it has limited liability. D its lifespan is unlimited. 1.1.2 Legal entity does NOT apply to a ... A private company. B close corporation. C partnership. D public company. 1.1.3 In this type of enterprise profits are shared according to the volume of transactions with each member: A Partnership B Close corporation C Private company D Co-operative society 1.1.4 Identify the forms of ownership with unlimited liability for their owners: A Close corporation and public company B Sole trader and partnership C Private company and partnership D Sole trader and close corporation Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 4 DBE/2014 SCE 1.1.5 A free sample of a product to test before deciding to purchase, is an example of ... A advertising. B sales promotion. C personal sales. D publicity. 1.1.6 What medium would you use to advertise a carnival at your school to the community? A Television B Billboard along the freeway C Internet D Pamphlets 1.1.7 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 (ii), (iii) and (iv) B (i), (ii), (iii) and (iv) C (ii), (iii), (iv) and (v) D All the above-mentioned 1.1.8 Which ONE of the following is NOT part of the marketing mix? A Financial policy B Product policy C Price policy D Marketing communication policy 1.1.9 Working capital is needed for the purchase of ... A delivery vehicles. B equipment. C buildings. D trading inventory. 1.1.10 A/An ... is an account of expected income and planned expenditure which serves as a financial plan for a future period. A budget B income statement C production cost statement D balance sheet Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 5 DBE/2014 SCE 1.1.11 Tania Feni insured her house for R800 000. The actual value of the house is R700 000. What will the compensation be for the loss of R355 000 caused by fire? A R800 000 B R700 000 C R355 000 D R100 000 1.1.12 The holder of ... debentures receives only interest and the loan is never paid back. A redeemable B irredeemable C secured D unsecured 1.1.13 Leading takes place when managers ... A formulate aims to be reached. B see to it that goals are reached according to set standards. C put resources in place to be used in manufacturing. D influence and guide human behaviour. 1.1.14 Which level of management requires managers to have specific technical knowledge? A Lower B Middle C Top D Superior 1.1.15 Two local garage owners came to an agreement to stay open for 24 hours on alternate weekends. This was achieved as a result of the possible intervention by the ... A South African Reserve Bank B South African Police Services C Chambers of Commerce D Land Bank 1.1.16 Farmers can get mortgage bonds from the ... to purchase land, livestock and equipment. A Business Partners B Land Bank C South African Reserve Bank D Corporation for Public Deposits (16 x 3) (48) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 6 DBE/2014 SCE 1.2 MATCHING ITEMS Choose a term from COLUMN B that matches a statement in COLUMN A. Write only the letter (A–J) next to the question number (1.2.1–1.2.5) on the attached ANSWER SHEET, for example 1.2.6 K. COLUMN A COLUMN B 1.2.1 The type of consumer goods A select goods represented by clothes, shoes and jackets B individual mark 1.2.2 The type of trade mark used C width by Woolworths D transit advertising 1.2.3 The number of different product items in each product E flexible channel line of a business F family mark 1.2.4 Products advertised on a business's own delivery G depth vehicles H convenience goods 1.2.5 The distribution channel where there are no intermediaries I classified advertising J direct channel (5 x 2) (10) 1.3 TRUE OR FALSE 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 attached ANSWER SHEET. Example: 1.3.12 A sole trader has one owner. NUMBER TRUE FALSE 1.3.12 X 1.3.1 The sole trader pays income tax on income generated from the business. 1.3.2 A franchisee sells the right to conduct a business for own interest to the franchiser. 1.3.3 Marketing communication is the route followed by the product from the manufacturer to the consumer with the help of intermediaries. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 7 DBE/2014 SCE 1.3.4 The reinstatement clause allows the insurer to rebuild or replace property, instead of paying out the insured. 1.3.5 Primary production cost is the sum of direct material costs and indirect material costs. 1.3.6 Advisors are used to assist managers in the line organisation structure. 1.3.7 Middle-level management is involved in the making of tactical decisions about the running of the business. 1.3.8 Co-ordinating is the harmonising of individual efforts so that they work together to achieve the objectives of the enterprise. 1.3.9 Decision-making is the process by which people are influenced to cooperate of their own free will to achieve the objectives of the business. 1.3.10 A characteristic of the line- and staff organisation structure is that specialists perform a once-off duty within a specific period. 1.3.11 The Council for Scientific and Industrial Research (CSIR) assists in the development of the mining industry in South Africa. (11 x 2) (22) 1.4 GIVE ONE WORD/TERM Give ONE term for each of the following descriptions by choosing a term from the list below. Write only the term next to the question number (1.4.1–1.4.5) on the attached ANSWER SHEET, for example 1.4.6 shareholders. vertical; memorandum of association; directors; controlling ; prospectus; invitation; horizontal; holding; promoters; founding statement 1.4.1 The document used in the establishment of a close corporation 1.4.2 People who manage a private company 1.4.3 The document issued by a public company to invite potential investors to buy shares 1.4.4 The type of amalgamation that takes place when two computer manufacturers join forces 1.4.5 A company which holds at least 30% of the shares in another company (5 x 2) (10) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 8 DBE/2014 SCE 1.5 DATA RESPONSE Read the article below and answer the questions that follow. Gardens Ltd is a firm that sells garden furniture. The authorised share capital consist of: (a) 2 000 000 ordinary shares of R4 each (b) 4 000 shares of R6 each which can be issued to shareholders to replace the paying of dividends (c) 3 000 preference shares of R10 each which allows the holder to share in additional profits after all other shareholders have received a dividend. The accounting records of Gardens Ltd show the following on 28 February 2014:  Ordinary share capital – R1 600 000 1.5.1 Calculate the authorised share capital of Gardens Ltd. (Show ALL calculations.) (4) 1.5.2 How many ordinary shares were issued on 28 February 2014? (Show ALL calculations.) (2) 1.5.3 Name the type of shares mentioned in (b). (2) 1.5.4 Name the type of preference shares mentioned in (c). (2) TOTAL SECTION A: 100 NOTE: Place the completed ANSWER SHEET for QUESTION 1 inside the front cover of your ANSWER BOOK. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 9 DBE/2014 SCE SECTION B Answer any FIVE questions from this section. QUESTION 2: FORMS OF OWNERSHIP 2.1 Vuolwethu Mngeni, Charlton Fezi, Susan Bouwer, Emily Smith, Justin Cox and Yebinathi Ndabula are discussing the signing of an agreement in which they state that they are willing to be the directors of a newly formed merger, Creamlicious Ltd. 2.1.1 What form of ownership does Creamlicious Ltd indicate? (2) 2.1.2 State FIVE advantages of this form of ownership. (10) 2.1.3 State FOUR details that must appear in the articles of association of Creamlicious Ltd. (8) 2.1.4 One of the companies involved in the merger was previously Dairy Cream (Pty) Ltd. Tabulate THREE differences between Creamlicious Ltd and Dairy Cream (Pty) Ltd, under the following headings: (a) Contribution of capital (b) Management (c) Meetings (12) 2.2 State FOUR possible advantages that could arise from the merger. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 10 DBE/2014 SCE QUESTION 3: MARKETING FUNCTION 3.1 The Pool Shop CC has a special summer promotion selling one kilogram of chloride and a cleaning brush for the tiles in a single package. 3.1.1 Identify the form of packaging used by The Pool Shop CC. (2) 3.1.2 Discuss THREE other forms of packaging that may be used by The Pool Shop CC. (9) 3.1.3 Discuss THREE requirements of good packaging. (9) 3.2 Tristan Brown was retrenched from Bridal Boutique. She decided to use her skill as a dressmaker to make dresses at home. She now operates in the informal sector. Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 11 DBE/2014 SCE 3.2.1 What benefits does Tristan get from operating in the informal sector of the economy? State TWO benefits. (4) 3.2.2 Give TWO other examples of operations that you will find in this sector. (4) 3.3 Advertising has to conform to a very strict body of social rules. 3.3.1 List FOUR unethical practices that can lead to a business being taken to court. (8) 3.3.2 Do you think we need the Advertising Standards Authority to control the standards of advertising in South Africa? Explain the reason for your answer. (4) [40] QUESTION 4: FINANCIAL FUNCTION 4.1 Matthew Beelders, owner of MB Upholsterers, would like to expand his business and for this he will need capital. This will enable the business to increase the stock available to customers. Matthew is also considering granting credit to customers who buy large quantities at regular intervals. MB UPHOLSTERERS 4.1.1 Discuss THREE factors that will determine the need for fixed capital. (9) 4.1.2 State THREE advantages of stockpiling for MB Upholsterers. (6) 4.1.3 Matthew will have to make sure that the relation between stockpiling and rate of stock turnover is good. Explain why. (3) 4.1.4 State FOUR duties the new credit department will have. (8) Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 12 DBE/2014 SCE 4.2 Matthew has insured his business with No Claim Insurers. 4.2.1 Identify the principle of insurance that applies when insurance covers stock losses due to fire. (2) 4.2.2 State FOUR factors that will influence the premium to be paid for fire insurance. (8) 4.2.3 Briefly explain the term average clause, as used in insurance. (4) [40] QUESTION 5: PRODUCTION FUNCTION AND THE BUSINESS ENVIRONMENT Super Appliances manufactures and sells fridges, washing machines and television sets on the same premises in the industrial area outside Port Elizabeth. 5.1 Super Appliances uses batch (interrupted) production to manufacture the appliances. State FIVE characteristics of such a system. (10) 5.2 Quality control is very important in the manufacturing process. Give THREE reasons/advantages to substantiate the above statement. (6) 5.3 State FOUR fire prevention measures that will apply to Super Appliances. (8) 5.4 It is important for the customer to know that the SABS mark (South African Bureau of Standards) appears on the appliances. Name FOUR services that the SABS renders to manufacturers such as Super Appliances. (8) 5.5 The owners of Super Appliances want their business to be listed on the Johannesburg Securities Exchange Limited (JSE Ltd) by 2015. Name FOUR services which the JSE Ltd will be able to render to Super Appliances. (8) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 13 DBE/2014 SCE QUESTION 6: GENERAL MANAGEMENT 6.1 Study the illustration below and answer the questions that follow. 6.1.1 What is meant by span of management/control? (2) 6.1.2 What is the span of management of the General Management Team in the above illustration? (2) 6.1.3 How are the shareholders involved in managing the business? (2) 6.1.4 The functional organisation structure is very popular among managers and workers. Give THREE reasons to support this statement. (6) 6.1.5 Explain how the human resource manager and his team have functional authority over the other departments. (2) 6.2 Planning is the process where the manager looks into the future and makes plans to carry out certain operations. State FIVE principles of effective planning. (10) 6.3 Modern managers who use participating management skills are delegating many important tasks to subordinates. Do you think delegation is important? Motivate your answer by giving TWO reasons. (6) 6.4 State THREE ways of improving communication between workers and top management. (6) 6.5 Name TWO steps in the control process. (4) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 14 DBE/2014 SCE QUESTION 7: PRODUCTION AND ADMINISTRATIVE FUNCTIONS AND THE BUSINESS ENVIRONMENT 7.1 Ariel Bakery bakes only bread rolls and cupcakes in very large quantities for various hotel groups. They have three manufacturing outlets in Pretoria, Johannesburg and Rustenburg. All the administrative work is done at their head office in Pretoria. 7.1.1 What production system is Ariel Bakery using? Give ONE reason to motivate your answer. (4) 7.1.2 State THREE disadvantages of the system you have chosen in QUESTION 7.1.1 (6) 7.1.3 Name THREE types of maintenance that Ariel Bakery can use in their outlets. Explain any ONE of them. (8) 7.1.4 Are the administrative activities in this business centralised or decentralised? Motivate your response. (4) 7.1.5 Name FOUR factors which could have influenced the decision to centralise or decentralise the administrative activities. (8) 7.2 State FIVE services the Rustenburg Chambers of Commerce can render to Ariel Bakery. (10) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 15 DBE/2014 SCE QUESTION 8: FORMS OF OWNERSHIP, MARKETING AND FINANCIAL FUNCTIONS 8.1 A partnership may be formed by oral agreement. However, it is preferable to draw up a written contract. 8.1.1 State any FOUR details that should be contained in the contract. (8) 8.1.2 Give any THREE reasons why a partnership may be dissolved. (6) 8.2 Trademarks, like those below, guarantee a certain type of service and the consumer has faith in the business and its products. 8.2.1 Name any FOUR requirements of trade marks. (8) 8.2.2 A trade mark may consist of three parts. Give any TWO. (4) 8.3 A business is overcapitalised when there is too much capital available in relation to turnover. State TWO ways in which this situation can be rectified. (4) 8.4 The precautionary motive for keeping cash provides for a business facing unforeseen expenses. Name and explain TWO other reasons for a business keeping cash. (8) 8.5 What can a business do to safeguard the transfer of cash from their premises to the bank? (2) [40] Copyright reserved Please turn over

Downloaded from hlayiso.com Business Economics/SG 16 DBE/2014 SCE QUESTION 9: MISCELLANEOUS Answer any FOUR of the following questions. 9.1 State FIVE characteristics of a close corporation. (10) 9.2 Name FIVE factors which will influence pricing. (10) 9.3 State FIVE disadvantages of credit trading to the dealer. (10) 9.4 Name FIVE steps in the planning process. (10) 9.5 State FIVE advantages of centralisation. (10) 9.6 State FIVE functions of the South African Reserve Bank (SARB). (10) [40] TOTAL SECTION B: 200 GRAND TOTAL: 300 Copyright reserved

Downloaded from hlayiso.com Business Economics/SG DBE/2014 SCE EXAMINATION NUMBER: CENTRE 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) next to the letter in the appropriate block. 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 (16 x 3) (48) 1.2 MATCHING ITEMS Write only the letter (A–G) 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) Copyright reserved

Downloaded from hlayiso.com

Downloaded from hlayiso.com Business Economics/SG DBE/2014 SCE EXAMINATION NUMBER: CENTRE 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 (22) 1.4 CHOOSE THE CORRECT TERM 1.4.1 1.4.2 1.4.3 1.4.4 1.4.5 (10) 1.5 DATA RESPONSE 1.5.1 1.5.2 1.5.3 1.5.4 (10) TOTAL SECTION A: 100 Copyright reserved