# Business Studies Grade 12 Eastern Cape Mock 2016 Memo

> Grade 12 Business Studies memorandum from the Eastern Cape Mock Exam 2016, 52 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-gr12-memo-sep2016-engl/38a5ee64-8065-476e-b19e-abf62f5a1e8a
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Memorandum
- Year: 2016
- Exam period: Eastern Cape Mock Exam
- Curriculum: CAPS
- Pages: 52

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## About this document

Business Studies · Grade 12 · Eastern Cape Mock Exam · 2016. Memorandum, 52 pages. Read online or download the PDF.

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### Page 1

NATIONAL
                SENIOR CERTIFICATE

                      GRADE 12

                 SEPTEMBER 2016

               BUSINESS STUDIES
                 MEMORANDUM

MARKS:   300

               This memorandum consists of 52 pages.

### Page 2

2                                      BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

 NOTES TO MARKERS

 1.        Candidates’ responses for SECTIONS B and C must be in full sentences;
           however this would depend on the nature of the question.

 2.        A comprehensive memorandum has been provided but this is by no means
           exhaustive. Due consideration should be given to an answer that is correct
           but:
                     Uses a different expression from that which appears in the
                     memorandum
                     Comes from another source
                     Original
                     A different approach is used

           NOTE:        SECTION A:
                        - There are no alternative answers.
                        - Each question has only one correct answer.

 3.        Take note of other relevant answers provided by candidates and allocate
           marks accordingly. (In cases where the answer is unclear or indicates
           some understanding, part-marks should be awarded, for example, one
           mark instead of the maximum of two marks.)

 4.        The word ‘sub-max’ is used to facilitate the allocation of marks within a
           question or sub-question.

 5.        The purpose of circling marks (guided by ‘max’ in the breakdown of marks)
           on the right-hand side is to ensure consistency and accuracy in the
           marking of scripts.

 6.        In an indirect question, the theory as well as the response must be relevant
           and related to the question.

 7.        Incorrect numbering of questions or sub-questions will be penalised.
           This is applicable to all the sections of the paper.

 8.        No additional credit must be given for repetition of facts. Indicate with an R.

 9.        Subtotals to questions must be written in the right-hand margin. Circle the
           subtotals as indicated by the allocation of marks. This must be guided by
           ‘max’ in memo. Only the total for each question should appear in the left-
           hand margin next to the appropriate question number.

 10.       SECTION B

 10.1      If, for example, FIVE facts are required, mark the candidate’s FIRST FIVE
           responses and ignore the rest of the responses. Indicate by drawing a line
           across the unmarked portion or use the word ‘Cancel’.

           NOTE: This only applies to questions where the number of facts is
                 specified.

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(EC/SEPTEMBER 2016)                BUSINESS STUDIES                                          3

 10.2      If two facts are written in one sentence, award the candidate FULL credit.
           Point 10.1 above still applies.

 10.3      If candidates are required to provide their own examples/views, brainstorm
           this to come up with alternative answers.

 10.4      USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS

 10.4.1    Where the number of facts are specified questions that require candidates
           to ‘explain/discuss/describe’ will be marked as follows:
               Heading      2 marks
               Explanation 1 mark (or as indicated in the memorandum).
           The ‘heading’ and ‘explanation’ are given separately to facilitate mark
           allocation.

 10.4.2    If the number of facts is not specified, the candidate must be informed by
           the nature of the question and the maximum marks allocated.

 10.5      ONE mark will be awarded for answers that are easy to recall,
           requires one-word answers, or is quoted directly from scenario/case
           study. This applies to SECTIONS B and C in particular.

 11.       SECTION C

 11.1      The breakdown of the mark allocation for the essays is as follows:

           Introduction
           Content                                    Maximum: 32
           Conclusion
           Insight                                           8
           TOTAL                                            40

 11.2      Insight consists of the following components:

           Layout/Structure:       (Is there an introduction, body, proper paragraphs
                                   and a conclusion?)                                        2
           Analysis and            (Learners’ ability to break down the
           interpretation:         question/interpret it correctly to show
                                   understanding of what is being asked.)                    2
           Synthesis:              (What parts of the question would you have
                                   included in the answer? Are there decisions made
                                   from a combination of relevant points?) Marks to
                                   be allocated using this guide:
                                   Mostly irrelevant facts/No relevant facts:      0
                                   Some irrelevant facts/Some relevant facts:      1
                                   No irrelevant facts/Only relevant facts:        2         2
           Originality:            (Examples, recency of information, current trends
                                   and developments.)                                        2
                                                                  TOTAL FOR INSIGHT:         8
                                                          TOTAL MARKS FOR FACTS:            32
                                                 TOTAL MARKS FOR ESSAY (8 + 32)             40

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4                                   BUSINESS STUDIES                          (EC/SEPTEMBER 2016)

           NOTE:
           1.   No marks will be awarded for contents repeated from the
                introduction and conclusion.
           2.   The candidate forfeits marks for layout if the words
                INTRODUCTION and CONCLUSION are not stated.
           3.   No marks will be allocated for layout, if the headings
                ‘Introduction, Conclusion,’ etc. in ‘Insight’ is not supported by
                an explanation.

 11.3      Indicate insight in the left-hand margin with a symbol e.g.
           (‘L, A, S and/or O’).

 11.4      The components of insight are indicated at the end of the suggested
           answer for each question.

 11.5      Mark all the relevant facts until the MAXIMUM mark in a subsection has
           been attained. Write MAX after maximum marks have been obtained.

 11.6      At the end of each essay indicate the allocation of marks for facts and
           marks for insight as follow: (L – Layout, A – Analysis, S – Synthesis,
           O – Originality) as in the table below.

                        CONTENT                                    MARKS
                          Facts                                   32 (max.)
                            L                                         2
                            A                                         2
                            S                                         2
                           O                                          2
                         TOTAL                                        40

 11.7      When awarding marks for facts, take note of the sub-maxima indicated,
           especially if candidates do not make use of the same subheadings.
           Remember headings and sub-headings are encouraged and contribute to
           insight (structuring/logical flow/sequencing) and indicate clarity of thought.
           (See MARKS BREAKDOWN at the end of each question.)

 11.8      If the candidate identifies/interprets the question INCORRECTLY, then
           he/she may still obtain marks for layout.

 11.9      If a different approach is used by candidates, ensure that the answers are
           assessed according to the mark allocation/subheadings as indicated in the
           memorandum.

 11.10     Award TWO marks for complete sentences. Award ONE mark for phrases,
           incomplete sentences and vague answers.

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(EC/SEPTEMBER 2016)                    BUSINESS STUDIES                               5

 SECTION A: COMPULSORY

 QUESTION 1

 1.1    1.1.1         B √√   Autocratic
        1.1.2         C √√   Basic Conditions of Employment
        1.1.3         A √√   Preference
        1.1.4         D √√   Recruitment
        1.1.5         B √√   Belbin role
        1.1.6         D √√   Employment Contract
        1.1.7         C √√   Public relations
        1.1.8         B √√   R7 024,64
        1.1.9         C √√   Partnership
        1.1.10        A √√   Diversification
                                                                        (10 x 2)   (20)

 1.2    1.2.1         Conglomerate √√
        1.2.2         Responsibility √√
        1.2.3         Control √√
        1.2.4         Staff development √√
        1.2.5         Personal liability company √√
                                                                         (5 x 2)   (10)

 1.3    1.3.1         C √√
        1.3.2         D √√
        1.3.3         G √√
        1.3.4         A √√
        1.3.5         I √√
                                                                         (5 x 2)   (10)

                                                              TOTAL SECTION A:      40

                                                          BREAKDOWN OF MARKS
                                                              1.1       20
                                                              1.2       10
                                                              1.3       10
                                                             TOTAL      40

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6                                     BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

SECTION B
QUESTION 2: BUSINESS ENVIRONMENT
2.1   2.1.1   Basic Conditions of Employment Act √√                                           (2)
      2.1.2   Ways of non-compliance
              - Making workers work for long hours without rest periods. √
              - Forcing workers to work overtime. √
              - No extra pay for overtime. √
              - Denied all applications of leave. √
                NOTE: Mark the first THREE (3) only.                                          (3)
      2.1.3   Conditions of Employment
              (a) Working time
                  - Workers who work five or less days per week, √ may not work
                    more than nine hours per day, or 45 hours per week. √
                  - Workers who work more than five days per week, √ may not work
                    more than eight hours per day, √ or 45 hours per week.
                  - Workers must have a meal break of 60 minutes √ after five hours
                    of work.√
                  - Any other relevant answer related to working time in the Basic
                    Conditions of Employment Act.
                                                                                   Max. (4)

              (b) Leave conditions
                    Annual leave:
                       Workers are entitled to 21 consecutive days’ √ annual leave per
                       year √/One day for every 17 days worked √/One hour for every
                       17 hours worked. √
                      Sick leave:
                          Workers are entitled to six weeks paid sick leave √ in period of
                          36 months √/1 day’s paid sick leave √ for every 26 days worked
                          during the first six months of employment. √
                          A medical certificate may be required √ before paying an
                          employee who is absent for more than two consecutive days or
                          who is frequently absent. √
                      Maternity leave
                         A pregnant employee√ is entitled to four consecutive months’
                         leave. √
                         A pregnant employee may not be allowed √ to perform work that
                         is hazardous to her or her child.√
                      NOTE: Adoption leave may also be accepted.
                      Family responsibility leave
                         Three to five (3 to 5) days paid leave per year √ on request,
                         when:
                              - The employee’s child is born/sick.√
                              - In the event of the death of the employee’s spouse/life
                                 partner/parent/adoptive parent/grandparent/
                                 child/adoptive child/grandchild/sibling. √

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(EC/SEPTEMBER 2016)                  BUSINESS STUDIES                                       7

                          An employer may require reasonable proof, √ before granting
                          this leave. √
                          Male employees are entitled to up to three/five day’s paternity
                          leave √ when the child is born.√
                  -    Any other relevant answer related to leave in the Basic Conditions
                       of Employment Act.
                                                                                      Max.       (4)

               (c)     Overtime
                  -    Only by agreement/Employees cannot be forced √ to work
                       overtime. √
                  -    No more than √ 3 hours per day. √
                  -    No more than √ ten hours a week. √
                  -    Overtime worked on week days and Saturdays √ employees get
                       paid 1,5 times normal wage.√
                  -    Overtime worked on Sundays and public holidays employees √ get
                       paid double the normal wage.√
                  -    Any other relevant answer related to the working time in the Basic
                       Conditions of Employment Act.
                                                                                      Max.       (4)

2.2   2.2.1    Consumer rights
               - Right to choose √√
               - Right to privacy and confidentiality √√
               - Right to fair and honest dealings √√
               - Right to information about products and agreements/Right to
                 disclosure and information √√
               - Right to fair/responsible marketing/promotion √√
               - Right to fair value/good quality and safety √√
               - Right to accountability from suppliers √√
               - Right to fair, just and reasonable terms and conditions √√
               - Right to equality in the consumer market place √√
                 NOTE: Mark the first FOUR only.
                                                                                   (4 x 2)       (8)

      2.2.2    Impact of Consumer Protection Act (CPA) on consumers
               Positives
                  - There is now only one law protecting consumers √ and this makes
                      it easier to enforce and apply the law. √
                  - Protects the consumers from unfair, exploitative √ and aggressive
                      business and marketing activities. √
                  - Promotes consumer rights and ensures that businesses do not √
                      violate these rights. √
                  - Allows all consumers fair access to √ for goods and services. √
                  - Educate consumers about how to participate√ responsibly in the
                      goods and services market.√
                  - Ensures that consumers do not buy goods of poor quality √ which
                      do not meet quality standards. √
                  - Provide consumers with information √ and thereby promote
                      consumer education. √

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8                                   BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

                  -   Consumers are forced to make responsible √ and informed
                      decisions. √
                  -   Consumers have a cooling-off period of five working days √ after
                      purchasing a product.√
                  -   Protect consumers from hazardous products √ or poor
                      workmanship in terms of service rendered. √
                  -   Encourage consumers to complain, √ if there is something wrong
                      with the product. √
                  -   Any other relevant answer related to the positives of the CPA for
                      consumers.

                                           AND/OR
              Negatives
                - Consumers may not be aware √ of the CPA/their consumer rights.√
                - Consumers may be unaware √ of mechanisms in place to lodge
                    disputes. √
                - Serious implementations problems √ with regard to handling
                    consumer complaints. √
                - Any other relevant answer related to the negatives of the CPA for
                    consumers.
                                                                                Max.             (8)

2.3   2.3.1   Secondary sector √

              Motivation – Fashion Factory manufactures African dresses.√√
                                                                                      Max.       (3)

      2.3.2   CHALLENGE                                              ENVIRONMENT
              Frank the human resources manager does not             Micro √√
              have much knowledge of the new labour
              legislation. √
              Supplier of material is unreliable and often out of    Market √√
              stock. √
              Strong competition abroad. √/Difficult to break into   Market √√
              international market; strong competition abroad. √     Macro √√
              Increase in fuel price. √                              Macro √√
              Socio-economic problems: HIV/Aids,                     Macro √√
              unemployment, crime and poverty. √
                                                      Sub-max. (4)          Sub-max. (8)

              NOTE: Mark the first FOUR only.                                         Max.    (12)

2.4   Activities of strategy evaluation
      - Examine the underlying bases of business strategy.√√
      - Compare expected performance (measure business’ performance). √√
      - Take corrective action when necessary. √√
      - Any other relevant answer related to activities of strategy evaluation.
         NOTE: Mark the first TWO (2) only.
                                                                                    (2 x 2)      (4)

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(EC/SEPTEMBER 2016)               BUSINESS STUDIES                                      9

2.5   Ways to comply with the Skills Development Act (SDA)
      - Businesses should register with SARS. √√
      - Skills development levy must be paid. √√
      - Register employees with SARS to be able to claim back after training.√√
      - Businesses with more than 50 employees must appoint a skills development
        facilitator. √√
      - Assess the skills of employees to determine areas in which skills development
        are needed. √√
      - Encourage employees to participate in learnerships and other training
        programmes. √√
      - Provide all employees with the opportunity to improve their skills. √√
      - Businesses should register with the relevant SETAs. √√
      - Any other relevant answer related to the ways in which businesses may comply
        with the SDA.
                                                                                  Max.    (8)
                                                                                         [60]

                                                       BREAKDOWN OF MARKS
                                                           2.1.1        2
                                                           2.1.2        3
                                                           2.1.3       12
                                                           2.2.1        8
                                                           2.2.2        8
                                                           2.3.1        3
                                                           2.3.2       12
                                                            2.4         4
                                                            2.5         8
                                                          TOTAL        60

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10                                   BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

QUESTION 3: BUSINESS VENTURES

3.1    3.1.1   Types of investment
               - RSA Retail Savings Bonds √
               - Unit trusts √                                                                      (2)

       3.1.2   Differences between RSA Retail Savings Bonds and Unit trusts
                    RSA Retail Savings Bonds                      Unit Trusts
               - Two different types of bonds are      - It consists of a number of
                  available, √ i.e. fixed rate savings   different shares/ securities/other
                  bonds and inflation-linked retail      types of investments √ put
                  savings bond. √                        together by a fund manager. √

               - It is easily obtainable √ on the RSA -    Funds are pooled by
                 Retail Savings Bond                       fund/portfolio managers√ to buy
                 website/directly from the National        shares on the JSE in a variety
                 Treasury/from any branch of the           of sectors. √
                 post office/Pick 'n Pay. √

               - Minimum of R1 000 √ can be            -   Minimum amounts √ is not
                 invested. √                               always specified. √

               - Early withdrawals may be made         -   It can easily be converted into
                 after 12 months, √ subject to a           cash √ without penalties. √
                 penalty. √

               - Interest is earned half yearly √ on   -   Interest and/or dividends are re-
                 31 March and 30 September. √              invested √ for the period of the
                                                           investment. √

               - Interest earned is paid out √ into    -   Dividends and/or interest
                 the bond holder's bank account √/         earned are re-invested √ to
                 Investors can choose to re-invest         ensure higher growth. √
                 interest √ in a new investment. √

               - Any other relevant answer related     -   Any other relevant answer
                 to RSA Retail Savings Bonds.              related to unit trusts.
                                        Sub-max. (4)                           Sub-max. (4)
                                                                                     Max.           (8)
               NOTE:    1.   The differentiation must be clear.
                        2.   Answer does not have to be in tabular format.
                        3.   Award a maximum of 2 marks if the distinction is not clear.
                        4.   Accept paragraph style answer.

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(EC/SEPTEMBER 2016)                       BUSINESS STUDIES                                   11

          3.1.3       Factors to consider when choosing a type of investment
                      -   Return of investment √
                      -   Risk √
                      -   Investment term/period √
                      -   Tax implications √
                      -   The influence of the inflation rate on investment √
                                                                                    Max.     (2)

 3.2      3.2.1       Non-compulsory √
                      Motivation:
                      -   Non-compulsory insurance is not required by law but it can
                          provide additional protection for businesses. √√
                      -   Non-compulsory insurance is insurance that businesses and
                          individuals can choose to take out voluntarily/optional
                          cover. √√
                      -   Non-compulsory insurance is not a legal requirement and is
                          not set up by the government as a minimum requirement. √√
                      -   Non-compulsory insurance is chosen by the insured and not
                          enforced by law. √√
                      -   Any other relevant answer related to non-compulsory
                          insurance.
                                                                                   Type:     (1)
                                                                              Motivation:    (2)
                                                                                    Max:     (3)

          3.2.2       Underinsurance
                     - Underinsurance is when property or assets are not insured for
                        their full market value.√√
                     - Underinsurance is when property or assets are insured for
                        less than the current/actual value.√√
                     - Any other relevant answer related to underinsurance.
                                                                                Max.         (2)

          3.2.3       Amount insured
                                     x      damages (formula)
                       Market value

                                      √
                      =                    x      300 000 √√

                      =    R195 000 √

                      NOTE:     1. Award full marks (5) if the answer is correct and
                                   no workings are shown.
                                2. If workings (process/procedure) demonstrate
                                   understanding of the concept, but the final
                                   answer is wrong, award the maximum of THREE
                                   (3) marks.
                                3. If there are no workings shown and the answer
                                   is incorrect, award a ZERO mark.
                                                                                Max.         (5)

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12                                 BUSINESS STUDIES                          (EC/SEPTEMBER 2016)

3.3    Private company
                    Factor                Success                       Failure
       3.3.1     Capital          - Capital can be             - Shares cannot be
                                    increased √ by taking        sold√ to the public. √
                                    on more                    - Capital is limited √ to
                                    shareholders.√               private
                                  - There is no limit to the     shareholders. √
                                    number of shares√ a        - Any other relevant
                                    private company can          answer related to the
                                    register with CIPC and       impact of capital.
                                    issue to obtain
                                    capital.√
                                  - Any other relevant
                                    answer related to
                                    impact of capital.
                                              Sub-max. (2)                 Sub-max. (2)
                                                                                   Max.      (4)
       3.3.2         Management   - Business managed by        - Owners can remove
                                    directors √ with             themselves from the
                                    expertise. √                 daily running of the
                                  - Directors are usually        business, √ so often
                                    highly skilled               there is no personal
                                    individuals √ who            involvement. √
                                    know how to run a          - Large management
                                    business. √                  structures √ can
                                  - Directors are                result in decision-
                                    accountable √ to             making taking time. √
                                    shareholders. √            - Shareholders have
                                  - It is easy to make           the power to elect
                                    quick decisions √            directors, √ but not all
                                    regarding new                shareholders
                                    opportunities that           exercise their voting
                                    arises, since only one       rights. √
                                    board member is            - Directors may
                                    needed. √                    sometimes act in
                                  - Any other relevant           their own interest, √
                                    answer related to            not in the company’s
                                    impact of                    best interests. √
                                    management.                - Any other relevant
                                                                 answer related to
                                                                 impact of
                                                                 management.
                                              Sub-max. (2)                 Sub-max. (2)
                                                                                   Max.      (4)

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(EC/SEPTEMBER 2016)                BUSINESS STUDIES                                     13

         3.3.3   Legislation    - Easier to establish √     - Take a long time √
                                  under the Companies         and is a long process
                                  Act. √                      to form a company. √
                                - Must complete √           - Can be expensive √
                                  Memorandum of               to make the
                                  Incorporation and           necessary
                                  Notice of Incorporation     payments.√
                                  and payment fee to        - Can become
                                  register company.√          complicated √ to
                                - Any other relevant          obtain all the
                                  answer related to           necessary legal
                                  impact of legislation.      documents. √
                                                            - Any other relevant
                                                              answer related to the
                                                              impact of legislation.
                                             Sub-max. (2)              Sub-max. (2)
                                                                                Max.    (4)

 3.4     Presentation of business information
         3.4.1 Factors to be considered when preparing for a presentation
                - Clear purpose/intentions/objectives √ and main points of the
                    presentation. √
                - Main aims √ captured in the introduction/opening statement of
                    the presentation.√
                - Information presented √ should be relevant and accurate. √
                - Fully conversant √ with the content/objectives of the
                    presentation. √
                - Background/Diversity/Size/Pre-knowledge of the audience √ to
                    determine the appropriate visual aids. √
                - Prepare a rough draft of the presentation √ with a logical
                    structure/format/introduction, body and conclusion.√
                - Conclusion shows a summary of the key facts √ and how it
                    relates to the objectives/shows that all aspects have been
                    addressed. √
                - Create visual aids/graphics √ that will consolidate the
                    information/facts to be conveyed to the audience. √
                - Find out about the venue for the presentation, √ e.g. what
                    equipment is available/appropriate. √
                - Consider the timeframe for presentation, √ e.g. fifteen minutes
                    allowed to complete the presentation. √
                - Rehearsal √ to ensure a confident presentation/time was used
                    effectively. √
                - Prepare for the feedback session, √ by anticipating possible
                    questions/comments. √
                - Any other relevant answer related to the factors that must be
                    considered when preparing for a presentation.
                                                                               Max.    (10)

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14                                    BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

          3.4.2      Handling of feedback and responding to questions
                     - Stand up throughout the feedback session. √√
                     - Be polite, confident and courteous/humorous. √√
                     - Listen and then respond. √√
                     - Make sure that you understand the question/s before
                       responding. √√
                     - Acknowledge good questions. √√
                     - Rephrase questions if uncertain. √√
                     - Do not get involved in a debate. √√
                     - Do not avoid the question, if you do not know the answer,
                       refer the question to the audience or the employees √√/
                       Rectify if incorrect answers are given. √√
                     - Address the whole audience and not only the person asking
                       the question. √√
                     - Provide feedback as soon as possible after the observed
                       event. √√
                     - Be direct, honest, sincere. √√
                     - Use simple language and support what you say with an
                       example/Keep answers short and to the point. √√
                     - Presenter must encourage questions from the audience. √√
                     - Do not allow any one member of the audience to dominate
                       the discussion. √√
                     - Note/write down the questions asked to be able to respond
                       correctly. √√
                     - Challenge during feedback should be studied to improve
                       future presentations. √√
                     - Feedback can be given orally or in writing. √√
                     - Anticipate the questions and prepare possible answers
                       beforehand. √√
                     - Questions should be addressed in an orderly manner. √√
                     - Any other relevant answer related to factors are to be
                       considered when handling feedback and responding to
                       questions.
                       NOTE: Mark the first FIVE (5) only.                    (5 x 2)     (10)

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(EC/SEPTEMBER 2016)                 BUSINESS STUDIES                                     15

 3.5      Disadvantages of partnerships
          - Unlimited liability √√
                 Partners are jointly and severally liable for all business debts. √
                 Wrongful actions of one partner will affect all other partners. √
          - Limited capital √√
               Amount of capital that can be invested is limited by partners’
               savings/credibility. √
          - Lacks continuity√√
                 If one partner dies/moves away a new partnership agreement has
                 to be established/a new partnership is formed.√
          - Uneven distribution of duties/responsibilities/contribution√√
               Some partners may do more work/spend more time in the business
               than others.√
               Partners may all contribute equally.√
          - Different personalities√√
               Personalities/Opinions of partners may lead to
               conflict/disagreement.√

          - Any other relevant answer related to the disadvantages of partnership.
          NOTE:       1.    Mark the first TWO (2) only.
                      2.    Award marks if the fact is integrated in the
                            explanation.
                                                                          Heading        (2)
                                                                      Explanation        (1)
                                                                             Max.        (6)
                                                                                        [60]

                                                     BREAKDOWN OF MARKS
                                                         3.1.1        2
                                                         3.1.2        8
                                                         3.1.3        2
                                                         3.2.1        3
                                                         3.2.2        2
                                                         3.2.3        5
                                                         3.3.1        4
                                                         3.3.2        4
                                                         3.3.3        4
                                                         3.4.1       10
                                                         3.4.2       10
                                                          3.5         6
                                                        TOTAL        60

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16                                   BUSINESS STUDIES                       (EC/SEPTEMBER 2016)

QUESTION 4: BUSINESS ROLES
4.1    Ethics and Professionalism
       4.1.1 Abusing working time/resources √                                                         (1)
       4.1.2   Possible strategies
               - The code of conduct/ethics should contain clear rules about abusing work
                 time/conduct of personal matters during working hours. √√
               - Policy should be signed by all employees so that they are aware of its
                 content. √√
               - Implement policies for employees to have restricted access to business
                 assets. √√
               - Employees should be monitored and work towards realistic goals to get
                 work done. √√
               - Business must introduce/implement time monitoring systems and time
                 recording procedures.√√
               - Structure work hours in such a way that employees have free/flexible
                 time for personal matters. √√
               - Create a culture of responsibility towards the business √√/Strengthen
                 team spirit so that all employees feel responsible for what has to be
                 achieved. √√
               - Any other relevant answer related to addressing abuse of work
                 time/resources.
                 NOTE: Mark the first TWO (2) only.
                                                                                       (2 x 2)        (4)
       4.1.3   Problem solving steps
                - Identify the problem. √√
                     Edge Line must recognise that low productivity√ and rising
                     expenses is a problem.√
                - Define the problem. √√
                     Edge Line must define low productivity and rising expenses, √ e.g.
                     employees are abusing work time/resources.√
                     Write down the possible causes √ of low productivity and rising
                     expenses.√
                - Identify possible solutions to the problem. √√
                      Edge Line must generate a wide range of possible solutions, √ e.g.
                      through brainstorming/creative and/or lateral thinking.√
                      Investigate to make sure all aspects of the problem√ are fully
                      understood. √
                - Facilitate the discussion amongst the persons involved with
                  problem/evaluate each solution. √√
                      Edge Line must use critical and analysis skills √ to evaluate each
                      solution.√
                      Consider the advantages and disadvantages √ of each alternative
                      solution.√
                - Select the most appropriate alternative. √√
                      Edge Line must set criteria for the best solution, √ in terms of
                      aspects such as time/cost/risk involved. √
                      The best solution should match√ the size and the resources of the
                      business.√
                      If the solution is not appropriate, √ go back to defining the
                      problem. √

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(EC/SEPTEMBER 2016)                 BUSINESS STUDIES                                       17

                - Develop an action plan. √√
                     Edge Line must arrange the necessary resources √ and delegate
                     tasks. √
                      Formulate policies for employees √ to have restricted access to
                      business’s assets. √
                      Employees should be monitored √ and work towards realistic goals
                      to get work done. √
                      Business must introduce/implement time monitoring systems √ and
                      time recording procedures. √
                - Implement the suggested solution. √√
                     Edge Line must carry out√ the planned actions. √
                - Monitor the implementation of the action plan. √√
                     Edge Line must continuously monitor √/test the implementation of
                     the solution/action plan. √
                - Evaluate the chosen solution to the problem. √√
                     Edge Line must continuously monitor √/test the solution/action
                     plan. √
                     If problems emerge, Edge Line must recognise √ and re-formulate
                     the problem for improved solutions in the future. √
                     Take √ corrective measures. √
                  NOTE: 1.        Mark steps in any order.
                           2.     The ‘Sub max’ of TWO (2) marks for application in
                                  each step must be adhered to.
                           3.     Allocate SIX (6) marks for naming, mark until you
                                  reach a maximum of 6 marks and avoid marking
                                  the first THREE steps only.
                                                                          Step: Sub-max.           (6)
                                                                    Application: Sub-max.          (6)
                                                                                     Max.         (12)

4.2   4.2.1   Benefits of Twizza hits a six
                - Open many new opportunities for those young players. √
                - Help develop their cricket skills. √
                - Increase their discipline and character. √
                                                                                    (3 x 1) (3)
      4.2.2   Benefits for the business
              - Can serve as a marketing strategy√ and promote the image of the
                business. √
              - A company may have a competitive advantage, √ as it leads to good
                publicity and an improved reputation. √
              - May attract √ experienced employees √/increase the pool of skilled
                labour √ that would increase productivity. √
              - It helps to attract and retain √ staff √/Lower √ staff turnover √ as
                employees’ health and safety √ are considered√/Improves √ the health of
                its employees. √
              - The business enjoys the goodwill √ and support of communities. √
              - CSR helps to attract √ investors. √
              - If the CSR is aligned with company policies/vision/mission statement, √ it
                shows accountability towards all stakeholders.√

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18                                       BUSINESS STUDIES                        (EC/SEPTEMBER 2016)

             -     Businesses that support CSR through various programmes, √
                   encourages and rewards employees √ if they get involved in CSI
                   programmes.
             -     CSI programmes have better success rate if it is fully supported √ by top
                   management. √
             -     Sustained environmental consideration programmes may lead to
                   reducing costs, √ which can make funds available for other business
                   operations. √
             -     If the corporate sector gets involved voluntarily in CSR, √ it is less likely
                   that Government will enforce the issue through legislation. √
             -     Businesses may enjoy√ tax rebates from SARS. √
             -     Any other relevant answer related to benefits to the business.
                                                                                             Max.        (6)

     4.2.3       Challenges for the business
                 - The community may not support √ the enterprise, √ i.e. may not buy √ the
                   products of the enterprise. √
                 - Difficulty √ in adherence to legislation √ governing CSR.
                 - Small and medium enterprises find it difficult √ to implement CSI
                   programmes. √
                 - CSI activities can distract √ businesses from their core business
                   functions. √
                 - Social involvement is paid from a company’s profit √ that could have been
                   used to lower prices to the benefit of customers. √
                 - Detailed reports must be drawn up, √ which can be time consuming. √
                 - Social spending reduces √ a company’s economic efficiency and makes it
                   less competitive.√
                 - It can increase financial risk, √ as programmes cost money and may
                   impact negatively on profits.√
                 - Company directors are accountable to shareholders, √ not to the
                   communities.√
                 - It is difficult to accurately measure √ the effectiveness of social
                   investment. √
                 - It is difficult to determine √ the exact needs of the community. √
                 - Most managers are not trained and lack experience √ to handle social
                   programmes. √
                 - Some shareholders/stakeholders might withdraw their support from the
                   company √ as they feel that social issues should be the government’s
                   responsibility. √
                 - Providing goods and services that meet the needs of the consumers is, √
                   according to some stakeholders, already socially responsible. √
                 - Some CSI programmes will be regarded as a public relations stunt, as
                   these programmes improve the business’s image√ without having a
                   sustainable/long term effect. √
                 - Shareholders, as the only real stakeholders, may suffer √ as their profits
                   are spent on CSR. √
                 - Employees may spend more time working √ on CSI programmes instead
                   of focusing on their core duties. √
                 - Any other relevant answer related to challenges to the business.
                                                                                         Max.            (6)

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(EC/SEPTEMBER 2016)                 BUSINESS STUDIES                                     19

        4.2.4    CSI projects
                 - Charitable contribution towards NGOs/Businesses can donate
                   blankets to old age homes/running soup kitchens. √√
                 - Involvement in community education/Build schools in
                   communities/Offer bursaries to needy students/Donate old
                   computers to less privileged schools/Provide/Support adult
                   education and training in the local community. √√
                 - Teach entrepreneurial skills/Offer support to individuals starting
                   new business ventures. √√
                 - Conduct skills development/job creation projects/Offering
                   bricklaying courses. √√
                 - Sponsor art and cultural programmes, such as school choirs. √√
                 - Support youth programmes, such as sport/recreational
                   activities. √√
                 - Any other relevant answer related to the contribution of
                   corporate social investment (CSI) projects to the community.
                   NOTE:       1.    Mark the first THREE (3) only.
                               2.    Award a maximum of TWO (2) marks if the
                                     example demonstrates the same practical
                                     way and contribution of CSI projects to the
                                     community.
                                                                                 Max.    (6)

 4.3    Causes of conflict within a team
        - Lack of proper communication between leaders and members. √√
        - Ignoring rules/procedures may result in disagreements and conflict. √√
        - Leaders and/or members may have different personalities/
          background. √√
        - Different values/levels of knowledge/skills/experience of team
          members. √√
        - Little/no co-operation between internal and/or external
          parties/stakeholders. √√
        - Lack of recognition for good work, e.g. a leader may not show
          appreciation for extra hours worked to meet deadlines. √√
        - Lack of member development may increase frustration levels as
          members may repeat errors due to lack of knowledge/skills. √√
        - Unfair disciplinary procedures, e.g. favouritism. √√
        - Little/no support from management with regard to supplying the
          necessary resources. √√
        - Leadership styles used, e.g. autocratic leaders may not consider
          members’ inputs. √√
        - Unrealistic deadlines and heavy workloads lead to stress resulting in
          conflict. √√
        - Lack of agreement on mutual matters, e.g. remuneration/working
          hours. √√
        - Unhealthy competition/Inter-team rivalry may cause members to lose
          focus on team targets. √√
        - Lack of commitment which may lead to an inability to meet pre-set
          targets. √√
        - Any other relevant answer related to causes of conflict.
                                                                              Max.      (10)

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20                                  BUSINESS STUDIES                      (EC/SEPTEMBER 2016)

 4.4      Stages of teamwork
          - Forming √√
                A team is formed consisting of different individuals, √ who will have
                to work together towards a common goal. √
                Team members volunteer √ to work together. √
                Formed√ to solve a problem/challenge. √
                Individuals are driven √ by the desire to be accepted by the other
                team members. √
                Team members gather information √ about each other/the
                objectives of the team. √
                This is a good opportunity √ to see how each member performs as
                an individual and how he/she responds to pressure.√
                Any other relevant answer related to the formation of a team.

         -    Storming √√
                 After the team has been formed, √ it goes through a period of
                 uneasiness known as storming. √
                 Different ideas √ are stormed for consideration. √
                 Team members open up to each other √ and confront each other’s
                 ideas/perspectives. √
                 This stage is necessary/important √ for the growth of the team. √
                 Team members should be tolerant of/patient √ with each other to
                 survive this stage. √
                 Any other relevant answer related to the storming stage of a team.

          -   Norming √√
              Team members:
                 Agree on a mutual/common plan √ for the team.√
                 Consider their own ideas, √ but agree with others to make the team
                 perform well. √
                 Take the responsibility/have √ the ambition to work towards the
                 success of the team. √
                 May focus too much on preventing conflict √ that they become
                 reluctant to share controversial ideas. √
                 Any other relevant answer related to the norming stage of a team.

         -    Performing √√
              Team members:
                 Know each other √ and can function as a unit. √
                 Find ways to get the job done smoothly √ without conflict/external
                 supervision. √
                 Are motivated/knowledgeable/competent/able √ to handle the
                 decision-making process in the team.√
                 Will make the most of the necessary decisions√ to work towards a
                 common goal.√
                 Will go through all four stages√ many times as they encounter
                 changing circumstances.√
                 Any other relevant answer related to the performing stage of a
                 team.

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