# Business Studies Grade 11 Eastern Cape November 2025 Memo

> Grade 11 Business Studies memorandum from the Eastern Cape November Exam 2025, 29 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-grade-11-nov-2025-marking-guideline-watermark/ac3d93e2-bc36-4620-bc68-8ea52575bd46
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 11
- Document type: Memorandum
- Year: 2025
- Exam period: Eastern Cape November Exam
- Curriculum: CAPS
- Pages: 29

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## About this document

Business Studies · Grade 11 · Eastern Cape November Exam · 2025. Memorandum, 29 pages. Read online or download the PDF.

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### Page 1

NATIONAL
                  SENIOR CERTIFICATE

                            GRADE 11

                      NOVEMBER 2025

                BUSINESS STUDIES P1
                MARKING GUIDELINE

MARKS:   150

               This marking guideline consists of 29 pages.

### Page 2

2                                BUSINESS STUDIES P1                               (EC/NOVEMBER 2025)

 NOTES TO MARKERS

 PREAMBLE

 The notes to markers are provided for quality assurance purposes to ensure the following:

 (a)       Fairness, consistency and reliability in the standard of marking
 (b)       Facilitate the moderation of candidates' scripts at the different levels
 (c)       Streamline the marking process considering the broad spectrum of markers across the
           country
 (d        Implement appropriate measures in the teaching, learning and assessment of the
           subject at schools/institutions of learning

 1. For marking and moderation purposes, the following colours are recommended:

       Marker:                                  Red
       School moderation:                       Green
       District moderation:                     Orange
       Provincial moderation:                   Purple

 2. Candidates’ responses must be in full sentences for SECTIONS B and C. However,
    this would depend on the nature of the question.

 3. A comprehensive marking guideline 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 marking guideline
       •    Comes from another credible source
       •    Original
       •    A different approach is used

       NOTE: There is only ONE correct answer in SECTION A.

 4. 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.)

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

 6. 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 as well
    as for calculation and moderation purposes.

 7. 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 the marking
    guidelines. Only the total for each question should appear in the left-hand margin next
    to the appropriate question number.

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(EC/NOVEMBER 2025)                         BUSINESS STUDIES P1                                         3

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

 9.    Correct numbering of answers to questions or sub questions is recommended in
       SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of
       the candidate’s responses. Candidates will be penalised if the latter is not clear.

 10. No additional credit must be given for repetition of facts. Indicate with an ‘R’.

 11.   The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as
       follows:

       11.1      When ‘evaluate’ is used, candidates are expected to respond in either a
                 positive/negative manner or take a neutral (positive and negative) stance,
                 e.g. Positive: ‘COIDA eliminates time and costs spent √ on lengthy civil
                 court proceedings.’ √

       11.2      When ‘critically evaluate’ is used, candidates are expected to respond in
                 either a positive/negative manner or take a neutral (positive and negative)
                 stance. In this instance candidates are also expected to support their
                 responses with more depth, e.g. ‘COIDA eliminates time and costs spent
                 √ on lengthy civil court proceedings, √ because the employer will not be
                 liable for compensation to the employee for injuries sustained during
                 working hours, as long as it can be proved that the business was not
                 negligent.’ √

       NOTE:     1.   The above could apply to ‘analyse’ as well.
                 2.   Note the placing of the tick (√) in the allocation of marks.

 12. The allocation of marks must be informed by the nature of the question, cognitive
     verb used, mark allocation in the marking guideline and the context of each
     question.

       Cognitive verbs, such as:

       12.1      Advise, name, state, outline, motivate, recommend, suggest, (list not
                 exhaustive) do not usually require much depth in candidates’ responses.
                 Therefore, the mark allocation for each statement/answer appears at the
                 end.

       12.2      Define, describe, explain, discuss, elaborate, distinguish, differentiate,
                 compare, tabulate, analyse, evaluate, critically evaluate (list not
                 exhaustive) require a greater depth of understanding, application and
                 reasoning. Therefore, the marks must be allocated more objectively to
                 ensure that assessing is conducted according to established norms so
                 that uniformity, consistency and fairness are achieved.

 13. Mark only the FIRST answer where candidates offer more than one answer for
     SECTION B and C questions that require one answer.

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4                                 BUSINESS STUDIES P1                                (EC/NOVEMBER 2025)

 14. SECTION B

       14.1      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.
       NOTE:     1. This applies only to questions where the number of facts is specified.
                 2. The above also applies to responses in SECTION C (where applicable)

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

       14.3      If candidates are required to provide their own examples/views, brainstorm this
                 to finalise alternative answers.

       14.4      Use of the cognitive verbs and allocation of marks:

                 14.4.1       If the number of facts is specified, questions that require
                          candidates to ‘describe/discuss/explain’ may be marked as
                          follows:
                              • Fact 2 marks (or as indicated in the marking guidelines)
                              • Explanation mark (two marks will be allocated in
                                   SECTION C)
                 The ‘fact’ and ‘explanation’ are given separately in the marking guideline to
                 facilitate mark allocation.

                     14.4.2   If the number of facts required is not specified, the allocation of
                              marks must be informed by the nature of the question and the
                              maximum mark allocated in the marking guideline.

       14.5      ONE mark may be awarded for answers that are easy to recall, require
                 one-word answers or are quoted directly from a scenario/case study. This
                 applies to SECTIONS B and C in particular (where applicable).

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(EC/NOVEMBER 2025)                       BUSINESS STUDIES P1                                   5

 15. SECTION C

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

                Introduction
                                         Maximum:
                Content
                                            32
                Conclusion
                Insight                      8
                TOTAL                        40

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6                              BUSINESS STUDIES P1                                (EC/NOVEMBER 2025)

15.2   Insight consists of the following components:

Layout/Structure Is there an introduction, a body and a conclusion?                            2
Analysis and     Is the candidate able to break down the question into
interpretation   headings/subheadings/interpret it correctly to show understanding of
                 what is being asked?
                 Marks to be allocated using this guide:
                 All headings addressed:            1 (One 'A')
                 Interpretation (16 to 32 marks): 1 (One 'A')                                  2
Synthesis        Are there relevant decisions/facts/responses made based on the
                 questions?
                 Marks to be allocated using this guide:
                 Option 1: Only relevant facts: 2 marks (No '-S')
                              Where a candidate answers 50% or more (two to four sub-
                              questions) of the question with only relevant facts; no '-S'
                              appears in the left margin. Award the maximum of TWO
                              (2) marks for synthesis.
                 Option 2: Some relevant facts: 1 mark (One '-S')
                              Where a candidate answers less than 50% (only one sub-
                              question) of the question with only OR some relevant
                              facts; one '-S' appears in the left margin. Award a
                              maximum of ONE (1) mark for synthesis.
                 Option 3: Some relevant facts: 1 mark (One '-S')
                              Where a candidate writes FOUR questions, but one sub-
                              question of the question with no relevant facts; one ‘-S’
                              appears in the left margin. Award a maximum of ONE (1)
                              mark for synthesis.
                 Option 4: No relevant facts:         0 marks (Two '-S')
                              Where a candidate answers less than 50% (only one sub-
                              question) of the question with no relevant facts; two '-S'
                              appear in the left margin. Award a ZERO mark for
                              synthesis.                                                       2
Originality      Is there evidence of one or two examples, not older than two (2) years
                 that are based on recent information, current trends and
                 developments?                                                                 2
                                                                  TOTAL FOR INSIGHT:           8
                                                           TOTAL MARKS FOR FACTS:              32
                                                  TOTAL MARKS FOR ESSAY (8 + 32):              40

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 awarded for layout, if the headings INTRODUCTION
                and CONCLUSION are not supported by an explanation.

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(EC/NOVEMBER 2025)                           BUSINESS STUDIES P1                                        7

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

 15.4    The breakdown of marks is indicated at the end of the suggested answer/
         marking guideline to each question.

 15.5    Mark all relevant facts until the SUB MAX/MAX mark in a subsection has been
         attained. Write SUB MAX/MAX after maximum marks have been obtained but
         continue reading for originality “O”.

 15.6    At the end of each essay, indicate the allocation of marks for facts and marks for
         insight as follows: (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

 15.7    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 subheadings are encouraged and contribute to insight
         (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK
         BREAKDOWN at the end of each question.)

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

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

 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for
               phrases, incomplete sentences and vague answers.

         15.10.2      With effect from November 2015, the TWO marks will not necessarily
                      appear at the end of each completed sentence. The ticks (√) will be
                      separated and indicated next to each fact, e.g. ‘Product development
                      is a growth strategy, √ where businesses aim to introduce new
                      products into existing markets.’ √

                     This will be informed by the nature and context of the question, as well
                     as the cognitive verb used.

 15.11 With effect from November 2017, the maximum of TWO (2) marks for facts
       shown as headings in the marking guidelines, will not necessarily apply to each
       question. This would also depend on the nature of the question.

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8                          BUSINESS STUDIES P1               (EC/NOVEMBER 2025)

 SECTION A

 QUESTION 1

 1.1.1    C √√
 1.1.2    A √√
 1.1.3    B √√
 1.1.4    D √√
 1.1.5    A √√                                                (5 x 2)   (10)

 1.2.1    no √√
 1.2.2    economic √√
 1.2.3    internal √√
 1.2.4    time-related √√
 1.2.5    assurance √√                                        (5 x 2)   (10)

 1.3.1    C √√
 1.3.2    G √√
 1.3.3    H √√
 1.3.4    E √√
 1.3.5    A √√                                                (5 x 2)   (10)

                                                   TOTAL SECTION A:       30
                                                     BREAKDOWN OF MARKS
                                                  QUESTION 1    MARKS
                                                     1.1          10
                                                     1.2          10
                                                     1.3          10
                                                    TOTAL         30

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(EC/NOVEMBER 2025)                        BUSINESS STUDIES P1                                         9

SECTION B

Mark the answers to the FIRST TWO questions only.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1    Types of power relationships
       - Strategic alliance agreements √
       - Persuasion of large investors √
       - Company representatives’ influence √
       NOTE: Mark the first THREE (3) relationships only.                        (3 x 1)        (3)

2.2     Negative impact of strikes on businesses
       - Strike actions have a potential of jeopardising √ relations. √/May lead to an
          unhealthy relationship √ between the employer/management and employees. √
       - It can also affect teamwork in the workplace √ in instances where not all workers
          are in support of such industrial action. √
       - Businesses suffer financial losses/ √ due to low levels of productivity and
          consumer confidence is adversely affected. √
       - Strike actions may lead to production losses √ and decline in sales/economic
          growth. √
       - Businesses may be forced to close down operations √ after strike
          actions. √
       - May force businesses to retrench some of its skilled workers √ to recover from
          losses. √
       - Looting, destruction of business property/infrastructure √ and intimidation of non-
          striking workers. √
       - Employees can lose their pay √ with the ‘no work no pay’ rule applied by the
          business. √
       - Businesses has to hire employees to replace striking workers √ and increases the
          training costs of new employees. √
       - Businesses may lose market shares/customers to competitors √ during the period
          of a strike. √
       - The image/reputation of the business √ might be damaged. √/Scares off √ potential
          investors. √
       - The supplies of goods and services √ are interrupted. √
       - Prices sometimes increase √ to offset the costs incurred by the strike. √
       - Any other relevant answer related to the negative impact of strikes as a socio-
          economic issue on businesses.                                                   Max. (6)

2.3    Solution to piracy

2.3.1 -    Piracy √√
                                                                                        Max.    (2)

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10                             BUSINESS STUDIES P1                                  (EC/NOVEMBER 2025)

 2.3.2    Ways to protect against piracy
          Patent √√
         - A patent prevents other businesses/people from producing and selling the same
             product/specific service. √√
         - Businesses can take out a patent for new inventions and include a sample of
             their invention with the application. √√
         - They must register a patent with the patent office in South Africa. √√
         - The invention must comply with Patent Act No. 57 of 1978. √√
         - They can bring legal proceedings against anyone who produces/sells the
             invention. √√
         - Any other relevant answer related to patent as a solution to piracy.
                                                                                   Solution (2)
                                                                               Description (2)
                                                                                  Sub-max (4)
          Trademarks √√
         - Businesses can use trademarks to identify themselves and their products. √√
         - They must register their trademarks with the register of trademarks √ at the
             companies and intellectual property registration/CIPC. √√
         - A registered trademark is protected forever √ provided it is renewed every ten
             years and a renewal fee is paid. √√
         - Claim damages from someone who infringes the trademark. √√
         - Any other relevant answer related to trademarks as a solution to piracy.
                                                                                   Solution (2)
                                                                               Description (2)
                                                                                  Sub-max (4)
          Copyright √√
         - Businesses can sue someone who infringes the copyright. √√
         - They can also sue someone who sells or distributes works that he/she knew
             were infringements of copyright. √√
         - They can take legal action against people who copy their products. √√
         - Any other relevant answer related to copyright as a solution to piracy.
                                                                                   Solution (2)
                                                                               Description (2)
                                                                                  Sub-max (4)
          NOTE: Only mark the first ONE solution.
                                                                                          Max     (4)

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(EC/NOVEMBER 2025)                           BUSINESS STUDIES P1                                       11

 2.4      Macro environment challenges
          Political changes
         - The government decides its own objectives √ and ideologies. √
         - A change in government laws √ forces businesses to adapt to new laws and
            policies. √
         - A change in government can result in political instability √ which can scare away
            possible investors and tourists, and in turn threaten the survival of a business. √
         - In some countries, there is a high level of political instability and civil war, √ that
            makes it very difficult for businesses to operate there efficiently and profitably. √
         - Any other relevant answer related to political as a challenge from the macro
            environment.
                                                                                              Max.   (4)

 2.5      Socio-economic issues

          2.5.1      Illiteracy √√                                                                   (2)

          2.5.2      Demographic issues √√                                                           (2)

 2.6      Link between the primary, secondary and tertiary sectors

         -   The primary, secondary and tertiary sectors all work together √ to create an
             economic chain of production. √
         -   The primary sector extracts raw materials, √ after which the secondary sector
             transforms/processes the raw materials into products. √
         -   The secondary sector depends on the primary sector √ for raw materials and
             products. √
         -   The secondary sector needs the tertiary sector √ to sell their processed or
             manufactured goods and also for services such as banks, insurance, transport
             and communication. √
         -   The primary sector depends on the secondary sector √ for manufactured goods
             such as machinery/equipment/fertilisers. √
         -   The primary sector is dependent on the tertiary sector √ for its customer
             needs. √
         -   The primary sector depends on others in the primary sector √ for raw
             materials/feed, e.g. a farmer may require seeds from another farm. √
         -   The secondary sector depends on other secondary industries √ for
             manufactured products needed to be used in the manufacturing of their
             product. √
         -   The tertiary sector depends on the primary sector √ for raw materials that do not
             need processing by the secondary sector. √
         -   The tertiary sector depends on the secondary sector √ for manufactured goods
             such as office machines/office furniture/stationery. √
         -   Any other relevant answer related to the link between the primary, secondary
             and tertiary sector.                                                        Max.        (6)

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12                               BUSINESS STUDIES P1                                 (EC/NOVEMBER 2025)

 2.7    Challenges from micro-environment

        2.7.1        Lack of adequate management skills √√
                     Motivation: The production manager does not have the necessary
                     skills to lead his department. √
        NOTE:        Do not award marks for the motivation if the challenge was
                     incorrectly identified.                                               Max.    (3)

        2.7.2    Ways in which business can have a direct influence on the
                 environment
                 - Businesses need to be flexible √ by getting involved in research/
                   development so that they can continue to operate. √
                 - Influencing their suppliers by signing long term contracts √ for their raw
                   materials at fixed prices. √
                 - Influencing their customer base by creating new uses for a product, √
                   taking customers away from competitors/finding new customers and
                   convincing them they need the new product. √
                 - Influencing regulators through lobbying and bargaining √ and can
                   influence their owners using information contained in annual reports. √
                 - Initiating bargaining sessions √ between management and unions. √
                 - Influencing their owners using information √ contained in annual reports. √
                 - Negotiate strategic alliance agreement √ through contractual processes. √
                 - Any other relevant answer related to ways in which businesses can have
                   a direct influence on the environment.
                                                                                            Max.    (4)

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(EC/NOVEMBER 2025)                       BUSINESS STUDIES P1                                     13

 2.8    Ways in which businesses can overcome competition in the market
        - Businesses must ensure that they produce unique/differentiated goods or
          services for the target market to satisfy the customer needs and wants. √√
        - Businesses need to provide more personalised services by being responsive to
          their customers’ needs/wants/expectations. √√
        - Goods/services must be priced lower than competitor’s goods/services in the
          market. √√
        - Businesses must produce/sell high-quality/new goods/services that the customers
          might be interested in. √√
        - Create a positive image/publicity through regular engagements in community
          development projects. √√
        - Businesses must improve on customer service and ensuring client satisfaction. √√
        - Businesses must create a positive image/outlook by regularly renovating their
          premises and improving their systems. √√
        - Businesses must undertake good marketing campaigns by using promotional
          ideas such as posters or campaigns on social media that will draw the attention of
          the target market. √√
        - Businesses must offer low-cost extras such as improved credit terms and loyalty
          schemes. √√
        - Businesses must ensure that they have well-trained/knowledgeable and
          dedicated employees that create a better working atmosphere. √√
        - Keeping up with developments in the business sector, following consumer
          trends/investing in new technology. √√
        - Any other relevant answer related to ways in which businesses can overcome
          competition in the market.                                                   Max.     (4)
                                                                                               [40]

                     BREAKDOWN OF MARKS
                       QUESTION 2                      MARKS
                           2.1                            3
                           2.2                            6
                          2.3.1                           2
                          2.3.2                           4
                           2.4                            4
                           2.5                            4
                           2.6                            6
                          2.7.1                           3
                          2.7.2                           4
                           2.8                            4
                         TOTAL                           40

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14                             BUSINESS STUDIES P1                                (EC/NOVEMBER 2025)

QUESTION 3: BUSINESS OPERATIONS

3.1     Requirements for safe environment
        - Safety policy √
        - Visible warning signs √
        - First aid kit √
        - Safe working environment √
        - Precautionary measures when handling machinery √
        NOTE: Mark the first FOUR (4) quality control bodies only.                 (4 x 1)     (4)

3.2     Advantages of production planning
        - Planning allows businesses to ensure that every machine and worker is used to
          their full capacity and not left with nothing to do. √√
        - A business can ensure that it has the correct amount of supplies and
          stock/inventory control at a given time. √√
        - Planning will prevent time from being wasted and will increase the number of final
          products. √√
        - The planning process involves quality checks, ensures that the correct quality is
          reached, and that production time is decreased. √√
        - Improved inventory control reduces wastage and unnecessary storage cost. √√
        - Any other relevant answer related to advantages of production planning.
                                                                                      Max.     (4)
3.3     Consumer goods

        3.3.1 Convenience goods √√                                                             (2)

        3.3.2 Speciality goods √√                                                              (2)

3.4     Reasons why manufacturers may prefer to make use of indirect distribution
        methods
        - The experienced agents/intermediaries deal with customers, √ which allow
          businesses to focus on core issues. √
        - Transportation and storage √ are taken care of by intermediaries. √
        - There is no need to hire specialised staff √ to do sales complaints. √
        - Businesses do not have to deal √ with customer complaints. √
        - Businesses enjoy the benefits of bulk orders √ from wholesalers. √
        - Better market coverage is achieved √ with using intermediaries. √
        - Intermediaries understand √ how the market operates. √
        - Consumers are often spread across the country; √ distribution needs to be
          widespread as well. √
        - Indirect distribution does not require a large investment √ in advertising. √
        - Intermediaries sometimes provide credit to consumers, √ which will help attract
          more consumers. √
        - Any other relevant answer related to the reasons why manufacturers may prefer
          to make use of indirect distribution methods.
                                                                                        Max.   (4)

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(EC/NOVEMBER 2025)                        BUSINESS STUDIES P1                                   15

3.5     Requirements of a good trademark
        - Trademarks must be attractive √ and promote the product. √
        - Make it easy for consumers to recognise √ the product. √
        - Easy to recognise, remember √ and pronounce. √
        - Must suit √ the product. √
        - Suitably designed √ for the target market. √
        - Must be different √ from its competitors. √
        - Must promote the image √ of the enterprise. √
        - Link the product √ to its promotion strategy. √
        - Draw the attention √ of consumers. √
        - A good trademark helps build √ brand familiarity. √
        - A good trademark can be registered √ according to the requirements of the
          Trade Marks Act. √
        - Any other relevant answer related to the requirements of a good trademark.
                                                                                       Max.   (4)

3.6     Purpose of sales promotion
        - Increase and improve the number of products and services sold to customers
          and increase the sales of products of the business. √√
        - Inform existing and new potential customers about the products and services of
          the business. √√
        - Build long-lasting relationships with customers. √√
        - Persuade immediate purchases with potential customers. √√
        - Determine which sales promotion methods work the best at reaching the target
          market. √√
        - Provide customers with products and services equal to the value promoted in
          marketing communication. √√
        - Remind the target market about current and new products and the availability
          thereof. √√
        - Reconnect with the existing target market. √√
        - Improve overall brand awareness of the business with existing and new
          potential customers. √√
        - Improve customer loyalty with existing and new potential consumers. √√
        - Activate dormant customers to purchase products and services. √√
        - Any other relevant answer related to the purpose of sale promotions.
                                                                                    Max.      (4)

3.7     3.7.1 Selection procedure
              They conducted preliminary interviews as there were many
              applicants. √
              SE gave a written offer for the job to the successful candidate. √
              NOTE: Only award marks for the first TWO steps.                                 (2)

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16                                BUSINESS STUDIES P1                              (EC/NOVEMBER 2025)

        3.7.2        Steps in the selection procedure
                     OPTION 1
                     - Determine fair assessment criteria √ on which selection will be based. √
                     - Applicants must submit the application forms/curriculum vitae √ and
                        certified copies of personal documents/IDs/proof of qualifications. √
                     - Sort the received documents/CVs √ according to the
                        assessment/selection criteria. √
                     - Screen/Determine which applications meet the minimum job
                        requirements √ and separate these from the rest. √
                     - Reference checks/Vetting process should be done √ to verify the
                        content of CVs/regarding work experience/criminal
                        records/qualifications. √
                     - Compile a shortlist √ of potential candidates identified. √
                     - Shortlisted candidates may be subjected √ to various types of selection
                        tests such as skills tests. √
                     - Invite shortlisted candidates √ for an interview. √
                     - Inform unsuccessful applicants √ about the outcome of their application.
                        √/Some advertisements indicate the deadline √ for informing only
                        successful candidates. √
                     - Any other relevant answer related to the selection procedure as a
                        human resources activity.
                                                           OR
                     OPTION 2
                     - Receive documentation such as application forms √ and sort it
                        according to the criteria of the job. √
                     - Evaluate CVs √ and create a shortlist/screen the applicants. √
                     - Check information in the CVs √ and contact references. √
                     - Assess/Test candidates √ who have applied for senior positions/to
                        ensure the best candidate is chosen. √
                     - Conduct interviews √ with shortlisted candidates. √
                     - Any other relevant answer related to the selection procedure as a
                        human resources activity.

                     NOTE: The procedure may be in any order.
                           Do not award marks for responses that are quoted from the
                           scenario in QUESTION 3.7.1.
                                                                                    Max.           (6)

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(EC/NOVEMBER 2025)                        BUSINESS STUDIES P1                                     17

3.8 Difference between job description and job specification

                     JOB DESCRIPTION                          JOB SPECIFICATION
     -   Describes duties and responsibilities √ of   -
                                                     Describes the minimum acceptable
         a specific job. √                           personal qualities/skills/
                                                     qualifications √ needed for the
                                                     job. √
     - Written description of the job √ and its   - Written description of specific
       requirements. √                               qualifications/skills/experience √
                                                     needed for the job. √
     - Describes key performance areas/tasks      - Describes key requirements for the
       √ for a specific job such as job              person who will fill the position, √
       title/working conditions/ relationship of     such as formal
       the job with other jobs in the business,      qualifications/willingness to
       etc. √                                        travel/work unusual hours, etc. √
     - Any other relevant answer related to job - Any other relevant answer related to
       description.                                  job specification.
                                         Submax 2                                  Submax 2
     NOTE: 1. The answer does not have to be in tabular format.
              2. The difference does not have to link but must be clear.
              3. Award a maximum of TWO (2) marks if the difference is not clear. /
                 Mark either job description or job specification only.
                                                                                         Max.    (4)

3.9 Purpose of induction
    - Introduce new employees to management/colleagues to establish relationships with
       fellow colleagues at different levels. √√
    - Create opportunities for new employees to experience/explore different
       departments. √√
    - Explain safety regulations and rules, so that new employees will understand their
       role/responsibilities in this regard. √√
    - Communicate information about the products/services. √√
    - Allow new employees the opportunity to ask questions that will put them at ease. √√
    - Make new employees feel welcome by introducing them to their physical
       workspace. √√
    - Give new employees a tour/information about the layout of the building/office. √√
    - Improve skills through in-service training. √√
    - Familiarise new employees with the organisational structure/their supervisors. √ √
    - Ensure that employees understand their roles/responsibilities so that they will be
       more productive. √√
    - Communicate business policies regarding ethical and professional conduct. √√
    - Any other relevant answer related to the purpose of induction.
                                                                                       Max.      (4)
                                                                                                [40]

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18                       BUSINESS STUDIES P1           (EC/NOVEMBER 2025)

                     BREAKDOWN OF MARKS
                          QUESTION 3            MARKS
                              3.1                  4
                              3.2                  4
                             3.3.1                 2
                             3.3.2                 2
                              3.4                  4
                              3.5                  4
                              3.6                  4
                             3.7.1                 2
                             3.7.2                 6
                              3.8                  4
                              3.9                  4
                            TOTAL                 40

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(EC/NOVEMBER 2025)                       BUSINESS STUDIES P1                                    19

 QUESTION 4: MISCELLANEOUS TOPICS

 BUSINESS ENVIRONMENTS

 4.1      TWO types of lobbying
          - Hedging against inflation √
          - Bargaining sessions between management and unions √
          - Influencing supervisory body/regulators √
          NOTE: Mark the first TWO (2) types of lobbying.                        (2 x 1)      (2)

 4.2      CHALLENGES                                 BUSINESS ENVIRONMENT
          1. BS lost customers to Tekkie Trainers, Market √
             which opened two weeks ago. √
          2. The profitability of BS decreased due Micro √
              to shortage of skilled of employees. √
                                             Max. 2                               Max. 2
          NOTE: Mark the first TWO (2) challenges only.
                   If the business environment is not linked to the challenge, mark
                   the challenge only.
                   Accept the responses in any order.                                         (4)

 4.3      Advantages of networking
          - Businesses can attract new customers, √ resulting in increased market share
            and profitability. √
          - Networking can be an excellent source of new perspectives √ and business
            ideas. √
          - Allows managers to build new business relationships √ and generate new
            business opportunities. √
          - Plays a role in the marketing √ and expansion of a business. √
          - Assists businesses in making √ future business decisions. √
          - Businesses can gain support when representation to various authorities √ is
            planned. √
          - Any other relevant answer related to the advantages of networking.       Max.     (4)

 4.4      Functions of trade unions
          - Trade unions represent and protect their members √ against unfair labour
            practices in the workplace. √
          - They empower employees about their rights in the workplace √ and how to
            apply these rights. √
          - They represent employees in meetings with their employers √ when they face
            workplace grievances and disputes. √
          - Trade unions negotiate for better working conditions, salaries or wages and
            other benefits √ to improve the standard of living for workers. √
          - Employees are protected from unfair dismissals √ and labour practices. √
          - They may take legal action √ on behalf of their members when necessary.
          - Any other relevant answer related to the functions of trade unions.
                                                                                      Max.    (4)

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20                            BUSINESS STUDIES P1                               (EC/NOVEMBER 2025)

 4.5 Purpose of the Labour Relations Act
     - Provides a framework where the employees, trade unions and employers work
       together to discuss matters relating to employment, e.g. wages, conditions of
       employment. √√
     - Promotes orderly negotiations and employee participation in decision-making in the
       workplace. √√
     - Promotes resolution of labour disputes, through the establishment of the
       Commission for Conciliation, Mediation and Arbitration (CCMA). √√
     - Promotes fair employment practices. √√
     - Provides a framework/structure for labour relations between employer and
       employees. √√
     - Provides simple procedures for the registration of trade unions and employers’
       organisations. √√
     - Regulates the rights of trade unions and facilitates collective bargaining. √√
     - Regulates the effectiveness of bargaining councils and statutory councils. √√
     - Allows workplace forums where employees may participate in decision-making. √√
     - Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) to
       resolve labour disputes through statutory conciliation, mediation and arbitration. √√
     - Endorses the right to strike against retrenchments and facilitates labour disputes. √√
     - Clarifies the transfer of contracts of employment procedures. √√
     - Establishes Labour Courts and Labour Appeal Courts to deal with labour issues. √√
     - Provide fair labour practice between the employer and employee. √√
     - Deals with strikes, lockouts and workplace forums. √√
     - Establishes workplace forums to promote the interest of all employees in the
       workplace, whether they belong to the trade union or not. √√
     - Advances economic development/social justice/labour peace to ensure the
       workplace maintains the basic rights of employees. √√
     - Any other relevant answer related to the purpose of the Labour Relations Act.
                                                                                         Max. (4)

 BUSINESS OPERATIONS

 4.6 Marketing activities
     - Standardisation and grading √
     - Storage √
     - Transport √
     - Financing √
     - Risk-bearing √
     - Buying & selling √
      NOTE: Mark only the first TWO marketing activities.
                                                                                       Max. (2)

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(EC/NOVEMBER 2025)                        BUSINESS STUDIES P1                                     21

 4.7      Importance of product development
          - Product design needs to be designed to suit the needs of the customers. √√
          - If the product design does not suit the target market, there will be very little
             demand for the product. √√
          - Business needs to develop new products in order to replace older products in
             stage 4 when the sales decline. √√
          - Businesses are able to remain competitive because they are always on the
             lookout for ways to improve their products. √√
          - Products become different from those of the competitors. √√
          - Any other relevant answer related to the importance of product development.
                                                                                     Max.       (4)

 4.8      4.8.1 Factors that will influence pricing
                -     Demand for the product √
                -     Input cost √
                NOTE: Mark the first TWO (2) only.                                   (2 x 1)    (2)

          4.8.2 Importance of pricing
                -     The pricing process needs to consider √
                      flexibility/discount/territory/life cycle status/allowance. √
                -     Pricing affects the number of products that an enterprise is able to
                      sell, √ which, in turn, affects profitability. √
                -     The price of a product can influence the consumers’ attitude √
                      towards the product or the brand. √
                -     If the price is believed to be too high, √ fewer consumers may buy
                      the product. √
                -     If the price is too low, √ consumers may perceive the goods as being
                      of poor quality. √
                -     The pricing policy should explain when and to whom √ discounts will
                      be granted. √√
                -     The price of a product must make provision for transport costs √ and
                      VAT. √
                -     Low sales result in stockpiles of unsold products √ that have to be
                      stored and not repaying the cost of manufacturing those products. √
                -     Any other relevant answer related to the importance of pricing.
                                                                                        Max.    (4)

 4.9      Role of interviewer during the interview
         - Introduce members of the interviewing panel √ to each candidate/interviewee. √
         - Make the interviewee √ feel at ease. √
         - Explain the purpose of the interview √ to the panel and the interviewee. √
         - Record interviewees’ responses √ for future reference. √
         - Do not misinform/mislead √ the interviewee. √
         - Avoid discriminatory/controversial types of questions, √ such as asking a
            female candidate about family planning/having children. √
         - Provide an opportunity for the interviewee √ to ask questions. √
         - Close the interview by thanking the interviewee √ for attending the interview. √
         - Any other relevant answer related to the role of the interviewer during the
            interview.
                                                                                        Max.    (4)

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22                            BUSINESS STUDIES P1                              (EC/NOVEMBER 2025)

 4.10     Legal requirements of an employment contract
         - Employment contracts may not contain any requirements that are in conflict
            with the BCEA. √√
         - Both the employer and employee must sign the contract. √√
         - Aspects of the employment contract can be re-negotiated during the course of
            employment. √√
         - The Employer and Employee must be satisfied with the conditions in the
            employment contract. √√
         - Neither Employee nor Employer may unilaterally change aspects of the
            employment contract. √√
         - The employment contract should include a code of conduct and a code of
            ethics. √√
         - The employer must explain the terms and conditions of the employment
            contract to the employee.
         - The employment contract should set out clearly the conditions of employment,
            duties and responsibilities of the Employee. √√
         - The remuneration package, including benefits, must be clearly indicated. √√
         - The Employer must allow the Employee to read through the contract before it is
            signed. √√
          - Any other relevant answer related to the legal requirements of an employment
             contract.
                                                                                     Max.    (4)
                                                                                            [40]

                                                           BREAKDOWN OF MARKS
                                                            QUESTION 4    MARKS
                                                                4.1         2
                                                               4.2.1        2
                                                               4.2.2        2
                                                                4.3         4
                                                                4.4         6
                                                                4.5         4
                                                                4.6         2
                                                                4.7         4
                                                               4.8.1        2
                                                               4.8.2        4
                                                                4.9         4
                                                               4.10         4
                                                              TOTAL         40

                                                                    TOTAL SECTION B:         80

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(EC/NOVEMBER 2025)                   BUSINESS STUDIES P1                                        23

SECTION C

Mark the answers to the FIRST question only

QUESTION 5: BUSINESS ENVIRONMENTS (ADAPTING TO CHALLENGES OF
THE BUSINESS ENVIRONMENTS)

5.1 Introduction
   - Social Responsibility is the obligation a business has to protect its environment
      and also improve the quality of life of all the people in their communities. √
   - By being involved in the projects, the business can benefit by showing
      communities they care. √
   - Business must be able to adapt to challenges in order to stay ahead of
      competitors. √
   - The reasons why businesses lobby can vary but most important is to have a voice
      in matters that impact on their operations. √
   - Any other relevant introduction related to projects undertaken as part of social
      responsibility/benefits of social responsibility for businesses. /Ways to adapt to
      challenges. /Reasons why businesses lobby.
                                                                                  (Any 2 x 1)   (2)

5.2 Projects that can be undertaken by businesses as part of social responsibility
    - Businesses must allow employees to get involved in social development
       programmes. √√
    - Businesses must protect the environment and participate in community upliftment
       programmes. √√
    - Engage in environmentally friendly campaigns, such as recycling or re-using
       scarce resources. √√
    - Businesses must support less fortunate people by providing donations to charity
       organisations. √√
    - They can also engage in economic development and provide education on
       HIV/AIDS awareness programmes. √√
    - 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 projects that can be undertaken by
       businesses as part of social responsibility.
                                                                                    Max. (12)

### Page 24

24                             BUSINESS STUDIES P1                                 (EC/NOVEMBER 2025)

 5.3 Benefits of social responsibility projects for businesses
     - Increases employees’ morale and job satisfaction √ when they are involved in
       social responsibility programmes. √
     - Businesses can use CSR/CSI projects as a marketing strategy √ to promote
       their products. √
     - CSI helps to attract investors √ because of increased profits/income. √
     - Promotes customer loyalty, √ resulting in more sales. √
     - May attract experienced employees/increase the pool of skilled labour, √ which
       could increase productivity. √
     - Positive/improved image √ as the business looks after employees/responsibly
       conducts itself. √
     - A business may have a competitive advantage, √ resulting in good publicity/an
       improved reputation. √
     - The business enjoys the goodwill/support √ of communities. √
     - Any other relevant answer related to the benefits of social responsibility projects
       for businesses.                                                              Max.     (12)

 5.4 Ways to adapt to challenges

      5.4.1 Information management
             - Information must be found/recorded/stored/easily retrieved √ and
               effectively used. √
             - Businesses need to implement an effective information management
               system √ which is accessible and useful to all staff. √
             - Information must be managed efficiently √ and a system must be put in
               place so that the relevant staff can easily access it. √
             - Substantial capital should be invested into information technology (IT)
               systems √ to update business operations. √
             - Modern IT solutions enable businesses to satisfy customer needs √ more
               efficiently. √
             - Any other relevant answer related to information management as a
               method to adapt to challenges of the business environments.
                                                                              Sub max.         6

      5.4.2 Strategic responses
            - Management needs to design strategic responses to various challenges √
               by analysing all information and identifying stakeholders involved. √
            - Get a clear picture√ of each stakeholder’s viewpoints and requirements. √
            - Businesses should have a strategic plan √ to respond to changes in the
               business environment. √
            - Any other relevant answer related to strategic responses as a method to
               adapt to challenges of the business environments.
                                                                                Sub max.   6
                                                                                     Max. (12)

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