education
Department of
Education
FREE STATE PROVINCE
PREPARATORY EXAMINATION
GRADE 12
BUSINESS STUDIES P1
SEPTEMBER 2025
MARKS: 150
TIME: 2 HOURS
This question paper consists of 10 pages.
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Business Studies Grade 12 P1 Free State Mock 2025 QP
Grade 12 Business Studies Paper 1 question paper from the Free State Mock Exam 2025, 10 pages. Read online or download the free PDF.
Business Studies · Grade 12 · Free State Mock Exam · 2025. Question paper, 10 pages. Read online or download the PDF.
- Subject
- Business Studies
- Grade
- Grade 12
- Document type
- Question paper
- Year
- 2025
- Exam period
- Free State Mock Exam
- Paper
- 1
- Curriculum
- CAPS
- Pages
- 10
- File size
- 2.3 MB
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Free State Mock Exam 2025
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FS/September 2025
INSTRUCTIONS AND INFORMATION
Read the following instructions carefully before answering the questions.
1.
This question paper consists of THREE sections and covers TWO main topics.
SECTION A: Compulsory
SECTION B: Consists of THREE questions.
Answer any TWO of the three questions in this section.
SECTION C: Consists of TWO questions.
Answer any ONE of the two questions in this section.
Read the instructions for each question carefully and take note of what is
required.
Note that ONLY the answers to the first TWO questions selected in SECTION
B and the answer to the FIRST question selected in SECTION C will be marked.
Number the answers correctly according to the numbering system used in this
question paper. NO marks will be awarded for answers that are numbered
incorrectly.
Except where other instructions are given, answers must be written in full
sentences.
Use the mark aflocation and the nature of each question to determine the length
and depth of an answer.
Use the table below as a guide for mark and time allocation when answering
each question.
TIME
SECTION QUESTION | MARKS (minutes)
A: Objective-type questions
COMPULSORY L a0 a
B: THREE direct/indirect- 2 40
type questions 3 40
CHOICE: 4 40 70
Answer any TWO.
C: TWO essay-type questions 5 40
CHOICE:
Answer any ONE. 6 40 30
TOTAL 150 120
Start the answer to EACH question on a NEW page, eg.
QUESTION 1 — new page, QUESTION 2 — new page.
You may use a non-programmable calculator.
Write neatly and legibly.
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FS/September 2025
SECTION A (COMPULSORY)
QUESTION 1
1.1 Various options are provided as possible answers to the following
questions. Choose the answer and write only the letter (A—D) next to the
question numbers (1.1.1 to 1.1.5) in the ANSWER BOOK, e.g., 1.1.6 B.
1.1.1 This Act ensures that the workforce represents the demographics
of the country:
A
B
Cc
D
Labour Relations Act
Employment Equity Act
Basic Conditions of Employment Act
Broad-Based Black Economic Empowerment Act
1.1.2 A business that takes over its suppliers to reduce the risk of
dependency, applies the ... integration strategy
A
B
Cc
D
horizontal
diversification
forward vertical
backward vertical
1.1.3. Pieter Transporters operate in the ... sector as they deliver
products to various customers.
A
B
c
D
global
primary
tertiary
secondary
1.1.4 The quality indicator of the ... function is to get accreditation from
the ISO 9001 to ensure quality products.
A
B
Cc
D
purchasing
public relations
financial
production
1.1.5 The implementation of change on a wider scale by Themba
Constructions is referred to as the ... step of the PDCA model.
oaouUPYr
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act
plan
do
check
(6x2) (10)
Please turn over
FS/September 2025
1.2 Complete the following statements by using the word(s) provided in the list
below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5)
in the ANSWER BOOK.
ownership, financial, strength, competitor, management control,
intranet, opportunity, recruitment agencies, management,
marketing
1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
... is regarded as one of the components of the micro-environment.
The owner of Davie Bed & Breakfast identified a/an ... wnen Mandy
Bed & Breakfast closed down.
. fefers to businesses that involve black people in decision-
making.
The ... function uses pricing techniques to ensure a competitive
advantage.
The ... is used as one of the sources of internal recruitment.
(5x2) (10)
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FS/September 2025
1.3 Choose a description from COLUMN B that matches a term in COLUMN A. Write
only the letter (A—J) next to the question numbers (1.3.1 to 1.3.5) in the ANSWER
BOOK, e.g. 1.3.6 K.
COLUMN A COLUMN B
1.3.1 Adequate financing and A compels businesses to create
capacity acceptable employment practices
and safety regulations
1.3.2 COIDA
B develop short-term and long-term
1.3.3. Unemployment Insurance workforce skills
Fund
C provides high-quality products and
1.3.4 National Skills services according to specifications
Development Strategy
. . . D_ enables large businesses to afford
1.3.5 Public relations function to implement systems to prevent
errors in the processes
Es non-compulsory benefit to
employees
F improves access to __ training
programmes
G compels businesses to provide
standards for employment contracts
H provides regular and positive press
releases
| enables businesses to conduct
market surveys to get feedback from
their customers on the quality of
their products
J compulsory benefits paid to
employees
(5x2) (10)
TOTAL SECTION A: 30
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FS/September 2025
SECTION B
Answer ANY TWO questions in this section.
NOTE: Clearly indicate the QUESTION NUMBER of each question that you
choose. The answer to EACH question must start on a NEW page, e.g.
QUESTION 2 on a NEW page, QUESTION 3 on a NEW page.
QUESTION 2: BUSINESS ENVIRONMENTS
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Name any FOUR provisions of the Basic Conditions of Employment Act
(BCEA). (4)
Outline the advantages of intensive strategies. (6)
Identify the PESTLE elements that pose a challenge to Bizzar Contractors
in EACH statement below:
2.3.1 Bizzar Contractors lost many customers due to the lack of online
trading.
2.3.2 They cannot implement correct measures when disposing of
waste materials.
2.3.3 The business increased their prices due to a higher inflation rate.
(6)
Read the scenario below and answer the questions that follow.
KAGISO BANK (KB)
Kagiso Bank offers different financial products to prospective clients.
KB allows clients to obtain reasons for credit being refused. KB also
allow consumers to shop around for the best prices. They ensure their
clients receive information in an understandable language.
2.4.1 Quote TWO consumer rights in terms of the National Credit Act
(NCA)}, 2005 (Act 34 of 2005) from the scenario above. (2)
2.4.2 Evaluate the impact of the National Credit Act on businesses. (6)
Discuss the penalties for non-compliance with the Compensation for
Occupational Injuries and Diseases Amendment Act, (COIDA) 1997 (Act
61 of 1997). (4)
Explain how SETAs are funded. (6)
Recommend ways in which businesses can comply with the Employment
Equity Act (EEA), 1998 (Act 55 of 1998). (6)
[40]
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FS/September 2025
QUESTION 3: BUSINESS OPERATIONS
3.1
3.2
3.3
3.4
3.5
3.6
Copyright reserved
State any FOUR aspects that should be included in an employment
contract.
Outline the placement procedure as a human resources activity.
Read the scenario below and answer the questions that follow.
NAIDOO PRIVATE HOSPITAL (NPH)
Naidoo Private Hospital (NPH) has advertised a vacancy for a financial
consultant. The advertisement includes the following requirements for
the position:
e A Bachelor's degree in Commerce
Responsible for internal auditing
e
e Four years of experience in financial management
e Compiling monthly budgets and financial reports
Quote TWO examples of a job description and TWO examples of job
specifications from the scenario above.
Use the table below as a GUIDE to answer QUESTION 3.3.
JOB DESCRIPTION JOB SPECIFICATION
Outline the difference between quality management and quality
performance.
Discuss the benefits of a good quality management system.
Read the scenario below and answer the questions that follow.
UNIQUE BOUTIQUE (UB)
Unique Boutique manufactures high-quality dresses. Management
ensures that they stay abreast of the latest technology to stay ahead of
their competitors. They also regularly conduct market surveys to
provide customers with information on the quality of their products.
Identify TWO total quality management (TQM) elements applied by UB.
Motivate your answer by quoting from the scenario above.
Use the table below as a GUIDE to answer QUESTION 3.6.
TQM ELEMENTS MOTIVATION
ees
(4)
(4)
(4)
(4)
(6)
(6)
Please turn over
3.7
3.8
FS/September 2025
Explain how the quality of performance of the administration function can
contribute to the success of the business.
Advise businesses on the role of quality circles as part of the continuous
improvement of processes and systems.
QUESTION 4: MISCELLANEOUS TOPICS
BUSINESS ENVIRONMENTS
4.1
4.2
4.3
4.4
Copyright reserved
Name any TWO types of business environments and state the extent of
control businesses have over EACH business environment.
Use the table below as a GUIDE to answer QUESTION 4.1.
BUSINESS ENVIRONMENT EXTENT OF CONTROL
1.
2.
Outline the rights of employees in terms of the Labour Relations Act
(LRA).
Distinguish between Black Economic Empowerment (BEE) and the
Broad-Based Black Economic Empowerment (BBBEE) Act.
Read the scenario below and answer the questions that follow.
ZAMA STORES (ZS)
ZS's management has recently failed to yield positive results. The
business has decided to terminate employees' employment contracts
for operational reasons. The business has also encountered more
competitors. ZS's financial difficulties encouraged them to sell the entire
business to pay their liabilities.
Identify TWO types of defensive strategies used by Zama Stores.
Motivate your answer by quoting from the scenario above.
Use the table below as a GUIDE to answer QUESTION 4.4.
BUSINESS STRATEGY MOTIVATION
(6)
(6)
[40]
(4)
(6)
(4)
(6)
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FS/September 2025
BUSINESS OPERATIONS
4.5 Outline the recruitment procedure. (4)
4.6 Read the scenario below and answer the questions that follow.
BUHLE BOTTLE SUPPLIER (BBS)
Buhle Bottle Supplier has appointed Sam and Themba to whom they
pay salaries and wages. Sam is paid according to the time he spends
at work. Themba is remunerated for the tasks he has completed.
Identify the TWO methods of salary determination used by BBS. Motivate
your answer by quoting from the scenario above.
Use the table below as a GUIDE to answer QUESTION 4.6.
SALARY DETERMINATION
METHOD MOTIVATION
4.
2. (6)
4.7 Discuss the impact of TQM if it is poorly implemented. (4)
4.8 Suggest ways in which total quality management (TQM) can reduce the
cost of quality. (6)
[40]
TOTAL SECTION B: 80
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FS/September 2025
SECTION C
Answer ANY ONE question in this section.
NOTE: Clearly indicate the QUESTION NUMBER of the chosen question. The
answer to the question must start on a NEW page, e.g. QUESTION 5 on
a NEW page OR QUESTION 6 on a NEW page.
QUESTION 5: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES)
Businesses need to implement the strategic management process to improve
internal operations. Porter's Five Forces model enables businesses to analyse their
position in the market. Some use diversification strategies to deal with the challenges
posed by the business environments and they also need to evaluate their strategies.
Write an essay on business strategies in which you include the following aspects:
e Outline the strategic management process.
e Explain THREE types of diversification strategies.
e Discuss how businesses could apply the following forces of Porter's Five Forces
model to analyse their position in the market environment:
o Power of suppliers
o Threats of substitution/substitutes
e Advise businesses on the steps they should consider when evaluating strategies.
[40]
QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES FUNCTION)
Businesses follow the correct selection procedure to fill vacant posts to reduce
unnecessary expenditure. They offer attractive fringe benefits to their employees to
improve their products and services. They also conduct interviews to provide
opportunities for applicants. Induction is offered when the employee accepts the
offer.
Write an essay on the human resources function in which you include the following
aspects:
Outline the selection procedure as a human resources activity.
Explain the purpose of an interview in the business.
Discuss the impact of the fringe benefits on businesses.
Suggest the benefits of induction to businesses.
[40]
TOTAL SECTION C: 40
GRAND TOTAL: 150
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