# Business Studies Grade 12 NSC June 2018 Memo (English)

> Grade 12 Business Studies memorandum from the NSC June Exam 2018 (English), 44 pages. Read online or download the free PDF.

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- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Document type: Memorandum
- Year: 2018
- Exam period: NSC June Exam
- Curriculum: CAPS
- Pages: 44

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Business Studies · Grade 12 · NSC June Exam · 2018. Memorandum, 44 pages. Read online or download the PDF.

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                     SENIOR CERTIFICATE EXAMINATIONS

                                 BUSINESS STUDIES

                                    MAY/JUNE 2018

                               MARKING GUIDELINES

                                                                        MARKS: 300

                      These marking guidelines consists of 44 pages.

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Business Studies                              2                                      DBE/2018
                                      SCE – Memorandum

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
           Senior Marker:       Green
           Deputy Chief Marker: Brown/Black/Blue
           Chief Marker:        Pink
           Internal Moderator:  Orange
           DBE Moderator:       Turquoise
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 guidelines 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
               guidelines
           •   Comes from another 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 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 memo. Only the total for each question should appear in the left-hand margin
           next to the appropriate question number.
8.         In an indirect question, the theory as well as the response must be relevant and
           related to the question.

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Business Studies                                 3                                        DBE/2018
                                      SCE – Marking guidelines

9.       Incorrect numbering of answers to questions or sub-questions in SECTION A
         and B will be severely penalised. Therefore, correct numbering is strongly
         recommended in all sections.

10.      No additional credit must be given for repetition of facts. Indicate with a 'R'.

11.      Note that no marks will be awarded for indicating Yes/No in evaluation type
         questions requiring substantiation or motivation. (Applicable to SECTIONS B
         and C)

12.      The differentiation between 'evaluate' and 'critically evaluate' can be explained
         as follows:

         12.1        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.'√

         12.2        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.

13.      The allocation of marks must be informed by the nature of the question,
         cognitive verb used, mark allocation in the marking guidelines and the context
         of each question.
         Cognitive verbs, such as:

         13.1        Advise, name, state, mention, 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.

         13.2        Describe, explain, discuss, elaborate, compare, distinguish,
                     differentiate, justify, devise, 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.

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Business Studies                                4                                       DBE/2018
                                     SCE – Marking guidelines

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

15.      SECTION B

15.1     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 applies only to questions where the number of facts is specified.

15.2     If two or more facts are written in one sentence, award the candidate FULL
         credit. Point 15.1 above still applies.

15.3     If candidates are required to provide their own examples/views, brainstorm this
         at the marking centre to finalise alternative answers.

15.4     Use of the cognitive verbs and allocation of marks:

         15.4.1      If the number of facts are 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     1 mark
                     The 'fact' and 'explanation' are given separately in the marking
                     guidelines to facilitate mark allocation.

         15.4.2      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 guidelines.

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

16.      SECTION C

16.1     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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Business Studies                                5                                       DBE/2018
                                     SCE – Marking guidelines

16.2    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                      2
        interpretation   headings/sub-headings/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')
        Synthesis             Are there relevant decisions/facts/responses made based on            2
                              the questions?
                              Marks to be allocated using this guide:
                              No relevant facts:    0 (Two '-S')
                              Some relevant facts: 1 (One '-S')
                              Only relevant facts: 2 (No '-S')

                              Option 1: Where a candidate answers 50% or more of
                                        the question with only relevant facts: No'-S'
                                        appears in the relevant margin. Award a
                                        maximum of TWO (2) marks for synthesis.

                              Option 2: Where a candidate answers less than 50% 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: Where a candidate answers less than 50% of the
                                        question with no relevant facts; two'-S' appear in
                                        the left margin. Award a ZERO mark for
                                        synthesis.
        Originality           Is there evidence of examples, recent information, current            2
                              trends and developments?
                                                                   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 allocated for layout, if the headings
                           INTRODUCTION and CONCLUSION are not supported by an
                           explanation.

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

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Business Studies                               6                                    DBE/2018
                                    SCE – Marking guidelines

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

16.5      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.

16.6      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
16.7      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.)
16.8      If the candidate identifies/interprets the question INCORRECTLY, then
          he/she may still obtain marks for layout.
16.9      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 guidelines.

16.10     16.10.1 Award TWO marks for complete sentences. Award ONE mark for
                  phrases, incomplete sentences and vague answers.

          16.10.2 Where candidates give complete sentences, 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.

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

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Business Studies                                7                             DBE/2018
                                     SCE – Marking guidelines

SECTION A

QUESTION 1

1.1       1.1.1 B√√
          1.1.2 A√√
          1.1.3 C√√
          1.1.4 D√√
          1.1.5 D√√
          1.1.6 B√√
          1.1.7 C√√
          1.1.8 C√√
          1.1.9 B√√
          1.1.10 D√√                                                     (10 x 2)          (20)

1.2       1.2.1      specification√√
          1.2.2      dividend√√
          1.2.3      debenture holders√√
          1.2.4      Jungian√√
          1.2.5      administration√√                                      (5 x 2)         (10)

1.3       1.3.1 H√√
          1.3.2 J√√
          1.3.3 G√√
          1.3.4 A √√
          1.3.5 F√√                                                        (5 x 2)         (10)

                                                                TOTAL SECTION A:           40

                                                                 BREAKDOWN OF MARKS
                                                                QUESTION 1  MARKS
                                                                   1.1        20
                                                                   1.2        10
                                                                   1.3        10
                                                                  TOTAL       40

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Business Studies                             8                                    DBE/2018
                                  SCE – Marking guidelines

SECTION B

Mark ONLY the FIRST THREE (3) questions in this section.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1   Porter’s Five Forces model
       - Threat of substitution/Substitutes√
       - Bargaining power of buyers√
       - Threat/Barriers to new entry to the market√
       - Power of suppliers√
       - Competitive rivalry√
       NOTE: Mark the first FOUR (4) only.                                        (4 x 1) (4)

2.2    Role of SETAs
       - Develop skills plans in line with the National Skills Development Strategy. √√
       - Draw up skills development plans for their specific economic sectors. √√
       - Approve workplace skills plans and annual training reports. √√
       - Allocate grants to employers, education and training providers. √√
       - Pay out grants to companies that are complying with the requirements of the Skills
         Development Act. √√
       - Monitor/Evaluate the actual training by service providers. √√
       - Promote and establishes learnerships. √√
       - Register learnership agreements/learning programmes. √√
       - Provide training material/programmes for skills development facilitators. √√
       - Provide accreditation for skills development facilitators. √√
       - Oversee training in different sectors of the South African economy. √√
       - Promote learnerships and learning programmes by identifying suitable workplaces
         for practical work experience. √√
       - Collect levies and pay out grants as required. √√
       - Report to the Director General. √√
       - Any other relevant answer related to the role of SETAs in supporting the Skills
         Development Act.
                                                                                      Max (10)

2.3   BBBEE pillars
2.3.1 Supplier development/Enterprise and Supplier development/Preferential
      procurement√√
2.3.2 Social responsibility/Socio economic development√√
2.3.3 Skills development√√
2.3.4 Management/Employment Equity/Management control√√
2.3.5 Ownership√√
                                                                                          (10)

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Business Studies                              9                                   DBE/2018
                                   SCE – Marking guidelines

2.4     Distinction between product development and market development
           PRODUCT DEVELOPMENT                    MARKET DEVELOPMENT
       - Businesses generate new ideas√      - A process of exploring/finding/
         and develop a new product or          searching new markets√ for
         service.√                             existing products.√
       - The introduction of a new product   - Businesses sell their existing
         or service√ into existing markets.√   products√ to new markets√/
                                               Involves targeting consumers in a
                                               potential market√ that is outside its
                                               normal target market.√
       - A business may need to acquire      - Business must research√ the
         new technology√ to develop new        market it wants to enter.√
         products.√
       - They improve/change the             - They change the way the products
         packaging of current products√ so     are distributed√ to reach a
         that they look and seem different     different market.√
         and appeal to the market.√
       - Example: A cell phone               - Example: Finding new markets√ in
         manufacturer designs a new            other towns and cities.√
         phone√ that can also be used to
         make internet phone calls.√
       - Any other relevant answer related - Any other relevant answer related
         to product development.               to market development.
                                 Sub max (4)                          Sub max (4)
      NOTE: 1. The answer does not have to be in tabular format.
               2. The distinction must be clear.
               3. Award a maximum of FOUR (4) marks if the distinction is not
                  clear/Mark either product development or market development.
                                                                                       Max (8)

2.5   Legislation
2.5.1 Compensation for Occupational Injuries and Disease Act, 1997 (Act 61 of 1997)/
      COIDA. √√
                                                                                        (2)
2.5.2 Negative impact of COIDA on MGM/businesses
      - Claiming processes/procedures√ can be time consuming for MGM. √
      - Processes/Procedures required by this Act may be costly√ as paperwork places
        an extra administrative burden on MGM/businesses. √
      - MGM/Employer has to register all their workers/make annual contributions to
        COIDA√, which may result in cash flow problems. √
      - MGM/Employer may be forced to pay heavy penalties√ if they are found guilty of
        negligence/not enforcing safety measures. √
      - Workers who are temporarily/permanently employed in foreign countries√ are not
        covered. √
      - Domestic/Military workers√ are not covered. √
      - Any other relevant answer related to the negative impact of COIDA on
        MGM/businesses.
       NOTE: Accept relevant facts, if COIDA was incorrectly identified as an answer
               in QUESTION 2.5.1.                                                 Max (8)

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                                  SCE – Marking guidelines

2.6     Business environment

2.6.1 Secondary sector. √                                                                (1)

2.6.2
                          CHALLENGE                      BUSINESS ENVIRONMENT
          (a) SEE employees are regularly absent      Micro√√
              from work√
                                          Sub max (1)                      Sub max (2)
          (b) They buy their raw material from Early  Market√√
              Bird Maize Farm which is out of stock
              sometimes. √
                                          Sub max (1)                      Sub max (2)
         (c) The local government has instructed the Macro√√
              management of SEE to register their
              products with the South African Bureau
              of Standards. √
                                          Sub max (1)                      Sub max (2)
        NOTE: 1. Mark the first challenge for each environment only.
                2. If the business environment is not linked to the challenge, mark the
                    challenge only.
                3. Allocate full marks for business environment even if the challenge
                    is incomplete.
                                                                                 Max (9)

2.7     Impact of NCA on businesses
        Positives/Advantages
        - The whole credit process is transparent√ e.g. both businesses and customers
          know their responsibilities. √
        - Lower bad debts√ resulting in better cash flow. √
        - Protects businesses√ against non-paying consumers. √
        - Increases cash sales√ because businesses only grant credit to qualifying
          customers/more customers are buying in cash. √
        - Stamps out reckless lending√ and prevents businesses from bankruptcy. √
        - Businesses do thorough credit checks√ and receive up-to-date documentation
          from the consumer as proof that they can afford the repayment. √
        - Leads to more customers√ through credit sales as they are now protected from
          abuse. √
        - Any other relevant answer related to the positive impact/advantages of the NCA
          on businesses.
                                          AND/OR

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Business Studies                            11                                    DBE/2018
                                  SCE – Marking guidelines

       Negatives/Disadvantages
       - Business can no longer √ carry out credit marketing.√
       - The paperwork and administrative process required by the Act√ are costly and
         time consuming.√
       - The business needs to appoint additional staff√ to deal with the extra
         administration.√
       - Should the credit agreement be declared reckless√ the business can forfeit the
         outstanding debt and the goods.√
       - Businesses that are official credit providers√, must submit a compliance report
         every year.√
       - Any other relevant answer related to the negative impact/disadvantages of the
         NCA on businesses.
                                                                                    Max (8)
                                                                                      [60]

                                                               BREAKDOWN OF MARKS
                                                                QUESTION 2 MARKS
                                                                    2.1       4
                                                                    2.2      10
                                                                    2.3      10
                                                                    2.4       8
                                                                   2.5.1      2
                                                                   2.5.2      8
                                                                   2.6.1      1
                                                                   2.6.2      9
                                                                    2.7       8
                                                                  TOTAL      60

QUESTION 3: BUSINESS VENTURES

3.1    Types of UIF benefits
       - Unemployment√
       - Maternity√
       - Sick/Illness/Disability√
       - Adoption√
       - Dependants√
       - Any other relevant answer related to types of UIF benefits.
       NOTE: Mark the first FOUR (4) only.                                       (4 x 1) (4)

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Business Studies                           12                                     DBE/2018
                                 SCE – Marking guidelines

3.2    Types of preference shares
3.2.1 Participating√√                                                                   (2)
3.2.2 Cumulative√√                                                                      (2)

3.3 Other types of preference shares
     - Ordinary preference shares√√
     - Non-cumulative√√
     - Redeemable√√
     - Non-redeemable√√
     - Non-participating√√
     - Convertible√√
     - Non-convertible√√
   NOTE: 1. Mark the first THREE (3) only.
         2. Do not award marks for responses given in QUESTION 3.2.
                                                                               (3 x 2) (6)
3.4 Functions of the JSE
     - Gives opportunities to financial institutions such as insurance companies√ to
       invest their funds in shares. √
     - Serves as a barometer/indicator√ of economic conditions in South Africa. √
     - Keeps investors informed on share prices√ by publishing the share prices daily. √
     - Acts as a link√ between investors and public companies. √
     - Shares are valued√ and assessed by experts. √
     - Small investors are invited to take part in the economy of the country√ through the
       buying of shares. √
     - Venture capital market√ is made possible. √
     - Orderly market for securities√ serves as a disciplined market for securities. √
     - Encourages√ new investments. √
     - Mobilises the funds√ of insurance companies and other institutions. √
     - Raises √ primary capital. √
     - Regulates market√ for dealing with shares. √
     - Plans, researches and advises√ on investment possibilities. √
     - Ensures that the market√ operates in a transparent manner. √
     - Provides protection√ for investors. √
     - Encourages short-term√ investment. √
     - Facilitates electronic trading√ of shares/STRATE. √
     - Any other relevant answer related to the functions of the Johannesburg Securities
       Exchange (JSE.)
                                                                                    Max (8)
3.5 Forms of ownership
3.5.1 Partnership√√                                                                     (2)
       Motivation
       Zama and Quinton are qualified lawyers who have started a business, called Z and
       Q Attorneys, which lacks continuity. √                                       (1)
       NOTE: Do not award marks for the motivation, if the form of ownership was
               incorrectly identified.                                          Max (3)

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Business Studies                            13                                    DBE/2018
                                  SCE – Marking guidelines

3.5.2 Success factors of a partnership and personal liability company
   CRITERIA                 PARTNERSHIP                     PERSONAL LIABILITY
                                                                   COMPANY
Management       - Partners are actively involved - PLC is managed by a competent
                    in management√ and may             board of directors√ who may be
                    use the ideas of other             experts in their fields. √
                    partners.√
                 - Partners have access to          - Quick decisions can be made√
                    expertise of other partners√       even if there is only one director.√
                    when difficult decisions have
                    to be made. √
                 - Not all partners need to be
                    actively involved in
                    management√ and would
                    rather appoint competent
                    managers.√
                    Any other relevant answer related to management as a success
                    factor.
                                       Sub max (2)                              Sub max (2)
Taxation         - Partners pay VAT only on         - PLC only pays tax after business
                    relevant products                  expenses√ have been deducted.
                    sold/services rendered√            √
                    which reduces tax
                    administration.√
                 - The partnership does not pay - The company pays tax at a fixed
                    income tax√, only the              rate√ which can be lower than that
                    partners in their personal         of partnerships.√
                    capacity.√
                                                    - Image of the business is
                                                       promoted√ and attracts
                                                       investment when companies
                                                       comply with tax regulations/
                                                       laws. √
                    Any other relevant answer related to taxation as a success factor.
                                       Sub max (2)                              Sub max (2)
Division of      - Fair distribution of profit√ as  - High profits and good returns to
profits             this is done according to the      shareholders√ indicate the
                    contribution of partners.√         success of a company, which
                                                       increases the value of shares.√
                 - The division of profits          - Profits generated can be re-
                    between partners may               invested√ into expand business
                    motivate them√ to make a           operations.√
                    business a successful
                    venture.√
                    Any other relevant answer related to division of profits as a success
                    factor.
                                       Sub max (2)                              Sub max (2)
NOTE: 1. The answer does not have to be in tabular format.
        2. Consider similarities if the partnership was incorrectly identified. Max (12)

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                                 SCE – Marking guidelines

3.6 Transformational leadership theory
     - Suitable for a dynamic environment√, where change could be drastic. √
     - The passion/vision/personality of leaders inspire followers√ to change their
       expectations/perceptions/motivation to work towards a common goal. √
     - Strategic thinking leaders develop a long term vision for the organisation√ and sell
       it to subordinates/employees. √
     - Leaders have the trust/respect/admiration√ of their followers/subordinates. √
     - Promotes intellectual stimulation/creative thinking/problem solving√ which result in
       the growth/development/success of the business. √
     - Followers are coached/led/mentored/emotionally supported through
       transformation/change√ so that they can share their ideas freely. √
     - Encourages followers√ to explore/try new things/opportunities. √
     - Leaders lead by example√ and make workers interested in their work. √
     - Leaders have strong, charismatic personalities√ and are very good at motivating
       staff to achieve results. √
     - Enable employees to take greater ownership for their work√ and to know their
       strengths and weaknesses. √
     - Any other relevant answer related to the transformational leadership theory.
     NOTE: Award marks if examples demonstrate understanding of the leadership
              theory which could be integrated in the answer.
                                                                                   Max (6)

3.7.1 Ways in which Ayisha responded to questions at the end of her presentation
      - At the end of her presentation she ensured that no member of the audience
        dominated the discussion. √
      - She apologised for making an error in her presentation. √
      - She acknowledged good questions. √
      NOTE: 1. Mark the first THREE (3) only.
              2. Only allocate marks for responses that are quoted from the scenario.
                                                                              (3 x 1) (3)

3.7.2 Other ways to respond to questions after a presentation
      - Ensure that you understand each question/what is being said. √√
      - Comment/Rephrase questions if uncertain, before responding. √√
      - Listen carefully to each question/Think carefully before responding. √√
      - Address questions and not the person. √√
      - Remain professional/polite/calm/open/non-aggressive. √√
      - Do not get involved in a debate/argument. √√
      - Avoid answering difficult questions when the answer is not known. √√
      - Address the whole audience and not only the person asking the question. √√
      - Promise to follow up on answers you do not know/unsure about. √√
      - Any other relevant answer related to other ways to respond to questions after a
        presentation.
        NOTE: Do not allocate marks for responses quoted in QUESTION 3.7.1.
                                                                                  Max (8)

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Business Studies                            15                                     DBE/2018
                                  SCE – Marking guidelines

3.8   Investment factors
3.8.1 Inflation rate
      - People are affected by a high inflation rate√, because their money/purchasing
         power decreases. √
      - The return on investment√ should be higher than the inflation rate. √
      - Inflation has a positive effect on some investments√ such as property/shares
         where the income will increase as inflation increases. √
      - Any other relevant answer related to inflation rate as a factor that must be
         considered when making investment decisions.                                Max (2)

3.8.2 Investment period
      - The investment period can be short, medium and/or long term√ depending on the
        investors’ needs. √
      - Short term investments enable investors to access their money√ on a short period
        if needed. √
      - The longer the investment period√ the higher the returns. √
      - Any other relevant answer related to investment period as a factor that must be
        considered when making investment decisions.                              Max (2)

3.8.3 Return on investment
      - There is a direct link√ between risk and return. √
      - The return should be expressed as√ net after-tax gains on the investment. √
      - Returns can be in the form of capital gains√ where the asset appreciates in value. √
      - The net after-tax return should be higher√ than the inflation rate. √
      - High risk investments√ yield higher returns. √
      - Any other relevant answer related to return on investment as a factor that must be
        considered when making investment decisions.                               Max (2)
                                                                                      [60]

                                                                  BREAKDOWN OF MARKS
                                                              QUESTION 3         MARKS
                                                                  3.1               4
                                                                 3.2.1              2
                                                                 3.2.2              2
                                                                  3.3               6
                                                                  3.4               8
                                                                 3.5.1              3
                                                                 3.5.2             12
                                                                  3.6               6
                                                                 3.7.1              3
                                                                 3.7.2              8
                                                                 3.8.1              2
                                                                 3.8.2              2
                                                                 3.8.3              2
                                                                TOTAL              60

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Business Studies                             16                                     DBE/2018
                                   SCE – Marking guidelines

QUESTION 4: BUSINESS ROLES

4.1     King Code principles
        - Transparency√
        - Accountability√
        - Responsibility√
        NOTE: Mark the first THREE (3) only.                                       (3 x 1) (3)

4.2     Causes of conflict in the workplace
        - Differences in backgrounds/cultures/values/beliefs/language√
        - Limited business resources√
        - Different goals/objectives for group/individuals√
        - Personality differences between group/individuals√
        - Different opinions√
        - Unfair workload√
        - Ill-managed stress√
        - Unrealistic expectations√
        - Poor organisation/leadership/administrative procedures and systems√
        - Confusion about scheduling/deadlines√
        - Ignoring rules/procedures√
        - Misconduct/Unacceptable behaviour√
        - High/Intense competition/Competitiveness√
        - Poor communication√
        - Unclear responsibilities√
        - Distracted by personal objectives√
        - Constant changes in the workplace√
        - Unfair treatment of workers/Favouritism by management/Discrimination√
        - Lack of trust amongst workers√
        - Any other relevant answer related to causes of conflict in the workplace.
        NOTE: Mark the first THREE (3) only.                                        (3 x 1) (3)

4.3     Diversity issues
4.3.1   Culture/Religion√√
4.3.2   Age√√
4.3.3   Disability√√
4.3.4   Language√√                                                                     Max (8)

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Business Studies                             17                                     DBE/2018
                                   SCE – Marking guidelines

4.4     Differences between CSR and CSI
       CORPORATE SOCIAL RESPONSIBILITY           CORPORATE SOCIAL INVESTMENT
                          (CSR)                                   (CSI)
       - The intention is to change√ business   - Actively committing money and
          practices.√                             resources√ to uplift the community.√
       - Focus is on increasing image√ and      - Focus is on upliftment of community√
          profits.√                               without return on investment.√
       - Ensure that all internal CSR policies/ - Ensure that CSI projects are relevant√
          practices√ include stakeholders'        to the needs of communities.√
          interests/environmental issues.√
       - Often intended√ as a marketing               - Intended to benefit and uplift communi-
         initiative.√                                   ties√ through social development.√
       - Projects are usually linked to the busi-     - Projects are external to the business√
         ness√, e.g. a manufacturing business           and have a strong developmental
         offering to train the unemployed.√             approach.√
      - Any other relevant answer related to    - Any other relevant answer related to
        Corporate Social Responsibility.          Corporate Social Investment.
                                    Sub max (2)                             Sub max (2)
    NOTE: 1. The answer does not have to be in tabular format.
           2. The differences must be clear.
           3. Award a maximum of TWO (2) marks if the differences are not
              clear/Mark either CSR or CSI.
                                                                                  Max (4)
4.5   Stages of team development
4.5.1 Forming√√                                                                        (2)

       Motivation`
       They were comfortable with each other during their first meeting. √         (1)
       NOTE: Do not award mark for motivation if the stage of team development was
       incorrectly identified.                                                Max (3)
4.5.2 Other stages of teamwork
      Storming stage√√
      - Teams go through a period of unease/conflict after formation. √
      - Different ideas from team members will compete for consideration. √
      - Team members open up to each other and confront each other's ideas/
        perspectives. √
      - Tension/Struggle/Arguments occur and upset team members/There may be
        power struggles for the position of the team leader. √
      - In some instances, storming can be resolved quickly, in others, the team never
        leaves this stage. √
      - Many teams fail during this stage as they are not focused on their task. √
      - This phase can become destructive to the team/will lower motivation if allowed to
        get out of control. √
      - This stage is necessary/important for the growth of the team. √
      - Some team members tolerate each other to survive this stage. √
      - Any other relevant answer related to the storming stage of team development.
                                                                                     Stage (2)
                                                                               Explanation (1)
                                                                                   Sub max (3)
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                                  SCE – Marking guidelines

       Norming stage/Settling/Reconciliation√√
       - Team members form agreement and consensus. √
       - Roles and responsibilities are clear and accepted. √
       - Processes/Working style/Respect develops. √
       - Team members have the ambition to work for the success of the team's goals. √
       - Conflict may occur, but commitment and unity is strong. √
       - Any other relevant answer related to the norming/settling/reconciliation stage of
         team development.
                                                                                      Stage (2)
                                                                                Explanation (1)
                                                                                    Sub max (3)
       Performing stage/Working as a team towards a goal√√
       - Team members are aware of strategies and aims of the team. √
       - They have direction without interference from the leader. √
       - Processes and structures are set. √
       - Leaders delegate and oversee the processes and procedures. √
       - All members are now competent, autonomous and able to handle the decision
         making process without supervision. √
       - Differences among members are appreciated and used to enhance the team's
         performance. √
       - Any other relevant answer related to the performing stage/working as a team
         towards a goal of team development.
                                                                                      Stage (2)
                                                                                Explanation (1)
                                                                                    Sub max (3)
       Adjourning/Mourning stage√√
       - The focus is on the completion of the task/ending the project. √
       - Breaking up the team may be traumatic as team members may find it difficult to
         perform as individuals once again. √
       - All tasks need to be completed before the team finally dissolves. √
       - Any other relevant answer related to the adjourning/mourning stage of team
         development.
                                                                                      Stage (2)
                                                                                Explanation (1)
                                                                                    Sub max (3)
       NOTE:         Mark the first THREE (3) only.
                                                                                        Max (9)

4.5.3 Implications of equality, respect and dignity on businesses
      - Businesses/Team leaders should treat all their employees equally, regardless of
        their race/colour/age/gender/disability, √√ etc.
      - All workers should have access to equal opportunities/positions/resources. √√
      - Employers and employees need to comply with legislation with regard to equal
        opportunities/human rights in the workplace. √√
      - Businesses should develop equity programmes/promote strategies to ensure
        that all employees are treated equally regardless of status/rank/power. √√
      - Mission statement should include values of equality/respect. √√
      - Training/Information/Business policies should include issues such as diversity/
        discrimination/harassment. √√
      - Employers/Team leaders should respond swiftly and fairly to reported incidents of
        discrimination in the workplace. √√

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                                   SCE – Marking guidelines

        - Ensure that employees work in a work environment that is conducive to safety/
          fairness/free from embarrassment. √√
        - Orders/Tasks should be given respectfully and allow the recipient/employee to
          have a say in the manner in which the task should be performed. √√
        - Treat workers with respect/dignity by recognising work well done/the value of
          human capital. √√
        - Any other relevant answer related to the implication of equality, respect and
          dignity on businesses/team leaders.
                                                                                         Max (6)
 4.6    Procedure for dealing with grievance in the workplace
        - An aggrieved employee must verbally report the incident/grievance to his/her
          supervisor/manager√, who needs to resolve the issue within 3 to 5 working days.√
        - Should the employee and supervisor not be able to resolve the grievance√, the
          employee may take it to the next level of management. √
        - The employee may move to a more formal process√ where the grievance must be
          lodged in writing/completes a business grievance form. √
        - He/She must receive a written reply√ in response to the written grievance. √
        - A grievance hearing/meeting√ must be held with all relevant parties present. √
        - Minutes of the meeting must be recorded√ and any resolution passed must be
          recorded on the formal grievance form. √
        - Should the employee not be satisfied√, then he/she could refer the matter to the
          highest level of management. √
        - Top management should organise a meeting with all relevant parties.
        - Minutes of this meeting should be filed/recorded√ and the outcome/decision must
          be recorded on the formal grievance form. √
        - Should the employee still not be satisfied, he/she may refer the matter to the
          CCMA√ who will make a final decision on the matter. √
        - Any other relevant answer related to the correct procedure to deal with grievances
          in the workplace.
        NOTE: The procedure may be in any order.                                        Max (8)

4.7 Ways of contributing to the wellbeing of employees
     - Businesses should improve the general quality of life of employees, e.g. pay fair
        wages/skills development√√, etc.
     - Start a nutritional programme so that employees may enjoy at least one meal per
        day to keep them healthy. √√
     - Allow staff to use some working time to get involved/participate in projects of their
        choice. √√
     - Provide transport to employees who work unusually long hours. √√
     - Establish coaching/mentoring programmes for junior employees. √√
     - Conduct team-building sessions to improve employees' morale. √√
     - Encourage employees to attend capacity-building workshops/training/staff-
        development/team-development programmes. √√
     - Offer counselling sessions to employees with personal/emotional challenges. √√
     - Working conditions should include safety/medical/canteen facilities/benefits like
        leave, retirement√√, etc.
     - Pay fair bonuses based on the earnings/returns of the business. √√
     - Allow for employees' participation in decision making. √√
     - Provide recreational facilities for employees. √√
     - Make annual assessment by a medical doctor/practitioner available. √√

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                                  SCE – Marking guidelines

      - Offer financial support in the case of any hardship caused by unforeseen personal
        costs, e.g. medical costs. √√
      - Allow for flexible working hours to enhance productivity. √√
      - Offer support programmes to employees infected/affected by HIV/Aids. √√
      - Any other relevant recommendation related to ways in which businesses can
        contribute to the wellbeing of their employees.
                                                                                      Max (8)
4.8   Strategies to deal with unethical business practices
4.8.1 Sexual harassment
      - Implement internal complaints and disciplinary procedures. √√
      - Educate employers on sexual harassment matters. √√
      - Formulate a policy regarding sexual harassment. √√
      - Create a good working environment where all employees' rights and dignity are
        respected. √√
      - Internal investigation should be made in order to determine the seriousness of the
        harassment. √√
      - Serious cases/matters on sexual harassment should be reported to the
        appropriate institutions such as the South African Police Services (SAPS). √√
      - Ensure compliance with the law/business code of conduct. √√
      - Any other relevant answer related to strategies to deal with sexual harassment as
        an unethical business practice.
      NOTE: Mark the first TWO (2) only.                                          (2 x 2) (4)
4.8.2 Pricing of goods in rural areas
      - Businesses should be fair and apply reasonable pricing. √√
      - Access to rural areas should be increased, so that more products and a bigger
        variety is available. √√
      - Consumers in rural areas should insist on prices being fair and report any unfair
        pricing. √√
      - Entrepreneurship should be encouraged in these areas. √√
      - Cost effective ways of transporting the products can be investigated. √√
      - Suppliers can work together when delivering products to remote rural areas. √√
      - Any other relevant answer related to strategies to deal with pricing of goods in
        rural areas as an unethical business practice.
      NOTE: Mark the first TWO (2) only.                                            (2 x 2) (4)
                                                                                          [60]
                                                             BREAKDOWN OF THE MARKS
                                                              QUESTION 4   MARKS
                                                                  4.1         3
                                                                  4.2         3
                                                                  4.3         8
                                                                  4.4         4
                                                                 4.5.1        3
                                                                 4.5.2        9
                                                                 4.5.3        6
                                                                  4.6         8
                                                                  4.7         8
                                                                 4.8.1        4
                                                                 4.8.2        4
                                                                TOTAL        60

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