# Business Studies Grade 12 NSC June 2019 Memo (English)

> Grade 12 Business Studies memorandum from the NSC June Exam 2019 (English), 50 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: 2019
- Exam period: NSC June Exam
- Curriculum: CAPS
- Pages: 50

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Business Studies · Grade 12 · NSC June Exam · 2019. Memorandum, 50 pages. Read online or download the PDF.

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             SENIOR CERTIFICATE EXAMINATIONS/
         NATIONAL SENIOR CERTIFICATE EXAMINATIONS

                                 BUSINESS STUDIES

                                          2019

                                MARKING GUIDELINES

                                                                       MARKS: 300

                      These marking guidelines consist of 50 pages.

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Business Studies                             2                                     DBE/2019
                                 SC/NSC – Marking Guidelines

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
      subjects 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
          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 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
              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 subquestion.
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.
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/2019
                                     SC/NSC – Marking Guidelines

9.        Correct numbering of responses to questions is recommended in SECTION 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 guidelines and the context
          of each question.

          Cognitive verbs, such as:

          12.1       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.

          12.2       Define, describe, explain, discuss, elaborate, distinguish, differentiate,
                     compare, tabulate, justify, 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/2019
                                  SC/NSC – Marking Guidelines

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

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 or use the word 'Cancel'.

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

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 at the marking centre to finalise alternative answers.

14.4      Use of the cognitive verbs and allocation of marks:

          14.4.1 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.

          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 guidelines.

14.5      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).

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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Business Studies                              5                                      DBE/2019
                                  SC/NSC – Marking Guidelines

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               2
          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')
          Synthesis            Are there relevant decisions/facts/responses made based             2
                               on 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 left margin. Award the
                                            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 awarded for layout, if the headings
                        INTRODUCTION and CONCLUSION are not supported by an
                        explanation.
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 guidelines to each question.

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Business Studies                              6                                      DBE/2019
                                  SC/NSC – Marking Guidelines

15.5      Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been
          attained. Write SUBMAX/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 guidelines.

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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Business Studies                              7                               DBE/2019
                                  SC/NSC – Marking Guidelines

SECTION A
QUESTION 1
1.1       1.1.1       B√√

          1.1.2       D√√

          1.1.3       A√√

          1.1.4       C√√

          1.1.5       B√√

          1.1.6       A√√

          1.1.7       D√√

          1.1.8       C√√

          1.1.9       B√√

          1.1.10      C√√                                                    (10 x 2)       (20)

1.2       1.2.1       tables√√

          1.2.2       compulsory√√

          1.2.3       skills development levy√√

          1.2.4       quality performance√√

          1.2.5       specification√√                                         (5 x 2)       (10)

1.3       1.3.1       E√√

          1.3.2       I√√

          1.3.3       H√√

          1.3.4       A√√

          1.3.5       J√√                                                     (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/2019
                                   SC/NSC – Marking Guidelines

SECTION B

Mark the FIRST THREE answers only.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1       Components of PESTLE analysis

          -  Political√
          -  Economical√
          -  Social√
          -  Technological√
          -  Legal√
          -  Environmental√
          NOTE: Mark the first FOUR (4) only.                                 (4 x 1) (4)

2.2       Purpose of LRA
          -  Provides a framework/structure for labour relations between employers/
             employees/trade unions/employer organisations.√√
          -  Promotes/Facilitates collective bargaining at the workplace/at sectorial
             level.√√
          -  Promotes workplace forums to accommodate employees in decision
             making.√√
          -  Provides for the right to lock-out by the employer as a reaction to lengthy
             strikes.√√
          -  Promotes fair labour practice between the employers and employees.√√
          -  Clarifies the transfer of employment contracts between the existing and
             new employers.√√
          -  Promotes simple procedures for the registration of trade unions/employer
             organisations.√√
          -  Advances economic development/social justice/labour peace to ensure
             that the workplace maintains the basic rights of employees.√√
          -  Establishes the Commission for Conciliation, Mediation and Arbitration
             (CCMA) for dispute resolutions./Makes provision for settling labour
             disputes.√√
          -  Establishes Labour Courts and Labour Appeal Courts.√√
          -  Any other relevant answer related to the purpose of the LRA.
                                                                                Max (8)

2.3       Consumer rights

          2.3.1       Right to choose√√

          2.3.2       Right to privacy and confidentiality√√

          2.3.3       Right to equality in the consumer market place√√

          2.3.4       Right to fair value/good quality and safety√√                            (8)

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Business Studies                               9                                     DBE/2019
                                   SC/NSC – Marking Guidelines

2.4       Legislation
          2.4.1     National Credit Act/National Credit Act, 2005 (Act 34 of 2005)/
                    NCA√√                                                                          (2)
                    Motivation
                    The management of MFS always conducts a financial affordability
                    assessment of each client who applies for a loan. /
                    Mohammed Financial Services opened a money market
                    department which grants loans to their customers.√                             (1)
                    NOTE: Do not award marks for the motivation if the Act was
                             incorrectly identified.                        Max (3)
          2.4.2       Other ways to comply with the NCA
                      -  Businesses should register√ with the National Credit
                         Regulator.√
                      -  Obtain credit records/checks of clients√ before granting
                         loans.√
                      -  Submit an annual compliance report√ to the National Credit
                         Regulator.√
                      -  Conduct credit check with a registered credit bureau√ and
                         consult with National Credit Register.√
                      -  Businesses must have procedures in place√ to comply with
                         the provision of the Financial Intelligence Centre Act (FICA).√
                      -  Verify    the    identity    of    clients,   report    suspicious
                         transactions/train staff on their obligations√ in terms of FICA.√
                      -  Offer applicants√ pre-agreement statements.√
                      -  Disclose all costs√ of a loan√/No hidden costs√ should be
                         charged/added.√
                      -  Any other relevant answer related to other ways in which
                         businesses can comply with the NCA.
                      NOTE..1: Do not award marks for conducting a financial
                                affordability assessment to clients who apply for
                                loans.
                             2 Accept relevant facts if the NCA was incorrectly
                                identified as an answer in Question 2.4.1.          Max (8)
2.5       Types of intensive strategies
          2.5.1       Market penetration√√
                      -  Businesses focus on selling existing products into existing
                         market to increase their market share.√
                      -  Businesses use market research on existing clients to decide
                         how improve their marketing mix.√
                      -  Aggressive marketing campaigns such as lowering/reducing
                         prices are used to attract potential/existing clients.√
                      -  Embark on an intensive advertising campaign to increase
                         awareness and customer loyalty.√
                      -  Employ more sales staff to improve sales services.√
                      -  Any other relevant answer related to a description of market
                         penetration as an intensive strategy.
                                                                                Strategy (2)
                                                                             Description (1)
                                                                               Sub max (3)

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Business Studies                             10                                    DBE/2019
                                  SC/NSC – Marking Guidelines

          2.5.2       Market development√√
                      -  It is a growth strategy where businesses aim to sell its existing
                         products in new markets.√
                      -  Businesses target consumers in a potential market that is
                         outside of its normal target market.√
                      -  Increase sales of existing products through the development of
                         new markets.√
                      -  Restructure pricing policies to cater for customers of all income
                         levels.√
                      -  Any other relevant answer related to a description of market
                         development as an intensive strategy.
                                                                              Strategy (2)
                                                                           Description (1)
                                                                             Sub max (3)
          2.5.3       Product development√√
                      -  It is a growth strategy where businesses aim to introduce new
                         products into existing markets.√
                      -  Businesses generate new ideas/develop new products/
                         services.√
                      -  Businesses conduct test marketing/market research to
                         establish whether new products will be accepted by existing
                         customers.√
                      -  New products may be different/of a higher quality than those
                         of competitors.√
                      -  Any other relevant answer related to a description of product
                         development as an intensive strategy.
                                                                            Strategy (2)
                                                                         Description (1)
                                                                           Sub max (3)
                      NOTE: Mark the first THREE (3) strategies only.
                                                                                Max (9)
2.6       Challenges of business environments and extent of control
                      CHALLENGES                        BUSINESS                 EXTENT OF
                         2.6.1                       ENVIRONMENT                  CONTROL
                                                           2.6.2                      2.6.3
        (a) His employees' lack good               Micro√√                 Full control√
            customer service.√
        (b) He lost most of his customers to       Market√√                Limited control/Little
            Florah Bakeries.√                                              influence√
        (c) SB had to replace some of its          Macro√√                 No control√
            stolen equipment due to the high
            crime rate in their area.√
                                       Max (3)                  Max (6)                      Max (3)

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Business Studies                                11                                    DBE/2019
                                     SC/NSC – Marking Guidelines

          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.      Award full marks for the business environment even if the
                             challenge is not quoted in full.
                     4.      The extent of control must be linked to the business
                             environment.
                     5       Do not award marks for the extent of control if the
                             business environment is not mentioned.
                     6       Order may be different.

2.7       Porter's Five Forces model
          2.7.1          Bargaining power of suppliers/Power of suppliers
                         -  Suppliers include factories/providers of goods/services that
                            businesses would obtain/buy from in order to operate their
                            business.√√
                         -  Suppliers that deliver high quality product may have power
                            over the business.√√
                         -  A business must assess the power of the suppliers in
                            influencing prices.√√
                         -  The more powerful the suppliers, the less control the business
                            has over them.√√
                         -  The smaller the number of suppliers, the more powerful they
                            may be as the choice of suppliers may be limited √√
                         -  The business should identify the kind of power its suppliers
                            have in terms of the quality of products/services/reliability/
                            ability to make prompt deliveries, √√ etc.
                         -  Any other relevant answer related to the bargaining power of
                            suppliers/power of suppliers.                          Max (4)
          2.7.2          Threat of substitution/Substitutes
                         -   Substitute products or services are different products/services
                             that at least partly satisfy the same needs of consumers and
                             can be used to replace one another. √√
                         -   Businesses should establish whether the sellers of substitute
                             products have improved their products/sell lower quality goods
                             at lower prices.√√
                         -   If business products are easily substituted, they may weaken
                             their power in the market.√√
                         -   Substitute products may cause the business to lose its market
                             share completely.√√
                         -   If the business sells unique products they will not be
                             threatened by substitute products.√√
                         -   Businesses should do market research to assess if customers
                             are using substitute products/services and determine reasons
                             for using substitutes.√√
                         -   It is important that businesses change/improve the design and
                             quality of their products to remain competitive.√√
                         -   Any other relevant answer related to the threat of substitution/
                             substitutes.
                                                                                    Max (4)

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Business Studies                       12                              DBE/2019
                            SC/NSC – Marking Guidelines

                                                          BREAKDOWN OF MARKS
                                                            QUESTION 2 MARKS
                                                                2.1      4
                                                                2.2      8
                                                                2.3      8
                                                               2.4.1     3
                                                               2.4.2     8
                                                                2.5      9
                                                               2.6.1     3
                                                               2.6.2     6
                                                               2.6.3     3
                                                               2.7.1     4
                                                               2.7.2     4
                                                              TOTAL      60

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Business Studies                            13                                    DBE/2019
                                 SC/NSC – Marking Guidelines

QUESTION 3: BUSINESS VENTURES

3.1       Examples of non-insurable risks
          -  Nuclear weapons/war√
          -  Changes in fashion√
          -  Improvement in technology√
          -  Irrecoverable debts√
          -  Financial loss due to bad management√
          -  Possible failure of a business√
          -  Shoplifting during business hours√
          -  Loss of income if stock is not received in time/Time that elapses between
             the ordering and delivery of goods. √
          -  Any other relevant examples of non-insurable risks.
          NOTE: Mark the first FIVE (5) only.                                     (5 x1)       (5)

3.2       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 the 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)

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Business Studies                            14                                   DBE/2019
                                 SC/NSC – Marking Guidelines

3.3      Distinction between insurance and assurance
                     INSURANCE                                   ASSURANCE
        - Based on the principle of√             - Based on the principle of√ security/
           indemnity √                             certainty.√
        - The insured transfers the cost of      - The insurer undertakes to pay an agreed
           potential loss√ to the insurer at a     sum of money√ after a certain period has
           premium.√                               expired/on the death of the insured
                                                   person, whichever occurred first.√
        - It covers a specified event√ that      - Specified event is certain√, but the time of
           may occur.√                             the event is uncertain.√
        - Applicable to short term               - Applicable to long term
           insurance.√                             insurance.√
        - Example:                               - Example:
           Property insurance/money in             Life insurance/endowment policies/
           transit/theft/burglary/fire,√ etc.      retirement annuities,√ etc.
        - Any other relevant answer related - Any other relevant answer related to
           to insurance.                           assurance.
                                     Sub max (4)                                  Sub max (4)

          NOTE:      1.   The answer does not have to be in tabular format
                     2.   The distinction does not have to link but must be clear.
                     3.   Award a maximum of FOUR (4) marks if the distinction is
                          not clear/Mark either insurance or assurance only.
                                                                              Max (8)

3.4   Success and/or failure of a Private company (Pty) Ltd
                SUCCESS FACTORS              AND/OR        FAILURE FACTORS
3.4.1         - Shareholders can vote for/        - Some shareholders may not
Management       appoint√ the most capable          exercise their voting rights√
                 directors to manage their          resulting in choosing the wrong
                 company.√                          person as a director.√
              - Managed at least by one           - Directors may sometimes act in
                 competent√ highly skilled          their own interest√, not in the
                 director.√                         company's best interest.√
              - The management of the             - Large management structures√
                 company can improve√ since         can result in decision-making
                 directors are accountable to       taking time.√
                 shareholders.√
              - Any other relevant answer         - Any other relevant answer
                 related to the contribution of     related to the contribution of
                 management to the success          management to the failure of a
                 of a private company.              private company.
                                                                              Max (4)

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Business Studies                                15                                      DBE/2019
                                     SC/NSC – Marking Guidelines

                    SUCCESS FACTORS                AND/OR          FAILURE FACTORS
3.4.2        -     Large amount of capital can be - It cannot grow into a very large
Capital            raised√ since there is no limit       business√ since it cannot invite the
                   on the number of                      public to buy shares.√
                   shareholders.√
             -     The company can access long        - Restrictions on transferability of
                   term capital√ and therefore has       shares√ may not attract financially
                   good long term growth                 strong investors.√
                   opportunities.√
             -     Even though shares are not         - Large amount of capital cannot be
                   freely transferable√, large           obtained√ as capital contribution is
                   private companies can raise           only limited to private
                   considerable amount of                shareholders.√
                   capital.√
             -     Any other relevant answer          - Any other relevant answer related
                   related to the contribution of        to the contribution of capital to the
                   capital to the success of a           failure of a private company.
                   private company.

NOTE:      1.       The answer does not have to be in tabular format.
           2.       Mark either success AND/OR failure of each factor.                Max (4)

3.5       Compound interest

          3.5.1         Definition
                        -   Interest is calculated every period√ on the original/principal
                            amount plus interest. √
                        -   Interest is added to the original/principal amount√ and interest
                            is earned on interest for each defined period.√
                        -   As interest is added to the investment√, the capital increases.√
                        -   Any other relevant answer related to the definition of
                            compound interest.                                       Max (2)

          3.5.2         Calculation of compound interest
                        Option 1
                        Year 1: R500 000 x 12%      = R60 000√
                        Year 2: R560 000x 12%       = R67 200√
                        Year 3: R627 200 x 12%      = R75 264√
                        Total interest              = R202 464√√
                               OR
                        Option 2
                        FORMULA: P x (1+r) n√
                        R500 000 x (1+12/100)3 √
                        R500 000 x (1.12)3 =R702 464√
                        Total interest = R702 464 – R500 000
                                       = R202 464√√                                   Max (5)

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Business Studies                             16                                  DBE/2019
                                  SC/NSC – Marking Guidelines

          NOTE:      1.   Award full marks (5) if the answer is correct and no
                          workings are shown.
                     2.   If workings were shown correctly, but the final answer is
                          wrong, award a maximum of THREE marks.
                     3.   If the answer is incorrect, award a maximum of ONE mark
                          for the understanding of concept and method.

          3.5.3       Simple interest√√                                               (2)

3.6       Leadership styles

          3.6.1       Leadership styles from the scenario

                       LEADERSHIP STYLE                       MOTIVATION
        Cindy        Transactional√√           Cindy, the production manager, offers
                                               rewards to motivate employees who meet
                                               set targets.√
        Tom          Charismatic√√             Tom, the marketing manager, uses charm
                                               to influence his team to work hard.√
                                   Sub max (4)                               Sub max (2)

          NOTE:      1. Do not award marks for the motivation if the leadership
                        styles were incorrectly identified.
                     2. Award marks for leadership styles even if the quote is
                        incomplete.                                     Max (6)

          3.6.2       Impact of the charismatic leadership style on businesses
                      Positives/Advantages
                      -  Expert at selling business vision√ and achieve excellent
                         results.√
                      -  Employees are motivated√ as the leader is energetic/
                         inspiring.√
                      -  Inspires loyalty/hard work√ among employees.√
                      -  Any other relevant answer related to the positive impact/
                         advantages of the charismatic leadership style.

                                                   AND/OR
                      Negative/Disadvantages
                      -  Leader believes more in himself/herself√ than the team.√
                      -  Projects can collapse√ if the leader leaves the team.√
                      -  Leaders are intolerant of challenges/changes√ and regard
                         themselves as irreplaceable.√
                      -  Leader's emotions may often be more important√ that the
                         purpose of the team.√
                      -  Any other relevant answer related to the negative impact/
                         disadvantages of the charismatic leadership style.
                        NOTE: Accept relevant facts if the charismatic leadership
                                style was incorrectly identified as an answer in
                                Question 3.6.1.
                                                                                Max (8)

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Business Studies                            17                                     DBE/2019
                                 SC/NSC – Marking Guidelines

3.7       Effectiveness of interactive whiteboards/smart boards as a visual aid
          Positives/Advantages
          -   Images can be projected directly from a computer√, so no external
              projector/devices necessary.√
          -   Special pens allow the presenter to write on the board√ while prepared
              images are displayed.√
          -   Additional notes that was added during the presentation√ can be
              captured on computer after the presentation.√
          -   Can be controlled by the touch of a finger√, so the presenter can move
              away from the computer during the presentation.√
          -   Easy to combine√ with sound/other visual aids.√
          -   Useful to capture feedback√ and new ideas.√
          -   Any other relevant answer related to the positives/advantages of
              interactive whiteboards/smart boards as a visual aid.

                                                AND/OR

          Negatives/Disadvantages
          -  Can only be used by a presenter who knows√ the unique features of the
             interactive whiteboard/smart boards and uses it to its full potential.√
          -  Cannot be connected to any computer√ as a special software license is
             needed to be able to use it.√
          -  Technical challenges may render it ineffective√, e.g. loss of signal while
             using it.√
          -  Any other relevant answer related to the negatives/disadvantages of
             interactive whiteboards/smart boards as a visual aid.
                                                                                   Max (8)
                                                                                      [60]

                                                                 BREAKDOWN OF MARKS
                                                                     QUESTION 3      MARKS
                                                                         3.1            5
                                                                         3.2            8
                                                                         3.3            8
                                                                        3.4.1           4
                                                                        3.4.2           4
                                                                        3.5.1           2
                                                                        3.5.2           5
                                                                        3.5.3           2
                                                                        3.6.1           6
                                                                        3.6.2           8
                                                                         3.7            8
                                                                       TOTAL           60

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Business Studies                             18                                 DBE/2019
                                  SC/NSC – Marking Guidelines

QUESTION 4: BUSINESS ROLES

4.1       Human rights in the workplace
          -  Privacy√
          -  Respect/dignity√
          -  Equity√
          -  Freedom of speech and expression√
          -  Information√
          -  Freedom of association√
          -  Free choice of trade/occupation/profession√
          -  Labour rights/Freedom of assembly/Right to protest√
          -  Freedom of thought and religion√
          -  Health care/food/water and social assistance√
          -  Fair labour practices√
          -  Access to Labour Court/institutions√
          -  Education and training/universal right to basic education√
          -  Safety/security and protection/Life√
          -  Freedom of slavery, servitude or forced labour√
          -  Vote√
          -  Freedom of movement√
          -  Children's rights√
          -  Freedom to choose your own language/participate in own cultural life√
          - Any other relevant answer related to human rights in the workplace.
          NOTE: Mark the first FIVE (5) only.                               (5 x1) (5)

4.2       Causes of conflict

          4.2.1       Inter-team rivalry/Competition√√

          4.2.2       Lack of proper/poor communication/ Lack of management/ Poor
                      leadership.√√

          4.2.3       Limited/Lack of resources/Poor organisation √√

          4.2.4       Workload/Deadlines/Work pressure √√
                                                                              Max (8)

4.3       Problem solving technique

          4.3.1       Delphi technique√√                                                      (2)

                      Motivation
                      Management requested experts to suggest ways on how to solve
                      their business problems.√                                               (1)

          NOTE:      Do not award marks for the motivation if the problem solving
                     technique was incorrectly identified.                Max (3)

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Business Studies                             19                                     DBE/2019
                                  SC/NSC – Marking Guidelines

          4.3.2       Advantages of the Delphi technique
                      -  Saving on costs√ as experts are not brought together.√
                      -  Experts will give clear ideas/solutions√ on how to improve on
                         low productivity/ profitability.√
                      -  Panel members/Experts can give new information√ on
                         problems.√
                      -  Information received from experts√ can be kept confidential.√
                      -  It reduces noise levels in an office environment√ since there is
                         no group discussion.√
                      -  Panel members/Experts need to reach consensus√, so that
                         the best solution is found.√
                      -  All experts are given an equal opportunity to give their
                         opinions√, so no-one dominates the process.√
                      -  Any other relevant answer related to the advantages of the
                         Delphi technique.
                      -  NOTE: Accept relevant facts if the problem solving
                         technique was incorrectly identified as an answer in
                         Question 4.3.1.
                                                                                 Max (8)

          4.3.3       Ways to create an environment that stimulates creative
                      thinking in the workplace
                      -   NA must emphasise the importance of creative thinking to
                          ensure that all staff know that their ideas will be heard.√√
                      -   Make time for brainstorming sessions to generate new ideas,
                          e.g. regular workshops/follow up sessions to build on one
                          another's ideas.√√
                      -   Place suggestion boxes around the workplace and keep
                          communication channels open for new ideas.√√
                      -   NA should train staff in innovative techniques/creative problem
                          solving skills/mind-mapping/lateral thinking.√√
                      -   Encourage job swops within the organisation/studying how
                          other businesses are doing things.√√
                      -   Encourage alternative ways of working/doing things.√√
                      -   Respond enthusiastically to all ideas and never let anyone feel
                          less important.√√
                      -   Reward creativity with reward schemes for teams/individuals
                          that come up with creative ideas.√√
                      -   Provide a working environment conducive to creativity, free
                          from distractions.√√
                      -   Any other relevant answer related to ways in which NA can
                          create an environment that stimulates creative thinking in the
                          workplace.
                      NOTE: 1. The emphasis is on 'ways NA create an
                                 environment that stimulates creative thinking' not
                                 advantages.
                              2. Do      not      award     marks       for     “encourage
                               employees/staff
                                 to come up with new ideas”.
                                                                                    Max (6)

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Business Studies                             20                                        DBE/2019
                                  SC/NSC – Marking Guidelines

4.4       Difference between decision making and problem solving

                       DECISION MAKING                              PROBLEM SOLVING
         -   It is often done by one person/a           -   Problems can be solved by a group/
             member of senior management√ who               team√ or an individual team
             makes it authoritarian.√                       member.√
         -   Various alternatives are considered√       -   Alternative solutions are generated/
             before deciding on the best one.√              identified√ and critically evaluated.√
         -   It is part of the problem solving cycle√   -   Process of analysing a situation√ to
             as decisions need to be taken in each          identify strategies to bring about
             step.√                                         change.√
         -   Any other relevant answer related to       -   Any other relevant answer related to
             decision making.                               problem solving.
                                         Sub max (2)                                    Sub max (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 maximum of TWO (2) mark if the difference is not
                        clear/Mark either decision making or problem solving only.
                                                                              Max (4)

4.5       Dealing with diversity issues in the workplace

          4.5.1       Culture
                      - Businesses must be sensitive to special requirements for
                        different cultural groups√, e.g. allow day(s) off for cultural
                        holidays/festivals.√
                      - Cater for special food/preparation methods√ in the workers'
                        canteen.√
                      - Businesses should acknowledge/respect√ cultural differences of
                        employees.√
                      - The business may not discriminate√ against employees on the
                        grounds of their cultural background.√
                      - Any other relevant answer related to how businesses could deal
                        with culture as a diversity issue in the workplace.    Max (4)

          4.5.2       Age
                      - Promotions should not be linked to age√, but rather to a specific
                        set of skills.√
                      - A business may not employ√ children aged 15 or younger.√
                      - The ages of permanent workers should vary√ from 18 to 65 to
                        include all age groups.√
                      - A business may employ a person who is older than the normal
                        retirement age√, provided that person is the most suitable
                        candidate.√
                      - Businesses must encourage older employees√ to help young
                        employees to develop their potential.√
                      - Young employees must be advised to respect√ and learn from
                        older employees.√

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