# Business Studies Grade 12 NSC November 2014 Memo (English) > Grade 12 Business Studies memorandum from the NSC November Exam 2014 (English), 52 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/business-studies-nov-2014-memo-eng/209c851b-9699-4bbb-a66a-43f209374580 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2014 - Exam period: NSC November Exam - Curriculum: CAPS - Pages: 52 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 NSC November 2014 Memo (English)](https://www.hlayiso.com/library/business-studies-nov-2014-memo-eng/209c851b-9699-4bbb-a66a-43f209374580) ## About this document Business Studies · Grade 12 · NSC November Exam · 2014. Memorandum, 52 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com NATIONAL SENIOR CERTIFICATE GRADE 12 BUSINESS STUDIES NOVEMBER 2014 MEMORANDUM MARKS: 300 This memorandum consists of 52 pages. Copyright reserved Please turn over ### Page 2 Downloaded from hlayiso.com Business Studies 2 DBE/November 2014 NSC – Memorandum NOTES TO MARKERS 1. For marking and moderation purposes, the following colours are recommended: Marker: Red Senior Marker: Green Deputy Chief and Chief Marker: Black/Brown/Pink Internal Moderator: Orange 2. Candidates' responses for SECTIONS B and C must be in full sentences; however, this would depend on the nature of the question. 3. A comprehensive memorandum has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but: • Uses a different expression from that which appears in the memorandum • Comes from another source • Original • A different approach is used NOTE: SECTION A: - There are no alternative answers. - Each question has only one correct answer. 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. 7. In an indirect question, the theory as well as the response must be relevant and related to the question. 8 Incorrect numbering of answers will be penalised. This is only applicable to Section A and Section B. 9. No additional credit must be given for repetition of facts. Indicate with an R. 10. 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. 11. Note that with effect from 2012 (final examination) no marks will be awarded for indicating Yes (√√)/No (√√) in evaluation-type questions requiring substantiation or motivation. (Applicable to SECTIONS B and C.) Copyright reserved Please turn over ### Page 3 Downloaded from hlayiso.com Business Studies 3 DBE/November 2014 NSC – Memorandum 12. The difference between 'evaluate' and 'critically evaluate' can be explained as follows: (a) 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.' √ (b) 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. Mark allocation should also be considered. 2. The above could apply to 'analyse' as well. 13. SECTION B 13.1 If, for example, FIVE facts are required, mark the candidate's FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word 'Cancel'. NOTE: This only applies to questions where the number of facts is specified. 13.2 If two facts are written in one sentence, award the candidate FULL credit. Point 13.1 above still applies. 13.3 If candidates are required to provide their own examples/views, brainstorm this at the marking centre to finalise alternative answers. 13.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 13.4.1 Where the number of facts are specified questions that require candidates to 'explain/discuss/describe' will be marked as follows: • Heading/Fact 2 marks • Explanation 1 mark (or as indicated in the memorandum). The 'heading' and 'explanation' are given separately to facilitate mark allocation. 13.4.2 If the number of facts is not specified, the candidate must be informed by the nature of the question and the maximum marks allocated. 13.5 ONE mark will be awarded for answers that are easy to recall, requires one- word answers or is quoted directly from scenario/case study. This applies to SECTIONS B and C in particular. Copyright reserved Please turn over ### Page 4 Downloaded from hlayiso.com Business Studies 4 DBE/November 2014 NSC – Memorandum 14. SECTION C 14.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: 32 Conclusion Insight 8 TOTAL 40 14.2 Insight consists of the following components: Layout/Structure: (Is there an introduction, body, proper paragraphs and a conclusion?) 2 Analysis and (Learners' ability to break down the question/interpret interpretation: it correctly to show understanding of what is being 2 asked.) Synthesis: (What relevant parts of the question would you have included in the answer? Are there decisions made 2 from a combination of relevant points) Marks to be allocated using this guide: Mostly irrelevant facts/No relevant facts: 0 Some irrelevant facts/Some relevant facts: 1 No irrelevant facts/Only relevant facts: 2 Originality: (Examples, recency of information, current trends and developments.) 2 TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY (8 + 32) 40 NOTE: 1. No marks will be awarded for contents repeated from the introduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be allocated for layout, if the headings 'Introduction, Conclusion,' etc. in 'Insight' is not supported by an explanation. 14.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, S and/or O') 14.4 The components of insight are indicated at the end of the suggested answer for each question. 14.5 Mark all relevant facts until the MAXIMUM mark in a subsection has been attained. Write MAX after maximum marks have been obtained. Copyright reserved Please turn over ### Page 5 Downloaded from hlayiso.com Business Studies 5 DBE/November 2014 NSC – Memorandum 14.6 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 14.7 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.) 14.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 14.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the memorandum. 14.10 (a) Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. (b) 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.'√ Copyright reserved Please turn over ### Page 6 Downloaded from hlayiso.com Business Studies 6 DBE/November 2014 NSC – Memorandum SECTION A (COMPULSORY) QUESTION 1 1.1 1.1.1 A√√ 1.1.2 C√√ 1.1.3 D√√ 1.1.4 B√√ 1.1.5 B√√ 1.1.6 C√√ 1.1.7 D√√ 1.1.8 B√√ 1.1.9 C√√ 1.1.10 D√√ (10 x 2) (20) 1.2 1.2.1 Road Accident Fund Act (RAF)√√ 1.2.2 Piecemeal√√ 1.2.3 Market√√ 1.2.4 National Qualifications Framework (NQF)√√ 1.2.5 Memorandum of Incorporation (MOI)√√ (5 x 2) (10) 1.3 1.3.1 C√√ 1.3.2 E√√ 1.3.3 B√√ 1.3.4 H√√ 1.3.5 A√√ (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 Copyright reserved Please turn over ### Page 7 Downloaded from hlayiso.com Business Studies 7 DBE/November 2014 NSC – Memorandum SECTION B QUESTION 2: BUSINESS ENVIRONMENT 2.1 National Credit Act 2.1.1 National Credit Regulator.√ (1) 2.1.2 National Credit Act, 2005 (Act 34 of 2005).√ (1) NOTE: Accept National Credit Act/NCA 2.1.3 Advantages of NCA to credit providers/businesses - More prudent loan granting by Tex Bank√ may result in less bad debts.√/Cash flow improves√, as there are fewer bad debts.√ - Tex Bank's credit granting process is more transparent,√ as it is clearly outlined in the Act./It regulates√ the national standards for credit granting.√ - Protects Tex Bank√ against non-paying clients/consumers.√ - Tex Bank gains goodwill and loyalty√ of clients/consumers.√ - Tex Bank has the right to assess the creditworthiness√ of clients/consumers.√ - Any other relevant answer related to the advantages of NCA to Tex Bank as a credit provider. Max (4) 2.1.4 Reckless granting of loans - Tex Bank fails to assess clients/consumers√ as required by the NCA, but grants loans.√ - Tex Bank conducts assessments, but may still grant credit without explaining all the risks√ and obligations of the loan/new credit to the clients/consumers.√ - Uninformed/Misinformed Tex Bank clients/consumers√ become over- indebted.√ - Tex Bank fails to provide proper pre-agreement documentation√ before a loan is granted.√ - Tex Bank grants credit,√ to clients/consumers who are not really credit- worthy.√ - Any other relevant answer related to the understanding of reckless granting of loans by Tex Bank. Max (4) 2.1.5 Consequences for reckless granting of loans/credit - The court may declare the granting of the loan/credit by Tex Bank reckless√ and may order clients/consumers not to repay the loan/or part thereof to Tex Bank.√ - Tex Bank may not demand payment,√ sue or attach the clients/customers salary/assets.√ - Tex Bank may not charge any fee/interest/other charges√ under that specific credit agreement.√ - The National Credit Regulator may impose a fine/penalty (R30 million)√ on Tex Bank.√ - May be deregistered√ as an accredited√ service provider. Copyright reserved Please turn over ### Page 8 Downloaded from hlayiso.com Business Studies 8 DBE/November 2014 NSC – Memorandum - Tex Bank will bear all costs of removing the negative information of clients/consumers who were blacklisted√ as a result of reckless lending.√ - Any other relevant answer related to the consequences of reckless granting of loans/credit. Max (4) 2.2.1 Strategic management process OPTION 1 - Have a clear vision, a mission statement√ and measurable/realistic objectives in place.√ - Identify opportunities/weaknesses/strengths/threats√ by conducting environ- mental scanning/situational analysis.√ - Tools available for environmental scanning√ may include a SWOT-/ PESTLE-/Porters Five Forces-analysis.√ - Formulate alternative strategies√ to respond to the challenges/scanning results.√ - Develop (an) action plan(s),√ including the tasks to be done/deadlines to be met/resources to be procured, etc.√ - Implement selected strategies√ by communicating it to all stakeholders/ organising the business's resources/motivating staff.√ - Continuously evaluate,√ monitor,√ measure strategies√ in order to take corrective action.√ - Any other relevant answer related to how the strategic management process can be applied. Max (10) OR OPTION 2 - Review√ vision statement.√ - Analyse/Re-examine√ mission statement.√ - Conduct an analysis√ using models such as PESTLE/PORTERS.√ - Formulate strategy√, referring to strategies such as defensive/retrenchment.√ - Implement strategy√, using templates such as action plans.√ - Control of strategy√ to identify gaps in planning.√ - Evaluate strategy√ to identify deviations in implementation.√ - Take corrective action√ to ensure goals/√objectives are met.√ - Any other relevant answer related to how the strategic management process can be applied. Max (10) NOTE: The steps may be in any order. Copyright reserved Please turn over ### Page 9 Downloaded from hlayiso.com Business Studies 9 DBE/November 2014 NSC – Memorandum 2.2.2 Implementing defensive strategies - Retrenchment:√ • Business is restructured,√ therefore staff numbers are reduced.√ • Decreasing the number of product lines, may lead to the closing of a department .√ - Divestiture/Divestment:√ • Unprofitable divisions√ of the business are sold/outsourced to improve operational efficiency.√ • Unproductive assets are sold,√ to improve cash flow.√√ - Liquidation:√ • Sells all assets/stops operating√ to pay off debts.√ • Forced liquidation√ may be used as an option by creditors.√ - Any other relevant answer related to the implementation of defensive strategies. Defensive strategy (1) Explanation (2) Sub max (3) Max (3 x 3) (9) 2.3 Labour Relations Act (LRA) 2.3.1 Non-compliance actions - Unfair/Illegal dismissal√ of employees.√ - Cancellation of employees' contracts by a new owner/employer√ when a business is sold/transferred.√ - Refusing the formation/recognition√ of workplace forums.√ - Refusing to give workplace forum members time off√ with pay for attending meetings during working hours.√ - Forcing employees√ to give up trade union membership.√ - Preventing employees√ from joining trade unions.√ - Refusing leave to trade union representatives√ to attend trade union activities.√ - Breaching of collective agreements/resolution mechanisms√ by either employer/employee.√ - Not allowing employees√ to take part in legal strikes.√/Not adhering to the right√ of employees to strike when legalised.√ - Any other relevant answer related to actions that are non-compliant to the LRA. NOTE: Mark the first FOUR (4) only. (Any 4 x 2) (8) Copyright reserved Please turn over ### Page 10 Downloaded from hlayiso.com Business Studies 10 DBE/November 2014 NSC – Memorandum 2.3.2 Impact on employers/businesses Positives - Protects the rights/interests of businesses√ in labour related issues.√ - Protects employers who embark on lawful lock-outs√ when negotiations between parties fail.√ - Ensures participation of all parties in collective bargaining/decision making√ which leads to reducing conflict in the workplace.√ - Labour disputes are settled quicker√ and are less expensive.√ - Workplace forums can be tasked to resolve workplace issues√ as they take part in decision making.√ - Provides for dispute resolution through consensus√ between organised labour, the business and the state.√ - Provides mechanisms,√ e.g. statutory councils, collective bargaining and CCMA to settle labour disputes.√ - Prevents unfair discrimination in the work place,√ as all employees should be given the same opportunities.√ - The Act gives the employers the right to dismiss employees√ who engage in unprotected strikes.√ - Employers may claim compensation√ via the Labour Court for losses suffered as a result of unprotected strikes.√ - Any other relevant answer related to a positive impact of the LRA on businesses/employers. AND/OR Negatives - Productivity/Profitability may decrease,√ if employees are allowed to participate in the activities of trade unions during work time.√ - Quick decision making may be affected√ as workplace forum representatives may put the interest of employees above that of the business.√ - Dispute resolution through consensus√ may be time-consuming.√ - When a business is transferred/sold to new owners, the new employer has to take-over/continue with existing employees' contracts.√ Incompetent employees may be inherited.√ - Information about work place issues may be disclosed to trade union representatives,√ which may be leaked to competitors.√ - Cost of labour increase,√ because of legal strikes.√ - Labour consultants may be employed to deal with labour related issues,√ which may be costly.√ - Reduced global competitiveness√ due to lower productivity.√ - Any other relevant answer related to the negative impact of the LRA on businesses/employers. Max (10) Copyright reserved Please turn over ### Page 11 Downloaded from hlayiso.com Business Studies 11 DBE/November 2014 NSC – Memorandum 2.4 Basic human rights linked to BBBEE 2.4.1 Basic human rights - Equality/Treated equally and fairly.√ - Respect and dignity/Treated in a dignified manner/Non-discrimination.√ - Education.√ - Economic.√ - Social.√ (Any 3 x 1) (3) 2.4.2 Link to BBBEE - Equality: • Previously disadvantaged persons are given equal opportunities√ for promotion/management/ownership in the workplace.√ • Preferential procurement processes should be fairly implemented√ to the benefit of previously disadvantaged persons.√ • BBBEE Act should be implemented fairly at all levels√ to ensure equality before the law.√ • Any other relevant answer related to the link between equality, as a human right, and the BBBEE Act. - Respect and dignity: • Previously disadvantaged persons are empowered by skills development√ to improve their chances of better employment/wages.√ • Black people are economically more active through preferential procurement/entrepreneurial development√ and are able to live with dignity and respect.√ • Black people, who have been promoted to managerial positions,√ have the right to be treated with respect and dignity.√ • Any other relevant answer related to the link between respect and dignity, as a human right, and the BBBEE Act. - Education: • Skills development programmes√ promote the right to education.√ • Skills development programmes/Learnership programmes√ improve businesses' BBBEE scoring.√ • Any other relevant answer related to the link between education, as a human right, and the BBBEE Act. - Economic: • BBBEE ensures√ that economic transformation takes place. √ • Previously disadvantaged people√ are given a chance to manage, own and control the economy.√ • Promote enterprise development√ through investment programmes and incentive schemes that lead to broad based participation in the economy.√ • Any other relevant answer related to the link between economic (human right) and the BBBEE Act. Copyright reserved Please turn over ### Page 12 Downloaded from hlayiso.com Business Studies 12 DBE/November 2014 NSC – Memorandum - Social: • Socio-economic development programmes√ should include provision of houses/access to healthcare to previously disadvantaged workers.√ • Any other relevant answer related to the link between social (human right) and the BBBEE Act. (Any 3 x 2) (6) NOTE: No credit will be awarded for the identification of basic human rights. [60] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1.1 1 2.1.2 1 2.1.3 4 2.1.4 4 2.1.5 4 2.2.1 10 2.2.2 9 2.3.1 8 2.3.2 10 2.4.1 3 2.4.2 6 TOTAL 60 Copyright reserved Please turn over ### Page 13 Downloaded from hlayiso.com Business Studies 13 DBE/November 2014 NSC – Memorandum QUESTION 3: BUSINESS VENTURES 3.1 Requirements for a logical and effective presentation - Know your audience.√√ - Presentation should include an introduction, body and conclusion.√√ - State the aims of the presentation in your introduction.√√ - Outline the most important information first.√√ - Use visual aids/tables/graphs/charts/diagrams/pictures effectively.√√ - Use suitable section titles/headings, sub-headings and bullets.√√ - Summarise key findings/Conclude by indicating how goals were met.√√ - Consider external factors, e.g. noisy surroundings, which may influence the presentation.√√ - Keep to the time limit to prevent boredom.√√ - Be well prepared/Research the topic in depth.√√ - Allow time for feedback/questions.√√ - Speak clearly and audibly.√√ - Keep eye-contact with the audience.√√ - Any other relevant answer related to the requirements for a logical/effective presentation. NOTE: Mark the first FOUR (4) only. (Any 4 x 2) (8) 3.2 Situational leadership vs. Transformational leadership Situational Leadership Transformational Leadership Leaders: Leaders: - Adapt their leadership style to suit - Inspire followers with a shared the situation they are faced with.√√ vision/passion/enthusiasm and empowerment/Lead by example.√√ - Show various skills and - Challenge existing structures/ characters.√√ processes in the business.√√ - Explore new ways of doing things.√√ - Assume a facilitators' role, if - Keep communication lines open.√√ employees/followers are skilled/ motivated.√√ - Leadership is task related.√√ - Leadership is people-orientated.√√ Followers: Followers: - Should have high levels of - May achieve objectives through maturity.√√ higher ideals/moral values.√√ - May be willing to do tasks, but may - Are motivated/encouraged to put not have the necessary skills.√√ group interest first.√√ - Highly skilled followers are able to - Need constant mentoring and work on their own.√√ support.√√ Copyright reserved Please turn over ### Page 14 Downloaded from hlayiso.com Business Studies 14 DBE/November 2014 NSC – Memorandum Application: Application: - Suitable to manage changes - Suitable for implementing changes caused by internal and external in the business.√√ factors of the three business environments.√√ - Any other relevant answer related - Any other relevant answer related to situational leadership. to transformational leadership. Sub max (6) Sub max (6) Max (12) NOTE: 1. The comparison must be clear. 2. Mark situational leadership or transformational leadership only, when the comparison does not correspond. 3.3 Benefits of UIF to employees • Unemployment benefits√√ - Employees, who become unemployed/retrenched due to restructuring/an expired contract, may claim within six months after becoming unemployed.√ - Unemployed employees may only claim, if they contributed to UIF.√ - Unemployed employees enjoy these benefits until the allocated funds are exhausted.√ - If a worker voluntarily terminates his/her contract, he/she may not claim.√ - No tax is payable on unemployment benefits.√ - Any other relevant answer related to unemployment benefits. Benefit (2) Explanation (1) Sub max (3) • Illness benefits√√ - Employees may receive these benefits if they are unable to work for more than 14 days without receiving a salary/part of the salary.√ - Employees may not claim these benefits if they refuse medical treatment.√ - Any other relevant answer related to illness benefits. Benefit (2) Explanation (1) Sub max (3) • Maternity benefits√√ - Pregnant employees receive these benefits for up to 17 weeks/4 months/ 121 days.√ - If a person had a miscarriage, she can claim for up to six weeks/42 days.√ - Any other relevant answer related to maternity benefits. Benefit (2) Explanation (1) Sub max (3) Copyright reserved Please turn over ### Page 15 Downloaded from hlayiso.com Business Studies 15 DBE/November 2014 NSC – Memorandum • Adoption benefits√√ - Employees may receive these benefits if they adopt a child younger than two (2) years.√ - Employees who take unpaid leave/may receive part of their salary while caring for the child at home.√ - Only one parent/partner may claim.√ - Any other relevant answer related to adoption benefits. Benefit (2) Explanation (1) Sub max (3) • Dependants' benefits√√ - Dependants may apply for these benefits if the breadwinner, who has contributed to UIF, dies.√ - The spouse of the deceased may claim, whether he/she is employed or not.√ - Any other relevant answer related to dependant benefits. Benefit (2) Explanation (1) Sub max (3) NOTE: 1. Mark the first FOUR (4) only. 2. The benefit could be integrated in the explanation. (Any 4 x 3) (12) 3.4 Insurance Assurance - Based on the principle of - Based on the principle of indemnity.√√ security/certainty.√√ - Is a form of risk management in - It is a contract where the insurer which the insured transfers the undertakes to pay an agreed sum of cost of potential loss to another money after a certain period has entity for monetary compensation expired/on the death of the person, known as a premium.√√ whichever occurs first.√√ - It covers a specified event that may - Specified event is certain, although occur.√√ the time of event is uncertain.√√ - Applicable to short term - Usually applicable to long term insurance.√√ insurance.√√ - Any other relevant answer related - Any other relevant answer related to to the definition/distinction of the definition/distinction of insurance. assurance. Sub max (2) Sub max (2) Copyright reserved Please turn over ### Page 16 Downloaded from hlayiso.com Business Studies 16 DBE/November 2014 NSC – Memorandum - Example: property insurance/ - Example: life insurance/ money in transit/theft/burglary/fire.√ endowment policies/retirement annuities.√ - Any other relevant example of - Any other relevant example of insurance. assurance. Sub max (1) Sub max (1) Distinction (4) Example (2) Max (6) NOTE: 1. The comparison must be clear. 2. Mark Insurance or Assurance only, when the comparison does not correspond. 3.5.1 Underinsurance.√√ (2) 3.5.2 Reasons for insurance - Peter wants to protect his property against storm damage, fire, burglary/ any unforeseen insurable circumstances/risks.√√ - He wants to keep high re-instatement costs under control.√√ - He can have peace of mind as the risk of loss is shifted to the insurer.√√ - It may be a requirement for a bond.√√ - Any other relevant answer related to the reasons for insurance. NOTE: Mark the first TWO (2) only. (Any 2 x 2) (4) 3.5.3 Amount insured x damages√ (formula) Market value 400 000 √ x 300 000√ 500 000 = R240 000 √√ Max (4) NOTE: 1. Award full marks (4) if the answer is correct and no workings are shown. 2. If workings (process/procedure) demonstrate understanding of the concept, but the final answer is wrong, award a maximum of TWO (2) marks. 3. If there are no workings shown and the answer is incorrect, award a ZERO mark. Copyright reserved Please turn over ### Page 17 Downloaded from hlayiso.com Business Studies 17 DBE/November 2014 NSC – Memorandum 3.5.4 A = P (1+ r)n√ OR A = P (1+i)n (Accept ‘t’ for ‘n’) = 20 000 (1+ 18/100)3 OR 20 000 (1.18)3 OR 20 000 (1.64) √√√√ = R32 860, 64√ (OR R32 861) ALTERNATIVE CALCULATION Year 1: R20 000 + R3 600 (R20 000 x 18%)√ = R23 600√ Year 2: R23 600 + R4 248 (R23 600 x 18%)√ = R27 848√ Year 3: R27 848 + R5 012.64 (27 848 x 18%)√ = R32 860,64√ (OR R32 861) (6) NOTE: 1. Award full marks (6) if the answer is correct and no workings are shown. 2. If workings (process/procedure) demonstrate understanding of the concept, but the final answer is wrong, award a maximum of THREE (3) marks. 3. If there are no workings shown and the answer is incorrect, award a ZERO mark. 3.5.5 I = P x r x t OR (I = P x r/100 x t) OR (A = P(1+in)) √ (Accept ‘n’ for ‘t’) 100 I = 20 000 x 18/100√ x 3√ Interest = 10 800√ I = 10 800 + 20 000√ I = R30 800√√ Max (6) NOTE: 1. Award full marks (6) if the answer is correct. 2. If workings (process/procedure) demonstrate understanding of the concept, but the final answer is wrong, award a maximum of THREE (3) marks. 3. If there are no workings shown and the answer is incorrect, award a ZERO mark. [60] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 8 3.2 12 3.3 12 3.4 6 3.5.1 2 3.5.2 4 3.5.3 4 3.5.4 6 3.5.5 6 TOTAL 60 Copyright reserved Please turn over ### Page 18 Downloaded from hlayiso.com Business Studies 18 DBE/November 2014 NSC – Memorandum QUESTION 4: BUSINESS ROLES 4.1.1 Tax evasion√√ Possible strategy: - Policy regarding payment to service providers must be followed.√√ - Every transaction should be properly documented/recorded.√√ - Ensure that all financial records are checked/audited.√√ - Any other relevant answer related to addressing tax evasion. Identification (2) Strategy (2) Sub max (4) 4.1.2 Sexual harassment√√ Possible strategy: - A code of conduct/ethics should be in place, containing a framework of corrective action and procedures.√√ - Formulate a clear policy on sexual harassment.√√ - Educate employees to use/understand the policy/procedure contained in the code of conduct/ethics.√√ - Encourage employees to report cases of sexual harassment.√√ - Address complaints. √√ - Conduct disciplinary procedures.√√ - Ensure that all complaints are dealt with in a sensitive/serious way.√√ - Take action against those found guilty.√√ - Any other relevant answer related to addressing sexual harassment. Identification (2) Strategy (2) Sub max (4) 4.1.3 Abusing work time/resources√√ Possible strategy: - The code of conduct/ethics should contain clear rules about abusing work time.√√ - Policy should be signed by all employees so that they are aware of it's content.√√ - Implement policies for employees to have restricted access to business assets.√√ - Employees should be monitored and work towards realistic goals to get work done.√√ - Structure working hours in such a way that employees have free/flexible time for personal matters.√√ - Create a culture of responsibility towards the business/Strengthen team spirit so that all employees feel responsible for what has to be achieved.√√ - Any other relevant answer related to addressing abuse of work time. Identification (2) Strategy (2) Sub max (4) Max (12) Copyright reserved Please turn over ### Page 19 Downloaded from hlayiso.com Business Studies 19 DBE/November 2014 NSC – Memorandum 4.2 Problem solving: - Process of analysing a situation√ to identify strategies to bring about change.√ - It is a process√ that requires creative/critical thinking.√ - Alternative solutions are generated/identified√ and critically evaluated.√ - Effective problem solving√ results in good decision making.√ - Problems can be solved by a group/team√ or an individual.√ - Various techniques may be used√, e.g. brainstorming, etc.√ - Any other relevant answer related to the meaning of problem solving. Max (6) 4.3. Grievance vs. Conflict Grievance Conflict - When an employee is unhappy/ - Clash of opinions/ideas/view has a problem/complaint in the points in the workplace.√√ workplace.√√ - It is when an individual/group has - Disagreement between two or a work related issue. √√ more parties in the workplace. √√ - Examples that can cause a - Examples that can cause conflict: grievance: Discrimination, unfair treatment, A lack of trust/miscommunication/ poor working conditions. √√ personality clashes/different values.√√ - Any other relevant answer related - Any other relevant answer related to the meaning of a grievance. to the meaning of conflict. Sub max (2) Sub max (2) Max (4) NOTE: 1. Both concepts must be clearly distinguished. 2. Mark Grievance or Conflict only, when the distinction is not clear. 4.4 Diversity in the workplace. - Refers to the variety of people employed√ based on age/race/gender/ ethnic groups/people with disabilities/material wealth/personalities/how employees see themselves and others.√ - All employees should be empowered/developed to improve personal performance√ which ultimately will improve the performance of the whole business.√ - Leads to creative ideas/different viewpoints,√ which support problem solving.√ - Leads to conflict situations√, if not properly managed.√ - Any other relevant answer related to diversity in the work place. Max (6) Copyright reserved Please turn over ### Page 20 Downloaded from hlayiso.com Business Studies 20 DBE/November 2014 NSC – Memorandum 4.5 Advantages of creative thinking in the work place - Starts/Ignites the process of problem solving,√ as there are usually more problems and not enough solutions.√ - Better/Unique/Unconventional ideas/solutions√ are generated.√ - May give businesses a competitive advantage√ if unusual/unique solutions/ ideas/strategies are implemented.√ - Complex business problems√ may be solved.√ - Productivity increases√ as management/employees may quickly generate multiple ideas that save time and money/Time is utilised more effectively.√ - Managers/employees have more confidence√ as they can live up to their full potential.√ - Managers will be better leaders√ as they will be able to handle/manage change(s) positively and creatively.√ - Managers/Employees can develop a completely new outlook,√ which may be applied to any task(s) they may do.√ - Leads to more positive attitudes√ as managers/employees feel that they have contributed towards problem solving/Improves motivation amongst staff members.√ - Managers/Employees have a feeling of great accomplishment√ and they will not resist/obstruct once they solved a problem/contributed towards the success of the business.√ - Management/Employees can keep up√ with fast changing technology.√ - Stimulates brain function of employees/managers, as they are continuously pushed out of their comfort zone√/improving the total well-being of employees.√ - Creativity may lead to new inventions√ which improves the general standard of living.√ - Any other relevant answer related to the benefits of creative thinking. Max (8) 4.6.1 Application of Nominal Group Technique (NGT) - Directors/management team can apply it to identify problems/generate solutions/make decisions.√√ - Team is divided into smaller groups/teams seated around a table.√√ - Problem(s) should be clearly defined/explained to the groups.√√ - Each team member/individual will silently brainstorm as many ideas as possible and writes it down.√√ - Each group/team member gives one of their solutions/ideas with a short explanation.√√ - Someone writes down these ideas on a big sheet of paper.√√ - No-one is allowed to criticise, but participants may ask questions to understand the suggested solution more clearly.√√ - Duplicated ideas are then eliminated.√√ - Individuals anonymously rank/rate suggestions from 1 upwards.√√ - Ratings are captured and points are totalled.√√ - Solutions may also be chosen by voting to determine the best idea(s).√√ - Each group presents the solution with the highest score/votes in their particular group.√√ - Any other relevant answer related to the application of the NGT. Max (6) Copyright reserved Please turn over ### Page 21 Downloaded from hlayiso.com Business Studies 21 DBE/November 2014 NSC – Memorandum 4.6.2 Nominal Group Technique (NGT) Advantages - Each team member/director√ has a chance to participate√ without interference from other team members.√ - Voting on the ideas√ is anonymous√ and may be more reliable/honest.√ - Any other relevant advantage of the NGT. Advantage (2) Explanation (1) Sub max (3) Disadvantages - Ideas/Inputs made by members√ may not converge√ and cannot lead to the same solution(s).√ - Suggestions√ may not be as creative√ as when a group throws ideas around.√ - It is time consuming,√ as each member√ must make a presentation.√ - Any relevant disadvantage of the NGT. NOTE: Mark the first ADVANTAGE and DISADVANTAGE only. Disadvantage (2) Explanation (1) Sub max (3) Max (6) 4.7 Unethical advertising and practical examples 4.7.1 False promises • To lure customers with promising guarantees or explanations that sound promising√, but is too good to be really true.√ • Example: high return on investments√ in times of unfavourable economic conditions.√ • Any other relevant discussion and example on false promises. Discussion (2) Example (2) Sub max (4) 4.7.2 Misleading packaging • Oversized packaging is used√ to make the product look bigger/better.√ • Example: A well-known chips manufacturer did not change the size of their packaging√, but reduced the contents from 30 g to 25 g.√ • Information on labels/package√ is not always correct/accurate.√ • Example: Benefits√ not scientifically proven√/States that it leads to weight loss√, when it is not proven. √ • Any other relevant discussion and example on misleading packaging. Discussion (2) Example (2) Sub max (4) Copyright reserved Please turn over ### Page 22 Downloaded from hlayiso.com Business Studies 22 DBE/November 2014 NSC – Memorandum 4.7.3 Bait and switch • Business attracts consumers by means of low-priced items√, then uses high- pressure sales tactics on site to get them to switch to a higher priced item.√ • Example: A supermarket may offer cooking oil below cost price√ but stock is sold out within the first hour.√ • Any other relevant discussion and example on bait and switch. Discussion (2) Example (2) Sub max (4) Max (12) [60] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1.1 4 4.1.2 4 4.1.3 4 4.2 6 4.3 4 4.4 6 4.5 8 4.6.1 6 4.6.2 6 4.7.1 4 4.7.2 4 4.7.3 4 TOTAL 60 Copyright reserved Please turn over Text truncated here. 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