# Business Studies Grade 12 P1 GP Prelim 2023 QP (Eng)

> Grade 12 Business Studies Paper 1 question paper from the GP Prelim 2023 (English), 10 pages. Read online or download the free PDF.

- Page: https://www.hlayiso.com/library/business-studies-p1-english-qp/6cac28d3-2dbb-4cb1-b848-39d1553435d8
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Language: English
- Document type: Question paper
- Year: 2023
- Exam period: GP Prelim
- Paper: 1
- Curriculum: CAPS
- Pages: 10

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## About this document

Business Studies · Grade 12 · GP Prelim · 2023 · English. Question paper, 10 pages. Read online or download the PDF.

Read it free online on the page above; download the PDF from there.

## Matching paper and memo

- [Business Studies P1 (English) Memo](https://www.hlayiso.com/library/business-studies-p1-english-memo/16d9a5e1-aff3-445d-877e-c370af3c4dd5) — Memo · 2023 · Eng

## Document text

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### Page 1

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PREPARATORY EXAMINATION
             2023

             10721

        BUSINESS STUDIES

           (PAPER 1)

                           TIME: 2 hours

                           MARKS: 150

                           10 pages

                                           P.T.O.

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                                                        BUSINESS STUDIES                   2
                                                        (PAPER 1)      10721/23

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully before answering the questions.

1. This question paper consists of THREE sections and covers TWO main topics.

    SECTION A:       COMPULSORY
    SECTION B:       Consists of THREE questions.
                     Answer any TWO of the three questions in this section.
    SECTION C:       Consists of TWO questions.
                     Answer any ONE of the two questions in this section.

2. Read the instructions for each question carefully and take note of what is required.

    Note that ONLY the answers to the first TWO questions selected in SECTION B
    and the answers to the FIRST question selected in SECTION C will be marked.

3. Number the answers correctly according to the numbering system used in this
   question paper. NO marks will be awarded for answers that are numbered incorrectly.

4. Except where other instructions are given, answers must be written in full sentences.

5. Use the mark allocation and the nature of each question to determine the length and
   depth of an answer.

6. Use the table below as a guide for mark and time allocation when answering each
   question.

                                                                                    TIME
                      SECTION                        QUESTION         MARKS
                                                                                  (minutes)
    A:   Objective-type questions
                                                          1                 30        20
         COMPULSORY

    B:   THREE direct/indirect-type questions             2                 40
         CHOICE:                                          3                 40        70
         Answer any TWO.                                  4                 40

    C:   TWO essay-type questions                         5                 40
         CHOICE:                                                                      30
                                                          6                 40
         Answer any ONE.

                       TOTAL                                            150          120

7. Begin the answer to EACH question on a NEW page, e.g. QUESTION 1 – new
   page, QUESTION 2 – new page.

8. You may use a non-programmable calculator.

9. Write neatly and legibly.

                                                                                           P.T.O.

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                                                        BUSINESS STUDIES                 3
                                                        (PAPER 1)      10721/23

SECTION A (COMPULSORY)

QUESTION 1

1.1   Various options are provided as possible answers to the following questions.
      Choose the correct answer and write only the letter (A – D) next to the question
      numbers (1.1.1 to 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 D.

      1.1.1   Sam is entitled to 6 weeks of paid … leave over a period of 36 months
              according to the Basic Conditions of Employment Act (BCEA), 1997
              (Act 75 of 1997).

              A   annual
              B   maternity
              C   sick
              D   family responsibility

      1.1.2   The employees of Trendy Trading render effective customer service.
              This is an example of a(n) … in the SWOT analysis.

              A   strength
              B   weakness
              C   opportunity
              D   threat

      1.1.3. Tom’s Paints operate in the … sector as they specialise in the
             manufacturing of paint.

              A   primary
              B   economic
              C   secondary
              D   tertiary

      1.1.4   This benefit is compulsory by law for employees:

              A   Housing allowance
              B   Unemployment Insurance fund
              C   Medical aid
              D   Car allowance

      1.1.5   The … business function is responsible for promoting the image of the
              business.

              A   administration
              B   marketing
              C   purchasing
              D   public relations
                                                                               (5 x 2)   (10)

                                                                                         P.T.O.

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                                                        BUSINESS STUDIES                   4
                                                        (PAPER 1)      10721/23

1.2   Complete the following statements by using the word(s) provided in the list
      below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the
      ANSWER BOOK.

      purchasing; induction; National Credit Act; internal; internship; production;
      training; Consumer Protection Act; learnership; external

      1.2.1   The … forces businesses to disclose more information about their
              products and processes.

      1.2.2   Practical training opportunities that can lead to a recognised
              occupational qualification, is known as a/an …

      1.2.3   Lazi Constructions used the … recruitment method because existing
              employees already understand how the business operates.

      1.2.4   The … manager ensures that there are no stoppages due to stock
              shortages.

      1.2.5   An effective … programme allows employees to have an overview of
              the business.
                                                                           (5 x 2) (10)

                                                                                           P.T.O.

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                                                          BUSINESS STUDIES                  5
                                                          (PAPER 1)      10721/23

1.3   Choose a description from COLUMN B that matches a term in COLUMN A.
      Write only the letter (A – J) next to the question numbers (1.3.1 to 1.3.5) in the
      ANSWER BOOK, e.g.1.3.6 K.

                   COLUMN A                                     COLUMN B
      1.3.1 Placement procedure               A   promotes equal opportunities and fair
                                                  treatment in the workplace
      1.3.2 Quality
                                              B   adding new, unrelated products to
      1.3.3 National Skills Development           existing products which may appeal
            Strategy                              to existing customers

      1.3.4 Horizontal diversification        C   aims at achieving higher employment
                                                  levels and reduced levels of poverty
      1.3.5 Labour Relations Act
                                              D   determines the employee’s skills by
                                                  conducting psychometric tests

                                              E   measuring performance and taking
                                                  corrective measures

                                              F   adding new, unrelated products to
                                                  existing products which may appeal
                                                  to new groups of customers

                                              G determines fair assessment criteria
                                                on which selection will be based

                                              H   provides for the participation of
                                                  government and organised labour

                                              I   promotes workplace forums to
                                                  accommodate employees in decision
                                                  making

                                              J   measured against specific criteria
                                                  such as physical appearance
                                                                                  (5 x 2)   (10)

                                                                    TOTAL SECTION A:        30

                                                                                            P.T.O.

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                                                        BUSINESS STUDIES                6
                                                        (PAPER 1)      10721/23

SECTION B

Answer ANY TWO questions in this section.

NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose.
      The answer to EACH question must start on a NEW page, e.g. QUESTION 2
      on a NEW page, QUESTION 3 on a NEW page.

QUESTION 2: BUSINESS ENVIRONMENTS

2.1   Name THREE types of integration strategies.                                        (3)

2.2   Outline any TWO consumer rights as stipulated in the National Credit Act (NCA),
      2005 (Act 34 of 2005).                                                             (4)

2.3   Read the scenario below and answer the questions that follow.

                                 MAGS COMPUTERS (MC)

      Mags Computers buys components from IMM International, which has a slow
      delivery schedule. The employees of MC lack the relevant skills necessary to
      manufacture quality computers. MC had to borrow money from Smart Bank at a
      high-interest rate to improve their products.

      2.3.1   Quote THREE challenges of MC from the scenario above.                      (3)

      2.3.2   Classify MC’s challenges according to the THREE business
              environments.                                                              (3)

      2.3.3   State the extent of control that MC has over each business environment
              named in QUESTION 2.3.2                                                    (3)

              Use the table below as a GUIDE to answer QUESTIONS 2.3.1 to 2.3.3.

              CHALLENGES BUSINESS ENVIRONMENTS EXTENT OF CONTROL
                 2.3.1            2.3.2               2.3.3
              1.
              2.
              3.

2.4   Explain any TWO types of defensive strategies.                                     (6)

2.5   Discuss the advantages of diversification strategies.                              (6)

                                                                                        P.T.O.

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                                                          BUSINESS STUDIES                7
                                                          (PAPER 1)      10721/23

2.6   Read the scenario below and answer the question that follows.

                             ZANADO WHOLESALERS (ZW)

      The management of Zanado Wholesalers sold some of their shares to their
      black employees. ZW outsources its services to suppliers that are BBBEE
      compliant.

      Identify TWO pillars of the Broad-Based Black Economic Empowerment Act
      (BBBEE), 2003 (Act 53 of 2003) implemented by ZW. Motivate your answer by
      quoting from the scenario above.

      Use the table below as a GUIDE to answer QUESTION 2.6.

                    BBBEE PILLARS                              MOTIVATIONS
      1.
      2.                                                                                   (6)

2.7   Advise businesses on the role of SETAs in supporting the Skills Development
      Act (SDA), 1998 (Act 97 of 1998).                                                    (6)
                                                                                          [40]

QUESTION 3: BUSINESS OPERATIONS

3.1   List any TWO sources of external recruitment.                                        (2)

3.2   Outline the benefits of induction for businesses.                                    (6)

3.3   Read the scenario below and answer the questions that follow.

                                BRIGHT PUBLISHERS (BP)

      The management of Bright Publishers terminated the employment contracts of
      certain workers due to restructuring. BP ensures that employees understand
      their roles/responsibilities. John, the supervisor, decided to resign voluntarily
      for better job opportunities.

      3.3.1   Quote TWO reasons for the termination of an employment contract,
              from the scenario above.                                                     (2)

      3.3.2   Discuss other reasons for the termination of an employment contract.         (4)

3.4   Explain TWO salary determination methods.                                            (6)

3.5   Outline the benefits of a good quality management system.                            (4)

                                                                                          P.T.O.

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                                                         BUSINESS STUDIES              8
                                                         (PAPER 1)      10721/23

3.6   Read the scenario below and answer the question that follows.

                          SOLARWISE MANUFACTURERS (SM)

      Solarwise Manufacturers checks the quality of their solar panels to meet the
      required standards, during and after the production process. The Chief
      Executive Officer (CEO) of SM uses techniques and tools to improve the quality
      of their products.

      Identify TWO quality concepts that are applicable to SM. Motivate your answer
      by quoting from the scenario above.

      Use the table below as a GUIDE to answer QUESTION 3.6.

               QUALITY CONCEPTS                               MOTIVATIONS
      1.
      2.
                                                                                           (6)

3.7   Discuss the impact of total quality management (TQM) if poorly implemented by
      businesses.                                                                          (4)

3.8   Advise businesses on the quality indicators of the financial function.            (6)
                                                                                       [40]

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS

4.1   Outline the rights of employees in terms of the Labour Relations Act (LRA),
      1995 (Act 66 of 1995).                                                               (6)

4.2   Read the scenario below and answer the questions that follow.

                               MOHAMMED BUILDERS (MB)

      Mohammed Builders follows safety measures so that they are protected from
      financial burden should an accident occur in the workplace.

      4.2.1   Identify the Act that is applicable to the scenario above.                   (2)

      4.2.2   Discuss the advantages of the Act identified in QUESTION 4.2.1.              (4)

4.3   Explain how businesses could apply the following forces of the Porter's Five
      Forces model to analyse their position in the market environment:

      4.3.1   Power of competitors/Competitive rivalry                                     (4)

      4.3.2   Threat of substitution/substitutes                                           (4)
                                                                                       P.T.O.

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                                                          BUSINESS STUDIES                 9
                                                          (PAPER 1)      10721/23

BUSINESSES OPERATIONS

4.4   Name any TWO aspects that should be included in an employment contract.                  (2)

4.5   Read the scenario below and answer the questions that follow.

                                 ICONIC ENTERPRISES (IE)

      Iconic Enterprises advertised a vacancy for an administrator in the local
      newspaper. The human resource manager sorted the application documents
      according to the selection criteria. Specific responsibilities of the new position
      were outlined. The manager invited the shortlisted candidates to attend the
      interview.

      4.5.1   Quote TWO aspects of the selection procedure that IE applied in the
              scenario above.                                                                  (2)

      4.5.2   Explain the role of the interviewer during the interview.                        (6)

4.6   Discuss the roles of quality circles as part of continuous improvement of
      processes and systems.                                                                   (4)

4.7   Advise businesses on the advantages of continuous skills development as a
      TQM element of large businesses.                                                      (6)
                                                                                           [40]

                                                                     TOTAL SECTION B:          80

                                                                                           P.T.O.

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                                                          BUSINESS STUDIES                   10
                                                          (PAPER 1)      10721/23

SECTION C

Answer ANY ONE question in this section.

NOTE:    Clearly indicate the QUESTION NUMBER of the chosen question. The answer to
         the question must start on a NEW page, e.g. QUESTION 5 on a NEW page OR
         QUESTION 6 on a NEW page.

QUESTION 5: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES)

Successful businesses develop and evaluate suitable strategies to deal with identified
challenges in business environments. Many businesses use intensive strategies to
improve the performance of existing products in the market. They also apply the PESTLE
factors to identify challenges in the macro environment and find ways to deal with these
challenges.

Write an essay on business strategies in which you include the following aspects:

•    Outline the steps in strategy evaluation.
•    Explain the advantages of intensive strategies.
•    Discuss how the following PESTLE factors pose challenges to businesses:
     o     Technological
     o     Economical
     o     Legal
•    Recommend ways in which businesses can deal with the challenges posed by the
     PESTLE factors above.                                                                    [40]

QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCE FUNCTION)

    Many businesses follow the correct recruitment procedure to find suitable and
    qualified employees. Businesses compile a job analysis to determine competencies
    required for the job. They also offer attractive fringe benefits as additions to
    employees’ remuneration. The management of the human resource function
    should be mindful of the implications of the Employment Equity Act (EEA), 1998
    (Act 55 of 1998) when making appointments.

Write an essay on the human resource function in which you include the following
aspects:

•    Outline the recruitment procedure as a human resource activity.
•    Explain the TWO components of a job analysis.
•    Discuss the impact of fringe benefits on businesses.
•    Advise the management of the human resources function on the implications of the
     Employment Equity Act on their operations.                                               [40]

                                                                      TOTAL SECTION C:            40

                                                                                    TOTAL:    150
                                              END

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