# Business Studies Grade 12 P2 Eastern Cape Mock 2025 Memo > Grade 12 Business Studies Paper 2 memorandum from the Eastern Cape Mock Exam 2025 (English), 28 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/business-studies-p2-gr12-memo-sept2025-english-watermark/ad60bdfe-cada-4bac-94b3-793e39b6da74 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Language: English - Document type: Memorandum - Year: 2025 - Exam period: Eastern Cape Mock Exam - Paper: 2 - Curriculum: CAPS - Pages: 28 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 P2 Eastern Cape Mock 2025 Memo](https://www.hlayiso.com/library/business-studies-p2-gr12-memo-sept2025-english-watermark/ad60bdfe-cada-4bac-94b3-793e39b6da74) ## About this document Business Studies · Grade 12 · Eastern Cape Mock Exam · 2025 · English. Memorandum, 28 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 NATIONAL SENIOR CERTIFICATE GRADE 12 SEPTEMBER 2025 BUSINESS STUDIES P2 MARKING GUIDELINE MARKS: 150 This marking guideline consists of 28 pages. ### Page 2 2 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) NOTES TO MARKERS PREAMBLE The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking (b) Facilitate the moderation of candidates' scripts at the different levels (c) Streamline the marking process considering the broad spectrum of markers across the country (d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 1. Candidates’ responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 2. 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 guideline • Comes from another credible source • Original • A different approach is used NOTE: There is only ONE correct answer in SECTION A. 3. 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.) 4. The word ‘Sub-max.’ is used to facilitate the allocation of marks within a question or sub-question. 5. 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. 6. 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. 7. In an indirect question, the theory as well as the response must be relevant and related to the question. 8. Correct numbering of answers to questions or sub questions is recommended in SECTIONS 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. 9. No additional credit must be given for repetition of facts. Indicate with an ‘R’. Copyright reserved Please turn over ### Page 3 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 3 10. The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as follows: 10.1 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: ‘The autocratic leadership style provides strong leadership √ which makes new employees feel confident and safe.’ √ 10.2 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, for example, 'The autocratic leadership style provides strong leadership √ which makes new employees feel confident and safe √, as expectations/roles are clearly explained to avoid confusion’. √ NOTE: 1. The above could apply to ‘analyse’ as well. 2. Note the placing of the tick (√) in the allocation of marks. 11. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the marking guideline and the context of each question. Cognitive verbs, such as: 11.1 Give, name, state, outline, quote, motivate, recommend, suggest, advise (list not exhaustive) do not usually require much depth in candidates’ responses. Therefore, the mark allocation for each statement/answer appears at the end. 11.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, 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. 12. Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions that require one answer. Copyright reserved Please turn over ### Page 4 4 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 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. NOTE: 1. This applies only to questions where the number of facts is specified. 2. The above also applies to responses in SECTION C (where applicable). 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 to finalise alternative answers. 13.4 Use of the cognitive verbs and allocation of marks: 13.4.1 If the number of facts is 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 (two marks will be allocated in SECTION C) The ‘fact’ and ‘explanation’ are given separately in the marking guideline to facilitate mark allocation. 13.4.2 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 guideline. 13.5 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). 14. SECTION C 14.1 The breakdown of the mark allocation for the essays is as follows: Introduction Maximum: Content 32 Conclusion Insight 8 TOTAL 40 Copyright reserved Please turn over ### Page 5 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 5 14.2 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: Option 1: Only relevant facts: 2 marks (No ‘-S’) Where a candidate answers 50% or more (two to four sub-questions) 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: Some relevant facts: 1 mark (One ‘-S’) Where a candidate answers less than 50% (only one sub-question) 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: Some relevant facts: 1 mark (One ‘-S’) Where a candidate answers FOUR questions, but one/two/three sub-question with no relevant facts; one ‘-S’ appears in the left margin. Award a maximum of ONE (1) mark for synthesis. Option 4: No relevant facts: 0 marks (Two ‘-S’) Where a candidate answers less than 50% (only one sub-question) 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 one or two examples, not older than 2 two (2) years that are based on recent information, current 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. Copyright reserved Please turn over ### Page 6 6 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 14.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, -S and/or O’). 14.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guideline to each question. 14.5 Mark all relevant facts until the SUB-MAX./MAX. mark in a subsection has been attained. Write SUB-MAX./MAX. after maximum marks have been obtained but continue reading for originality “O”. 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 marking guideline. 14.10 14.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 14.10.2 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. 14.11 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. Copyright reserved Please turn over ### Page 7 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 7 SECTION A QUESTION 1 1.1 1.1.1 B √√ 1.1.2 C √√ 1.1.3 B √√ 1.1.4 C √√ 1.1.5 A √√ (5 x 2) (10) 1.2 1.2.1 average √√ 1.2.2 continuity √√ 1.2.3 social responsibility √√ 1.2.4 grievance √√ 1.2.5 cultural √√ (5 x 2) (10) 1.3 1.3.1 J √√ 1.3.2 H √√ 1.3.3 E √√ 1.3.4 B √√ 1.3.5 C √√ (5 x 2) (10) TOTAL SECTION A: 30 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Copyright reserved Please turn over ### Page 8 8 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) SECTION B Mark the FIRST TWO answers only. QUESTION 2: BUSINESS VENTURES 2.1 Examples of short-term insurance - Property insurance √ - Money in transit √ - Theft √ - Burglary √ - Fire √ - Any other relevant answer related to the examples of short-term insurance. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 2.2 Functions of the Johannesburg Securities Exchange/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/selling of shares. √√ - Venture capital market is made available on the open market. √√ - Strict investment rules ensure a disciplined/orderly market for securities. √√ - Mobilises the funds of insurance companies and other institutions. √√ - Raises primary capital by encouraging new investments listed on companies. √√ - Regulates the market for trading shares. √√ - Plans, researches and advises on investment possibilities. √√ - Ensures that the market operates in a transparent manner. √√ - Provides protection for investors through strict rules/legislation√√ - Encourages short-term investment as shares can be sold at any time. √√ - Facilitates electronic trading of shares/STRATE/ Channels financial resources into productive economic activities. √√ - Enhance job creation and increase economic growth/ development. √√ - Any other relevant answer related to the functions of Johannesburg Stock Exchange (JSE) Max. (6) 2.3 Leadership theory 2.3.1 Situational leadership theory √√ (2) 2.3.2 Leaders and followers’ leadership theory √√ (2) Copyright reserved Please turn over ### Page 9 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 9 2.4 Aspects that should be considered when designing a multimedia presentation - Start with the heading/text √ which forms the basis of the presentation. √ - Select the background √ to complement /enhance the text. √ - Choose images √ that may help to communicate the message. √ - Include or create graphics √ to assist the information which is conveyed. √ - Add special effects /sound/pictures/ animation √ to make it interesting for the audience. √ - Create hyperlink √ to allow quick access to other files/documents/video clips. √ - Use legible font size √ so that it is easy to see/read. √ - Keep slides/images/graphs/font simple √ by not mixing different styles/ colours. √ - Make sure there are no languages √ and spelling errors. √ - Use bright colours √ to increase visibility. √ - Structure information in a logical sequence √ so that the audience can easily follow the content of the presentation. √ - Limit the information on each slide by √ using key words and not full sentences. √ - Any other relevant answer related to aspects that should be considered when designing a multimedia presentation. Max. (6) 2.5 Visual aids from the scenario VISUAL AIDS MOTIVATIONS 1. Slide shows √√ He used slides that were projected on a screen. √ 2. Handouts/Flyers/Brochures √√ He also provided the audience with hard copies of his presentation at the beginning of the session. √ Sub-max. (4) Sub-max. (2) NOTE: 1. Mark the first TWO (2) only. 2. The answer does not have to be in tabular format. 3. Award marks for the type of visual aids even if the quotes were incomplete. 4. Do not award marks for the motivation if the visual aids were incorrectly identified. Max. (6) Copyright reserved Please turn over ### Page 10 10 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 2.6 Contribution of legislation to the success and/or failure of private company. SUCCESS FACTORS FAILURE FACTORS Legislation - Procedures to form a - Formation procedure is time private company √ have consuming, and expensive, √ been simplified by the as many legal documents new Companies Act. No. need to be prepared and 71 of 2008. √ submitted. √ - Limited liability allows for - High formation/establishment greater risk-taking √ expenses √require large start- which may lead to the up capital. √ growth of the business. √ - Annual audit of financial - Auditing of financial statements (if required) √ is statements (if required) costly. √ gives shareholders the - If a private company does not assurance √ that the comply with legislation, √ its business is being licence may be withdrawn by properly managed and the Companies and supports raising Intellectual Property additional capital. √ Commission (CIPC). √ - There is no longer a limit - Any other relevant answer on the number of related to the contribution of shareholders √ in private legislation to the failure of company. √ private company. - Personal lability of shareholders √ does not affect the company’s assets. √ - Any other relevant answer related to the contribution of legislation to the success of a private company. Sub-max. (2) Sub-max. (2) NOTE: 1 The answer does not have to be in tabular format. 2 The difference do not have to link but must be clear. 3 Award a maximum of TWO (2) marks if the differences are not clear/Mark either success or failure. Max. (4) Copyright reserved Please turn over ### Page 11 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 11 SUCCESS FACTORS FAILURE FACTORS Capital - Large amount of capital can - It cannot grow into very large be raised √ since there are business √ since it cannot no limits on the on the invite the public to buy number of shareholders. √ / shares. √ More capital can be raised - Restrictions on the by issuing a share to transferability of shares √ may shareholders. √ not attract financially strong - The company can access investors. √ long term capital √ and - A large amount of capital therefore has good long term cannot be obtained √ as the growth opportunities. √ capital contribution is only - Even though shares are not limited to private freely transferable √ large shareholders. √ private companies can raise - Any other relevant answer a considerable amount of related to the contribution of capital. capital to the failure of private company. - Any other relevant answer related to the contribution of capital to the success of a private company. Sub-max. (2) Sub-max. (2) NOTE: 1 The answer does not have to be in tabular format. 2 The differences do not have to link but must be clear. 3 Award a maximum of TWO (2) marks if the differences are not clear/ Mark either success or failure. Max. (4) Copyright reserved Please turn over ### Page 12 12 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 2.7 The role of a personal attitude in a successful leadership - Positive attitude releases leadership potential for personal growth. √√ - A leader's good attitude can influence the success of the business. √√ - Leaders must know their strengths and weaknesses to apply their leadership styles effectively. √√ - Great leaders understand that the right attitude will set the right atmosphere. √√ - Leaders' attitude may influence employees'/teams' thoughts/behaviour. √√ - Leaders should model the behaviour that they want to see in team members. √√ - Successful leaders consider the abilities/skills of team members to allocate tasks/roles effectively. √√ - Enthusiasm produces confidence in a leader and inspires them to work even harder. √√ - A positive attitude is critical for good leadership because good leaders will stay with the task regardless of difficulties/challenges. √√ - Successful employees and leaders have a constant desire to work and achieve personal/professional success. √√ - Leaders with a positive attitude know that there is always more to learn/space to grow. √√ - Any other relevant answer related to the role of personal attitude in a successful leadership. Max. (6) BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 4 2.2 6 2.3.1 2 2.3.2 2 2.4 6 2.5 6 2.6.1 4 2.6.2 4 2.7 6 TOTAL 40 Copyright reserved Please turn over ### Page 13 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 13 QUESTION 3: BUSINESS ROLES 3.1 Examples of professional behaviour - Respecting yourself and others, for example, being on time for work and appointments. √ - Using polite language with colleagues and clients. √ - Good use of work time and setting high standards in all areas of your job. √ - Keeping clients’ details confidential/Not using clients’ information for personal gain. √ - Treating all colleagues and clients the same. √ - Taking responsibility for your actions, for example, admitting your mistakes. √ - Exercising reasonable work morale and self-motivation. √ - Any other relevant answer related to the examples of professional behaviour. NOTE: Mark the first (4) only (4 x 1) (4) 3.2 Responsibilities of employees in promoting health and safety in the workplace. - Workers should take care of their own health and safety in the workplace. √√ - Co-operate and comply with the rules and procedures, e.g. wear prescribed safety clothing. √√ - Report unsafe/unhealthy working conditions to the relevant authorities/ management. √√ - Report accidents to the employer by the end of the shift. √√ - Use prescribed safety equipment. √√ - Inform the employer of any illness that may affect the ability to work. √√ - Any other relevant answer related to the responsibilities of employees in promoting health and safety in the workplace. Max. (6) 3.3 3.3.1 Socio economic issues - Unemployment √ - HIV/Aids √ Max. (2) Note: Mark the first TWO (2) only Copyright reserved Please turn over ### Page 14 14 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 3.3.2 The impact of corporate social investment /CSI on businesses Positives/Advantages - May attract experienced employees /increased the pool of skilled labour √ which could increase productivity. √ - Positive /improved image √ as the business looks after employees / conducts itself in a responsible way. √ - A business may have a competitive advantage √ resulting in good publicity /an improved reputation. √ - Promotes customer loyalty √ resulting in more sales. √ - CSI projects √ may be used as a marketing strategy to promote their products. √ - The business enjoys the goodwill /support √ of communities. √ - CSI projects promote teamwork √ within business. √ - CSI helps to attract investors √ because of increase profits/income. √ - Gives business tax advantages √ such as tax reduction /rebates. √ - Assist in solving socio-economic issues √ like poverty/unemployment etc.√ - Any other relevant answer related to the positive impact /advantages of CSI on businesses. AND/OR Negatives/Disadvantages - Business may not be supported /Customers may not buy their products /services √ resulting in a decrease in sales. √ - Small and medium enterprises find it difficult √ to implement CSI programmes. √ - Detailed reports must be drawn up, which can be time consuming. √ - Social spending reduces business /economic efficiency √ which makes it less competitive. √ - Social involvement is funded from business profits √ which could have been used to the benefit of customers /reduce prices. √ - CSI activities distract business focus √ from its core business functions. √ - Businesses find it difficult to adhere √ to legislations governing CSI. √ - It can increase financial risk, as programmes cost money √ and may impact negatively on profits. √ - It is difficult to accurately measure √ the effectiveness of social investment. √ - It is not easy to determine the exact needs of the communities, √ which may result in fruitless expenditure on CSI. √ - Most managers are not trained √ lack experience to handle social programmes. √ - Employees may spend more time working on CSI projects √ instead of focusing on their core duties. √ (6) Copyright reserved Please turn over ### Page 15 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 15 - Providing goods/services that meet the needs of consumers √ is according to some stakeholders, already socially responsible. √ - Shareholders may receive less dividends, as some profits are spent on CSI. √ - Some shareholders/stakeholders might withdraw their support from the business √ as they feel that social issues should be government responsibility. √ - Any other relevant answer related to the negative impact of CSI on businesses Max. (6) 3.4 Stages of development. STAGES OF DEVELOPMENT MOTIVATIONS 1. Storming Stage √√ - Conflict occurs among team members √ 2. Performing/Working as a team - The leader trusts the team and avoids towards a goal √√ interfering in the operations of the team. √ Any other relevant answer related to - Any other relevant answer related to the stages of development. motivation of stages of development. Sub-max. (4) Sub-max. (2) NOTE: 1. Mark the first TWO (2) only. 2. Award marks for stages of development even if the motivation is incomplete. 3. Do not award marks for the motivation if stages of development were incorrectly identified. Max. (6) 3.5 Importance of team dynamic theories in improving team performance. - Team dynamic theories explain √ how effective teams work/operate. √ - Businesses are able to allocate tasks √ according to the roles of team members. √ - Team members can maximise performance √ as tasks are allocated according to their abilities /skills /attributes /personalities. √ - Team members with similar strengths may compete for team tasks/ responsibilities √ that best suit their abilities/competencies. √ - Theories assist team leaders to understand the personality types of team members √ so that tasks are assigned more effectively. √ - Conflict may be minimised √ when team members perform different roles. √ - Any other relevant answer related to the importance of team dynamic theories in improving team performance. Max. (6) Copyright reserved Please turn over ### Page 16 16 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 3.6 Difference between problem solving and decision making. PROBLEM SOLVING DECISION MAKING - Problem solving can be solved by - It is often done by one person /a a group /team √ which makes the member of senior management √ process consultative. √ who makes the process authoritarian. √ - Alternative solutions are - Various alternatives are considered generated √ and critically √ before deciding on the best one. √ evaluated. √ - Process of analysing a situation √ - It is part of the problem-solving to identify strategies to bring cycle √ as decisions need to be about change. √ taken in each step. √ - Any other relevant answer - Any other relevant answer related to related to problem -solving. decision making. Sub-max. (2) Sub-max. (2) NOTE: 1. The answer does not have to be in tabular format. 2. The differences do not have to link but must be clear. 3. Award a minimum of TWO (2) if the differences are not clear/ Mark either problem solving or decision-making. Max. (4) 3.7 Ways in which businesses can create an environment that promotes creative thinking. Businesses must: - Encourage alternative ways of working/doing things. √√ - Encourage staff to come up with new ideas/opinions/solutions. √√ - Respond enthusiastically to all ideas and never let anyone feel less important. √√ - Place suggestion boxes around the workplace and keep communication channels open for new ideas. √√ - Emphasise the importance of creative thinking to ensure that all staff knows that management wants to hear their ideas. √√ - Make time for brainstorming sessions to generate new ideas, e.g. regular workshops/generate more ideas/build on one another's ideas. √√ - 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. √√ - Any other relevant answer related to ways in which businesses can create environment that promotes creative thinking in the workplace. Max. (6) [40] Copyright reserved Please turn over ### Page 17 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 17 BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 6 3.3.1 2 3.3.2 6 3.4.1 6 3.5 6 3.6 4 3.7 6 TOTAL 40 Copyright reserved Please turn over ### Page 18 18 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURES 4.1 Forms of investments - Government/RSA Retail Savings bonds √ - Unit trusts √ - Shares √ - Fixed deposits √ (4 x 1) (4) 4.2 Characteristics of non-profit companies - The main aim of NPC ‘s is to provide service and not to make a profit. √√ - They are funded by donations and foreign funding. √√ - The name of the company must end with the letters/abbreviation NPCs. √√ - All profit must be used for primary objectives of non-profit company. √√ - It must prepare a Memorandum of Incorporation to register the company. √√ - Qualifying NPCs are granted tax -exempt status. √√ - Any other relevant answer related to the characteristics of non-profit companies. Max. (6) 4.3 4.3.1 Factors to be considered when making an investment decision - Return on investment √ - Inflation rate √ (2) 4.3.2 Venture Capital /Business Venture - Investors make funds available to prospective business √ to start a business, and they become co-owners of the business. √ - An investor must familiarize himself/herself with the market in which the business will be operating √ before making his/her investment. √ - Investing in an existing business may be rewarding to an investor √ provided that the investor did some research on the prevailing market conditions. √ - Any other answer related to the explanation of venture capital/ business venture. Max. (4) 4.4 Situations in which laissez-faire /Free reign can be applied. - The leader is occupied with more important aspects of the business and delegation of duties, may improve the efficiency of the organization. √√ - Employees who are experienced in their chosen field, are often trusted/ relied on by the leader to make responsible decisions. √√ - Leadership potential exists amongst employees and that they need opportunities to acquire additional skills. √√ - Employees have acquired a greater level of knowledge/skills on a particular subject matter than what the leader has acquired. √√ - Any relevant answer related to the situations in which laissez-faire/ Free reign can be applied. Max. (4) Copyright reserved Please turn over ### Page 19 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 19 BUSINESS ROLES 4.5 Economic rights of employees in the workplace. - Free from forced labour. √ - Free to accept/choose work. √ - Fair wages/Equal pay/Equal pay for work of equal value. - Reasonable limitation of working hours. √ - Right to participate in a legal strike. √ - Fair labour practice. √ - Safe/Health working conditions. √ - Join/form trade unions. √ - Any other relevant answer related to the economic rights of employees in the workplace NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 4.6 Problem solving technique 4.6.1 Force Field Analysis √√ (2) 4.6.2 Ways in which business can apply Force Field Analysis - Describe the current situation or problem and the desired situation √ and write it in the middle or on top for everyone to see. √ - List all driving/pros and restraining/cons forces √ that will support and resist change. √ - Allocate a score to each force using a numerical scale, √ where 1 is weak and 5 is strong. √ - Weigh up the positives and negatives, √ then decide if the project is viable. - Choose the force with the highest score √ as the solution. √ - If the project is viable, √ ways to increase the forces for change. √ - Identify priorities √ and develop an action plan. √ - Any other relevant answer related to ways in which business can apply Force Field Analysis. Max. (4) 4.7 Ways in which business can contribute time and effort in improving the well-being of communities. - Businesses should aim to improve the general quality of life of their community, √ for example, by offering skills development courses and bursaries. √ - Make sure that the product they supply √ does not harm consumers and/or the environment. √ - Refrain from engaging in illegal or harmful practices √ such as employing children under the legal age or selling illegal substances. √ - Exercise ethically correct business practices, √ for example, not engaging in unethical advertising. √ - Donate money and/or time √ to community projects. √ - Provide needed facilities for sport and recreational purposes √ to promote social √ cohesion and healthy activities. √ - Any other relevant answer related to the ways in which the business can contribute time and effort in improving the well-being of their communities. Max. (6) Copyright reserved Please turn over ### Page 20 20 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 4.8 Benefits of diversity in the workplace - Workforce diversity improves the ability of businesses to solve problems/ improve/cultivate diverse markets. √√ - Employees value each other’ s diversity and learn to connect /communicate across line of differences. √√ - Diversity in the workplace improves morale /motivation. √√ - Employees demonstrate greater loyalty to businesses because they feel respected /accepted /understood. √√ - Diversified workforce can give businesses a competitive advantage, as they can render better services. √√ - Being respectful of differences /demonstrate diversity makes good business sense/ improves profitability. √√ - Diverse businesses ensure that their policies /practices empower every employee to perform at his /her full potential. √√ - Stakeholders increasingly evaluate businesses on how they manage diversity in the workplace. √√ - Employees from different backgrounds can bring different perspective to businesses. √√ - A diversified workforce stimulates debate on new /improved ways of getting things done. √√ - Employees represent various groups and are therefore better able to recognise customer needs /satisfy customers. √√ - Business with diverse workforce is more likely to have a good public image and attract more customer. √√ - Any other relevant answer related to the benefits of diversity in the workplace. Max. (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2 6 4.3.1 2 4.3.2 4 4.4 4 4.5 4 4.6.1 2 4.6.2 4 4.7 6 4.8 4 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over ### Page 21 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 21 SECTION C Mark the FIRST question only. QUESTION 5: BUSINESS VENTURES (INVESTMENT: INSURANCE) 5.1 Introduction - Sound knowledge of the differences between over insurance and under insurance enable the businesses to understand the market value of the assets that they have covered. √ - Businesses need to do research as compulsory insurances are required by law. √ - Businesses that take insurance cover for their businesses are better off than those who prefer to bear their own risks. √ - The principles of insurance, form the basis of an insurance contract between the insurer and the insured. √ - Any relevant answer related to the introduction of the differences between over and under insurance, types of compulsory insurance, the advantages of insurance and indemnity as a principle of insurance (Any 2 x 1) (2) 5.2 Difference between over and under insurance Over insurance Under insurance - The insured insures assets/ - The insured insures assets/ possessions for more than the possessions for less than the market market value. √√ value. √√ - The insurer will apply the - The insurer will apply the average reinstatement clause to clause should the insured submit a compensate for losses claim for losses/damages. √√ incurred. √√ - Compensation by the insurer - The insured will be compensated will not be more than the partly/proportionally for damages/ market value of the items losses incurred. √√ damaged/loss. √√ - The insurer replace/repair the - The insurer will pay the insured cash damages/loss incurred by the for damages or losses incurred. √√ insured. √√ - Any other relevant answer - Any other relevant answer related to related to over insurance. under insurance. Sub-max. (4) Sub-max. (4) NOTE: 1. Answer does not have to be in tabular format. 2. The differences do not have to link but must be clear. 3. Award a minimum of FOUR (4) if the differences are not clear /Mark either over insurance or under insurance. Max. (8) Copyright reserved Please turn over ### Page 22 22 BUSINESS STUDIES P2 (EC/SEPTEMBER 2025) 5.3 Types of compulsory insurance: Road accident fund (RAF) - The RAF/RABS is responsible for providing appropriate cover √ to all road users within the borders of South Africa. √ - The Fund compensates a person/ people in accordance with the RAF/RABS Act √ for loss or damage wrongfully caused by driving a motor vehicle. √ - The RAF/RABS indemnifies the wrongdoer from liability √ to any victim of a car accident. √ - Contributions to the RAF/RABS are collected by way of a levy √ on fuel used for road transportation. √ - The cover extends to all members of society including, pedestrians, owners, and drivers of motor vehicles, √ as well as their passengers. √ - The social insurance cover, however, does not extend to drivers of motor vehicles √ that are found to be negligent. √ - In the event of an accident, the RAF/RABS pays the medical and related services costs required √ to restore accident victims to health √ - Accident victims/their families are compensated for the loss of income √ as a result of the accident. √ - Compensation is also paid by RAF/RABS for pain and suffering/loss of amenities of life/disability and disfigurement/funeral costs √ to families in circumstances where the victim of the accident sustains fatal injuries. √ - The amount that the victim of an accident may claim for loss of income √ is limited by legislation. √ - The RAF/RABS provides a social security safety net to the country and economy √ by making available compulsory social insurance cover to all South African road users. √ - Any other answer related to Road Accident Fund as a type of compulsory insurance Sub-max. (8) Unemployment Insurance Fund (UIF) - The Unemployment Insurance Fund (UIF) was established to assist employees with financial aid should they become unemployed due √ to termination of the employment contract by the employer. √ - The UIF provided financial assistance for a limited period to the dependents of a deceased employee √ who was registered with the UIF. √ - The employer is required to register their employees with the UIF √ and to pay the levy of 2% of the employee’s salary/remuneration to SARS every month. √ - The employee contributes 1% of his/her salary/remuneration towards the UIF. - The employer contributes an additional 1% of the employee’s salary/ remuneration √ towards the UIF fund. √ - The additional contributions of 1% by the employer ensures that the payment to the employee increases, √ should he/she become unemployed. √ - Employees must work at least 24 hours a month √ before they are required to contribute towards the UIF fund. √ Copyright reserved Please turn over ### Page 23 (EC/SEPTEMBER 2025) BUSINESS STUDIES P2 23 - Unemployed employees must register with the Department of Labour, √ and all valid claims will be processed by the UIF. √ - Unemployed workers may not claim from the UIF √ if they resign or gets dismissed from their jobs. √ - Any other related answer related to Unemployment Insurance Fund as a type of compulsory insurance. Sub-max. (8) Max. (16) 5.4 Advantages of insurance - Transfers the risk from the business/insured √ to an insurance company/ insurer. √ - Transfer of risk is subject to the terms and conditions √ of the insurance contract. √ - Protects businesses against √ dishonest employees. √ - Protects businesses against losses √ due to death of a debtor. √ - Protects the business against theft/loss of stock and/or damages caused by natural disasters √ such as floods, storm damage, √ - Businesses assets, e.g. vehicles/equipment/buildings need to be insured √ against damage and/or theft. √ - Protects businesses from claims made by members of the public √ for damages that the business is responsible for. √ - Businesses will be compensated for insurable losses, √ e.g. destruction of property through fire. √ - Life insurance can be taken on the life of partners in a partnership √ to prevent unexpected loss of capital. √ - Should the services of key personnel be lost due to accidents/death, √ the proceeds of an insurance policy can be paid out to the business / beneficiaries. √ - Replacement costs for damaged machinery/equipment are very high, √ therefore insurance can reduce/cover such costs. √ - Any other relevant answer related to the importance of insurance. Max. (12) 5.5 Indemnification/Indemnity as a principle of insurance - Usually applies to short term insurance, as the insured is compensated for specified/proven harm/loss. √√ - Insurer agrees to compensate the insured for damages/losses specified in insurance contract, in return for premiums paid by the insured to the insurer. √√ - Pay-outs from insurance companies/insurer will only be made; if there is proof that the specified ed event took place/if the insured can prove the amount of the loss/ damage. √√ - The amount of indemnification/compensation is limited to the amount of provable loss/damage, even if the amount in the policy/insurance contract is higher. √√ - The insured must be placed in the same position. √ as before the occurrence of the loss/damage. /The insured may not profit from insurance. √√ - Any other relevant answer related to indemnification/indemnity as a principle of insurance. Max. (10) Copyright reserved Please turn over Text truncated here. 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