# Business Studies Grade 12 EC Prelim 2023 QP (Eng)

> Grade 12 Business Studies question paper from the EC Prelim 2023 (English), 9 pages. Read online or get the free PDF download, memo linked when available.

- Page: https://www.hlayiso.com/library/business-studiesp1-qp-sept2023-english/4bf7a111-a128-48a4-8418-fa5d652c4a5c
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 12
- Language: English
- Document type: Question paper
- Year: 2023
- Exam period: EC Prelim
- Curriculum: CAPS
- Pages: 9

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## About this document

Business Studies · Grade 12 · EC Prelim · 2023 · English. Question paper, 9 pages. Read online or download the PDF.

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## Document text

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                         NATIONAL
                    SENIOR CERTIFICATE

                            GRADE 12

                     SEPTEMBER 2023

                   BUSINESS STUDIES P1

MARKS:   150

TIME:    2 hours

                    This question paper consists of 9 pages.

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2                                    BUSINESS STUDIES P1                   (EC/SEPTEMBER 2023)

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 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
              COMPULSORY                             1             30                 20

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

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

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(EC/SEPTEMBER 2023)             BUSINESS STUDIES P1                                        3

SECTION A (COMPULSORY)

QUESTION 1

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

        1.1.1    This Act provides for the right of employees to join a trade union of
                 their choice:

                 A     Basic Conditions of Employment (BCEA), 1997 (Act 75 of
                       1997)
                 B     Labour Relations Act (LRA), 1995 (Act 66 of 1995)
                 C     Employment Equity Act (EEA), 1998 (Act 55 of 1998)
                 D     Consumer Protection Act (CPA), 2008 (Act 68 of 2008)

        1.1.2    Andile Garden Services could easily acquire a trading licence.
                 This refers to the … as a force of the Porter’s Five Forces model.

                 A     barrier of new entrants to the market
                 B     threat of substitution
                 C     power of competitors
                 D     power of buyers

        1.1.3    Peak Textiles operates in the … sector as they specialise in the
                 manufacturing of clothing.

                 A     primary
                 B     tertiary
                 C     economic
                 D     secondary

        1.1.4    This benefit is by law compulsory for employees to contribute 1%
                 of their basic salary:

                 A     Unemployment Insurance Fund
                 B     Funeral benefits
                 C     Housing allowance
                 D     Clothing allowance

        1.1.5    Ockert Manufacturers applied quality … when they measured the
                 total output of each department against specified standards.

                 A     control
                 B     assurance
                 C     performance
                 D     management
                                                                               (5 x 2)   (10)

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4                                   BUSINESS STUDIES P1                    (EC/SEPTEMBER 2023)

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.

          interview; quality; BEE; micro; BBBEE Act; induction programme;
                 do; market; total quality management; act as needed

        1.2.1   Global Trading complied with … when they provided previously
                disadvantage employees with learning programmes.

        1.2.2   Crisp Clothing has full control over the … environment.

        1.2.3   The purpose of an … is to evaluate the personal characteristics of the
                applicant.

        1.2.4   Mega Bakeries implements change on a large scale after seeing that
                the change was successful. This is known as the … step in the PDCA
                model.

        1.2.5   Viwe Manufacturer uses … to continuously improve on processes and
                systems in order to satisfy customers’ needs beyond their
                expectations.                                              (5 x 2)       (10)

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(EC/SEPTEMBER 2023)              BUSINESS STUDIES P1                                       5

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, for example 1.3.6 K.

               COLUMN A                                COLUMN B
      1.3.1    Privacy and            A    written agreement specifying the use of
               confidentiality             property for a certain period

      1.3.2     Divestiture           B    uses pricing techniques to ensure a
                                           competitive advantage

      1.3.3     Employment            C    consumers have the right to be protected
                contract                   in lay-bye agreements

      1.3.4     Piecemeal             D    selling all assets with the aim of closing
                                           down the business

      1.3.5     Marketing function    E    employees are paid for the number of
                                           items produced in a month

                                      F    consumers have the right to stop
                                           unwanted direct marketing

                                      G    written agreement specifying terms and
                                           conditions to perform duties

                                      H    used to buy raw material in bulk at lower
                                           prices

                                      I    selling some assets that are no longer
                                           profitable

                                      J    employees are paid for the number of
                                           hours worked
                                                                         (5 x 2)         (10)

                                                               TOTAL SECTION A:           30

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6                                   BUSINESS STUDIES P1                     (EC/SEPTEMBER 2023)

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 any TWO types of diversification strategies.                                 (2)

2.2       Outline the advantages of intensive strategies.                                   (6)

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

                               YUKI MANUFACTURERS (YM)

          Yuki Manufacturers specialises in the manufacturing of yoghurt and want
          to expand their activities. YM combined with Dairy Farm, their supplier of
          milk. They need to evaluate if this strategy has been successful.

          2.3.1   Identify the type of integration strategy used by YM in the scenario
                  above.                                                                    (2)

          2.3.2   Describe the steps in strategy evaluation.                                (6)

2.4       Explain the purpose of Compensation for Occupational Injuries and
          Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997).                            (6)

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

                                  NICO ENTERPRISE (NE)

          Nico Enterprise is a large retail business that provides a variety of
          products. The management prepared an employment equity plan in
          consultation with employees. They also implemented affirmative action
          measures promoting diversity in the workplace.

          2.5.1   Quote TWO ways in which NE complied with the Employment
                  Equity Act, 1998 (Act 55 of 1998) from the scenario above.                (2)

          2.5.2   Evaluate the impact of the Employment Equity Act,1998 (Act 55
                  of 1998) on businesses.                                                   (6)

2.6       Explain the penalties that businesses may face for non-compliance with
          the National Credit Act (NCA), 2005 (Act 34 of 2005).                             (6)

2.7       Advise businesses on how they could apply power of the suppliers as one
          of the forces of the Porter’s Five Forces model to analyse their position in
          the market environment.                                                          (4)
                                                                                          [40]

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(EC/SEPTEMBER 2023)             BUSINESS STUDIES P1                                      7

QUESTION 3: BUSINESS OPERATIONS

3.1    Name any THREE sources of external recruitment.                                  (3)

3.2    Outline the placement procedure as a human resources activity.                   (4)

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

                                 HOPE LOGISTICS (HL)

       Hope Logistics advertised a vacancy for a manager on their business
       noticeboard. HL indicates that the successful candidate will receive fringe
       benefits.

       3.3.1    Identify the method of recruitment used by HL. Motivate your
                answer by quoting from the scenario above.                              (3)

       3.3.2    Explain the advantages of fringe benefits for businesses.               (4)

3.4    Discuss the role of the interviewer before the interview.                        (6)

3.5    Outline the quality indicators of the production function.                       (4)

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

                                RICHARDS SHOES (RS)

       Richards Shoes is a large shoe manufacturer that are struggling to
       implement total quality management (TQM) successfully. The reputation of
       RS is suffering because of poor quality products. RS is also experiencing
       a high staff turnover because of poor skills development.

       3.6.1    Quote TWO ways in which the poor implementation of TQM has
                impacted on RS from the scenario above.                                 (2)

       3.6.2    Explain the other impact of TQM if poorly implemented by
                businesses.                                                             (4)

3.7    Differentiate between quality control and quality assurance.                     (4)

3.8    Evaluate the impact of continuous skills development as a total quality
       management (TQM) element on large businesses.                                   (6)
                                                                                      [40]

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8                                   BUSINESS STUDIES P1                     (EC/SEPTEMBER 2023)

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS ENVIRONMENTS

4.1      State any FOUR provisions of the Basic Conditions of Employment Act
         (BCEA), 1997 (Act 75 of 1997).                                                     (4)

4.2      Outline the strategic management process.                                          (6)

4.3      Identify the PESTLE elements that pose a challenge to Secure
         Manufacturer in EACH statement below:

         4.3.1   The packaging material Secure Manufacturer uses cannot be
                 recycled.

         4.3.2   They are struggling to make the monthly payment on their loan due
                 to the high interest rate.

         4.3.3   Employees are unable to operate modern machinery that has been
                 purchased.                                              (3 x 2)            (6)

4.4      Advise businesses on the implications of management control as one of
         the pillars of the Broad-Based Black Economic Empowerment Act
         (BBBEE), 2003 (Act 53 of 2003) for businesses.                                     (4)

BUSINESS OPERATIONS

4.5      State any FOUR aspects that should be included in an induction
         programme.                                                                         (4)

4.6      Outline the link between salary determination and the Basic Conditions of
         Employment Act.                                                                    (6)

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

                                   JUMPING GYMS (JG)

         Jumping Gyms specialises in on-line gym workouts. They use modern
         technology efficiently. The administration department also make reliable
         information available to management on time.

         4.7.1    Quote TWO quality indicators of the administration function from
                  the scenario above.                                                       (2)

         4.7.2    Explain other quality indicators of the administration function.          (4)

4.8      Recommend ways in which total quality management (TQM) can reduce
         the cost of quality.                                                              (4)
                                                                                          [40]

                                                               TOTAL SECTION B:             80

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(EC/SEPTEMBER 2023)            BUSINESS STUDIES P1                                    9

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 (LEGISLATION)

The establishment of Sector Education and Training Authorities (SETAs) ensure
the effective implementation of the Skills Development Act (SDA), 1998 (Act 97 of
1998). SDA was developed in response to the demands for redress and equity.
Businesses are required to comply with this Act.

Write an essay on the Skills Development Act in which you include the following
aspects:

•   Outline the role of SETAs in supporting the Skills Development Act
•   Explain the purpose of the Skill Development Act
•   Discuss the impact of the SDA on businesses
•   Suggest ways in which businesses could comply with the SDA                      [40]

QUESTION 6: BUSINESS OPERATIONS (HUMAN RESOURCES FUNCTION)

The job description and job specification must first be drafted by the human
resources manager before a thorough selection process can guarantee the best
candidate is selected. Businesses will reap benefits of inducting the newly
appointed employee and ensuring that the employment contract comply with the
legal requirements of employment.

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

•   Outline the differences between job description and job specification
•   Explain the selection procedure
•   Discuss the benefits of induction for businesses
•   Advise businesses on the legal requirements of the employment contract          [40]

                                                             TOTAL SECTION C:        40
                                                                GRAND TOTAL:        150

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