Business Studies Grade 12 P2 Gauteng Prelim 2024 Memo (Eng)

Downloaded from hlayiso.com PREPARATORY EXAMINATION 2024 MARKING GUIDELINES BUSINESS STUDIES (PAPER 2) (10722) 33 pages

Downloaded from hlayiso.com 10722/24 NOTES TO MARKERS PREAMBLE The notes to markers are provided for quality assurance purposes to: (a) Ensure 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 (d) Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning 1. For marking and moderation purposes, the following colours are recommended: Marker: Red Senior Marker/HOD: Green District Moderator: Orange 2. Candidates’ responses must be in full sentences for SECTIONS B and C. However, this would depend on the nature of the question. 3. Comprehensive marking guidelines have been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct, but: • Uses a different expression from that which appears in the marking guidelines • Comes from another source • Is the original • Uses a different approach NOTE: There is only ONE correct answer in SECTION A. 4. Take note of other relevant answers provided by candidates and allocate marks accordingly. (In cases where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of two marks.) 5. The word ‘Sub-max’ is used to facilitate the allocation of marks within a question or subquestion. 6. The purpose of circling marks (guided by ‘max’ in the breakdown of marks) on the right-hand side is to ensure consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes. 2

Downloaded from hlayiso.com 10722/24 7. Subtotals to questions must be written in the right-hand margin. Circle the subtotals as indicated by the allocation of marks at the end of each question. This must be guided by ‘max’ in the marking guidelines. Only the total for each question should appear in the left-hand margin next to the appropriate question number. 8. In an indirect question, the theory as well as the response must be relevant and related to the question. 9. Correct numbering of answers to questions or subquestions 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. 10. No additional credit must be given for the repetition of facts. Indicate with an ‘R’. 11. The differentiation between ‘evaluate’ and ‘critically evaluate’ can be explained as follows: 11.1 When ‘evaluate’ is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance, e.g. Positive: ‘COIDA eliminates time and costs spent  on lengthy civil court proceedings.’  11.2 When ‘critically evaluate’ is used, candidates are expected to respond in either a positive/negative manner or take a neutral (positive and negative) stance. In this instance candidates are also expected to support their responses with more depth, e.g. ‘COIDA eliminates time and costs spent  on lengthy civil court proceedings , because the employer will not be liable for compensation to the employee for injuries sustained during working hours as long as it can be proved that the business was not negligent.’  NOTE: 1. The above could apply to ‘analyse’ as well. 2. Note the placing of the tick () in the allocation of marks. 12. The allocation of marks must be informed by the nature of the question, the cognitive verb used, the mark allocation in the marking guidelines and the context of each question. Cognitive verbs, such as: 12.1 Advise, name, state, mention, outline, motivate, recommend, suggest, (list not exhaustive) do not usually require much depth in candidates’ responses. Therefore, the mark allocation for each statement/answer appears at the end. 3

Downloaded from hlayiso.com 10722/24 12.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, analyse, evaluate, critically evaluate (list not exhaustive) all require a greater depth of understanding, application and reasoning. Therefore, the marks must be allocated more objectively to ensure that assessment is conducted according to established norms so that uniformity, consistency and fairness are achieved. 13. Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions that require one answer. 14. SECTION B 14.1 If for example, FIVE facts are required, mark the candidate’s FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion. 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) 14.2 If two facts are written in one sentence, award the candidate FULL credit. Point 14.1 above still applies. 14.3 If candidates are required to provide their own examples/views, brainstorm this to finalise alternative answers and consult with the Internal Moderator. 14.4 Use of the cognitive verbs and allocation of marks: 14.4.1 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 guidelines to facilitate mark allocation. 14.4.2 If the number of facts required is not specified, the allocation of marks must be informed by the nature of the question and the maximum mark allocated in the marking guidelines. 14.5 ONE mark may be awarded for answers that are easy to recall, requires one-word answers or is quoted directly from a scenario/case study. This applies to SECTIONS B and C (where applicable). 4

Downloaded from hlayiso.com 10722/24 15. SECTION C 15.1 The breakdown of the mark allocation for the essays is as follows: Introduction Maximum: Content 32 Conclusion Insight 8 TOTAL 40 15.2 Insight consists of the following components: Layout/Structure Is there an introduction, 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 on the 2 questions? Option 1: Only relevant facts: 2 marks (No ‘-S’) Where a candidate answers 50% or more (two to four subquestions) 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 subquestion) 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 subquestions, but one/two/three subquestions 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 mark (Two ‘-S’) Where a candidate answers less than 50% (only one subquestion) of the questions with no relevant facts; two ‘-S’ appears in the left margin. Award a ZERO mark for synthesis. Originality Is there evidence of one example in any TWO of the four 2 subquestions, not older than 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 5

Downloaded from hlayiso.com 10722/24 NOTE: 1. No marks will be awarded for content repeated from the introduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be awarded for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. 15.3 Indicate insight in the left-hand margin with a symbol e.g., ‘L, A, -S and/or O’. 15.4 The breakdown of marks is indicated at the end of the suggested answer/marking guideline to each question. 15.5 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’. 15.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O – Originality) as in the table below. CONTENT MARKS Facts 32 (Max.) L 2 A 2 S 2 O 2 TOTAL 40 15.7 When awarding marks for facts, take note of the sub-maxima indicated, especially if candidates do not make use of the same subheadings. Remember, headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) 15.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 15.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guidelines. 6

Downloaded from hlayiso.com 10722/24 15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 15.10.2 With effect from November 2015, the TWO marks will not necessarily appear at the end of each completed sentence. The ticks () will be separated and indicated next to each fact, e.g. “Creativity may lead to new inventions  which improves the general standard of living/attracts new investors.’  This will be informed by the nature and context of the question, as well as the cognitive verb used. 15.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guidelines, will not necessarily apply to each question. This would also depend on the nature of the question. 7

Downloaded from hlayiso.com 10722/24 SECTION A (COMPULSORY) QUESTION 1 1.1 MULTIPLE-CHOICE QUESTIONS 1.1.1 B  1.1.2 C  1.1.3 A  1.1.4 C  1.1.5 C  (5 x 2) (10) 1.2 COMPLETION OF SENTENCES 1.2.1 personal liability  1.2.2 posters  1.2.3 people  1.2.4 privacy  1.2.5 norming  (5 x 2) (10) 1.3 MATCHING ITEMS 1.3.1 I  1.3.2 E  1.3.3 J  1.3.4 A  1.3.5 B  (5 x 2) (10) BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 TOTAL SECTION A: 30 8

Downloaded from hlayiso.com 10722/24 SECTION B Mark the answers to the FIRST TWO questions only QUESTION 2: BUSINESS VENTURES 2.1 Examples of short-term insurance - Property insurance  - Money in transit  - Theft  - Burglary  - Fire  NOTE: Mark the first THREE (3) only. Any (3 x 1) (3) 2.2 Functions of the Johannesburg Securities Exchange/JSE - Gives opportunities to financial institutions such as insurance companies investing their surplus funds in shares.  - Serves as a barometer/indicator of economic conditions in South Africa.  - Keeps investors informed by publishing 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 possible on the open market.  - Strict investment rules ensure a disciplined/orderly market for securities.  - Raises primary capital by encouraging new investments in listed companies.  - Mobilises the funds of insurance companies and other institutions.  - Regulates the market for trading in 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.  - Enhances job creation and increases economic growth/development.  - Facilitates electronic trading of shares/STRATE/Channels financial resources into productive economic activities.  Any other relevant answer related to the functions of the Johannesburg Securities Exchange/JSE. Max. (6) 2.3 Insurance concepts from the statements 2.3.1 Reinstatement  (2) 2.3.2 Excess  (2) 9

Downloaded from hlayiso.com 10722/24 2.4 Advantages of using a PowerPoint presentation/data projector as a visual aid - Graphic programmes have the capacity to convey ideas  and support what the presenter says.  - Easy to combine  with sound/video clips.  - Visual/audio aids like sound/video clips can easily be combined with the PowerPoint presentation.  - Simple/Less cluttered slides  may capture the interest of the audience.  - Video clips can provide variety  and capture the attention of the audience.  - Variation of colour/background/sound immediately captures the attention of the audience  and retains their interest throughout the presentation.  - Slides should only be used  where they can enhance the facts/summarise information. Any other relevant answer related to the advantages of a PowerPoint presentation/data projector as a visual aid. Max. (6) 2.5 Leadership theory 2.5.1 Leadership theory from the scenario Situational leadership theory  (2) Motivation Thandi, a manager at Thapelo Suppliers appointed suitable people in the right positions to complete tasks successfully.  (1) NOTE: Do not award marks for the motivation if the leadership theory was incorrectly identified. Max. (3) 2.5.2 Role of personal attitude in effective 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.  - Leaders should model the behaviour  that they want to see in team members.  - Great leaders understand that the right attitude  will set the right atmosphere.  - Leaders’ attitude may influence  employees’/teams’ thoughts/ behaviour.  - 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.  10

Downloaded from hlayiso.com 10722/24 - 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 effective leadership. Max. (6) 2.6 Types of benefits paid out by the Unemployment Insurance Fund/(UIF) 2.6.1 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.  - They may claim for benefits from the UIF if the Commission for Conciliation, Mediation and Arbitration (CCMA) considers their resignation as a constructive dismissal.  - Employees who become unemployed should register with the Department of Labour to prove that they are job seekers.  - If an employee voluntarily terminates his/her contract, he/she may not claim.  - Employees must apply for the UIF benefits as soon as they become unemployed/within six months of the termination of his/her employment.  - Fathers can claim for UIF benefits when they take 10 consecutive days of unpaid parental leave after the birth of their child.  - No tax is payable on unemployment benefits.  Any other relevant answer related to unemployment benefits as a type of benefit paid out by the UIF. Type (2) Discussion (1) Submax. (3) 11

Downloaded from hlayiso.com 10722/24 2.6.2 Illness/Sickness/Disability benefits  - Employees may receive these benefits if they are unable to work for more than 14 days without receiving a salary/part of a salary.  - Employees may not claim these benefits if they refuse medical treatment.  - Employees who are contributors to the UIF may apply for illness/ disability benefits if they are unable to perform their duties.  Any other relevant answer related to illness/sickness/disability benefits as a type of benefit paid out by the UIF. Type (2) Discussion (1) Submax. (3) 2.6.3 Maternity benefits  - Pregnant employees who contribute to the UIF receive these benefits for up to 4 consecutive months.  - If an employee had a miscarriage, she could claim for up to six weeks/ 42 days.  Any other relevant answer related to maternity benefits as a type of benefit paid out by the UIF. Type (2) Discussion (1) Submax. (3) 2.6.4 Adoption benefits  - Employees may receive these benefits if they have legally adopted a child younger than two 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 benefits.  - A contributing employee can apply for a leave of absence/stop working to look after his/her adopted child.  Any other relevant answer related to adoption benefits as a type of benefit paid out by the UIF. Type (2) Discussion (1) Submax. (3) 12

Downloaded from hlayiso.com 10722/24 2.6.5 Dependants’ benefits  - Dependants may apply for these benefits if the breadwinner, who has contributed to the UIF, dies.  - The spouse of the deceased may claim, whether he/she is employed or not.  - The dependants must apply within six months of the death of the contributing employee.  - Dependent children under the age of 21 years are entitled to benefits if there is no surviving spouse or a life partner.  Any other relevant answer related to dependants’ benefits as a type of benefit paid out by the UIF. Type (2) Discussion (1) Submax. (3) NOTE: Mark the first TWO (2) only. Max. (6) 2.7 Areas for improvement in the next presentation - The presenter should revise objectives that were not achieved.  - Use humour appropriately.  - Always be prepared to update/keep the information relevant.  - Reflect on any problem/criticism and avoid it in future presentations.  - Reflect on the time/length of the presentation to add/remove content.  - Reflect on the logical flow of the format/slides/application of visual aids.  - Increase/Decrease the use of visual aids/Replace or remove aids that do not work well.  - Any information that the presenter receives as feedback from a presentation should be analysed and where relevant, incorporated/used to update/amend his presentation.  Any other relevant answer related to areas of improvement for presenters in the next presentation. Max. (6) [40] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 3 2.2 6 2.3.1 2 2.3.2 2 2.4 6 2.5.1 3 2.5.2 6 2.6 6 2.7 6 TOTAL 40 13

Downloaded from hlayiso.com 10722/24 QUESTION 3: BUSINESS ROLES 3.1 Examples of unethical business practise - Unfair advertising  - Pricing of goods in rural areas  - Taxation/Tax evasion  NOTE: Mark the first TWO (2) only. Any (2 x 1) (2) 3.2 Correct procedure to deal with grievances in the workplace - An aggrieved employee must verbally report the incident/grievance to his/her supervisor/manager.  - Supervisor/manager needs to resolve the issue within three to five (3 to 5) working days.  - Should the employee and supervisor not be able to resolve the grievance, the employee may take it to the next level of management.  - The employee may move to a more formal process where the grievance must be lodged in writing/completes a grievance form.  - The employee must receive a written reply in response to the written grievance.  - A grievance hearing/meeting must be held with all relevant parties present.  - Minutes of the meeting must be recorded and any resolution passed must be recorded on the formal grievance form.  - Should the employee not be satisfied, then he/she could refer the matter to the highest level of management.  - Top management should arrange a meeting with all relevant parties concerned.  - Minutes of this meeting should be filed/recorded and the outcome/decision must be recorded on the formal grievance form.  - Should the employee still not be satisfied, he/she may refer the matter to the CCMA who will make a final decision on the matter.  - The matter can be referred to the Labour Court/Labour Appeal Court/ Constitutional Court if the employee is not satisfied with the outcome taken by the lower courts.  Any other relevant answer related to the correct procedure to deal with grievances in the workplace. NOTE: The procedure may be in any order. Max. (6) 14

Downloaded from hlayiso.com 10722/24 3.3 Diversity issues from the statements 3.3.1 Gender  (2) 3.3.2 Poverty  (2) 3.4 Application of accountability as a King Code principle for good corporate governance - There must be regular communication between management  and the stakeholders such as shareholders.  - Company should appoint internal and external auditors  to audit financial statements.  - The board should ensure that the company’s ethics  are effectively implemented.  - Businesses should be accountable/responsible  for their decisions/actions.  - Businesses should present accurate annual reports  to shareholders at the Annual General Meeting (AGM).  - Top management should ensure that other levels of management are clear  about their roles and responsibilities to improve accountability.  Any other relevant answer related to how businesses can apply accountability as a King Code principle for good corporate governance Max. (6) 3.5 Dealing with difficult employees in the workplace 3.5.1 Ways in which businesses can deal with difficult employees from the scenario - The management of BC speaks to these employees privately to avoid distracting other employees.  - Boa Communications provides guidelines on how employees can improve their behavior.  NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses quoted from the scenario. (2 x 1) (2) 15

Downloaded from hlayiso.com 10722/24 3.5.2 Other ways to deal with difficult employees in the workplace - Get perspective from others who have experienced the same kind of situation  to be able to understand difficult employees.  - Act proactively if possible,  as a staff/personnel problem is part of a manager’s responsibilities.  - Regular meetings with supervisors/departmental heads should help  to identify difficult/problem behaviour.  - Ask someone in authority  for their input into the situation.  - Identify the type of personality  which is creating the problem.  - Make intentions and reasons for action known,  so that difficult person/people feel at ease.  - Employees should be told what specific behaviours are acceptable  by giving details about what is wrong/unacceptable/an opportunity to explain their behaviour.  - A deadline should be set for improving  bad/difficult behaviour.  - The deadline date should be discussed with the difficult employee  and his/her progress should be monitored/assessed prior to the deadline.  - Do not judge the person  but try to understand him/her /Understand his/her intentions  and why he/she reacts in a certain way.  - Keep communication channels open/encourage employees  to communicate their grievances to management.  - Build rapport/sound relations  by re-establishing personal connection with colleagues.  - Help difficult employees to be realistic  about the task at hand /Be supportive of them  and their issues.  - Remain calm and in control of the situation  to get the person(s) to collaborate /Do not become difficult  yourself.  - Treat people with respect , irrespective of whether they are capable/competent or not /Do not try to change them , rather see where you can use them effectively.  - Sometimes it may be necessary to ignore  and only monitor a difficult person /Take a step back and analyse the situation  before you respond.  - Identify and provide an appropriate support programme  to address areas of weakness.  Any other relevant answer related to other ways in which businesses can deal with difficult employees in the workplace. NOTE: Do not award marks for responses provided in QUESTION 3.5.1. Max. (4) 16

Downloaded from hlayiso.com 10722/24 3.6 Ways in which businesses can create an environment that stimulates creative thinking in the workplace - Businesses must emphasise the importance of creative thinking  to ensure that all staff members know that their ideas will be heard.  - Make time for brainstorming sessions to generate new ideas  such as regular workshops/to build on one another’s ideas.  - Place suggestion boxes around the workplace  and keep communication channels open for new ideas.  - Train staff  in innovative techniques/creative problem solving skills/mind- mapping/lateral thinking.  - Encourage job swops  within the organisation /Study how other businesses  are doing things.  - Encourage alternative ways  of working/doing things.  - Respond enthusiastically to all ideas√ and never let anyone feel less important.  - Reward creativity by offering  reward schemes to employees /Introduce incentives for staff members  who come up with useful creative ideas.  - Make the working environment conducive  to creativity/free from distractions/high level noise.  Any other relevant answer related to ways in which businesses could create an environment that stimulates creative thinking in the workplace. Max. (4) 3.7 Advantages of the Delphi technique in solving complex business problems - Businesses may use a group of experts  without bringing them together.  - The experts will give the business clear ideas/solutions  on how to improve on productivity/profitability.  - Information received from experts can be used  to solve complex business problems.  - Experts may give honest/credible opinions  as they do not have a direct/personal interest in the business.  - Conflict may be avoided especially if all experts are knowledgeable  and well qualified.  - Dominating employees may not take over the process  as they do not form part of the problem-solving process.  - It reduces noise levels in an office environment since there is no group discussion.  Any other relevant answer related to the advantages of the Delphi technique in solving complex business problems. Max. (6) 17

Downloaded from hlayiso.com 10722/24 3.8 Ways in which businesses could protect the environment and human health in the workplace - Laws and regulations should be adhered to so that profits are not generated at the expense of the environment.  - Pollution and other environmental issues should always be considered in all business activities such as safe disposal of waste/dumping of toxic waste.  - Become involved in environmental awareness programmes.  - The environment can be protected by altering production techniques in favour of cleaner and greener technologies.  - Water for human consumption should be tested before it is used.  - Promote nature conservation by looking after natural resources.  - Minimise pollution, by reusing/reducing and recycling.  - Reduce consumption of goods/services which are environmentally unfriendly.  - Register/Engage with recognised institutions/bodies that promote green peace/energy.  - Physical working conditions should always be worker friendly, safe and promote occupational health.  - Physical working conditions such as adequate lighting/ventilation should be available and functional/Evaluate the physical working conditions to improve human health.  - Machines must be serviced/maintained regularly in order to reduce accidents in the workplace.  - Educate employees about hygiene issues.  - Encourage employees to do regular health checks.  - Conduct regular inspections on buildings/machinery to minimise potential dangers to human health.  Any other relevant answer related to ways in which businesses could protect the environment and human health in the workplace. Max. (6) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 2 3.2 6 3.3.1 2 3.3.2 2 3.4 6 3.5.1 2 3.5.2 4 3.6 4 3.7 6 3.8 6 TOTAL 40 18

Downloaded from hlayiso.com 10722/24 QUESTION 4: MISCELLANEOUS TOPICS ,BUSINESS VENTURES 4.1 Characteristics of a partnership - Partners combine capital and may also borrow capital from financial institutions.  - Profit is shared according to the partnership agreement.  - Partners share responsibilities and they are all involved in decision making.  - No legal requirements regarding the name of the business.  - No legal formalities to start as only a written partnership agreement is required.  - Partnership has no legal personality and therefore has no continuity.  - The partnership does not pay income tax, only the partners in their personal capacities.  - Auditing of financial statements is optional.  - Partners have unlimited liability and are jointly and severally liable for the debts of the business.  - Diversity/Specialisation/Different skills of the partners can be used.  Any other relevant answer related to the characteristics of a partnership. NOTE: Mark the first TWO (2) only. (2 x 2) (4) 4.2 Insurance 4.2.1 Average clause  (2) 4.2.2 Calculation of average clause Insured amount Market value x Loss/Damage  R600 000 R900 000  x R30 000  = R20 000  NOTE: 1. Award full marks (4) if the answer is correct and no workings are shown. 2. If the formula and workings were shown correctly but the final answer is wrong, award a maximum of THREE (3) marks. 3. If the answer and workings are incorrect, award a maximum of ONE mark for the formula. Max. (4) 19

Downloaded from hlayiso.com 10722/24 4.3 Contribution of management to the success and/or failure of a public company Factor Success AND/OR Failure Management - Managed by a board of - Directors may not have a direct competent highly skilled interest in the company,  which directors, which results in can hamper growth and profit better decision-making.  maximization.  - The management of the - Large management structure  company can improve  can result in decision making since directors are taking time.  accountable to shareholders.  - Shareholders can vote for/ - Directors’ fees increase the appoint the most capable company’s expenses  which directors  to manage the reduces net profit.  company.  - Directors bring creative - Management may be open to ideas,  which encourage legal challenges  if their reports innovation/ high productivity/ do not comply with King Code efficiency in the company.  111.  - Some shareholders may not exercise their voting rights  resulting in choosing the wrong person as a director.  - Directors may not be motivated to work very hard  because share-holders decide on the directors’ remuneration.  Any other relevant answer Any other relevant answer related to related to the contribution of the contribution of management to management to the success of the failure of a public company. a public company. NOTE: 1. The answer does not have to be in tabular format. 2. Mark either success AND/OR failure. Max. (6) 4.4 Situations in which the autocratic leadership style can be applied in the workplace This leadership style can be applied when: - There are crisis situations such as unforeseen cases/challenges/accidents  - All the information is available to solve the problem  - There are emergencies, where there is a shortage of time  - Employees are motivated, and the leader has already earned the trust of the followers.  - Dealing with employees who are not cooperative  - The business appointed inexperienced/new employees that could benefi t from this type of leadership style.  Any other relevant answer related to situations in which the autocratic leadership style can be applied in the workplace. Max. (4) 20

Downloaded from hlayiso.com 10722/24 BUSINESS ROLES 4.5 CSI focus areas - Community  - Rural development  - Employees  - Environment  NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 4.6 Ways in which businesses could promote social rights in the workplace - Businesses should ensure that employees have access to clean water/social security. - Provide health care services by establishing site clinics to give employees access to basic medical examinations.  - Encourage employees/Provide opportunities for skills training/basic education.  - Encourage employees to participate in special events such as World Aids day.  - Register workers with UIF to provide adequate protection in the event of unemployment/illness.  Any other relevant answer related to ways in which businesses could promote social rights in the workplace. Max. (4) 4.7 Unprofessional business practice 4.7.1 Unprofessional business practice from the scenario Abuse of worktime  (2) 4.7.2 Ways in which professional, responsible, ethical and effective business practices should be conducted - Mission statement should include values  of equality/respect.  - Treat workers with respect/dignity  by recognising work well done.  - Treat all their employees equally,  regardless of their race/colour/age/ gender/disability etc.  - All workers should have access  to equal opportunities/positions/ resources.  - Plan properly  and put preventative measures in place.  - Pay fair wages/salaries  which is in line with the minimum requirements of the BCEA. /Remunerate employees  for working overtime/during public holidays.  - Ensure that employees work in an environment  that is conducive to safety/fairness/free from embarrassment.  - Refrain from starting a venture using other businesses’ ideas  that are protected by law.  21

Downloaded from hlayiso.com 10722/24 - Engage in environmental  awareness programmes /Refrain from polluting the environment,  e.g. by legally disposing of toxic waste.  - Employers and employees need to comply with legislation  regarding equal opportunities/human rights in the workplace.  - Businesses should develop equity programmes/promote strategies  to ensure that all employees are treated equally regardless of status/rank/ power.  - Training/Information/Business policies  should include issues such as diversity/discrimination/harassment.  - Employers should respond swiftly and fairly  to reported incidents of discrimination in the workplace.  - Orders/Tasks should be given respectfully  and allow the recipient/ employee to have a say in the manner in which the task should be performed.  - Business decisions and actions must be clear/transparent  to all stakeholders.  - Businesses should be accountable/responsible  for their decisions and actions/patent rights.  - Hire honest/trustworthy accountants/financial officers  with good credentials.  - Regular/Timeous payment of taxes  and the business must disclose all needed information to SARS and not find loopholes to avoid paying taxes.  - Draw up a code of ethics/conduct  and ensure that acceptable behaviour is stated in this document.  - Ongoing development and training  for all employees.  - Performance management systems/Appraisals should be in place  to motivate employees.  - Adequate internal  controls/monitoring/evaluation.  - Provide quality goods/services to customers and pay attention to the safety of customers.  Any other relevant answer related to ways in which professional, responsible, ethical and effective business practice should be conducted. Max. (6) 22

Downloaded from hlayiso.com 10722/24 4.8 Steps in handling conflict in the workplace - Acknowledge that there is conflict in the workplace.  - Identify the cause of the conflict.  - Arrange pre-negotiations where workers/complainants will be allowed to state their case/views separately.  - Arrange time and place for negotiations where all employees involved are present.  - Arrange a meeting between conflicting employers/employees.  - Make intentions for intervention clear so that parties involved may feel at ease.  - Each party has the opportunity to express his/her own opinions/feelings.  - Conflicting parties may recognise that their views are different during the meeting.  - Analyse/Evaluate the cause(s) of conflict by breaking it down into different parts.  - Blame shifting should be avoided and a joint effort should be made.  - Direct conflicting parties towards finding/focusing on solutions.  - Devise/Brainstorm possible ways of resolving the conflict.  - Conflicting parties agree on criteria to evaluate the alternatives.  - Select and implement the best solution.  - Provide opportunities for parties to agree on the best solution.  - Evaluate/Follow up on the implementation of the solution(s).  - Monitor progress to ensure that the conflict has been resolved.  - Source experts on handling conflict from outside the business.  Any other relevant answer related to steps in handling conflict in the workplace. Max. (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 4 4.2.1 2 4.2.2 4 4.3 6 4.4 4 4.5 4 4.6 4 4.7.1 2 4.7.2 6 4.8 4 TOTAL 40 TOTAL SECTION B: 80 23

Downloaded from hlayiso.com 10722/24 SECTION C NOTE: Mark the answers to the FIRST question only QUESTION 5: BUSINESS VENTURES (INVESTMENT: SECURITIES) 5.1 Introduction - Preference shares offer a predictable income stream and the rights of shareholders making them attractive for income-focused investors.  - Investors need to be well conversant on the differences between simple interest and compound interest to enable them to yield better return on investment.  - Various types of investment opportunities are available and require investors to conduct research on the risk factor of each.  - The Government/RSA Retail Savings Bonds allows investors to take control of their own savings instead of investing through a third party.  Any other relevant introduction related to the rights of preference shareholders/ Differences between simple interest and compound interest/Mutual funds and debentures and their risk factors/Impact of Government/RSA Retail Savings Bonds. Any (2 x 1) (2) 5.2 Rights of preference shareholders Shareholders have right to: - Receive dividends regardless of how much profits are made.  - Receive a fixed rate of return/dividend.  - They are paid first/enjoy preferential rights to dividends.  - They have a preferred claim on company assets in the event of bankruptcy/ liquidation of the company.  - Receive interim and annual reports/Full disclosure must be made to the investors by providing them with copies of all financial reports.  - They only have voting rights at the AGM under particular circumstances/for certain resolutions.  - The voting rights of the investor is limited to issues affecting the rights of the preference shareholders.  - Cumulative shareholders must receive outstanding/accrued dividends from previous years.  - Participating preference shareholders have the right to share in surplus profits.  Any other relevant answer related to the rights of preference shareholders Max. (10) 24

Downloaded from hlayiso.com 10722/24 5.3 Differences between simple interest and compound interest SIMPLE INTEREST COMPOUND INTEREST - Interest earned on the original - Interest earned on original amount amount  and not on the interest invested,  as well as interest earned accrued.  in previous period(s).  - The principal amount remains the - The principal amount grows  with the same  over the entire period of addition of interest to it.  the investment.  - The interest is kept separate  - Interest is calculated on the higher unless it is reinvested.  principal amount  and again added to it.  - Yields less return  on - Yields high return  on investment.  investment.  - Total amount of interest earned  - Total amount of interest earned  on on investment is less.  investment is high.  Any other relevant answer related to Any other relevant answer related to simple interest. compound interest. Submax. (6) Submax. (6) 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 SIX (6) marks if the differences are not clear/Mark either simple interest or compound interest only. Max. (12) 5.4 Types of investment opportunities and their risk factors 5.4.1 Mutual funds/Stokvels - It is an informal savings scheme  to which a relatively small group of people contribute.  - Each member takes a turn to draw from the scheme/fund/stokvels  for their own personal gain.  - No/Small return on investment,  as contributions are distributed monthly to one of the members.  - Encourages people to save each month  for a specific reason.  - Banking fees are shared by the members,  resulting in low cost of investment per member.  - In times when it is hard to get bank loans,  stokvel pay-outs may come in handy. /Stokvels allow their members to withdraw money√ from the collective pool of funds for personal use.  - A stokvel is usually managed by a trustworthy chairman/treasurer, who will be responsible for keeping records and managing the bank account.  - Members usually discuss how the money will be invested  and agree on the risks they are willing to take.  25

Downloaded from hlayiso.com 10722/24 Risk - Schemers who claim to be running stokvels  may be running illegal pyramid schemes /Pay-outs may not be possible as cash has run out/members may lose their savings.  - Money in a savings account is a safe investment,  but with low interest rates/the returns are low.  - The possibility exists that a member would be unable  to contribute his/her monthly savings.  Any other relevant answer related to mutual funds/stokvels as a type of investment opportunity and the risk factor. Discussion (4) Risk factor (2) Submax. (6) 5.4.2 Debentures - Debentures are issued to raise borrowed capital  from the public.  - Lenders/Debentures holders agree to lend money to the company  on certain conditions for a certain period.  - Debenture holders are creditors,  as the company is liable to repay the amount of the debentures.  - Most types of debentures  can be traded on the JSE.  - Debenture holders receive annual interest payments  based on the terms/amount of debentures held.  Risk - Debentures have a low risk  as they need to be paid back.  - Companies are liable to repay the amount of the debenture plus interest,  which decrease the risk for the investor.  - Investors may earn a steady income  in the form of interest while preserving their principal amount.  Any other relevant answer related to debentures as a type of investment opportunity and the risk factors. Discussion (4) Risk factor (2) Submax. (6) Max. (12) 26

Downloaded from hlayiso.com 10722/24 5.5 Impact of Government/RSA Retail Savings Bonds as a form of investment Positives/Advantages - Guaranteed returns, as interest rate is fixed for the whole investment period.  - Interest rates are market related and attract more investors.  - Interest can be received twice a year making it a viable investment option.  - Investment may be easily accessible, as cash may be withdrawn after the first twelve months.  - Low risk/Safe investment, as it is invested with the South African Government which cannot be liquidated.  - It is an affordable type of investment for all levels of income earners including pensioners.  - Retail bonds are easily/conveniently obtained electronically/from any Post Office/directly from the National Treasury.  - No charges/costs/commissions payable on this type of investment.  - Interest is usually higher than on fixed deposits.  - Retail bonds are listed on the capital bond markets/on the JSE.  - Investors younger than 18 years/Minors may invest with the help of a legal guardian, which encourages saving from a young age.  Any other relevant answer related to the positive impact/advantages of Government/ RSA Retail Savings Bonds as a form of investment. AND/OR Negatives/Disadvantages - Retail bonds cannot be ceded to banks/financial institutions as security for obtaining loans.  - A minimum of R500/R1000 must be invested, which may be difficult for some small investors to accumulate.  - Retail bonds are not freely transferable amongst investors.  - Investors need to have valid SA identification/should be older than 18 years which may discourage foreigners/young people to invest.  - Penalties are charged for early withdrawals, if the savings is less than 12 months old.  Any other relevant answer related to the negative impact/disadvantages of Government/RSA Retail Savings Bonds as a form of investment. Max. (12) 27

Downloaded from hlayiso.com 10722/24 5.6 Conclusion - Preference shares confer some preferential rights on the holder, superior to ordinary shares.  - Understanding the difference between simple and compound interest is crucial to enable potential investors to take up a right loan/find the best investment option.  - Stokvel members can create social networks/friendships which provide a forum for discussing their personal lives and learn from each other’s experiences.  - Investors should carefully understand the terms and conditions of the debenture before choosing any type of investment opportunity.  - Debentures are backed only by the creditworthiness and reputation of the issuer.  - The simplicity and reliability of the Governement/RSA Retail Savings Bonds should lead, over time, to deeper levels of financial and economic literacy.  Any other relevant conclusion related to the rights of preference shareholders/ differences between simple interest and compound interest/mutual funds and debentures and their risk factor/impact of Government/RSA Retail Savings Bonds. Any (1 x 2) (2) [40] QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Rights of preference shareholders 10 Difference between simple interest and compound 12 interest Max. 32 Mutual funds and debentures as a type of investment 12 opportunity and their risk factors Impact of Government/RSA Retail Savings Bonds 12 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. 28

Downloaded from hlayiso.com 10722/24 QUESTION 6: BUSINESS ROLES (SOCIAL RESPONSIBILITY, CSR & CSI) 6.1 Introduction - Corporate Social Responsibility is the way a business conducts its operations ethically and morally, regarding the use of human, physical and financial resources.  - Businesses should develop CSI projects which are aimed at satisfying the needs of communities.  - A sound knowledge of the impact of CSI on their operations to ensure useful and expenditure/use of resources.  - Providing workplace care and support helps to ensure that employees with HIV/AIDS remain healthy and productive at work.  - The physical surroundings/attitudes/perceptions of employees and the working environment are all factors in affecting the well-being of employees.  Any other relevant introduction related to the differences between CSR and CSI/Impact of CSI on businesses/Strategies to deal with HIV & Aids and unemployment/Contribution of time and effort in improving the wellbeing of community. Any (2 x 1) (2) 6.2 Differences between CSR and CSI CSR CSI - The intention is to change business - Actively committing money and practices.  resources to uplift the community.  - Focus is on increasing image and - Focus is on the upliftment of community profits.  without return on investment.  - Ensure that all internal CSI policies/ - Ensures that CSI projects are relevant to practices include stakeholders’ the needs of communities.  interests/environmental issues.  - Often intended as a marketing - Intended to benefit and uplift initiative.  communities through social development.  - Projects are usually linked to the - Projects are external to the business and business such as a manufacturing have a strong developmental business offering to train the approach.  unemployed.  Any other relevant answer related to Any other relevant answer related to corporate social responsibility. corporate social investment. Submax. (4) Submax. (4) NOTE: 1. The answer does not have to be in a tabular format. 2. The differences do not have to link but must be clear. 3. Award a maximum of FOUR (4) marks if the differences are not clear./Mark either CSR or CSI only. Max. (8) 29

Downloaded from hlayiso.com 10722/24 6.3 Impact of CSI on businesses Positives/Advantages - May attract experienced employees/increase the pool of skilled labour  which could increase productivity.  - Positive/Improved image as the business looks after employees /conducts itself in a responsible way.  - Businesses may have a competitive advantage , resulting in good publicity/an improved reputation.  - Promotes customer loyalty  resulting in more sales.  - CSR projects may be used as a marketing strategy to promote their products.  - Businesses enjoy the goodwill/support  of communities.  - CSR projects promote teamwork  within businesses.  - CSR helps to attract investors  because of increased profits/income/growth.  - Gives businesses tax advantages  such as tax reduction/-rebates.  - Assists in solving socio-economic issues  like poverty/unemployment.  - The government is less likely to enforce issues through legislation  to businesses that voluntarily participate in CSR projects.  - Employees feel as if they are making a difference  in working for the business.  - It helps to retain staff/lower staff turnover  as employees’ health and safety are considered.  - Improves the health of its employees  through focused CSR projects.  - Businesses become more community-based by working closely  with the community to roll out skills development projects.  Any other relevant answer related to the positive impact/advantages of CSI on businesses. AND/OR Negatives/Disadvantages - It is difficult to accurately measure  the effectiveness of social investment.  - Most managers are not trained/lack experience  to handle social programmes.  - Businesses find it difficult to adhere  to legislation governing CSI.  - Detailed reports must be drawn up,  which can be time consuming.  - CSI activities distract business focus  from its core business functions.  - Shareholders may receive less dividends,  as some profits are spent on CSI.  - Business may not be supported/Customers may not buy their products/ services  resulting in a decrease in sales.  30

Downloaded from hlayiso.com 10722/24 - Small and medium enterprises find it difficult  to implement CSI programmes.  - 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.  - It can increase financial risk,  as CSI projects cost money/may impact negatively on profits.  - It is not easy to determine the exact needs of the communities,  which may result in fruitless expenditure on CSI.  - Employees may spend more time working on CSI projects  instead of focusing on their core duties.  - Provision of goods/services that satisfy consumers' needs is,  according to some interest groups already social responsibility.  - Some shareholders/stakeholders might withdraw their support from the business  as they feel that social issues should be the government’s responsibility.  Any other relevant answer related to the negative impact/disdvantages of CSR/CSI on businesses. Max. (12) 6.4 Strategies to deal with HIV/Aids and unemployment 6.4.1 Strategies to deal with HIV/Aids - Participate in the existing HIV/AIDS prevention programmes  implemented in the community.  - Train/Hire counsellors  to provide counselling to infected and affected persons/ employees.  - Develop counselling programmes  for infected/affected persons/employees.  - Conduct workshops  on HIV/Aids programmes/campaigns.  - Roll out anti-retroviral (ARV) treatment programmes (ART)  for the infected employees.  - Encourage employees to join HIV/Aids  support groups.  - Develop strategies to deal with stigma  and discrimination.  - Participate in the HIV/Aids prevention programmes  implemented in the community.  - Support  non-governmental organisational/community based organisations/NPC HIV/Aids initiatives.  Any other relevant strategies on ways in which businesses could deal with HIV/Aids as a socio-economic issue. Submax. (8) 31

Downloaded from hlayiso.com 10722/24 6.4.2 Strategies to deal with unemployment - Provide skills development programmes  through learnership programmes.  - Offer bursaries to the community  to improve the level of education.  - Create jobs  for members of the community.  - Provide/Conduct entrepreneurial programmes  that can promote self- employment.  - Support existing small businesses  to create more employment opportunities.  - Use members of the community  for implementing CSI projects in the community.  Any other relevant strategies on ways in which businesses could deal with unemployment as a socio-economic issue. Submax. (8) Max. (16) 6.5 Ways in which businesses could contribute time and effort in improving the well-being of employees - Businesses should pay fair wages/salaries to the workers based on the nature of their work/the prevailing economic conditions in the market.  - Pay fair bonuses based on business earnings, as acknowledgement for hard work and commitment.  - Offer financial assistance in the case of any hardship caused by unexpected medical costs.  - Working conditions should include safety/medical/canteen facilities/benefits such as housing/leave/retirement.  - Businesses could offer annual physical/medical assessments to workers.  - Make trauma debriefing/counselling/assistance/support programmes available to any employee who requires these services.  - Start a nutritional programme so that employees can enjoy one meal per day to keep them in a healthy condition.  - Encourage employees to stay fit and healthy by getting them involved in health activities to minimise stress/substance abuse/obesity.  - Provide recreational facilities for employees.  - Provide opportunities for employees participation in decision-making that affects them.  - Allow flexible working hours to enhance productivity.  - Make childcare facilities available on the premises for working mothers in the business.  - Give time to staff to get involved in projects they choose/Allow staff to use some of the working hours to participate in the projects of their choice.  - Businesses can provide transport for employees who work unusually long hours.  - Establish coaching and mentoring programmes for junior employees.  - Conduct team-building sessions to improve employees’ morale.  Encourage employees to attend capacity-building workshops/programmes for training/staff development/team development.  Any other relevant answer related to ways in which businesses can contribute time and effort in improving the well-being of employees. Max. (10) 32

Downloaded from hlayiso.com 10722/24 6.6 Conclusion - Corporate social responsibility is an obligation required by law and benefits the business/society.  - The primary intention of CSI projects is to achieve social outcomes and ensure that CSI projects are aligned to the business’s vision and purpose.  - Skills development/upskilling/training programmes in the workplace can also help employees when they might face unemployment.  - Dealing with HIV/Aids minimises employee turnover and decreases labour costs.  - Employers that share a bond of trust with their employees can begin to have meaningful discussions about their wellbeing in the workplace.  Any other relevant conclusion related to the differences between CSR and CSI/ Impact of CSI on businesses/Strategies to deal with HIV & Aids and unemployment/ Contribution of time and effort in improving the wellbeing of the community. Any (1 x 2) (2) [40] QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Differences between CSR & CSI 8 Impact of CSI on businesses 12 Strategies to deal with HIV/Aids & Unemployment 16 Max. 32 Ways in which businesses could contribute time and 10 effort to improve the wellbeing of employees Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 40 TOTAL: 150 33

Downloaded from hlayiso.com 10722/24 ANNEXURE A ADDENDUM Business Studies PRELIM P2 2024 Question Additions Reasons Way forward 3.8 Criteria of management of a The fact appears in past NCS Teachers are advised to use public company marking guidelines and past the revised fact as it appears in • Award full marks for: GDE notes. the DBE textbooks P351. Managed at least by one/three  competent/highly skilled directors.  5.3 Difference between simple and The fact appears in the DBE The fact has been revised in the compound interest textbooks P234 and 2024 2022 NSC marking guideline: • Award full marks for: GDE notes Teachers are advised to revise Interest earned on the original this fact in DBE textbook and amount other credible sources. Internal moderator: External moderator: DATE: 12 September 2024 34