BUSSINESS STUDIES GR10 MEMO ENG

NATIONAL SENIOR CERTIFICATE GRADE 10 NOVEMBER 2017 BUSINESS STUDIES MARKING GUIDELINES MARKS: 300 This marking guideline consists of 40 pages.

2 BUSINESS STUDIES (EC/NOVEMBER 2017) NOTES TO MARKERS 1. Candidates’ responses for SECTIONS B and C must be in full sentences; however, this would depend on the nature of the question. 2. A comprehensive memorandum has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but:  Uses a different expression from that which appears in the memorandum  Comes from another source  Original  A different approach is used NOTE: SECTION A: - There are no alternative answers. - Each question has only one correct answer. 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. 6. In an indirect question, the theory as well as the response must be relevant and related to the question. 7. Incorrect numbering of questions or sub-questions in SECTIONS A and B will be severely penalised. Therefore, correct numbering is strongly recommended in all sections. 8. No additional credit must be given for repetition of facts. Indicate with an R. 9. 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 guideline. Only the total for each question should appear in the left-hand margin next to the appropriate question number. 10 SECTION B 10.1 If, for example, FIVE facts are required, mark the candidate’s FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word ‘Cancel’. NOTE: This only applies to questions where the number of facts is specified. Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 3 10.2 If two facts are written in one sentence, award the candidate FULL credit. Point 10.1 above still applies. 10.3 If candidates are required to provide their own examples/views, brainstorm this to come up with alternative answers. 10.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 10.4.1 Where the number of facts are specified questions that require candidates to ‘explain/discuss/describe’ will be marked as follows:  Heading 2 marks  Explanation 1 mark (or as indicated in the marking guideline). The ‘heading’ and ‘explanation’ are given separately to facilitate mark allocation. 10.4.2 If the number of facts is not specified, the candidate must be informed by the nature of the question and the maximum marks allocated. 10.5 ONE mark will be awarded for answers that are easy to recall, requires one-word answers, or is quoted directly from scenario/case study. This applies to SECTIONS B and C in particular. 11. SECTION C 11.1 The breakdown of the mark allocation for the essays is as follows: Introduction Content Maximum: 32 Conclusion Insight 8 TOTAL 40 Copyright reserved Please turn over

4 BUSINESS STUDIES (EC/NOVEMBER 2017) 11.2 Insight consists of the following components: Layout/Structure Is there an introduction, body, proper paragraphs and a conclusion? 2 Analysis and Is the candidate able to breakdown the question into interpretation headings/sub-headings/interpret it correctly to show understanding of what is being asked? 2 Synthesis Are there relevant decisions/facts/responses made based on the questions? Marks to be allocated using this guide: No relevant facts: 0 (Two ‘-S’) Some relevant facts facts: 1 (One ‘-S’) Only relevant facts: 2 (No ‘-S’) NB: 1. If there is no ‘-S’ allocated, award the maximum of TWO (2) marks. 2 2. Where a candidate answers less than 50% of the question with relevant facts, no ‘-S’ appears in the left margin. In this case award a maximum of ONE (1) mark. Originality Is there evidence of examples, recency of information, current trends and developments? 2 TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY (8 + 32) 40 NOTE: 1. No marks will be awarded for contents repeated from the introduction and conclusion. 2. The candidate forfeits marks for layout if the words INTRODUCTION and CONCLUSION are not stated. 3. No marks will be allocated for layout, if the headings ‘Introduction, Conclusion,’ etc. in ‘Insight’ are not supported by an explanation. 4. With effect from November 2017 a candidate will be awarded a maximum of ONE (1) mark for headings/sub-headings and ONE (1) mark for interpretation (16 or more out of 32 marks). This applies specifically to the analysis and interpretation part of insight. 11.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, S and/or O’). 11.4 The components of insight are indicated at the end of the suggested answer for each question. 11.5 Mark all the relevant facts until the MAXIMUM mark in a subsection has been attained. Write MAX. after maximum marks have been obtained. Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 5 11.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follow: (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 11.7 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 sub-headings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARK BREAKDOWN at the end of each question.) 11.8 If the candidate identifies/interprets the question INCORRECTLY, then he/she may still obtain marks for layout. 11.9 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. 11.10 11.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases, incomplete sentences and vague answers. 11.10.2 With effect of 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. 11.11 With effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the memo, will not necessarily apply to each question. This would also depend on the nature of the question. Copyright reserved Please turn over

6 BUSINESS STUDIES (EC/NOVEMBER 2017) SECTION A: (COMPULSORY) QUESTION 1 1.1 1.1.1 B √√ 1.1.2 B √√ 1.1.3 B √√ 1.1.4 A √√ 1.1.5 B √√ 1.1.6 C √√ 1.1.7 B √√ 1.1.8 D √√ 1.1.9 A √√ 1.1.10 D √√ (10 x 2) (20) 1.2 1.2.1 Prospectus √√ 1.2.2 Innovative √√ 1.2.3 Controlling √√ 1.2.4 Public relations √√ 1.2.5 Quality control √√ (5 x 2) (10) 1.3 1.3.1 B √√ 1.3.2 I √√ 1.3.3 H √√ 1.3.4 G √√ 1.3.5 D √√ (5 x 2) (10) TOTAL SECTION A: 40 BREAKDOWN OF MARKS 1.1 20 1.2 10 1.3 10 TOTAL 40 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 7 SECTION B QUESTION 2: BUSINESS ENVIRONMENT 2.1 Business Sector 2.1.1 Secondary Sector √ Specialising in manufacturing fruit juice. √√ Max (3) 2.1.2 Components of business environments and their extent of control COMPONENTS ENVIRONMENTS EXTENT OF CONTROL Organisational culture √ Micro environments √ Full control √ Supplier √ Market environment √ Limited control √ Legal √ Macro environments √ No control √ Submax. (3) Submax. (3) Submax. (3) (9) 2.1.3 Purpose of organisational culture - The way the company does business √ formal or informal √ - Interaction of management √ and staff, i.e. organisational structure √ - The morals √ and ethics of the business.√ - Strict rules √ on time management √ - Create √ jobs opportunities.√ - Any other relevant answer related to organisational culture. Max: (6) 2.2 Influence of the components of the market environment COMPONENTS INFLUENCE Consumer √ - Customers have unlimited needs and wants, which they try to satisfy. √ - Customers’ needs change over time. √ - Customers’ different behaviour patterns. √ Submax: 3 Suppliers √ - The business requires suppliers to supply the right quality and quantity at the right time. √ - Pricing and credit terms must be considered when choosing suppliers. √ Submax: 3 Intermediaries √ - The business must consider how using intermediaries will affect input costs and the prices that the customer will ultimately pay. √ Submax: 3 Copyright reserved Please turn over

8 BUSINESS STUDIES (EC/NOVEMBER 2017) Competitors √ - The business must consider the competition from other businesses selling the same price or similar products. √ - The price offered must be as competitive as possible to attract customers. √ Submax: 3 Civil society √ - These organisations are part of the market environment as they supply √ and use goods and services. √ Submax: 3 Regulators √ - The government is a regulator and uses laws to control buying √ and spending. - Most regulations are put in place to promote fair trade. √ Submax: 3 Strategic allies √ - Unions are strategic allies for labour force, and they fight for better hours. √ - Some businesses form partnerships with suppliers to ensure constant prices and better services. √ Submax: 3 NOTE: 1. Allocate ONE mark for identifying the component of the market environment without discussing the influence. 2. Allocate a maximum of TWO marks for discussing the influence. Max: (12) 2.3 2.3.1 Counterfeit √√ 2.3.2 Piracy √√ 2.3.3 Trademark √√ 2.3.4 Patent √√ 2.3.5 Copyright √√ (5 x 2) (10) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 9 2.4 Purpose of inclusivity in the workplace - Inclusivity aims to ensure that businesses follow employment practices √ that are fair. √ - It aims to have workplaces where people of different races/cultures/ genders/religions/abilities/languages and beliefs can work together effectively √ for the good of the business. √ - Aims to redress the imbalances of the past √ when people experienced exclusion based on factors like race, gender, language or disability status. √ - .Aims to establish a workforce √ that is representative of the demographics of South Africa. √ - To give equal opportunity in the workplace √ to all people with necessary qualifications, skills and experience, √ who are willing and able to work. √ - Any other relevant answer related to the purpose of inclusivity. Max: (8) 2.5 Evaluate the negative impact of HIV/AIDS on businesses - Costs such as insurance, retirement funds, health and safety√ and medical aid √ are all higher as a result of HIV/AIDS. √ - Workers living with HIV/AIDS often have low morale √ as they are concerned about their health √ and this lowers productivity. √ - Workers who have a family member suffering from HIV/AIDS √ are also preoccupied by their concern for the family member√ and are less productive. √ - When a business loses an employee, √ the costs of finding a suitable replacement √ and training √ the new person are high. √ - Conflict can arise among staff √ if they discover that a worker is HIV positive, √ because there is a lot of ignorance √ and fear √ around the illness √ and this can cause people to shun √ those who are affected. √ - The pool of available skilled workers √ is getting smaller √ due to high rates of HIV infection and AIDS. √ Any other relevant answer related to the evaluation of the negative impact of HIV/AIDS on businesses. Max. (12) [60] Copyright reserved Please turn over

10 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 3: BUSINESS VENTURES 3.1 Entrepreneurial qualities - Desire for responsibility √ - Risk-taker √ - Perseverance √ - Passion √ - Organisational skills √ - High level of energy √ - Good management and leadership skills √ - High degree of commitment √ - Flexibility √ - Confidence in one’s ability to succeed √ - Any other relevant answer related to entrepreneurial qualities. (4) NOTE: Mark the first FOUR only. 3.2 Outline the components of a Business Plan Cover page √ - It gives the name of the owner, the logo and the name of the business, and address and contact details of the business. √ Submax: 2 Executive summary √ - It provides a brief overview of the business to allow investors to get an idea of the business before reading the whole plan. √ Submax: 2 Description of the business √ - Describes the product or service and the unique feature of the business. √ Submax: 2 SWOT analysis √ - Identifies the strengths and weaknesses of the business. √ - It also lists the opportunities and threats. Submax: 2 Marketing plan √ - It is a description of the market analysis including the target market, customers and competition.√√ Submax: 2 Financial plan √ - It is a detailed description of the entrepreneur’s financial contribution, the funding, requirements, projected budgets and cash flow statements. √ Submax: 2 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 11 Management plan √ - Discusses the hierarchy and roles of the employees. √ Submax: 2 Additional documents √ - The annexure contains additional documents, which could include: - A contingency plan √ - Time schedule √ - Diagram of the machinery or product or process √ - Legal registration documents √ (4 x 2) (8) Submax: 2 NOTE: Mark the first FOUR only. 3.3 Types of visual aids 3.3.1 Flip-chart √√ 3.3.2 Interactive white board √√ 3.3.3 Data projector √√ 3.3.4 Overhead projector √√ 3.3.5 Video conferencing √√ (5 x 2) (10) 3.4 Compare the TWO forms of ownership PARTNERSHIP PRIVATE COMPANY No restriction. √√ Ends in (Pty) Ltd. √√ No legal status. √√ Own legal entity√√ No continuity. √√ Has continuity. √√ Partners responsible for own tax. √√ Shareholders/director pays tax. √√ Oral or written agreement between Memorandum of Incorporation partners. √√ with Registrar of Companies (CIPC and prescribed fee). √√ Managed by partners. √√ 1 or more directors. √√ Minimum 2 partners. √√ Minimum 1 shareholder. √√ Submax. 6 Submax. 6 NOTE: 1. The answer must be in a tabular format. 2. The differences must be clearly linked. Max. (12) Copyright reserved Please turn over

12 BUSINESS STUDIES (EC/NOVEMBER 2017) 3.5 Factors that impact location 3.5.1 Water supply √ Crime √ (2) 3.5.2 Impact of water supply - A lack of water will limit √ business operations. √ - Having to install √ water pipelines is expensive and will rise costs, √ and therefore will also raise√ the selling price of the product. √ - Any other relevant answer related to the impact of water supply. Submax. 4 Impact of crime - The costs involved for businesses include: - The direct costs of the goods √ and money stolen. √ - The cost of damage to property or goods. √ - The indirect costs of disruption √ to business hours and staff time off. √ - The loss of essential equipment √ causing temporary closure of the business. √ - The increase in medical expenses√ and insurance premiums. √ - The loss of staff. √ - The security costs as the business tries to protect itself√ from being the victim of crime. √ - Any other relevant answer related to the impact of crime. Submax. 4 Max. (8) 3.5.3 Recommendations on business locations Water supply - Water is a scarce resource and needs to be used very wisely. √√ - Water conservation and awareness programmes are in place to protect this valuable resource √√ and to make people aware of the dangers of not using water wisely. √√ - Any other relevant answer related to the recommendations on water supply. Max. (4) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 13 Crime - Better, more visible policing and faster response times. √√ - Reporting crime to the police and working with them. √√ - Businesses taking proactive role in fighting crime, through Community Policing Forums and neighborhood watch programmes with other businesses in the area. √√ - Businesses installing effective security measures and reducing the levels of cash on premises. √√ - Any other relevant answer related to the recommendations on crime. Max. (4) 3.6 Analysing environmental factors with reference to the business plan Political √ - Taxation/local government/by-laws or international trade laws. √ Economic √ - Interest rate/inflation/levels of remuneration. √ Social √ - Income distribution/attitude to the business and products/ demographics of the population √ Technological √ - New technology and the rate at which it will become outdated. √ Legal √ - Foreign trade laws/competition laws/labour laws. √ Environmental √ - Impact on the environment/environmental laws/Cost of electricity. √ NOTE: 1. Allocate ONE for identifying the environmental factor. 2. Allocate ONE for analysis of the environmental factor. Max. (12) [60] Copyright reserved Please turn over

14 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 4: BUSINESS ROLES 4.1 Problem-solving techniques 4.1.1 Delphi technique √√ 4.1.2 Force-field analysis √√ 4.1.3 Chair technique √√ 4.1.4 Empty chair √√ 4.1.5 Brainstorming √√ (5 x 2) (10) 4.2 Meaning of success 4.2.1 Success is the achievement of desired goals and status. √√ (2) 4.2.2 Discuss the importance of setting goals - Goal setting helps you to organise your time and resources √ so that you make the very most of your life. √ - Setting goals gives long term vision√ and short-term motivation. √ - When setting goals, you take control of your life, √ you have direction of where you want to go. √ - When setting goals, you have maximum results, √ you have a vision to work towards, what you are aiming at. √ - Your goals propel you √ to take more action. √ - When setting goals you think ahead√ after which you can create your action plan √ even if things don’t go according to plan you can review it. √ - Goals give you focus, √ give you an idea as to how exactly you spend your time and energy. √ - It creates accountability, √ you are accountable to yourself not to anyone else. √ - When setting goals, you connect with your innermost desires √ they motivate you and give you something to strive for. √ - Goals helps you to achieve your highest potential, √ because you set targets to strive towards. √ - They make you to live√ the best in your life. √ - Goals helps you become the best you can be. √ - They make you to stretch beyond your normal self, √ to reach heights. √ - Any relevant answer related to the importance of setting goals. Max. (12) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 15 4.2.3 Ways in which employees can project a professional image - Dress appropriately for the work you do and the place where you work. √√ - Work hard and be productive. √√ - You are more likely to be promoted if you do more than you are required to do in your job description. √√ - Be punctual and enthusiastic. √√ - Be friendly and accepting of your colleagues. √√ - Treat everyone with respect, whether you like them or not. √√ - Avoid conflict. √√ - Any other relevant answer related to ways in which employees can project a professional image. Max. (4) 4.3. Differentiate between problem solving and decision making PROBLEM SOLVING DECISION MAKING Aimed at finding solutions to Aimed at a choice between problems. √√ alternatives. √√ Possible solutions are not Alternatives are obvious. √√ obvious. √√ Often done by a group of people. √√ Normally done by one person. √√ An ongoing process. √√ Timeline with definite beginning and ending. √√ Decision making is often part of the It involves strategic decisions. √√ stages of problem solving. √√ Any other relevant answer related to Any other relevant answer related to problem solving. decision making. Submax. 4 Submax. 4 NOTE: 1. The answer does not have to be in tabular format but differences must be clear. 2. Award a maximum of FOUR (4) if differences are not clear. Max. (8) Copyright reserved Please turn over

16 BUSINESS STUDIES (EC/NOVEMBER 2017) 4.4 Describe the problem solving-cycle Identify the problem √ - Understand what the problem is by collecting as much information as possible. √ Define the problem √ - Once you have in-depth knowledge and understanding of the problem, you need to generate a definition that is as concrete as possible. √ Formulate a strategy √ - Think of various solutions to the problems considering the limitations available to you. √ Implement the strategy √ - It’s time to put the strategy into action. √ Allocate the resources √ - You need to make sure that the necessary equipment is available and allocated to the right people. √ Monitor the problem-solving process √ - Keep a careful watch on the implementation of the strategy.√ Evaluate the problem-solving process √ - Work through the problem-solving cycle until the desired outcome is reached. √ - Evaluate the entire process to see what you have done is right and which step(s) need(s) improvement. √ - Any relevant answer related to the analysis of the problem-solving cycle. Max. (12) 4.5 Discuss any FOUR criteria for a successful team. Clear objectives and agreed goals √√ - Members must agree on goals and set clear objectives. √ - They must know what they want to achieve. √ - There is better commitment if objectives are understood clearly. √ Submax. 3 Openness and expression √√ - Members should be allowed to state their views. √ - Members should be encouraged to suggest new ideas. √ - Must be open and upfront with one another. √ - Members should often communicate with each other. √ - Members should give feedback so plans can be changed.√ Submax. 3 Mutual respect, support and trust √√ - Members should offer mutual respect, support and trust. √ - Members must support the rest of the team. √ - They must not fear being laughed at or rejected for expressing concerns. √ - This will encourage participation. √ - Members should consult with all group members. √ - Members should learn from one another. √ Submax. 3 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 17 Commitment to achieve √√ - Members should be motivated to achieve the goals of the group. √ Submax. 3 Sound inter-team relations √√ - Teams must maintain good relationships with other teams in an organisation. √ Submax. 3 Individual development opportunities √√ - The team should develop the skills of individual members and provide chances for each one to grow and learn. √ - Teams must allow group members to use their strengths. √ Submax. 3 Review of the team process √√ - The team must constantly reflect on the team processes. √ - Teams must understand their own characteristics and analyse how they deal with decisions and conflicts. √ - Team should improve team performance by learning from experience. √ Submax. 3 Good decision making √√ - When communication in a team is good and everyone understands the objectives, a team can make good decisions √ - Alternatives should be discussed openly. √ - Teams should collect information quickly. √ - Full involvement from the team will result in members commitment to decision and faster action. √ Submax. 3 Creative problem solving √√ - Team members must be innovative and creative to solve problems. √ - Team members must be encouraged to come up with dynamic and creative solutions to problems. √ Submax. 3 Role clarity - Team members must know their roles within the group. √ Submax. 3 Clear standards √√ - The standard of the work needed must be negotiated. √ Submax. 3 Achievable tasks √√ - The team should make sure that members’ tasks are achievable. √ Submax. 3 Value of each member √√ - Team members must have skills, experience or some other quality that adds value to the team. √ Submax. 3 Copyright reserved Please turn over

18 BUSINESS STUDIES (EC/NOVEMBER 2017) Team spirit √√ - Team members must have team spirit. √ - All team members should participate in the team’s tasks. √ - Work should be shared. √ Submax. 3 Any relevant answer related to criteria for a successful team. NOTE: 1. Mark the first FOUR only. 2. Allocate TWO for identifying the team criteria. 3. Allocate ONE for the explanation of the criteria. Max. (12) [60] QUESTION 5: BUSINESS OPERATIONS 5.1 Business functions 5.1.1 Production function √√ 5.1.2 Human resource function √√ 5.1.3 Administration function √√ 5.1.4 General management function √√ 5.1.5 Marketing function √√ (5 x 2) (10) 5.2 Advantages of quality control - Dealers and consumers are assured √ that products are of a required standard. √ - It encourages workers to continue√ to produce quality products. √ - Production costs can be reduced √through elimination of poor product. √ - It leads to improved quality √ and design. √ - Increased customer satisfaction. √ - Increased competitiveness √ as high quality places products above those of competitors. √ - Increased likelihood of achieving √ business vision and goals. √ - Any other relevant answer related to the advantages of quality control. Max. (10) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 19 5.3.1 Management levels and decisions made MANAGEMENT LEVELS TYPE OF DECISION Top management √ Strategic decision √ Middle management √ Tactical decision √ Lower management √ Operational decision √ Submax. 3 Submax. 3 NOTE: 1. Management level and decisions made must link. 2. Management level may be any order. Max. (6) 5.3.2 Basic management tasks Planning √ - Process of setting goals and making plans to achieve these goals. √ - Planning includes the following tasks: - Get all the information you need for planning. √ - Analyse the information and set long term goals. √ - Consider different plans to achieve the goals. √ - Choose the best plan and decide on the action to be taken. √ - Decide on the backup plan to use if the chosen plan becomes impossible. √ - Implement the chosen plan. Follow up to make sure the plan is successful, adjust it or change to the backup plan. √ - Any other relevant answer related to planning as a basic management task. Submax. 3 Organising √ - Is the process of looking at what needs to be done and organizing resources in such a way that you meet goals and objectives. √ - Organising the jobs within specific functions or departments. √ - People must understand what is expected from them in terms of tasks, authority and responsibility. √ - They must know the organisational procedures for instructions and feedback and which resources they can use. √ - Any other relevant answer related to organising as a basic management task. Submax. 3 Copyright reserved Please turn over

20 BUSINESS STUDIES (EC/NOVEMBER 2017) Leading √ - The process of leading is to guide, motivate and inspire others to achieve goals. √ - A leader provides people with directions, and people follow a leader willingly because (s)he has their respect and treats them with respect. √ - A leader activates workers – inspires them to take action and to do their jobs well, to use their skills and resources to maximum. √ - Leaders set up proper communication channels so that the workers are always informed and there is clear transfer of information. √ - Establish a productive working climate. √ - Any other relevant answer to leading as a basic management task. Submax. 3 Controlling √ - Make sure that activities are carried out as planned. √ - Involves comparing actual results with goals set by management. √ - Corrective measures must be taken if there is a difference between actual results and the goals the business set out to achieve. √ - Continuous control ensures that the business runs smoothly. √ - Any other relevant answer to control as a basic management task. - Submax. 3 NOTE: 1. Allocate ONE for identifying the basic management task. 2. Allocate TWO marks for discussing each basic management task. Max. (12) 5.4 The Act that Pablo does not comply with 5.4.1 National Credit Act √ (1) 5.4.2 Quote from the scenario - Charging a club fee on credit agreement without the permission of the consumer. √ - Offering or demanding purchase of insurance. √ - Offering financial packages to customers who do not qualify for or do not need them. √ Max. (3) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 21 5.4.3 Outline FOUR consumer rights of the National Credit Act The right to: - Apply for credit √ and to be free from discrimination. √ - Obtain reasons √ for credit being refused. √ - Receive pre-agreement documentation √ before concluding any credit transaction. √ - Fair √ and responsible marketing. √ - Choose which goods they will buy √ and return such goods if they are not satisfied. √ - Receive information in plain √ and understandable language. √ - Receive documents √ as required by the Act. √ - Access and challenge √ credit records and information. √ - Any other relevant answer related to consumer rights. Max. (8) 5.5 Implications of the National Consumer Protection Act to the purchasing function - Purchasing department ensures that it buys good quality products √ from responsible suppliers. √ - Failing to do so, purchasing department will be held responsible by the Act √ and will have to pay money to consumers √ for defective products. √ - Suppliers and producers can be held accountable √ for harm caused by defective products. √ - More paper work and staff training √ is required of suppliers. √ - It will be difficult for suppliers to render √ defective performance or deliver defective product. √ - Any relevant answer related to the implications of CPA to purchasing. Max. (10) [60] Copyright reserved Please turn over

22 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 6: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENT 6.1 Components of the micro-environment - Vision, mission, goals, strategy and objectives √ - Organisational resources √ - Management and leadership √ - Business functions √ - Organisational structure √ (5) NOTE: Mark the first FIVE (5) only. 6.2 The interrelationship between the micro-, market and macro- environments - Business enterprises are in constant interaction √ with elements present in all three-business environments. √ - An entrepreneur uses the factors of production √ to produce a product or service. √ - An entrepreneur aims to satisfy the needs of the consumer √ in order to make a profit. √ - During this process, the entrepreneur is subjected to challenges coming from amongst others, √ competitors, √ as well as the government. √ - Entrepreneurs must deal with labour crises, √ demands such as BEE √ and affirmative action. √ - Providing products and services √ are therefore not a simple process that can take place in isolation. √ - It is a complicated process where many influences are present. √ - A business exercises control over most of the elements √ in the micro- environments. √ - Eg. a business cannot force consumers to buy their products, but it can influence consumers through competitive prices and advertising √ - A business can neither influence, nor exercise control over the elements √ of the macro-environment. √ - A business must adapt to the challenges from the macro-environment √ and formulate strategies to cope with these challenges√. - The three business environments are interrelated. √ - Any other relevant answer regarding interrelationship between the three environments. Max. (10) BUSINESS VENTURE 6.3.1 Methods of collecting data - Interview √ - Surveys √ - Group research √ - Observation √ - Experimenting √ (1) NOTE: Mark only ONE method. Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 23 6.3.2 Compile SWOT analysis STRENGTHS WEAKNESSES Mona has capital of He does not have accounting R2 000. √√ skills. √√ Submax. 2 Submax. 2 OPPORTUNITIES THREATS He has been offered a Competition from similar businesses in stand at minimal the surrounding rent. √√ area. √√ Submax. 2 Submax. 2 Max. (8) 6.4 Factors to be considered when preparing a verbal presentation - Write down the purpose of your presentation √ and list your objectives. √ - Consider the people √ in your audience. √ - Write out your presentation structure √ using introduction, body and conclusion. √ - Create visual aids√ that will help to get the points across effectively √ and memorably. √ - Practice the presentation. √ - Time yourself, √ if it’s too long, shorten it. √ - If it is too short, add some interesting examples. √ - Practice in front of someone who will give you an honest opinion. √ - Visit the venue √and ensure your visual aids √ are appropriate√ for the room and the equipment provided √ works and is suitable. √ - Any relevant answer related to the factors that need to be considered when preparing a verbal presentation. Max. (6) BUSINESS ROLES 6.5 Problems that will be faced by businesses in 2017 6.5.1 Lack of qualified labour. √ (1) 6.5.2 The use of creative thinking to solve business problems - Provide training and education. √√ - Change employee’s perspectives. √√ - Encourage breaking habits that constrain innovation. √√ - Expose employees to different cultures. √√ - Set up suggestion box. √√ - Reward creative ideas for solving problems. √√ - Any other relevant answer regarding the use of creative thinking to solve business problems. Max. (8) Copyright reserved Please turn over

24 BUSINESS STUDIES (EC/NOVEMBER 2017) 6.6 Ways in which businesses can create an environment where teams can operate effectively - The business needs to ensure that every employee understands the business objectives and believes in them. √√ - The employees need to feel part of something bigger than themselves. √√ - The business needs to ensure that every employee feels important to the business and that they will be listened to and taken seriously if they have an idea. √√ - The management cannot be autocratic by not taking notice of other people’s ideas or opinions. √√ - Important decisions need to be made regularly through the process of teamwork. √√ - Good teamwork needs to be rewarded and mistakes to be viewed as opportunities to learn and grow, otherwise employees will not take the risk of speaking up and offering innovative ideas and suggestions. √√ - Any other relevant answer regarding on how businesses can create an environment where teams can operate effectively. Max. (6) BUSINESS OPERATIONS 6.7.1 Sources of finance - Money market √ - Credit allowed by suppliers √ - Bank overdraft √ - Short term loans √ - Lease loans √ - Long term loans √ - Selling shares √ - Reserve funds √ NOTE: Mark the first THREE sources of finance. Max. (3) 6.7.2 Roles and responsibilities of the various levels of management Top level management - Planning for the future of the enterprise. √ - Monitoring the business’s relationship with the external environment. √ - Managing change in the business environment. √ - Determine the vision, strategy and objectives of the business √ enterprises and ensure that the business achieves them. √ - Taking strategic decisions, which will have long term consequences, √ for example whether a business should change its packaging, retrench employees or add a product to its existing product range. √ - Any relevant answer related to the roles and responsibilities of the top-level management. Submax. 4 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 25 Middle level management - Middle level management serves as a link between top level management and lower level management. √ - Implementing the plans made by top-level management by making tactical decisions. √ - Managing each department for example the marketing department, or the financial department. √ - Achieving the goals and objectives set for the specific department. √ - Acquiring resources needed in their department. √ - Any relevant answer related to the roles and responsibilities of the middle level management. Submax. 4 Lower level of management - Lower level management serves as a link between the heads of different departments and the workers on ground level. √ - Carrying out tactical decisions set by middle management. √ - Utilising the resources acquired by middle management to execute daily instructions. √ - Making decisions of a routine and short-term nature. √ - Lower level managers are responsible for reaching daily objectives. √ - Executing instructions given by middle management. √ - Any relevant answer related to the roles and responsibilities of the lower level management. Submax. 4 (12) Max. [60] TOTAL SECTION B: 180 Copyright reserved Please turn over

26 BUSINESS STUDIES (EC/NOVEMBER 2017) SECTION C Mark the first TWO (2) questions only. QUESTION 7: BUSINESS ENVIRONMENTS (BUSINESS SECTOR) 7.1 Introduction - Organisations in South Africa are classified, based on their business and economic activities, as part of the formal sector and informal sector. √ - The formal sector is also known as the primary economy. This is because most goods are supplied by the formal sector. √ - The informal sector is also known as the second economy and it is mainly a cash industry. √ - Any relevant answer related to the introduction of formal and informal sector. Max. (2) 7.2 Advantages of the informal sector - Easy to enter the informal sector. √√ - No formal education is needed/to participate in the informal sector. √√ - The informal sector provides jobs √ and an income to thousands of people. √√ - People working in the informal sector gain √ work experience √ which enables them to apply √ for jobs in the formal sector. √√ - Participants in the informal sector get exposure to entrepreneurial skills. √√ - People in the informal sector don’t pay tax. √√ - Any relevant answer related to the advantages of the informal sector Max. (6) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 27 7.3 Comparison of the formal sector and informal sector FORMAL SECTOR INFORMAL SECTOR - Contribute towards the GDP of - Contribute little towards the GDP and the country because they are fall outside the mainstream economic legally registered. √√ activities. √√ - Made up of highly skilled, - Made up of a large number of poor semi-skilled and unskilled people within the rural and urban labour. √√ areas. √√ - Not easy to enter this sector as - Easy to enter this sector. √√ businesses have to be legally registered. √√ - Resources are acquired - Rely on indigenous resources e.g. through proper plans and barks of trees, leather from cattle or policies, budgeted for and wild plants. √√ deployed. √√ - Small, medium and large size - Small scale operations. √√ operations. √√ - Could be capital, technological - Labour intensive with adaptable and labour intensive depending technology. √√ on type of industry. √√ - Comply with the relevant laws - Unregulated in a legal and social such as Labour Laws and environment. √√ Occupation and Health Act. √√ - Employees are protected in - Employees are not protected and many ways such as: can be exploited. √√ Unemployment funds, disability funds, injury on duty funds. √√ - Pay tax. √√ - Do not pay tax as they are not - Any relevant answer related to registered. √√ the characteristics of formal - Any relevant answer related to the sector. characteristics of informal sector. Submax. 12 Submax. 12 NOTE: - The comparison must be clear. - If the comparison is not clear, award a maximum of TWELVE (12) marks. Max. (24) Copyright reserved Please turn over

28 BUSINESS STUDIES (EC/NOVEMBER 2017) 7.4 The purpose of the public sector - The public sector includes those industries that are controlled by the government. √ - Aims to meet the needs of society. √ - Public sector businesses do not aim to make profit. √ - Provides people with job opportunities. √ - Improve the general standard of living of all people. √ - Controls pollution and protects and conserves natural resources such as water, wildlife and precious stones. √ - Ensure that wealth of the country is spread equally among the rich and the poor. √ - Offers valuable services such as public roads, public hospitals, public schools etc. √ - Offers affordable services to the private sector. √ - Public sector often outsources services to private businesses. √ - Any relevant answer related to the purpose of the public sector. Max. (8) 7.5 Difference between the Private Sector and the Public Sector PRIVATE SECTOR PUBLIC SECTOR - Aims to meet both the - Aims to meet the needs of society √√ needs and the wants of society √√ - Privately owned by - State owned or state-run (known as entrepreneurs √√ parastatals) √√ - Profit driven institutions √√ - Generally non-profit organisations, with exceptions such as SAA and Denel √√ - Different forms of ownership - State ownership or parastatals (state- such as sole proprietorship, run businesses) √√ partnership, private company and public company √√ - Provide everyday - Provide water and electricity as a need household commodities, satisfying product. √√ such as food, clothing and cleaning materials √√ - Provide private refuse - Provide refuse removal as a collective removal from companies, service √√ such as Wastetech √√ - Any other relevant answer - Any other relevant answer related to related to private sector. public sector. Submax. 4 Submax. 4 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 29 NOTE: - Differences must be clear. - If the difference is not clear, award a maximum of FOUR (4) marks. Max. (8) 7.6 CONCLUSION - State-owned enterprises (SOEs) such as Transnet and Eskom, and government organisations make up the public sector. √√ - .South Africa has a mixed-market economy in which there is a high degree of state intervention. √√ Max. (2) [40] BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Advantages of the informal sector 6 Comparison of the formal and informal sector 24 Max. Purpose of the public sector 8 Distinguish between the public sector and 32 8 the private sector Conclusion 2 INSIGHT Layout 2 Analysis 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 only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

30 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 8: BUSINESS VENTURES (CONTRACTS) 8.1 Introduction - Contracts are important for the operation of a business as many interactions are based on the terms of an agreement of one kind or another. √ - Because the very existence of a business depends on its constant interaction with employee’s suppliers and consumers, contracts are made and completed on a daily basis. √ - Any other relevant answer related to the contracts. Max. (2) 8.2 Explanation of the meaning of a contract - A contract is an oral or written agreement between two or more parties that is enforceable by law. √√ - In a contract, one person offers to do something and the other person accepts the offer. √√ - Imposes rights or obligations on both parties. √√ - Is concluded between parties who have legal capacity and who intend to contract with one another. √√ - There are many different kinds of contracts. √√ - Any other relevant answer related to the meaning of contracts. Max. (6) 8.3.1 Contents of the employment contract - Stipulate the address and contact numbers of the employer. √√ - Stipulate the physical address, contact details as well as other details of the employee such as ID number, age, full names. √√ - The position the employee will hold. √√ - Clearly outline the duties and responsibilities. √√ - The date of commencement of employment. √√ - Ordinary days and hours of work plus arrangements pertaining to overtime. √√ - Details of a probation period if applicable. √√ - Ordinary rate of pay, overtime rate, other cash payments and payments in kind. √√ - Details of deductions to be made for example PAYE, UIF and medical aid. √√ - Frequency of payouts and the mechanics thereof, for example by direct bank deposit. √√ - Details of termination, either period of notice or upon expiry of a fixed term. √√ - Code of conduct or code of ethics. √√ - Disciplinary policy. √√ - Term of contract. √√ - Any other relevant answer related to the contents of employment contract. NOTE: Award a maximum of TWO (2) marks for each fact/content/detail in the employment contract. Max. (12) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 31 8.3.2 Legal requirements of an employment contract - The contract of employment is a contract between √ the employer and the employee. √ - The contract of employment should be in writing. √ - The contract binds √ both the employer and the employee. √ - Parties involved must be of legal age √ and of sound mind. √ - Aspects of the employment contract can be renegotiated √ during the course of employment relationship. √ - The terms of contract must be clear √ and understandable √ to both the employer and the employee. √ - The employment contract should include a code of conduct √ and/or a code of ethics. √ - Specific details of the job remuneration package √ should be clearly explained/stipulated to the employee. √ - The human resources manager must explain √ the terms and conditions of the employment contract. √ - To the employee if deemed necessary. √ - The employment contract should set out clearly √ the conditions, duties and responsibilities. √ of the employer. √ - Employment contract must stipulate what the employee would receive √ in terms of benefits √ and in terms of labour legislation. √ - All company policies, procedures and disciplinary codes √ should form part of the employment contract. √ - The business must allow the employee to read through √ the conditions of services √ and code of conduct √before they sign the contract. √ - Any other relevant answer to the legalities of the employment contract. Max. (12) 8.4.1 Principles of the insurance contract Indemnification √ The object of the indemnification is to place the insured after the loss in the same position that was occupied immediately before the loss. √ Security √ The object of this principle is to provide security in the form of money to the deceased’s dependents, √ for example life insurance. √ Insurable interest √ This means that the insured must stand to lose financially if the insured object is destroyed. √ Utmost good faith √ Goods must be insured for its market value. √ Submax. 4 Submax. 4 Max. (8) Copyright reserved Please turn over

32 BUSINESS STUDIES (EC/NOVEMBER 2017) 8.4.2 Rights and obligations of insurance contract RIGHTS RESPONSIBILITIES Insurer To be paid premiums. √√ To act in good faith. √√ To refuse to indemnify To indemnify the insured for the insured if the terms of losses. √√ the agreement have been breached. √√ To bear the risk of losses or damage. √√ Insured To receive To pay monthly premiums to indemnification for losses the insurer. √√ suffered. √√ To act in good faith. √√ Submax. 4 Submax. 4 Max. (8) 8.5 CONCLUSION - Contracts are drawn up to satisfy two parties and are worded to avoid any misunderstanding later on. √√ - Contracts are binding and are enforceable. √√ - If disputes cannot be resolved, the matter could be taken to court to force the contract breaker to meet the terms of the contract. √√ - Any relevant answer related to the conclusion of contracts. Max. (2) [40] BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Explanation of a contract 6 Contents of the employment contract 12 Legal requirements of employment 12 contract Principles of the insurance contract 8 Max 32 Rights and obligations of insurance 8 contract Conclusion 2 INSIGHT Layout 2 Analysis 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 33 *LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

34 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 9: BUSINESS ROLES (SOCIAL RESPONSIBILITY) 9.1 Introduction - The primary goal of a business is to be profitable, but a business uses many resources in its quest for profitability. √√ - Businesses can reward society by playing a positive role through making contributions to alleviate socio economic problems. √√ - Business involvement in a community is called corporate social responsibility. √√ Max. (2) 9.2 Definition of Corporate Social Responsibility and practical examples - Corporate social responsibility is when a business voluntarily takes steps to improve the quality of life for employees, their families and the local community at large. √√ - CSR encourages business enterprises to consider the interest of society by taking responsibility for the impact of the business’s activities on customers, employees, shareholders, communities and the environment. √√ Submax. 3 Practical Examples - The Nedbank Foundation helped establish Masisikelele and Masihlumisane bakeries, owned and operated by small groups of people in Glenmore community. √ - Avis supports various charities that focus on Education, Health and Welfare, people living with disabilities, and the environment. √ - Outsurance ‘Helping SA OUT’ CSR programmes that were started to help disadvantaged South Africans to get employment. √ - COCA-COLA and the World Wild Fund have combined on the international scale to help preserve and protect freshwater resources throughout the world. √ - Woolworths Holdings has an impressive list of transformational and CSI projects, which vary from surplus products distribution to the orphaned and vulnerable children projects. √ - Any other relevant answer related to practical examples of CSR. Submax. 1 Max. (4) NOTE: Allocate THREE (3) marks for the definition. Award a maximum of ONE (1) mark for the example. Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 35 9.3 Challenges of CSR for both business and communities 9.3.1 Challenges for businesses - Businesses may lack the social skills to solve societal problems. √√ - CSR requires a lot of time, which may influence employee attitude negatively. √√ - The rule of corporate law states that a company’s directors may not participate in activities that would reduce profits. √√ - CSR costs money which a business could have invested more profitably. √√ - CSR can lead to an increase in prices and as result consumers will suffer. √√ - Businesses pay a lot of tax to government so that social issues can be addressed. Therefore, if a business is involved in CSR, it is actually making a double contribution. √√ - CSR can actually cause a business to be corrupt, because businesses can receive kickbacks by investing in the right organisation. √√ - Detailed reports must be prepared on the enterprise’s CSR programmes. √√ - Any other relevant answer related to the challenges of the CSR for businesses. Submax. 10 9.3.2 Challenges for communities - Communities might not take responsibility for their own actions, because they know the business’ CSI initiative will provide for them. √√ - CSR does not always focus on sustainability, so communities might only be helped in the short term. √√ - Communities may become dependent on CSR initiatives. √√ - Businesses might only participate in CSR for the commercial benefit they see in improving their reputation with the public. √√ - CSR may be undertaken to distract the public from the ethical questions posed by the enterprise‘s core operations. √√ - Some businesses care little for the environment and the welfare of employees, so rather than contributing to CSR, they will move production to sweatshops in less well-regulated countries. √√ - Any other relevant answer related to the challenges of CSR for communities. Submax. 10 Max. (20) Copyright reserved Please turn over

36 BUSINESS STUDIES (EC/NOVEMBER 2017) 9.4 Benefits of CSR for both businesses and communities 9.4.1 Benefits of CSI for businesses - Assist in solving socio-economic issues like poverty. √√ - Recruit superior and happy workers who in turn will be productive and help to increase profits. √√ - Improve the perception of the business among its staff. √√ - Improve the image of the business. √√ - Attract and keep customers. √√ - Attract investors who prefer to invest in businesses that are socially responsible. √√ - Make communities a better place to live. √√ - Any other relevant answer related to the benefits of the CSR for the businesses. Submax. 6 9.4.2 Benefits of CSI for communities - CSR improves the standard of living and the quality of life of communities. √√ - CSR projects generate employment by creating jobs. √√ - Education and training can be provided by CSR projects. √√ - SCR projects contribute towards the provision of education, health care and social development.√√ - CSR projects often help to improve infrastructure which is used by all members of the community. √√ - It helps in reducing socio-economic issues. √√ - Any other relevant answer related to the benefits of CSR for communities. Submax. 6 Max. (12) 9.5 Initiatives to address socio-economic issues - Build schools in communities. √√ - Support youth programmes. √√ - Conduct job creation programmes. √√ - Sponsor art and cultural programmes. √√ - Special education efforts, adopting a school and providing most of the school’s needs. √√ - Sponsor sporting activities and sport development programmes. √√ - Community upliftment. √√ - Caring for the environment, creating environmental programmes to emphasise the importance of preserving the environment. √√ - Establish programmes to promote early childhood development. √√ - Teach entrepreneurial skills and offer support to individuals starting new ventures. √√ - Any other relevant answer related to initiatives to address socio- economic issues. Max. (10) Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 37 9.6 CONCLUSION - Despite challenges, most businesses do take their social responsibility very seriously and contribute positively to communities /society. √√ - Successful CSR programmes will improve the general standard of living. √√ - CSR programmes will contribute positively if they are strategically planned and not just hand-outs /contributions given randomly. √√ - Any other relevant conclusion related to CSR. Max. (2) [40] BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Define the term social responsibility and give practical example 4 Challenges of CSR for both businesses and Max. 32 communities 20 Benefits of CSR for both businesses and communities 12 Initiatives to address socio economic issues 10 Conclusion 2 INSIGHT Layout 2 Analysis 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 only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

38 BUSINESS STUDIES (EC/NOVEMBER 2017) QUESTION 10: BUSINESS OPERATIONS (THE CONCEPT OF QUALITY) 10.1 Introduction - Quality refers to the ability of a good /service to satisfy a specific need. √ - It is defined as a degree or standard of excellence, especially of high standard. √ - The quality of goods or service is measured against specified criteria. √ - Any other relevant introduction related to quality. Max. (2) 10.2 Quality in relation to the following business functions Quality in the Human Resource function - Effective recruitment to attract the best candidates. √√ - Fair selection processes. √√ - Employee development to keep up with changes in technology and in the industry. √√ - Employee retention and training. √√ - Fair remuneration. √√ - Any other relevant answer related to quality in relation to human resource function. Submax. 8 Quality in the Administration function - Applying technology efficiently. √√ - Collecting data and information. √√ - Ensuring that captured data or information is accurate. √√ - Processing data and information. √√ - Making information available to management so that management can react to opportunities and threats. √√ - Any other relevant answer related to quality in relation to administration function. Submax. 8 Quality in the Financial function - Obtaining capital from the most suitable source available. √√ - Drawing up budgets. √√ - Ensuring financial records are up to date. √√ - Investigating strategies to increase profitability. √√ - Investing surplus funds effectively. √√ - Any other relevant answer related to quality in relation to financial function. Submax. 8 Copyright reserved Please turn over

(EC/NOVEMBER 2017) BUSINESS STUDIES 39 Quality in the General management function - Creating a suitable mission and vision for the business enterprise. √√ - Organising employees in the most efficient way. √√ - Demonstrating effective leadership. √√ - Communicating with employees. √√ - Involving employees in decision making processes. √√ - Disciplinary action if necessary. √√ - Any other relevant answer related to quality in relation to the general management function. Submax. 8 Quality in the Production function - Choose suitable production system. √√ - Do regular quality checks. √√ - Maintaining equipment. √√ - Adhere to all safety procedures and regulations to contribute to the safety of all factory workers. √√ - Performing inspections on regular basis. √√ - Any other relevant answer related to quality in relation to production function. Submax. 8 10.3 Importance in promoting the image of a business - The image the business presents to prospective customers is very important √ as a poor image creates the impression √ that the product and services could also be poor. √ - Customers associate image of the business with the quality √ of the product √ or service they expect to receive. √ - Large businesses have more funds at their disposal √ to improve √ the image of their businesses, √ from the appearance of their premises √ to the presentation of their staff. √ - Smaller businesses have fewer funds √ at their disposal √ to improve the appearance √ of the premises and staff. √ - This could put the business at a disadvantage, √ depending on the customer type. √ - Any relevant answer related to the importance of promoting the image of a business. Max. (6) 10.4 CONCLUSION - Business enterprises must strive to deliver good quality goods and render quality services. √√ - This objective will be achieved if each business function focuses on quality. √√ - Any other relevant conclusion related to quality. Max. (2) [40] Copyright reserved Please turn over

40 BUSINESS STUDIES (EC/NOVEMBER 2017) BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Explain quality in relation to the following business functions: Quality in the Human resource function 8 Quality in the Administration function 8 Quality in the Financial function 8 Max. 32 Quality in the General management 8 function Quality in the Production function 8 Importance in promoting the image of a 6 business Conclusion 2 INSIGHT Layout 2 Analysis 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 only some of the requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 80 GRAND TOTAL: 300 Copyright reserved Please turn over