Business Studies Grade 11 North West June 2017 QP

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 NATIONAL NATIONAL SENIOR CERTIFICATE SENIOR CERTIFICATE GRADE 11 BUSINESS STUDIES QUESTION PAPER JUNE 2017 KGETLENG AREA OFFICE MARKS: 300 TIME: 3 hours This question paper consists of 13 pages. 1

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 INSTRUCTIONS AND INFORMATION: 1. This question paper consists of THREE sections covering all topics for term 1 and 2. SECTION A: COMPULSORY. SECTION B: Consists of FOUR independent questions. Answer only THREE questions from this section. SECTION C: Consists of THREE questions. Answer only TWO of the THREE questions from this section. 2. Read the instructions for each question carefully and take particular note of what is required. 3. Number the answers correctly according to the numbering system used in this question paper. 4. Begin the answer to EACH question on a new page, for example QUESTION 1-new page, QUESTION 2-new page, et cetera. 5. Non-programmable calculators may be used. 6. Write neatly and legibly. 7. Use the table below as a guideline for marks and time allocation for each question: SECTION QUESTION MARKS TIME A: Multiple-choice Questions and Matching 1 40 30min. Items COMPULSORY B: FOUR direct /indirect questions 2 60 30min. Answer only THREE questions 3 60 30min. 4 60 30min. 5 60 30min. C: THREE essay type questions 6 40 30min. Answer only TWO of the four questions 7 40 30min. 8 40 30min. Total 300 180min. 2

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 SECTION A (Compulsory) QUESTION 1 1.1 Four possible options are provided as answers to the following questions. Choose the answer and write only the letter (A-D) next to the question number (1.1.1-1.1.5) in the ANSWER BOOK, for Example 1.1.6. F 1.1.1. Eskom has a monopoly in supplying electricity in South Africa. It has...over their customers. A. no control B. limited control C. complete control D. limited influence 1.1.2. Mr. Smith runs a tuck shop in Parys, Free State. He has very difficult and uncooperative employees in his business. This challenge in his business falls under...environment. A. macro B. market C. micro D. political 1.1.3. Businesses make use of...to build and sustain business relations. A. lobbying B. networking C. power relations D. bribe 1.1.4. An increase in prices of goods leads to...in consumer buying power. A. a decrease B. an increase C. an equilibrium point D. good behaviour 1.1.5. A canning factory operates in the ... sector. A. primary B. secondary C. tertiary D. Public. 1.1.6. The assets of a company belong to the ... A. company B. shareholders C. promoters 3

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 D. creditors 1.1.7. For the African Nations Cup in 2013, many people were employed to help at the different stadiums and they were left unemployed after the tournament. This kind of unemployment is known as ... A. cyclical unemployment B. seasonal unemployment C. frictional unemployment D. structural unemployment 1.1.8. Interviewing people to gain information can be described as ... source of information. A. secondary B. primary C. tertiary D. mandatory 1.1.9. The constitution of a company is known as : A. ground rules B. memorandum of Association C. memorandum of Incorporation D. articles of Association 1.110 ____refers to favouring relatives when appointing a new employee. A. Collusion B. Intrusion C. Nepotism D. Capitalism 10 x 2 = (20) 4

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 1.2 Match COLUMN A with the correct description in COLUMN B. Write the letter only. COLUMN A COLUMN B 1.2.1 Initial public offerings A. Boundaries in society that prevent certain people from attaining equal status. 1.2.2 Viability B. Switching power off for a period of time to save 1.2.3 Disputes resources 1.2.4 Load shedding C. A company invites its shareholders to buy 1.2.5 Inequality shares. D. Ability to have sustainable profits over a period of time E. An offer of securities to the public for the first time. F. Disagreements or arguments (5x2) (10) 1.3 Choose the correct word from the brackets 1.3.1 This company is owned and managed by 1-10 members (Close Corporation/ Personal Liability Company). 1.3.2 (Alliances/Acquisitions) is when a business starts a venture with another business. 1.3.3 (Theft/ Mismanagement of funds) involves taking for personal use something that belongs to the business. 1.3.4 The right to use goods provided by the lessor for a specific time (Outsourcing/ Leasing). 1.3.5 Companies are registered at the (Companies and Intellectual Property Commission/Department of Trade and Industry). (2x5) (10) TOTAL SECTION A: [40] 5

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 SECTION B: Choose any THREE questions from this section QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Read the case study below and answer the questions that follow: Tshepo and Smuts Shop and Go trading enterprise have hired ten employees. Some of the employees are frequently absent from work due to HIV/AIDS related illnesses. Tshepo and Smuts are not monitoring and supporting their employees. The business is experiencing a decline in profits due to an increase in the petrol price. The government has passed a new law that requires Tshepo and Smuts to send their employees for skills development and training. 2.1.1 Identify the business environments affected by the above challenges in the case study, and mention the challenges posed by each of the business environments. Recommend ways in which Tshepo and Smuts can control the identified challenges. Use the following table in your answer sheet for your answers. Business environment Challenge Recommendation (16) 2.2 Briefly explain why information management is important for businesses (4) 2.3 Suggest any FIVE ways businesses can get involved in the macro environment (10) 2.4 Discuss FIVE functions of the trade unions. (10) 2.5 Differentiate between a copyright and a patent. (4) 2.6 Explain the relationship between information management and strategic responses (4) 2.7 Read the scenarios below and answer the questions that follow. SCENARIO 1 Mandla’s Buy and Braai has received an instruction from the local municipality that the business must close at 5pm instead of 8pm, including weekends. He has requested a meeting with the management of the municipality regarding this issue, and has requested the presence of community leaders in his meeting with the local municipality. 6

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 SCENARIO 2 Queen wants to open a car wash business venture and she does not have the necessary skills to run the business. She spoke to entrepreneurs from different cultures, ages, and with special interests. SCENARIO 3 Dicky is a manager at Vukuzenzele Enterprise, and he has the ability to control the distribution of rewards that are valued by others, such as money, promotions or vacation time. He knows how to go about attracting large businesses to invest in his enterprise. 2.7.1 Classify each of the above scenarios under, power relationship, lobbying or networking and supporting your answer. (12) [60] QUESTION 3: BUSINESS VENTURES 3.1 Study the picture below and answer the questions that follow KARISHMA LTD. 3.1.1 What form of ownership does the above picture depict? (1) 3.1.2 Describe the characteristics of the form of ownership identified in QUESTION 3.1.1 (8) 3.1.3 Tabulate the differences between the form of ownership identified in QUESTION 3.1.1 and Maxwell CC under the following subheading: 7

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 a) Legal formation b) Number of owners c) Owners are known as d) Sources of capital (8) 3.2 Read the following case study and answer the questions that follow: Beaux-Arts was founded in 1996 by Linda Lloyd in Kempton Park. Linda started an art and craft service offered to schools for children from three years of age. She operated as a pilot franchise for a year and thereafter became a member of the Franchise Association of South Africa. By June 2001 she had franchises servicing schools in 101 cities, towns and municipalities throughout the country. She does the training herself, which includes product training, business and marketing skills. Franchisees and their employees also retrieve on-going training by specialists in their field of pottery, arts and crafts to ensure the use of appropriate skills. Although Linda does everything in the business she feels overwhelmed with tasks like the business accounts and dealing with salaries, because she does not have all the necessary skills to do it well. 3.2.1 Discuss the advantages and disadvantages of a franchise. (8) 3.2.2 Linda wants to outsource some activities undertaken by her as a franchisor. Recommend ONE activity she could outsource and supply a reason for your choice. (4) 3.3 Outline the steps needed to be considered during project planning. (6) 3.4 The graph below represents the sales volumes of tracksuits at Stanger Manor Secondary Sales 3.4.1 Identify the type of graph illustrated above (1) 3.4.2 Indicate the highest sales percentage; show your calculations (2) 3.4.3 Discuss the advantages of using visual aids when doing a presentation (6) 20% 8

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 3.4.4 Suggest ways a presenter can use to respond to questions in a non-aggressive and professional manner (8) 3.5 You are required to write a report after doing a representation. Outline the steps you must follow when writing a report. (8) [60] QUESTION 4: BUSINESS ROLES 4.1 Read the scenario below and answer the questions that follow: Greg’s Vehicles and Spares Greg’s vehicles and spares is a company that sells second hand cars and spare parts for all kinds of cars. The owner of the company buys stolen car parts from dealers. The employees make promises they cannot keep and they are always late for work. 4.1.1 Quote from the scenario above unethical and unprofessional business practices . Example from the scenario Unethical or Unprofessional (4) 4.1.2 Recommend ways in which Greg’s Vehicles and Spares can conduct business in a responsible and professional manner. (6) 4.1.3 Outline FOUR principles of professionalism and ethics. (8) 4.2 Read the statement below and answer the questions that follow: Creativity is very important in any business so that the business can deal with problems pro-actively. 4.2.1 Differentiate between routine thinking versus creative thinking. (4) 4.2.2 Mention FOUR aspects that serve as mental blocks to creative thinking (8) 9

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 4.3 Discuss the steps that business management can follow in order to deal with a crises. (10) 4.4 Briefly outline and discuss FIVE reasons for resisting change (10) 4.5 Employees resist change. Apply John Kotters steps of managing change in the workplace. (10) [60] QUESTION 5: MISCELLANEOUS TOPICS 5.1 Mention FIVE challenges of the micro environment. (10) 5.2 Read the following statement and identify the socio-economic issue represented by each statement. 5.2.1 This increases the costs of raw materials and other inputs. 5.2.2 A condition of having little or no money to buy goods and services. 5.2.3 The characteristics of a population such as age, gender, education and income level. 5.2.4 This is crime that is committed by a person of high status during the course of doing his or her tasks. 5.2.5 Goods enter South Africa from other countries at a price that is cheaper than the normal value of the goods. (10) 5.3 Differentiate between mergers and acquisition (takeovers). (4) 5.4 Give THREE examples of how businesses may lobby. (6) 5.5 Study the picture below and answer the questions that follow. 10

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 5.5.1 Identify the business sector that is responsible for ensuring that the above semi- finished product becomes a final product. (2) 5.5.2 Use the above picture and explain the relationship between the three business sectors. (10) 5.6 Read the case study below and answer the questions that follow. Assisting brand owners in their fight against counterfeiting. Counterfeiting continues to make the news. Locally, we recently had a report of a R10 million bust in the Vereeniging area during which fake soaps, shampoos, clothing and bags were seized. One of the enterprising methods employed by the counterfeiters these days is to fake the packaging of well-known brands by using foreign languages, which leads consumers to believe that these are genuine goods. So what can you, the brand owner, do when goods are targeted? You can rely on your trade mark registration and sue for trade mark infringement. You may even have a case of copyright infringement; for example, if you can show that some artwork (your logo) has been copied. It is said that goods are counterfeit in cases where an unauthorised party uses a registered trade mark in relation to goods covered by the registration. Lauren Frizelle, Adapted from The Times ( September 2013) 5.6.1 Quote from the case study the definition of counterfeiting. (1) 5.6.2 Quote from the case study any product that can be counterfeited. (1) 5.6.3 Explain how people counterfeit goods. (2) 5.6.4 Mention TWO ways, (from the case study), that business can avoid counterfeiting. (2) 5.6.5 Differentiate between a trademark and copyright. (4) 11

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 5.6.6 Explain the meaning of copyright and trademark infringement. (4) 5.6.7 Mention any TWO purposes of the trade mark. (4) [60] TOTAL FOR SECTION B: 180 SECTION C Choose any TWO questions from this section QUESTION 6: BUSINESS ENVIRONMENTS The success of business ventures depends on their ability to control the elements of the market environment. It is important that businesses become well knowledgeable about the dynamics of the market environment. Mention and discuss the challenges of the market environment, and recommend ways in which businesses can deal with each of these challenges. (40) QUESTION 7: BUSINESS VENTURES Lesego is passionate about the interior designing of houses and wanted to start a business called LES (Pty) LTD as a designer. Lesego with an architect and a builder decided to start the business, to provide a one stop service for clients who want to build a house. They decided to start a business which allows opportunity for growth to increase the shareholders with different rights when it comes to profits, voting rights and claims on assets if the company fails. Identify the form of ownership and give Lesego and the other shareholders some advice on the following: - Name of the business - Capital - Legal entity - Taxation - Continuity - Management - Formation Procedures - Benefits of establishing a company (40) 12

BUSINESS STUDIES GRADE 11 NW/JUNE EXAM 2017 QUESTION 8: BUSINESS ROLES Zhi owns a mining company and intents to open another branch in Krugersdorp. Due to the recent change in the economy most residents are unskilled and unemployed. The mine will there for create employment and skills to the community. But Zhi’s current employees feel the she can rather use those funds to increase their salaries and help them to improve their standard of living. Because of this employees are absent a lot lately and the moral is very low at the mine. As a consultant to Zhi you believe that he can overcome his challenges. Justify how this can be done in well balanced report Include the following in your report • Discuss the role of creative thinking to solve complex business problems • Apply the problem solving steps to solve Zhi’s challenges • Explain how businesses can apply the Delphi techniques and Forced-Field analysis (40) TOTAL FOR SECTION C: [80] GRANDTOTAL: 300 13