# Business Studies Grade 11 P1 November Mock Exam 2 2026 Memo > Grade 11 Business Studies Paper 1 memorandum from the November Mock Exam 2 2026 (English), 24 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/grade-11-business-studies-2026-november-mock-exam-2-memorandum-paper-1/5f375430-61e1-45d2-aa37-8b8263291ddc - Updated: 2026-10-29 - Subject: Business Studies - Grade: Grade 11 - Language: English - Document type: Memorandum - Year: 2026 - Exam period: November Mock Exam 2 - Paper: 1 - Publisher: Hlayiso - Curriculum: CAPS - Pages: 24 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 11](https://www.hlayiso.com/library/grade-11) › [Business Studies](https://www.hlayiso.com/library/grade-11/business-studies) › [Business Studies Grade 11 P1 November Mock Exam 2 2026 Memo](https://www.hlayiso.com/library/grade-11-business-studies-2026-november-mock-exam-2-memorandum-paper-1/5f375430-61e1-45d2-aa37-8b8263291ddc) ## About this document Business Studies · Grade 11 · November Mock Exam 2 · 2026 · English. Memorandum, 24 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Matching paper and memo - [Grade 11 Business Studies P1 November 2026 Mock 2](https://www.hlayiso.com/library/grade-11-business-studies-2026-november-mock-exam-2-question-paper-paper-1/f2b165c1-6d22-4ec3-9f4e-8393814d207a) — QP · 2026 · Eng ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Mock hlayiso mock exams Practice Series: Grade 11 Exam Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 11 BUSINESS STUDIES P1 NOVEMBER EXAMINATION 2026 (MOCK) MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 24 pages. Copyright reserved Please turn over ### Page 2 Business Studies/P1 2 Hlayiso/Mock 2026 NSC – Marking Guidelines NOTES TO MARKERS These notes are provided to ensure fair, consistent and reliable marking of this mock examination. 1. Candidates’ responses must be in full sentences for SECTIONS B and C, depending on the nature of the question. 2. The marking guidelines are comprehensive but not exhaustive. Give credit to answers that are correct but use a different expression, come from another credible source, are original, or use a different approach. There is only ONE correct answer for each item in SECTION A. 3. Where an answer is unclear or shows some understanding, award part-marks (e.g. one mark instead of two). 4. The word ’Sub-max’ is used to allocate marks within a question or sub-question. The word ’Max’ shows the maximum marks for the question; circle the subtotal on the right-hand side as guided by ’Max’. 5. In an indirect question (scenario-based), the theory and the response must be relevant and related to the question. Responses that must be quoted from a scenario receive ONE mark each. 6. Do not give credit for repeated facts. Indicate repetition with an ’R’. 7. Cognitive verbs: (a) Name, state, give, list, outline, quote, identify, motivate, √√ recommend, suggest and advise do not usually require much depth; the marks ( ) appear at the end of each fact. (b) Define, describe, explain, discuss, elaborate, distinguish, differentiate, analyse and evaluate require a greater depth of√understanding; ticks are separated, e.g. ’Product development is a √ growth strategy , where businesses introduce new products into existing markets.’ 8. Where a specific number of facts is required (e.g. ’any FOUR’), mark only the FIRST responses up to that number and draw a line through the rest. Mark only the FIRST answer where a question requires ONE answer. 9. Where the number of facts is specified for describe/discuss/explain questions in SECTION B: fact (2 marks) and explanation (1 mark). In SECTION C the explanation earns 2 marks. Copyright reserved Please turn over ### Page 3 Business Studies/P1 3 Hlayiso/Mock 2026 NSC – Marking Guidelines 10. SECTION C: The breakdown of essay marks is as follows: Introduction, Content, Conclusion Max 32 Insight 8 TOTAL 40 Insight (LASO) consists of the following components: Layout/ Is there an introduction, a body with 2 Structure (L) paragraphs/sub-headings and a conclusion? The words INTRODUCTION and CONCLUSION must be stated and supported by an explanation. Analysis and Can the candidate break down the question into 2 interpretation headings/sub-headings and interpret it correctly? All (A) headings addressed: 1 mark. Interpretation (16 to 32 marks for facts): 1 mark. Synthesis (S) Are relevant decisions/facts/responses made? Only 2 relevant facts in two or more sub-questions: 2 marks (no ’-S’). Some irrelevant facts/only one sub-question with relevant facts: 1 mark (one ’-S’). No relevant facts: 0 marks (two ’-S’). Originality (O) Is there evidence of examples, based on recent 2 information/current trends and developments (not older than two years), in any TWO of the four sub-questions? TOTAL FOR INSIGHT 8 11. Indicate insight in the left-hand margin with a symbol (L, A, -S and/or O). Mark all relevant facts until the SUB-MAX/MAX in a subsection is reached, write SUB-MAX/MAX, but continue reading for originality (’O’). At the end of each essay show the allocation as follows: CONTENT MARKS Facts 32 (max.) L 2 A 2 S 2 O 2 TOTAL 40 12. No marks are awarded for content repeated from the introduction and conclusion. Award TWO marks for complete sentences and ONE mark for phrases, incomplete sentences and vague answers. Copyright reserved Please turn over ### Page 4 Business Studies/P1 4 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION A QUESTION 1 √√ 1.1 1.1.1 C √√ 1.1.2 B √√ 1.1.3 C √√ 1.1.4 C √√ 1.1.5 A (5 x 2) (10) √√ 1.2 1.2.1 no √√ 1.2.2 market √√ 1.2.3 demographics √√ 1.2.4 loading √√ 1.2.5 networking (5 x 2) (10) √√ 1.3 1.3.1 C √√ 1.3.2 E √√ 1.3.3 G √√ 1.3.4 D √√ 1.3.5 A (5 x 2) (10) [30] BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 TOTAL SECTION A: 30 Copyright reserved Please turn over ### Page 5 Business Studies/P1 5 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION B Mark the answers to the FIRST TWO questions only. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Components of the micro environment √ - Vision and mission statement √ - Organisational culture √ - Organisational resources (human, financial, physical, technological) √ - Management and leadership √ - Business functions √ - Organisational structure Any other relevant answer related to the components of the micro environment. NOTE: Mark the first THREE (3) only. (3 x 1) (3) 2.2 Functions of trade unions - Negotiate with employers √√ for better wages/salaries and working conditions for their members. √√ - Represent employees during disciplinary hearings/grievances/disputes. √√ - Protect employees against unfair dismissal/unfair labour practices. √√ - Take part in collective bargaining with employers/employer organisations. √√ - Organise legal strikes/protest actions when negotiations fail. √√ - Promote the health and safety of employees in the workplace. √√ - Keep members informed about labour laws and their rights. - Influence labour √√ legislation/economic policy through bodies such as NEDLAC. √√ - Provide benefits to members, e.g. funeral cover/bursaries/legal aid. Any other relevant answer related to the functions of trade unions. Max (6) Copyright reserved Please turn over ### Page 6 Business Studies/P1 6 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.3 2.3.1 and 2.3.2: Challenges, business environments and extent of control CHALLENGES (2.3.1) BUSINESS EXTENT OF ENVIRONMENT CONTROL (2.3.2) (2.3.2) √ √ 1. Several packers often arrive late Micro Full control and ignore the √ instructions of their supervisors. √ 2. A new business from Mbombela Market Limited/Partial √ sells dried mangoes at lower prices control to the same √ supermarkets that KAP supplies. √ √ 3. The government increased the Macro No control national minimum wage for farm and packhouse workers, which √ raised KAP’s labour costs. Sub-max (3) Sub-max (3) Sub-max (3) NOTE: 1. Mark the first THREE (3) challenges only. 2. Award marks for the challenges even if the quotes are incomplete. 3. Award marks for the environment and extent of control only if they match the challenge quoted. 4. Accept some/little/limited/partial control for the market environment. (3 + 6) (9) 2.4 Purpose of the Labour Relations Act (LRA) √ √ - Promotes fair labour practices between employers and employees. √ - Gives effect to the right of employees √ to join trade unions and of employers to join employer organisations. √ - Provides a framework √ for collective bargaining between trade unions and employers. √ √ - Regulates the right to strike and the right of employers to use lock-outs. - Establishes √ the Commission for Conciliation, √ Mediation and Arbitration (CCMA) to resolve labour disputes. √ - Provides for the establishment of√bargaining councils/workplace forums to promote employee participation. √ √ - Protects employees against unfair dismissal. √ - Provides for √ Labour Courts and the Labour Appeal Court to settle labour disputes. √ √ - Promotes labour peace and orderly collective bargaining. Any other relevant answer related to the purpose of the LRA. Max (6) Copyright reserved Please turn over ### Page 7 Business Studies/P1 7 Hlayiso/Mock 2026 NSC – Marking Guidelines 2.5 Socio-economic issues √√ 2.5.1 Corruption/Bribery/Unethical business practice (2) √√ 2.5.2 Illiteracy/Lack of skills (2) √√ 2.5.3 Money laundering (2) 2.6 Link between the primary, secondary and tertiary sectors √ - The primary sector extracts raw√materials from nature, e.g. farming/mining/fishing/forestry. √ - The secondary sector depends √ on the primary sector for raw materials to manufacture finished products. √ - The secondary sector turns raw materials into finished/semi-finished √ products , e.g. a sugar mill processes sugar cane into sugar. √ - The tertiary sector provides services √such as transport/banking/insurance/retail to the primary and secondary sectors. √ - The tertiary sector √distributes the finished products from the secondary sector to the consumers. √ - The sectors √ are interdependent ; a problem in one sector affects the other sectors. - E.g. a farmer (primary) sells wheat to a mill/bakery (secondary), and the bread is √√ transported and sold by a supermarket (tertiary). Any other relevant answer related to the link between the primary, secondary and tertiary sectors. NOTE: Award a maximum of TWO (2) marks if only the three sectors are described without showing the link between them. Max (6) 2.7 Ways in which businesses can overcome competition in the market √√ - Improve the quality of products/services. √√ - Offer better/after-sales service to customers. √√ - Lower prices/offer discounts where possible without reducing quality. √√ - Use effective advertising/sales promotions to attract customers. √√ - Develop new/unique products to differentiate the business from competitors. √√ - Conduct market research to understand the needs of customers. √√ - Build customer loyalty through loyalty programmes/rewards. √√ - Form strategic alliances/merge with other businesses. √√ - Train employees to improve productivity and service. Any other relevant answer related to ways to overcome competition in the market. Max (4) [40] Copyright reserved Please turn over ### Page 8 Business Studies/P1 8 Hlayiso/Mock 2026 NSC – Marking Guidelines BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 3 2.2 6 2.3 9 2.4 6 2.5.1 2 2.5.2 2 2.5.3 2 2.6 6 2.7 4 TOTAL 40 QUESTION 3: BUSINESS OPERATIONS 3.1 Marketing activities √ - Buying √ - Selling √ - Transport/Distribution √ - Storage √ - Financing √ - Risk bearing √ - Standardisation and grading √ - Market research/information √ - Product development Any other relevant answer related to marketing activities. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.2 Role of intermediaries in the distribution process √√ - Buy products in bulk from manufacturers and sell them in smaller quantities. √√ - Make products available at places that are convenient for consumers. √√ - Store/Keep stock until consumers need the products. √√ - Transport products from manufacturers to consumers. √√ - Provide information/feedback about consumer needs to manufacturers. √√ - Promote/Advertise the products of the manufacturer. √√ - Bear some of the risk of damage/theft/products not being sold. √√ - Offer credit to customers/other intermediaries. Any other relevant answer related to the role of intermediaries. Max (4) Copyright reserved Please turn over ### Page 9 Business Studies/P1 9 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.3 Pricing techniques √√ 3.3.1 Discount/Markdown/Promotional pricing (2) √√ 3.3.2 Price skimming/Skimming pricing (2) 3.4 Production control and safety 3.4.1 Aspects of production control applied by SB - The production √ manager sets a target of 4 000 loaves of bread for each shift. - At the end of every shift the √ supervisor counts the loaves and compares the output with the target. - SB moved part of the order to the√night shift so that the supermarkets still received their bread on time. NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses quoted from the scenario. (2 x 1) (2) 3.4.2 Precautionary measures when handling machinery √√ - Train employees to use the ovens/mixers/machinery correctly. - Provide√√protective clothing, e.g. heat-resistant gloves/aprons/safety shoes. √√ - Service and maintain machinery regularly. √√ - Display safety instructions/warning signs next to the machines. √√ - Install safety guards/emergency stop buttons on machines. √√ - Switch off/unplug machines before cleaning or repairing them. √√ - Only trained/authorised employees may operate the machines. - Provide √√fire extinguishers and first-aid kits, and train employees in their use. √√ - Keep the area around the machines clean and free of obstacles. Any other relevant answer related to precautionary measures when handling machinery. Max (4) Copyright reserved Please turn over ### Page 10 Business Studies/P1 10 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.5 Total quality management (TQM) as part of the quality management system √ - TQM is an integrated√system that involves all employees and all departments in improving quality. √ √ - Every employee is responsible for the quality of his/her own work. √ √ - Focuses on continuous improvement of products, services and processes. √ √ - Aims to satisfy/exceed the needs and expectations of customers. √ - Management√ is committed to quality and leads the quality improvement process. √ √ - Employees are trained to improve their skills and the quality of their work. √ √ - Uses quality circles/teamwork to identify and solve quality problems. √ - Quality√is built into every stage of production , which reduces waste and costs. Any other relevant answer related to TQM as part of the quality management system. Max (6) 3.6 Recruitment 3.6.1 Recruitment method used by MA √√ External recruitment Motivation - MA placed√an advertisement in a regional newspaper and on an online job portal. √ - It also asked a recruitment agency to find suitable candidates. NOTE: 1. Mark the first quote only. 2. Award marks for the method even if the quote is incomplete. 3. Do not award marks for the motivation if the method was incorrectly identified. (2 + 1) (3) 3.6.2 Recruitment procedure √ - Identify the√vacancy and decide whether to fill it internally or externally. √ - Do a job analysis √ to draw up the job description and job specification. √ - Decide on the recruitment sources/media √ , e.g. newspapers/websites/agencies. √ - Draw up an advertisement √ with the job title, duties, requirements, salary and closing date. √ √ - Place the advertisement in the selected media. √ √ - Applicants send CVs/application forms before the closing date. √ √ - Keep a record of all applications received for the selection process. Any other relevant answer related to the recruitment procedure. NOTE: The steps do not have to be in sequence. Max (6) Copyright reserved Please turn over ### Page 11 Business Studies/P1 11 Hlayiso/Mock 2026 NSC – Marking Guidelines 3.7 Difference between piecemeal and time-related salary determination PIECEMEAL TIME-RELATED Employees are paid according √ to the Employees √ are paid according to the number of√units/items that they time spent at work, e.g.√ per produce. hour/day/week/month. √ Encourages √ employees√to work Employees earn the same√amount faster to earn more. regardless of their output. √ √ Quality may suffer because√ Employees may work slowly , √ as employees focus on quantity. payment is not linked to output. Used in factories/agriculture, √√e.g. Used for most permanent employees, √√ sewing shirts/picking fruit. e.g. teachers/receptionists. Sub-max (2) Sub-max (2) Any other relevant answer related to the difference between piecemeal and time-related salary determination. NOTE: 1. The answer does not have to be in tabular format. 2. The difference must be clear. 3. Award a maximum of TWO (2) marks if the difference is not clear/only one method is explained. Max (4) 3.8 Employee benefits √ - Unemployment Insurance Fund (UIF) √ - Compensation Fund (COIDA) √ - Pension/Provident fund √ - Medical aid √ - Housing/Home-owner’s allowance √ - Travel/Car allowance √ - Funeral benefits/Group life insurance √ - Bonuses/Thirteenth cheque Any other relevant answer related to employee benefits. NOTE: Mark the first THREE (3) only. (3 x 1) (3) [40] Copyright reserved Please turn over ### Page 12 Business Studies/P1 12 Hlayiso/Mock 2026 NSC – Marking Guidelines BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 4 3.3.1 2 3.3.2 2 3.4.1 2 3.4.2 4 3.5 6 3.6.1 3 3.6.2 6 3.7 4 3.8 3 TOTAL 40 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Examples of contemporary legislation √ - Labour Relations Act (LRA) √ - Basic Conditions of Employment Act (BCEA) √ - Employment Equity Act (EEA) √ - Skills Development Act (SDA) √ - Occupational Health and Safety Act (OHSA) √ - Compensation for Occupational Injuries and Diseases Act (COIDA) √ - Unemployment Insurance Act (UIA) √ - Consumer Protection Act (CPA) √ - National Credit Act (NCA) √ - Broad-Based Black Economic Empowerment Act (B-BBEE) Any other relevant answer related to contemporary legislation. NOTE: Mark the first TWO (2) only. (2 x 1) (2) Copyright reserved Please turn over ### Page 13 Business Studies/P1 13 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.2 Solutions to piracy SOLUTIONS TO MOTIVATIONS PIRACY √√ 1. Patent TWF registered its new filter invention with the CIPC, so that no other√business may make, use 4.2.1 or sell it for 20 years. √√ 2. Trademark TWF also registered its name and blue raindrop logo so that √ customers can easily recognise its products. Sub-max (4) Sub-max (2) NOTE: 1. Mark the first TWO (2) only. 2. Award marks for the solutions even if the quotes are incomplete. 3. Do not award marks for the motivation if the solution was incorrectly identified. Max (6) 4.3 Difference between a strike and a go-slow STRIKE GO-SLOW √ Employees √ collectively refuse to Employees continue working, but √ work to force √the employer to meet deliberately work slower than usual. their demands. √ √ √ Production stops completely. Production √ continues at a lower rate. √ A protected strike √ must follow the LRA √ A go-slow is not a protected strike procedures, e.g. a strike notice. and employees √ may face disciplinary action. √ Employees are not paid for √ the days Employees √ usually still receive their √ on strike (no work, no pay). wages, although less work is done. Sub-max (2) Sub-max (2) Any other relevant answer related to the difference between a strike and a go-slow. NOTE: 1. The answer does not have to be in tabular format. 2. The difference must be clear. Max (4) Copyright reserved Please turn over ### Page 14 Business Studies/P1 14 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.4 Benefits of being involved in the macro environment √ √ - Businesses can influence government policies/legislation in their favour. √ √ - They are informed early about changes in laws/economic conditions. √ √ - They can plan ahead to reduce the negative impact of macro challenges. √ - Social responsibility √ projects improve the image of the business and attract customers. √ - Businesses may receive √ government incentives/tenders/tax benefits for community involvement. √ - Investing in √ the community creates a skilled workforce/stable market for the business. √ - Involvement √ in other countries/exports opens new markets and increases sales. Any other relevant answer related to the benefits of being involved in the macro environment. Max (4) 4.5 Information management as a way of adapting to challenges √ - Businesses gather √ relevant, up-to-date information about changes in their environments. √ - Information is used to identify challenges/opportunities √ early so that the business can respond quickly. √ - Businesses invest √in information technology/systems to store, process and share information. √ - Market research provides information √ on the changing needs of customers and the actions of competitors. √ √ - Information must be communicated to the decision-makers in the business. √ - Good information √ management leads to better decisions and strategic planning. Any other relevant answer related to information management as a way of adapting. Max (4) BUSINESS OPERATIONS 4.6 Categories of consumer goods √√ 4.6.1 Convenience goods (2) √√ 4.6.2 Unsought goods (2) Copyright reserved Please turn over ### Page 15 Business Studies/P1 15 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.7 Difference between quality control and quality assurance QUALITY CONTROL QUALITY ASSURANCE √ Inspection of the final product to Checks are carried out √ during and after check that it√meets the required the production process √ to ensure that standards. standards are met. √ √ Defects are found√ after the product Aims to prevent defects/mistakes √ has been made. before they occur. Usually done by inspectors/the √√ quality All employees are responsible √√ for control department. quality at every stage. Sub-max (2) Sub-max (2) Any other relevant answer related to the difference between quality control and quality assurance. NOTE: 1. The answer does not have to be in tabular format. 2. The difference must be clear. Max (4) 4.8 Human resources activities √√ 4.8.1 Placement NOTE: Do not accept selection/recruitment/induction. (2) 4.8.2 Selection procedure √√ - Receive all applications/CVs and sort them. - Screen the applications √√ against the job specification/minimum requirements. √√ - Draw up a shortlist of suitable candidates. - Check the references/qualifications/criminal √√ record of shortlisted candidates. - Conduct√√preliminary interviews/tests, e.g. skills/aptitude/practical tests. √√ - Invite the shortlisted candidates for an interview. √√ - Conduct medical examinations where required by the job. - Choose the most √√ suitable candidate and make a written offer of employment. √√ - Inform unsuccessful candidates of the outcome. Any other relevant answer related to the selection procedure. NOTE: The steps do not have to be in sequence. Max (6) Copyright reserved Please turn over ### Page 16 Business Studies/P1 16 Hlayiso/Mock 2026 NSC – Marking Guidelines 4.9 Ways in which businesses can comply with the BCEA √√ - Do not allow employees to work more than 45 ordinary hours per week. - Pay√√overtime at the correct rate, i.e. 1.5 times the normal wage/agreed time off. - Give employees at least 21√√ consecutive days of annual leave per year/one day for every 17 days worked. √√ - Allow employees sick leave of 30 days in a three-year cycle. √√ - Grant at least four consecutive months of maternity leave. - Grant family responsibility √√ leave, e.g. when a child is born/ill or a close family member dies. - Give employees √√ a meal interval of at least one hour after five hours of continuous work. √√ - Pay double the normal wage for work on a Sunday/public holiday. - Give employees √√ written particulars of employment/a contract when they start working. √√ - Give the correct notice period before termination of employment. √√ - Do not employ children under the age of 15. √√ - Keep records of the working hours and remuneration of each employee. Any other relevant answer related to ways to comply with the BCEA. Max (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 2 4.2.1 6 4.3 4 4.4 4 4.5 4 4.6.1 2 4.6.2 2 4.7 4 4.8.1 2 4.8.2 6 4.9 4 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over ### Page 17 Business Studies/P1 17 Hlayiso/Mock 2026 NSC – Marking Guidelines SECTION C Mark the answer to the FIRST question only. QUESTION 5: BUSINESS ENVIRONMENTS (ADAPTING TO CHALLENGES OF THE BUSINESS ENVIRONMENTS) 5.1 Introduction - Businesses√ lobby to influence the decisions and policies that affect their industry. √ - Businesses form power relationships to strengthen their position in the market. - Lobbying allows businesses √ to influence the decisions of government/authorities. - Businesses √can have a direct influence on the business environment to reduce challenges. Any other relevant answer related to reasons for lobbying/power relationships/types of lobbying/direct influence on the environment. Any (2 x 1) (2) 5.2 Reasons why businesses lobby - To influence government √√ legislation/policies in favour of the business/industry. - To√√protect the interests of the industry against laws/regulations that may harm it. - To obtain√√favourable tariffs/import duties, e.g. protection against cheap imports. - To get early √√ knowledge of changes in legislation/policy so that the business can plan ahead. √√ - To obtain government support/incentives/subsidies/tenders. √√ - To create awareness of the problems/challenges that the industry faces. √√ - To build relationships with decision-makers/government representatives. - To reduce√√ the negative impact of macro environment challenges on the business. Any other relevant answer related to the reasons why businesses lobby. Max (8) Copyright reserved Please turn over ### Page 18 Business Studies/P1 18 Hlayiso/Mock 2026 NSC – Marking Guidelines 5.3 Ways in which businesses can form power relationships Strategic alliance agreements √ - Two or more √ businesses agree to work together to achieve common objectives. √ - The businesses remain separate/independent √ but share resources/expertise/costs. √ - Allows businesses √ to compete with larger competitors and to enter new markets. √√ - E.g. a bank and a retailer agree that customers may withdraw cash at the tills. Any other relevant answer related to strategic alliance agreements. Sub-max (4) Persuasion of large investors √ √ - Businesses persuade large investors/shareholders to invest in the business. √ - Large investors may be invited to serve on the board √ of directors , giving the business access to their expertise and contacts. √ - Investors √ with influence can help the business to obtain credit/finance more easily. √ √ - The business gains credibility/power in the market. Any other relevant answer related to persuasion of large investors. Sub-max (4) Influencing government representatives √ - Businesses build good relationships √ with government officials/representatives. √ - They present their views/needs √ when government drafts new policies/legislation. √ - Businesses can√influence decisions that favour their industry, e.g. tariffs on cheap imports. √ - Businesses √ may serve on government advisory bodies/forums, e.g. NEDLAC. Any other relevant answer related to influencing government representatives. Sub-max (4) Max (12) Copyright reserved Please turn over ### Page 19 Business Studies/P1 19 Hlayiso/Mock 2026 NSC – Marking Guidelines 5.4 Types of lobbying Hedging against inflation √ - Businesses √ put pressure on the government/SARB to keep inflation/interest rates low. √ - Businesses invest in assets that keep √their value, e.g. property/shares, to protect themselves against inflation. Bargaining sessions between management and trade unions √ - Management and trade unions √ negotiate to reach agreements on wages/working conditions. √ √ - This helps to avoid strikes/conflict and promotes labour peace. Influencing supervisory bodies/regulators √ - Businesses try to influence √ regulators to make rules/decisions that are favourable to their industry. √ - E.g. the mining √ industry lobbies the regulator on new safety/environmental regulations. Influencing large consumers √ - Businesses √ try to influence large consumers/buyers to support their products. √ √ - E.g. offering bulk discounts/long-term contracts to secure large orders. Influencing company representatives/managers √ - Businesses try to influence √ the representatives/managers of other businesses to support their interests. Any other relevant answer related to the types of lobbying. NOTE: Mark the first THREE (3) types of lobbying only. Sub-max (4) for each type. Max (12) Copyright reserved Please turn over Text truncated here. 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