Business Studies Grade 12 Paper 1 NSC November Mock 2026 Memo

Copyright reserved Please turn over hlayiso mock exams Practice Series: Grade 12 NSC Preparation WWW.HLAYISO.COM NATIONAL SENIOR CERTIFICATE GRADE 12 BUSINESS STUDIES P1 MOCK EXAMINATION 2026 MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 24 pages.

Business Studies/P1 2 NSC – Marking Guidelines Hlayiso/Mock 2026 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

Business Studies/P1 3 NSC – Marking Guidelines Hlayiso/Mock 2026 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/ Structure (L) Is there an introduction, a body with paragraphs/sub-headings and a conclusion? The words INTRODUCTION and CONCLUSION must be stated and supported by an explanation. 2 Analysis and interpretation (A) Can the candidate break down the question into headings/sub-headings and interpret it correctly? All headings addressed: 1 mark. Interpretation (16 to 32 marks for facts): 1 mark. 2 Synthesis (S) Are relevant decisions/facts/responses made? Only 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’). 2 Originality (O) Is there evidence of examples, based on recent information/current trends and developments (not older than two years), in any TWO of the four sub-questions? 2 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

Business Studies/P1 4 NSC – Marking Guidelines Hlayiso/Mock 2026 SECTION A QUESTION 1 1.1 1.1.1 B √√ 1.1.2 C √√ 1.1.3 B √√ 1.1.4 C √√ 1.1.5 D √√ (5 x 2) (10) 1.2 1.2.1 Consumer Protection √√ 1.2.2 strength √√ 1.2.3 piece meal √√ 1.2.4 induction √√ 1.2.5 Labour Relations √√ (5 x 2) (10) 1.3 1.3.1 F √√ 1.3.2 A √√ 1.3.3 I √√ 1.3.4 C √√ 1.3.5 D √√ (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

Business Studies/P1 5 NSC – Marking Guidelines Hlayiso/Mock 2026 SECTION B Mark the answers to the FIRST TWO questions only. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Pillars of the Broad-Based Black Economic Empowerment Act/BBBEE - Ownership √ - Management control √ - Skills development √ - Enterprise and supplier development √ - Socio-economic development/Corporate social investment √ NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 2.2 Purpose of the Labour Relations Act/LRA - Promotes collective bargaining at the workplace. √√ - Provides a framework within which employees, employers and trade unions can bargain collectively. √√ - Promotes orderly collective bargaining and sector-level bargaining. √√ - Promotes employee participation in decision-making through workplace forums. √√ - Provides simple procedures for the resolution of labour disputes through statutory conciliation, mediation and arbitration. √√ - Establishes the Commission for Conciliation, Mediation and Arbitration (CCMA) and the Labour Court/Labour Appeal Court. √√ - Gives effect to the right to fair labour practices/the right to strike and to lock out. √√ - Regulates the rights of employees to form/join trade unions and of employers to form employers’ organisations. √√ - Advances economic development, social justice, labour peace and democracy in the workplace. √√ Any other relevant answer related to the purpose of the LRA. Max (4) Copyright reserved Please turn over

Business Studies/P1 6 NSC – Marking Guidelines Hlayiso/Mock 2026 2.3 PESTLE factors 2.3.1 Challenges of PESTLE factors and motivations PESTLE FACTORS MOTIVATIONS 1. Economic √√ Fewer customers are building new houses because of high interest rates on home loans. √ 2. Technological √√ Several customers have also complained that the online ordering system of SBS is outdated and often crashes. √ Sub-max (4) Sub-max (2) NOTE: 1. Mark the first TWO (2) only. 2. Award marks for the PESTLE factors even if the quotes are incomplete. 3. Do not award marks for the motivation if the PESTLE factor was incorrectly identified. 4. The PESTLE factors and motivations may be in any order. Max (6) 2.3.2 Ways in which businesses can deal with the challenges posed by the technological factor - Upgrade/Update outdated computer systems and software regularly. √√ - Invest in reliable online/e-commerce platforms to improve customer service. √√ - Train employees to use new technology effectively. √√ - Appoint/Outsource qualified IT specialists to maintain systems. √√ - Budget for the replacement of obsolete equipment/technology. √√ - Install anti-virus software/firewalls/back-up systems to protect business data. √√ - Conduct research on new technology used by competitors to remain competitive. √√ Any other relevant answer related to ways in which businesses can deal with the challenges posed by the technological factor. Max (4) Copyright reserved Please turn over

Business Studies/P1 7 NSC – Marking Guidelines Hlayiso/Mock 2026 2.4 Difference between the micro environment and the macro environment MICRO ENVIRONMENT MACRO ENVIRONMENT The internal environment √of the business. √ The external environment √outside the business/industry. √ The business has full control √over this environment. √ The business has no control √over this environment. √ Consists of the vision/mission, management, organisational culture, resources and business functions. √√ Consists of the political, economic, social, technological, legal and environmental factors. √√ Challenges are dealt with by changing internal policies/procedures. √√ The business must adapt its strategies to deal with these challenges. √√ Sub-max (2) Sub-max (2) Any other relevant answer related to the difference between the micro and macro environments. 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 environment is explained. Max (4) 2.5 Types of defensive strategies Retrenchment √√ - The business terminates the employment of some employees for operational reasons. √ - Reduces the workforce/number of products/factories to cut costs. √ - The business may sell unprofitable divisions to reduce expenses. √ - Lay-offs are used when sales decline to keep the business viable. √ Any other relevant answer related to retrenchment as a type of defensive strategy. Strategy (2) Discussion (1) Sub-max (3) Divestiture/Divestment √√ - The business sells off a part/division/assets that is no longer profitable. √ - It disposes of less productive assets to pay off debts/raise capital. √ - The business may sell its shares in other businesses/subsidiaries. √ - Allows the business to focus on its core business activities. √ Any other relevant answer related to divestiture/divestment as a type of defensive strategy. Strategy (2) Discussion (1) Sub-max (3) Liquidation √√ - All the assets of the business are sold to pay its creditors. √ - The business may be forced to close down if it cannot pay its debts. √ Copyright reserved Please turn over

Business Studies/P1 8 NSC – Marking Guidelines Hlayiso/Mock 2026 - Liquidation may be voluntary or compulsory (court order). √ - Used when other defensive strategies have failed. √ Any other relevant answer related to liquidation as a type of defensive strategy. Strategy (2) Discussion (1) Sub-max (3) NOTE: Mark the first TWO (2) only. Max (6) 2.6 Basic Conditions of Employment Act/BCEA 2.6.1 Provisions of the BCEA complied with by ME - Employees work a maximum of 45 ordinary hours per week. √ - Workers receive a 60-minute meal break after five hours of continuous work. √ - ME pays employees double their normal wage when they work on a Sunday. √ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the scenario. (2 x 1) (2) 2.6.2 Impact of the BCEA on businesses Positives/Advantages - Employees are protected against unfair √working conditions/exploitation. √ - Promotes fair labour practices √between employers and employees. √ - Leave provisions are clearly stated √, so employees are rested and more productive. √ - Employers may not employ children under the age of 15, √which protects minors. √ - The Act sets out clear guidelines √on working hours, overtime and termination of employment. √ - Employees are paid for overtime √and work on Sundays/public holidays. √ - Improves the image of the business √, as it treats employees fairly. √ Any other relevant answer related to the positive impact of the BCEA on businesses. AND/OR Negatives/Disadvantages - Increases labour costs √as employers must pay for overtime/leave. √ - Productivity may decrease √because of limits on working hours. √ - Increases administration costs √, as accurate records of hours/leave must be kept. √ - Businesses may face penalties/fines √for non-compliance with the Act. √ Copyright reserved Please turn over

Business Studies/P1 9 NSC – Marking Guidelines Hlayiso/Mock 2026 - Employees may abuse leave provisions, √e.g. sick leave. √ - Businesses may not be able to meet deadlines √because overtime is limited. √ Any other relevant answer related to the negative impact of the BCEA on businesses. NOTE: Mark either positives or negatives or a combination of both. Max (6) 2.7 Ways in which businesses can comply with the Skills Development Act/SDA - Register with the relevant SETA in their sector. √√ - Pay the skills development levy of 1% of the total salary bill to SARS. √√ - Appoint a skills development facilitator to plan/manage training. √√ - Draw up a workplace skills plan and submit it to the SETA. √√ - Submit annual training reports to the SETA. √√ - Offer learnerships/internships to develop employees’ skills. √√ - Use accredited training providers to train employees. √√ - Identify skills gaps and train employees accordingly. √√ Any other relevant answer related to ways in which businesses can comply with the SDA. Max (4) [40] BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 4 2.2 4 2.3.1 6 2.3.2 4 2.4 4 2.5 6 2.6.1 2 2.6.2 6 2.7 4 TOTAL 40 Copyright reserved Please turn over

Business Studies/P1 10 NSC – Marking Guidelines Hlayiso/Mock 2026 QUESTION 3: BUSINESS OPERATIONS 3.1 Sources of external recruitment - Newspapers/Magazines √ - Recruitment/Employment agencies √ - Social media/Internet/Business website/Job portals √ - Radio/Television √ - Headhunting √ - Educational institutions/Career exhibitions √ - Walk-ins/Unsolicited applications √ - Professional associations √ Any other relevant answer related to sources of external recruitment. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.2 Role of the interviewee during an interview - Greet the interviewer(s) by name with a firm handshake. √√ - Show interest in the business and the position. √√ - Answer all questions honestly and confidently. √√ - Maintain eye contact and good body language/posture. √√ - Listen carefully to questions before responding. √√ - Ask clarity-seeking questions about the position/business. √√ - Be polite/well-mannered and show respect. √√ - Thank the interviewer(s) at the end of the interview. √√ Any other relevant answer related to the role of the interviewee during an interview. Max (4) 3.3 Selection procedure 3.3.1 Steps in the selection procedure applied by NAS - The human resources manager sorted the CVs received √ - and drew up a shortlist of candidates. √ - NAS then contacted the referees of the shortlisted candidates to confirm the information in their CVs. √ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the scenario. (2 x 1) (2) Copyright reserved Please turn over

Business Studies/P1 11 NSC – Marking Guidelines Hlayiso/Mock 2026 3.3.2 Other steps in the selection procedure - Conduct assessments/skills tests/psychometric tests on shortlisted candidates. √√ - Invite the shortlisted candidates for interviews. √√ - Conduct interviews with the shortlisted candidates. √√ - Conduct medical examinations/background checks, if required by the position. √√ - Make an offer of employment to the most suitable candidate in writing. √√ - Inform unsuccessful candidates of the outcome. √√ - Draw up and sign the employment contract with the successful candidate. √√ Any other relevant answer related to other steps in the selection procedure. NOTE: Do not award marks for responses quoted in QUESTION 3.3.1. Max (4) 3.4 Impact of fringe benefits on businesses Positives/Advantages - Attractive fringe benefits may attract √highly qualified/skilled employees. √ - Increases employee loyalty √and reduces staff turnover. √ - Employees are motivated √, which may increase productivity. √ - Some fringe benefits are tax deductible √for the business. √ - Improves the image/reputation of the business √as a good employer. √ - Increases job satisfaction √, as employees feel valued. √ Any other relevant answer related to the positive impact of fringe benefits on businesses. AND/OR Negatives/Disadvantages - Fringe benefits increase √the cost of employment. √ - May create conflict/resentment √if benefits are not fairly distributed. √ - Administration costs increase √to manage benefit schemes. √ - Employees may only stay √because of the benefits and not because they are committed. √ - Benefits are difficult to withdraw √once they have been granted. √ Any other relevant answer related to the negative impact of fringe benefits on businesses. NOTE: Mark either positives or negatives or a combination of both. Max (6) Copyright reserved Please turn over

Business Studies/P1 12 NSC – Marking Guidelines Hlayiso/Mock 2026 3.5 Difference between quality management and quality performance QUALITY MANAGEMENT QUALITY PERFORMANCE Techniques/Tools used to design, improve and monitor the quality of products/services. √√ The total performance of each department, measured against specified standards. √√ Ensures that the business consistently meets customer requirements. √√ Measured through effective quality control and quality assurance systems. √√ Includes the planning, controlling and improvement of quality processes. √√ Achieved when all departments work together towards the same quality standards. √√ Sub-max (2) Sub-max (2) Any other relevant answer related to the difference between quality management and quality performance. NOTE: 1. The answer does not have to be in tabular format. 2. The difference must be clear. Max (4) 3.6 PDCA model 3.6.1 Steps of the PDCA model and motivations PDCA STEPS MOTIVATIONS 1. Plan √√ ZC developed a plan to identify the causes of the problem and set targets to reduce the number of returns. √ 2. Check √√ Three months later, ZC compared the actual number of returns with the targets that were set. √ Sub-max (4) Sub-max (2) NOTE: 1. Mark the first TWO (2) only. 2. Do not award marks for the motivation if the step was incorrectly identified. 3. Award marks for the step even if the quote is incomplete. Max (6) Copyright reserved Please turn over

Business Studies/P1 13 NSC – Marking Guidelines Hlayiso/Mock 2026 3.6.2 Remaining steps of the PDCA model Do - Implement the plan/change on a small scale/as a trial run. √ - Carry out the process/plan as decided. √ Any other relevant answer related to the ’do’ step. Sub-max (2) Act - Implement the plan/change on a large scale if it was successful. √ - Take corrective action if the results are not as expected. √ - Standardise the improved process and repeat the cycle. √ Any other relevant answer related to the ’act’ step. Sub-max (2) NOTE: Award marks for the explanation of the steps only. Do not award marks for ’plan’ or ’check’. Max (4) 3.7 Quality indicators of the human resources function - Ensure that the human resources function sets clear/realistic targets. √√ - Attract and recruit suitably qualified/skilled employees. √√ - Offer competitive salaries/fringe benefits to retain skilled employees. √√ - Provide fair and transparent selection/placement procedures. √√ - Conduct proper induction of new employees. √√ - Identify training needs and provide relevant skills development. √√ - Monitor and evaluate employee performance regularly. √√ - Comply with labour legislation/maintain good labour relations. √√ - Keep accurate and up-to-date employee records. √√ Any other relevant answer related to the quality indicators of the human resources function. Max (6) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 4 3.3.1 2 3.3.2 4 3.4 6 3.5 4 3.6.1 6 3.6.2 4 3.7 6 TOTAL 40 Copyright reserved Please turn over

Business Studies/P1 14 NSC – Marking Guidelines Hlayiso/Mock 2026 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Types of diversification strategies - Concentric diversification √ - Horizontal diversification √ - Conglomerate diversification √ NOTE: Mark the first TWO (2) only. (2 x 1) (2) 4.2 Types of integration strategies 4.2.1 Forward vertical integration √√ (2) 4.2.2 Horizontal integration √√ (2) 4.3 Impact of the National Credit Act/NCA on businesses Positives/Advantages - Reduces bad debts √because credit is only granted to consumers who can afford it. √ - Businesses are protected √against consumers who abuse credit. √ - Standardised credit agreements √make the credit process clear for both parties. √ - Promotes a fair and competitive credit market √for all businesses. √ - Improves the image of the business √as a responsible credit provider. √ Any other relevant answer related to the positive impact of the NCA on businesses. AND/OR Negatives/Disadvantages - Fewer consumers qualify for credit √, which may reduce sales. √ - Increases administration costs √as businesses must conduct affordability assessments. √ - Businesses must register with the National Credit Regulator √, which may be costly/time-consuming. √ - Heavy fines/penalties √may be imposed for reckless lending. √ - Credit agreements may be set aside √if the business did not follow the Act. √ Any other relevant answer related to the negative impact of the NCA on businesses. NOTE: Mark either positives or negatives or a combination of both. Max (6) Copyright reserved Please turn over

Business Studies/P1 15 NSC – Marking Guidelines Hlayiso/Mock 2026 4.4 Steps in strategy evaluation - Examine the underlying basis of the business strategy. √√ - Look forward and backward into the implementation process. √√ - Compare the expected performance with the actual performance. √√ - Determine the reasons for deviations and analyse them. √√ - Take corrective action so that deviations may be corrected. √√ - Set specific dates for control and follow-up. √√ Any other relevant answer related to the steps in strategy evaluation. NOTE: Accept the steps in any order. Max (4) 4.5 Threat of substitutes as a force of Porter’s Five Forces model - Products that can easily be substituted weaken the position of the business in the market. √√ - Determine whether sellers of substitute products sell at lower prices/have improved their products. √√ - Businesses that sell unique products will not be threatened by substitutes. √√ - Assess whether customers are using substitute products and the reasons why. √√ - Differentiate products/improve quality to reduce the threat of substitutes. √√ Any other relevant answer related to how businesses could apply the threat of substitutes. Max (4) BUSINESS OPERATIONS 4.6 Reasons for the termination of an employment contract - Dismissal for misconduct/poor performance/incapacity √ - Resignation of the employee √ - Retrenchment/Operational requirements √ - Retirement √ - Death of the employee √ - Expiry of a fixed-term contract/completion of the task √ - Mutual agreement between employer and employee √ - Insolvency/Liquidation of the business √ NOTE: Mark the first FOUR (4) only. (4 x 1) (4) Copyright reserved Please turn over

Business Studies/P1 16 NSC – Marking Guidelines Hlayiso/Mock 2026 4.7 Implications of the Employment Equity Act/EEA on the human resources function - The human resources function must ensure that recruitment and selection procedures do not discriminate unfairly √against applicants. √ - Draw up an employment equity plan √with targets for designated groups. √ - Implement affirmative action measures √to ensure that designated groups are equally represented. √ - Ensure that employees receive equal pay √for work of equal value. √ - Report to the Department of Employment and Labour √on progress with employment equity. √ - Provide reasonable accommodation √for people with disabilities. √ - Train/Develop employees from designated groups √for promotion opportunities. √ Any other relevant answer related to the implications of the EEA on the human resources function. Max (6) 4.8 Total quality management (TQM) 4.8.1 Adequate financing and capacity √√ (2) 4.8.2 Impact of adequate financing and capacity on small businesses - Small businesses may not have sufficient funds √to invest in modern equipment/systems. √ - They may not afford to employ √qualified staff with specialised skills. √ - Limited funds may restrict research √on the quality of products. √ - Small businesses may have limited capacity √to meet large orders. √ - Owners can manage the use of available resources more closely √, which reduces waste. √ Any other relevant answer related to the impact of adequate financing and capacity on small businesses. NOTE: Do not award marks if the TQM element was incorrectly identified in QUESTION 4.8.1. Max (4) Copyright reserved Please turn over

Business Studies/P1 17 NSC – Marking Guidelines Hlayiso/Mock 2026 4.9 Benefits of induction - New employees settle in quickly and feel welcome. √√ - Employees become familiar with the business’s premises, policies and procedures. √√ - Reduces the anxiety/insecurity of new employees. √√ - Employees understand their roles/responsibilities and become productive sooner. √√ - Reduces staff turnover/absenteeism. √√ - Builds positive relationships with colleagues/managers. √√ - Identifies training needs of new employees. √√ Any other relevant answer related to the benefits of induction. Max (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 2 4.2.1 2 4.2.2 2 4.3 6 4.4 4 4.5 4 4.6 4 4.7 6 4.8.1 2 4.8.2 4 4.9 4 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over

Business Studies/P1 18 NSC – Marking Guidelines Hlayiso/Mock 2026 SECTION C Mark the answer to the FIRST question only. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) 5.1 Introduction - The CPA protects consumers against unfair business practices and unsafe products. √ - The Act gives consumers specific rights that businesses must respect. √ - Businesses that comply with the CPA build trust and customer loyalty. √ - Non-compliance may result in fines and damage to the reputation of the business. √ Any other relevant answer related to the purpose of the CPA/consumer rights/impact of the CPA/compliance with the CPA. Any (2 x 1) (2) 5.2 Purpose of the Consumer Protection Act/CPA - Promotes a fair, accessible and sustainable marketplace for consumer products and services. √√ - Establishes national standards relating to consumer protection. √√ - Prohibits unfair marketing and business practices. √√ - Protects consumers against hazardous/unsafe/defective products. √√ - Promotes responsible consumer behaviour. √√ - Improves access to/the quality of information that consumers need to make informed choices. √√ - Provides an accessible system of redress for consumers. √√ - Establishes the National Consumer Commission to enforce the Act. √√ Any other relevant answer related to the purpose of the CPA. Max (8) Copyright reserved Please turn over

Business Studies/P1 19 NSC – Marking Guidelines Hlayiso/Mock 2026 5.3 Consumer rights as stipulated in the CPA Right to choose √√ - Consumers may choose their suppliers and may not be forced to buy bundled products. √√ - Consumers may cancel advance bookings/reservations (a reasonable cancellation fee may apply). √√ - Consumers may examine goods before accepting them and reject goods that do not meet the description. √√ - Consumers may return goods bought through direct marketing within the cooling-off period of five business days. √√ Any other relevant answer related to the right to choose. Right (2) Explanation (2) Sub-max (4) Right to disclosure and information √√ - Information must be provided in plain and understandable language. √√ - Prices of goods must be clearly displayed. √√ - Products must be labelled correctly, including ingredients/expiry dates/country of origin. √√ - Consumers must receive a written record/receipt of each transaction. √√ Any other relevant answer related to the right to disclosure and information. Right (2) Explanation (2) Sub-max (4) Right to fair and honest dealing √√ - Businesses may not use physical force/coercion/undue influence to make consumers buy goods. √√ - Suppliers may not make false/misleading statements about products. √√ - Pyramid and similar schemes are prohibited. √√ - Bait marketing is not allowed, i.e. advertising goods at a price at which they are not available. √√ Any other relevant answer related to the right to fair and honest dealing. Right (2) Explanation (2) Sub-max (4) Max (12) Copyright reserved Please turn over

Business Studies/P1 20 NSC – Marking Guidelines Hlayiso/Mock 2026 5.4 Impact of the CPA on businesses Positives/Advantages - Builds customer trust √as businesses treat consumers fairly. √ - Improves the image/reputation √of businesses that comply. √ - Encourages businesses to improve the quality √of their products/services. √ - Increases customer loyalty √, which may lead to higher sales. √ - Creates a level playing field √for all businesses in the market. √ - Reduces disputes with consumers √as rights and responsibilities are clear. √ Any other relevant answer related to the positive impact of the CPA on businesses. AND/OR Negatives/Disadvantages - Increased administration costs √to keep records/rewrite contracts in plain language. √ - Businesses must accept returns of defective goods √, which may reduce profits. √ - Staff must be trained √on the requirements of the Act, which is costly. √ - Heavy fines √may be imposed for non-compliance. √ - Labelling and packaging costs may increase √to meet disclosure requirements. √ - Businesses may be held liable √for damage caused by unsafe products. √ Any other relevant answer related to the negative impact of the CPA on businesses. Max (12) 5.5 Ways in which businesses can comply with the CPA - Display prices of goods clearly √on products/shelves. √ - Draw up contracts/agreements √in plain and understandable language. √ - Label products correctly √with all the required information. √ - Accept the return of defective goods √and replace/repair/refund within six months. √ - Respect the cooling-off period √for direct-marketing sales. √ - Avoid misleading advertising √/bait marketing. √ - Train employees √on the requirements of the Act. √ - Respect consumers’ right to privacy √and stop unwanted direct marketing. √ Any other relevant answer related to ways in which businesses can comply with the CPA. Max (10) Copyright reserved Please turn over

Business Studies/P1 21 NSC – Marking Guidelines Hlayiso/Mock 2026 5.6 Conclusion - Businesses that respect consumer rights earn the trust and loyalty of their customers. √√ - Compliance with the CPA protects businesses against costly penalties and legal action. √√ - Although the CPA increases costs, it creates a fair marketplace for all businesses. √√ Any other relevant answer related to the purpose of the CPA/consumer rights/impact of the CPA/compliance with the CPA. Any (1 x 2) (2) [40] QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Max 32 Purpose of the CPA 8 Consumer rights 12 Impact of the CPA on businesses 12 Ways in which businesses can comply with the CPA 10 Conclusion 2 INSIGHT Layout 2 8 Analysis/Interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. Copyright reserved Please turn over

Business Studies/P1 22 NSC – Marking Guidelines Hlayiso/Mock 2026 QUESTION 6: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) 6.1 Introduction - A good quality management system ensures that products consistently meet customer needs. √ - Each business function must meet its own quality indicators. √ - TQM helps businesses to reduce the cost of quality. √ - Quality circles contribute to the continuous improvement of processes and systems. √ Any other relevant answer related to benefits of a QMS/quality indicators/TQM and the cost of quality/quality circles. Any (2 x 1) (2) 6.2 Benefits of a good quality management system - Effective customer services are rendered, resulting in increased customer satisfaction. √√ - Time and resources are used efficiently. √√ - Productivity increases through proper time management/using high-quality resources. √√ - Products/Services are constantly improved, resulting in increased levels of customer satisfaction. √√ - Vision/Mission/Business goals may be achieved. √√ - Business has a competitive advantage over its competitors. √√ - Regular training improves the quality of employees’ skills/knowledge. √√ - Employers and employees have a healthy working relationship, resulting in happy/productive workers. √√ - Increased market share/more customers improve profitability. √√ - Improves the image/reputation of the business. √√ Any other relevant answer related to the benefits of a good quality management system. Max (8) Copyright reserved Please turn over

Business Studies/P1 23 NSC – Marking Guidelines Hlayiso/Mock 2026 6.3 Quality indicators of business functions General management - Develop/Implement/Monitor effective strategic plans. √√ - Ensure that the business has a clear vision/mission/goals. √√ - Effective organisation of business resources. √√ - Lead by example and set the tone for quality throughout the business. √√ - Share the vision/mission with employees and provide clear direction. √√ - Adapt to changes in the business environment. √√ - Ensure that all departments work together to achieve quality. √√ Any other relevant answer related to the quality indicators of the general management function. Sub-max (6) Purchasing function - Buy raw materials of good quality at reasonable prices. √√ - Select reliable suppliers who deliver on time. √√ - Buy in bulk to obtain discounts and reduce costs. √√ - Maintain optimum stock levels to avoid over- or under-stocking. √√ - Place orders timeously so that production is not disrupted. √√ - Effective control and monitoring of stock. √√ - Pay suppliers on time to maintain good relationships. √√ Any other relevant answer related to the quality indicators of the purchasing function. Sub-max (6) Max (12) 6.4 Ways in which TQM can reduce the cost of quality - Continuous training of employees √reduces errors and waste. √ - Schedule activities efficiently √to avoid duplication of tasks. √ - Share responsibility for quality output √between management and employees. √ - Build long-term relationships with suppliers √to ensure the supply of quality raw materials. √ - Use quality circles √to identify and solve problems early. √ - Reduce the number of defects/returns √through effective quality control. √ - Implement preventive maintenance √so that machines do not break down. √ - Increase the profitability of the business √through efficient use of resources. √ Any other relevant answer related to ways in which TQM can reduce the cost of quality. Max (10) Copyright reserved Please turn over

Business Studies/P1 24 NSC – Marking Guidelines Hlayiso/Mock 2026 6.5 Role of quality circles in continuous improvement to processes and systems - Investigate problems and suggest solutions √to management. √ - Improve communication √between workers and management. √ - Reduce costs of redundancy √in the long run. √ - Improve the quality of products/services √and productivity. √ - Contribute to the improvement and development √of the organisation. √ - Motivate employees √as they are involved in decision-making. √ - Encourage team work √and shared responsibility for quality. √ Any other relevant answer related to the role of quality circles. Max (10) 6.6 Conclusion - A good quality management system gives the business a competitive advantage. √√ - When all business functions meet their quality indicators, the business achieves its goals. √√ - Quality circles and TQM help businesses to reduce costs and improve quality continuously. √√ Any other relevant answer related to benefits of a QMS/quality indicators/TQM and the cost of quality/quality circles. Any (1 x 2) (2) [40] QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Max 32 Benefits of a good quality management system 8 Quality indicators of business functions 12 Ways in which TQM can reduce the cost of quality 10 Role of quality circles 10 Conclusion 2 INSIGHT Layout 2 8 Analysis/Interpretation 2 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are not met at all. TOTAL SECTION C: 40 GRAND TOTAL: 150 Copyright reserved