Business Studies Grade 12 P1 NSC November Prediction 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 PREDICTION EXAMINATION 2026 MARKING GUIDELINES MARKS: 150 These marking guidelines consist of 28 pages.

Business Studies/P1 2 NSC – Marking Guidelines Hlayiso/Prediction 2026 NOTES TO MARKERS These notes are provided to ensure fair, consistent and reliable marking of this prediction 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/Prediction 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/Prediction 2026 SECTION A QUESTION 1 1.1 1.1.1 C √√ 1.1.2 D √√ 1.1.3 B √√ 1.1.4 C √√ 1.1.5 B √√ (5 x 2) (10) 1.2 1.2.1 weakness √√ 1.2.2 National Credit √√ 1.2.3 time-related √√ 1.2.4 internal √√ 1.2.5 control √√ (5 x 2) (10) 1.3 1.3.1 D √√ 1.3.2 H √√ 1.3.3 F √√ 1.3.4 B √√ 1.3.5 C √√ (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/Prediction 2026 SECTION B Mark the answers to the FIRST TWO questions only. QUESTION 2: BUSINESS ENVIRONMENTS 2.1 Rights of employees in terms of the Labour Relations Act/LRA - Employees may join a trade union of their choice. √ - May embark on legal/protected strikes as a remedy for grievances. √ - Refer unresolved workplace disputes to the CCMA. √ - Refer unresolved CCMA disputes to the Labour Court on appeal. √ - Request trade union representatives to assist/represent them in grievance/disciplinary hearings. √ - Trade union representatives may take reasonable time off with pay to attend to union duties. √ - Participate in a workplace forum where the business has more than 100 employees. √ - Not to be unfairly dismissed/subjected to unfair labour practices. √ Any other relevant answer related to the rights of employees in terms of the LRA. NOTE: Mark the first THREE (3) only. (3 x 1) (3) 2.2 Purpose of the Compensation for Occupational Injuries and Diseases Amendment Act/COIDA - Provides compensation to employees who are injured/contract diseases in the course of performing their duties. √√ - Applies to all casual/full-time workers who become ill/injured/disabled/die because of a workplace accident/disease. √√ - Provides compensation to the families/dependants of employees who die because of workplace accidents/diseases. √√ - Pays medical expenses/other types of compensation depending on the type/severity of the injury. √√ - Requires employers to contribute to the Compensation Fund based on the number of employees/level of risk. √√ - Provides for the establishment of a Compensation Board that advises the Minister of Employment and Labour on COIDA. √√ - Relieves employers of civil claims by injured employees, as compensation is paid from the fund. √√ Any other relevant answer related to the purpose of COIDA. Max (4) Copyright reserved Please turn over

Business Studies/P1 6 NSC – Marking Guidelines Hlayiso/Prediction 2026 2.3 PESTLE factors 2.3.1 PESTLE factors and motivations PESTLE FACTORS MOTIVATIONS 1. Political √√ Changes in the trade policies between the South African government and some of these countries have delayed a number of MCF’s shipments. √ 2. Environmental √√ This season heavy floods also destroyed a large part of MCF’s orchards. √ 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 political factor - Keep up to date with changes in government policies/trade agreements that affect the business. √√ - Lobby government through business associations/chambers of commerce/organised agriculture to influence policy. √√ - Diversify markets, e.g. export to countries with stable trade relations. √√ - Participate in public consultation processes before new policies are adopted. √√ - Seek expert/legal advice on how new policies/regulations affect the business. √√ - Build good relationships with government departments/trade representatives. √√ - Adjust business strategies/plans timeously to accommodate policy changes. √√ - Take out insurance/negotiate flexible contracts to reduce the risk of delayed shipments. √√ Any other relevant answer related to ways in which businesses can deal with the challenges posed by the political factor. Max (4) Copyright reserved Please turn over

Business Studies/P1 7 NSC – Marking Guidelines Hlayiso/Prediction 2026 2.4 Types of diversification strategies Concentric diversification √√ - The business adds new products that are related to/similar to its existing products. √ - New products are aimed at new customers, while the existing technology/expertise is used. √ - Reduces costs as the same production facilities/equipment can be used. √ - Increases sales/market share as the new products appeal to new markets. √ Any other relevant answer related to concentric diversification. Strategy (2) Explanation (1) Sub-max (3) Horizontal diversification √√ - The business adds new products that are unrelated to its existing products. √ - New products are sold to the existing customers of the business. √ - Uses the existing customer base/distribution channels to increase sales. √ - Customers’ loyalty to the existing brand helps to sell the new products. √ Any other relevant answer related to horizontal diversification. Strategy (2) Explanation (1) Sub-max (3) Conglomerate diversification √√ - The business adds new products/services that are unrelated to its existing products. √ - New products are aimed at new customers/markets. √ - Spreads the risk of the business over different industries. √ - May require new technology/skills/capital, which increases risk. √ Any other relevant answer related to conglomerate diversification. Strategy (2) Explanation (1) Sub-max (3) NOTE: Mark the first TWO (2) only. Max (6) Copyright reserved Please turn over

Business Studies/P1 8 NSC – Marking Guidelines Hlayiso/Prediction 2026 2.5 Consumer Protection Act/CPA 2.5.1 Act Consumer Protection Act/CPA √√ Motivation - GA clearly displays the prices of all its products. √ - (GA) gives customers a written receipt for every purchase. √ - Customers may return defective appliances within six months for a repair, replacement or refund. √ Act (2) Motivation (1) Max (3) NOTE: 1. Mark the first answer only. 2. Do not award marks for the motivation if the Act was incorrectly identified. 3. Award marks for the Act even if the motivation is incomplete. Max (3) 2.5.2 Impact of the CPA on businesses Positives/Advantages - Businesses are protected against √unfair/dishonest competitors. √ - Customers trust businesses √that comply with the CPA, which may increase customer loyalty/sales. √ - Improves the image/reputation √of businesses that treat consumers fairly. √ - Encourages businesses to improve the quality √of their products/services. √ - Clear rules on product labelling/pricing/warranties √reduce disputes with customers. √ - Creates a level playing field √as all businesses must follow the same rules. √ Any other relevant answer related to the positive impact of the CPA on businesses. AND/OR Negatives/Disadvantages - Increased administration costs √, as detailed records of transactions must be kept. √ - Businesses must bear the costs of repairing/replacing/refunding √ defective goods within the warranty period. √ - Staff must be trained √on the requirements of the CPA, which is costly/time-consuming. √ - Businesses may face heavy fines/penalties √for non-compliance. √ - Some consumers may abuse their rights √, e.g. return goods that they damaged themselves. √ - Contracts/labels/marketing material must be rewritten √in plain and understandable language. √ Copyright reserved Please turn over

Business Studies/P1 9 NSC – Marking Guidelines Hlayiso/Prediction 2026 Any other relevant answer related to the negative impact of the CPA on businesses. NOTE: Mark either positives or negatives or a combination of both. Max (6) 2.6 Application of the power of competitors/competitive rivalry as a force of Porter’s Five Forces model - Businesses should analyse the number/size/strength of competitors in the market. √√ - Identify the strengths and weaknesses of competitors and compare them with their own. √√ - Monitor competitors’ prices/products/marketing strategies regularly. √√ - The more competitors there are, the less control the business has over prices. √√ - Develop a competitive advantage, e.g. better quality/unique products/better service. √√ - Consider forming strategic alliances/acquiring competitors to reduce competition. √√ - Conduct market research to understand why customers choose competitors’ products. √√ Any other relevant answer related to how businesses could apply the power of competitors as a force of Porter’s Five Forces model. Max (4) 2.7 Steps in strategy evaluation - Examine the underlying basis of the business strategy. √√ - Look forward and backward into the implementation process. √√ - Compare the expected results with the actual results. √√ - Measure business performance in order to determine the reasons for deviations. √√ - Analyse/Correct the reasons for deviations and take corrective action. √√ - Set specific dates for control and follow up. √√ - Draw up a table of the positive and negative effects of the strategy. √√ - Decide on the desired outcome. √√ - Use tools for strategy evaluation such as Porter’s Five Forces/SWOT analysis/PESTLE analysis/industrial analysis. √√ Any other relevant answer related to the steps in strategy evaluation. Max (4) [40] Copyright reserved Please turn over

Business Studies/P1 10 NSC – Marking Guidelines Hlayiso/Prediction 2026 BREAKDOWN OF MARKS QUESTION 2 MARKS 2.1 3 2.2 4 2.3.1 6 2.3.2 4 2.4 6 2.5.1 3 2.5.2 6 2.6 4 2.7 4 TOTAL 40 Copyright reserved Please turn over

Business Studies/P1 11 NSC – Marking Guidelines Hlayiso/Prediction 2026 QUESTION 3: BUSINESS OPERATIONS 3.1 Sources of external recruitment - Newspapers/Magazines √ - Recruitment agencies/Labour brokers/Head-hunters √ - Social media/Business websites/Internet/Online job portals √ - Radio/Television √ - Billboards/Notice boards in public places √ - Educational institutions/Universities/TVET colleges/Career exhibitions √ - Walk-ins/Unsolicited CVs √ - Referrals/Word of mouth by current employees √ Any other relevant answer related to sources of external recruitment. NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 3.2 Selection procedure as a human resources activity - Receive documentation, e.g. application forms/CVs, and sort it according to the requirements of the job. √√ - Evaluate the CVs and make a preliminary list of suitable candidates. √√ - Screen applicants, e.g. check their qualifications/experience against the job specification. √√ - Draw up a shortlist of candidates. √√ - Check the information in the CVs/conduct reference/background checks, e.g. criminal record/credit history. √√ - Invite the shortlisted candidates for interviews. √√ - Conduct selection tests, e.g. skills/aptitude/psychometric tests, where applicable. √√ - Conduct interviews with the shortlisted candidates. √√ - Offer the position in writing to the successful candidate and inform the unsuccessful candidates. √√ Any other relevant answer related to the selection procedure as a human resources activity. NOTE: Accept the steps in any order. Max (6) 3.3 Role of the interviewer 3.3.1 Roles of the interviewer during the interview from the scenario - He introduced the panel members to the candidate. √ - (He) asked every candidate the same set of questions. √ - Mr Pillay also made notes of the candidates’ responses. √ 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 12 NSC – Marking Guidelines Hlayiso/Prediction 2026 3.3.2 Other roles of the interviewer during the interview - Make the candidate feel at ease/welcome √by greeting him/her in a friendly manner. √ - Explain the purpose of the interview √and the format that will be followed. √ - Avoid asking personal/discriminatory questions √that are not related to the job. √ - Allow the candidate to ask questions √about the job/business. √ - Listen attentively √and observe the candidate’s body language/non-verbal behaviour. √ - Allocate the same amount of time √to each candidate. √ - Give the candidate an opportunity to explain his/her strengths √and experience. √ - Inform the candidate of the next steps √and thank him/her for attending. √ Any other relevant answer related to other roles of the interviewer during the interview. NOTE: Do not award marks for responses quoted from the scenario in QUESTION 3.3.1. Max (4) 3.4 Impact of fringe benefits on businesses Positives/Advantages - Attractive fringe benefits may attract √qualified/skilled/experienced candidates. √ - Fringe benefits may increase employee satisfaction/loyalty √, which leads to higher productivity. √ - Employees are motivated/more committed √to the business. √ - Reduces the staff turnover √as employees are less likely to leave. √ - Improves the image √of the business as a good employer. √ - Certain fringe benefits are tax deductible √for the business. √ 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 √and may reduce profits. √ - Increases the administration work √as benefits must be recorded/managed. √ - Employees may be unhappy/demotivated √if benefits are reduced or not equally distributed. √ - Some employees may stay only because of the benefits √and not be productive. √ - Businesses may not be able to afford √the benefits during difficult economic times. √ - May lead to disputes/conflict √if benefits are not clearly communicated. √ Any other relevant answer related to the negative impact of fringe benefits on businesses. Copyright reserved Please turn over

Business Studies/P1 13 NSC – Marking Guidelines Hlayiso/Prediction 2026 NOTE: Mark either positives or negatives or a combination of both. Max (6) 3.5 TQM elements and motivations TQM ELEMENTS MOTIVATIONS 1. Total client/customer satisfaction √√ SP conducts regular surveys to find out what customers need and responds to all complaints within 48 hours. √ 2. Monitoring and evaluation of quality processes √√ Managers check the production process at key points and use performance indicators to measure whether quality targets are met. √ Sub-max (4) Sub-max (2) NOTE: 1. Mark the first TWO (2) only. 2. Award marks for the TQM elements even if the quotes are incomplete. 3. Do not award marks for the motivation if the TQM element was incorrectly identified. 4. The TQM elements and motivations may be in any order. 5. Accept ‘Continuous improvement to processes and systems’ as an alternative TQM element for the second motivation. Max (6) 3.6 Ways in which TQM can reduce the cost of quality - Educate and train employees continuously so that they produce quality products. √√ - Establish quality circles to identify and solve quality-related problems. √√ - Schedule activities to eliminate duplication of tasks. √√ - Share the responsibility for quality output between management and workers. √√ - Reduce waste and rework by getting things right the first time. √√ - Improve communication about quality challenges/deviations so that everyone can learn from mistakes. √√ - Monitor and evaluate processes regularly to detect defects early. √√ - Build good relationships with reliable suppliers that deliver quality inputs. √√ Any other relevant answer related to ways in which TQM can reduce the cost of quality. Max (4) Copyright reserved Please turn over

Business Studies/P1 14 NSC – Marking Guidelines Hlayiso/Prediction 2026 3.7 Role of quality circles as part of continuous improvement to processes and systems - Investigate problems √related to quality and suggest solutions to management. √ - Solve problems related to quality √and implement improvements. √ - Improve the quality of products/services √and productivity. √ - Reduce costs of redundancy √in the long run. √ - Increase employees’ morale/motivation √as they are involved in decision-making. √ - Improve communication √between workers and management. √ - Contribute to the improvement and development √of the organisation. √ Any other relevant answer related to the role of quality circles as part of continuous improvement to processes and systems. Max (4) 3.8 Contribution of the quality of performance of the marketing function to the success of a business - Conduct market research √to identify the needs of customers. √ - Develop products/services √that satisfy the needs of customers. √ - Use pricing strategies √that are competitive/affordable. √ - Use effective promotion/advertising campaigns √to attract and retain customers. √ - Choose suitable distribution channels √so that products are available when and where customers need them. √ - Build long-term relationships with customers √, e.g. through after-sales service/loyalty programmes. √ - Respond to customer complaints √quickly and effectively. √ - Increase market share √by meeting/exceeding customers’ expectations. √ Any other relevant answer related to how the quality of performance of the marketing function can contribute to the success of a business. Max (4) [40] BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2 6 3.3.1 2 3.3.2 4 3.4 6 3.5 6 3.6 4 3.7 4 3.8 4 TOTAL 40 Copyright reserved Please turn over

Business Studies/P1 15 NSC – Marking Guidelines Hlayiso/Prediction 2026 QUESTION 4: MISCELLANEOUS TOPICS BUSINESS ENVIRONMENTS 4.1 Types of defensive strategies - Retrenchment √ - Divestiture/Divestment √ - Liquidation √ (3 x 1) (3) 4.2 Business environments 4.2.1 Challenges for LC - Several experienced chefs resigned because of poor working conditions in LC’s kitchen. √ - A new catering business that charges lower prices recently opened in the same street. √ - The rising cost of electricity has also increased LC’s production costs. √ (3 x 1) (3) 4.2.2 Business environments CHALLENGES (4.2.1) BUSINESS ENVIRONMENTS (4.2.2) EXTENT OF CONTROL (4.2.3) 1. Several experienced chefs resigned because of poor working conditions. Micro √ Full control √ 2. A new catering business that charges lower prices opened in the same street. Market √ Some/Limited control/influence √ 3. The rising cost of electricity has increased LC’s production costs. Macro √ No control √ (3 x 1) (3) (3 x 1) (3) NOTE: 1. Mark the first THREE (3) only. 2. The challenges may be in any order, but each environment must match its challenge. 3. Do not award marks for 4.2.2 if the challenge in 4.2.1 was not identified. 4. Award marks for the extent of control in 4.2.3 only if it matches the environment classified in 4.2.2. (3 x 1) (3) 4.2.3 Extent of control See the table in QUESTION 4.2.2 above. (3 x 1) (3) Copyright reserved Please turn over

Business Studies/P1 16 NSC – Marking Guidelines Hlayiso/Prediction 2026 4.3 Funding of Sector Education and Training Authorities/SETAs - Skills development levies are paid by employers √to SARS, which collects them for the government. √ - Employers with an annual salary bill of more than R500 000 √pay 1% of their total salary bill as a levy. √ - SETAs receive 80% of the levies √and the remaining 20% is paid to the National Skills Fund. √ - Donations/Grants received √from the public/businesses/CSI programmes. √ - Surplus funds received √from government institutions. √ - Funds received √for services rendered by SETAs. √ Any other relevant answer related to how SETAs are funded. Max (4) 4.4 National Credit Act/NCA 4.4.1 Consumer rights in terms of the NCA from the scenario - Before a credit agreement is signed, UF gives every customer a written quotation of the total cost of the credit, which is valid for five business days. √ - UF explains all its credit agreements in plain and understandable language. √ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the scenario. (2 x 1) (2) 4.4.2 Other rights of consumers in terms of the NCA Consumers have the right to: - Apply for credit √and be free from discrimination when credit is granted. √ - Be given reasons √if their application for credit is refused. √ - Receive documents/statements √as required by the Act, e.g. a copy of the credit agreement. √ - Access and challenge √their credit records/information held by credit bureaux. √ - Have their personal information √treated confidentially/protected. √ - Apply for debt review/counselling √if they are unable to repay their debts. √ - Surrender/Return goods to the credit provider √in order to settle the outstanding debt. √ - Refuse an increase √in their credit limit. √ - Fair and responsible marketing √by credit providers. √ Any other relevant answer related to other rights of consumers in terms of the NCA. NOTE: Do not award marks for responses quoted from the scenario in QUESTION 4.4.1. Max (4) Copyright reserved Please turn over

Business Studies/P1 17 NSC – Marking Guidelines Hlayiso/Prediction 2026 BUSINESS OPERATIONS 4.5 Induction 4.5.1 Aspects of KE’s induction programme - New employees spend their first day on a tour of the factory. √ - (They) are introduced to their supervisors. √ - They also receive training on the safety rules that apply in the workshop. √ NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the scenario. (2 x 1) (2) 4.5.2 Benefits of induction for businesses - New employees settle in quickly √and become productive sooner. √ - Reduces the anxiety/insecurity of new employees √, as they feel welcome. √ - Employees understand the rules/policies/procedures √of the business, which reduces mistakes. √ - Improves safety √as employees know the safety rules/procedures. √ - Builds good working relationships √with colleagues/supervisors. √ - Reduces staff turnover √as employees feel part of the business. √ - Training needs of new employees can be identified √early. √ - Creates a positive first impression/attitude √towards the business. √ Any other relevant answer related to the benefits of induction for businesses. Max (4) Copyright reserved Please turn over

Business Studies/P1 18 NSC – Marking Guidelines Hlayiso/Prediction 2026 4.6 Implications of the Basic Conditions of Employment Act/BCEA on the human resources function - The HR function must ensure that employment contracts √comply with the minimum conditions of the BCEA. √ - Ensure that working hours/overtime √do not exceed the limits set by the BCEA. √ - Pay overtime/work on Sundays and public holidays √at the rates set by the BCEA. √ - Grant employees the required leave, e.g. annual/sick/maternity/family responsibility leave √, and keep leave records. √ - Keep accurate records √of employees’ working hours/remuneration for at least three years. √ - Give employees payslips √with the required information. √ - Must not employ children under the age of 15 √and must not use forced labour. √ - Give/Observe the correct notice periods √when employment contracts are terminated. √ - Train managers/supervisors √on the provisions of the BCEA. √ Any other relevant answer related to the implications of the BCEA on the human resources function. Max (4) 4.7 Benefits of a good quality management system - Effective customer service is 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 higher levels of customer satisfaction. √√ - The vision/mission/business goals may be achieved. √√ - The business has a competitive advantage over its competitors. √√ - Regular training continuously improves the skills/knowledge of employees. √√ - Improves the image of the business as there are fewer defects/returns. √√ - Increased market share/profitability as more customers buy the products. √√ Any other relevant answer related to the benefits of a good quality management system. Max (4) Copyright reserved Please turn over

Business Studies/P1 19 NSC – Marking Guidelines Hlayiso/Prediction 2026 4.8 Impact of TQM if poorly implemented by businesses - Setting unrealistic deadlines √that may not be achieved. √ - Employees may not be adequately trained √, resulting in poor-quality products. √ - Decline in productivity √because of stoppages/rework. √ - Business reputation/image may suffer √because of poor-quality/defective goods. √ - Customers may lose confidence √in the products and buy from competitors. √ - High staff turnover √because of poor management/low morale. √ - Increased costs of returns/repairs √as more products are returned by customers. √ - Resources may be wasted √because quality processes are not monitored. √ Any other relevant answer related to the impact of TQM if poorly implemented by businesses. Max (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 4.1 3 4.2.1 3 4.2.2 3 4.2.3 3 4.3 4 4.4.1 2 4.4.2 4 4.5.1 2 4.5.2 4 4.6 4 4.7 4 4.8 4 TOTAL 40 TOTAL SECTION B: 80 Copyright reserved Please turn over

Business Studies/P1 20 NSC – Marking Guidelines Hlayiso/Prediction 2026 SECTION C Mark the FIRST question only. QUESTION 5: BUSINESS ENVIRONMENTS (LEGISLATION) 5.1 Introduction - The BBBEE Act was introduced to increase the participation of previously disadvantaged people in the mainstream economy. √ - The Act sets out pillars that businesses must apply to improve their BBBEE status/rating. √ - BBBEE has both a positive and a negative impact on businesses. √ - Skills development and ESD help to build the skills/businesses of black people. √ - Businesses that do not comply may face penalties such as fines or the loss of government contracts. √ Any other relevant answer related to the purpose of BBBEE/impact of BBBEE/application of skills development and ESD/penalties for non-compliance. Any (2 x 1) (2) 5.2 Purpose of the Broad-Based Black Economic Empowerment Act/BBBEE - Enables wealth to be spread more broadly across all population groups. √√ - Promotes the participation of black people/women/youth/people with disabilities/people in rural areas in the economy. √√ - Increases the number of black people who own/manage/control businesses. √√ - Promotes access to finance for black entrepreneurs/small businesses. √√ - Allows for the development of Codes of Good Practice/transformation charters. √√ - Establishes the BBBEE Advisory Council/BBBEE Commission to oversee/monitor empowerment. √√ - Creates capacity within the broader economy through the implementation of the BBBEE pillars. √√ - Aims to reduce inequality/redress the economic imbalances of the past. √√ Any other relevant answer related to the purpose of the BBBEE Act. Max (10) Copyright reserved Please turn over

Business Studies/P1 21 NSC – Marking Guidelines Hlayiso/Prediction 2026 5.3 Impact of the BBBEE Act on businesses Positives/Advantages - Businesses that comply with the BBBEE pillars √may obtain government tenders/contracts. √ - A good BBBEE rating improves the image √of the business. √ - Encourages businesses to address the demands for redress/equity √directly. √ - Provides for human resources development √through training/skills development. √ - Promotes enterprise development √by developing the entrepreneurial skills of designated people. √ - Businesses that support SMMEs √may increase their own BBBEE ratings. √ - Fronting is discouraged √, as it may lead to the disqualification of a business’s BBBEE status. √ - May attract other BBBEE-compliant business partners/suppliers/investors. √ Any other relevant answer related to the positive impact of BBBEE on businesses. AND/OR Negatives/Disadvantages - BBBEE compliance must be verified √by an independent verification agency, which is costly. √ - Businesses that want to do business with government √must have their BBBEE status assessed annually. √ - Preferential procurement √may exclude some businesses from supplying goods/services. √ - Processes may lead to corruption/fronting √if not monitored properly. √ - Small businesses may not be able to meet all the criteria √for a good score. √ - Businesses must spend money in the areas covered by the pillars √to obtain a good rating. √ - Investment and ownership issues may cause unhappiness √among existing shareholders. √ Any other relevant answer related to the negative impact of BBBEE on businesses. NOTE: Mark either positives or negatives or a combination of both. Max (14) Copyright reserved Please turn over

Business Studies/P1 22 NSC – Marking Guidelines Hlayiso/Prediction 2026 5.4 Application of BBBEE pillars by businesses Skills development - Provide training/learnerships/internships/bursaries to black employees. √√ - Spend a percentage of the payroll on the skills development of black employees. √√ - Offer mentorship/coaching programmes to develop black employees for management positions. √√ - Draw up a workplace skills plan that focuses on the training of previously disadvantaged employees. √√ - Offer bursaries/learnerships to unemployed black youth/people with disabilities. √√ Any other relevant answer related to the application of skills development as a pillar of BBBEE. Sub-max (6) Enterprise and supplier development (ESD) - Buy goods/services from BBBEE-compliant/black-owned suppliers (preferential procurement). √√ - Provide financial/non-financial support, e.g. loans/grants/mentoring, to small black-owned businesses. √√ - Help black-owned suppliers to develop their capacity, e.g. through training/equipment. √√ - Pay small black-owned suppliers faster/on shorter payment terms to improve their cash flow. √√ - Include black-owned businesses in the supply chain of the business. √√ Any other relevant answer related to the application of ESD as a pillar of BBBEE. Sub-max (6) Max (12) 5.5 Penalties for non-compliance with the BBBEE Act - Persons/directors involved in fronting practices may face imprisonment of up to 10 years. √√ - The penalty could be a fine of up to 10% of the business’s annual turnover. √√ - Government may cancel any contract awarded on the basis of false information about BBBEE status. √√ - A business can be banned from government contracts for a period of up to 10 years. √√ - Organs of state may refuse licences/concessions to businesses with a poor BBBEE status. √√ - Businesses that fail to meet the minimum (40%) sub-minimum for ownership/skills development/ESD are downgraded by one level. √√ - BBBEE-compliant partners/clients may withdraw their contracts with non-compliant businesses. √√ Any other relevant answer related to the penalties for non-compliance with the BBBEE Act. Max (10) Copyright reserved Please turn over

Business Studies/P1 23 NSC – Marking Guidelines Hlayiso/Prediction 2026 5.6 Conclusion - The BBBEE Act promotes the meaningful participation of a wider group of previously disadvantaged people in the economy. √√ - Although BBBEE has some negative effects, businesses that comply benefit from a better image and more opportunities. √√ - Applying skills development and ESD builds the capacity of employees and black-owned suppliers. √√ - Businesses should comply with BBBEE to avoid heavy penalties. √√ Any other relevant answer related to the purpose/impact of BBBEE/application of the pillars/penalties for non-compliance. Any (1 x 2) (2) [40] QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Max 32 Purpose of the BBBEE Act 10 Impact of the BBBEE Act on businesses 14 Application of the BBBEE pillars 12 Penalties for non-compliance 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 24 NSC – Marking Guidelines Hlayiso/Prediction 2026 QUESTION 6: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) 6.1 Introduction - Quality management and quality performance help businesses to deliver products that satisfy customers’ needs. √ - Every business function contributes to the overall quality of the business. √ - TQM elements such as continuous skills development and adequate financing improve quality in large businesses. √ - The PDCA model helps businesses to improve their products and processes continuously. √ Any other relevant answer related to quality management and quality performance/quality of performance of business functions/TQM elements/PDCA model. Any (2 x 1) (2) 6.2 Difference between quality management and quality performance QUALITY MANAGEMENT QUALITY PERFORMANCE Techniques/tools used to design/improve the quality of a product/service. √√ The total performance of each department measured against specified standards. √√ Can be used for accountability within each of the business functions. √√ Can be obtained if all departments work together towards the same quality standards. √√ Aims to ensure that the quality of goods/services is consistent. √√ Quality is measured through the physical product/statistical output of processes/surveys of users. √√ Any other relevant answer related to quality management. Any other relevant answer related to quality performance. Sub-max (4) Sub-max (4) NOTE: 1. The answer does not have to be in tabular format. 2. The difference must be clear. 3. Award a maximum of FOUR (4) marks if the difference is not clear/only one concept is explained. Max (8) Copyright reserved Please turn over

Business Studies/P1 25 NSC – Marking Guidelines Hlayiso/Prediction 2026 6.3 Contribution of the quality of performance of business functions to the success of a business General management function - Develop/Implement/Monitor effective strategic plans. √√ - Organise/Allocate business resources efficiently to achieve long-term and short-term plans. √√ - Put structured standards and norms in place so that control mechanisms can be implemented. √√ - Communicate the shared vision, mission and values effectively. √√ - Set the direction and establish priorities for the business. √√ - Set an example of ethical behaviour/productivity for employees. √√ - Be proactive and continuously seek to improve the competitive advantage of the business. √√ Any other relevant answer related to the quality of performance of the general management function. Sub-max (6) Production function - Produce products of the right quality at the lowest possible cost. √√ - Use efficient production systems/processes, e.g. lean manufacturing/just-in-time. √√ - Maintain machinery/equipment regularly to prevent breakdowns. √√ - Implement quality control checks at key points in the production process. √√ - Meet production schedules/deadlines so that products are delivered on time. √√ - Ensure a safe working environment for production workers. √√ - Train production workers continuously to reduce defects/waste. √√ - Obtain/Maintain quality certification, e.g. SABS/ISO standards. √√ Any other relevant answer related to the quality of performance of the production function. Sub-max (6) Max (12) Copyright reserved Please turn over

Business Studies/P1 26 NSC – Marking Guidelines Hlayiso/Prediction 2026 6.4 Impact of TQM elements on large businesses Continuous skills development/Education and training - Large businesses can afford to train employees continuously √, which improves the quality of products. √ - Employees are multi-skilled √and can perform different tasks. √ - Fewer mistakes are made √, which reduces the cost of quality. √ - Employees are motivated √as they see opportunities for growth/promotion. √ - Training may be costly/time-consuming √and production may be disrupted while employees are trained. √ - Trained employees may leave √for better-paying jobs at competitors. √ Any other relevant answer related to the impact of continuous skills development as a TQM element on large businesses. Sub-max (6) Adequate financing and capacity - Large businesses have sufficient funds √to invest in quality systems/modern equipment. √ - Can afford to employ qualified/skilled staff √to manage quality. √ - Funds are available for research and development √to improve products. √ - Can test products regularly √to ensure that they meet quality standards. √ - Large businesses may have more bureaucracy √, which slows down decisions on quality investments. √ - Over-investment in capacity may increase costs √if demand declines. √ Any other relevant answer related to the impact of adequate financing and capacity as a TQM element on large businesses. Sub-max (6) NOTE: Mark positives or negatives or a combination of both. Max (12) Copyright reserved Please turn over

Business Studies/P1 27 NSC – Marking Guidelines Hlayiso/Prediction 2026 6.5 Application of the PDCA model to improve the quality of products Plan - Identify the problem and develop a plan for improvement. √√ - Investigate the causes of the problem and set targets/objectives. √√ Do - Implement the change on a small scale/as a trial. √√ - Collect data on the results of the change. √√ Check - Use the data to analyse the results and compare them with the targets. √√ - Determine whether the change made a difference/what was learnt. √√ Act - Implement the change on a larger scale if it was successful. √√ - Start the cycle again/make further improvements if the change was not successful. √√ Any other relevant answer related to the application of the PDCA model. NOTE: Award a maximum of TWO (2) marks for listing the steps only (Plan, Do, Check, Act). Max (8) 6.6 Conclusion - Businesses that distinguish between quality management and quality performance can set clear quality standards. √√ - Quality performance in all business functions contributes to the success of the business. √√ - Large businesses that apply TQM elements and the PDCA model improve quality continuously. √√ Any other relevant answer related to quality management/performance, business functions, TQM elements, PDCA model. Any (1 x 2) (2) [40] Copyright reserved Please turn over

Business Studies/P1 28 NSC – Marking Guidelines Hlayiso/Prediction 2026 QUESTION 6: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 2 Max 32 Quality management vs performance 8 Performance of business functions 12 TQM elements on large businesses 12 Application of the PDCA model 8 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