# Business Studies Grade 12 Paper 2 KZN Prelim 2024 Memo > Grade 12 Business Studies Paper 2 memorandum from the KZN Prelim Exam 2024, 40 pages. Read online or download the free PDF. - Page: https://www.hlayiso.com/library/kzn-business-studies-grade-12-september-2024-p2-and-memo/537bb816-a58a-49d5-99f5-3d09148dcd57 - Updated: 2026-09-27 - Subject: Business Studies - Grade: Grade 12 - Document type: Memorandum - Year: 2024 - Exam period: KZN Prelim Exam - Paper: 2 - Curriculum: CAPS - Pages: 40 Breadcrumbs: [Home](https://www.hlayiso.com/) › [Library](https://www.hlayiso.com/library) › [Grade 12](https://www.hlayiso.com/library/grade-12) › [Business Studies](https://www.hlayiso.com/library/grade-12/business-studies) › [Business Studies Grade 12 Paper 2 KZN Prelim 2024 Memo](https://www.hlayiso.com/library/kzn-business-studies-grade-12-september-2024-p2-and-memo/537bb816-a58a-49d5-99f5-3d09148dcd57) ## About this document Business Studies · Grade 12 · KZN Prelim Exam · 2024. Memorandum, 40 pages. Read online or download the PDF. Read it free online on the page above; download the PDF from there. ## Document text Text extracted from the PDF. Layout, diagrams and tables may not survive extraction. ### Page 1 Downloaded from hlayiso.com Downloaded from Stanmorephysics.com } KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE EEERTOF epiapeteesiouitl 4 MARKS: 150 TIME: 2 hours This question paper consists of 11 pages. Copyright reserved please turn over ### Page 2 Downloaded from hlayiso.com Howse sate eb from Stanmorephysics . C@Maratory Examination September 2024 INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. a. This question paper consists of THREE sections and covers TWO main topics. SECTION A: COMPULSORY SECTION B: Consists of THREE questions. Answer any TWO of the three questions in this section. SECTION C: Consists of TWO questions. Answer any ONE of two questions in this section. Read the instructions for each question carefully and take note of what is required. Note that ONLY the first TWO questions in SECTION B and the FIRST questions in SECTION C will be marked. Number the answers carefully according to the numbering system used in this question paper. No marks will be awarded for answers that are numbered incorrectly. Except where other instructions are given, answers must be written in full sentences. Use the mark allocation and nature of each question to determine the length and depth of an answer. Use the table below as guide for mark and time allocation when answering each question. SECTION QUESTION MARKS _| TIME (minutes) A: Objective-type questions 1 30 20 COMPULSORY B: THREE direct/indirect-type 2 40 questions 3 40 4 40 70 CHOICE: Answer any TWO. C: TWO essay-type questions 5 40 CHOICE: 6 40 = Answer any ONE. TOTAL 150 120 Copyright reserved please turn over ### Page 3 Downloaded from hlayiso.com Howse sate eb from Stanmorephysics . C@Maratory Examination September 2024 7. Begin the answer to EACH question on a NEW page, e.g. QUESTION 1 — new page, QUESTION 2 — new page. You may use a non-programmable calculator. Write neatly and legibly. Copyright reserved please turn over ### Page 4 Downloaded from hlayiso.com Honess/aante eb from Stanmorephysics. comeratoy Examination September 2024 SECTION A (COMPULSORY) QUESTION 1 1.1 Various options are provided as possible answers to the following questions. Choose the answer and write only the letter (A — D) next to the question number (1.1.4-— 1.1.5) in the ANSWER BOOK, for example 1.1.6 E. 1.1.1 A stipulation set by the insurer which is applicable when goods are insured for less than its market value. over insurance. under insurance. re-instatement clause. Average clause. jweKene ie ich is added to the investment, so that Sis ... investment concept. C private D public 1.1.4 Businesses are expected to employ people from different socio- economic backgrounds. This addresses... as the diversity issue in the workplace. A _— education B equity C poverty D privacy Copyright reserved please turn over ### Page 5 Downloaded from hlayiso.com Howse sate eb from Stanmorephysics . C@Maratory Examination September 2024 1.1.5 Altmembers of the group should randomly make suggestions. This is in accordance with ... problem solving technique. nominal group technique Delphi technique force field analysis brainstorming 0UNOWF (5x2) (10) 1.2 Complete the following statements by using the word(s) in the list below. Write only the word(s) next to the question numbers (1.2.1 to 1.2.5) in the ANSWER BOOK. economic; abuse of work time; customers; compulsory; transactional; rural development; social; autocratic; _non-compulsory; unauthorised use of workplace funds and resources 1.221 . leader does_not invite the team members to contribute ision-making process. Thabo, as the .. 1:22 e insured has a choice whether to enter 1.2.3 One of the focus ai x orate Social Investment is ... 1.2.4 Muzi Trading has employees who download music and movies using the business's assets, and that is referred to as . 1.2.5 Candy Trading ensures equal pay for work of equal value. This is in line with... rights of employees in the workplace. (5x2) (10) Copyright reserved please turn over ### Page 6 Downloaded from hlayiso.com Dowsslsavert from Stanmorephysics.. coteratory Examination September 2024 NSC 1.3. Choose.a description from COLUMN B that matches a term in COLUMN A. Write only the letter (A-J) next to the question number (1.3.1 to 1.3.5) in the ANSWER BOOK. E.g., 1.3.6 K. COLUMN A COLUMN B 1.3.1 | Memorandum of A_ | the ability to think of original and Incorporation innovative ideas. 1.3.2 | Transformational B_ | disagreement between two or more leadership theory parties in the workplace. 1.3.3 | Diversity C | a document inviting the public to buy securities/shares. 1.3.4 | Creative thinking D_ | may lead to conflict when leaders use different leadership styles. 1.3.5 | Grievance E_ | refers to the variety of people employed based on age/race/gender. re G | suitable for: where change could be drastic. mtd ~~ a ar | H the document that sets out the rights, responsibilities and duties of shareholders and directors. | no one should be excluded because of their gender/age. J | when an employee has a problem/complaint in the workplace. (5x2) (10) TOTAL SECTION A: [30] Copyright reserved please turn over ### Page 7 Downloaded from hlayiso.com Howse sate eb from Stanmorephysics . C@Maratory Examination September 2024 SECTION B Answer ANY TWO questions from this section. NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose. The answer to EACH question must start on a NEW page, e.g. QUESTION 2 on a NEW page, QUESTION 3 on a NEW page. QUESTION 2: BUSINESS VENTURES 2.1. List any FOUR examples of non-verbal presentation. (4) 2.2 Identify the principle of insurance applicable to Zicco Services in EACH of the statements below. 2.2.1. Zicco Services ensure that they supply true information when submitting aclaim (2) 2.2.2 Zicco must prove that it will suffer financial loss if their property is destroyed. (2) 2.2.3. Zicco Traders will be placed in the same financial as before the occurrence of loss and damage. (2) 233 (6) 2.4 directors are also ¢ of this form of ownership. 2.4.1 Identify the form of ownership that TM considered from the scenario above. (2) 2.4.2 Discuss the impact of the form of ownership identified in QUESTION 2.4.1. (6) 2.5 Outline differences between leadership and management. (4) 2.6 Describe leaders and followers as a leadership theory. (6) 2.7 Advise businesses on factors that must be considered when preparing for a (6) presentation [40] Copyright reserved please turn over ### Page 8 Downloaded from hlayiso.com Honess/aaxte eb from Stanmorephysics . C@Maratory Examination September 2024 QUESTION 3 BUSINESS ROLES 3.1 Name any FOUR components of Corporate Social Responsibility. (4) 3.2 Explain the benefits of creative thinking in the workplace. (6) 3.3 Discuss the following problem solving steps. 3.3.1 Identify the problem. (2) 3.3.2 Define the problem. (2) 3.4 Read the scenario below and answer the questions that follow. PAUL HOME DESIGNERS (PHD) Paul Home Designers sell furniture and other related products. PHD has applied one of the King Code principles by appointing internal and external auditors to audit their financial statements. 3.4.1 Identify the King’s Code principle for good corporate governance that PHD has applied from the scenario above. (2) 3.4.2 Explain the differences between ethical behaviour and professional behaviour. (4) 3.5 Describe any TWO criteria of successful team performance. (6) 3.6 Discuss conflict resolution steps. (4) 3.7 Identify the type of human rights applicable to Smith and Partners in EACH statement below 3.7.1. The business has kept the confidential information on employees who have disclosed their HIV/Aids status/any chronic illness. (2) 3.7.2 | The business does not force workers to do embarrassing or degrading work. (2) 3.8 Suggest ways in which businesses could deal with language as diversity issue inthe (6) workplace Copyright reserved please turn over ### Page 9 Downloaded from hlayiso.com Dowsslsavert from Stanmorephysics. comeratory Examination September 2024 NSC QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURES 4.1 4.2 4.3 44 Name any TWO examples of non- insurable risks Outline the advantages of state-owned company Read the scenario below and answer the question that follows. RAJKUMAR SPICY SHOP (RSS) Reshma is a democratic leader at Rajkumar Spicy Shop. This leadership style can be used when cooperation is needed between a leader and a team, when employees are new/not fully trained, group members are skilled and eager to share their ideas. 4.3.1. Quote TWO situations in which democratic leadership style can be applied in the workplace 4.3.2 Discuss the impact of the democratic leadership style on businesses Advise businesses on areas of improvement in the next presentation BUSINESS ROLES 4.5 4.6 4.7 4.8 List any TWO types of unprofessional business practices Read the scenario below and answer the questions that follow. aware of their social rights in the are, food, water and social security. rand t access to education. Adam Caterers ensures workplace. Employees have Employees are free from fo — i dicscom tail the scenario above. yore 4.6.1 Name TWO social rig 4.6.2 Discuss ways in which Mthesseateetty protect the environment and promote human health in the workplace Explain how businesses can apply Delphi technique as problem-solving technique. Advise businesses on ways in which professional, responsible, ethical and effective business practice should be conducted. TOTAL SECTION B Copyright reserved please turn over (2) (2) (4) (6) (2) (2) (6) (6) (4) [40] [80] ### Page 10 Downloaded from hlayiso.com Honess/aaxte eb from Stanmorephysics . C@Maratory Examination September 2024 SECTION C Answer ONE question in this section. QUESTION 5: BUSINESS VENTURES (INVESTMENT SECURITIES AND FORMS OF OWNERSHIP) Johannesburg Securities Exchange provides a controlled and regulated platform for the trading of shares. Investors must be well informed about different types of shares they can choose from. They must also know the impact of fixed deposits as a form of investment. Public companies are listed on the JSE, investors must be aware of how management and taxation criteria could contribute to its success and or failure. Write an essay on securities in which you include the following aspects: e Outline the functions of the Johannesburg Securities Exchange. e Explain FOUR types of shares. e Discuss the impact of fixed deposits as a form of investment. e Advise businesses on how the following criteria could contribute to the success and/or failure of a public company: o Management o Taxation [40] QUESTION 6: BUSINESS ROLES (SOCIAL RESPONSIBILITY AND CORPORATE SOCIAL RESPONSIBILITY). Businesses must align | their activities responsibility. It is also important for busine exist between social responsibility encourages businesses to address m unemployment. Businesses are adv to analyse the impact of corporate social responsibility in details. aror mI Write an essay in which you include the following aspects: e Outline the purpose of CSR. e Explain the relationship between social responsibility and triple bottom line e Discuss strategies to deal with the following socio-economic issues: o HIV/Aids o Unemployment e Advise businesses on the impact of CSR. [40] TOTAL SECTION C [40] 40 GRAND TOTAL 150 Copyright reserved ### Page 11 Downloaded from hlayiso.com Downloaded from Stanmorgpbysics.com KWAZULU-NATAL PROVINCE EDUCATION REPUBLIC OF SOUTH AFRICA NATIONAL SENIOR CERTIFICATE GRADE 12 150 This marking guideline consists of 30 pages. Copyright Reserved Please Turn Over ### Page 12 Downloaded from hlayiso.com Busine: ai September 2024 Preparatory Examination Wiildaded from Stanmoraphysiasecom NOTES TO MARKERS PREAMBLE The notes to markers are provided for quality assurance purposes to ensure the following: (a) Fairness, consistency and reliability in the standard of marking. (b) Facilitate the moderation of candidates’ scripts at the different levels. (c) | Streamline the marking process considering the broad spectrum of markers across the country. (d) | Implement appropriate measures in the teaching, learning and assessment of the subject at schools/institutions of learning. iF Candidates’ responses must in full sentences for SECTION B and C. However, this would depend on the nature of the question. 2) A comprehensive marking guideline has been provided but this is by no means exhaustive. Due consideration should be given to an answer that is correct but: Uses different expression from that which appears in the marking guideline Comes from another credible source Original A different approach is issued NOTE: There is only ONE correct answer in SECTION A. 35 Take note of other relevant answers provided by candidates and allocate marks accordingly. (In case where the answer is unclear or indicates some understanding, part-marks should be awarded, for example, one mark instead of the maximum of maximum two marks) 4. The word ‘Sub-max’ is used to facilitate the allocation of marks within a question or sub-question. 5. The purpose of circling marks (guided by the ‘max’ in the breakdown of marks) on the right-hand side is to ensure the consistency and accuracy in the marking of scripts as well as for calculation and moderation purposes. 6. Subtotals to questions must be written in the right-hand side margin. Circle the subtotals as indicated by the allocation of marks. This must be guided by ‘max’ in the marking guidelines. Only the total for each question should appear in the left-hand margin next to the appropriate question number. 7. In an indirect question, the theory as well as the response must be relevant and related to the question. 8. Correct numbering of answers to questions or sub questions is recommended in SECTIONS A and B. However, if the numbering is incorrect, follow the sequence of the candidate’s responses. Candidates will be penalised if the latter is not clear. Copyright Reserved Please Turn Over ### Page 13 Downloaded from hlayiso.com Busine: aiwiléa de d from Stanwmo hysiasncom oe" 7°" Preparatory Examination 9. No additional credit must be given for repetition of facts. Indicate with an ‘R’ 10. The differentiation between ‘evaluate’ and ‘critical evaluate’ can be expressed as follows: 10.1. When ‘evaluate’ is used, candidates are expected to respond in either a positive/negative manner or take neutral (positive and negative) stance, e.g. Positive: ‘COIDA eliminates time and costs spent on lengthy civil court proceedings’ 10.2 When ‘critically evaluate’ is used, candidates a either a positive/negative mai ke ar stance. In this instance candid responses with more depth, e.g. on lengthy civil court proceedings. for compensation to the emplo' hours as long as it can be Provee a xpected to respond in | (positive and negative) ed to support their ime and costs spent loyer will not be liable ined during working was not negligent. NOTE: 1. The above could apply to ‘analyse’ as well. 2. Note the placing of the tick (~) in the allocation of marks. 11. The allocation of marks must be informed by the nature of the question, cognitive verb used, mark allocation in the marking guideline and the context of each question. Cognitive verbs, such as: 11.1 Advise, name, state, mention, outline, motivate, recommend, suggest, (list not exhaustive) do not usually require much depth in candidates’ responses. Therefore, the mark allocation for each statement/answer appears at the end. 11.2 Define, describe, explain, discuss, elaborate, distinguish, differentiate, compare, tabulate, justify, analyse, evaluate, critically evaluate (list not exhaustive) require a greater depth of understanding, application and reasoning. Therefore, the marks must be allocated more objectively to ensure that assessing is conducted according to established norms so that uniformity, consistency and fairness are achieved. 12. | Mark only the FIRST answer where candidates offer more than one answer for SECTION B and C questions that require one answer. Copyright Reserved Please Turn Over ### Page 14 Downloaded from hlayiso.com Busine: wiitiloaded from Stanwmo hysigsnacom 7" Preparatory Examination 13. SECTIONB 13.1. If for example, FIVE facts are required, mark the candidates’ FIRST FIVE responses and ignore the rest of the responses. Indicate by drawing a line across the unmarked portion or use the word ‘Cancel’. NOTE: this applies only to questions where the number of facts is specified. 13.2 __ If two facts are written in one sentence, award the candidate FULL credit point above still applies. 13.3 If candidates are required to provide their own examples/views, brainstorm this at memo discussions. 13.4 Use of the cognitive verbs and allocation of marks: 13.4.1 If the number of facts are specified, questions that require candidate to describe/discuss/explain may be marked as follows: e Fact 2 marks (or as indicated in the marking guidelines) e Explanation 1 mark (two marks will be allocated in Section C) The ‘fact’ and ‘explanation’ are given separately in the marking guideline to facilitate mark allocation. 13.4.2 If the number of facts requires i i Ocation of marks must be informed b' maximum mark allocated i 13.5 ONE mark may be awarded for answers t P recall, requires one-word answers or is quoted direct! f /case study. This applies to SECTION B and C in pa 14. SECTIONC 14.1. The breakdown of the mark allocation of the essays is as follows: Introduction Content Maximum: 32 Conclusion Insight 8 TOTAL 40 Copyright Reserved Please Turn Over ### Page 15 Downloaded from hlayiso.com Busine: wiitiloaded from Stanwmo hysiasncom oe" 7" Preparatory Examination 14.2 Insight consists of the following components: Layout/Structure Is there an introduction, body and conclusion? 2 Analysis and interpretation Is the candidate able to break down the question into headings/subheadings/interpret it correctly to show understanding of what is being asked? Marks must be allocated using this guide: All headings addressed: 1 (One ‘A’) Interpretation (16 to 32 marks) _1 (One ‘A’) Synthesis Are there relevant decisions/facts/responses made based on the questions? Option 1: Only relevant facts: 2 marks (No — ‘S’) Where a candidate answers 50% or more (two to four sub-questions) of the question with only relevant facts; no —‘S’ appears in the left margin. Award the maximum of TWO (2) marks for synthesis. Option 2: Some relevant facts: 1 mark (One ‘S’) Where a’candidate answers than 50% (only jub-ques question with on facts; one - ‘S’ app margin. Award a ma) mark for synthesis. — Option 3: Some relevant a : ‘S’) Where a candidate answers FOUR sub-questions, but one/two/three sub- questions with no relevant facts; one — ‘S’ appears in the left margin. Award a maximum of ONE (1) mark for synthesis. Option 4: No relevant facts: 0 mark (Two —‘S’) Where a candidate answers less than 50% (only one sub-question) of the questions with no relevant facts; two — ‘S’ appears in the left margin. Award a ZERO- mark synthesis. Originality Is there evidence of one or two examples not older than two (2) years that are based on recent 2 information, current trends and development? TOTAL FOR INSIGHT: 8 TOTAL MARKS FOR FACTS: 32 TOTAL MARKS FOR ESSAY 8+ 32: 40 NOTE: (1) No marks will be awarded for content repeated from the introduction and conclusion. (2) The candidate forfeits marks layout in the words INTRODUCTION and CONCLUSION are not stated. (3) No marks will be awarded for layout, if the headings INTRODUCTION and CONCLUSION are not supported by an explanation. Copyright Reserved Please Turn Over ### Page 16 Downloaded from hlayiso.com Busine: wiitiloaded from Stanwmo hysigsnccom 770" Preparatory Examination 14.3 Indicate insight in the left-hand margin with a symbol e.g. (L, A, S, and/or O) 14.4 The breakdown of marks is indicated at the end of the suggested answer/ marking guideline to each question. 14.5 Mark all the relevant facts until the SUB MAX/MAX mark in a subsection has been attained. Write SUB MAX/MAX after maximum marks have been obtained, but continue reading for originality “O” 14.6 At the end of each essay indicate the allocation of marks for facts and marks for insight as follows: (L- Layout, A- Analysis, S- Synthesis, O- Originality) as in the table below: CONTENT MARKS Facts 32 (max.) L 2 A 2 S 2 O 2 TOTAL 40 14.7 When awarding marks for facts, take notes of the sub-maximum indicated, especially if candidates do not make use of the same headings. Remember, headings and sub-headings are encouraged and contribute to insight (See MARK BREAKDOWN at the end of each question.) 14.8 If the candidate identifies/interprets the question INCORRECTLY, then she/he may still obtain marks for layout. 14.9 If a different approach is used by candidates, ensure that the answers are assessed according to the mark allocation/subheadings as indicated in the marking guidelines. 14.10 14.10.1 Award TWO marks for complete sentences. Award ONE for phrases, incomplete sentences and vague answers. 14.10.2 With effect from November 2015, the TWO marks will not necessarily at the end of each completed sentence. The ticks (v) will be separated and indicated next to each fact, e.g. ‘Product development is a growth strategy, where businesses aim to introduce new products into existing markets’ This will be informed by the nature and context of the question, as well as the cognitive verb used. 14.11 With the effect from November 2017, the maximum of TWO (2) marks for facts shown as headings in the marking guidelines, will not necessary apply to each question. This would also depend to the nature of question. Copyright Reserved Please Turn Over ### Page 17 Downloaded from hlayiso.com Busine: ainloa de d from Stanmeo hysi ‘om year et Preparatory Examination SECTION A: (COMPULSORY) QUESTION 1 1.1 1.3 1.1.1 D¥v 1.1.2 Avv 1.1.3 BYY 1.1.4 he rept flee LOM 1.3.1 H¥Y 1.3.2 Gv¥v 13.3 EVV 13.4 Avv 13.5 Jv¥v Copyright Reserved (5 x 2) (10) ids and resources VV (5 x 2) (10) (5 x 2) (10) TOTAL SECTION A: 30 BREAKDOWN OF MARKS QUESTION 1 MARKS 1.1 10 1.2 10 1.3 10 TOTAL 30 Please Turn Over ### Page 18 Busine: Downloaded from hlayiso.com September 2024 Preparatory Examination Wiildaded from Stanmoraphysigsncom ai SECTION B Answer any TWO questions from this Section. QUESTION 2: BUSINESS VENTURES 2.1 22 2.3 Examples of non-verbal presentation Tables v Graphs (Bar graph/Line graph/Histogram/Pie graph v Diagrams v Illustrations/Pictures/Photographs/Scenarios Vv Written/Business reports v Flip charts ¥ Handouts ¥ Slide shows ¥ NOTE: Mark the first FOUR (4) only. (4x 1)(4) Insurance principles applicable from the statements: 2.2.1 Utnist good faith Vv" (2) 2.2.2. Insurable interes P (2) 2.2.3 Indemnifi ity. (2) Moning Pp Brrereohf ins! concept. Excess is the amount the that the insured agrees to pay upfront “when he/she takes take out an insurance policy” . /The amount that insured agrees to pay upfront “as stipulated in the insurance policy. ¥ - A portion of the insurance claim that the insured will have to pay“ towards the cost of replacing/repairing the goods/property concerned. ~ - Excess payments protect the insurer against fraudulent claims” as the insured is less likely to submit a false claim /when he/she needs to pay the amount upfront. ¥ - It is the amount paid to the insurer “when a claim for a damage is lodged/ in the event of a claim. - Higher excess amounts keep the insurance premium lower ¥ and discourage fraud. ¥ - Excess payment prevents the insured” from claiming for minor damages. ¥ - Any other relevant answer related to excess as the insurance concept. Max (6) Copyright Reserved Please Turn Over ### Page 19 Downloaded from hlayiso.com Busine: wiitiloaded from Stanwmo by. : “ron Preparatory Examination 2.4 2.4.1 2.4.2 Form of ownership Form of ownership from the scenario Personal liability company VW (2) Impact/advantages and disadvantages of a personal liability Company Positives/advantages More opportunitiesv to pay less taxation. v Good long-term growthY opportunities. ¥ Own legal identity” and shareholders have no direct legal implications/ limited liability. ¥ Board of directors with expertise/experienceY can be appointed to take decisions. ¥ Not required to file annual financial statements Y with the commission. “ It is a legal personY and can sign contracts in its own name. ¥ The new Act forces personal liability on directors“ who knowingly participated in carrying out business» reckless/fraudulent manner. ¥ Financial statements are privatey an t available to the public. ¥ A company has continuity” It is possible to 3 as it is a legal entity. ¥ It can easy raise cap ] res to its members. ¥ Any other relevant a positive impact of personal liability company : Negatives/Disadvantage RequiresY a lot of capital. The more shareholders, “the less profits. ¥ More taxation” requirements. ¥ Directors do not have a personal interestY on the company. ~ Annual financial statements must be reviewed by a qualified person, ¥ which is an extra expense to the company. “ Difficult and expensive to establishY as the company is subjected to many legal requirements. “ Pays tax on the profits of the business“ and on declared dividends“ / Subject tov double taxation. Must prepareY annual financial statements. “ Any other relevant answer related to negative impact of personal liability company. Max (6) Copyright Reserved Please Turn Over ### Page 20 Downloaded from hlayiso.com Businesg Studies fo) Wiildaded from Stanmoraphiysiésncom September 2024 Preparatory Examination 2.5 Differences between leadership and management LEADERSHIP MANAGEMENT - _ Influences human behaviour. ~Y |- Guides human behaviour. vv - Communicates by means of|- Communicates through management interaction/behaviour/vision/value functions, e.g., line function. Vv s/ charisma. vv -_Innovates/Encourages new ideas |- Administers plans/programs/tasks to reach to increase productivity. vv - targets. vv - Inspires staff to trust and support |- Controls systems and procedures to get the each another. job done. vv - Focuses on what and why. vv - Focuses on how and when. vv - Focuses on the horizon/longterm.|- Focuses on the bottom _ line/short/ we medium/long - term. vv - Leaders are born with natural/|- A person becomes a manager because of the instinctive leadership skills. vv position in which he/she is appointed. vv - Guides/Leads people to become |- Manages the process of getting things done by active participants. vv exercising responsibility. vv - Leaders have power/influence|- Managers have power because of the position because of his/her of authority into which they are appointed. vv knowledge/skills/ intelligence. vv - Always trying to find more efficient] - Enforce rules on subordinates/~Ensure that ways of completing tasks. vv tasks are completed. vv - Motivational/Inspirational in theinje tructionalv in their approach. vv approach. VV |) SH - People orientated. vv — k orientated. vv - Lead by example/trust/r by planning/organising/ ding/control. vv - Does the right things “ s things right vv - Any other relevant answer related other relevant answer related to to leadership. management. Sub max (2) Sub max (2) NOTE: 1. The answer does not have to be in tabular. 2. The differences do not have to link but must be clear. 3. Award a maximum of ONE mark if the differences are not clear. / Mark either leadership or management only. Max (4) Copyright Reserved Please Turn Over ### Page 21 Downloaded from hlayiso.com September 2024 Preparatory Examination “s"HoWwriloaded from Stanmoraphysiasncom 2.6 Leaders and followers as leadership theory. - Teams achieve great results when there is a sense of understandingv between the leader and the team of followers. ” - Followers listen to what is expected of themv and are willing to work as a team. v - Followers easily accept responsibility” when something doesn’t work out. ¥ - Leaders lead by examplev and reward positive behaviour. ¥ - Leaders motivate employees to devise alternative strategies to find more efficient waysv to use available resources. ¥ - Followers might just trail along depending on leaders and other followers v to pull them through the task. - Any other relevant answer related to leaders and followers as leadership theory. Max (6) 2.7. Factors that must be considered when preparing for a presentation: - Clear purpose/intentions/objectives and main points of the presentation. vv - Main aims captured in the introduction/opening statement of the presentation. VV - Information presented should be relevant and accurate. vv - Fully conversant with the content/objectives of the presentation. Vv“ - Background/diversity/size/pre-knowledge.of the audience to determine the appropriate visualhaids. ¥¥~ é ’ - Prepare a rough draft of introduction, bo - The conclusion must sui objectives/shows that all - Create visual aids/graj will lidate the information/facts to be conveyed to the board « tors. v on - Find out about the venu je pres in, e.g., what equipment is available/appropriate/availability of generators as backup to load shedding. Vv - Consider the time frame for presentation, e.g., fifteen minutes allowed. Vv - Rehearse to ensure a confident presentation/effective use of time management. Vv” - Prepare for the feedback session, by anticipating possible questions/ comments. vv - Any other relevant answer related to factors that must be considered when preparing for a presentation. ith a logical structure/format with an cts and how it relates to the 3n addressed. V¥ Max (6) BREAKDOWN OF MARKS QUESTION 2) MARKS 2.1 2.2.1 2.2.2 2.2.3 2.3. 2.4.1 2.4.2 2.5 2.6 2.7 Blalo|ala|Nl\o}n|p/y) a TOTAL Copyright Reserved Please Turn Over ### Page 22 Downloaded from hlayiso.com September 2024 Preparatory Examination Wiildaded from Stanmoraphysiasecom QUESTION 3: BUSINESS ROLES Busine: ai 3.1 Cobgeeyfents of Corporate Social Responsibility (CSR) Environment ¥ - Ethical corporate social investment “ - Health and safety” - Corporate governance ¥ - Business ethics ¥ - Employment equity - Supply chain/Distribution channel ~ - CustomersY¥ Community” NOTE: Mark the first FOUR (4) only. (4x 1) (4) 3.2. Benefits of creative thinking in the workplace - Better/Unique/Unconventional ideas/solutions” are generated. v - Complex business problemsY may be solved. ¥ - Improves motivation ~amongst staff members. ¥ - Management/employees may keep up with fast changing technologyY which may lead to an increased in market share. ¥ Creativity may lead to new inventions Y which improves the general standard of living. v - May give the business a competitive advantage” if unusual/unique solutions/ ideas/strategies are implemented. v - Productivity increases as management/employees may quickly generate multiple ideasv which utilises time and money more effectively. v - Managers/Employees have more confidencev as they can live up to their full potential. Managers.will be leaders “as they will be able to handle/manage ind creatively. v an develop a completely new outlook, “ which may be they may do. v attitudes Yas managers/employees feel that they have nave a feeling of great accomplishment, ¥ and they will process once they solved a problem/contributed towards thes success of the business. ¥ Stimulates initiative from employees/managers, “as they are continuously pushed out of their comfort zone. v - Creativity may lead to new inventions “which improves the general standards of living/attract new investors. Vv - Businesses can continuously improve on product development” by exploring new ways to enhance growth. v - Any other relevant answer related to benefits of creative thinking in the workplace 1 Max (6) Copyright Reserved Please Turn Over ### Page 23 Downloaded from hlayiso.com September 2024 Preparatory Examination Wiiloaded from Stanmoraphysicsncom Busine: ai 3.3. Problem-solving steps. 3.3.1. Identify the problem - Acknowledgev that there is a problem. “ - IdentifyY the exact problem. v - _ Break down the problem into smaller parts” that are easier solve separately. ¥ ~ Any other relevant answer related to identify the problem as application of problem-solving step Sub max (2) Define the problem =-—Name the problem “by stating exactly what the problem is. ¥ - Find different of waysv of defining the problem. v - Define the possible causes of the problem. “ - The nature of the problemv must be precise. ¥ - Gather as much information as possiblev to establish the cause Vv - Any other relevant answer related to define the problem as application of problem-solving step. 3.4 King code principles Sub max (2) Max (4) 3.4.1. King’s Code principle for good corporate governance from the scenario: — Accountability vv (2) 3.4.2 Differences between ethical behaviour and professional behaviour ETHICAL BEHAVIOUR PROFESSIONAL BEHAVIOUR - Refers to the principles of right and wrong/acceptable-v in society. v Refers to what is right/wrong/ acceptableY in a business. v - Conforms to a set of valuesv that are morally acceptable. v Professional behaviour is a certain standard of behaviour/specific level of competence ¥ that adheres to an ethical code of conduct. v - Forms part of a code of conductv to guide employees to act ethically. v Applying a code of conductv of a profession or business. ¥ - Focuses on developing a moral compassv for decision making. 7 _ business/prot Focuses on » ip the reputation” of a right and wrongv in business activities/practices/dealings. V - Involves following the principles of | - Oe, guideline - Any other relevant answer related to ethical behaviour. perenne Eicon Oe Sub-max (2) | Sub-max (2) NOTE:1 The answer does not have to be in tabular. 2. The differences do not have to link but must be clear. 3 Award a maximum of TWO mark if the differences are not clear. Mark either ethical behaviour or professional behaviour only. Max (4) Copyright Reserved Please Turn Over ### Page 24 Businesg Studies fo) Wiiloaded from Stanmoraphysicsncom Downloaded from hlayiso.com September 2024 Preparatory Examination 3.5 Criteria for successful team performance Interpersonal attitudes and behaviour vv Members have a positive attitude of support and motivation towards each other. “ Good/Sound interpersonal relationships will ensure job satisfaction/increase productivity of the team. v Members are committed/passionate towards achieving a common goal/objectives. Team leader acknowledges/gives credit to members for positive contributions. “ Any other relevant answer related to interpersonal attitude and behaviour as a criterion for successful team performance. Criterion (2) Description (1) Sub max (3) Shared values/ Mutual trust and support vv Shows loyalty/respect/trust towards team members despite differences. V Shows respect for the knowledge/skills of other members. ~ Perform team tasks with integrity/pursuing responsibility/meeting team deadlines with necessary commitment to team goals. ¥ Any other relevant answer related to shared values/ mutual trust and support as a criterion for successful team performance. Criterion (2) Description (1) Sub max (3) Communicationv v A clear set of processes/procedures for teamwork ensures that every team member understands his/her role. ¥ Efficient/Good communication between team members may result in quick decisions. ¥ Quality feedback improves the morale of the team. ” Open/Honest discussions lead to effective solutions of problems. ¥ Continuous review of team progress ensures that team members can rectify mistakes/act pro-actively to ensure that goals/targets are reached. ¥ Any other relevant answer related to communication as a criterion for successful team performance. Criterion (2) Description (1) Sub max (3) Co-operation/ Collaborationv v Clearly defined realistic goals are set, so that all members know exactly what is to be accomplished. ” All members take part in decision making. ¥ Willingness to co-operate as a unit to achieve team objectives. v Co-operate with management to achieve team/business objectives. v Agree on methods/ways to get the job done effectively without wasting time on conflict resolution. v A balanced composition of skills/knowledge/experience/expertise ensures that teams achieve their objectives. v Any other relevant answer related to co-operation/ collaboration as a criterion for successful team performance. Criterion (2) Description (1) Sub max (3) NOTE: 1. Mark the first TWO only. Max (6) Copyright Reserved Please Turn Over ### Page 25 Downloaded from hlayiso.com Busine: ai September 2024 Preparatory Examination Wiildaded from Stanmoraphiysiéséncom 3.6 Conflict resolution steps in the workplace. - Acknowledge that there is conflictv in the workplace. v - Identify the cause” of the conflict. v - Arrange pre-negotiations where workers/complainants will be allowedv to state their case/views separately. v - Arrange time and place for negotiationsv where all employees involved are present. v - Arrange a meetingY between conflicting employers/employees. ~ - Make intentions for intervention clear so that parties involvedv may feel at ease. V - Each party has the opportunity” to express his/her own opinions/feelings. - Conflicting parties may recognise that their views are differentv during the meeting. v - Analyse/Evaluate the cause (s) of conflict by breaking it downv into different parts. ¥ - Blame shifting should be avoided” and a joint effort should be made. v - Direct conflicting parties towards finding/focusing on solutions. v - Devise/Brainstorm possible ways” of resolving the conflict. v - Conflicting parties agree on criteriav to evaluate the alternatives. v - Select and implementv the best solution. v - Provide opportunities for parties to agreev on the best solution. ~ - Evaluate/Follow up on the implementation of the solution(s). ~ - Monitor progress to ensure that the conflictv has been resolved. v - Source experts on handling conflict from outside the business. v - Any other relevant answer related to conflict resolution steps in the workplace. NOTE: 1. Steps may be in any order. Max (4) 3.7.1. Type of human rights applicable from the statements. 3.7.1 Privacy vv (2) 3.7.2. Dignity vv (2) 3.8 | Ways in which businesses could deal with language as diversity issue in the workplace. - Provide training in the official language of the business. vv - No worker should feel excluded in meetings conducted in one language only. vv - Employ an interpreter so that everyone can fully understand what is being said in a meeting. VY - All business contracts should be in an easy-to-understand language and - should be available in the language of choice for the relevant parties signing the contract. vv - Business may specify that all communications should be in one specific language only and would expect employees to have a certain level of fluency in that language. vv - Any other relevant answer related to ways in which businesses could deal with language as diversity issue in the workplace Max (6) [40] Copyright Reserved Please Turn Over ### Page 26 Downloaded from hlayiso.com September 2024 Preparatory Examination Wiiloaded from Stanmoraphysicsncom Busine: ai BREAKDOWN OF MARKS QUESTION 3 MARKS 3.1 4 3.2. 3.3.1 3.3.2 3.4.1 3.4.2 3.5 3.6 3.7.1 3.7.2 ONIN) P/O) /NM) Y/Y! oO 3.8 TOTAL c= oO QUESTION 4: MISCELLANEOUS TOPICS BUSINESS VENTURE 4.1 Examples of non- insurable risks - Losses caused by war. ¥ - Most risks occurring between placing orders and receiving goods. ¥ - Changes in fashion. ¥ - Losses caused by marketing malpractices by the business. “ - Advancement in technology/new machinery invention.” Any other relevant answer related to examples of non- insurable risks. NOTE: Mark the first TWO (2) only. (2 x 1) (2) 4.2 Advantages of state-owned company: - Profits may be used to finance other state departments. vv - Offer essential services which may notibe offered by the private sector. vv - Prices are kept ropgonableiGy 2 ind competition with the private sector to make se: ard itizens. vv - Wasteful duplication ‘ - Planning can be coo - Generates income to” - Jobs are created fo! - Any other relevant ansi advantages of state-owned company Max (6) 4.3. Management and leadership: 4.3.1 Quoting from the scenario from the scenario: - This leadership style can be used when cooperation is needed between a leader and a team. v - group members are skilled and eager to share their ideas. v NOTE: 1. Mark the first TWO (2) only. 2. Only award marks for responses that are quoted from the scenario. (2x1) (2) Copyright Reserved Please Turn Over ### Page 27 Downloaded from hlayiso.com Busine: aiwiléa de d from Ss tanmwo ki ysis £0 Bh ert Preparatory Examination 4.3.2 impact of the democratic/participative leadership style on businesses Positives/Advantages The leader allows the employees to participate in the decision-making process, “ so they feel empowered/positive. v Staff gives a variety of ideas/inputs/feedback/viewpointsv that can lead to innovation/improved production methods/increased sales. “ Clear/Two-way communication ensures group commitment” to final decision(s). v Authority is delegated which can motivate/inspire workersv to be more productive. v Complex decisions can be madev with inputs from specialists/skilled workers. “ Any other relevant answer related to positive impact of the democratic leadership style on businesses. AND/OR Negatives/Disadvantages 4.4 Areas of improvement in the next presenta Incorrect decisions may be madev if staff is inexperienced/not fully informed. ¥ Decision a ey be time consuming ‘because stakeholders have to be s/inputs are not considered. ¥ ollowersvY and fail to make a final sions need to be made. v decision makingv and their feedback mpact of the democratic leadership Max (4) The presenter should revise objectives that were not achieved. vv Use humour appropriately. vv Always be prepared to update/keep the information relevant. vv Reflect on any problem/criticism and avoid it in future presentations. vv Any information that the presenter receives as feedback from a presentation should be analysed and where relevant, incorporated/used to update/amend his presentation. vv Reflect on the time/length of the presentation to add/remove content. vv Increase/Decrease the use of visual aids or replace/remove aids that do not work well. vv Reflect on the logical flow of the format/slides/application of visual aids. vv Any other relevant answer related to the areas of improvement in the next presentation. Max (6) Copyright Reserved Please Turn Over ### Page 28 Downloaded from hlayiso.com Busine: wiitiloaded from Stanwmo fiysiasncom °™e' 20% Preparatory Examination BUSINESS ROLES 4.5 Types of unprofessional business practice from the scenario - Unuathourised use of business funds and resourcesY - Sexual harassmentY - Abuse of work timev NOTE: Mark the first TWO (2) only. (2x1) (2) 4.6 Human rights, inclusivity and environmental issues 4.6.1 Social rights of employees in the workplace from the scenario — Healthcare, food, water and social security. ¥ — Education. v NOTE: 1. Mark the first TWO (2) only. 2. Answers must be from the scenario Max (2) 4.6.2 Ways in which businesses could protect the environment and promote human health in the workplace. - Laws and regulations should be adhered to so that profits are not generatedv at the expense of the environment. v - Pollution and other environmental issues should always be considered in all business activities, v e.g. safe disposal of waste/dumping of toxic waste, etc. v - Become involvedv in environmental awareness programmes. ¥ - The environment can be protected by altering production techniques” in favour of cleaner and greener technologies. v - Water for human consumption should be testedv before it is used. Vv = Promote nature conservation by looking after natural resources. “ - Minimise pollution, “ by re-using, reducing and recycling. v - Reduce consumption of goods/servicesY which are environmentally unfriendly. ~ - Register/Engage with recognised institutions/bodies” that promote green peace. v = Physical working conditions should always be worker friendly, “ safe and promote occupational health. v - Physical working conditions, e.g., adequate lighting/ventilation should be availableY and functional. ~ - Machines must be serviced/maintainedv regularly. ~ = Educate peoplev about hygiene issues. v - Encourage employees” to do regular health checks. ” - Any other relevant answer related to ways in which businesses could protect the environment and promote human health in the workplace Max (6) Copyright Reserved Please Turn Over ### Page 29 Businesg Studies fo) Wiildaded from Stanmoraphiysiésncom 4.7 Ap Downloaded from hlayiso.com September 2024 Preparatory Examination plication of the Delphi technique Businesses must invite a panel of experts to research the complaints from customers. ¥ Experts do not have to be in one placev and will be contacted individually. v Design a questionnaire consisting of questions on how to improve the quality of their products and distribute itv to the panel members/experts. “ Request the panel to individually respond to the questionnairew/suggest improvements to the products and return it to the business. ¥ Summarise the responses from the experts” in a feedback report. ¥ Send the feedback reportand a s set of questions” /questionnaire based on the feedback report to the panel r v Request panel! mer ib sk er input~/ideas on how to improve the quality results/documentation. v e based on previous feedbackv from the second Prepare a final summary/feedback A. with all the methods to improve the quality” of the business's products. ¥ The business should choose the best solution/proposal” after reaching consensus. ~ Any other relevant answer related to the application of the Delphi technique Max (6) 4.8 Ways in which professional, responsible, ethical and effective business practice should be conducted Mission statement should include values of equality/respect. vv Treat workers with respect/dignity by recognising work well done. vv Treat all their employees equally, regardless of their race/colour/age/gender/disability etc. vv All workers should have access to equal opportunities/positions/resources. Vv Plan properly and put preventative measures in place. Vv Pay fair wages/salaries which is in line with the minimum requirements of the BCEA/Remunerate employees for working overtime/during public holidays. vv Ensure that employees work in a work environment that is conducive to safety/ Fairness/free from embarrassment. v ¥ Refrain from starting a venture using other businesses' ideas that are protected by law. vv Engage in environmental awareness programmes/Refrain from polluting the environment, e.g. by legally disposing of toxic waste. vv Employers and employees need to comply with legislation with regard to equal opportunities/human rights in the workplace. v ¥ Businesses should develop equity programmes/promote strategies to ensure that all employees are treated equally regardless of status/rank/power. vv Training/Information/Business policies should include issues such as diversity/ discrimination/harassment. Vv“ Employers should respond swiftly and fairly to reported incidents of discrimination in the workplace. vv Copyright Reserved Please Turn Over ### Page 30 Downloaded from hlayiso.com Busine: aiwiléa de d from Stanwmo Rysiigsnco pag rember e024 Preparatory Examination — Orders/Tasks should be given respectfully and allow the recipient/employee to have a say in the manner in which the task should be performed. vv - Business decisi ions must be clear/transparent to all stakeholders. vv f /responsible for their decisions and actions/ patent rights. ~_ Hire honest/trus OL s/financial officers with good credentials. vv Regular/Timeo vv — Draw up a code \ vv — On-going Pitinnoreniypsles ci Aing for all employees. vv — Performance management systems/Appraisals should be in place. vv — Adequate internal controls/monitoring/evaluation. vv — Any other relevant answer related to the ways in which professional, responsible, ethical and effective business practice should be conducted Max (4) [40] BREAKDOWN OF MARKS QUESTION 4 MARKS 41 4.2 4.3.1 4.3.2 4.4 4.5 4.6.1 4.6.2 4.7 PID!) D/O | OM) B/M|/ ro 4.8 TOTAL 40 TOTAL SECTION B: 80 Copyright Reserved Please Turn Over ### Page 31 Downloaded from hlayiso.com September 2024 Preparatory Examination Wiildaded from Stanmoraphysiésncom Busine: ai SECTION C Answer ONE question in this section. QUESTION 5: BUSINESS VENTURES (INVESTMENT SECURITIES AND FORMS OF OWNERSHIP). 5.1 Introduction - Johannesburg Securities Exchange (JSE) is a formal market, trading in shares, comprising of all public companies that have been listed. _ Investors should make an informed decision when investing in shares. ¥ - A fixed deposit is a long-term investment offered by banks to potential investors. ¥ - Public company is a company that is listed on a stock exchange and may offer its shares to the general public. ¥ - Any other relevant introduction related to functions of the Johannesburg Securities Exchange/ types of shares/ the impact of fixed deposits as a form of investment/success and/or failure of the Public Company. Any (2x1) (2) 5.2 Functions of the Johannesburg Securities Exchange. = Gives opportunities to financial institutions to invest their surplus funds in shares. Vv ¥ - Serves as a barometer/indicator of economic conditions in South Africa. vv” - Keeps investors informed by publishing share prices daily. Vv ¥ - Acts as a link between investors and public companies. Vv” - Shares are valued and assessed by experts. vv e economy of the country through n the open market. vv /orderly market for securities. VW investments in listed companies. Vv ¥ - Strict investment — - Raises primary capital by - Mobilises the funds of ins - Regulates the market fortrading in sro vv - Plans, research, and advises on in' it possibilities. vv - Ensures that the market operates in a transparent manner. ¥~ - Provides protection for investors through strict rules/legislation. vv - Encourages short-term investment as shares can be sold at any time. v“” - Facilitates electronic trading of shares/STRATE/Channels financial resources into productive economic activities. vv = Enhance job creation and increases economic growth/development. v - Any other relevant answer related to functions of the Johannesburg Securities Exchange. Max (8) Copyright Reserved Please Turn Over ### Page 32 Downloaded from hlayiso.com Busine: ai September 2024 Preparatory Examination Wiildaded from Stanmoraphiysiéséncom 5.3. Types of shares. 5.3.1 Ordinary shares VV - Ordinary shares only receive dividendsY when profit is made. ¥ - Normally the higher the net profit, v the higher the dividend. ¥ = Shareholders are the last to be paidv,, if the company is declared bankrupt/ liquidated. “ - Dividends vary from year to year according to profits madev and are determined by the company/board of directors. ¥ - Shareholders have a right to votev at the Annual General Meeting/AGM. “ - Any other relevant answer related to ordinary shares. Heading 2 Explanation 2 Sub max (4) 5.3.2 Preference sharesv V - Some of these types of shares receive dividends regardless of whether a profit is made or not. ¥ - A fixed rate of return is paidv on this type of shares. V - Shareholders have a preferred claim on company assetsv in the event of bankruptcy/liquidation. ¥ - These shares enjoy preferential rights to dividends/repaymentv over ordinary shares. ¥ - Dividends are payable” according to the type of preference share. ¥ - Voting rights are restrictedv to particular circumstances/resolutions. “ - Non-cumulative preference shareholders will not receive any outstanding dividendsv from previous years. ¥ - Cumulative preference shareholders will receive outstanding dividends” from previous years. ¥ - Redeemable preference shares can be redeemed/bought back at the option of the issuing company” on a pre-determined future date. v - Non-redeemable preference shares are only bought back when the company closes down” for reasons other than bankruptcy. “ - Convertible preference shares are converted to ordinary shares after a fixed period/on the date” specified when the preference shares were issued. “ - Non-convertible preference shares will not be converted” into ordinary shares.” - Any other relevant answer related to preference shares. Heading 2 Explanation 2 Sub max (4) 5.3.3. Founders’ shares VV - Issued to the founders and incorporators/promotersY of the company. ~ - They receive dividends after all other shareholders” were paid. V - Any other relevant answer related to founder’s shares. Heading 2 Explanation 2 Sub max (4) Copyright Reserved Please Turn Over ### Page 33 Downloaded from hlayiso.com Busine: aiwiléa de d from Stanwmo Giysiigsincom oe" 70°" Preparatory Examination 5.3.4 Bonus shares VV - Payment in the form of shares.” to shareholders. ¥ - Issued as compensation.” for unpaid dividends.“ - Shareholders will own more shares.v and collect more dividends in the future. ¥ = Shareholders receive these shares without being required.v to pay for them.” - Any other relevant answer related to bonus shares. Heading 2 Explanation 2 Sub max (4) Max (16) 5.4 Impact of fixed deposits as a form of investment. Positives/Advantages - Interest is earned at a fixed rate regardless of changesv in the economic climate. ¥ - The period of investm: ‘can be over a short/medium/long term. “ 2 nvestment period” that suits them. “ - Investors can i n rest earned is paid out” on the maturity date. ¥ ine as investors cannot withdraw their funds” before the turn on investment” than on an ordinary savings jount/the longer the investment period, v the higher the interest rate offered by a financial institution. ~ - It has a low risk as investors are guaranteed of the final payment. v - Any other relevant answer related to positives/advantages of fixed deposits AND/OR Negatives/Disadvantages - The investor cannot withdraw their funds” before the maturity date. ¥ - May not outperform the effect of inflation” over long term. ¥ - Low returnsY compared to other investments. v. - Any other relevant answer related to negatives/disadvantages of fixed deposits Max (10) Copyright Reserved Please Turn Over ### Page 34 Businesg Studies fo) wn Downloaded from hlayiso.com [Gaded from Stanmoraphysias.com September 2024 Preparatory Examination 5.5 Success and/or failure of the Public company. Public company FACTOR |SUCCESS AND/OR FAILURE Management — Managed by a competent/|- Directors may not have a direct highly skilled board of interest in the company, which can directors. VY hamper growth and profit — The management of the maximization.v v company can improve | - Large management structure can since directors are result in decision making taking accountable to time.vv . shareholders. VV - Directors' fees increase the — Shareholders can vote company's expenses which reduces} for/appoint the most net profit. vv capable directors to|- Management may open to legal manage their company. challenges if their reports do not Vv comply with King Code 111. — Any other relevant answer |~ | Some shareholders may not exercise} related to management as their voting rights resulting in success factor choosing the wrong person as a director. vv - Directors may not be motivated to work very hard because shareholders} decide on the director's remuneration. vv Any other relevant answer related to management as failure factor. Taxation — Can obtain tax rebates if Subject to double taxation e.g., they are involved in CSI shareholders pay secondary tax projects. vv this can have a negative impact to — Can obtain government a company that is already tenders and renew their financially struggling. vv licenses if they do not Any other relevant answer related evade tax. ¥ to taxation as failure factor. — Any other relevant answer related to taxation as success factor. Sub max (6) Sub max (6 NOTE: 1. The answer does not have to be in tabular. 2. Responses can either be show both positives and negatives or only positives or negatives. 3. Award a maximum of SIX (6) marks if the factors are not clear. / Mark either management or taxation only. Copyright Reserved Max (12) Please Turn Over ### Page 35 Businesg Studies Wiildaded from Stanmoraphiysiasecom Downloaded from hlayiso.com September 2024 Preparatory Examination 5.6 Conclusion Johannesburg Securities Exchange (JSE) ensures all listed companies Operate within certain rules and regulations. vv A clear understanding of different types of shares will help the investors to make the right choice. Fixed deposit provides investors a high rate of interest as compared to savings Account.v¥ Public company must at least have three directors to manage and ensure tax compliance by the business. vv Any other relevant conclusion related to the functions of JSE/types of shares/impact of fixed deposit/ Success and/or failure of the public company with factors like, management and taxation. Any (1 x 2) (2) QUESTION 5: BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM | TOTAL Introduction 2 Functions of JSE 8 Types of shares 16 Fixed deposits as a form of investment. 10 M - - ax Success and/or failure of the public 32 company based on the following factors. o Management o Taxation 12 Conclusion 2 INSIGHT Layout 2 Analysis/Interpretation 2 8 Synthesis 2 Originality/Examples 2 TOTAL MARKS 40 LASO — For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. Copyright Reserved Please Turn Over Text truncated here. 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