# Business Studies Grade 11 P2 2025 QP & Memo

> Grade 11 Business Studies Paper 2 question paper and memo from the Eastern Cape June Exam 2025, 31 pages. Read online or get the free PDF download.

- Page: https://www.hlayiso.com/library/lp-business-studies-grade-11-june-2025-p2-and-memo/8510a558-f4ef-4a6e-a8a4-ea5e38115ad4
- Updated: 2026-09-27
- Subject: Business Studies
- Grade: Grade 11
- Document type: Question paper and memo
- Year: 2025
- Exam period: Eastern Cape June Exam
- Paper: 2
- Curriculum: CAPS
- Pages: 31

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## About this document

Business Studies · Grade 11 · Eastern Cape June Exam · 2025. Question paper and memorandum, 31 pages. Read online or download the PDF.

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### Page 1

Testpapers.co.za

REPUBLIC OF SOUTH AFRICA

DEPARTMENT OF

EDUCATION

NATIONAL
SENIOR CERTIFICATE

MARKS: 150
TIME: 2 hours

This question paper consists of 10 pages

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Testpopers.co.za LDoE/Mid year/June 2025
GRADE 11

INSTRUCTIONS AND INFORMATION

Read the following instructions carefully before answering the questions

af,

This question paper consists of THREE sections and covers TWO main
topics.
Section A: compulsory

Section B: consists of THREE questions. Answer ONLY TWO questions.
Section C: consists of TWO questions. Answer ONLY ONE question.

2. Read the instructions, for.each question carefully and take note of what it
requires. Note | 'O questions in SECTION B and the first
question in S ON larked.

3. Number the answers C rding to the numbering system used in this
question paper. NO || be awarded for answers that are numbered
incorrectly. vi

4. Except where instruct 5 are given, answers must be given in full sentences.

5. Use the mark allocation and the nature of each question to determine the
length and depth of an answer.

6. Use the table below as a guide for marks and time allocation when answering
each question

SECTION QUESTION | MARKS TIME GUIDE
A: objective-type questions 1 30 20 minutes
COMPULSORY
B: THREE direct/indirect-type 2 40 35 minutes
questions. CHOICE: Answer any .
Two 3 40 35 minutes
4 40 35 minutes
C: TWO essay-type questions 5 40 30 minutes
CHOICE: Answer any one
6 40 30 minutes
TOTAL 150 120 minutes

8.

9.

Start the answer to EACH question on a NEW page, for example QUESTION
1 —new page, QUESTION 2 — new page.

You may use a non-programmable calculator.

Write neatly and legibly.

10.Use a BLUE / BLACK pen.

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GRADE 11

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
(1.1.1-1.1.5) in the ANSWER BOOK. for example1.1.6 E.

1.1.1 The problem-solving technique is applied when businesses want to change
their structures
A. Brainstorming
B. Empty chair
C. Nominal Group
D. Force-field analysis

1.1.2 The employees.
consumer's requ
Professionalism
Customers Care
Ethics {
. Professionalism an

apply the principle of .... By responding to

1.1.3. Recent business procedures and policies can be regarded as an example of
. Cause of change.
A. Internal
B. External
C. Market
D. Macro

1.1.4 The shareholders of Maxwell construction Ltd offered securities for the first time
=. 7 .
to pt his is an ple of a .... offering.

essential services such as water and electricity at

~~. Public
D. Personal liability

(5x2) (10)

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GRADE 11

1.2 Complete the following statements by using the word(s) in the list below. Write
only. the word(s) next to the question number (1.2.1-1.2.5) in your ANSWER
BOOK

Personal liability, Ethics, Patent, Retrenchments, Private, Rent, Trademark, Royalties,
Conduct, Affirmative action

1.2.1 A... company requires directors to be liable for the debts of the business.

1.2.2 The on-going fee paid to the owner of an asset by using its name
and trademark is known as.....

1.2.3 Businesses can | inventions and include a sample of

: when they employed suitable people to
fill a vacant position.

“4
1.2.5 Kasango limited is providi ‘opportunities for previously disadvantaged people.
This change management is known as ...

(5%2) (10)

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GRADE 11

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 (1.3.1-1.3.5) in the ANSWER

BOOK,.e.g.1.3.6 K

|... COLUMNA

COLUMN B

1.3.1 Crisis

1.3.2. Prospectus
1.3.3. Problem Solving
1.3.4 Notice of incorporation
1.3.5 Principles of ethics

A.

B.

.A document containing the information

ants,

J.

. An unforeseen event that can cause

. A document containing information

. A state of emotional or mental strains

Respecting the image of the business.
Includes the number of directors of the
company.

major changes in the organisation.

about the company and the shares to
people interest in buying shares.
resulting from diverse circumstances.

The process of finding a solution to a
problem.

initiating CSI projects for communities.

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(5x2) (10)
[30]

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GRADE 11

SECTION B

Answer any TWO questions in 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, for example
QUESTION 2 on a new page, QUESTION 3 on a NEW page.

QUESTION 2: BUSINESS VENTURES

2.1 Name any FOUR aspects that must be included in the prospectus. (4)

2.2 Identify avenues fo f a business illustrated by the following statements:

2.2.1. Mr Monama ;
his financial ancial year.

2.2.2. Setswiki Mal da contract with Malesela properties for the
use of their pi (e ecified period and will pay every month.

2.2.3. Selaelo was given the right to offer the same products as Shokgola
Trading for a percentage of his gross monthly sales and a royalty fee.

(6)

2.3 Read the scenario below and answer the following questions:

The Devine Empire Pty (Ltd)
The Devine one Pty (Ltd) is planning 2 its company status to The Devine!
them > the public to purchase shares.

2.3.1 identify TWC at are applicable to Devine
V iting from the scenario above (6)

2.3.2 Discuss the ne = Apire Ltd as a
form of o' ; (4)
2.4 Outline the ral it (6)
2.5 Describe the disadvantages of franchising (6)
2.6 Advise businesses on the reasons why entrepreneurs may decide to purchase
an existing business. (8)
[40]

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GRADE 11

QUESTION 3: BUSINESS ROLES

3.1 List THREE causes of stress in the workplace. (3)

3.2 Identify the theories of ethics applied by Power Designers Ltd in EACH statement
below.:
3.2.1 Employees are treated with respect and dignity as one of the human rights
in the workplace.

3.2.2 Good actions are viewed as ethical since they have a positive effect on
their employees.

3.2.3 The busin J al principles are in line with society in which
it operat he (6)

Lacey Manufacturers has seen a decline in sales over the past few months because
of poor-quality products. They have asked a team of experts to recommend ways to
enhance their product quality.

3.3.1 Identify the problem-solving technique applied by MM. Motivate
your answer by quoting from the scenario above. (3)

3.3.2 Advise the management of LM on other ways in which they can
apply the problem-solving technique identified above in the

workplace. (4)

3.4 Explain the benefits of creative thinking in the workplace (6)

3.5 Differentiate between good decisions and bad decisions. (4)

3.6 Discuss the benefit of working with others to solve problems (6)
3.7 Recommend ways in which professional, responsible, ethical and

effective business practice should be conducted (8)

[40]

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GRADE 11

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS VENTURES
4.1 Mention FOUR aspects that must be included in the Memorandum of
Incorporation. (4)
4.2 Outline the challenges of establishing a company over other forms of
ownership. (6)

4.3 Explain the characteristics of partnership as a form of ownership (4)
, |

4.4 Discuss the THREE advar

Masai Manufacturers specialises in producing sneakers. |
breakdown in machinery, leading to a decline in pro
workplace.

4.6.1 Identify examples of a crisis from the scenari
answer by quoting from the scenario.

4.6.2 Outline ways in which a business could deal with crisis
in the workplace (6)

4.7 Discuss the following major changes that businesses and people deal with:

4.7.1 Retrenchment (4)
4.7.2 Unemployment (4)
[40]

TOTAL SECTION B: 80

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GRADE 11

SECTION C

Answer any ONE question in this section.
NOTE: Clearly indicate the QUESTION NUMBER of each question chosen.
The answer to EACH question must start on a NEW page, for example

QUESTION 5 on a NEW page or QUESTION 6 on a NEW page.

QUESTION 5: BUSINESS VENTURE (FORMS OF OWNERSHIP)

Many entrepreneurs choose to establish a public company for expansion and growth,
while others opt for a private company to avoid the need to register a prospectus. It's
essential for entrepreneurs to follow the correct procedures when registering a
company.

d

Write an essay on the forms’ 6f ‘ownership in which you include the following aspects:

Elaborate on the meaning of a prospectus.
Explain the differences between the private company and public company.
Discuss the procedure for the formation of companies.

Advise entrepreneurs on the legal requirements of the name of the company.
[40]

QUESTION 6: BUSINESS ROLES (STRESS AND CHANGE MANAGEMENT)

Most businesses are embracing the fourth industrial revolution, actively reshaping their
processes with innovative technology. This rapid change has caused stress among
some employees in the workplace, prompting the company to develop Strategies to
manage this crisis effectively. E te

")

Write an essay on the stress and change management in which you include the
following aspects:

®

e Elaborate on the meaning of stress and crisis
e Explain strategies to businesses on how to deal rep the WeS.cor issues in the
workplace: otha {
o Globalisation
o Affirmative Action
Discuss the importance of stress management in the workplace
Recommend ways in which employees can manage stress in the workplace

née

[40]
TOTAL SECTION C: [40]
GRAND TOTAL: [150]

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REPUBLIC OF SOUTH AFRICA

DEPARTMENT OF

EDUCATION

NATIONAL
SENIOR CERTIFICATE

MARK: 150

This marking guideline consists of 22 pages

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GRADE 11: MARKING GUIDELINES

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 .

sentences for SECTIONS B and C.
re of the question.
jas been provided but this is by no means
d be given to an answer that is correct but:

2. Candidates’ respon
However, this would
3. Acomprehensive ma
exhaustive. Due cole

+ Uses a different express

* Comes from another cre
* Original

+ A different approach is used

ich appears in the marking guideline

NOTE: There is only ONE correct answer in SECTION A.

4. Take note of other relevant answers provided by candidates and allocate marks
accordingly, (In cases where the answer is unclear or indicates some
understanding, part-marks should be awarded, for example, one mark instead of
the maximum of two marks.)

5. The word 'Sub-max' is used to facilitate the allocation of marks within a question
or sub-question.

6. The purpose of circling marks (quigies by. ‘max’ in.the breakd d
the Tight-hand side is to ensur cons | accuracy

wn of marks) on

7. Subtotals to questions must be in n
subtotals as indicated by the allocation o al hi ided by 'max' in
the marking guidelines. Only the total C lestion should appear in the left-
hand margin next to the appropriate q I 3

8. In an indirect question, the theory as we
related to the question. d

9. Correct numbering of answers to ques wnorephfal ecommended in
SECTIONS A and B. However, if the numbering is incorrect, follow the sequence
of the candidate's responses. Candidates will be penalized if the latter is not
clear.

10. No additional credit must be given for repetition of facts. Indicate with an 'R’.

11. The differentiation between 'evaluate' and ‘critically evaluate’ can be explained

as follows:

11.1 When 'evaluate' is used, candidates are expected to respond in either a

positive/negative manner or take a neutral (positive and negative) stance, e.g.

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GRADE 11: MARKING GUIDELINES

Positive: 'COIDA eliminates time and costs spentV on lengthy civil court
proceedings.'\

11.2 When ‘critically evaluate’ is used, candidates are expected to respond in either
a positive/negative manner or take a neutral (positive and negative) stance. In
this instance candidate is also expected to support their responses with
more depth, e.g. 'COIDA eliminates time and costs spentv on lengthy civil court
proceedingsv, because the employer will not be liable for compensation to the
employee for injuries sustained during working hours as long as it can be
proved that the business was not negligent.'V

NOTE:

1. The above could apply to 'analyze' as well.

2: Note the placing of the tick (\) inthe allocation of marks.

12. The allocation o
cognitive verb used,
each question.

rmed by the nature of the question,
in the marking guideline and the context of

Cognitive verbs, sue!

12.1 Advise, name, state, e , 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.

12.2 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.

13. Mark only the FIRST answer where candidates offer more than one answer for
SECTION B and C questions that require one answer.

SECTION B

14. wm f

14.1 If for example, FIVE facts are i 1 ; idate's FIRST FIVE
responses and ignore the res ate b ing a line

across the unmarked portion

NOTE:
1. this applies only to questions where th
2. The above also applies to responses

14.2 If two facts are written in one senlenges
Point 14.1 above still applies.

14.3 If candidates are required to provide their own examples/views, brainstorm this
at the marking Centre to finalize alternative answers.

14.4 Use of the cognitive verbs and allocation of marks:

14.4.1 If the numbers of facts are specified, questions that require candidates to
describe/discuss/explain' may be marked as follows:
+ Fact 2 marks (or as indicated in the marking guidelines)

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GRADE 11: MARKING GUIDELINES

+ 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.

14.4.2 lf the number of facts required is not specified, the allocation of marks must
be informed by the nature of the question and the maximum mark allocated
in the marking guideline.

14.5 ONE mark may be awarded for answers that are easy to recall, requires

one word answers or is quoted directly from a scenario/case study.
This applies to SECTIONS B and C in particular (where applicable).
15. SECTION C
15.1 The breakdown of the mark allocation for the essays is as follows:

Introduction Maximum: 32 Maximum:
Content 32

Conclusion

Insight 8
TOTAL 40

15.2 Insight consists of tP gc
Layout/Structure Is there jabody and a conclusion? 2 Analysis

an introduction

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? 2 Marks to be allocated
using this guide: All headings
addressed: 1 (One
‘A’) Interpretation (16 to 32
marks): 1 (One ‘A’)
Synthesis

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GRADE 11: MARKING GUIDELINES

Award the maximum of
TWO (2) marks for
synthesis. Option 2:
Where a candidate
answers less than 50% of
the question with only OR
some relevant facts; one '-
S' appears in the left
margin. Award a maximum
of ONE (1) mark for
synthesis. Option 3:
Where a candidate —
answers less than 50%
the question with no
relevant facts; two '-S'
appear in the left margin. —
Award a ZERO mark for
synthesis. Originality Is
there evidence of
examples based on recent
information

NOTE:
1. No marks will be awarded for contents repeated from the introduction and
conclusion.

2. The candidate forfeits marks for layout if 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.

15.3 Indicate insight in the left-hand margin with a symbol e.g. ('L, A, -S and/or O').

15.4 The breakdown of marks is indicated at the end of the suggested answer/
marking guideline to each question.

15.3 Indicate insight in the left-hand

15.4 The breakdo *

gin with a symbol e.g. ('L, A, -S and/or 0’).
d at the end of the suggested answer/

15.5 Mark all rele’
attained. Write SUE
continue reading 1

15.6 Atthe end of ea e allocation of marks for facts and marks

for insight as follow — Analysis, S — Synthesis,
O- Originality) as in ihe table below.

|AX/MAX mark in a subsection has been
maximum marks have been obtained, but

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GRADE 11: MARKING GUIDELINES

CONTENT MARKS
Facts 32 (max.)
L 2
A 2
Ss 2
fe} 2
TOTAL 40

15.7 When awarding marks for facts, take note of the submaximal indicated,
especially if candidates do not make use of the same subheadings.

Remember, heai subheadings are encouraged and contribute to
insight (struct 01 encing) and indicate clarity of thought.
(See MARK BI IWN 2 nd of each question.)

15.8 If the candidate i the question INCORRECTLY, then he/she

may still obtain mai
15.9 Ifa different app
assessed accordint
marking guidelin

didates, ensure that the answers are
> aaa as indicated in the

15.10

15.10.1 Award TWO marks for complete sentences. Award ONE mark for phrases,
incomplete sentences and vague answers.

15.10.2 With effect from November 2015, the TWO marks will not necessarily
appear 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 V, 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.

15.11. With effect from November 2017, the maximum of TWO (2) marks for facts
shown as headings in the marking guidelines, will not necessarily apply to
each question. This would also depend on the nature of the question.

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GRADE 11: MARKING GUIDELINES

SECTIONA
QUESTION 1

1 fl 1.1.1. DW
1.1.2. AVV
1.1.3. A VV
1.1.4. AV
1.1.5. Ava.

(5 x 2) (10)
42: 1.2.1. Per

1.2.5. Affirmative Action
(5 x 2) (10)
1.3: 1.3.1. Cv
1.3.2. DW
1.3.3. F WwW
1.3.4. B vv
1.3.5. AV
(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

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GRADE 11: MARKING GUIDELINES

SECTION B
QUESTION 2: BUSINESS VENTURES.
2.1. FOUR aspects that must be included in a prospectus.

¢ Company overview, including the vision, mission and goals of a business
¢ Product or service portfolioV
e Market analysis and strategy

« Management team

e The risk and po}

y

¢ Available financial and share information
e¢ Company's assets

e Financial position
e Profits and losses‘

e Any other relevant answer related to the forms of ownership.

NOTE: Mark the first FOUR (4) only.
Max (4)

2.2 avenues for acquiring a business.

Max (6)

the scenario.

(Ltd) is planning to change its company status to The

Devine Empires Ltd.V
AND
Public Company VV

Motivation
¢ This change will enable them to invite the public to purchase shares. V
Max (6)

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GRADE 11: MARKING GUIDELINES

2.3.2 Advantages of public company

¢ The business has its ownv legal identityV

e Easy to raise funds\ for growth through the sale of shares. V

¢ Shareholder is only liablev for the amount which is invested\/Shareholders
have limited liability.

¢~ The public has accessyv to the information and this could motivate them to buy
shares from a company. V

¢ Shareholders can sell/transfery their shares freely. V

¢ Can appoint Va aikpppledgeablahogrd of directors. V

e Additional sha ‘can b sed by issuing more shares or debentures. V

e Strict regulatory é ect shareholders. V

e Any other answer | characteristics of a public company.

‘ Max (4)
2.4 Contractual implic:

Some details that should b an outsourcing agreement are:

¢ The responsibilities and rights of both parties. VV

¢ The length or duration of the contract. VV

¢ Aconfidentiality clause to protect privileged information. VV

e Payment terms and conditions. VV

¢ Penalties for not delivering the agreed servicesVV

e Anexact description of the service/product. VV

e Any other relevant answer related to the contractual implications of outsourcing.
Max (6)

an expensive. initial layout. V
in the agreement and terms’ of how the business

rs feel limitedV as to how much they can expand their

may risk the reputation of the entire franchise. ¥
Ala | id in royalties, Vv and often the franchisors do not
deliver on their promises.

¢ It is often difficult to sell/terminatev a franchise contract. V

e The start-up cost many be a challenge’ without assistance from the franchisor.

V
e Any other answer relevant to the disadvantage of franchising
Max (6)

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GRADE 11: MARKING GUIDELINES

2.6 Reason why entrepreneurs may decide to purchase an existing business

Easier to raise finance if the business has a good history/image. VV
Immediate cash flow as there are already established customers. \V

Market research has already been done and there is an established customer
base. VV

Distribution/Supply links/Staff/Network is/are already established. VV

A market for business products or services has already been established. VV
Existing employees and managers may have experience they can share. VV
Many business problems have already been solved. VV

Any other answer relevant to the reasons why entrepreneurs may decide to
purchase an existin, Max (8)
[40]

QUESTION 3: BUSINESS F

3.1 THREE causes of sti

Heavy workload/Ur :

Long working hours

Time pressures and deadlines

Inadequately trained subordinates

The necessity of attending meetings

Work demands intruding on family and personal lifev

nology
Ness with different beliefs and values

olleaguesV
yy work

Any other relevant answer related to causes of stress in the workplace.
NOTE: Mark the first THREE (3) only. Max (3)

3.2 Identify the theories of ethics

3.2.1 The right approachvV
3.2.2 The common good approachvV
3.2.3 Consequential theoryvV
Max (6)

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GRADE 11: MARKING GUIDELINES

3.3 Identify problem-solving technique from the scenario
3.3.1 Delphi technique. VV
Motivation:
e MM requested a group of experts to suggest solutions on how to improve the
quality of their products. V
e Note: Do not award marks for motivation, if identification is incorrect.
Identification (2)
Motivation (1)
Max (3)
3.3.2 Application of Delphi technique
¢ Businesses must invite a pane! of experts to research the complaints from
customers. VV 1
e Experts do not ha ye to bein one place and will be contacted individually. VV
e Design a questionnaii isisting of questions on how to improve the quality of
their product/service | istribute it to the panel members/experts. VV
e Request the panel Vidually respond to the questionnaire/suggest
improvements to the products and return it to business. VV
e Summarise the responses from the experts in a feedback report. VV
e Send the feedback report and a second set of questions/questionnaire based on
the feedback report to the panel members. VV
e Request panel members to provide further input/ideas on how to improve the
quality of their products/services after they have studied the
results/documentation. VV
e Distribute a third questionnaire based on previous feedback from the second
round. VV
e Prepare a final summary/feedback report with all the methods to improve the
quality of products. VV
¢ Choose the best solution/proposal after reaching consensus. VV
e Any other relevant answer related to the application of Delphi technique
Max (4)

3.4 Benefits/ Advantages of creative thinking in the workplace

¢ Complex business problemsy may be solved. ¥

¢ Creativity may lead to new inventionsV which improves the general standard of
living. ¥

¢ Better/Unique/Unconventional ideas/solutions\ are generated. V

¢ May give businesses a competitive advantage\ if unusual/unique
solutions/ideas/strategies are implemented. V

* Managers/employees have more confidence\ as they can live up to their full
potential. ¥

¢ Managers will be better leaders\ as they will be able to handle/manage change(s)
positively and creatively. V

¢ Managers/Employees can develop a completely new outlook, ¥ which may be
applied to any task(s) they may do. V

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GRADE 11: MARKING GUIDELINES

¢ Leads to more positive attitudes ¥ as managers/employees feel that they have
contributed towards problem solving/Improves motivation amongst staff membersV

e Managers/Employees have a feeling of great accomplishment, V and they will not
resist/ obstruct once they solved a problem/contributed towards the success of the
business. V

¢ ‘Management/Employees can keep upv with fast changing technology. V

¢ Stimulates brain function of employees/managers, \ as they are continuously
pushed out of their comfort zone/improving the total well-being of employees. V¥

e Any other relevant answer related to the benefits/ advantages of creative thinking

— Max (6)
3.5 Difference between jood decisi on and bad decisions.

GOOD DECISIO
¢ Maintaining high level
integrityy v

__ BAD DECISIONS
Not considering valuesv ¥

nsufficient or erroneous

business practicesv v formationY ¥
e Not starting a business e Violating customer's privacyy ¥
venture at the expense of
others Vv
e Payment of fair wagesv v e Damaging the environmenty
e Not discriminating against e Price fixingy
employeesv ¥
e Regular payment of taxv v e Tax evasionY¥
e Reducing environmental e Cloning animals or peopley ¥
pollutionY ¥
e Importing goods that have e BriberyYY

been produced by factories
with fair labour ges ficesv¥
e Any relevai d
to good de

va nt answer related to the
between bad decisions.

P Sub max (4)
NOTE: 1. The answer bular format.
2. The dis’ ave to link but the must
be clea 4
3. Award a nama of UR (4) marks if distinctions
not decisions or good decisions only.
Max (8)

3.6 Benefits/ advantages of working with others to solve problems

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GRADE 11: MARKING GUIDELINES

The problem can be solved\ faster and easier. V
Workload decreases \ if everyone does their share. V
More ideas can be generated \ increasing the chances of finding the best
possible solutions. ¥

e Exposure to other people’s thinking patterns\ and to the way other people
approach problems. V
Enables team members to learn from others and accept their points of view.
Greater resultsV can be achieved. V
Team members have access to a broader base of knowledge, skills and

expertise. V
The problem is viewed from different perspectives. V
Problems are analy greater¢ etaily which lead to better understanding of

the problem. Vv
e Promotes creati\
as possible to solve
e Any other relevant:
solve problems

a generationy by thinking of as many ideas

‘to the advantages of working with others to
Max (6)

3.7 Ways in which profe SI
practice should be conducted
¢ Businesses should treat all employees equally. VV
e Plan properly and put preventative measures in place. VV
e Pay fair wages/salaries which are in line with the minimum requirements of the
BCEA. vv
e Remunerate employees for working overtime/during public holidays. VV
e Engage in environmental awareness programmes. /Refrain from polluting the
environment, e.g. by legally disposing of toxic waste. VV
e Refrain from starting a venture using other businesses’ ideas that are protected
by law. VV
Business decisions and act

sible, ethical and effective business

iS must be transparent to all stakeholders. VV
le /responsible for their decisions and

Intants/financial officers with good credentials.

ems. /Appraisals should be in place. VV

‘oring/evaluation. VV

e Any other relevant answer related to the ways in which professional,
responsible, ethical and effective business practice should be conducted

Max (8)
[40]

QUESTION 4: MISCELLANEOUS QUESTIONS

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GRADE 11: MARKING GUIDELINES

BUSINESS VENTURES
4.1 FOUR aspects that must be included in the Memorandum of Incorporation

4.2 Challenges of establis!

Incorporators V

Nature of the companyy
Securities of the company
Shareholders and meetings
Directors and officersV
Name of the companyY

Main objectives of the companyv

Number of shares each incorporator will purchasey
Amount of share capital registe 3

NOTE: Mark the first | only. Max (4)

a company over other forms of ownership.
Directors may not have SPhersonett interest in the business, and this could prevent
the business from gaining maximum growth and profits. vv

Directors who do not have a personal interest in the business may not attract
investors. VV

There may be conflict between the owners of the company and management in
control. Vv

The more shares there are the less profit per share. VV

A company is required to submit a full reporty to all stakeholders each financial
year. VV

The limited liability aspect of the company generates more paperwork in the
registration process. VV

The owners of the company have more liability. VV

When directors change there could be a lack of continuity in management. VV
Companies have more taxation requirements and other taxes are high. VV

They are required to disclose all financial information which could provide their
competitors with an unfair advantage. VV

Politics can get in the way and managers are appointed for the wrong reasons. VV
State owned companies often deliver non-profitable services that lead to
government losing money through the business. VV

A company can stop existing if deregistered by the Registrar of Companies. VV
A large amount of money of funds is spent on financial audits and accounting
fees due to government regulations. VV

Any other relevant answer related to the challenges of establishing a company
over other forms of ownership.

Max (6)

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4.3 Characteristics of partnership as a form of ownership

An agreement between two or more peoplev who combine labour, capital and
resources towards a common goal. V

Partners combine capital \ and may also borrow capital from financial
institutions. ¥

No legal requirementsy regarding the name of the business. ¥

Partners have unlimited liability and are jointly and severally liable for the debts
of the business. V

Profit is shared ¥ according to the partnership agreement. V

Partnership does not pay tax partners pay personal income tax. V)

Auditing of financial statements» optional. V

Partners shar V and they are all involved in decision making. V
No legal formalities: art, V only é written partnership agreement is required.
The partnership does income tax, V only the partners in their personal
capacities. V
Diversity, specialisat d different skillsV of the partners can be used. V
Partnership has no legal personality and therefore has no continuity. V
Partners share responsibilities ¥ and they are all involved in decision makingV
Any other relevant answer related to the characteristics of partnership

Max (4)

4.4 Advantages of leasing for the lessor

Leasing improves the cash flowy of the business. V
Leasing is regarded as an expense for the lessee and is therefore not regarded
as debt. V
The lessor receives a continual rental income. V
The lessor can get quantity discount vby buying goods in bulk to supply various
lessees. V
The asset can be returned to the lessorv when it is no longer needed. V
Makes budgeting and planning easier \ and it provides better control over cash
flow. V
Retains ownership of the asset, V which can be sold to recover money at the end
of the lease. V
There is no large financial outlay’ as the cost is spread over several
months/years. V
The lessor normally covers the maintenance/replacesV any damaged parts or
equipment. V
There is tax advantages Vas rental payment are calculated as operating costs and
therefor tax deductible.
It is easy to lease a better/newer version of the producty without the capital outlay.
v
Any other relevant answer related to leasing for the lessor

Max (6)

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GRADE 11: MARKING GUIDELINES

BUSINESS ROLES
4.5 Internal Causes of Change

¢ New business objectives or goals

High employee turnover where many employees must join the businessV
New policies and procedures implemented in the business

New managementy

Restructuringv

Retrenchmenty

New equipmenty

e Accept any other relevant answer related to internal causes of change.
Note: Mark the first T

Max (3)

4.6.1 Breakdown in Ma vv
Motivation

e MM recently experien
productivity and sales i

Note: Do not award marks fe

machinery, leading to a decline in

ion, if identification is incorrect.
Identification (2)
Motivation (1)
Max (3)

4.6.2 Ways businesses can deal with a Crisis in the Workplace

e Businesses should respond appropriately and quickly to lessen the effects of the
crisis situation. VV

e Intervene swiftly and with urgency, but without panicking or overreacting. VV

e Identify the real nature of the crisis by making a thorough assessment of the situation

and seeking expert opinions. VV

e Assess/If the crisis happens, face up to it and quickly find out what has happened

without over-reacting. VV

e Deal with crisis directly and timeously without trying to avoid/minimise the

seriousness of the situation VV

e Plan/Identify and prioritise the:

e Inform/Provide acc

e Support/Guide othe:

e Attempt to contain the situat

e Communicate with al! stakeh

happened, what the impact is

e Appoint a spokesperson fi t

and provide information. VV

e Regain contouManteaeaal ntil the crisis is over. VV

e Obtain expert advice if the crisis falls exits the business! scope of expertise. VV

¢ Call for help and seek assistance/advice and support from the appropriate. Vv

agencies and professional. VV

Ag training and support.
MagevV
operly informed about what has

VV

yho will deal with all questions

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GRADE 11: MARKING GUIDELINES

e Arrange debriefing sessions for all those directly involved in the crisis or who have

been traumatised by the event. VV

Evaluate’ how effective the emergency plan was throughout the crisis. VV

e Amend the emergency plan after evaluating what worked and what did not work. VV
Max (6)

4. Major changes that businesses and people deal with:

4.7.1 Retrenchment

¢_Retrenchment is when a business cuts the number of workersv to reduce their

wages and salary bill. ¥

e A process whereby the employer reviews its business needsv to increase profits/limit

losses, which leads to redi ing:itsempl 0! yees. \

e Economic change y people being retrenched vfrom their jobsv.

e Any other relevant trenchment. Max (4)

4.7.2 Unemployment

e It is when employees lo ause they are fired, or they quit their jobs

e Change can lead to une “due to retrenchment. V

e A business may close down/sold/mergev resulting to unemployment. v

e Copying with unemployment is traumaticV and can lead to depression. V

e Any other relevant answer related to unemployment. Max (4)

[40]

TOTAL SECTION B: 80

SECTION C

QUESTION 5: BUSINESS VENTURE (FORMS OF OWNERSHIP)

5.1 Introduction

e Form of ownership refers to the legal position of the business and the way it is owned.
v

e Anentrepreneur must decide which of the forms of ownership will best suit their type
of business. v

e Compared to sole proprietorships and partnerships, starting a company is a
complicated process. “

e To set up a company is an expensive an [ e rmany legal
requirements to follow. ¥ ,

e Any other relevant answer related to the int fe} ership and
formation of companies. : Y

5.2 Meaning of a prospectus

¢ A prospectus is a written invitation v to convine

e A prospectus gives information “ about the b

e It is a formal legal document v giving details about the investment offerings.

e A prospectus must be issued by a company Y within three months after the date of
registration. ¥

e Any other relevant answer related to the meaning of a prospectus. Max (8)

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5. 3 Differences between the private company and public company

May not bffer shares V to the public.v¥

Shares ¥ are not freely transferable.v
Minimum of one v director.
Name must end Y with Proprietary
Limited/(Pty) Ltd. v
Annual financial statements” need od pot 5
be audited and publi
Does not need to publish L Must.reg * oros
Y as it cannot trade its as with the Companies and Intellectual!
v Property Commission/CIPC. “
The company is not req Must raise a minimum subscription ¥
the minimum subscriptio prior to commencement of the
minimum shares. ¥ company. ¥
Any other relevant answer related to the | Any other relevant answer related to the
differences between private and public | differences between private and public
companies. companies.

Sub-max (6) Sub-max (6)

Max (12)
NOTE:1. Differences do not have to link but the differences must be clear.
2. If the differences are not clear mark either private or public company
and award maximum EIGHT (8) marks.

5.4 Procedure for the formation of companies

e Determine the people v establishing the company. ¥

e Reserve a company name VY with the Registrar of Companies. ¥

e Prepare a memorandum of incorporation; Y open a bank account and register for
taxation. ¥

e File a notice of incorporation Y and obtain a unique registration number “

e Draw up a prospectus Y for potential investors. ¥

e Any other relevant answer related to the procedure for formation of companies.

Max (10)

5.5 Legal requirements of the name of the company

e Reserving the name for a company is the first step to registering, but it is not
compulsory. vv

e lfaname is reserved at CIPC, it cannot be used by another company. vv

e Names can be reserved by a business for six months. Vv

e The name of a company is subject to approval by CIPC. Vv

e The name of a company must be original and not misleading. vv

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GRADE 11: MARKING GUIDELINES

e The company cannot be using a name that is already in use by another company. Vv”

e Acompany’s name must appear on all company documents. vv

e Any other relevant answer related to the legal requirements of a company.

Max (12)

5.6 Conclusion

e ‘There are many legal formalities with the formation of companies which will
contribute to the limited liability of the shareholders. vv

«Entrepreneurs must ensure that they choose the right form of ownership to be
successful. vv

e Any other relevant apaner ae the conclusion of forms of ownership and
formation of compani Any (1 * 2) (2)

BREAKDOWN OF

DETAILS MAXIMUM TOTAL
Introduction 2

Meaning of a prospectus 6

Differences between private and_ public 12

company 32
Procedure for the formation of companies 10

Legal requirements of the name of the company 12

Conclusion 2

Insight

Layout 2 8
Analysis/Interpretation ole 2

Synthesis

Originality

*LASO — For each component:

Allocate 1 mark if only some of the require
where requirements are not met at all.

6.1 Introduction

¢ Stress is experienced by everyone in different situations.”

¢ Change is difficult for most individuals, organisations and managementY

e Change causes stress levels to increaseY

e Acrisis causes a huge and sudden increase in stress levels¥

e Any other relevant answer related to stress and crisisY¥ (2x1) (2)

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6.2 Meaning

6.2.1 Stress

e Stress is defined as a state of emotionaly or mental strain. v

e The strain can affect memory/concentrationY and lowers the morale of employees. ¥

e Stress refers to the harmful physical/emotional responses that can happen when
there is conflict between job demands V on the employee and the amount of control
an employee has over meeting these demands. ¥

e It is the wear and tear our bodies experienceY as we adjust to our changing
environmentsY

e Any other relevant answer related.to stress Sub-max 04

6.2.2 Crisis

e Crises is an unfore

cause major changes in an organisation. v
y disastrous events. ¥

anger.

stakeholders/ its property, v finances / its

ee
=
Go
-
=o
23
Oo
oS
>
5 F
2 0
2a
ac
2 ¢g
Og
=a

An event that can h:

reputation. v :

Any situation that th it home or work. ~

Unforeseen event that can cause major changesv in the organisation.

Any other relevant answer related to crisis Sub-max 04
Max (08)

6.3 Strategies that to deal with the following issues in the workplace:

6.3.1 Globalisation

e Adapt your approach to newY operational complexities. ~

e Businesses should be aware of changesv in the related industry. v

e Keep abreast of new technology/processes and developments” that could give
ompetitive edge. v

2 arketsY for their products. v
nufactures/materials/suppliers etc. v

connecting with governments.

nal standards” of quality. v

nalv | trade laws. ~

's information technology (IT) network” to enable online

purchasing. ¥
e Be creative in making products” desirable and unique. ¥
e Any other relevant answer related to strategies to deal with globalisation.
Sub-max 06

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6.3.2 Affirmative Action

e Inform employees on how affirmative action v will be implemented in the business. Vv

e Businesses must have acceptable affirmative actionY programmes. ¥

e Businesses must indicate in all their job adverts that they are affirmative action
employers. ¥

e They should open themselves to new ideas and opportunitiesY instead of sticking
to the past. v

e Employees need to focus on the job v rather than the differences of the people in
the team and how they were appointed. v Sub-max 06

ail Max (12)
wo, — {

6.4 The importance of st nanagement in the workplace

¢ If stress is not managed effectively, it can get out of control v and cause staff health
issues. ¥ oy

e Stressed employees. sae likely to miss work, v both to cope and due to
health-related problems. Vv” :

e Managing stress will curb absenteeismv to maintain productivity at workplace. ¥

e Workers who suffer from stress often display poor judgement in crisis or emergency
situations” and this can be avoided through managing stress. ¥

e Grievances or complaints that lead to staff turnover can be addressedv if stress is
well-managed. ¥

e Conflict and interpersonal problems can be avoidedv if stress is managed at the
workplace. ¥ Max (12)

6.5 Ways in which employees can manage stress in the workplace

e Develop self-awareness to recognise the signs of stress and its causes. Vv

e Create a balanced lifestyle and minimise extreme emotions. Vv

e Exercise regularly and keep fit. vv

¢ Follow a balanced diet. vv

e Get enough sleep and relaxation. vv

e Replace negative self-talk with positive thoughts. vv

e Apply good time-management skills. vv

e Set personal realistic goals and targets. vv

e Accept things one cannot change and focus on things one can control. vv

e Practise time management. vv Max (12)

6.6 Conclusion

e It is very important for a business to deal with stress, change and crisis to ensure
the success of the businessv v

e Any other relevant answer related to the conclusion of stress, crisis and change
management. (1x2) (2)

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GRADE 11: MARKING GUIDELINES
MAXIMUM TOTAL
2
8
dr globalisation and 12

affirmative action 32
The importance of stress management in the 12
workplace
Ways in which emplo nimanage stress in 10
the workplace
Conclusion 2
Insight
Layout > 2 8
Analysis/Interpretation 2
Synthesis 2
Originality 2

*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.

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