grade 12 september 2015 business studies

NATIONAL SENIOR CERTIFICATE

GRADE 12

SEPTEMBER 2015

BUSINESS STUDIES

MARKS: 300 TIME: 3 hours

This question paper consists of 12 pages.

*BUSTE*

2 BUSINESS STUDIES (EC/SEPTEMBER 2015)

Copyright reserved Please turn over

INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections and covers all main topics. SECTION A: COMPULSORY SECTION B: Consists of FIVE questions.

Answer any THREE questions of the five questions in this section.

SECTION C: Consists of FOUR questions. Answer any TWO of the four questions from this section.

2. Read the instructions for each question carefully and take particular note of

what is required.

3. Number the answers carefully according to the numbering system used in

this question paper.

4. Except where other instructions are given, answers must be written in FULL

SENTENCES.

5. Use the mark allocation and nature of each question to determine the

length and depth of an answer.

6. Use the table below as guide when answering each question. SECTION QUESTION MARKS TIME A Multiple-choice

questions. Matching items. Choose the correct word. COMPULSORY

1 40 30 minutes

B Answer any THREE of the FIVE questions.

2 60 30 minutes 3 60 30 minutes 4 60 30 minutes 5 60 30 minutes 6 60 30 minutes

C FOUR essay questions. Answer any TWO of the four questions in this section.

7 40 30 minutes 8 40 30 minutes 9 40 30 minutes

10 40 30 minutes TOTAL 300 180 minutes 7. Begin the answer to EACH question on a NEW page. 8. You may use a non-programmable calculator. 9. Write neatly and legibly.

(EC/SEPTEMBER 2015) BUSINESS STUDIES 3


SECTION A (COMPULSORY) QUESTION 1 1.1 FOUR possible options are provide as answers to the following questions.

Choose the correct answer and write only the letter (A–D) next to the question number (1.1.1–1.1.10) in the ANSWERBOOK, for example 1.1.11 A.

1.1.1 Which ONE of the following is an advantage of corporate social

responsibility? A Reduces the BBBEE ratings B Makes reporting in financial statements more difficult C Is not the main activity of the business D Attract investors 1.1.2 Identify the Act that is violated if an employee fails to take the

necessary precautions to ensure that the workplace is a safe and healthy environment.

A Basic Conditions of Employment Act B Employment Equity Act C Compensation for Occupational Injuries and Diseases Act D Skills Development Act 1.1.3 Which ONE of the following can be used to create an environment

that promotes creative thinking? A Experts give anonymous suggestions B Empty chair techniques C Encourage a spirit of play and experimentation D Discouraging employees from participating in group problem

solving sessions 1.1.4 Which of the following funds provides employees with tax benefits? A Unemployment Insurance Fund B Retirement annuity C National Lottery D Road Accident Fund 1.1.5 This form of ownership can trade its shares on the Johannesburg

Securities Exchange. A Partnership B Private company C Close corporation D Public company



1.1.6 … deal(s) with the evaluation of employees in the workplace with a view to an increase in their wages and salaries.

A Staff development programmes B Team-building exercises C Performance appraisal D Counselling 1.1.7 Mathomo Clothing Factory, which has a market value of R500 000,

was recently damaged by fire. The cost of repairs for damages to the building amounted to R100 000. Mathomo Clothing factory was insured for R300 000. The amount for repairs that will be paid out by the insurer will be …

A R300 000. B R60 000. C R100 000. D R500 000. 1.1.8 Disputes between an employer and an employee are resolved by

making suggestions towards a possible solution for both parties: A Mediation B Arbitration C Workplace forum D Common law action 1.1.9 The ability to influence others based on personal charm and

inspiration is known as … leadership. A autocratic B transformational C charismatic D democratic 1.1.10 Edward de Bono identified yellow as … style of thinking. A a creative B a detached C an optimistic D an objective (10 x 2) (20)



1.2 Choose a term from COLUMN B that matches a description in COLUMN A. Write only the letter (A – G) next to the question number (1.2.1–1.2.5) in the ANSWER BOOK, for example 1.2.6 H.

COLUMN A COLUMN B 1.2.1 set of rules that is seen as fair

behaviour A Outsourcing

1.2.2 compels employers to provide

employees with opportunities to acquire new skills

B Strike

1.2.3 obtain specialists from outside the

business enterprise to perform a particular task

C Code of ethics

1.2.4 organised stay-away from work by

workers whereby they are prepared to forfeit their income

D Delphi technique

1.2.5 a technique used to obtain ideas

without bringing people together E Picketing

F Professionalism G Skills Development Act (5 x 2) (10) 1.3 Choose the correct word(s) from those in brackets. Write only the word(s)

next to the question number (1.3.1–1.3.5) in the ANSWER BOOK. 1.3.1 (Leadership/Management) refers to a process of influencing

employees to become achievers in the performance of their duties. 1.3.2 An increase in the price of fuel is an example of a (market/macro)

environmental challenge for the business. 1.3.3 A (Balanced Scorecard/SWOT analysis) is an instrument used to

assess companies’ compliance with BBBEE. 1.3.4 (Staff development/Induction) programmes aim to provide existing

employees with basic knowledge and skills. 1.3.5 (Michael Porters’ Five Forces/The King Code) was introduced to

promote good corporate governance because of the prevalence of corruption and unethical business practices.

(5 x 2) (10) TOTAL SECTION A: 40



SECTION B Answer any THREE questions from this section. NOTE: Clearly indicate the QUESTION NUMBER of each chosen question. 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, et cetera.

QUESTION 2: BUSINESS ENVIRONMENT 2.1 Read the following extract and answer the questions that follow. APHISIPH STORES

Minah is the owner of Aphisiph Stores, situated in East London. It is a sport store selling sport kit and equipment to various sporting clubs and schools. Minah has a degree in Business Management from UNIFORT. The demand for sport kit has increased to such an extent that she can’t keep up with all the orders from KwaZulu-Natal. Minah decided to open up another branch in Durban. Minah applies for a loan from ABSA Bank. If her loan application is turned down, it will be the decision of the credit provider and not the credit regulator. She also faces the possibility of future interest rate increases. Minah has employed Candy, a new cashier with no experience. Candy treats customers unprofessionally. The Buffalo City Municipality has increased their rates, taxes and Bayethe Sports Pty (Ltd) clothing manufacturer (the supplier) demands higher prices because of higher electricity prices. This had a negative impact on the profit level of Aphisiph Stores.

2.1.1 Identify the business sector in which Bayethe Sports (Pty) Ltd

Clothing Manufacturer operates. (2) 2.1.2 Differentiate between the credit provider and the National Credit

Regulator. (4) 2.1.3 Identify THREE challenges faced by Aphisiph Stores, and state the

business environment in which each challenge occur. (9) 2.1.4 The Skills Development Act, 1998 (Act 97 of 1998) makes provision

for Candy’s skills to be improved. Explain the challenges that Minah may experience when implementing this Act. (6)

2.1.5 Explain Minah’s rights regarding a possible rejected credit application. (1) 2.1.6 The National Credit Act, 2005 (Act 34 of 2005) protects both the credit

provider and the consumer. Do you agree? Motivate your answer. (8)



2.2 Identify the type of strategy in each of the following scenarios: 2.2.1 The marketing team of Aphisiph Stores is looking at the possibility of

exporting some products to Mozambique. 2.2.2 The business adds new products that are related to their existing

products and which will appeal to new customers. 2.2.3 Aphisiph Stores struggles to get fashionable swimming attire and

decides to purchase Bayethe Sports (Pty) Ltd Clothing Manufacturer. 2.2.4 Aphisiph Stores sales manager decides to sell out the muscle

boosters department because of poor performance. 2.2.5 Aphisiph Stores decreases the prices of soccer balls drastically to

influence customers to buy larger quantities. (5 x 2) (10) 2.3 Evaluate the impact of the Consumer Protection Act, 2008 (Act 68 of 2008) on

Aphisiph Stores. (12) 2.4 Discuss any FOUR advantages of the Employment Equity Act, 1998 (Act 55

of 1998) for Aphisiph Stores. (8) [60]



QUESTION 3: BUSINESS VENTURES 3.1 On his birthday Nceba receives an amount of R5 000,00. He decided to

invest this money for three years, at 10% interest per year, compounded annually, with NEDBANK.

3.1.1 Calculate the amount Nceba will receive after three years. (Show all

your workings). (6) 3.1.2 Show the amount of interest that Nceba will earn. (4) 3.1.3 As a well experienced financial adviser, suggest TWO other types of

investment that Nceba could have used. (4) 3.2 Read the scenario below and answer the questions that follow. “Jooste van Oosthuizen is the manager at Border Rugby Union (Pty) Ltd. He

does not consult his subordinates and employees, but expects them to carry out instructions correctly. He makes his own decisions, and he believes in the top down approach. The decisions he makes are influenced by the rules and regulations of the business.”

3.2.1 Identify the leadership style described above. (2) 3.2.2 Justify why leaders should use different leadership styles when

addressing different challenges. (4) 3.2.3 Identify any THREE situations where the leadership style in

QUESTION 3.2.2 can be applied. (6) 3.3 Name FIVE forces that Michael Porter used to analyse the market

environment. (10) 3.4 Compare the success or failure of a personal-liability company and a

partnership in terms of: 3.3.1 Capacity (4) 3.3.2 Legislation (4) 3.3.3 Management (4) 3.5 List FOUR types of non-verbal presentations that can be used by a sales

manager to present a non-verbal presentation. (8) 3.6 Identify the business sectors below and provide reasons for your answer. 3.6.1 Smart Creations Clothing (SCC) Manufacturer (2) 3.6.2 ABSA Bank is offering funeral cover for its clients (2) [60]



QUESTION 4: BUSINESS ROLES 4.1 Suggest FIVE ways that employers can use to deal with difficult employees. (10) 4.2 Corporate social investment contribution will be assessed in terms of the

triple bottom line. Briefly explain the triple bottom line. (12) 4.3 Distinguish between corporate social investments and corporate social

responsibility. (4) 4.4 “Forslund, 60, a hard-core socialist from Sweden, rejects the possibility that

his advice may have prolonged the strike and put these jobs on the line.” 4.4.1 Differentiate between the workplace forum and a trade union. (2) 4.4.2 List THREE functions of a workplace forum. (3 x 3) (9) 4.5 Read the following scenario and answer the questions that follow. James’ Cycles is a small business run by James, who employs his son,

John, and his daughter, Suzanne. It started off as a bicycle repair shop run by James, but when John joined the business it started selling bicycles and cycling equipment as well. Suzanne joined because the retail side of the business was growing so quickly. James still does all the repairs on the bicycles that are brought in for fixing. He is an intelligent and quiet man who is good at analysing a bicycles’ problem and finding the solution and has experience. John takes care of the retail side of the business. He is a good communicator and is always coming up with ideas of what the business should be doing next and encourages his father and sister to agree to his new ideas. Suzanne is reliable and is often the one who puts John’s ideas into action.

Use Belbin’s terms to describe what kind of role each person plays in the

business and say whether it is an action-oriented role, a people-oriented role or a cerebral role. (12)

4.6 Name FOUR characteristics of a team that successfully achieves its goal. (8) 4.7 Distinguish between a dispute and a grievance. (4) [60]



QUESTION 5: BUSINESS OPERATIONS 5.1 Study the job advertisement and answer the questions that follow. The financial department of

JOY FURNITURES has a vacancy for a

FINANCIAL MANAGER

Requirements: x Be able to analyse financial results and report to management x Be able to record financial transactions from source documents to

financial statements x Must be computer literate and be able to work with BAP – Business

Accounting Program x Be able to work under pressure

Only male applicants may apply

With a short CV to: The Manager; Joy Furnitures; Zwelitsha. or: Contact: Phila 0736785460 Only applicants on short list will be contacted for interviews.

5.1.1 Identify the type of recruitment that Joy Furnitures is using. (4) 5.1.2 State THREE advantages of this type of recruitment. (6) 5.1.3 Nelson has been invited for an interview. Suggest any THREE

possible key attributes that Joy Furnitures must include in questions to test Nelson’s skills and knowledge. (6)

5.1.4 Explain the main purpose of a job interview. (4) 5.1.5 Suggest any FOUR clauses that Joy Furnitures should be included in

the employee contract. (8) 5.1.6 Give TWO examples of voluntary deductions that can occur in

Nelson’s contract. (4)

5.1.7 Some human resource managers claim the job interview is an

unreliable assessment tool for selecting the best employee. Explain why this is the case. (4)

5.1.8 Define the concept compulsory deduction and give ONE example. (4) 5.1.9 Do you think Joy Furnitures has an obligation to offer fringe benefits

to Nelson? Motivate your answer. (2) 5.2 Discuss the purpose of the Human Resources function and explain how the

Human Resources function can influence the quality of performance of a business and staff. (10)

5.3 List any TWO acts relevant to the Human Resources function and explain

why the two acts are relevant to the Human Resources function. (8) [60]



QUESTION 6: MISCELLANEOUS TOPICS 6.1 Name any FIVE causes of conflict in a business undertaking. (10) 6.2 List any SIX conditions that will be stipulated in the employment contract. (12) 6.3 What are the responsibilities of business in terms of the Compensation for

Occupational Injuries and Diseases Act (COIDA) No. 61 of 1997. (6) 6.4 State any FOUR principles identified in the King Code. (8) 6.5 Discuss the steps in the grievance procedure that a worker must follow to

resolve a dispute. (12) 6.6 Differentiate between management and leadership. Explain whether a good

manager is better than a good leader. (12) [60] TOTAL SECTION B: 180



SECTION C Answer any TWO questions from this section. QUESTION 7 One of the criticisms against the BEE concept was that it only enriched an elite group of black individuals. In response, government initiated the Broad-based Black Economic Empowerment Act No. 53 of 2003. x Critically analyse the impact of any FIVE pillars of BBBEE on businesses. x Comment on the role of government in promoting this Act. [40] QUESTION 8 Turning a blind eye to unethical and unprofessional behaviour of co-workers makes your behaviour also unethical and unprofessional. x Describe the concept of ethical and professional behaviour and use practical

examples to explain the various issues relating to the above-mentioned. x Explain how sexual harassment, taxation and the pricing of goods in rural

areas could challenge ethical and professional behaviour. x Also make recommendations by explaining ways in which these issues could

be addressed. [40] QUESTION 9 Alfred and Apools run a successful partnership at Phillipstown known as AA Partners. They have won a lotto jackpot to an amount of R8 million. They want to increase their wealth and capital by investing it for a period of four years. As a financial advisor: x Evaluate the different factors that must be considered when making informed

investment decisions. x Explain FIVE types of formal investment opportunities. x Elaborate on the risk factors for each type of investment. [40] QUESTION 10 You are the human resources manager of Kayo Shoe Manufacturer (Pty) Ltd, a footwear manufacturer in the Eastern Cape. Your Quality Controller had resigned recently. x Discuss in detail your recruitment and selection for the new quality controller. x Discuss the legalities of the employment contract that both the employer and

employee should sign. x Briefly outline the contents that should appear in the employment contract. [40]

TOTAL SECTION C: 80 GRAND TOTAL: 300

NATIONAL SENIOR CERTIFICATE

GRADE 12

SEPTEMBER 2015

BUSINESS STUDIES MEMORANDUM

MARKS: 300

This memorandum consists of 32 pages.



NOTES TO MARKERS (COMPULSORY) 1. Candidates' responses for SECTIONS B and C must be in full sentences;

however this would depend on the nature of the question.

2. A comprehensive memorandum has been provided but this is by no means

exhaustive. Due consideration should be given to an answer that is correct but: x Uses a different expression from that which appears in the memorandum x Comes from another source x Original x A different approach is used NOTE: SECTION A:

- There are no alternative answers. - Each question has only one correct answer.

3. 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.)

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 'max' in the breakdown of marks) on

the right-hand side is to ensure consistency and accuracy in the marking of scripts.

6. In an indirect question, the theory as well as the response must be relevant

and related to the question.

7. Incorrect numbering of answers will be penalised. This is applicable to all

sections of the paper with effect from November 2015. For this paper it applies to SECTIONS A and B only.

8. No additional credit must be given for repetition of facts. Indicate with an R. 9. Subtotals to questions must be written in the right-hand margin. Circle the

subtotals as indicated by the allocation of marks. This must be guided by 'max' in memo. Only the total for each question should appear in the left-hand margin next to the appropriate question number.

10. Note that with effect from 2012 (final examination) no marks will be awarded for

indicating Yes (√√)/No (√√) in evaluation-type questions requiring substantiation or motivation. (Applicable to SECTIONS B and C.)



11. The difference between 'evaluate' and 'critically evaluate' can be explained as follows:

(a) 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. Positive: 'COIDA eliminates time and costs spent √ on lengthy civil court proceedings.’ √

(b) 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 candidates are also expected to support their responses with more depth, e.g. 'COIDA eliminates time and costs spent √ on lengthy civil court proceedings, √ 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.’ √

NOTE: 1. Mark allocation should also be considered. 2. The above could apply to 'analyse' as well. SECTION B 12.

12.1 If, for example, FIVE facts are required, mark the candidate's 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 only applies to questions where the number of facts is

specified.

12.2 If two facts are written in one sentence, award the candidate FULL

credit. Point 12.1 above still applies.

12.3 If candidates are required to provide their own examples/views,

brainstorm this at the marking centre to finalise alternative answers.

12.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 12.4.1 Where the number of facts are specified questions that require

candidates to 'explain/discuss/describe' will be marked as follows: • Heading/Fact 2 marks • Explanation 1 mark (or as indicated in the memorandum). The 'heading' and 'explanation' are given separately to facilitate mark allocation.

12.4.2 If the number of facts is not specified, the candidate must be

informed by the nature of the question and the maximum marks allocated.



12.5 ONE mark will be awarded for answers that are easy to recall, requires one-word answers or is quoted directly from scenario/case study. This applies to SECTIONS B and C in particular.

SECTION C 13. 13.1 The breakdown of the mark allocation for the essays is as follows: Introduction

Maximum: 32

Content Conclusion Insight 8 TOTAL 40 13.2 Insight consists of the following components: Layout/Structure

: Is there an introduction, body, proper paragraphs and a conclusion?) 2

Analysis and interpretation:

(Learners' ability to break down the question/interpret it correctly to show understanding of what is being asked.) 2

Synthesis: (What parts of the question would you have included in the answer? Are there decisions made from a combination of relevant points) Marks to be allocated using this guide: Mostly irrelevant facts/No relevant facts: 0 Some irrelevant facts/Some relevant facts: 1 No irrelevant facts/Only relevant facts: 2 2

Originality: (Examples, recency of information, current trends and developments.) 2

TOTAL FOR INSIGHT: TOTAL MARKS FOR FACTS:

TOTAL MARKS FOR ESSAY (8 + 32)

8 32 40

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 allocated for layout, if the headings 'Introduction, Conclusion,' etc. in 'Insight' is not supported by an explanation.

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

O').



13.4 The components of insight are indicated at the end of the suggested answer for each question.

13.5 Mark all relevant facts until the MAXIMUM mark in a subsection has

been attained. Write MAX after maximum marks have been obtained.

13.6 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 13.7 When awarding marks for facts, take note of the sub-maxima indicated,

especially if candidates do not make use of the same subheadings. Remember headings and subheadings are encouraged and contribute to insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARKS BREAKDOWN at the end of each question.)

13.8 If the candidate identifies/interprets the question INCORRECTLY, then

he/she may still obtain marks for layout.

13.9 If a different approach is used by candidates, ensure that the answers

are assessed according to the mark allocation/subheadings as indicated in the memorandum.

13.10 (a) Award TWO marks for complete sentences. Award ONE mark for

phrases, incomplete sentences and vague answers.

(b) With effect from November 2015, the TWO marks will not

necessarily appear at the end of each completed sentence. The ticks (√) 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.' √



SECTION A: COMPULSORY QUESTION 1 1.1 1.1.1 D √√ Attract investors 1.1.2 C √√ Compensation for Occupational Injuries and Diseases Act 1.1.3 C √√ Encourage a spirit of play and experimentation 1.1.4 B √√ Retirement annuity fund 1.1.5 D √√ Public company 1.1.6 C √√ Performance appraisal 1.1.7 B √√ R60 000. 1.1.8 C √√ Workplace forum 1.1.9 C √√ charismatic 1.1.10 C √√ an optimistic (10 x 2) (20) 1.2 1.2.1 C – √√ Code of ethics 1.2.2 G – √√ Skills Development Act 1.2.3 A – √√ Outsourcing 1.2.4 B – √√ Strike 1.2.5 D – √√ Delphi technique (5 x 2) (10) 1.3 1.3.1 Management √√ 1.3.2 macro √√ 1.3.3 Balanced Scorecard √√ 1.3.4 Staff development √√ 1.3.5 The King Code √√ (5 x 2) (10) TOTAL SECTION A: 40



SECTION B QUESTION 2 2.1 2.1.1 Secondary sector √√ (2) 2.1.2 Credit provider – financial institution (bank, loan shark) and retail

etc., who provides credit to the customer. √√ National Credit Regulator – A body responsible for the registration of credit providers, enforcement of compliance with NCA, regulates credit market/industry. √√ (2 x 2) (4)

2.1.3 THREE challenges and identify the business environment Challenge Business environment Increase in orders √ Micro environment √√ control it –

manufacture more Needs capital – get a loan √ Macro environment √√ credit

providers decides – Yes or No – can’t control

Interest rate increase √ Macro environment √√ part of economic environment – cannot control

Candy – no experience √ Micro environment √√ internal training – can control it.

Candy – treats customers unprofessionally √

Micro environment √√ internal training – can control it – teach her how to treat them

Increased rates and taxes √ Macro environment √√ part of economic environment – can’t control

Unique Clothing Manufacturers demand higher prices. √

Market environment √√ Supplier, No control, but influence – negotiate better prices

Decrease in profits √ Micro environment √√ Owner is responsible for profits and losses

(Any 3 x 3) (9) 2.1.4 Challenge of Skills Development Act for business:

x The 1% is an additional cost for the business.√√ x Incentives are only paid out when they employ people from

designated groups. √√ x It requires a large amount of paperwork, administration, cost time,

effort. √√ x Extra administrative staff to capture data. √√ x Specialist positions must be created in the business to drive the

skills development programme.√√ x Application procedures can be complicated. √√ x Learnerships request lots of coaching, mentoring and

monitoring. √√ x Many service providers that offer training are not SAQA

accredited.√√ x Any relevant challenge of SDA answer accepted. (Any 3 x 2) (6)



2.1.5 She has the right to reasons given for credit being refused.√ (1) 2.1.6 NCA protects credit provider and consumer. Do you agree? Yes (no marks allocated) CREDIT PROVIDER

x Right to assess the credit worthiness of consumer, right to refuse credit. √√

x Credit providers will be controlled by a regulatory body. √√ x Allowed to charge interest and other fees. √√ x Protects the credit provider against bad debts. √√ x If customer provides false information, provider is protected. √√ x The credit agreement must be in writing. √√

CONSUMER

x Right to receive information free of charge. √√ x Entitled to be given reasons for credit refusal. √√ x Right to have a credit agreement in writing and understandable

language. √√ x Right not to be discriminated against by credit providers. √√ x Right to receive monthly statements. √√ x All costs involved must be disclosed to the consumer. √√ x Lower interest rates and longer payment periods available. √√ x Debt relief is available – debt counsellor to restrict their debt. √√ x Personal information may not be shared with others. √√(Any 2 x 2) (4)

2.2 Different types of strategies: 2.2.1 Intensive: √ market development √ 2.2.2 Concentric: √ diversification √ 2.2.3 Backward integration √√ 2.2.4 Defensive: √ divestiture √ 2.2.5 Intensive: √ market penetration √ (5 x 2) (10)



2.3 Impact of Consumer Protection Act on businesses Positive impact

- Protects the consumers from unfair, exploitative and aggressive business and marketing activities. √√

- Promotes consumer rights and ensures that businesses do not violate these rights. √√

- Consumers are forced to make responsible and informed decisions.√√ - Educates consumers about how to participate in the goods and services

market responsibly. √√ - Allows all consumers fair access to goods and services. √√ - Ensures that consumers do not buy goods of poor quality which do not

meet quality standards. √√ - Any other relevant answer related to the advantages of CPA.

Negative Impact

- Non-compliance may result in heavy penalties. √√ - The Act encourages consumers to complain. √√ - Legal contracts must be worded in plain language and pitched at the level

of the consumer who is being targeted. √√ - Consumers can take advantage of businesses. √√ - The processes and procedures required of the businesses by the Act can

be expensive and time consuming. √√ - Staff need to be trained and legal experts need to be consulted, which

can be expensive for smaller businesses. √√ - The provisions in the Act increase the risks for insurance companies in

protecting businesses against unforeseen claims and lawsuits. √√ - Any other relevant answer related to the impact of CPA on businesses.

Max. (12) 2.4 Advantages of the Employment Equity Act, 1998 (Act 55 of 1998)

- Provides a framework for implementation of affirmative action. √√ - Encourage diversity and inclusivity in the workplace. √√ - Discrimination in the workplace will be eradicated. √√ - Promote equal opportunities – workplace. √√ - Prevents unfair discrimination. √√ (Any 4 x 2) (8)

[60]



QUESTION 3 3.1 3.1.1 R5 000 + R500 (R5 000 x 10%) = R5 500 √√

R5 500 + R550 (R5 500 x 10%) = R6 050 √√ R6 050 + R605 (R6 050 x 10%) = R6 655 √√ (6)

NOTE: If calculations were shown correctly, but the final answer is

wrong, award a maximum of FOUR marks. 3.1.2 R6 655 (answer from 3.1.1) – R5 000 √√

= R1 655 √√ (4) 3.1.3 Types of investments

x Shares x Notice deposit x Investment in a business x Debentures x Retail bonds x Unit trust x Any other relevant answer related to the types of investment.

(Any 2 x 2) (4) 3.2 3.2.1 Autocratic / Boss-orientated style. √√ (2) 3.2.2 Different leadership style – different challenges

x Every situation is unique and a leader must adapt. √√ x A good manager/ leader must learn to adapt to different

management styles. √√ x It depends on the nature and function of the job/business. √√ x Workers have different personalities and management must

approach each worker differently. √√ x Any other relevant motivation regarding the use of more than one

leadership style. (Max. 4) (4) 3.2.3 Situations where 3.2.1 can be applied:

- Used in crisis situations, e.g. disaster relief management. √√ - Applied when implementing business policies/government

legislation. √√ - Used when all the information is available to solve the problem.√√ - Used when dealing with employees who are not cooperative in

the workplace. √√ - Any other relevant application of the autocratic leadership style.

(Any 2 x 2) (4) 3.3 Five forces of Michael E Porter:

- Supplier power (the bargaining power of suppliers) √√ - Buyer power (bargaining power of buyers) √√ - The threat of substitute products or services √√ - Rivalry amongst existing competitors√√ - Threat of new entrants √√ (5 x 2) (10)



3.4 Forms of ownership Criteria Partnership Personal-liability

Company Capacity Success factors

- Expansion is possible because more partners can join partnership. √√

- When buying in bulks they can enjoy discounts. √√

- Partners are contributing their skills which can lead the partnership to grow. √√

Success factors - Directors are geared to

improve business prospects in the market. √√

- The company is controlled by the new companies Act, it can attract more shareholders. √√

Failure factors - In large partnership, the

partners may struggle to agree on business issues.√√

- As the number of partners increases it becomes difficult to control the expenses and the drawings. √√

Max (2)

Failure factors - It is expensive to run the

company and profits may not sustainable resulting in liquidation. √√

- It does not have a capacity to draw on large financing sources therefore cannot grow into financially strong companies. √√

Max. (2) Legislation Success factors

- There are no legal requirements to establish or end a partnership, but they may draw up the partnership agreement or article. √√

- The partnership is not a legal entity and partners therefore have unlimited liability for the debts of the partnership. √√

- Partnership may apply for local tenders. √√

Success factors - The rights and duties of

shareholders are stipulated in the Companies Act, therefore minimising unethical and corrupt behaviour. √√

- Shareholders have limited liability. √√

- May obtain government tenders, as PLC is properly registered. √√

Failure factors - Partners are jointly and

severally liable for the debts of the business. √√

- No continuity – If one of the partners dies retires or leaves the partnership automatically dissolves and new one can be formed. √√

- The wrongful action of one partner can has a negative influence on the business. √√ Max. (2)

Failure factors - Private companies

cannot freely sell shares to the public. √√

- Companies have to comply with many legal requirements when they are established. √√

- An audit is required only if PLC meets the requirements test as stipulated in the Act.√√

Max (2)



Management Success factors - All partners are actively

involved in the management of the partnership. √√

- As the partnership they are making collective decisions. √√

Success factors - It is managed by the

board of directors elected by the shareholders. √√

- Quick decisions can be made if there is only one director. √√

Failure factors - Quick decisions cannot be

made as all partners should be informed. √√

- Some partners may not work as hard as others as all of them are actively involved in the daily running of the partnership. √√

- Too many partners in the partnership day to day running may hamper the success of the business. √√

Max. (2)

Failure factors - Shareholders have

powers to decide on the directors’ remuneration or compensation; directors may be demotivated to work hard. √√

- The board of directors may not have a personal interest in the PLC. √√

Max. (2) Max (12) 3.5 Types of non-verbal presentation

x Tables √√ x Diagrams √√ x Graphs √√ x Pie charts √√ x Business reports √√ x Any other relevant answer related to non-verbal presentation.

(Any 4 x 2) (8) 3.6 3.6.1 Identification

Secondary sector √ Reason Changing/transforming/ manufacturing of raw material into useful goods or services √ (2)

3.6.2 Identification

Tertiary sector √ Reason This is rendering of service. √ (2)

[60]



QUESTION 4: BUSINESS ROLES 4.1 Dealing with difficult employees

- Ask someone in authority for their input into the situation. √√ - Treat people with respect. √√ - Let the person know what your intentions and the reasons for your actions

are, this will make them at ease. √√ - The approach to employees plays an important role. √√ - Be calm and in control of the situation to get the person to collaborate. √√ - Not be driven by emotions but get down to the roots of the problem or

frustrations of the employee. √√ - Understand the person’s intentions and why they react in a certain way. √√ - Any relevant answer related to ways of dealing with a difficult employee.

(Any 5 x 2) (10) 4.2 Triple bottom line Economic sustainability

Economic prosperity √√ Environmental Sustainability √√

Social sustainability Social responsibility √√

Focus on long-term profits and growth. Making a profit is important to satisfy investors. Ensure continuity of business. Investors want a return – dividends. Employees expect remuneration. √√

Protect the environment, because business depends on resources. If we do not take care of the planet, there will be not future. Minimise pollution. Protect the infrastructure.√√

Help poor communities. Social upliftment, development and poverty reduction. SR is important as the focus should also be on the people in the community, customers, suppliers, etc. √√

(12)

4.3 Corporate social responsibility - When business voluntary take steps in uplifting the communities/take steps

to improve the quality of life. - It can be defined as the way businesses manage their business processes

to affect their stakeholder in a positive way. - It is the duty of businesses to contribute towards the well-being of the

community. - Refers to any strategy used by a business to take responsibility for their

impact on society and the environment. - It is not a single action but an approach to doing business that guides all

decision making in the firm. (Any 2 x 2) (4)

Corporate social investment - The money that businesses spend on the community to improve the

standard of living of the community. - The aim is to contribute to sustainable economic development. - Projects are external to the business and have a strong developmental

approach. - Is not linked to increasing the profits of the business. - Intended to benefit and uplift communities through social development.

(Any 2 x 2) (4) Max. 4



4.4 4.4.1 Workplace forum - Is to solve labour-related problems by establishing non-adversarial

and co-operative relationships between all workers and the employer.

- It can be established in a business with more than 100 employees. (Any 1 x1) (1)

Trade Union - An employee organisation with the purpose of regulating

employer-employee relations through collective bargaining. - Collective bargaining is a process where employer/employee

organisations and trade unions negotiate with one another to achieve an agreement regarding conflicting needs, interests or goals. (Any 1 x 1) (1)

4.4.2 Functions of the workplace forum - Be actively involved in collective bargaining√√ on issues such as

conditions of employment/remuneration.√ - Protects the employees against unfair dismissals√√ by

representing employees during hearings.√ - Consults with employees and employers on all workplace√√

related issues before implementing new policies.√ - Protects the fundamental human rights of the workers in the

workplace√√ by acting as a watchdog for workers’ human rights.√ - Must be consulted by the employer when decisions are taken√√

regarding issues such as restructuring at the workplace.√ - Protects employees against discrimination in the workplace√√ by

ensuring equal treatment of all employees.√ - Any other relevant answer related to the functions of a workplace

forum. NOTE: Mark first THREE (3) only. (Any 3 x 3) (9)

4.5 Belbin’s terms:

- James plays the role of specialist, √√ which is a cerebral role. √√ - John plays the role of co-ordinator, √√ which is a people-oriented role.√√ - Suzanne plays the role of implementer, √√ which is an action-oriented

role. √√ (6 x 2) (12) 4.6 Characteristics of a successful team

- Commit willingly to team goals. √√ - Help co-workers to do their jobs. √√ - Provide emotional support to co-workers. √√ - Team members support one another. √√ - Team members display mutual respect and trust. √√ - Team members respect each other’s skills.√√ - Minimise negative attitudes. √√ - Possess the necessary skills to resolve problems. √√ - The team has clearly defined goals and objectives which are realistic and

achievable. √√ - Any other relevant characteristics of a successful team. (4 x 2) (8)



4.7 Dispute – A conflict of interest between the employer and members of a trade union. √√ Grievance - A conflict interest between the employer and the employee. √√ - An employee’s complaint regarding a real or imagined breach of the

terms of the employment contract. √√ - Any other relevant answer differences between a dispute and grievance.

(2 x 2) (4) [60] QUESTION 5: BUSINESS OPERATIONS 5.1 5.1.1 External recruitment. √√ (2) x Vacancies were advertised in the newspaper.√√

x Advertising took place outside the business. √√ (Any 1 x 2) (2) 5.1.2 THREE advantages of external recruitment

x Chances are better of finding suitable candidates with the right skills. √√

x Prevents unhappiness between existing employees. √√ x There are more candidates to choose from. √√ x It supports the implementation of affirmative action and BEE

plans. √√ x Recruitment agencies can find candidates and this saves the

business time. √√ x New candidates bring new talents, ideas, insight, and experience

into the business.√√ (Any 3 x 2) (6) 5.1.3 THREE possible attributes in questions during the interview

x Ability to solve problems (problem-solving skills). √√ x Ability to work in a team. √√ x Creativity. √√ x The necessary knowledge that is needed. √√ x Does applicant have financial skills? √√ x In-depth knowledge of a particular topic.√√ x Persuasiveness and perseverance. √√ (Any 3 x 2) (6)

5.1.4 Main purpose of a job interview

x To verify the information provided on the CV and the application form. √√

x To meet the applicant personally and to find out more. √√ x It determines the suitability of the applicant to do the job. √√ x To get more information about the candidate and to evaluate the

candidate. √√ x To test attitude, mannerisms, personality, goals of the person. √√ x It allows the candidate to ask questions about the business. √√ x To evaluate the applicant’s communication skills. √√ (Any 2 x 2) (4)



5.1.5 FOUR clauses in the employee contract x Full name and address of the employer. √√ x Name and personal information of the employee. √√ x Working hours.(days and working hours) √√ x Remuneration (Salary and other incentives. √√ x Date of commencement of the work. √√ x Rate of pay and deductions to be made. √√ x Benefits such as subsidies and medical benefits. √√ x Conditions for the termination of the contract.√√ x Employees’ placement (place of work) and job description. √√

(Any 5 x 2) (10) 5.1.6 Two examples of voluntary deductions:

x Medical aid √√ x Funeral scheme √√ x Provident funds √√ x Payment for cellphone contracts √√ x Vehicle instalments √√ x Membership fees to a staff association/trade union √√ x Insurance premium √√ x Mortgage bond repayment√√ (Any 2 x 2) (4)

5.1.7 Job interview; unreliable assessment?

x Discrimination/judging? – Applicant and interviewer have different outlooks. √√

x Unfair questions – applicant may feel unease by uncomfortable questions. √√

x Submit false after school qualifications and present it on the CV. √√

x Candidate can present a false “picture” of himself. √√ x The candidate can lie during the interview. √√ x CV can hide certain information, information in CV is selective.√√ x You can only disclose certain information in the interview. √√

(Any 2 x 2) (4) 5.1.8 Compulsory deduction and example:

x Deductions prescribed by law to be deducted from the employees’ salaries. √√ (2)

A. PAYE (tax) – pay as you earn

SARS collects tax from salaries on a monthly basis. B. UIF – unemployment insurance (gross salary – 2%) Employer contributes 1% and worker contributes 1%. C. Deductions based on a court order. D. Over-payment of salaries E. Garnishee order F. Pension funds (Any 1 x 2) (2)



5.1.9 Fringe benefits (Examples: cellphone allowance, petrol card, car allowance) No, it is a privilege and not a right. √√

OR Yes, it is a financial Manager (middle management) post – try to make the job more attractive.√√ (2)

5.2 Purpose of the Human Resources function

x Appraising and managing work performance. √√ x Managing employees’ careers. √√ x Providing incentives and benefits to employees. √√ x Establishing and maintaining employee wellness. √√ x Ensuring the right staff with right skills to perform a job. √√ x Is responsible for the recruitment, selection, and placement of staff in

the right positions. √√ x Orientation employees (induction). √√ x HR ensures a happy, motivated, committed workforce. √√ x A business’s people are often considered its most important asset. √√

(Any 2 x 2) (4) Explain how HR can influence the quality of performance of a business

x Ensure effective recruitment and selection of new employees. x Conducting an induction programme for all new staff members to

introduce them. x Using an effective placement programme to ensure workers are place in

positions. x Ensuring that employment contracts are in place for all staff. x Implementing employment equity measures – no discrimination is

allowed. x Ensuring that employees are appropriately and fairly remunerated. x Find suitable candidate for the right job. x Appoint people to positions where their capabilities can be used to the

advantage of the business. x Test applicants – ensure they are placed in the best position. x For effective quality performance, it is necessary to do continuous training

and development of the staff. x Qualified and highly stable staff leads to a low rate of staff turnover.

(Any 3 x 2) (6) 5.3 Name any TWO Acts relevant to the Human Resources function and explain

x Basic Conditions of Employment Act - To ensure the fair remuneration of workers – minimum wages. - To ensure fair labour practices in the workplace. - Also provide information regarding the contract of employment. - HR must follow conditions set out in the Act. - Applies to all employees/employer to improve working conditions.

(Any 1 x 2) (2)



x Labour Relations Act - Guidelines for collective bargaining, grievance procedures, strikes - Disciplinary codes and procedures. - Allow workers to belong to a trade union, access to workplace. - Regulates labour relationships between employer, employee and trade

unions. (Any 1 x 2) (2) x Compensation for Occupational Injuries and Diseases Act

- Provide compensation to employee for work related injuries. - Every employer must pay an annual assessment fee to the

compensation fund. - All employers must be registered – injuries/diseases at work.

(Any 1 x 2) (2) x Employment Equity Act

- Implementation of affirmative action in the workplace. - To redress imbalances of the past. - Prevent discrimination in the workplace. - Ensures equity in the workplace. (Any 1 x 2) (2)

x Skills Development Act

- HR must identify the training needs of the workers. - HR must register and pay the 1% of the payroll - Ensure that quality training takes place – make use of SETAs - Ensure training by accredited service providers. (Any 1 x 2) (2)

x Unemployment Insurance act

- HR must register workers, working longer than 24 hours per month. - It provides short-term relief to the workers for unemployment. - HR must contribute 2% (1% employee and 1% employer) to UIF

(Any1 x 2) (2) (1 heading (2) and 1 explanation (2) x 2 =) (8) [60]



QUESTION 6: MISCELLANEOUS 6.1 Causes of conflict

x Weak leadership√√ x Poor communication/miss – communication√√ x Social factors/Personality clashes√√ x Lack of teamwork√√ x Distrust√√ x Scarce/Limited resources in the workplace√√ x Gender bias/discrimination √√ (Any 5 x 2) (10)

6.2 6.2.1 Advantages of quality management system (Conditions that will be

stipulated in the employment contract, as in the question paper) x Increased customer satisfaction. √√ x Efficient use of resources and time. √√ x Increased productivity through good time management and

using high-quality resources. √√ x Constant improvement of products and services. √√ x Increased likelihood of achieving business vision and goals. √√ x Increased competitiveness as high quality places products

above those of competitors. √√ x Improved employee skills and knowledge through constant

training. √√ (Any 3 x 2) (6) 6.2.2 Principles/Elements of TQM

x Continuous skills development. √√ x Total client satisfaction. √√ x Continuous improvements to processes and systems. √√ x Adequate financing and capacity. √√ x Planning, monitoring and evaluation. √√ x Involvement of all and employee responsibility. √√ x Quality decisions should be made based on measurements. √√ x Top management should act as the main driver for TQM and

create an environment that ensures its success. √√ (Any 3 x 2) (6)



6.3 Responsibilities of business in terms of COIDA x Records must be kept safely by the business for a period of four. √√ x In the event of an injury, the Commissioner must be notified within seven

days. √√ x The employer is responsible for submitting a series of forms – to claim on

behave of the injured. √√ x Businesses make an annual payment after assessment 9calculations) of

Commissioner. √√ x Employer must also provide a report every year with details of

employees, wages and time worked. √√ x Business must register with the Commissioner of Compensation –

Department of Labour. √√ (Any 3 x 2) (6) 6.4 Principles in the King Code

x Sustainability √√ x Independence √√ x Good governance √√ x Innovation √√ x Board of Directors – leadership √√ x Shareholder specification √√ x Transparency √√ x Accountability and audit conditions √√ x Social transformation – requirements specified √√ x Fairness √√ (Any 4 x 2) (8)

6.5 Steps in grievance procedure

- Verbal complaint √ – the employee states his problem to his supervisor. √√

- Investigation √ – the supervisor listens, investigates the problem and suggests solutions.√√

- Formal written complaint √ – if the employee is not satisfied with the suggested solutions, he/she can make a formal written complaint to the next level of management.√√

- Further investigation by next level of management √ – this level investigates the problem again, suggests a solution and makes a recommendation.√√

- Resolution of the problem √ – grievance is solved and the employee is happy.√√

- If not satisfied, the employee declares a dispute√ – the matter is referred for mediation and arbitration i.e. CCMA. √√

- Any relevant answer related to steps in grievance procedures. Steps – 1 mark Explanation – 2 marks

(Any 4 x 3) (12)



6.6 Distinguish between leadership and management MANAGEMENT LEADERSHIP A person becomes a manager, because

of his position. Leaders are born

The process of getting things done by

exercising responsibility Inspiring or influencing people to become achievers.

Try to keep risks under control Guiding and leading people to become active participants.

Manager has power because of the position of authority given to him.

Leader has power because of his knowledge, skills.

Enforce rules on subordinates Always trying to find more efficient ways of completing tasks.

Management distributes tasks to others Motivate people, empower people

Acts as advisors – give instructions Always on the lookout for business opportunities

Ensure that tasks are completed.

Leaders are activity involved in most of the projects.

(Any 3x 2) (6) (Any 3 x 2) (6) (12) [60]

TOTAL SECTION B: 180



SECTION C Mark only the first TWO (2) questions QUESTION 7 7.1 Introduction

- The BBBEE Acts deals with codes of good practice and industry charters. - BBBEE aims to distribute wealth amongst all South Africans by encouraging

businesses to employ black South Africans. - BBBEE is the economic empowerment of all black people including women,

workers, youth people with disabilities and people living in rural areas. - Companies are ranked according to a total BEE score achieved on the

seven pillars of BBBEE. - Any relevant introduction related to BBBEE. (Any 3 x 1) (3)

7.2 7.2.1 Impact of BBBEE pillars on businesses 7.2.1.1 Ownership.

- Many black people cannot afford shares/contributions to partnerships.

- More opportunities are created for black people to become owners.

- Businesses sometimes find it difficult to find suitable black business partners.

- Business should include black people in shareholding. - Any other relevant answer related to the ownership

according to BBBEE. Sub max (6) 7.2.1.2 Management.

- Due to shortage of skilled black managers, some businesses find it difficult to make appointments.

- Blacks need to be capacitated on managerial skills. - Business must ensure black female representation in

management i.e. gender equity. - Appointing black people in senior executive positions/to

management. - Any other relevant answer related to the impact of

management according to BBBEE. Sub max (6) 7.2.1.3 Preferential procurement

- Suppliers purchasing from BBBEE compliant businesses are given preference to Government tenders.

- Business may outsource their services to unreliable suppliers.

- Purchasing goods and services from other businesses with a good BEE Scorecard.

- Businesses may not have a choice but to use the preferred suppliers.

- Any other relevant answer related to the impact of preferential procurement according to BBBEE. Sub max. (6)



7.2.1.4 Skills Development. - Business must go the extra mile to train staff where

learnerships are not offered. - Business benefits from the increased pool of skilled

workers. - Provide learnerships and learning programmes to black

employees. - The Skills Development Act stipulate that each business

to contribute 1% of their payroll to fund the skills development programmes.

- Any other relevant answer related to the impact of skills development according to BBBEE. Sub max (6)

7.2.1.5 Employment Equity.

- May lead to conflict between management and employees.

- Businesses must have Employment Equity Plan in place. - Voluntary employment equity targets are set and then

monitored by the government. - Business should employ suitable and qualified

employees regardless of gender/race/culture, etc. - Any other relevant answer related to the impact of

Employment Equity according to the BBBEE. Sub max (6) 7.2.1.6 Corporate social Investment/social Responsibility

- Social Investment is paid from enterprise’s profit that could have been used to lower prices and this could benefit customers.

- Detailed reports must be drawn up. - Social spending reduces an enterprise’s economic

efficiency, making it less competitive. - The community may not support the enterprise i.e. does

not buy the product of the enterprise. - Difficulty in adherence to legislation governing the CSI. - Any other relevant answer related to the impact of

CSI/CSR according to the BBBEE. Sub max (6) 7.2.1.7 Enterprise development

- Black-owned SMMe’s may become too reliant on support from other businesses.

- Businesses are encouraged to invest/support black owned SMME’s.

- Contribution can be monetary or non-monetary. - Any other relevant answer related to the impact of

enterprise development according to the BBBEE. Sub max (6)

Max (30) Only the first FIVE pillars to be marked.



7.3 Role of government. - Imposes penalty/fines on businesses that do not comply with the BBBEE

Act. - Allocates tenders to those businesses that comply with the legislation. - Prevents and acts on fronting. - Prescribes scorecards to score small and large businesses. - Trains businesses to be correctly implement the scorecards. - Gives recognition certificates to those businesses which comply with this

act. - Any other relevant answer related to the role of the government.

Sub max (8) 7.4 Conclusion

- The government main objective is to address the imbalances of the past. - Each and every citizen of the country is able to own the factors of

production. - One of the strategies to stimulate the economic growth. - Any other relevant conclusion related to the pillars of BBBEE (Any 1 x 2) (2)

BREAKDOWN OF MARKS DETAILS MAXIMUM TOTAL Introduction 3

Max 32

Impact of any FIVE pillars on business 30 Role of the government 8 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality 2 TOTAL MARKS 40 *LASO – For each component Allocate 2 marks if all requirements are met. Allocate 1 mark if some requirements are met. Allocate 0 marks where requirements are met. [40]



QUESTION 8 8.1 Introduction

x Business ethics means the highest legal and moral standards are upheld when dealing with any stakeholders of the business.

x Business managers need to constantly measure the ethically of their decisions.

x It is important for businesses to develop their own code of ethics. x Before making decisions, it is necessary to consider the impact of their

decisions and actions. (Any 2 x 1) (2) 8.2 Ethical behaviour

x Ethical behaviour goes beyond obeying laws, rules and regulations and involves doing the right thing.

x Set of values that are morally acceptable in society which displays good, right and fair actions.

x These are rules and principles which influence the best business practice.

x Ethical behaviour is a requisite for professionalism. x Refer to accepted principles of right or wrong. (Any 2 x 2) (4)

Professional behaviour

x Various occupational practices e.g. doctors, develop their own code of professionalism.

x Set of standards of expected practices. x It means: x Representing your employer, co-workers and yourself with dignity. x Demonstrating appropriate behaviour towards colleagues, superiors,

subordinates and the public at large. (Any 2 x 2) (4) 8.3 Practical examples PROFESSIONAL

- Treating people with respect, helping others, polite languages, dress code.

- Doing the best job possible. - Do not discuss clients/employees with others - Any relevant answer (Any 1 x 2) (2)

ETHICAL

- No business should be started at the expense of others. - Pay tax regularly - Pay fair wages/salaries. - Environment should be protected. - No dishonest advertising, corruption, selling of defective products. - Any relevant answer. (Any 1 x 2 ) (2)



8.4 TAXATION/TAX EVASION - Professional behaviour in this regard would be to pay the due tax to the

Receiver of Revenue. - Evasion is punishable by law. (it is a criminal offence) - The business needs to be familiar with latest changes in tax legislation to

avoid fines. - Tax evasion (company and personal income tax) is a criminal act. - Government needs all the tax to provide for services such as education,

housing, health, etc. (Any 2 x 2) (4) Recommendations

- Government can use bonuses as incentives when businesses pay their taxes before the due date.

- Professional behaviour includes paying taxes and businesses must be educated on the importance of paying taxes.

- Reduce tax and more people will choose to pay tax. - Evaluate the risk of being caught against the benefit gained from tax

evasion. (Any 2 x 2) (4) SEXUAL HARASSMENT

- It is wrong to abuse your position to take advantage of people. - This is any sexual advance, gesture or remark that causes a person to

feel intimidated and threatened. - It is unwelcome/unwanted attention. - Sexual harassment is prohibited by labour legislation and companies

must educate its employees on this issue. - Sexual harassment occurs when a superior offers a promotion or a raise

in salary in return for sexual favours from the subordinate. (Any 2 x 2) (4) Recommendations

- Formulate a clear policy regarding sexual harassment. - Businesses must strive to create a positive corporate culture – everyone

is protected and members are respected. - Implementation of a protocol for dealing with sexual harassment. - Implement a clear complaints and disciplinary procedures. (Any 2 x 2) (4)

PRICING OF GOODS IN RURAL AREAS

- Big businesses are reluctant to open outlets in rural areas because of poor returns on their investments.

- Manufactured products in rural areas are much higher than the national average prices.

- The lack of infrastructure in rural areas results in monopolising of some of the goods.

- It is common practice for people in rural areas to pay higher prices for goods which in most cases are inferior quality.

- As a result the businesses lose loyalty of their customers. (Any 2 x 2) (4) Recommendations

- Government is focusing on infrastructure development in rural areas, this include shopping centres.

- Suppliers can work together – take turns to deliver goods. - Rural storeowners should be encouraged to be more ethical in their

dealings – determine fair prices. (Any 2 x 2) (4)



8.5 Conclusion - Profitability of the business is being affected by each of the above issues. - Ethics and professionalism form an integral part of business operations

and practices. - Businesses who behave professionally and ethically are usually

sustainable and have a good public image. - Accept any appropriate conclusion (Any 1 x 2) (2)

BREAKDOWN OF MARKS Details Maximum Subtotal Total

Introduction 2

Ethical behaviour Professional behaviour Practical examples Sexual harassment Taxation Pricing of goods in rural areas recommendations

4 4 4 4 4 4 4

36

Conclusion 2 Maximum 32 Layout 2 Analysis 2 Synthesis 2 Originality 2 TOTAL MARKS 40

*LASO – For each component. Allocate 2 marks if all requirements are met. Allocate 1 mark if some of the requirements are met. Allocate 0 marks where requirements are not met at all. [40]




x An investment is when you put money into something with the expectation of a gain or returns, either through income or by increasing the investment.

x Investors have range of investment opportunities to choose from. x They measure these investment opportunities against criteria for good

investment. x Any other relevant introduction related to investment. (Max.) (3)

9.2 INVESTMENT FACTORS TO BE CONSIDERED Return on Investment (ROI)

- The return should be expressed as net after-tax return. - Refers to income from the investment, namely interest, dividends or

capital appreciation on the original amount invested. - Generally, there will be a direct link between risk and return. - The net after tax return should be higher than the inflation rate at the time. - Accept any other relevant introduction. (3)

Risk

- An investment with a high rate of return will usually have a greater degree of risk.

- A good investment will be at low risk. - Example: investing in shares has a high risk than investing in a fixed

deposit. (4) Liquidity

- A certain amount of capital should be invested in a type of investment that can be converted to cash.

- The term liquidity is used to describe the ease and speed with which you can convert an investment.

- Example: an investment in a savings account will be easier to convert into cash than an investment in a fixed deposit which is usually deposited for a fixed period of time or property which will take time to sell before investment is converted.

- Any other relevant answer related to liquidity. (4) Taxation

- A good investment will yield good after-tax returns. - Income tax implications must be considered in order to get to a high net

after-tax rate of return. - South Africa has a high interest rate. - Tax rates are not necessary the same for different investments. (4)

Inflation rate

- Inflation refers to a decrease in the value of money and rising prices - Income from an investment should be higher than the inflation rate. - People are highly affected by a high inflation rate because if prices

increase they can buy less with their money/ purchasing power decreases.



Investment period √√ - This is the duration of the investment. √√ - It can be short, medium or long term. √√ - The investment period will depend on the customer’s personal needs. √√ (4)

9.3 FORMS OF INVESTMENT Unit trusts √√

- It is a package made up of shares in different companies and can be bought directly from the unit trust company.√√

- Risk factor: a stock exchange crash will have a negative impact on the value of the unit. √√ Sub max.

Endowment policies

- This is where companies invest investor’s money in large projects such as buildings.

- Risk factor: a forecast is made, which is not always accurate and high unrealistic expectations of the investors are created.

Bonds

- The investors’ money is used to finance the purchasing of buildings and the rate of return is normally above average.

- Risk factor: is low Fixed deposit

- This is a very conservative method of investment – it is based on a fixed rate bit it is also more secure.

- Risk factor: is very low as the investor will receive what was promised. 32-day notice account

- Your money is invested at a fixed rate, although you may withdraw it at any time provided you give the bank 32-day notice.

- Risk factor: low because interest rate or rate of return is low. Property

- Property can keep up with inflation and can be a very effective way of gearing your investment.

- Risk factor: is moderate to high as much depends on the location of the property and the political and economic environment.

Offshore investment

- Offshore investment is the keeping of money in a jurisdiction other than one’s country of residence.

- They also allow legitimate investors to take advantage of higher rates of return or lower rates of tax on that return.

- Risk factor: is low medium or high risk – influenced by the economic performance of the country that has been invested in.



Retirement Annuities (RAs) - Investment in which an individual pays a monthly premium over a long

period of time before retirement. - On retirement the money is paid out to the investor, to provide for his/her

retirement. - Risk factor: low risk – funds are protected from creditors.

NOTE: Mark first FIVE (5) types of investment only. Type: Sub max (4) Risk: Sub max (2) Max (30) 9.5 Conclusion

x Money can be invested on behalf of an individual by an asset management company.

x After considering the various investment opportunities and risk factors, the partners can make a calculated decision. (max) (2)

BREAKDOWN OF MARK ALLOCATION DETAILS MAXIMUM TOTAL Introduction 3

Max. 32

Investment factors 12 Types of investment & risk factor 5 x 6 = 30 Conclusion 2 INSIGHT Layout 2 Analysis, interpretation 2 Synthesis 2 Originality, examples 2 TOTAL MARKS 40 *LASO – For each component: Allocate 2 marks if all requirements are met. Allocate 1 mark if only some of the requirements are met. Allocate 0 marks where requirements are not met at all. [40]




- Human resources management involves the process of finding the appropriate worker with the relevant skills to fill a particular vacancy to meet the goals of the enterprise.√

- Businesses must follow a step-by-step process to ensure that most efficient candidates will be selected for the post.√

- Human Resources Management is an on-going management function.√ - It ensures that the aim and objectives of the business are achieved and

proper planning of human resource is done.√ - Any other relevant introduction related to Human Resources Function.

(Any 3 x 1) (3) 10.2 Recruitment√√

x Determine the key performance areas of the specific job.√√ x If, external, select the relevant recruitment source e.g. from recruitment

agencies, tertiary institution or placing an advertisement in the newspaper.√√

x The job analysis must be done, e.g. the job description and job specification.√√

x The two kinds of resources are internal or external.√√ x The internal source is when the candidate is found from within the

business and external is when the business makes use of advertising educational institutions, head hunting, etc.√√

x Any relevant answer relating to recruitment. Heading 2 Discussion (Any 3 x 2) 6

Maximum (8) Selection √√

- Drawing up criteria stating factors such as skills, characteristics and experience that are applicable to the post. √√

- Select the most suitable candidates from the application forms (CV). √√ - The Human resources manager must formulate short-listing criteria for

the applicants. √√ - Inform unsuccessful candidates about the outcome of their

application. √√ - The HR manager invites the candidates who were short-listed to an

interview. √√ - Candidates may also ask to complete certain tests, e.g. personality tests,

aptitude tests and/ or skills tests. √√ - The successful candidate is informed by correspondence, that he/she is

appointed. √√ - The successful candidate will receive a written contract and he/she must

sign it. Heading 2

Discussion (Any 3 x 2) 6 Max. (8)



Legalities of the employment contract - Employment contract is an agreement between the employer and the

employee and is legally binding. √√ - It may not contain any requirements that are in conflict with the BCEA.√√ - Aspects of the employment contract can be re-negotiated during the

course of employment. √√ - No party may unilaterally change aspects of the employment contract.√√ - The employment contract should include a code of conduct and code of

ethics. √√ - The HR manager must be explaining the clauses in the employment

contract to the employee in his/her understandable language preferably his/her home language.√√

- Conditions of employment, duties and responsibilities of the employee must be stipulated clearly.√√

- All company policies, procedures and disciplinary codes/rules can form part of the employment contract.√√

- Any other relevant answer related to the legalities of the employment contract. Max (12)

Contents of the employment contract Details of the employer

- The employment contract must contain the address and contact details of the business.

Personal details of the employee - The contract must have the physical address, contact details, as well as

other details of the employee, e.g. ID number, age, full name(s) Job title and job description - The contract must clearly state the job title and outline the duties and

responsibilities of the employee. Working hours

- Hours of work, in line with the BCEA, must be clearly stated in the contract.

Overtime - Overtime hours per day and per week must be clearly outlined in the

contract. - Work time that will be deemed as overtime should be explained in detail.

e.g. Sundays and public holidays Remuneration package

- The contract stipulated the amount payable to the employee. Leave - Employment contract must stipulate the different types of leaves and the

number of days allowed for each type of leave as per BCEA. Termination of employment contract - Employment contract must give clear guidelines regarding the

procedures involved in terminating the contract. Max. (10)



10.3 Conclusion - An effective human resource recruitment process will ensure a low

employee turnover for the company. - The human resources manager must also ensure that employees are

well motivated, trained and committed to their duties. (Any 1 x 2) (2) BREAKDOWN OF MARK ALLOCATION Details Maximum Total

Introduction 3 Max.

32

Recruitment and selection 16 Legal requirements 12 Contents of contract 10 Conclusion 2 INSIGHT Layout 2 Analysis 2 Synthesis 2 Originality 2 TOTAL MARKS 40

(40) TOTAL SECTION C: 80 GRAND TOTAL: 300

grade 12 september 2015 business studies

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