BUSINESS STUDIES
GRADE 12 
NSC EXAMS PAST PAPERS AND MEMOS SEPTEMBER 2019
PREPARATORY EXAMINATIONS

NOTES TO MARKERS 

1. Comprehensive marking guidelines have been provided but this is by no means  exhaustive. Due consideration should be given to an answer that is correct, but:
   • Uses a different expression from that which appears in the marking guidelines
   • Comes from another source
   • Original 
   • A different approach is used
     NOTE: There is only ONE correct answer in SECTION A. 
2. Candidates’ responses must be in full sentences for SECTIONS B and C.  However, this would depend on the nature of the question. 
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 as  well as for calculation purposes. 
6. 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  marking guidelines. Only the total for each question should appear in the left-hand  margin next to the appropriate question number. 
7. In an indirect question, the theory as well as the response must be relevant and  related to the question. 
8. Incorrect numbering of answers to questions or sub-questions in Section A and B  will be severely penalised. Therefore, correct numbering is strongly  recommended in all sections. 
9. No additional credit must be given for repetition of facts. Indicate with an R.
10. Note that 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 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. Positive: ‘COIDA eliminates time and costs spent √ 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 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. The above could apply to 'analyse' as well.
    2. Note the placing of the tick (√) in the allocation of marks. 
12. The allocation of marks must be informed by the nature of the question, cognitive  verb used, mark allocation in the marking guidelines and the context of each  question.
    Cognitive verbs, such as:  
    12.1 Advise, name, state, mention, outline, motivate, devise, 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 Describe, explain, discuss, elaborate, compare, distinguish,  differentiate, 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.
14. SECTION B
    14.1 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.
    14.2 If two facts are written in one sentence, award the candidate FULL credit.  Point 14.1 above still applies.
    14.3 If candidates are required to provide their own examples/views,  brainstorm this to come up with alternative answers.
    14.4 Use of the cognitive verbs and allocation of marks: 
    14.4.1 If the number 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) 
    • Explanation 1 mark 
      The 'fact' and 'explanation' are given separately in the marking  guidelines to facilitate mark allocation. 
      14.4.2 If 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 guidelines. 
      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
    Content
    Conclusion
    Insight	8
    TOTAL	40

    15.2 Insight consists of the following components:
    

    Layout/Structure	Is there an introduction, a body and a conclusion?	2
    Analysis and  interpretation	Is the candidate able to breakdown the question into  headings/sub-headings/interpret it correctly to show understanding of what is being asked?  Marks to be allocated using this guide:  All headings addressed: 1 (One ‘A’) Interpretation (16 to 32 marks): 1 (One ‘A’)	2
    Synthesis	Are there relevant decisions/facts/responses made  based on the questions?   Marks to be allocated using this guide:  No relevant facts: 0 (Two ‘-S’)  Some relevant facts: 1 (One ‘-S’)  Only relevant facts: 2 (No ‘-S’)  Option 1: Where a candidate answers 50% or more  of the question with only relevant facts; no   '-S' appears in the left margin. Award the  maximum of TWO (2) marks for synthesis.  Option 2: 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%  of the question with no relevant facts; two  '-S' appear in the left margin. Award a  ZERO mark for synthesis.	2
    Originality	Is there evidence of 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 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 guidelines to each question. 
       15.5 Mark all relevant facts until the SUB MAX/MAX mark in a subsection  has been attained. Write SUB MAX/MAX after maximum marks have  been obtained. 
       15.6 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

        15.7 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 sub-headings are encouraged and contribute  to insight (structuring/logical flow/sequencing) and indicate clarity of  thought. 
       (See MARKS BREAKDOWN at the end of each question.) 
       15.8 If the candidate identifies/interprets the question INCORRECTLY, then  he/she may still obtain marks for layout. 

16.                
    16.9 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. 
    16.10
    16.10.1 Award TWO marks for complete sentences. Award ONE  mark for phrases, incomplete sentences and vague answers.
    16.10.2 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.”√
    This will be informed by the nature and context of the  question, as well as the cognitive verb used.
    16.11 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.

MEMORANDUM

SECTION A: COMPULSORY 
QUESTION 1  
1.1
1.1.1 D √√ 
1.1.2 A √√ 
1.1.3 C √√ 
1.1.4 A √√ 
1.1.5 D √√ 
1.1.6 D √√ 
1.1.7 B √√ 
1.1.8 C √√ 
1.1.9 A √√ 
1.1.10 B √√ (10 x 2) (20) 

1.2
1.2.1 National Credit √√ 
1.2.2 written report √√ 
1.2.3 CSR √√ 
1.2.4 association √√ 
1.2.5 external √√  (5 x 2) (10) 

1.3
1.3.1 J √√ 
1.3.2 E √√ 
1.3.3 H √√ 
1.3.4 G √√ 
1.3.5 A √√  (5 x 2) (10) 
TOTAL SECTION A: 40 

BREAKDOWN OF MARKS

SECTION B 
Mark ONLY the FIRST THREE (3) questions in this section. 
QUESTION 2: BUSINESS ENVIRONMENTS 
2.1 Defensive strategies 

• Retrenchment √
• Divestiture √
• Liquidation √ 

NOTE: Mark the first THREE (3) only. (3 x 1) (3) 
2.2 Steps in strategy evaluation 

• Examine the underlying basis of a business strategy. √√ 
• Look forward and backward into the implementation process. √√ 
•  Compare the expected performance with the actual performance. √√ 
• Measure business performance in order to determine the reasons for  deviations and analyse these reasons. √√ 
•  Take corrective action so that deviations may be corrected. √√ 
• Set specific dates for control and follow up. √√ 
• Draw up a table of the advantages and disadvantages of a strategy. √√ 
• Decide on the desired outcome. √√ 
• Consider the impact of the implementation of a strategy in the internal  and external environments of the business. √√ 
• Any other relevant answer related to the steps in evaluating a strategy.

NOTE:

1. Accept steps in any order. 
2. Mark the first FOUR (4) only. (4 x 2) (8) 

2.3.1 Provisions of leave from the scenario 

NOTE: 

1. The answer does not have to be in tabular format. 
2. Do not award marks for the motivation quoted, if  the provision for leave was not mentioned. 
3. Award marks for the provision for leave even if the  quote is incomplete. Max. (6)

2.3.2 Impact of BCEA on PFM 
Positives/Advantages 

• Creates a framework of acceptable employment practices, √ e.g.  legal employment contracts, work hours, leave, √ etc. 
• Promotes fair treatment √ of employees in business. √ 
• The rules and regulations are very specific, √ which clearly guides  the employer how to deal with employment issues. √ 
• Encourages consultation √ between employers and employees. √ 
• Outlines minimum requirements √ that form the basis of  employment contracts. √ 
• Working hours are specified so that the employer √ cannot exploit  employees. √ 
• Employees are permitted to consult labour unions √ in cases  where the BCEA conditions are violated. √ 
• Employees may submit complaints √ to labour inspectors who can  address them. √ 
• Any other relevant answer related to the positive impact of BCEA  on PFM. 

AND/OR 
Negatives/Disadvantages 

• Developing/Drafting a formal/legal employment contract √ may be  time-consuming/costly.√ 
• Businesses may regard employment contracts as  restrictive/negative and may refrain from implementing it, √ which  results in non-compliance/penalties.√ 
• No employer may force an employee to work more than 45 hours  in a week/nine hours in a five-day (or less) work week/eight hours  in a six-day work week √ which may result in low productivity. √ 
• Hiring cheap labour is no longer possible, √ so businesses cannot  exploit workers. √ 
• BCEA forces businesses to comply with many legal  requirements, √ which may increase labour costs. √ 
• Businesses not complying to the Act, may be charged with high  penalties, √ which may affect their cash flow negatively.√ 
• Businesses may consider the provisions of the BCEA as  unimportant, √ and an unnecessary administrative burden that  increase operating costs. √ 
• Any other relevant answer related to the negative impact of BCEA  on PFM. Max. (8)

2.4 Purpose of the Employment Equity Act 

• The Employment Equity Act states that employees who do the same  work (work of equal value) √ must be paid equally (equal pay). √ 
• There should be no discrimination √ on grounds of gender in the  workplace. √ 
• Promotes equal opportunity √ and fair treatment in the workplace.√ 
• Protects employees from victimisation √ if they exercise the rights given  to them by the EEA. √ 
• Provides for employees to refer unresolved disputes √ to the CCMA. √ 
• Any other relevant answer related to the purpose of the Employment  Equity Act. Max. (6) 

2.5 Human Resources Development Strategy  

• Addresses skills shortages √ in the South African workforce.√ 
• Aims at achieving faster economic growth/ higher employment levels √  and reduced levels of poverty. √
• Promotes social development and social justice √ which helps to alleviate  poverty. √
• Develops short term √ and long term workforce skills. √ 
•  Improves the supply √ of skills.√ 
• Increases employee participation √ in lifelong learning. √
•  Any other relevant answer related to the Human Resources Development  Strategy. Max. (6) 

2.6 Challenges and the extent of control over business environment 

NOTE: 

1. Do not award marks for challenges that are not fully  quoted from the scenario.
2. Do not award marks for business environments if it is  not linked to the challenge. 
3. Award marks for the business environments even if the  quote is incomplete. 
4. The extent of control must be linked to the business  environment. 
5. Do not award marks for the extent of control if the  businesses environment is not mentioned. 
6. The order may be different. 
7. The answer does not have to be in tabular format. Max. (9)

2.7 Advantages of intensive strategies  

• Increased market share √ reduces the business's vulnerability to actions of  competitors.√ 
• Increase in sales/income √ and profitability. √
• Improved service delivery √ may improve business image.√
• Businesses may have more control √ over the prices of  products/services. √ 
• Gain loyal customers √ through effective promotion campaigns.√
• Decrease in prices √ may influence customers to buy more products.√
• Regular sales to existing customers √ may increase.√
• Eliminate competitors √ and dominate market prices.√ 
• Enables the business to focus on markets/well-researched quality  products √ that satisfy the needs of customers.√
• Any other relevant answer related to the advantages of intensive strategies. Max. (6) 

2.8 Porter’s Five Forces Model 
2.8.1 Bargaining power of buyers/Buyer power 

• Business must assess how easy it is for its buyers/customers to  drive prices down. √√
• Determine the number of buyers/the importance of each buyer to  the business and the cost of switching to other products. √√ 
• A few powerful buyers are often able to dictate terms to the  business. √√ 
• Buyers buying in bulk can bargain for prices in their favour. √√
• If buyers/customers can do without the business's products they  may have more power to determine the prices and terms of  sale. √√
• Conduct market research to gather more information about its  buyers. √√ 
• Any other relevant answer related to the bargaining power of  buyers/buyer power as a Porter's Five Forces. Sub-max. (4)

2.8.2 Competitive rivalry 

• If competitors have a unique product/service, they have greater  power/impact on the market. √√
• Draw up a competitor's profile of each similar business in the area  to determine its strength √√/Business should determine how many  competitors there are and how influential they are in the  market. √√
• If a business has many competitors with similar products, the  business will have very little power in the market. √√
• Some businesses have the necessary resources to start price  wars and continue selling at a loss until some/all competitors  leave the market. √√ 
• Any other relevant answer related to competitive rivalry as a  Porter's Five Force. Sub-max. (4)
  Max. (8)
  [60] 

BREAKDOWN OF MARKS

QUESTION 3: BUSINESS VENTURES 
3.1 Types of preference shares 

• Participating √ 
• Non-participating √ 
• Non-cumulative √ 
• Cumulative √ 
•  Redeemable √ 
• Non-redeemable √ 
•  Convertible √ 
•  Non-convertible √ 

NOTE: Mark the first THREE (3) only. (3 x 1) (3) 
3.2 Functions of the Johannesburg Securities Exchange Ltd (JSE) 

• Gives opportunities to financial institutions such as insurance companies to  invest their funds in shares. √√ 
• Serves as a barometer/indicator of economic conditions in South Africa. √√
• Keeps investors informed about share prices by publishing the share prices  daily. √√ 
• Acts as a link between investors and public companies. √√ 
• Shares are valued and assessed by experts. √√ 
• Small investors are invited to take part in the economy of the country through  the buying of shares. √√ 
• Venture capital market is made possible. √√ 
• Orderly market for securities serves as a disciplined market for securities. √√ 
• Encourages new investments. √√ 
• Mobilises the funds of insurance companies and other institutions. √√ 
• Raises primary capital. √√ 
• Regulates market for dealing with shares. √√ 
• Plans, researches and advises on investment possibilities. √√ 
• Ensures that the market operates in a transparent manner. √√ 
• Provides protection for investors. √√ 
• Encourages short-term investments. √√ 
• Facilitates electronic trading of shares/STRATE. √√ 
• Any other relevant answer related to the functions of the Johannesburg  Securities Exchange (JSE.) Max. (8) 

3.3 Types of investments 
3.3.1 Shares √√ 
3.3.2 Fixed property √√ 
3.3.3 Unit trusts √√ 
3.3.4 Mutual funds/stokvels √√ (4 x 2) (8)
3.4 Importance/Advantages of insurance 

• Transfer the risk form business/insured √ to an insurance  company/insurer. √
• Transfer of the risk is subject to the terms and conditions √ of the  insurance contract.√
• Protects the business against theft and loss of stock and/or  damages √ caused by natural disasters such as floods, storm damage,  etc. √ 
• The business will be compensated √ for insurable losses, e.g. destruction  of property through fire. √
• Business assets √ e.g. vehicles/equipment/buildings need to be insured  against damage and/or theft. √ 
• Business is protected against the loss of earnings √ e.g. strikes by  employees result in losses worth millions of rands.√ 
• Protects the business against deeds of dishonesty √ by employees. √
• Life insurance can be taken against the life of partners√ in a partnership,  to prevent unexpected loss of capital.√ 
• Should the services of key personnel be lost due to accidents or death, √  the proceeds of an insurance policy can be paid out to the  business/beneficiaries. √ 
• Replacement costs for damaged machinery/equipment are very  high, √ therefore, insurance can reduce/cover these costs. √ 
• Protects businesses from claims made by members of the public √ for  damages that the business is responsible for. √ 
• Protects the business against losses √ due to the death of a debtor. √ 
• Any other relevant answer related to the importance/advantages of  insurance to businesses. Max. (6)

3.5 Form of ownership 
3.5.1 Sole trader/proprietorship √√ (2)
Motivation 
Luke is the only owner of the business and is also liable for all the business  debts.√ (1)
NOTE: Do not award marks for the motivation, if the form of  ownership was incorrectly identified. Max. (3)
3.5.2 Success factors of a sole trader/proprietorship and a private  company

NOTE: 

1. The answer does not have to be in tabular format. 
2. Consider similarities if the sole trader was incorrectly  identified. Max. (12)

3.6 Factors to consider when preparing for a presentation Clear purpose/intentions/objectives √ and main points of the  presentation. √  

• Main aims captured √ in the introduction/opening statement of the  presentation. √ 
• Information presented √ should be relevant and accurate. √ 
• Fully conversant √ with the content/objectives of the presentation. √ 
• Background/diversity/size/pre-knowledge of the audience √ to  determine the appropriate visual aids. √ 
• Prepare a rough draft of the presentation √ with a logical  structure/format with an introduction, body and conclusion. √ 
• The conclusion must summarise the key facts √ and how it relates to  the objectives/shows that all aspects have been addressed. √ 
• Create visual aids/graphics √ that will consolidate the  information/facts to be conveyed to the board of directors. √
• Find out about the venue for the presentation, √ e.g. what equipment  is available/appropriate/availability of generators as backup to load  shedding. √ 
• Consider the time frame√ for presentation, e.g. fifteen minutes  allowed. √ 
• Rehearse √ to ensure a confident presentation/effective use of time  management. √ 
• Prepare for the feedback session, √ by anticipating possible  questions/comments. √ 
•  Any other relevant answer that relate to the factors to be considered  when preparing for a presentation. Max. (8) 

3.7 Situation in which democratic leadership style could be applied in the  workplace 
This leadership style can be used when: 

• Group members are skilled and eager to share their ideas. √√ 
• The leader does not have all the information needed to make a  decision and employees have valuable information to contribute. √√
• Cooperation is needed between a leader and a team. √√ 
• Decisions need to be looked at from several perspectives. √√ 
• Any other relevant answer related to situations in which the democratic  leadership style may be applied in the workplace.
  NOTE: Mark the first TWO (2) only. (2 x 2) (4)

3.8 Impact of autocratic leadership style 
Positives/Advantages 

• Quick decisions can be taken √ without consulting/considering followers/  employees. √ 
• Work gets done √ in time/on schedule. √ 
• Line of command/communication is clear √ as it is top-down/followers  know exactly what to do. √ 
• Direct supervision and strict control √ ensure high quality  products/service.√ 
• Provides strong leadership √ which makes new employees feel confident  and safe. √ 
• Works well in large companies where consultation√ with every employee is impractical.√ 
• Clear guidance can be given √ to low-skilled/inexperienced/new staff. √
• Useful in a crisis/urgent situation, √ e.g. after an accident/meeting tight  deadlines. √ 
• Any other relevant analysis related to a positive/advantages impact of an  autocratic leadership style. 

AND/OR 
Negatives/Disadvantages 

• Leaders and followers may become divided √ and may not agree on  ways to solve problems. √ 
• Workers can be demotivated √ as their opinions/ideas are not  considered. √
• De-motivated workers √ impact negatively on productivity. √ 
• New/Creative/Cost reducing ideas √ may not be used/implemented/never  be considered. √ 
• Followers may feel that they are not valued √ resulting in high  absenteeism and high employee turnover. √ 
• Experienced and highly skilled workers will resist an autocratic  leadership style √ because it results in less growth, participation and  creativity. √ 
• Any other relevant analysis related to a negative/disadvantages impact of  an autocratic leadership style. Max. (8)
  [60] 

BREAKDOWN OF MARKS

QUESTION 4: BUSINESS ROLES 
4.1 Examples of unfair advertising 

• Giving goods deceptive names/False labelling. √ 
• Selling second-hand goods as new goods. √ 
• Exaggerating the merits of the product. √ 
• Using fine print to conceal important information. √ 
• Criticising competitor’s goods. √ 
• Exploitation of children’s lack of understanding. √ 
• Misuse of people with disabilities in advertisements. √ 
• Advertising that encourages violence. √ 
• Advertising goods at a very low price to attract customers but when the  customer reaches the store the item is no longer there/Bait and switch. √ 
• Advertising a product showing additional items, but do not clearly state that  these items are excluded. √ 
• Any other relevant examples of unfair advertising. 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 
4.2 Causes of conflict 

• Lack of proper communication between management and workers. √√
• Ignoring rules/procedures may result in disagreements and conflict. √√
• Management and/or workers may have different personalities/  backgrounds. √√ 
• Different values/levels of knowledge/skills/experience of  managers/workers. √√ 
• Little/no co-operation between internal and/or external  parties/stakeholders. √√ 
• Lack of recognition for good work, e.g. a manager may not show  appreciation for extra hours worked to meet deadlines. √√ 
• Lack of employee development may increase frustration levels as workers  may repeat errors due to a lack of knowledge/skills. √√ 
• Unfair disciplinary procedures, e.g. favouritism/nepotism. √√ 
• Little/no support from management with regard to supplying the necessary  resources. √√ 
• Leadership styles used, e.g. autocratic managers may not consider worker  inputs. √√ 
• Unrealistic deadlines/Heavy workloads lead to stress resulting in  conflict. √√ 
• Lack of agreement on mutual matters, e.g. remuneration/working hours. √√
• Unhealthy competition/Inter-team rivalry may cause workers to lose focus  on team targets. √√ 
• Lack of commitment which may lead to an inability to meet pre-set  targets. √√ 
• Any other relevant answer related to the causes of conflict. Max. (8)

4.3.1 Problem-solving techniques 

NOTE: 

1. The answer does not have to be in tabular format.
2. Do not award marks for the motivation quoted, if the  problem-solving technique were not mentioned.
3.  Award marks for the problem-solving technique even if  the quote is incomplete. Max. (6) 

4.3.2 Advantages of creative thinking in the workplace 

• Better/Unique/Unconventional ideas/solutions √ is generated. √ 
• May give the business a competitive advantage √ if unusual/unique  solutions/ideas/strategies are implemented. √ 
• Complex business problems √ may be solved. √ 
• Productivity increases √ as management/employees may quickly  generate multiple ideas which utilises time and money more  effectively. √ 
• 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. √ 
• Managers/Employees can develop a completely new outlook, √ which  may be applied to any task(s) they may do. √ 
• Leads to more positive attitudes √ as managers/employees feel that  they have contributed towards problem solving. √ 
• Improves motivation √ amongst staff members. √ 
• Managers/Employees have a feeling of great accomplishment √ and  they will not resist/obstruct the process once they solved a problem/  contributed towards the success of the business. √
• Management/employees may keep up √ with fast changing technology. √ 
• Stimulates initiative from employees/managers, √ as they are  continuously pushed out of their comfort zone. √ 
• Creativity may lead to new inventions √ which improves the general  standard of living. √ 
• Any other relevant answer related to the advantages of creative  thinking. Max. (8)

4.4 Positive impact of corporate social responsibility (CSR) on  communities 

• Socio-economic issues are attended to √ which will improve the welfare  of the community. √ 
• Training opportunities in the community increase the possibility √ of  appointments of members of the community. √ 
• Implementing developmental programmes in the community √ improves  entrepreneurial skills of communities. √ 
• Provision of bursaries √ encourages communities to improve their  skills. √ 
• The standard of living of the community √ is uplifted √/quality of life of  communities √ is improved.√ 
• Better educational facilities are established √ in poor communities. √ 
• Improve the health of communities √ by providing medical  infrastructure. √ 
• Provide rehabilitation centres to community members √ who have  addiction problems. √ 
• Any other relevant answer related to a positive impact of CSR in the  community.  Max. (6) 

4.5
4.5.1 Quotation of the responsibilities of employees in promoting  human health and safety in the workplace from the scenario 

•  The management is very proud of the way in which their  workers are taking responsibility for their own safety. √ 
• The workers also report unsafe and unhealthy conditions to the  management. √
  NOTE: Mark the first TWO (2) only. (2 x 1) (2) 

4.5.2 Other responsibilities of employees in promoting human  health and safety in the workplace 

• Co-operate and comply with the rules and procedures √ e.g.  wear prescribed safety clothing. √ 
• Report accidents √ to the employer by the end of the shift. √
• Use prescribed √ safety equipment. √ 
• Take reasonable care √ of their own safety. √ 
• Inform the employer of any illness √ that may affect the ability to  work. √ 
• Any other relevant answer related to the responsibilities of  employees in promoting human health and safety in the  workplace.
  NOTE: Do not award marks for responses quoted in  QUESTION 4.5.1. Max. (6)

4.5.3 Strategies to protect the environment and human health in the  workplace 

• Laws and regulations should be adhered to so that profits are not  generated at the expense of the environment. √√ 
• Pollution and other environmental issues should always be  considered in all business activities, e.g. safe disposal of  waste/dumping of toxic waste √√, etc. 
• Become involved in environmental awareness programs. √√ 
• The environment can be protected by altering production  techniques in favour of cleaner and greener technologies. √√ 
• Water for human consumption should be tested before it is used.  √√ 
• Promote nature conservation by looking after natural  resources. √√ 
• Minimise pollution, by re-using, reducing and recycling. √√ 
• Reduce consumption of goods/services which are  environmentally unfriendly. √√ 
• Register/Engage with recognised institutions/bodies that promote  green peace. √√ 
• Physical working conditions should always be worker friendly,  safe and promote occupational health. √√ 
• Physical working conditions, e.g. adequate lighting/ventilation  should be available and functional. √√ 
• Machines must be serviced/maintained regularly. √√ 
• Educate people about hygiene issues. √√ 
• Encourage employees to do regular health checks. √√ 
• Any other relevant answer related to strategies to protect the  environment and human health in the workplace. Max. (4) 

4.6 Dealing with diversity issues in the workplace 
4.6.1 Language 

• Business may specify that all communications should be in one  specific language only √ and would expect employees to have a  certain level of fluency in that language. √ 
• Provide training √ in the official language of the business. √ 
• Employ an interpreter √ so that everyone can fully understand  what is being said in a meeting. √ 
• All business contracts should be in an easy-to-understand  language √ and should be available in the language of choice for  the relevant parties signing the contract.√ 
• No worker should feel excluded in meetings √ conducted in one  language only. √ 
• Any other relevant answer related to how business could deal  with language as a diversity issue in the workplace. Sub-max. (4)

4.6.2 Age 

• Promotions should not be linked to age, √ but rather to a specific  set of skills. √ 
• A business may not employ children √ aged 15 or younger. √ 
• The ages of permanent workers should vary √ from 18 to 65 to  include all age groups. √ 
• A business may employ a person who is older than the normal  retirement age, √ provided that person is the most suitable  candidate. √ 
• Businesses must encourage older employees to help young  employees √ to develop their potential. √ 
• Young employees must be advised to respect and learn √ from  older employees. √
• The business should encourage employees to be sensitive √ to  different perspectives of various age groups.√ 
• Any other relevant answer related to how businesses could deal  with age as a diversity issue in the workplace. Sub-max. (4)
  Max. (8) 

4.7 Handling conflict in the workplace 

• Acknowledge that there is conflict in the workplace. √√ 
• Identify the cause of the conflict. √√ 
• Pre-negotiations may be arranged where workers/complainants will be  allowed to state their case/views separately. √√ 
• A time and place are arranged for negotiations where all employees  involved are present. √√ 
• Arrange a meeting between conflicting employers/employees. √√ 
• Make intentions for intervention clear so that parties involved may feel at  ease. √√ 
• Each party has the opportunity to express his/her own opinions/feelings/  Conflicting parties may recognise that their views are different. √√ 
• Analyse the cause(s) of conflict by breaking it down into different  parts/Evaluate the situation objectively. √√ 
• Blame shifting should be avoided and a joint effort should be made. √√ 
• Direct conflicting parties towards finding/focusing on solutions. √√
• Devise/Brainstorm possible ways of resolving the conflict.√√ 
• Conflicting parties agree on criteria to evaluate the alternatives.√√
• The best possible solution(s) is/are selected and implemented.√√
• Parties must agree to on the best solution. √√ 
• Evaluate/Follow up on the implementation of the solution(s). √√ 
• Monitor progress to ensure that the conflict has been resolved. √√
• Expertise on handling conflict maybe sourced from outside the  business. √√ 
• Any other relevant answer related to how businesses should handle  conflict in the workplace. 

NOTE: If problem-solving steps do not demonstrate the handling of  conflict (explanation), award a maximum of FOUR (4) marks. Max. (8) 
[60]

QUESTION 5: BUSINESS OPERATIONS
5.1 Methods of salary determination 

• Piecemeal √ 
• Time-related √
  NOTE: Mark the first TWO (2) only.

BREAKDOWN OF MARKS 

5.2 Placement procedure  (2 x 1) (2) 

• Businesses should outline the specific responsibilities of the new  position, √ including the expectations/skills required for this position. √ 
• Determine the successful candidate’s  strengths/weaknesses/interests/skills √ by subjecting him/her to a range of  psychometric tests. √ 
• Determine the relationship between the position √ and the competencies  of the new candidate. √ 
• Any other relevant answer related to the placement procedure that  businesses should follow to place a new employee. Max. (6) 

5.3.1 Quotation of Maggie’s role during the interview 

• During the interview Maggie carefully listened to the questions  before responding to them. √ 
• She made eye contact with the interviewer √ 
• and asked clarity seeking questions. √ 

NOTE: Mark the first THREE (3) only. (3 x 1) (3)

5.3.2 Role of the interviewer during the interview 

• Allocate the same amount of time √ to each candidate. √ 
• Introduce members of the interviewing panel √ to each  candidate/interviewee. √ 
• Make the interviewee √ feel at ease. √ 
• Explain the purpose of the interview √ to the panel and the  interviewee. √ 
• Record interviewees' responses √ for future reference. √ 
• Do not misinform/mislead√ the interviewee. √ 
• Avoid discriminatory/controversial types of questions, √ e.g. asking a  female candidate about family planning/having children. √ 
• Provide an opportunity for the interviewee √ to ask questions. √ 
• Close the interview by thanking the interviewee √ for attending the  interview. √ 
• Any other relevant answer related to the role of the interviewer during  the interview. Max. (8) 

5.4 Difference between job description and job specification 

NOTE: 

1. The answer does not have to be in tabular format but  differences must be clear.
2.  Allocate a maximum of FOUR (4) marks if distinction is  not clear./Mark either job description or job  specification only. Max. (8)

5.5 Contribution of the quality indicators of the financial function to the  success of a business 

•  Obtain capital √ from the most suitable/available/reliable sources. √ 
• Negotiate better interest rates √ in order to keep financial cost down.√ 
• Draw up budgets √ to ensure sufficient application of monetary resources.√ 
• Keep financial records up to date√ to ensure timely/accurate tax  payments.√ 
• Analyse strategies √ to increase profitability.√ 
• Invest surplus funds √ to create sources of passive income. √ 
• Implement financial control measures/systems √ to prevent fraud. √ 
• Implement credit granting/debt collecting policies √ to monitor cash flow. √ 
• Draw up accurate √ financial statements timeously/regularly. √ 
• Accurately analyse and interpret √ financial information. √ 
• Invest in strategies √ that will assist the business to remain profitable. √ 
• Avoid over/under-capitalisation √ so that financial resources will be utilised  effectively.√ 
• Any other relevant answer related to the contribution of the quality  indicators of the financial function to the success of a business. Max. (6) 

5.6.1 Total quality management 

NOTE: 

1. Mark the first THREE (3) only.
2. The answer does not have to be in tabular format. 
3. Do not award marks for the motivation quoted, if  the TQM elements were not mentioned. 
4. Award marks for the TQM element even if the  quote is incomplete. Max. (9)

5.6.2 Benefits of a good quality management system 

• Effective customer service will be rendered, resulting in increased  customer satisfaction.√√ 
• Time and resources are used efficiently. √√ 
• Productivity increase through proper time management and using  high quality resources. √√
• Products and services are constantly improved, resulting in  greater customer satisfaction. √√
• Vision and mission may be achieved. √√ 
• The business may achieve a competitive advantage over its  competitors. √√ 
• Continuous training will continuously improve the quality of  employees’ skills and knowledge. √√ 
• Employers and employees will have a healthy working relationship  which results in happy workers. √√ 
• Increased market share and profitability. √√ 
• Any other relevant answer related to the benefits of a good quality  control system. Max. (6) 

5.7 Negative impact if TQM is poorly implemented 

Related Items

• Setting unrealistic deadlines √ that may not be achieved. √ 
• Employees may not be adequately trained √ resulting in poor quality  products. √ 
• Decline in productivity, √ because of stoppages. √ 
• Businesses may not be able to make necessary changes √ to satisfy the  needs of customers. √ 
• The reputation of the business √ may suffer because of faulty goods. √ 
• Customers will have many alternatives to choose from √ and the impact  could be devastating to businesses. √ 
• Investors might withdraw investment, √ if there is a decline in profits. √ 
• Bad publicity √ due to poor quality products supplied. √
• Decline in sales, √ as returns from unhappy customers' increase. √
• High staff turnover, √ because of poor skills development. √ 
• Undocumented quality control systems/processes √ could result in error or  deviations from pre-set quality standards. √ 
• Any other relevant answer related to the negative impact on businesses if  TQM is poorly implemented. Max. (6)

5.8 Impact of continuous improvement to processes and systems on large  businesses 
Positives/Advantages 

• Large businesses have more resources √ to check on quality performance  in each unit/business function. √ 
• Enough capital resources are available for new equipment required √ to  stay relevant to new developments. √ 
• Large businesses have a person dedicated √ to the improvement of  systems and processes. √ 
• Willing to take risk on/try new processes and systems √ because they are  able to absorb the impact of losing money. √ 
• They can afford to use the services of the quality circles √ to be  competitive.√ 
• Large businesses use the PDCA model √ to continuously  plan/do/check/act on new/revised processes and systems. √ 
• Any other relevant answer related to the positive impact of continuous  improvement to processes and systems on large businesses. 

AND/OR 
Negatives/Disadvantages 

• Large scale manufacturing √ can complicate quality control. √ 
• Systems and processes take time and effort to be implemented in large  businesses √ as communication/buy-in/distrust may delay the  implementation process. √ 
• Face the risk of changing parts of the business √ that are actually working  well. √ 
• Not all negative feedback from employees and customers is going to be  accurate, √ which may result in incorrect/unnecessary changes to systems  and processes. √ 
• Any other relevant answer related to the negative impact of continuous  improvement to processes and systems on large businesses. Max. (6)
  [60] 

BREAKDOWN OF MARKS

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENTS 
6.1 Pillars of BBBEE 
6.1.1 Enterprise and supplier development (ESD) √√ 
6.1.2 Socio-economic development/social responsibility √√ 
6.1.3 Ownership √√ 
6.1.4 Skills development √√ (4 x 2) (8) 
6.2 Difference between market development and product development 

NOTE: 

1. The answer does not have to be in a tabular format but  the distinction must be clear.
2. Award a maximum of FOUR (4) marks if the distinction  is not clear./Mark either market development or product  development only. Max. (8) 

BUSINESS VENTURE 
6.3 Forms of ownership 
6.3.1 Public company √√ 
6.3.2 Personal liability company √√ 
6.3.3 Partnership √√ (3 x 2) (6)
6.4 Role of personal attitude in successful leadership 

• Positive attitude √ releases leadership potential. √ 
• A leader's good/bad attitude √ can influence the success/failure of the  business. √ 
• Leaders must know their strengths and weaknesses √ to apply their  leadership style effectively. √ 
• Great leaders understand that the right attitude √ will set the right  atmosphere. √ 
• Leaders attitude can influence employees/teams' thoughts √ and  behaviour. √ 
• Leaders should model the behaviour √ that they want to see in team  members. √ 
• Leaders must know/understand their teams √ to be able to allocate  tasks/roles effectively. √ 
• Enthusiasm √ produces confidence in a leader. √ 
• A positive attitude is critical for good leadership √ because good leaders  will stay with the task regardless of difficulties/challenges. √ 
• Successful employees and leaders have a constant desire to work √ and  achieve personal and professional success. √ 
• Leaders with a positive attitude know that there is always more to  learn √ and space to grow.√ 
• Any other relevant answer related to the role of personal attitude in  successful leadership. Max. (8) 

BUSINESS ROLES 
6.5.1 Quotation of the characteristics of a successful team from the  scenario 

• The workers have good interpersonal relationships √ 
• and show mutual respect towards each other despite their  differences. √ 
• The workers support and trust each other √ 
• and have open discussions that lead to effective solutions of  problems.√ 

NOTE: Mark the first FOUR (4) only. (4 x 1) (4)
6.5.2 Benefits of having a diverse workforce 

• Workforce diversity improves the ability of a business √ to solve  problems/innovate/cultivate diverse markets. √ 
• Employees value each other's diversity √ and learn to  connect/communicate across lines of difference.√ 
• Diversity in the workforce improves √ morale/motivation. √ 
• Employees demonstrate greater loyalty to the business √  because they feel respected/accepted/understood. √ 
• A diversified workforce can give businesses a competitive  advantage √ as they can render better services. √ 
• Being respectful of differences/demonstrating diversity √ makes  good business sense/improves profitability. √
• Diverse businesses ensure that its policies/practices √ empower  every employee to perform at his/her full potential. √ 
• Customers increasingly evaluate businesses √ on how they  manage diversity in the workplace. √ 
• Employees from different backgrounds √ can bring different  perspectives to the business. √ 
• A diversified workforce stimulates debate √ on new and improved  ways of getting things done. √ 
• Employees represent various groups √ and are therefore better  able to recognise customer needs and satisfy consumers. √ 
• Businesses with a diverse workforce are more likely to have a  good public image √ and attract more customers. √ 
• Any other relevant answer related to the benefits of having a  diverse workforce. Max. (6) 

6.6 Ways to promote cultural rights in the workplace  

• Provide the environment in which employees are free to use their own  language when interacting with others during their free time. √√ 
• Encourage employees to participate in cultural activities. √√ 
• Allow employees to provide solutions to challenges from their own cultural  perspective. √√ 
• Regular cultural information sessions will help employees to respect each  other's culture in the workplace. √√ 
• Make provision for different cultures, such as food served in the  canteen/entertainment at staff functions. √√
• Employ people from various cultural backgrounds. √√ 
• Employees should be trained on cultural tolerance. √√ 
• Any other relevant answer related to ways in which businesses could  promote cultural rights in the workplace. Max. (6)

BUSINESS OPERATIONS 
6.7 Importance of quality circles 

• Solve problems related to quality and implement improvements. √√ 
• Investigate problems and suggest solutions to management. √√ 
• Ensure that there is no duplication of activities/tasks in the workplace. √√
• Make suggestions for improving systems and processes in the workplace. √√
• Improve the quality of products/services/productivity through regular reviews  of quality processes. √√ 
• Monitor/Reinforce strategies to improve the smooth running of business  operations. √√ 
• Reduce costs of redundancy in the long run. √√ 
• Increase employees' morale/motivation. √√
• Quality circles discuss ways of improving the quality of work/ workmanship. √√ 
• Contribute towards the improvement and development of the  organisation. √√ 
• Reduce costs/wasteful efforts in the long run. √√
• Increase the demand for products/services of the business. √√ 
• Create harmony√ and high performance in the workplace. √ 
• Build a healthy workplace relationship between the employer and  employee. √√ 
• Improve employees’ loyalty and commitment to the business and its  goals. √√ 
• Improve employees’ communication at all levels of the business. √√ 
• Develop a positive attitude/sense of involvement in decision making  processes of the services offered. √√ 
• Any other relevant answer related to the importance of quality circles in  TQM. Max. (4) 

6.8 Differences between quality performance and quality management 

Max. (4) 
NOTE:

1. The answer does not have to be in a tabular format but  the distinction must be clear. 
2. Award a maximum of TWO (2) marks if the distinction  is not clear./Mark either quality performance or quality  management only.

6.9 Impact of TQM on the reduction of the cost of quality 

• Introduce quality circles to discuss ways of improving the quality of  work/workman-ship. √√
• Schedule activities to eliminate duplication of tasks. √√ 
• Share responsibility for quality output amongst management and  workers. √√ 
• Train employees at all levels, so that everyone understands their role in  quality management. √√ 
• Develop work systems that empower employees to find new ways of  improving quality. √√ 
• Work closely with suppliers to improve the quality of raw  materials/inputs. √√ 
• Improve communication about quality challenges/deviations, so that  everyone can learn from experience. √√ 
• Reduce investment on expensive, but ineffective inspection procedures in  the production process. √√ 
• Implement pro-active maintenance programmes for equipment/machinery  to reduce/eliminate breakdowns. √√ 
• Any other relevant answer related to the impact of TQM on the reduction  of the cost of quality. Max. (6)
  [60] 

BREAKDOWN OF MARKS 

TOTAL SECTION B: 180
SECTION C
Mark the first TWO (2) questions only. 
QUESTION 7: BUSINESS ENVIRONMENTS (LEGISLATION) 
7.1 Introduction 

• The Compensation for Occupational Injuries and Diseases Amendment  Act (COIDA), 1997 (Act 61 of 1997) was introduced to protect the health  and safety of employees in the workplace. √ 
• COIDA provides guidelines for the compensation of employees who are  disabled because of injuries sustained/diseases contracted at work. √  - It also provides for compensation if a worker dies due to a work related injury/ disease. √ 
•  Injuries and diseases for which claims can be made are specified  in the Act. √ 
•  Any other relevant introduction related to COIDA.
  (Any 2 x 1) (2) 

7.2 Purpose of COIDA 

• COIDA applies to all casual and full-time workers who become  ill/injured/disabled/killed √ due to a workplace accident/disease. √ 
• It excludes workers √ who are guilty of willful misconduct/workers  working outside South Africa for at least twelve months/members of  the SA Defence Force/Police services. √ 
• It provides for the establishment of a Compensation Board √ whose  function is to advise the Minister of Labour on the  application/provisions of COIDA. √ 
• Medical expenses/Other types of compensation are paid to employees  and/or their families √ depending on the type/severity of the injuries. √ 
• Employers have to pay a monthly amount to the  Compensation Fund √ depending on the number of employees/the  level of risk they are exposed to. √ 
• Employees must be a bona-fide employee of the company √ and the  injury must have been caused while carrying out duties. √ 
• Provides compensation for employees/families for injuries or death √  occur while carrying out their duties. √ 
• Any other relevant answer related to the purpose of COIDA. Max. (10)

7.3 Penalties/Consequences for non-compliance with COIDA 

• Businesses can be fined √ for refusing to lodge the claim/contravening the  Act. √ 
• Businesses can be forced to make large payments √ if it did not take the  necessary precautions according to the Act. √ 
• Businesses can be forced to pay any recovery costs √ required by the  Compensation Fund. √ 
•  The employee may take the business to court √ for not registering him/her  with the Commissioner of the Compensation Fund. √ 
• If the business is found guilty of any misconduct, √ they will have to pay  large penalties/face imprisonment. √ 
• Any other relevant answer related to penalties for non-compliance with  COIDA. Max. (8) 

7.4 Impact of COIDA on businesses 
Positives/Advantages 

• Promotes safety √ in the workplace. √ 
• Creates a framework √ for acceptable employment practices/safety  regulations. √ 
• Supply administrative guidelines/mechanisms √ for dealing  with/processing claims. √ 
• Eliminates time and costs spent √ on lengthy civil court proceedings. √ 
• Employers are protected from financial burden should an accident occur  in the workplace √ provided that the employer was not negligent. √ 
• Claiming processes √ are relatively simple. √ 
• Makes businesses more socially responsible √ as they cannot just employ  workers at random in dangerous working conditions. √ 
• Workers are treated with dignity and respect √ as businesses view them  as valuable assets and not just as workers. √ 
• Covers all employees at the workplace √ if both parties meet all the  necessary safety provisions of the Act. √ 
• Employees do not contribute √ towards this fund. √ 
• Employees are compensated financially for any injury/disability √ resulting  from performing their duties at their workplace. √ 
• In the event of the death of an employee as a result of a work-related  accident/ disease, √ his/her dependent(s) will receive financial support. √ - Employees receive medical assistance √ provided there is no other  medical assistance option. √/Cannot claim medical assistance from the  fund √ and medical aid. √ 
• Any compensation to an employee/the family √ is exempt from income  tax. √ 
• Any other relevant answer related to the positive impact/advantages of  COIDA on businesses. 

AND/OR
Negatives/Disadvantages 

• Claiming processes/procedures √ can be time consuming.√ 
• Processes/Procedures required by this Act may be costly √ as paperwork  places an extra administrative burden on businesses. √ 
• Employers have to register all their workers/make annual contributions to  COIDA, √ which may result in cash flow problems. √ 
• Employers may be forced to pay heavy penalties √ if they are found guilty  of negligence/not enforcing safety measures. √ 
• Workers who are temporarily/permanently employed in foreign  countries √ are not covered. √ 
• Domestic/Military workers √ are not covered. √ 
• Any other relevant answer related to the negative impact/disadvantages of COIDA on businesses. Max. (14) 

7.5 Compliance to COIDA 

• Businesses should provide a healthy/safe working  environment. √√ 
• They should register with the Compensation Commissioner and  provide the particulars of the business. √√ 
• Must keep records of employees' income and details of work for  four years. √√ 
• Obliged to report all incidents causing death/injury/illness of  employees. √√ 
• Businesses should submit returns of earnings by no later than  1 March annually. √√ 
• Levies must be paid to the Compensation Fund. √√ 
• Ensure that the premises/equipment/machinery is in good working  condition. √√ 
• Should allow regular assessment of the workplace by inspectors  in order to determine the level of risk their employees are  exposed to. √√ 
• Employers may not make deductions for COIDA from employees'  remuneration packages. √√ 
• Businesses must ensure that claims are lodged within twelve  months of the date of the accident. √√ 
• Any other relevant answer related to the ways in which businesses  can comply with COIDA. Max. (14) 

7.6 Conclusion 

• Good progress has been made as businesses are now more socially  responsible in improving safety measures/working conditions/being  responsible for workers and their dependents. √√ 
• Workers in some industries are being compensated for contracting  diseases such as tuberculosis, silicosis, √√ etc. 
• If death occurs, families may benefit as the deceased worker may be  substituted by another family member in the same industry. √√ 
• Any other relevant conclusion related to COIDA. (Any 1 x 2) (2) 
  [40]

QUESTION 7: BREAKDOWN OF MARKS 

*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. 

QUESTION 8: BUSINESS VENTURES 
8.1 Introduction 

• Insurance is a contract between a person/business/insured requiring  insurance cover and the insurance company/insurer bearing the financial  risk. √ 
• The law requires businesses to contribute to compulsory insurance on  behalf of employees. √ 
• The purpose of insurance is to indemnify/cover the insured against certain  kinds of insurable risks. √ 
• The purpose of a verbal presentation is to exchange information as it  involves speaking and listening for both the presenter and the  audience/directors. √
• When responding to questions/remarks, the presenter should not be  aggressive/defensive. √ 
• Any other relevant introduction related to insurance and responding to  feedback. (Any 2 x 1) (2)

8.2 Differences between compulsory and non-compulsory insurance 

NOTE: 

1. The answer does not have to be in tabular format but  differences must be clear.
2. Allocate a maximum of FOUR (4) marks if distinction is  not clear./Mark either compulsory or non-compulsory  insurance only. Max. (8) 

8.3 Types of compulsory insurance  
8.3.1 Unemployment Insurance Fund (UIF) √√ 

• The UIF provides benefits to workers who have been working √  and become unemployed for various reasons. √ 
• Businesses contribute 1% of basic wages towards UIF, √  therefore reducing the expense of providing UIF benefits  themselves. √
• Employees contribute 1% √ of their basic wage to UIF. √ 
• The contribution of businesses towards UIF √ increases the  amount paid out to employees that become unemployed. √ 
• All employees who work at least 24 hours per month √ are  required to be registered for UIF/contribute to the UIF. √ 
• It is an affordable contribution that makes it possible for  businesses √ to appoint substitute workers in some instances. √ 
• The business cannot be held responsible for unemployment  cover √ as the UIF pays out to contributors directly/dependants  of deceased contributors. √ 
• Businesses are compelled to register their employees with the  fund √ and to pay contributions to the fund. √ 
• Any other relevant answer related to UIF as a compulsory  insurance.
  Identification (2)
  Explanation  (4)
  Sub-max. (6)

8.3.2 Road Accident Fund (RAF)/Road Accident Benefit Scheme  (RABS) √√ 

• RAF/RABS insures road-users against the negligence √ of other  road users. √ 
• The RAF/RABS provides compulsory cover for all road users in  South Africa, √ which include South African businesses. √
• Drivers of business vehicles are indemnified √ against claims by  persons injured in vehicle accidents. √ 
• RAF/RABS is funded by a levy √ on the sale of  fuel/diesel/petrol. √ 
• The amount that can be claimed for loss of income √ is limited  by legislation. √ 
• The next of kin of workers/breadwinners who are injured/killed in  road accidents, √ may claim directly from RAF/RABS. √ 
• Injured parties and negligent drivers √ are both covered by  RAF/RABS.√ 
• The injured party will be compensated, √ irrespective of whether  the negligent driver is rich/poor/insured/uninsured.√ 
• RABS aims to provide a benefit scheme √ that is  reasonable/equitable/affordable/sustainable, √ etc. 
• RABS aims to simplify/speed up the claims process √ as victims  of road accidents no longer have to prove who caused the  accident. √ 
• RABS enables road accident victims speedy access to medical  care √ as delays due to the investigation into accidents has  been minimised. √ 
• Any other relevant answer related to RAF/RABS as a  compulsory insurance.
  Identification (2)
  Explanation (4)
  Sub-max. (6)
  NOTE: Mark the first TWO (2) only.  (2 x 6) (12)

8.4 Visual aids 
8.4.1 PowerPoint Presentation 
Positives/Advantages 

• Graphic programmes have the capacity to convey ideas √  and support what the presenter says. √ 
• Easy to combine √ with sound/video clips. √ 
• Simple/Less cluttered slides √ may capture the interest of  the audience. √ 
• Video clips can provide variety √ and capture the attention  of the audience. √ 
• Variations of colour/background/sound immediately  capture the attention of the audience √ and retain their  interest throughout the presentation. √ 
• Slides should only be used √ where they can enhance the  facts or summarise information. √ 
• PowerPoint slides can help to convey a large amount of  facts √ in a short time. √ 
• Any other relevant answer related to the positive impact of  a PowerPoint presentation. 

AND/OR 
Negatives/Disadvantages 

• Unprofessional handling of the data projector/PowerPoint  presentation material √ may lead to irritation/may result in  the audience losing interest.√ 
• Less effective √ to people with visual impairments.√ 
• Simply reading off the slides √ makes a presentation  boring/meaningless.√ 
• Unable to show slides √ without electricity/data projector.√ 
• Any other relevant answer related to the negative impact  of PowerPoint presentation. Sub-max. (8)

8.4.2 Hand-outs 
Positives/Advantages 

• Meaningful hand-outs may be handed out at the start of the  presentation √ to attract attention. √ 
• Notes/Hard copies of the slide presentation can be  distributed at the end of the presentation √ as a reminder of  the key facts of the presentation. √ 
• Extra information, e.g. contact details/price lists √ may be handed out √ to promote the services of the business. √ 
• Useful information for improving the next presentation may  be obtained, √ when the audience completes feedback  questionnaires after the presentation.
• Any other relevant answer related to the positive impact of  hand-outs. 

AND/OR 
Negatives/Disadvantages 

• Hand-outs cannot be combined with audio material, √ so it  only focuses on the visual aspects of support material. √ 
• Handing out material at the start of the presentation √ may  distract the audience. √ 
• Any other relevant answer related to the negative impact of  hand-outs. Sub-max. (8)
  Max. (16) 

8.5 Ways to respond to feedback in a professional manner 

• Ms Witbooi must stand up throughout the feedback session. √√
• Be polite, confident and courteous/humorous. √√ 
• Listen and then respond. √√ 
• Make sure that you understand the question/s before responding. √√
• Acknowledge good questions. √√ 
• Rephrase questions if uncertain. √√ 
• Do not get involved in a debate. √√ 
• Do not avoid the question. If you do not know the answer, refer the  question to the audience or the employees √√ /Rectify if incorrect answers  are given. √√ 
• Address the whole audience and not only the person asking the  question. √√ 
• Provide feedback as soon as possible after the observed event. √√ 
• Be direct, honest, sincere. √√ 
• Use simple language and support what you say with an example/keep the  answer short and to the point. √√ 
• Presenter must encourage questions from the audience. √√ 
• Do not allow any one member of the audience to dominate the  discussion. √√ 
• Note/write down the questions asked to be able to respond correctly. √√
• Ms Witbooi should address questions in an orderly manner. √√ 
• Any other relevant answer related to how Ms Witbooi may respond to  feedback in a professional manner. Max. (10) 

8.6 Conclusion 

• The insurance agreement should take into consideration the risks  applicable to each situation. √√ 
• Compulsory insurance reduces the financial risk of businesses. √√
• Effective presentation of business information is one of the key elements of  communicating with various stakeholders. √√ 
• A good presentation promotes the image of the business/owner/management. √√ 
• Professional behaviour during a presentation/feedback/questions session  should contribute to the success of the presentation. √√
• Any other relevant conclusion related to insurance, visual aids and  responding to feedback. (Any 1 x 2) (2)
  [40]

QUESTION 8: BREAKDOWN OF MARK ALLOCATION 

*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. 

QUESTION 9: BUSINESS ROLES 
9.1 Introduction 

• Ethical behaviour and business practice are expected from every  employee in the business. √ 
• Ethical and professional behaviour means that the highest legal and moral  standards are upheld when dealing with stakeholders. √ 
• Businesses that adopt professional, responsible and ethical business  practices will remain profitable/sustainable over a long period of time. √
• Any other relevant introduction related to ethical and professional business  practices.  (Any 2 x1) (2)

9.2 Differences between professional behaviour and ethical behaviour 

NOTE:

1. The answer does not have to be in tabular format but  differences must be clear. 
2. Allocate a maximum of SIX (6) marks if distinction  is not clear./Mark either professional behaviour or  ethical behaviour only. Max. (12) 

9.3 King Code principles 
Transparency 

• Regular audits should be done √ to determine the effectiveness of the  business.√
• Auditing and other reports √ must be accurate/available to  shareholders/employees. √
• Business deals should be conducted openly √ so that there is no hint/sign  of dishonesty/corruption. √
• Staffing and other processes √ should be open and transparent. √
• Employees/Shareholders/Directors should be aware √ of the employment  policies of the business. √ 
• Any other relevant application of transparency as a King Code principle. Sub-max. (6)

Accountability 

• There must be regular communication √ between management and the  stakeholders like shareholders. √
• Company should appoint internal and external auditors √ to audit financial  statements. √ 
• Businesses should be accountable √ for their decisions and actions. √
• Business should present annual report √ to shareholders at the Annual  General Meeting (AGM). √
• Top management should ensure that all other levels of management are  clear about their roles √ and responsibilities to improve accountability. √
• The board should ensure that the company's ethics √ are effectively  implemented. √ 
• Any other relevant application of accountability as a King Code principle. Sub-max. (6) Max. (12) 

9.4 Ways to conduct business professionally, responsibly, ethically and  effective 

• Businesses should not start other business ventures at the expense of  others. √√
• They should pay fair wages. √√ 
• All employees should be treated equally. √√ 
• Appoint honest/trustworthy accountants with a good reputation. √√
• Staffing and other processes should be open and transparent. √√
• Draw up a code of ethics. √√ 
• Managers must set the tone for professional/responsible/ethical  behaviour. √√ 
• There must be adequate internal control systems in place. √√ 
• There should be honesty in all relationships/transactions in the  business. √√ 
• Employees should understand ethical business practices through effective  communication/training. √√ 
• Seminars on business ethics should be held for managers and the  employees to help them understand the importance of the ethical work  culture of the business. √√ 
• Management must consider the impact of their decisions/actions on all  stakeholders. √√ 
• Regulations applicable to environmental protection should be taken  seriously. √√ 
• They should charge fair prices in rural areas. √√ 
• Any other relevant recommendation related to ways in which businesses  should conduct business professionally, responsibly and ethically. Max. (14)

9.5 Unethical business practices 
9.5.1 Abuse of work time 

• Businesses should speak directly to those employees who abuse  work time. √√ 
• Businesses should monitor employees to ensure that tasks are  completed. √√ 
• Structure working hours in such a way that employees have  free/flexible time for personal matters. √√ 
• Create a culture of responsibility/strengthen team spirit in order  for all employees to feel responsible for what has to be  achieved. √√ 
• Any other relevant answer related to strategies to deal with  pricing of goods in rural areas. Sub-max. (4) 

9.5.2 Pricing of goods in rural areas 

• A business may lobby with other businesses in the area to  convince government to improve infrastructure in the rural  area. √√ 
• Charge fair/market related prices for goods and services. √√ 
• Avoid unethical business practices to attract customer loyalty. √√ 
• Investigate cost-effective ways of transporting products./Hire a  large truck to combine deliveries to shop-owners in the same  area. √√ 
• Work together with suppliers to share delivery costs to remote  rural areas. √√ 
• Any other relevant answer related to strategies to deal with  pricing of goods in rural areas. Sub-max. (4)
  Max. (8) 

9.6 Conclusion 

• A business code on ethics and conduct should improve relationships and  eliminate unethical business practices. √√ 
• Employees who do not adhere to a code of ethics and conduct should be  disciplined. √√ 
• Businesses can make use of good corporate governance to address  issues that challenge ethical and professional behaviour. √√ 
• Any other relevant conclusion related to ethical and professional  business practices. (Any 1 x 2) (2)
  [40]

QUESTION 9: BREAKDOWN OF MARK ALLOCATION 

*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. 

QUESTION 10: BUSINESS OPERATIONS 
10.1 Introduction 

• Employers and employees should adhere to the terms and conditions of  the employment contract. √ 
• The aim of induction is to introduce the new employee to the job/the  new environment. √ 
•  Induction is the process of introducing new employees to a  business/work environment. √ 
• A good induction programme will enable the new employee to settle in  quickly. √
• Businesses should ensure that induction is done before the employee  starts in his/her new position. √ 
• Any other relevant introduction related to employment contract, benefits and induction (Any 2 x 1) (2)

10.2 Legal requirements of an employment contract 

• Employment contract is an agreement between the employer and the  new employee and is legally binding. √√ 
• Employer and employee must agree to any changes to the contract. √√
• Aspects of the employment contract can be renegotiated during the  course of employment. √√ 
• No party may unilaterally change aspects of the employment contract.√√ 
• BBF and the new employee must both sign the contract. √√ 
• The employment contract should include a code of conduct and code of ethics. √√ 
• BBF must explain the terms and conditions of the employment contract  to the employee. √√ 
• It may not contain any requirements that are in conflict with the  BCEA. √√ 
• Conditions of employment/duties/responsibilities of the employees must  be stipulated clearly. √√ 
• The remuneration package/including benefits must be clearly  indicated. √√ 
• All business policies, procedures and disciplinary codes/rules can form  part of the employment contract. √√ 
• The employer must allow the employee to thoroughly read through the  contract before it is signed. √√ 
• Any other relevant answer related to the legal requirements of the  employment contract.  Max. (12) 

10.3 Impact of fringe benefits on businesses 
Positives/Advantages 

• Attractive fringe benefit packages √ may result in higher employee  retention/reduces employee turnover.√ 
• Attracts qualified/skilled/experienced employees √ who may positively  contribute towards the business goals/objectives.√ 
• It increases employee satisfaction/loyalty√ as they may be willing to go  the extra mile.√ 
• Improves productivity √ resulting in higher profitability. √ 
• Businesses save money √ as benefits are tax deductible. √ 
• Fringe benefits can be used as leverage √ for salary negotiations. √ 
• Any other relevant answer related to the positive impact of fringe benefits  on businesses.  

AND/OR
Negatives/Disadvantages 

• Fringe benefits are additional costs √ that may result in cash flow  problems. √ 
• Administrative costs increase √ as benefits need to be correctly  recorded for tax purposes. √ 
• Decreases business profits, √ as incentive/package/remuneration costs  are higher.√ 
• It can create conflict/lead to corruption √ if allocated unfairly. √ 
• Workers only stay with the business for fringe benefits, √ and may not be  committed/loyal to the tasks/business. √ 
• Businesses who offer employees different benefit plans may create  resentment √ to those who receive fewer benefits resulting in lower  productivity.√ 
• Businesses who cannot offer fringe benefits √ fail to attract skilled  workers. √ 
• Businesses have to pay advisors/attorneys √ to help them create benefit  plans that comply with legislation. √ 
•  Errors in benefit plans √ may lead to costly lawsuits/regulatory fines. √
• Any other relevant answer related to the negative impact of fringe benefits  on businesses. Max. (12) 

10.4 Purpose of induction 

• Introduce new employees to management/colleagues √ to establish  relationships with fellow colleagues at different levels. √ 
• Create opportunities for new employees √ to experience/explore different  departments. √ 
• Explain safety regulations and rules, √ so that new employees will  understand their role/responsibilities in this regard. √ 
• Communicate information √ about the products/services of Blue Bay  Fisheries. √ 
• Allow new employees the opportunity to ask questions √ that will put them  at ease/reduce insecurity/anxiety/fear. √ 
• Make new employees feel welcome √ by introducing them to their  physical work space.√ 
• Give new employees a tour/information √ about the layout of the  building/office. √ 
• Improve skills √ through in-service training. √ 
• Familiarise new employees√ with the organisational structure/their  supervisors. √ 
• Ensure that employees understand their roles/responsibilities √ so that  they will be more efficient/productive. √ 
• Communicate business policies √ regarding ethical/professional  conduct/procedures/employment contract/conditions of employment, √  etc.
• Any other relevant answer related to the purpose of induction. Max. (10)

10.5 Benefits of induction 

• Increases quality of performance/productivity. √√ 
• Allows new employees to settle in quickly and work effectively. √√ 
• Ensures that new employees understand rules and restrictions in the  business. √√ 
• The results obtained during the induction process provide a base for  focused training. √√ 
• Minimises the need for on-going training and development. √√ 
• New employees may establish relationships with fellow employees at  different levels. √√ 
• Employees will be familiar with organisational structures, e.g. who are  their supervisors/low level managers. √√ 
• Opportunities are created for new employees to experience/explore  different departments. √√ 
• New employees will understand their role/responsibilities concerning  safety regulations and rules. √√
• New employees will know the layout of the  building/factory/offices/where everything is, which saves production  time. √√ 
• Learn more about the business so that new employees understand  their roles/responsibilities in order to be more efficient. √√
• Make new employees feel at ease in the workplace, which reduces  anxiety/insecurity/fear. √√ 
• Company policies are communicated, regarding conduct and  procedures/safety and security/employment contract/conditions of  employment/working hours/ leave. √√ 
• Realistic expectations for new employees as well as the business are  created. √√ 
• New employees may feel part of the team resulting in positive morale  and motivation. √√ 
• Employees may have a better understanding of business policies  regarding ethical/professional conduct/procedures/CSR, √√ etc. 
• Any other relevant answer related to the benefits of induction.  Max. (12) 

10.6 Conclusion 

• The relationship between the employer and employee should be guided  by the employment contract. √√
• A good induction programme enables new employees to have a basic  understanding of what is expected in the new job/position. √√ 
• Employees are one of the most important resources in any business,  therefore their success should be guaranteed by an effective induction  programme. √√
• It is important that the employer and employees sign the employment  contracts. √√
• Any other relevant introduction related to related to induction,  employment contract and benefits. (Any 1 x 2) (2)
  [40]

QUESTION 10: BREAKDOWN OF MARK ALLOCATION 

*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.
  TOTAL SECTION C: 80
  GRAND TOTAL: 300