BUSINESS STUDIES
GRADE 12 
AMENDED SCE PAST PAPERS AND MEMOS
MAY/JUNE 2018

INSTRUCTIONS AND INFORMATION 
Read the following instructions carefully before answering the questions. 

1. This question paper consists of THREE sections and covers all FOUR main  topics. 
   SECTION A: COMPULSORY
   SECTION B: Consists of FIVE questions
                         Answer any THREE of the five questions in this section.
   SECTION C: Consists of FOUR questions
                         Answer any TWO of the four questions in this section.
2. Read the instructions for each question carefully and take particular note of  what is required. 
3. Number the answers correctly according to the numbering system used in this  question paper. NO marks will be awarded for answers that are numbered  incorrectly.
4. Except where other instructions are given, answers must be 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 a guide for mark and time allocation when answering  each question. 

7. Begin the answer to EACH question on a NEW page, e.g. QUESTION 1 – new page, QUESTION 2 – new page, etc.
8. You may use a non-programmable calculator.
9. Write neatly and legibly.

QUESTIONS

SECTION A (COMPULSORY) 
QUESTION 1 
1.1 Various options are provided as possible answers to the following questions.  Choose the answer and write only the letter (A–D) next to the question  numbers (1.1.1 to 1.1.10) in the ANSWER BOOK, e.g. 1.1.11 B. 
1.1.1 This Act regulates the implementation of affirmative action when businesses make new appointments: 

1. Consumer Protection Act, 2008 (Act 68 of 2008)
2. Employment Equity Act, 1998 ( Act 55 of 1998)
3. Broad-Based Black Economic Empowerment Act, 2003 (Act 53 of 2003)
4. Labour Relations Act, 1995 (Act 66 of 1995) 

1.1.2 Yashika Supermarket has … control over challenges related to its  vision and mission statement. 

1. full
2. no
3. limited
4. little 

1.1.3 It is compulsory for … to hold an annual general meeting for its  shareholders. 

1. Shark Tale General Dealer (Pty) Ltd
2. Shrek Building Appliances CC
3. Incredible Toy Store Ltd
4. Healthy Living NPC 

1.1.4 This aspect should be considered when designing a multimedia  presentation: 

1. Prepare for the feedback session
2. Cover a large amount of information
3. Keep eye contact with the audience
4. Choose relevant images 

1.1.5 Thrums Traders insured their building for R80 000. The actual value  of the building is R100 000. Damages caused by fire amounted to  R50 000. What will be the compensation for the loss? 

1. R100 000
2. R80 000
3. R62 500
4. R40 000 

1.1.6 Businesses use team dynamics theories to … 

1. promote total satisfaction.
2. allocate tasks according to the roles of team members.
3. allocate tasks to team members with similar personalities.
4. encourage competition within teams. 

1.1.7 When resolving differences between employees in the workplace,  management needs to … 

1. dismiss the affected worker.
2. shift the blame.
3. address the causes of conflict.
4. transfer the difficult worker. 

1.1.8 The process a senior manager uses to choose the best solution, is  known as… 

1. problem solving.
2. routine thinking.
3. decision making.
4. brainstorming. 

1.1.9 A framework that businesses use to manage key processes to  maintain good standards: 

1. Quality control 
2. Quality management system
3. Quality management
4. Quality performance 

1.1.10 The process of choosing the five most suitable candidates for the job  is known as … 

1. interview.
2. recruitment.
3. reference checking.
4. shortlisting. (10 x 2) (20)

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

1.2.1 The job … outlines the minimum requirements of a vacancy. 
1.2.2 A reward paid out to shareholders on the profits of the business is  known as … 
1.2.3 Investors who lend money to a company are called …  
1.2.4 The … theory is based on the idea that people are born with  preferences for certain attitudes and functions. 
1.2.5 Keeping business information up to date is the responsibility of the  … function. (5 x 2) (10) 
1.3 Choose a description from COLUMN B that matches a term in COLUMN A.  Write only the letter (A–J) next to the question numbers (1.3.1 to 1.3.5) in the  ANSWER BOOK, e.g. 1.3.6 K. 

(5 x 2) (10) 
TOTAL SECTION A: 40

SECTION B 
Answer ANY THREE questions in this section. 
NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose.  The answer to EACH question must start on a NEW page, e.g. QUESTION 2  on a NEW page, QUESTION 3 on a NEW page, etc. 
QUESTION 2: BUSINESS ENVIRONMENTS 
2.1 List any FOUR forces of Porter's Five Forces model. (4) 
2.2 Outline the role of SETAs in supporting the Skills Development Act, 1998  (Act 97 of 1998). (10) 
2.3 Identify the pillar of the Broad-Based Black Economic Empowerment Act  (BBBEE), 2003 (Act 53 of 2003) that Mpho Auditors has complied with in  EACH statement below: 
2.3.1 Mpho Auditors uses Themba Shuttle services to transport their  employees. 
2.3.2 They have donated laptops to schools in rural areas. 
2.3.3 A learnership programme has been offered to all their employees. 
2.3.4 Mpho Auditors has promoted two black females as heads of various  departments. 
2.3.5 They have invited the Bakwena community to buy shares in their  company. (10) 
2.4 Distinguish between product development and market development. (8)
2.5 Read the scenario below and answer the questions that follow. 

2.5.1 Name the Act MGM violated in the scenario above. (2) 
2.5.2 Discuss the negative impact of the Act, identified in  QUESTION 2.5.1, on MGM. (8)
2.6 Read the scenario below and answer the questions that follow. 

2.6.1 Name the business sector in which Super Energy Enterprise  is operating. (1) 
2.6.2 Identify THREE challenges for SEE's business and classify EACH  challenge according to the business environment. 
Use the table below to answer this question.  (9) 

2.7 Analyse the impact of the National Credit Act, 2005 (Act 34 of 2005) on  businesses. (8) [60] 

QUESTION 3: BUSINESS VENTURES 
3.1 State any FOUR types of Unemployment Insurance Fund (UIF) benefits. (4) 
3.2 Identify the type of preference share represented by EACH of the statements below. 
3.2.1 Shareholders are entitled to share in any surplus profits. (2) 
3.2.2 Shareholders are compensated for past dividends that were not paid  out when profits were too low to declare dividends. (2) 
3.3 Name THREE other types of preference shares. (6)
3.4 Explain the functions of the Johannesburg Securities Exchange (JSE). (8)
3.5 Read the scenario below and answer the questions that follow. 

3.5.1 Name the form of ownership that Zama and Quinton are currently  operating. Support your answer by quoting from the scenario above. (3) 
3.5.2 Describe the success factors of the form of ownership identified in  QUESTION 3.5.1 and those of a personal liability company. 
Use the table and criteria below to answer this question.   (12) 

3.6 Discuss the transformational leadership theory. (6)
3.7 Read the scenario below and answer the questions that follow. 

3.7.1 Quote THREE ways from the scenario in which Ayisha responded to  questions after her presentation. (3) 
3.7.2 Advise Ayisha on other ways in which to respond to questions after a presentation. (8) 
3.8 Discuss the following factors that should be considered when making  investment decisions: 
3.8.1 Inflation (2)
3.8.2 Investment period (2) 
3.8.3 Return on investment (2) [60]

QUESTION 4: BUSINESS ROLES 
4.1 Name THREE King Code principles of good corporate governance. (3)
4.2 State THREE causes of conflict in the workplace. (3) 
4.3 Identify the diversity issue addressed by Nedlim Ltd in EACH statement below: 
4.3.1 Nedlim Ltd offers a menu that caters for various population groups.
4.3.2 The staff consists of young and old employees. 
4.3.3 There are special facilities for physically challenged employees. 
4.3.4 Nedlim Ltd employed an interpreter so that all employees can fully  understand what is being said during meetings. (8) 
4.4 Differentiate between corporate social responsibility and corporate social  investment. (4) 
4.5 Read the scenario below and answer the questions that follow. 

4.5.1 Identify the stage of team development that is applicable to the scenario above. Motivate your answer by quoting from the scenario. (3) 
4.5.2 Discuss THREE other stages of team development. (9) 
4.5.3 Advise DT's team leader on the implications of equality, respect and  dignity on businesses. (6) 
4.6 Explain the correct procedure to deal with grievances in the workplace. (8) 
4.7 Recommend ways in which businesses can contribute to the wellbeing of their  employees. (8) 
4.8 Suggest TWO strategies businesses can use to deal with the following  unethical business practises: 
4.8.1 Sexual harassment (4) 
4.8.2 Pricing of goods in rural areas (4) [60]

QUESTION 5: BUSINESS OPERATIONS 
5.1 State SIX aspects that should be included in an induction programme. (6) 
5.2 Outline the selection procedure as an activity of the human resources  function. (6) 
5.3 Describe the role of the interviewee/applicant during an interview. (8)
5.4 Read the scenario below and answer the questions that follow.

5.4.1 Identify the method used by EF to determine Themba and Thoko's  salaries. Motivate your answer by quoting from the scenario. (3) 
5.4.2 Evaluate the impact of fringe benefits on businesses. (8)
5.5 Explain the difference between quality performance and quality management. (4)
5.6 Read the scenario below and answer the questions that follow.

5.6.1 Quote THREE statements from the scenario above and link EACH  ONE to a specific element of total quality management (TQM). 
Use the table below to answer this question. (9) 

5.6.2 Discuss the importance of quality circles in TQM. (8) 
5.7 Recommend ways in which businesses could improve the quality of  performance within the purchasing function. (8) [60]

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENTS 
6.1 Identify the type of business strategy illustrated in EACH of the statements below. 
6.1.1 Alex Clothing Manufacturers took over Class Clothing Retailers for  efficiency and profitability. 
6.1.2 Moyeni Supermarkets in Potchefstroom reduced the prices of their  products to increase sales. 
6.1.3 Exclusive Books expanded their business by selling stationery to  attract new customers. (6) 
6.2 Discuss the impact of the Labour Relations Act, 1995 (Act 66 of 1995) on  businesses. (8) 

BUSINESS VENTURES 
6.3 Differentiate between limited and unlimited liability. (4)
6.4 Read the scenario below and answer the questions that follow.

6.4.1 Identify the type of investment option that is applicable to the  scenario above. (2) 
6.4.2 Discuss the advantages of the type of investment identified in  QUESTION 6.4.1. (6) 
6.5 Identify the type of compulsory insurance applicable to EACH statement  below. 
6.5.1 Nathalie broke her leg when her car collided with another car and  she is demanding compensation. (2) 
6.5.2 Piet lost his job due to retrenchment and he is claiming  compensation from the Department of Labour. (2)

BUSINESS ROLES 
6.6 Name any FOUR types of problem-solving techniques. (4)
6.7 Discuss the advantages of creative thinking in the workplace. (6) 
6.8 Recommend ways in which professional, responsible, ethical and effective  business practices should be conducted. (6) 

BUSINESS OPERATIONS 
6.9 Read the scenario below and answer the questions that follow. 

6.9.1 Quote TWO results of poor implementation of TQM by NGC from the  scenario above. (2) 
6.9.2 Explain the impact if TQM is poorly implemented by businesses, except those mentioned in QUESTION 6.9.1. (6) 
6.9.3 Advise NGC on the benefits of a good quality management system. (6) [60] 

TOTAL SECTION B: 180

SECTION C 
Answer ANY TWO questions in this section. 
NOTE: Clearly indicate the QUESTION NUMBER of each chosen question. The  answer to EACH question must start on a NEW page, e.g. QUESTION 7 on a  NEW page, QUESTION 8 on a NEW page, etc. 

QUESTION 7: BUSINESS ENVIRONMENTS (BUSINESS STRATEGIES)

Write an essay on the strategic management process. Include the following aspects in  your response: 

• Outline TWO aspects that should be considered during the initial stages of the  strategic management process.  
• Explain how ZM can apply the PESTLE model to deal with the challenges of the  macro environment. 
• Describe THREE types of defensive strategies that businesses may use to deal  with challenges in the business environment. 
• Advise ZM on the steps that they should consider when evaluating strategies. [40]

QUESTION 8: BUSINESS VENTURES (MANAGEMENT AND LEADERSHIP) 

With reference to the statement above, write an essay on the following aspects: 

• Give THREE differences between management and leadership. 
• Discuss the role of personal attitude in successful leadership. 
• Analyse the impact of democratic and laissez-faire/free reign leadership styles on  businesses. 
• Recommend situations in which the above-mentioned leadership styles could be  applied in the workplace. [40]

QUESTION 9: BUSINESS ROLES (ECONOMIC RIGHTS AND ENVIRONMENTAL  ISSUES) 

As an expert on economic rights and environmental issues, address the following  aspects in your essay: 

• Outline the economic rights of employees in the workplace. 
• Explain the responsibilities of employers and employees in protecting the  workplace environment. 
• Discuss the roles of health and safety representatives in protecting the workplace  environment. 
• Suggest ways in which businesses could protect the environment and human  health in the workplace. [40] 

QUESTION 10: BUSINESS OPERATIONS (HUMAN RESOURCES) 
TOMMY FINANCIAL SERVICES (TFS) 

Keeping the scenario above in mind, write an essay on the following aspects: 

• Discuss the impact of internal recruitment on businesses. 
• Explain the legal requirements of an employment contract to TFS. 
• Advise TFS on the correct placement procedure. 
• Elaborate on the implications of the Skills Development Act, 1998 (Act 97 of 1998)  for the human resources function. [40] 

TOTAL SECTION C: 80
GRAND TOTAL: 300