BUSINESS STUDIES
GRADE 12 
NSC EXAMS
PAST PAPERS AND MEMOS NOVEMBER 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 
SECTION C: Answer any THREE of the five questions in this section. 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 D. 
1.1.1 This Act protects employers from a financial burden should  employees be involved in an accident at the workplace:  

1. Consumer Protection Act, 2008 (Act 68 of 2008)
2. Skills Development Act (SDA), 1998 (Act 97 of 1998)
3. Compensation for Occupational Injuries and Diseases Act (COIDA), 1997 (Act 61 of 1997) 
4. Labour Relations Act (LRA), 1995 (Act 66 of 1995) 

1.1.2 It was easy for Dada Fish & Chips to acquire a trading licence. This  refers to the … as an element of Porter's Five Forces. 

1. power of suppliers
2. threat of substitution/substitutes 
3.  power of buyers 
4. threats/barriers for new entrants to the market 

1.1.3 John, a vegetable farmer, implemented the ... integration strategy  when he bought the fruit and vegetable stall that sells his products. 

1.  backward
2. forward
3. intensive 
4. horizontal 

1.1.4 This form of ownership is established by a group of people who  agree to work together for their mutual economic benefit: 

1. Cooperative
2. Close corporation 
3. Personal-liability company 
4. Private company 

1.1.5 The amount that the insured must pay when a claim is lodged: 

1.  Excess 
2. Premium 
3. Book value 
4. Interest

1.1.6 A/An ... leader ensures that employees follow strict rules and  procedures when performing their tasks. 

1. bureaucratic
2. democratic
3. autocratic 
4. laissez-faire/free-reign 

1.1.7 Team dynamic theories help businesses to … 

1.  allocate tasks to team members with similar personalities.
2. allocate tasks according to the role of each team member. 
3. establish good relationships with teams. 
4. promote individual satisfaction. 

1.1.8 A King Code principle that requires companies to have their financial  statements audited regularly: 

1.  Profitability 
2. Responsibility 
3. Sustainability 
4. Transparency 

1.1.9 A small group of voluntary workers that meets regularly to discuss  quality-related matters in the workplace: 

1.  Quality circles 
2. Shop stewards 
3. Quality managers 
4. Employee representatives 

1.1.10 Gerald lost his job at Green Industries, therefore he is entitled to  claim from the … Fund. 

1.  Road Accident 
2.  Compensation 
3.  Medical Aid 
4.  Unemployment Insurance (10 x 2) (20)

1.2 Complete the following statements by using the words provided 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 A … is the plan of action used by businesses to solve challenges.  
1.2.2 An investor can only withdraw money from … when he/she reaches  a certain age. 
1.2.3 A business that appoints an interpreter for meetings is addressing … as a diversity issue. 
1.2.4 Econ Traders offer housing allowances as a … benefit to attract new  employees. 
1.2.5 Tim's employment contract was not renewed because he  was … due to gross misconduct. (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. 

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 FOUR pillars of the Broad-Based Black Economic Empowerment Act  (BBBEE), 2003 (Act 53 of 2003). (4) 
2.2 Outline the role of SETAs in supporting the Skills Development Act, 1998  (Act 97 of 1998). (8) 
2.3 Read the scenario below and answer the questions that follow.

2.3.1 Name the business sector in which DM operates. Motivate your  answer by quoting from the scenario above. (3) 
Use the table below as a guide to answer the questions that follow. 

2.3.2 Quote THREE challenges from the scenario above that Duka Mines  have to deal with. (3) 
2.3.3 Classify EACH challenge quoted in QUESTION 2.3.2 according to  the business environment. (3) 
2.3.4 State the extent of control that DM has over EACH business  environment. (3) 
2.4 Describe THREE types of diversification strategies. (9) 
2.5 Explain the purpose of the Basic Conditions of Employment Act (BCEA),  1997 (Act 75 of 1997). (6)
2.6 Read the scenario below and answer the questions that follow. 

2.6.1 Identify the Act that was applied by Speedy Drycleaners. Motivate  your answer by quoting from the scenario above. (3) 
2.6.2 Evaluate the impact of the Act, identified in QUESTION 2.6.1, on  businesses. (8) 
2.7 Advise businesses on steps that they should follow when evaluating a  strategy. (10) [60] 

QUESTION 3: BUSINESS VENTURES 
3.1 Give THREE examples of insurable risks. (3)
3.2 Outline TWO rights of ordinary shareholders. (4)
3.3 Tammy allocates tasks to employees according to their level of maturity. 
3.3.1 Name the leadership theory that Tammy is applying. (2)
3.3.2 Discuss the leadership theory identified in QUESTION 3.3.1. (8)
3.4 Distinguish between a private company and a public company. (8)
3.5 Read the scenario below and answer the questions that follow. 

3.5.1 Calculate the interest amount Ronnete will receive after two years if  she invests with Saints Bank. (3) 
3.5.2 Calculate the interest amount Ronnete will receive after two years if  she invests with Caprica Bank. (4) 
3.5.3 Recommend the best investment option for Ronnete. Motivate your  answer. (3) 
3.6 Discuss any TWO principles of insurance. (6)
3.7 Read the scenario below and answer the questions that follow. 

3.7.1 Identify the type of visual aid that Sipho used. Motivate your answer  by quoting from the scenario above. (3) 
3.7.2 Evaluate the impact of the visual aid identified in QUESTION 3.7.1. (8) 
3.7.3 Advise Sipho on the factors that he should consider when  responding to questions in a professional manner. (8) [60] 

QUESTION 4: BUSINESS ROLES 
4.1 State FIVE causes of conflict in the workplace. (5)
4.2 Outline the benefits of diversity in the workplace. (8)
4.3 Read the scenario below and answer the questions that follow. 

4.3.1 Identify the TWO stages of team development that were  experienced by SS. Motivate your answer by quoting from the  scenario above. (6) Use the table below as a guide to answer QUESTION 4.3.1. 

4.3.2 Explain THREE other stages of team development. (9) 4.4 Discuss the advantages of creative thinking in the workplace. (8) 
4.5 Explain how businesses could apply the force-field analysis technique to  solve business problems. (6)
4.6 Read the scenario below and answer the questions that follow. 

4.6.1 Identify the types of difficult personalities displayed by Albert and  Njabulo. Motivate your answer by quoting from the scenario above. (6) 
Use the table below as a guide to answer QUESTION 4.6.1. 

4.6.2 Recommend ONE strategy that LSS can use to deal with EACH type  of difficult personality identified in QUESTION 4.6.1. (4) 
4.7 Suggest ways in which businesses could promote social rights in the  workplace. (8) [60] 

QUESTION 5: BUSINESS OPERATIONS 
5.1 Name FOUR sources of internal recruitment. (4) 5.2 Outline the purpose of induction as a human resources activity. (8)
5.3 Read the scenario below and answer the questions that follow. 

5.3.1 Quote from the scenario above the role of the interviewer and interviewee/candidate during the interview. 
Use the table below as a guide to answer QUESTION 5.3.1.  (4) 

5.3.2 Explain the role of the interviewer when preparing for an interview. (8)
5.4 Differentiate between job description and job specification. (8)
5.5 Read the scenario below and answer the questions that follow.

5.5.1 Identify the total quality management (TQM) elements applied by  SLL. Motivate your answer by quoting from the scenario above.  (6) 
Use the table below as a guide to answer QUESTION 5.5.1. 

5.5.2 Evaluate the impact of ONE TQM element, identified in  QUESTION 5.5.1, on Strydom Leathers Limited as a large business. (8)
5.6 Explain the impact of TQM if it is poorly implemented by businesses. (6) 
5.7 Advise businesses on the benefits of a good quality management system. (8) [60] 

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENTS 
6.1 Identify the PESTLE element that poses a challenge to Tsego Manufacturers in EACH statement below. 
6.1.1 Customers cannot afford to buy Tsego Manufacturers' products due  to low income levels. (2) 
6.1.2 Tsego Manufacturers cannot afford to implement correct measures  when disposing of waste material. (2) 
6.1.3 Tsego Manufacturers have lost many customers due to a lack of  on-line buying facilities. (2) 
6.1.4 Tsego Manufacturers have increased their prices due to the high  inflation rate. (2) 
6.2 Explain the advantages of intensive strategies for businesses. (6)

BUSINESS VENTURES 
6.3 Discuss the importance of state-owned companies (SOC). (6)
6.4 Read the scenario below and answer the questions that follow. 

6.4.1 Identify the insurance clause applied by the insurance company in the scenario above. (2) 
6.4.2 Elaborate on the meaning of the insurance clause identified in  QUESTION 6.4.1. (4) 
6.4.3 Outline TWO advantages of insurance for businesses. (4)

BUSINESS ROLES 
6.5 Give FOUR examples of unfair advertising. (4) 
6.6 Identify the problem-solving technique applied by Garry Cycling Store in  EACH statement below. 
6.6.1 Garry engages in a role-play conversation with an imaginary person  to clarify a proposed solution to a problem. 
6.6.2 Employees were requested to first generate ideas and then share  their ideas with other group members. 
6.6.3 Experts were requested to complete a questionnaire on how to solve  their business problems. (6) 
6.7 Recommend strategies that businesses could use to deal with the pricing of  goods in rural areas. (6) 

BUSINESS OPERATIONS 
6.8 Define placement as a human resources activity. (2) 
6.9 Explain TWO salary determination methods that businesses could apply to  remunerate their employees. (6) 
6.10 Advise the human resources manager on aspects that should be included in  an employment contract. (6) [60] 

TOTAL SECTION B: 180

SECTION C 
Answer ANY TWO questions in this section. 
NOTE: Clearly indicate the QUESTION NUMBER of each question chosen.  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 (LEGISLATION) 

As an expert on recent legislation, write an essay on the following aspects: 

• Outline the purpose of the CPA. 
• Discuss the impact of the CPA on businesses. 
• Recommend ways in which businesses could promote the following consumer  rights, as stipulated in the CPA:
  • Right to privacy and confidentiality
  • Right to information about products and agreements
  • Right to fair value/good quality and safety 

• Advise businesses on penalties/consequences that may be imposed for non-compliance with the NCA. [40] 

QUESTION 8: BUSINESS VENTURES (INVESTMENTS AND FORMS OF  OWNERSHIP) 

Keep the scenario above in mind and write detailed notes on the following aspects: 

• Outline the functions of the JSE. 
• Describe FOUR types of preference shares. 
• Evaluate the impact of the RSA Retail Savings Bonds/government retail bonds on  investors. 
• Advise Peter and Teko on how the following factors could contribute to the success  and/or failure of their partnership: 
  • Management 
  •  Legislation [40]

QUESTION 9: BUSINESS ROLES (SOCIAL RESPONSIBILITY, CSR AND CSI) 

Write an essay in which you address the following aspects: 

• Differentiate between CSR and CSI. 
• Explain the impact of CSR on communities. 
• Recommend strategies on how businesses could deal with HIV/Aids and  unemployment as socio-economic issues. 
• Suggest FIVE ways in which businesses could contribute time and effort to improve the well-being of the community, excluding HIV/Aids and unemployment  strategies. [40] 

QUESTION 10: BUSINESS OPERATIONS (QUALITY OF PERFORMANCE) 

Give an in-depth analysis of quality of performance by referring to the following  aspects: 

• Elaborate on the meaning of quality assurance. 
• Distinguish between quality management and quality performance. 
• Suggest quality indicators of the general management function and the production  function. 
• Advise businesses on how TQM could impact on the reduction of the cost of  quality. [40] 

TOTAL SECTION C: 80 
GRAND TOTAL: 300