BUSINESS STUDIES PAPER 2
GRADE 12
NOVEMBER 2020
NATIONAL SENIOR CERTIFICATE

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

1. This question paper consists of THREE sections and covers TWO main topics.
   SECTION A: COMPULSORY
   SECTION B: Consists of THREE questions.
   Answer any TWO of the three questions in this section.
   SECTION C: Consists of TWO questions.
   Answer any ONE of the two questions in this section.
2. Read the instructions for each question carefully and take note of what is required.
   Note that ONLY the first TWO questions in SECTION B and the FIRST question in SECTION C will be marked.
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 written in full sentences.
5. Use the mark allocation and nature of each question to determine the length and depth of an answer.
6. Use the table below as a guide for mark and time allocation when answering each question.
   

   SECTION	QUESTION	MARK	TIME(minutes)
   A: Objective-type questions COMPULSORY	1	30	30
   B: THREE direct/indirect- type questions CHOICE: Answer any TWO.	2	40	30
   	3	40	30
   	4	40	30
   C: TWO essay-type questions CHOICE:Answer any ONE.	5	40	30
   	6	40	30
   TOTAL		150	120

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

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 1.1.5) in the ANSWER BOOK, e.g. 1.1.6 D.
1.1.1 This form of investment requires a minimum amount of R1 000 to be invested:

1. Unit trusts
2. Shares
3. RSA Retail Savings Bonds
4. Fixed deposits

1.1.2 KDG Insurers applied the principle of … when they compensated Gerald Trading for losses incurred due to a burglary.

1. utmost good faith
2. indemnification
3. security
4. insurable interest

1.1.3 Henko handled the feedback session in a professional manner when he …

1. responded to questions without listening.
2. ignored a valid comment from the audience.
3. addressed the person and not the question.
4. responded politely to questions from the audience.

1.1.4 Food For All Ltd has identified … as one of their corporate social investment (CSI) focus areas.

1. Business ethics
2. rural development
3. health and safety
4. employment equity

1.1.5 A grievance procedure requires an aggrieved employee to first report the matter to his/her …

1. supervisor.
2. shop steward.
3. senior management.
4. trade union. (5 x 2)
   (10)

1.2. Complete the following statements by using the word(s) 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.
non-profit company; information; misleading; blue chip;
privacy; co-operative; decision-making; founders';
unfair; problem-solving
1.2.1 The shareholders of … shares are the last to be paid when the company is declared bankrupt.
1.2.2 Tim Vegetables and Anna Fertilisers decided to work together towards the mutual benefit of their members. This is an example of a …
1.2.3 Roxy Incorporated respects the employees' right to … by not providing their personal information to other businesses.
1.2.4 An example of … advertising is demonstrated when an advertisement excludes some sections of the population.
1.2.5 The practice where various alternatives are considered before choosing the best solution is known as … (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: 30

SECTION B
Answer ANY TWO questions in this section.
NOTE: Clearly indicate the QUESTION NUMBER of each question that you choose. The answer to EACH question must start on a NEW page, e.g. QUESTION 2 on a NEW page, QUESTION 3 on a NEW page.

QUESTION 2: BUSINESS VENTURES
2.1 State any THREE examples of non-insurable risks. (3)
2.2 Outline the functions of the Johannesburg Securities Exchange (JSE). (6)
2.3 Read the scenario below and answer the questions that follow.
YABO TRADERS (YT)
Yabo Traders insured their business vehicle for R300 000 while the actual value is R400 000. The vehicle was involved in an accident, resulting in damage to the amount of R30 000.
2.3.1 Name the insurance clause that is applicable to YT in the scenario above. (2)
2.3.2 Calculate the amount that Yabo Traders should receive as compensation from the insurer. Show ALL workings. (4)
2.4 Explain the difference between limited liability and unlimited liability. (4)
2.5 Discuss the role of personal attitude in successful leadership. (6)
2.6 Read the scenario below and answer the questions that follow.
NAVEED MANUFACTURERS (NM)
Mohammed is a newly appointed manager at Naveed Manufacturers. He requested his employees to give input on how they could reduce NM's production costs.
2.6.1 Identify the leadership style used by Mohammed. Motivate your answer by quoting from the scenario above. (3)
2.6.2 Suggest THREE situations in which the leadership style identified in QUESTION 2.6.1 can be applied in the workplace. (6)
2.7 Evaluate the impact of video conferencing as a visual aid. (6)
[40]

QUESTION 3: BUSINESS ROLES
3.1 Name THREE King Code principles for good corporate governance. (3)
3.2 Read the scenario below and answer the questions that follow.
GIANT ENTERPRISE (GE)
Candice, the team leader at Giant Enterprise, wants to resolve the conflict in her sales team. Team members constantly criticise each other's ideas, which delays their progress.
3.2.1 Identify the stage of team development that the sales team is experiencing. Motivate your answer by quoting from the scenario above. (3)
3.2.2 Advise Candice on how she could handle conflict in the workplace. (6)
3.3 Explain how abuse of work time poses challenges to businesses. (6)
3.4 Read the scenario below and answer the question that follows.
ASANDA DAIRIES (AD)
Asanda Dairies invested some of their surplus funds in the community. They offer bursaries to previously disadvantaged students. AD also uses recycled containers to package their dairy products.
Identify any TWO elements of the triple bottom line, applicable to AD. Motivate your answer by quoting from the scenario above.
Use the table below as a GUIDE to answer QUESTION 3.4.

(6)
3.5 Explain ways in which businesses could contribute time and effort to improve the well-being of their employees. (6)
3.6 Discuss the advantages of the Delphi technique in solving complex business problems. (4)
3.7 Recommend ways in which businesses could protect the environment and human health in the workplace. (6)
[40]

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS VENTURES
4.1 Name any TWO types of leadership theories. (2)
4.2 Identify the type of preference share offered by Theta Limited to shareholders in EACH statement below.
4.2.1 Shareholders can sell their shares back to Theta Limited after a certain period of time.
4.2.2 Past dividends which were not paid out due to low profits will not be compensated.
4.2.3 Shareholders are entitled to share in any surplus profit of the company. (6)
4.3 Explain the advantages of insurance for businesses. (4)
4.4 Read the scenario below and answer the questions that follow.
TRIO ENTERPRISE (TE)
Zama, the marketing manager of Trio Enterprise, is preparing to present a business report to the stakeholders. He is fully conversant with the objectives of the presentation. Zama also created visual aids that will support and enhance his information.
4.4.1 Quote TWO factors that Zama considered when preparing for his presentation in the scenario above. (2)
4.4.2 Advise Zama on the factors that he must consider while presenting. (6)

BUSINESS ROLES
4.5 Name any THREE social rights of employees in the workplace. (3)
4.6 Elaborate on the meaning of communication as one of the criteria for successful team performance. (4)
4.7 Read the scenario below and answer the questions that follow.
JACOB CONSTRUCTIONS (JC)
The management of Jacob Constructions wants to change the structure of their business. They asked employees to evaluate the advantages and disadvantages of the proposed change. Employees were encouraged to apply creative thinking skills when discussing the change.
4.7.1 Identify the problem-solving technique applied by JC. Motivate your answer by quoting from the scenario above. (3)
4.7.2 Explain the advantages of creative thinking in the workplace. (4)
4.8 Suggest ways in which businesses could deal with unemployment as a socio-economic issue. (6)
[40]
TOTAL SECTION B: 80

SECTION C
Answer ONE question in this section.
NOTE: Clearly indicate the QUESTION NUMBER of each question chosen. The answer to EACH question must start on a NEW page, e.g. QUESTION 5 on a NEW page OR QUESTION 6 on a NEW page.

QUESTION 5: BUSINESS VENTURES (FORMS OF OWNERSHIP AND INVESTMENT)
The criteria for the success or failure of private companies are more appealing than that of partnerships. Many partnerships convert to private companies so that they can benefit from these criteria. Some businesses consider the investment factors before investing in fixed deposits.
Write an essay on forms of ownership and investment in which you include the following aspects:

• Outline the disadvantages of a partnership.
• Explain how the following criteria could contribute to the success and/or failure of a private company:
  
  • Management
  • Legislation
  • Capital
• Discuss FOUR factors that should be considered when making investment decisions.
• Advise businesses on the impact of fixed deposits as a form of investment.

[40]

QUESTION 6: BUSINESS ROLES (HUMAN RIGHTS, INCLUSIVITY AND ENVIRONMENTAL ISSUES)
Businesses are required to respect the economic rights and safety of their employees in the workplace. The health and safety representatives play an important role in protecting the workplace environment. Adherence to human rights enables businesses to deal with diversity in the workplace.
Write an essay on human rights, inclusivity and environmental issues in which you include the following aspects:

• Outline the economic rights of employees in the workplace.
• Explain the roles of the health and safety representatives in protecting the workplace environment.
• Discuss the benefits of diversity in the workplace.
• Recommend ways in which businesses could deal with the following diversity issues in the workplace:
  
  • Gender
  • Disability

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