CONSUMER STUDIES PAPER
GRADE 12 
NSC EXAM PAPERS AND MEMOS
NOVEMBER 2016

MEMORANDUM

QUESTION 1: SHORT QUESTIONS 
1.1

1.1.1 B✔  Remembering, easy (Focus, p.182–184; Successful, p.202) (1) 
1.1.2 D✔  Remembering, easy (Focus, p.163; Successful, p.180) (1) 
1.1.3 C✓  Applying, moderate (Focus, p.173–4; Successful, p.192–4) (1) 
1.1.4 C✔ Remembering, easy (Focus, p.72; Successful, p.81) (1) 
1.1.5 A✔  Remembering, easy (Focus, p.95; Successful, p.111) (1) 
1.1.6 B✔  Remembering, moderate (Focus, p.101; Successful, p.119) (1) 
1.1.7 C✔  Remembering, easy (Focus, p.103; Successful, p.123–124) (1) 
1.1.8 C/ D✔ Remembering, easy (Focus, p.89–91; Successful, p.103-109) (1) 
1.1.9 A✔  Understanding, easy (Focus, p.49–50; Successful, p.50) (1)
1.1.10 C✔ Understanding, easy (Focus, p.49; Successful, p.51) (1) 
1.1.11 B✔  Remembering, easy (Focus, p.128; Successful, p.146) (1) 
1.1.12 C✔  Understanding, difficult (Focus,p.127–128;Successful, p.145) (1) 
1.1.13 A/ D✔ Applying, difficult (Focus, p.137; Successful, p.157) (1) 
1.1.14 B✔ Understanding, moderate (Focus, p.130; Successful, p.149) (1) 
1.1.15 A✔ Understanding, easy (Focus, p.120; Successful, p.138) (1) 
1.1.16 C✔ Remembering, moderate (Focus, p.16; Successful, p.22) (1) 
1.1.17 D✔ Remembering, easy (Focus, p.25; Successful, p.25) (1) 
1.1.18 D✔ Remembering, easy (Focus, p.31; Successful, p.30) (1) 
1.1.19 A✓ Remembering, moderate (Focus, p.40; Successful, p.42) (1) 
1.1.20 B✓ Applying, moderate (Focus, p.35; Successful, p.34) (1)

1.2

1.2.1   F✔ (Focus, p. 90; Successful, p. 107) (1) 
1.2.2  A/ D✔ (Focus, p. 90; Successful, p. 106) (1) 
1.2.3   C✔ (Focus, p. 89; Successful, p. 104) (1) 
1.2.4   B✔ (Focus, p. 89; Successful, p. 103) (1)
Remembering, moderate 

1.3

1.3.1 Stokvel/ savings club✓ (Foc, p. 161; Suc, p. 177) (1)
1.3.2 Unfair business practice/ scam/ fraud✓ (Foc, p. 157; Suc, p. 174) (1)
1.3.3 Grey goods/ parallel imports✓  (Foc, p. 158; Suc, p.176) (1)
1.3.4 (Illegal) Pyramid scheme✓ (Foc, p. 162; Suc, p.179) (1)
1.3.5 Cooling-off period✓   (Foc, p. 157; Suc, p. 173) (1)
1.3.6 Tiered-level scheme/ multilevel marketing  scheme/ legal pyramid scheme✓ (Foc, p. 162; Suc, p. 179)  (1)
Remembering, moderate 

1.4

A✔ (in any sequence) 
D✔ 
E✔ 
F✓ (4) 
Understanding, moderate (Focus, pages 39–40; Successful, page 41) 

1.5

1.5.1 D✔ 
1.5.2 F✔ 
1.5.3 I✔ 
1.5.4 O/ P✓ 
1.5.5 R✓ 
1.5.6  X✓ (6) 
Analysing; applying, moderate (Focus, pages 56–60; Successful, pages 59–65) [40]

QUESTION 2: THE CONSUMER 
2.1 Name TWO forms of renewable energy. 

• Water energy/ hydroelectricity/ hydro power/ tidal energy✔1
• Wind (energy)✔2 (Not air energy) 
• Solar/sun (energy)✔3
• Energy from wood/ dung/ fuel/ vegetable matter/ vegetable oil/  bio-energy/ bio-mass✔4 
• Geothermal✔5 (Any 2) (2) Remembering, easy (Focus, pages 171–172; Successful, pages 191–192) 

2.2 Explain the term phishing. 

• Phishing e-mails are fake e-mails/ phone call/ website✔1
• usually pretending to be legitimate from banks/ other financial  institutions,✔2
• asking the consumer to change his/ her personal details/ financial  information/ tricks the consumer into giving his/ her credit card number,  account user name and password to the phishers.✔3
  OR 
• When an e-mail message/ website/ phone call✔4
• is designed to steal money from an unsuspecting consumer.✔5 
• It is sometimes used for identity theft.✓6 (Any 3)  Remembering, easy (Focus, pages 159–160; Successful, pages 176–177) 

2.3 Explain how an increase in VAT will affect food prices and the  disposable income of South African consumers. 

• Some basic food items (brown bread/ maize meal/ lentils/ milk powder/ dried mealies/ mealie rice/ samp/ rice/ milk/ fruit/ vegetables/ eggs) are  excluded/exempted from VAT/ zero-rated,✓1 these products will still be  zero-rated after an increase in VAT.✓2
• If VAT increases, the production cost/ electricity/ transport/ water/  overheads of all food items (regardless if zero rated or not) will  increase,✓3 and this will lead to higher food prices✓4, reducing the  disposable income of consumers.✓5  
• Consumers, especially lower income consumers, will suffer more/  consumers may not be able to meet their basic needs✓6 and consumers  will purchase fewer products.✓7 (Any 4) (4) 
  Understanding, moderate (Focus, pages 164-165; Successful, page 181)

2.4

2.4.1 Quote a sentence from the information above to describe the  term inflation. 

• • Living in South Africa is not as cheap as it used to be  because prices keep climbing/rising✓1
  • A rise in the costs of petrol, diesel and consumer products  which have seen increases in the last few years✓2
  • The value of the rand keeps fluctuating.✓3 Any 1) (1)
    Remembering, easy (Focus, page 167; Successful, pages 184–85)
    NOTE: Accept 'prices keep rising', it doesn’t have to be a full sentence. 

2.4.2 Use the information above and identify TWO items that could  be included in the 'consumer basket' when assessing the  consumer price index. 

• • Petrol✓
  • Diesel✓
  • Clothing✓
  • Computers✓
  • Consumer products✓ (Any 2) (2)
    Remembering, easy (Focus, pages 164–165; Successful, page 181)  

2.5 Discuss how installing this shower head may contribute to the  sustainable consumption of:  

2.5.1 Water 
This type of shower head uses 50%/ 60% less/ less water/saves water✓1 but still retains the pressure/ power/ force of water.✓2 (2) 
2.5.2 Electricity 
This saves electricity / less electricity is used✓1 as less heated  water leaves the geyser.✓2 (2)
Understanding, moderate (Focus, p 180; Successful, page, 199)

2.6 Save more, save longer, delay your retirement:  

• This will help to accumulate wealth/ have more money✔1as savings gain  (compound) interest.✔2
• The longer one saves the more money is accumulated✔3 to help  combat inflation/ increasing prices of goods and services.✔4 
• Normally retirement income is less than income when working/ employed.✔5  
• You will have more money for luxuries/ holidays/ helping your  children✓6 (Any 2) 

Have a good medical aid with a comprehensive cover:  

• As one ages health deteriorates.✔1 Medical needs will become more.✔2 Therefore a comprehensive medical aid will ensure that medical needs are covered/ You will have to pay less out of your pocket✓3
• Inflation will cause an increase in the cost of medical expenses✓4 and  will impact on the budget having less money available for daily living  expenses.✔5
• Get good/ better health care/ do not have to go to the clinic.✓6 (Any 2) 

Pay off your mortgage before retirement:  

• The quicker a mortgage bond/ loan is paid off, less interest is paid.✔1
• When the bond is paid off, no monthly payments are due✓2 which  increases the disposable income. ✔3
• A paid off property is an asset/ investment.✓4
• If the mortgage bond/ home loan is not paid off before retirement the  instalments✔5 may not be affordable on pension/ retirement money/ income/ property may be repossessed.✓6
• May become dependent on other family members.✔7 (Any 2x2) (4)
  Analysing, difficult (Focus, pages 166–169; Successful, pages 183–184) 
  NOTE: TWO marks can be awarded for any TWO of the three aspects.    

[20]

QUESTION 3: FOOD AND NUTRITION 
3.1 Define the term obesity. 

• Obesity is a condition of excessive/ too much fatness/ body fat/ weight  exceeds the standard based on height/ BMI is over 30/ when an  individual is over 20% of normal weight.✓ (1)
  Remembering, easy (Focus, page 83; Successful, page 96)
  NOTE: Do not accept overweight 

3.2 Name FOUR points to keep in mind when treating gastroenteritis in  adults. 

• Stop eating solid foods for a few hours so that your stomach can  settle.✓1
• Avoid water of uncertain quality/ drink bottled water/ boiled water/ clear  liquid/ fruit juices/ sports drinks/ drink at least 200 ml an hour for  adults.✓2
• Prevent or treat dehydration/ prevent dehydration✓3 by sucking on ice  or ice lollies/ take small, frequent sips of liquid 
• Take electrolytes, e.g. sorol/ rehydrate solution/ mixture of boiled water,  sugar and salt/ sports drink✓4
• Start eating again slowly/ gradually.✓5
• Eat foods that are usually well tolerated/ easily digested such as dry  toast/ jelly/ bananas/ grated apple/ rice/ clear soup.✓6
• Avoid dairy products/ caffeine/ alcohol/ fatty food/ spicy food.✓7
• Consult a doctor/ clinic rather than attempt self-medication if the  diarrhoea is severe/ it does not improve within several days/ there is  blood and/ or mucus in the stool/ fever occurs with shaking chills/ or  there is dehydration with persistent diarrhoea.✓8
• Rest✓9 (Any 4) (4) Remembering, easy (Focus, page 91; Successful, page 109) 

3.3

3.3.1 Which ingredient is present in the largest quantity? 

• • Filtered water✓ (1)
    Remembering, easy (Focus, page 97; Successful, page 118) 

3.3.2 Identify the ingredient which is most commonly irradiated.

• • Spices✓ (1)
    Understanding, moderate (Focus, page 105; Successful, page 128)

3.3.3 Identify THREE ingredients which contain one or more of the  most common allergens 

• • (Fresh) cream✓
  • Butter✓
  • (Cheese) Pecorino✓
  • Parmesan✓ 
  • Colourant✓
  • Flavourant✓ (Any 3) (3)
    Remembering, easy (Focus, page 79; Successful, page 92) 

3.3.4 Explain the function of sorbic acid as a chemical preservative  in this product. 

• • It was added to lengthen the shelf-life of the product/ protect  the product✓1 against deterioration/ slow down enzyme  activity✓2 which could lead to food spoilage/ decay.✓3
  • Makes the food safer✓4 to eat as it inhibits/ retards spoilage  caused by micro-organisms✓5 which could lead to food  poisoning✓6 (Any 2) (2)
    Understanding, moderate (Focus, page 94; Successful, page 113) 

3.3.5 Discuss why this product is NOT suitable for the prevention of  osteoporosis. 

• • Although the product contains calcium/ phosphorus✓1 it may  not have an impact on the prevention of osteoporosis as it  may not be consumed regularly/ daily.✓2/ The quantities  present are inadequate,✓3 may not have an impact on the  prevention of osteoporosis. 
  • There is very little/no vitamin D✓4 to assist with the  absorption of calcium.✓5 (Any 2) (2)
    Applying, easy (Focus, page 76, Successful, page 90) 

3.4

3.4.1 Identify TWO food items on the menus that must be avoided  by a person with lactose intolerance. 

• • Cream✓
  • Milk✓
  • Low fat milk✓ (Any 2) (2)
    Remembering, easy (Focus, page 79; Successful, page 93)

3.4.2 Explain why Breakfast B will contribute to arteriosclerosis. 

• • Chocolate croissants/ cream/ full cream milk/ beef sausages/  fried egg/ butter/ non-dairy whitener✓1 contains animal/  (saturated) fat✔2 that forms plaque✓3 which will narrow/ clog  the arteries/ blood vessels/ ✔4 and raise the blood cholesterol  levels.✔5
  • These foods are high in low-density lipoproteins/bad  cholesterol,✔6 they will narrow the blood vessels/ arteries.
  • Margarine spread on the bread/ chocolate in the croissants  contains trans-fatty acids✔7 which will raise the low-density  lipoproteins✔8 and contribute to atherosclerosis. This menu contains very little fibre✔9 which lowers  cholesterol.✓10
  • Excessive intake of refined carbohydrates like Corn flakes/ chocolate croissants✓11 contribute to atherosclerosis.  (Any 6) (6 ) 
    Applying, difficult (Focus, page 74; Successful, page 84) 

3.4.3 Give THREE reasons why Breakfast A will be the best choice  to manage anaemia. 

• • Strawberries/ mango/ kiwifruit is rich in vitamin C✔1 which will promote the absorption of -iron.✔2
  • Muesli/ whole wheat bread/ liver contain iron✔3 to help in the  formation of haemoglobin/ red blood cells.✔4 Iron from animal  sources is better absorbed than iron from plant sources.✓5
  • Muesli/ whole wheat bread/ liver contain folic acid✔6 which is  needed for the production of red blood cells.✔7
  • Liver/ egg contains vitamin B12✔8 which assists in the  formation of red blood cells.✔9 (Any 3 x 2) (6)
    Applying, moderate (Focus, page 77; Successful, pages 90–91)

3.5 Explain why the nutrients in the extract above will have a positive  influence on people with HIV/Aids. 

• All the listed nutrients/ Vitamin A, B vitamins, selenium, iron and zinc  strengthen/protect/maintain the immune system.✓1
• A stronger immune system lowers the risk of infections in people with  HIV/ Aids✓2
• Vitamin A keeps the linings of the lungs/ gut/ intestine healthy/intact✓3 to make it difficult for germs to enter the body and cause infections.✓4 During infections, there is an increased loss of vitamin A from the  body✓5 and the vitamin A will not be replaced. Vitamin A is an anti oxidant✓6 which protects cells from damage.✓7* This helps to prevent  infection✓*8 and may help to slow down the disease by keeping the  immune system healthy.✓*9
• B vitamins are needed to maintain a healthy immune and nervous  system.✓10
• Vitamin C/ Zinc/ Selenium protects the immune system by helping to  activate available T cells.✓11 Selenium/ Vitamin C is an anti-oxidant✓12 which protects cells from damage.✓*13 This helps to prevent  infection✓*14 and may help to slow down the disease by keeping the  immune system healthy.✓*15
• Zinc improves the appetite.✓16
• As HIV/Aids weaken the immune system✓17, these nutrients are  important to strengthen it.✓18
• For a person with HIV/Aids, these nutrients will help to fight  infections✓19, improve well-being✓20, delay the development of full blown Aids✓21 and prolong life.✓22 (Any 4) (4)
  NOTE: *The explanation of an anti-oxidant can only be awarded marks ONCE. The  marks can be awarded for either the explanation of an anti-oxidant for vitamin A OR  selenium.
  Understanding, moderate (Focus, pages 84–85; Successful, pages 99–100,105)

3.6 South Africa often experiences periods of drought. Analyse how  droughts may affect food security and the South African economy  negatively. 

• Families that plant their own vegetables/ have their own livestock/ self sufficient may not have sufficient food to eat.✔1Families may have to  buy vegetables/ meat which will put extra strain on their disposable  income.✔2 
• A decline in food production may lead to increased food prices/ inflation.✔3 People/ the poor may not be able to afford enough food.✔4 If  less fruits/ vegetables are eaten, consumers may not be able to meet  their nutritional needs/ requirements,✓5 because their nutritional needs  are not met they may become ill which causes more strain on the  economy.✓6 
• Grants may be given which will result in strain on the economy.✓7
• A decline in food production may lead to food being imported from other  countries.✔8 This will lead to a further increase of food prices✓9 and  more people going hungry✔10 because imported prices can be  unaffordable.✔11  
• South Africa may not have enough food/ preserved fruit/ wine/ avocados/ maize/ dairy products to export to other countries✔12 thus  reducing the national income/ excise duty/ GDP (Gross domestic  product).✔13There may be less funds/ money available to support hunger/ poverty stricken families.✔14 
• If less food is produced farmers may earn less/ food factories may close  down,✔15 people/ farm workers will lose their jobs✔16 resulting in less  household income✔17 and less money to buy food. ✔18 With severe  drought famers cull/slaughter livestock as they cannot afford to feed the  animals/ stop farming.✔19 Workers become unemployed and move to  urban areas which is one of the biggest strains on food security currently, as there are not enough job opportunities.✔20 
• Food security statistics in South Africa reflects currently that food  insecurity in urban areas is larger than in rural areas.✔21  
• The inflation rate will increase.✓22
• There may be more unwanted fires,✓23 destroying farmland. 
• All the above leads to more food insecurity/ less food security.✓24 (Any 8) (8) 
  Analysing, difficult (Focus, pages 106–107, 177–178; Successful, pages128–130)   

[40]

QUESTION 4: CLOTHING 
4.1 Define the term dress code. 

• A dress code is a set of rules✓1 about the type of clothes the company  expects employees to wear to work.✓2
• A document drawn up by a company to specify✓3 the type of dress that  is acceptable for their employees.✓4
• A specific way a person should dress✓5 for a specific event at a specific  time.✓6
• What you are expected to wear✓7 at a certain time, place or  occasion.✓8
  (Any 2) (2) Remembering, easy (Focus, page 54; Successful, page 57) 

4.2 Write a paragraph to explain what eco-friendly fabrics are.   

Eco-friendly fabrics are grown/ produced/ manufactured in an environmentally  friendly way.✓1 Eco-friendly fabrics have a low carbon footprint.✓2 They are  grown/produced from crops that require few/ do not require pesticides/ 
chemicals✓3 to be grown/ during processing. They use less water✓4 and  energy✓5 to produce and process. They create less waste/ pollution.✓6 They  are made from renewable resources (bamboo/ hemp)✓7 such as plants that  yields good crops and requires less water.✓8 Organic textiles/ raw materials  are used.✓9 Natural plant-based/ no harmful/ toxic dyes are used when  manufacturing eco-friendly textiles.✓10 Some fibres are recycled✓11 reused✓12 to make new yarn thus reducing the need to manufacture new/ virgin fabrics/  fabric waste on landfills.✔13 Fabrics are manufactured in compliance with an  ethical, social responsible code of manufacturing conduct/fair-trade.✔14   (Any 6)  (6) 
NOTE: Deduct ONE mark if the answer is not written in a paragraph. 
Remembering, easy (Focus, page 61; Successful, page 67)

4.3 

4.3.1 Explain how the changing role of women in the work place has  a positive influence on fashion changes by referring to the  following factors: 
Economic factors 

• • When the economy grows it creates more job opportunities  for women/ more women work✓1 and they have money/ more  wealth/ they can afford✓2 to buy more clothes/ dress  themselves as they please✓3 and this stimulates fashion  change.✓4
  • More women work✓5 and need professional/ formal clothes  suitable for the workplace✓6 which leads to a positive change  in fashion.✓7
  • Because women are working, they become credit worthy,✓8 they buy more clothes✓9 and this stimulates fashion  change.✓10 (Any 2) (2)
    Applying, moderate (Focus, pages 49, 51; Successful, pages 53–54) 

4.3.2 Social factors 

• • Women travel more/ have more mobility✓1 and this creates a  need for comfortable clothes/ casual clothes✓2 which  stimulates fashion change.✓3
  • Women are more aware of their health/ body shape/ go to the  gym/ exercise✓4 and this influences the development of  sportswear.✓5
  • Women copy celebrities/ women in leadership positions whom they admire✓6 and fashion designers continually  develop new and innovative fashions to cater for the  changing needs.✓7 
  • Women attend corporate functions ✓8 and need formal  clothes,✓9 resulting in fashion change.✓10 
  • Cross cultural contact✓11 stimulates fashion change.✓12 (Any 2) (2) 
    Applying, moderate (Focus, page 49, 51; Successful, pages 53–54)
    NOTE: 'Stimulates fashion change' cannot be awarded a mark if it stands on its own.

4.4

4.4.1 Explain the optical illusions created by the use of colour in  this outfit. 

• • The two contrasting colours/ light colour used in the jacket✓1 visually cut the body in half/ two parts✓2 and create the  illusion that the woman is shorter.✓3 
  • The cream colour creates a horizontal line✓4 over the hips.  This creates the illusion that the hips are wider.✓5
  • The light jacket/ colour✓6 creates the illusion that the upper  body of the woman is bigger/ larger/ broader.✓7
  • The dark pants/ colour✓8 creates the illusion that the lower  body is smaller/ narrower and above the knee makes the  lower body shorter.✓9 (Any 4) (4)
    Applying, difficult (CAPS, Grade 11 work) 

4.4.2 Motivate why the jacket is a good choice as a basic item for a  working wardrobe. 

• • The jacket is suitable as it looks formal/ professional/  presentable/ sophisticated.✓1 
  • The style is classic✓2 and she will be able to wear it for a  long time/ timeless.✓3 
  • It is versatile/ suitable for summer and winter/ can be mixed and-matched✓4 with skirts/ trousers/ dress
  • The colour is neutral/ plain/ basic and can be mixed and  matched with other colours.✓5 
  • It fits well/ compliments the figure/ not revealing.✓6
  • The jacket is perceived to be good quality.✓7 (Any 4) (4)
    Evaluating, moderate (Focus, pages 53–58; Successful, pages 62–64) 

[20]

QUESTION 5: HOUSING 
5.1 Name TWO costs that are included in bond registration fees. • Attorney's fee✓ for drawing up the bond documents/registering the bond

• Taxes/ stamp duty✓ 
• Postage✓ 
• Deeds office (bond registration) fees✓ 
• VAT✓ (Any 2) (2)
  Remembering, easy (Focus, page 127; Successful, page 146) 

5.2 State who is responsible for making the rules and regulations in a  sectional title complex. 

• Body corporate✓ (1)
  Remembering, easy (Focus, page 123; Successful, page 141) 

5.3 Explain why monthly levies must be taken into account when buying  sectional title property. 

• Levies must be paid every month/ compulsory.✓1
• Levies may possibly increase/ rise every year/ due to inflation.✓2
• The buyer must budget✓3 to ensure that he/ she can afford to pay the  levies.✓4 (Any 2) (2)
  Understanding, easy (Focus, pages 122–123; Successful, pages 140–141) 

5.4 Explain the following terms 

5.4.1 Mortgage bond 

A mortgage bond is a loan/money✔1 that is secured on immovable  property / house / gives the right over a property.✓2  
OR 
Borrowed money / a loan✔3 made to the property owner where the  property is the security for the loan.✔4 
OR 
A document that the buyer signs to promise/agree that he / she will  pay back the loan✔5 made for a property/house.✓6 (Any 2) (2)
Remembering, moderate (Focus, page 126; Successful, page 145)

5.4.2 Deed of sale agreement 

• • A formal written legal/ signed agreement/ terms and  conditions✓1 between a buyer and seller/ both parties✓2 of  property.
  • The offer to purchase becomes the deed of sale✓3 after  signed by the buyer and seller/ both parties✓4 of property.  (Any 2) (2)
    Remembering, easy (Focus, page 125; Successful, page 142) 

5.5

5.5.1 Compare a cash payment with a credit card payment  

5.5.2 Explain TWO benefits of the following aspects of the gas  stove 

1. TWO Universal safety design features. 
   • Different sized burners✔1 because it is possible to  match the cookware to the size of the burner✔2 to  prevent accidents.
   • Child safety lock✔3 makes the gas stove safe for  children/reduces the risk of unsafe/ uncontrolled gas  supply.✔4
   • Safety feature that shuts down the flow of gas✓5 if the  flame is not ignited.✔6
   • Grid of the burner keeps cookware in place/ stable✔7 and prevents accidents.✓8
   • Knobs/ buttons on the front✓9 are easy/ safe✓10 to use.
   • Clear instruction manual✓11 makes it easy to  understand and follow safety procedures.✓12 (2 x 2) (4)
     Applying, moderate (Focus, page 136; Successful, page 159)
2. Human energy consumption 
   • Clear instruction manual makes it easy to follow  instructions✔1 and therefore easy to use the gas  stove.✔2
   • The grid can be lifted,✓3 so it is easy to clean  underneath.✓4 
   • It is quicker/faster than electricity✓5 and saves time.✓6 (Any 2) (2)
     Applying, moderate (Focus, pages 136–137; Successful, page 159)
3. Non-human energy consumption
   • Gas is cheaper than electricity, so it is cheaper to  operate.✓1
   • Different sized burners can be used which have a better  distribution of heat, making it more effective as less gas  is used.✓2 
   • The heat is instant/fast✓3, so less energy is required for  cooking.✓4
   • More environmentally friendly as less electricity is used  – less water is used in the generating of electricity ✓4 and the pollution caused by generating electricity is  reduced/ carbon footprint is smaller/less.✓5  (Any 2) (2)
     Applying, moderate (Focus, page 139; Successful, page 159) 

5.5.3 Describe the positive impact of gas on the natural environment.

• Gas is the cleanest fossil fuel,✔1 it does not give off smoke/  burns cleaner than coal/oil.✔2 
• Produces very low carbon dioxide/ emissions✔3 therefore less  (air) pollution.✔4 Gas is thus less harmful to the environment/  more eco/ environmentally friendly/ lower carbon footprint.✓5 
• Very little contribution to global warming/ climate change/ less  damage to the ozone layer.✔6 (Any 4) (4)
  Understanding moderate (Focus pages 169–170; Successful pages 190,194–195) 

5.6

5.6.1 Identify the two-year period during which a fixed interest rate  would have been more beneficial to a home owner with a  mortgage bond. 

• • 2007–2008/ 2009✓ (1)
    Remembering, easy (Focus, page 127; Successful, page 145)

5.6.2 Give reasons for your answer to QUESTION 5.6.1 

• • From 2007 – 2009, the interest rate increased/ rose  significantly/ by about 5%.✓1 
  • Fixed interest rates mean that the home loan repayments  remain constant/ did not change✓2 and the borrower is  protected against upward fluctuations.✓3 (Any 2) 
    OR
  • If a homeowner had a fixed interest rate in 2007, interest rates would have remained the same/at about 7%✓4 and the monthly repayments would have stayed the same/would not  have increased.✓5 (Any 2) (2)
    Applying, moderate (Focus, page 127; Successful, page 145) 

5.7

5.7.1 Discuss the disadvantages of renting out the house for Mr  Bones. 

• • Mr Bones is responsible for paying rates/ taxes✓1 and  maintenance/ repairs.✔2
  • Tenants may not have the same pride✔3 as Mr Bones and  damage the property which could result in more expenditure to  fix damaged items/ untidy tenants✔4 
  • Mr Bones lost income in the long run✔5 because tenants did  not pay a deposit/ tenants moved out without prior notice✔6 that he could have used for repairing damages✔7 to the  property. 
  • Mr Bones struggled to get tenants willing to occupy the house  for a long period.✓8 They did not follow the terms and  conditions for renting (contract/ lease)✓9
  • The house was in an old residential area/probably an old  house/ area with a high crime rate.✔10  (Any 4) (4)
    Applying moderate (Focus, page 122; Successful, page 137) 
    NOTE: The answer must relate to the scenario.

5.7.2 Mr Bones did not make a sound investment. Motivate the  statement. 

• • Buying a house in an old residential area is a risk there is a  high crime rate✔1 did not have a guarantee that he could  resell it.✔2
  • The old house requires more maintenance – is a risk.✓3
  • Buying a house is a long-term commitment/more  expensive,✔4 and he may not have been able to afford the  bond/loan repayments every month✔5 as he did not have  regular rental income.✓6
  • He sold the house for a price slightly higher than the  purchase price and that may not have been enough to  purchase another house/low return on investment✔7 or to  cover payment for capital gains tax.✓8 
  • The rent expected was too high for the area in which the  house was located.✔9 
  • He may have made a loss.✔10 Allowing tenants to move in  without paying the deposit was not a good investment.✔11 
  • He did not have a constant rental income.✓12
  • He spent money on repairing✓13 the house and that money  was never recovered when the house was sold for a small  profit.✓14
  • Mr Bones responsible for all costs incurred with the break in.✓15 (Any 8) (8)
    Analysing, difficult (Focus, page 122; Successful, page 140) 

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QUESTION 6: ENTREPRENEURSHIP 
6.1 State FOUR factors an entrepreneur must consider when choosing a  suitable product for small-scale production. 

• Availability of human skills✔ 
• Availability of financial resources/ start-up costs/ operational costs✔ • Available (work)space✔ 
• Available raw materials/ other resources✔ 
• Consumer appeal/ target market✔ (Any 4) (4) Remembering, easy (Focus, pages 10–13; Successful pages 16–20; CAPS document) 

6.2 Give ONE example of each of the following types of media that  could be used to advertise a product. 

6.2.1 Print media 

• • Newspaper/ flyers/ pamphlets/ brochures/ posters/ business  cards/ magazines/ price lists/ catalogues/ labels/ packaging✓   (Any 1) (1)
    Remembering, easy (Focus, page 31; Successful, page 30) 

6.2.2 Electronic media 

• • Internet/ Social media/ WhatsApp/ TV/ Radio/ Cinema/ Facebook/ Twitter/ Instagram/ Cell phone✓ (Any 1) (1)
    Remembering, easy (Focus, page 31; Successful, page 30) 

6.3 State the purpose of a financial feasibility study. 

• To discover the strengths✓1 and weaknesses✓2 of an existing business/  a new business idea. 
• To find out whether a business will be a success✓3 after taking into  consideration its total costs and probable revenues.✓4
• Will help the entrepreneur to decide objectively whether to proceed with  his/her idea of a business.✓5
• Will help to identify how the business idea could be changed/ adapted to  ensure profitability. ✔6
• To calculate how much start-up capital is needed✓7 where it can be  obtained✓8 the type of return/ profit on investment.✔9 (Any 2) (2) Remembering, moderate (Focus, page 35; Successful, page 35)

6.4 Give reasons why it is important for a business to calculate the  production cost and selling price of products accurately for sustainable  profitability. 

• It will lead to realistic/ competitive pricing✓1 which will lead to stimulation  of sales/ more sales,✓2 resulting in sustained profitability/sales. (2)
  Understanding, moderate (Focus, page 18; Successful, page 22) 

6.5

6.5.1 How does Nelly ensure that the design of the packaging for the  hair bands is appealing to customers. 

• • The envelopes are attractive✓1 as she uses coloured✓2 paper  and buttons✓3 to decorate the envelopes.
  • The envelopes are handmade/ unique.✓4
  • The envelopes can be re-used.✓5
  • The packaging is cheap✓6 as she uses recycled/ cheap  packaging materials.✓7
  • The packaging is environmentally friendly/ eco-friendly as she  uses recycled paper/ buttons/ raw materials.✓8
  • The packaging is easy to open and close/ well designed.✓9
  • The envelopes keep the hair bands clean.✓10 (Any 6) (6)
    Understanding, moderate (Focus, page 30; Successful, page 29) 

6.5.2

1. 1. Name the distribution method Nelly uses to sell the hair  bands. 

• 1. • Direct distribution/ selling✓ (1)
       Remembering, easy (Focus, page 33; Successful, page 32) 
  2. Discuss TWO advantages of the distribution method that  Nelly uses to sell her product. 

• • • There is no middle man that must be paid/ shares in the  profits✓1
    • Doesn't have to pay for a stall.✓2
    • Additional transport costs not required as she goes to  school every day.✓3 
    • She can interact directly with the customers/ talk to them/ build a relationship with them.✓4
    • Hair bands can be customised according to the needs of  the target market.✓5 (Any 2) (2)
      Applying, moderate (Focus, page 33; Successful, page 32)

6.5.3 Discuss ways in which Nelly maintains sustainable production.
Target market needs: 

• • Nelly produces hair bands in a variety of patterns to satisfy a  wider target market's needs.✔1
  • She crochets every day thus sustains the production of hair bands.✔2
  • She makes a profit that will sustain production.✔3
  • She buys stock with the profit earned which will sustain  production.✔4
  • Good record keeping keeps her informed and enhances  sustainable production.✔5  

Environmentally friendly:  

• • She uses coloured, recycled paper✔6 and she re-uses buttons  from old clothes✔7 for packaging, therefore reduces the use of  natural resources/ new paper/ new buttons.✔8
  • She uses patterns from magazines/ re-uses shoe boxes/ old buttons✓9, thus reducing waste✔10and pollution.✔11
  • She reused her grandmother's crochet hooks.✔12
  • Paper is biodegradable which enhances sustainability.✔13
  • No toxic material/ no need for extra paint/ colouring/ chemicals/ new buttons.✔14 This reduces harm to the environment/ reduces the carbon footprint.✔15 (Any 6) (6)
    Applying, difficult (Focus, page 26; Successful, page 2

6.5.4 Calculate the production cost and selling price of ONE hair  band. Show ALL calculations and round off the final amount  to the nearest rand. 

Yarn for one hair band = R36,00/5 = R7,20✓ 
Glue for 1 envelope = R25,00/20 = R1,25✓ 
Labour for one hair band = R6,00 
Total production cost for one hair band = R7,20 + R1,25 + R6,00 

 = R14,45✓ 
R14,45 x 65%✓ = R9,39✓ 
R14,45 + R9,39 = R23,84✓ 
 = R24,00✓ (7)
NOTE: The Rand (R) value must be indicated at the selling price. No mark for only  24,00. 
Applying, moderate (Focus, pages 35–40; Successful, pages 36–37) 

6.5.5 Analyse how Nelly ensures efficient production of quality  items. 

• • (Planning): Nelly plans her time/ production✔1 as she  performs all her duties and still produces quality products/ hair bands.✔2
  • (Adhering to specifications): She uses patterns from  magazines to produce beautiful hair bands,✔3 according to  specifications.✓4
  • (Quality control): She applies quality control✓5 as the hair bands are beautiful/ neatly crocheted/ finished off/ makes  her own envelopes/ packaging.✔6
  • (Tidy workspace): Yarn/ crochet hooks/ packaging/  envelopes/ buttons are stored in shoe boxes/ patterns in flip   file✔7 leaving her workspace tidy.✓8
  • (Stock control): Nelly's storage methods✓9 helps her with  stock control✓10 and makes it easy to determine how much  yarn/ envelopes/ buttons/ glue/ raw materials she needs.✔11 (Careful control of finances): she records her income and  expenses✓12 and she doesn’t spend much money on  packaging.✓13 (Any 8) (8)
    Analysing, difficult (Focus pages 15–19; Successful pages 21–23) 

[40] 
TOTAL: 200