BUSINESS STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

NOTES TO MARKERS 

1. Candidates’ responses for SECTIONS B and C must be in full sentences; however this would depend on the nature of the question. 
2. A comprehensive memorandum has 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 memorandum
   • Comes from another source 
   • Original
   • A different approach is used
     NOTE: SECTION A: 
     • There are no alternative answers.
     • Each question has only one correct answer.
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. 
6. In an indirect question, the theory as well as the response must be relevant  and related to the question. 
7. Incorrect numbering of questions or sub-questions in SECTIONS A and B  will be severely penalised. Therefore, correct numbering is strongly  recommended in all sections.
8. No additional credit must be given for repetition of facts. Indicate with an R.
9. 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 the marking guideline. Only the total for each question should appear in the  left-hand margin next to the appropriate question number.
10. SECTION B 
    10.1 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.
    10.2 If two facts are written in one sentence, award the candidate FULL  credit. Point 10.1 above still applies.
    10.3 If candidates are required to provide their own examples/views,  brainstorm this to come up with alternative answers.
    10.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 
    10.4.1 Where the number of facts are specified questions that require  candidates to ‘explain/discuss/describe’ will be marked as  follows:
    • Heading 2 marks
    • Explanation 1 mark (or as indicated in the marking  guideline).
      The ‘heading’ and ‘explanation’ are given separately to  facilitate mark allocation.
      10.4.2 If the number of facts is not specified, the candidate must be  informed by the nature of the question and the maximum  marks allocated.
      10.5 ONE mark will be awarded for answers that are easy to recall,  requires one-word answers, or is quoted directly from  scenario/case study. This applies to SECTIONS B and C in  particular.
11. SECTION C
    11.1 The breakdown of the mark allocation for the essays is as follows:

11.2 Insight consists of the following components: 

NOTE: 

1. 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, Conclusion,’ etc. in ‘Insight’ is not supported by an  explanation.
   4. With effect from November 2017 a candidate will be awarded a  maximum of ONE (1) mark for headings/sub-headings and ONE  (1) mark for interpretation (16 or more out of 32 marks). This  applies specifically to the analysis and interpretation part of  insight. 

11.3 Indicate insight in the left-hand margin with a symbol e.g. (‘L, A, S and/or O’). 
11.4 The components of insight are indicated at the end of the suggested  answer for each question. 
11.5 Mark all the relevant facts until the MAXIMUM mark in a subsection  has been attained. Write MAX. after maximum marks have been  obtained.
11.6 At the end of each essay indicate the allocation of marks for facts and  marks for insight as follow: (L – Layout, A – Analysis, S – Synthesis,  O – Originality) as in the table below. 

11.7 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.) 
11.8 If the candidate identifies/interprets the question INCORRECTLY, then  he/she may still obtain marks for layout. 
11.9 If a different approach is used by candidates, ensure that the answers are  assessed according to the mark allocation/subheadings as indicated in the  marking guideline. 
11.10

11.10.1 Award TWO marks for complete sentences. Award ONE mark  for phrases, incomplete sentences and vague answers. 
11.10.2 With effect of 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. 

11.11 With effect from November 2017, the maximum of TWO (2) marks for facts  shown as headings in the memo, will not necessarily apply to each  question. This would also depend on the nature of the question.

MEMORANDUM 

QUESTION 1  
1.1

1.1.1 C √√ 21 
1.1.2 A √√ Product penetration 
1.1.3 C √√ Promotes economic development, social justice, labour  peace and democracy in the workplace. 
1.1.4 D √√ unlimited liability and limited continuity 
1.1.5 A √√ dividends 
1.1.6 D √√ average 
1.1.7 D √√ Inclusivity 
1.1.8 B √√ allocate tasks according to the roles of team members
1.1.9 C √√ Public relations 
1.1.10 C √√ teamwork (10 x 2) (20) 

1.2

1.2.1 Tertiary √√ 
1.2.2 JSE √√ 
1.2.3 brainstorming √√ 
1.2.4 screening √√ 
1.2.5 fringe √√ (5 x 2) (10) 

1.3

1.3.1 H √√ 
1.3.2 F √√ 
1.3.3 E √√ 
1.3.4 A √√ 
1.3.5 C √√ (5 x 2) (10)

TOTAL SECTION A: 40

SECTION B 
QUESTION 2: BUSINESS ENVIRONMENT 
2.1 Porter’s Five Forces 

2.1.1 Competitive rivalry √√ 
2.1.2 Power of suppliers √√ 
2.1.3 Threat/Barrier to new entry √√ 
2.1.4 Power of buyers √√ 
2.1.5 Threat of substitution √√ (5 x 2) (10) 

2.2 Business sectors 

• Primary √ sector
• Secondary √ sector
• Tertiary √ sector
  NOTE: Mark the first THREE (3) only.
  (3 x 1) (3) 

2.3 Strategic management process 
OPTION 1 

• Have a clear vision, a mission statement √ and measurable/realistic  objectives in place. √
• Identify opportunities/weaknesses/strengths/threats √ by conducting  environmental scanning/situational analysis. √ 
• Tools available for environmental scanning √ may include a SWOT-/  PESTLE-/Porters Five Forces-analysis. √ 
• Formulate alternative strategies √ to respond to the challenges/scanning  results. √ 
• Develop (an) action plan(s), √ including the tasks to be done/deadlines to  be met/resources to be procured, etc. √
• Implement selected strategies √ by communicating it to all  stakeholders/organising the business's resources/motivating staff. √ 
• Continuously evaluate, √ monitor, √ measure strategies√ in order to take  corrective action. √
  Any other relevant answer related to a description of the strategic  management process.
  OR 

OPTION 2 

• Review √ vision statement. √
• Analyse/Re-examine √ mission statement. √ 
• Conduct an analysis √ using models such as PESTLE/PORTERS. √
• Formulate strategy, √ referring to strategies such as  defensive/retrenchment. √ 
• Implement strategy, √ using templates such as action plans. √ 
• Control of strategy √ to identify gaps in planning. √ 
• Evaluate strategy √ to identify deviations in implementation. √ 
• Take corrective action √ to ensure goals/objectives are met. √
  Any other relevant answer related to a description of the strategic  management process.
  NOTE: The steps may be in any order.
  Max: (6)

2.4.1 Roles of SETAs from the scenario 

•  Develop a sector skills plan.√
• Implement the plan.√ 
• Develop and administer learnerships.√
• Support the implementation of the National Qualifications  Framework.√
• Undertake quality assurance.√
  NOTE: Mark the first THREE (3) only. (3 x 1) (3) 

2.4.2 Purpose of SDA 

•  Develops the skills of people in South Africa√ in order to improve  productivity.√
• Invests√ in education and training of workers.√ 
• Encourages businesses√ to improve the skills of their workers.√ 
• Improves the chances of getting a job√ for previously disadvantaged  people.√ 
• Redresses imbalances of the past√ through education and training.√ 
• Provides for the implementation of strategies√ on a national, sector  and workplace basis.√ 
• Provides funds for skills development√ through the levy-grant scheme  and a National Skills Fund.√ 
• Encourages workers to participate√ in learning programmes.√ 
• Any other relevant answer related to the purpose of the SDA.
  Max: (6) 

2.5 Defensive strategies 
Retrenchment:√√ 

•  Business is restructured, √ therefore staff numbers are reduced. √ 
• Decreasing the number of product lines, √ may lead to the closing of  a department. √
  Strategy (2)
  Explanation (1)
  Submax. (3) 

Divestiture/Disinvestment: √√ 

• Unprofitable divisions √ of the business are sold/outsourced to  improve operational efficiency. √ 
• Unproductive assets are sold, √ to improve cash flow. √
  Strategy (2)
  Explanation (1)
  Submax. (3) 

Liquidation:√√ 

•  Sells all assets/stops operating √ to pay off debts. √ 
• Forced liquidation √ may be used as an option by creditors. √
  Strategy (2)
  Explanation (1)
  Submax. (3) 
  Any other relevant answer related to the defensive strategies.
  NOTE: Mark the first THREE (3) only.
  (3 x 3) (9)

2.6 Consumer rights 
Right to choose √√ 
Consumers have the right to: 

•  Choose suppliers √ and goods. √ 
• Shop around √ for the best prices. √ 
• Return goods √ that are unsafe/defective √ for a full refund. √
• Reject goods √ that are not the same as the sample marketed. √
• Cancel/renew √ fixed term agreements. √ 
• Request written quotations √ and cost estimates. √
  Any other relevant answer related to the consumers' right to choose.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to privacy and confidentiality √√ 

• Consumers have the right to stop/restrict √ unwanted direct marketing. √
• They can object √ to unwanted promotional e-mails and telesales. √
• They have the right to stop/lodge complaints √ about the sharing of their  personal details. √ 
  Any other relevant answer related to the consumers' right to privacy and  confidentiality.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to fair and honest dealings √√ 

•  Suppliers may not use physical force √ or harass customers. √
• Suppliers may not give misleading √ or false information. √ 
• Businesses may not promote √ pyramid schemes and chain-letter  schemes. √ 
• Businesses may not overbook/oversell goods/services √ and then not  honour the agreement. √ 
  Any other relevant answer related to the consumers' right to fair and  honest dealings.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to information about products and agreements/Right to  disclosure and information √√ 

• Contracts and agreements should be in plain language √ and easy to  understand. √ 
• Businesses should display prices √ which are fully inclusive disclosing all  costs. √ 
• Consumers may request the unit and bulk price √ of the same product. √ 
• If two prices for the same product are displayed, √ consumers should pay  the lower price. √ 
• Businesses should label products √ and trade descriptions correctly. √
  Any other relevant answer related to the consumers' right to information.
  Heading (2)
  Explanation (1)
  Submax. (3)

Right to fair/responsible marketing/promotion √√ 

• Businesses should not mislead consumers on pricing, √ benefits/uses of  goods. √ 
• Consumers may cancel purchases made through direct marketing √ within five  working days/cooling off-period. √ 
• All information related to the country of origin/expiry dates/ingredients of the  products √ should be disclosed. √
  Any other relevant answer related to the consumers' right to fair marketing/ promotion.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to fair value/good quality and safety √√ 

•  Consumers have the right to demand √ quality service or goods. √
• They have the right to return faulty items √ if the fault occurs within six months after purchasing the item. √ 
• Consumers may receive √ an implied warranty or a written warranty. √
  Any other relevant answer related to the consumers' right to fair value, good  quality and safety.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to accountability from suppliers √√ 

• Consumers have the right to be protected √ in lay-bye agreements. √
• Businesses should honour √ credit vouchers and prepaid services. √
  Any other relevant answer related to the consumers' right to accountability  from suppliers.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to fair, just and reasonable terms and conditions √√ 

• Businesses should provide consumers √ with written notices of clauses that may limit consumer rights. √
• Businesses may not market or sell goods √ at unfair prices. √
  Any other relevant answer related to the consumers' right to fair, just and  reasonable terms and conditions.
  Heading (2)
  Explanation (1)
  Submax. (3) 

Right to equality in the consumer market place√√ 

• Businesses should not limit access√ to goods and services.√ 
• Businesses may not vary the quality of their goods√ to different consumers.√ 
• Businesses may not charge different prices√ for the same goods/services.√
• Businesses should not discriminate√ when marketing their products and  services in different areas/places.√ 
  Any other relevant answer related to the consumers' right to equality in the  consumer market place.
  Heading (2)
  Explanation (1)
  Submax. (3) (3 x 3) (9)

2.7.1 Primary purpose of the BBBEE Act quoted from the scenario

• To address and enhance the economic participation of Black people in the South African economy. √ (1) 

2.7.2 Pillars of BBBEE quoted from the scenario 

•  Ownership √ 
• Management and control √ 
• Skills development √ 
• Enterprise and supplier development √ 
• Socio-economic development √
  NOTE: Mark the first THREE (3) only. (3 x 1) (3) 

2.7.3 Introduction of the BBBEE Act 

•  The purpose of BBBEE is to enable wealth √ to be spread more broadly. √
• Through BBBEE the government strives √ to involve all businesses (profit  and non-profit organisations). √ 
• BBBEE Act includes a wider group of previously disadvantaged people, √  such as black women, people with disabilities, youth and people living in  rural areas through social-economic strategies such as management,  ownership, employment equity, social responsibility, preferential procurement and enterprise development. √ 
• BBBEE Broad-based Black Economic Empowerment is a growth strategy  that targets inequality within the South African economy √ by encouraging  more black management, promoting employment equality, encouraging  skills training in businesses, nurturing black entrepreneurship and  building black SMMEs by means of affirmative action. √ 
  Any other relevant answer related to the introduction of Broad-Based  Black Economic Empowerment (BBBEE).
  Max. (4) 

2.7.4 Impact of the BBBEE Act on businesses 
Positives/Advantages 

•  Workers will be skilled √ because businesses are compelled to send them  for skills training. √ 
• Businesses that comply with BBBEE regarding the pillars √ will be rated  high on the BEE score card/may get government tenders. √ 
• Encourages businesses to address the demands for redress √ and equity  directly. √ 
• Provides a variety of business codes √ to improve employment equity. √ 
• Provides opportunities for/Empowers previously disadvantaged  employees √ through uplifting socio-economic processes. √ 
• Provides for human resources development √ through training and  development. √ 
• Promotes enterprise development, √ by developing entrepreneurial skills  of designated people to start their own businesses. √ 
• Businesses will have a good overview on how it is performing √ with  regard to the national requirements of the country. √ 
• A good BBBEE rating√ will improve the image of the business. √ 
• By focusing on BBBEE the business will show commitment √ towards the  social/educational/economic developments in the community/country. √
• Once rated, the business will understand how to develop BBBEE  strategies √ that will increase its BBBEE ratings on an annual basis. √ 
• Fronting is discouraged, √ as it may lead to the disqualification of a  business's entire score card/BBBEE status. √ 
• Share prices of BBBEE compliant businesses are likely to increase √ as  they attract more business. √ 
• Businesses that support Small, Micro, Medium Enterprises (SMMEs), √  may increase their own BEE ratings. √ 
• Complying with BBBEE requirements gives businesses  experience/exposure √ to be able to provide better employment  opportunities/staff development. √ 
  Any other relevant answer related to the positive impact of BBBEE on  businesses. 

AND/OR 
Negatives/Disadvantages 

• Businesses have to go through the process of having their BBBEE  compliance measured/verified √ by an independent BBBEE verification  agency. √ 
• Businesses that wish to do business with the government, √ must have  their BBBEE status assessed annually. √ 
• Provides for preferential procurement, √ so certain businesses may be  excluded from supplying goods/services. √ 
• Processes may lead to corruption/nepotism, √ if not monitored properly. √ 
• Many businesses have been disadvantaged due to BEE ratings √ as they  may not be able to meet all the criteria for scoring. √ 
• Processes and procedures may be costly for a business √ as there are  many legal requirements for scoring enough points to be compliant. √
• Businesses could experience large financial implications/penalties √ if  they do not comply with BBBEE. √ 
• Businesses will have to spend money in areas covered by the seven/five  pillars of BBBEE √ to obtain a good BBBEE rating. √ 
• Investment and ownership issues √ can cause unhappiness between  existing shareholders. √ 
  Any other relevant answer related to the negative impact of BBBEE on  businesses.
  Max. (6) 

[60]

QUESTION 3: BUSINESS VENTURES 
3.1 Forms of ownership 
3.1.1 Private company √√ 
3.1.2 Public company √√ 
3.1.3 Non-profit company √√ 
3.1.4 State-owned company √√ (4 x 2) (8) 
3.2.1 Excess 

•  The payment that needs to be made by the insured √ towards the  claim. √ 
• The amount that is not paid by the insurance company, √ but the  responsibility of the insured. √ 
• The insured makes this payment √ to prevent the insured from  claiming unnecessary. √
  Any other relevant answer related to excess.
  Max. (2) 

3.2.2 Premium 

•  A payment to the insurer √ for cover usually based on the insured  value of the goods and the risk involved. √ 
• The amount of money to be paid monthly/annually √ by the insured to  the insurer for indemnification. √
  Any other relevant answer related to a premium.
  Max. (2) 

3.3 Importance of insurance to businesses 

•  Transfers the risk from the business/insured √ to an insurance  company/insurer. √ 
• The 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. √ 
• Valuable 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. √ 
• Insurance can be taken against the life of partners’ √ in a partnership.√
• 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 the business against losses √ due to the death of a debtor. √ - Any other relevant answer related to the importance of insurance to  businesses.
  Max. (5)

3.4 Distinction between insurance and assurance 

NOTE: Mark the first example only. 
Distinction (4) 
Example (2) 
Max. (6) 
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 insurance or assurance only. 

3.5.1 Fixed deposit √ (1) 
3.5.2 A fixed deposit is a low risk investment, √ as investors are guaranteed√ of  the final payment from the financial institutions.√ (3)
3.5.3 Investment 

• R25 000 √ + R2 500 (R25 000 x 10%) = R27 500 √
  R27 500 + R2 750 (R27 500 x 10%) √ = R30 250 √
  R30 250 + R3 025 (R30 250 x 10%) √ = R33 275 √
  OR
• P (1+i)ᶰ √√
  25 000(1+0,1)³ OR 25 000(1,1)³ OR 25 000(1,331) √√
  = R33 275 √√

NOTE:

1. Allocate full marks (6) if the answer is correct and no  workings are shown.
2. If calculations were shown correctly, but the final  answer is wrong, award a maximum of FOUR (4)  marks.
3. If the answer is incorrect, award a maximum of TWO  (2) marks for the understanding of concept and  method. 
4. If there are no workings shown and the answer is  incorrect, allocate a ZERO mark.
   Max. (6) 

3.5.4 Differences between simple and compound interest 

Max. (4) 
NOTE:

1. The differences must be clear. 
2. Answer does not have to be in tabular format.
3. Award a maximum of TWO (2) marks if the difference is  not clear/Mark either simple or compound interest only. 
4. Accept paragraph style answer. 

3.6.1 Type of leadership style 

• Bureaucratic √√ (2)

Motivation 

• The owner of the business follows all the organisational rules and  policies systematically./He makes sure that employees adhere strictly  to the rules.√ (1) Max. (3)

3.6.2 Impact of the bureaucratic style in the workplace 
Positives/Advantages 

• Managers ensure that government policies/business  rules/procedures √ are always followed accurately. √ 
• Tight control measures implemented/followed √ ensure high quality  service delivery. √ 
• Ensures accountability √ to the general public/community. √ 
• Improves health and safety in dangerous workplaces, √ e.g. mines,  construction sites. √ 
• Followers know what is expected of them √ because of complete  instructions. √ 
• Strict control over systems/procedures, √ ensure high quality  output. √ 
• Any other relevant answer related to the positive impact of a  bureaucratic leadership style. 

AND/OR 
Negatives/Disadvantages 

•  Complicated/Official rules √ may seem unnecessary/time consuming. √
• Leaders/Directors may acquire power √ and can disregard/ignore  inputs from others. √ 
• Very little room for error, √ so workers feel they are not treated as  humans. √ 
• Lack of creativity/innovation/self-fulfilment √ may lead to  stagnation/decrease in productivity. √ 
• Any other relevant answer related to the negative impact of a  bureaucratic leadership style.
  Max. (6) 

3.7 Advantages of the transactional leadership style 

•  Encourages employees to work hard √ as they will receive rewards. √
• Improves employees' productivity/morale √ as they feel motivated/good  about themselves. √ 
• Business goals/objectives √ may be achieved. √ 
• Employees know exactly √ what is expected of them. √ 
• Disciplinary procedures √ are well communicated. √ 
• Any other relevant answer related to the advantages of the  transactional leadership style.
  Max. (6)

3.8 Personal-liability company (PLC) 
3.8.1 3.8.2 

[60]

QUESTION 4: BUSINESS ROLES 
4.1 Stages of team development 

• Forming √ 
• Storming √ 
• Norming √ 
• Performing √ 
• Adjourning/Mourning √ 
• Any other relevant answer related to the stages of team development. NOTE: Mark the first THREE (3) only.
  (3 x 1) (3) 

4.2 Advantages of creative thinking in the workplace 

•  Starts/Ignites business's process of problem solving, √ as there are  usually more problems and not enough solutions. √ 
• Better/Unique/Unconventional ideas/solutions √ is generated. √ 
• May give a business a competitive advantage √ if unusual/unique  solutions/ideas/strategies are implemented. √ 
• Complex business problems √ may be solved. √ 
• Productivity increases √ as business's management/employees may  quickly generate multiple ideas to utilise 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 once they solved a problem/contributed towards  the success of the business. √ 
• Business's management/employees may keep up √ with fast changing  technology. √ 
• Stimulates brain function of 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 in the workplace.
  Max. (6) 

4.3.1 Unethical business practice 

•  Tax evasion√√ (2)

Motivation 

•  Roy, the owner of True Blue Sports, does not record all the transactions  of his business as required by South African Revenue Services. √ (1) Max. (3)

4.3.2 Unethical business practices 

• Sexual harassment √
• Unauthorised use of workplace funds and resources √ 
• Unfair advertising √ 
• Pricing of goods in rural areas √ 
• Abuse of work time √ 
• Any other relevant answer related to unethical business practices.
  NOTE: Mark the first FOUR (4) only.
  (4 x 1) (4) 

4.3.3 Professional, responsible, ethical and effective business practice

• True Blue Sports 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 TBS  should conduct business professionally, responsibly and ethically.
  NOTE: Mark the first THREE (3) only.
  (3 x 2) (6) 

4.4 Criteria for successful teams 
Interpersonal attitudes and behaviour √√ 

• Members have a positive attitude of support and motivation √ towards  each other. √ 
• Good/Sound interpersonal relationships √ will ensure job satisfaction/  increase productivity of the team. √ 
• Members are committed/passionate√ towards achieving a common  goal/objectives. √ 
• Team leader acknowledges/gives credit to members √ for positive  contributions. √ 
• Any other relevant answer related to interpersonal attitudes and  behaviour of successful teams.
  Criteria (2) 
  Explanation (1)
  Submax.  (3)

Shared values/Mutual trust and support √√ 

• Shows loyalty/respect/trust towards team members √ despite differences. √
• Shows respect √ to the knowledge/skills of other members. √ 
• Perform team tasks with integrity/pursuing responsibility/meeting team  deadlines √ with necessary commitment to team goals. √ 
• Any other relevant answer related to shared values/mutual trust and support  of members in successful teams.
  Criteria (2)
  Explanation (1)
  Submax. (3) 

Communication √√ 

•  A clear set of processes/procedures for teamwork √ ensures that every  team member understands his/her role. √ 
• Ability to communicate well √ and make quick decisions. √ 
• Communicates with team members √ and allows for feedback. √
• Encourages discussion about the problem √ so that solutions can be found.  √ 
• Continuous review of team progress √ ensures that team members can  rectify mistakes/act pro-actively to ensure that goals/targets are reached. √
• Any other relevant answer related to communication in successful teams.
  Criteria (2)
  Explanation (1)
  Submax. (3) 

Co-operation/Collaboration √√ 

•  Clearly defined realistic goals are set, √ so that all members know exactly  what is to be accomplished. √ 
• Willingness to co-operate as a unit √ to achieve team objectives. √
• Co-operate with management √ to achieve team/business objectives. √
• Agree on methods/ways to get the job done effectively √ without wasting  time on conflict resolution. √ 
• All members √ take part in decision-making. √ 
• A balanced composition of skills/knowledge/experience/expertise √ ensures  that teams achieve their objectives. √ 
• Any other relevant answer related to co-operation/collaboration in  successful teams.
  Criteria (2)
  Explanation (1)
  Submax. (3) 

NOTE: 

1. Mark the first THREE (3) only. 
2.  Consider any other relevant criteria for a successful  team.
   (3 x 3) (9)

4.5 Difference between ethics and professionalism 

NOTE:

1. The differences must be clear. 
2. Answer does not have to be in tabular format. 
3. Award a maximum of THREE (3) marks if the differences is not clear./Mark either ethics or professionalism only. 
4. Accept paragraph style answer.
   Max. (6) 

4.6.1 Problem-solving technique 

•  Delphi technique √√ (2) 

Motivation 

•  To request a group of business experts to complete questionnaires. √ (1) Max. (3) 

4.6.2 Advantages of the Delphi technique 

•  A group of experts will be used √ without bringing them together. √
• Experts will give clear ideas/solutions √ on how to improve on low  productivity/ profitability. √ 
• Panel members/Experts can give new information √ on problems. √
• Information received from experts √ can be kept confidential. √ 
• It reduces noise levels in an office environment √ since there is no group  discussion. √ 
• Panel members/Experts need to reach consensus, √ so that the best  solution is found. √ 
• All experts are given an equal opportunity to give their opinions, √ so no one dominates the process. √
• Any other relevant advantages related to the use of the Delphi technique  in solving business problems.
  Max. (6)

4.7 Benefits of diversity in the workplace 

•  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 diversity in the  workplace.
  Max. (6) 

4.8 Ways in which the businesses can deal with diversity issues in the  workplace 
4.8.1 Age 

•  Promotions should not be linked to age, but rather to specific skills  set. √√ 
• A business must 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 the way in which businesses can deal with age as a diversity issue in the workplace.
  Max. (4)

4.8.2 Disability 

•  Provide employment opportunities for people with disabilities. √√ 
• Accommodate people with disabilities by providing facilities/ramps for  wheelchairs, √√ etc. 
• Ensure that workers with special needs are not marginalised/feel  excluded from workplace activities. √√ 
• Business should be well informed with how to deal with disabled  employees. √√ 
• Policies and programs should accommodate the needs of people with  disabilities. √√ 
• Create an organisational culture and climate that is conducive for people  with disabilities. √√ 
• Employees should be trained to deal with colleagues with disabilities. √√
• Bringing in external experts to help with disability and accommodation  issues. √√ 
• Ensure that employees with disabilities are treated fairly. √√ 
• Focus on job skills/work performance of the disabled, rather than their  disability/possible problems they may pose in the future.√√ 
• Any other relevant answer related to the way in which businesses can deal with disability as a diversity issue in the workplace.
  Max. (4) 

[60]

 QUESTION 5: BUSINESS OPERATIONS 
5.1 Methods of external recruitment 

•  Printed media, e.g. newspapers/flyers √
• Electronic media, e.g. radio/TV √ 
• Social media/Social networks/Internet/Business websites √ 
• Recruitment agencies √ 
• Walk-ins √ 
• Head-hunting √ 
• Professional associations √ 
• Networking √ 
• Educational/Training institutions √ 
• Posters/Bill boards just outside the business√ 
• Any other relevant answer related to the methods of external recruitment.

NOTE:

1. Mark the first THREE (3) only.
2. . Allocate a maximum of ONE (1) mark for examples on  each method.
   (3 x 1) (3) 

5.2 Placement procedure 

•  The business must outline the specific responsibilities of the new position, √  including the expectations and skills required for this position. √ 
• The business should determine the employee’s strengths, weaknesses,  interest, and skills √ by subjecting the employee to a range of psychometric  tests. √ 
• The business must determine the relationship between the position √ and the  competencies of the employee. √ 
• Any other relevant answer related to the placement procedure.
  Max. (6) 

5.3 Benefits of induction programme 

•  New employees who are familiar with the business's policies/procedures √  may easily adapt to his/her new work environment. √ 
• New employees learn more about the business √ and understand their role in  the business/what is expected in the job. √ 
• Increased productivity √ and quality of service/performance. √ 
• Minimises the need √ for on-going training and development. √ 
• Better/More focused training may be provided √ based on the results obtained  from the induction process. √ 
• New employees will understand √ rules/restrictions in the business. √
• New employees will know where everything is √ and who the supervisors/low level managers are for better communication purposes. √ 
• New employees may feel part of the team resulting √ in positive  morale/motivation. √ 
• Any other relevant answer related to the benefits of an induction programme  on businesses.
  Max. (6)

5.4.1 Employment contract 

• Employer – Real Clean LTD √ 
• Employee – Jane √ (2 x 1) (2) 

Motivation 

•  Real Clean LTD is the employer because “Real Clean LTD has  employed Jane as a cleaner.”√ 
• Jane is the employee because “Real Clean LTD signed an employment  contract with Jane.” √ (2 x 1) (2)
  Max. (4) 

5.4.2 Aspects of an employment contract 

•  Key performance areas/Duties and responsibilities √ 
• Code of conduct √ 
• Job description √ 
• Name and address of the business/employer √ 
• Name and address and other personal information of the  employee √ 
• Job title √ 
• Probation period √ 
• Bonus and salary/employee wages/salary and method of calculating the  wage/salary √ 
• Remuneration package/other payments the employee is entitled to √
• The date of commencement of employment √ 
• Details of termination of a contract/notice period √ 
• Rate of overtime payment √ 
• All deductions that will be made from the employee salary/wage must be  clearly indicated √ 
• Leave √ 
• Working hours √ 
• Any other relevant answer related to the aspects included in an  employment contract.
  NOTE: Mark the first FOUR (4) only. (4 x 1) (4) 

5.4.3 Reasons for terminating an employment contract 

•  Real Deal LTD may dismiss employees for valid reason(s), e.g.  unsatisfactory job performance, misconduct √√, etc.
• Real Clean LTD (employer) may no longer have work for redundant  employees/ cannot fulfil the contract/is restructuring. √√ 
• Real Clean LTD may retrench some employees due to insolvency/may  not be able to pay the employees. √√ 
• Employees decided to leave and resign voluntarily. √√ 
• An employee may have reached the pre-determined age for  retirement. √√ 
• Any other relevant answer related to the reasons for termination of an  employment contract.
  Max. (6)

5.5 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) 

5.6 Distinction between quality performance and quality management 

NOTE: 

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

5.7.1 TQM element 

•  Total Client/customer satisfaction √ (2)

Motivation 

• Customers always speak very highly of the quality of the clothing/Jabu  knows that the quality of her clothing determines her sales.√ (1) Max. (3)

5.7.2 Total client/customer satisfaction 
Positives/Advantages 

• Large businesses use market research/customer surveys √ to  measure/monitor customer satisfaction/analyse customers' needs. √ 
• Continuously promote √ a positive company image. √ 
• May achieve a state of total customer satisfaction, if businesses follow  sound business practices √ that incorporate all  stakeholders. √ 
• Strive to understand and fulfil customer expectations √ by aligning cross functional teams across critical processes. √ 
• Ensures that cross-functional teams understand its core competencies √  and develop/strengthen it. √ 
• May lead to higher customer retention/loyalty √ and businesses may be  able to charge higher prices. √ 
• Businesses may be able to gain access √ to the global market. √ 
• May lead to increased √ competitiveness/profitability. √ 
• Any other relevant answer related to the positives impact of total  client/customer satisfaction. 

AND/OR 
Negatives/Disadvantages 

•  Employees who seldom come into contact with customers √ often do not  have a clear idea of what will satisfy their needs. √ 
• Monopolistic companies have an increased bargaining power, √ so they  do not necessarily have to please customers. √ 
• Not all employees √ may be involved/committed to total client  satisfaction. √ 
• Any other relevant answer related to the negatives impact of total  client/customer satisfaction.
  Max. (6) 

5.8 PDCA model/cycle in the continuous improvement to processes and  systems 

•  Plan √ 
  • Businesses should identify the problem. √ 
  • Develop a plan for improvement to processes and systems. √ 
  • Answer questions such as 'what to do' and 'how to do it'. √ 
  • Plan the method and approach. √
    Submax. (2) 

•  Do √ 
  • Businesses should implement the change on a small scale.√ 
  • Implement the processes and systems.√
    Submax. (2) 
•  Check/Analyse √ 
  • Use data to analyse the results of change. √ 
  • Determine whether it made a difference. √ 
  • Check whether the processes are working effectively. √ 
  • Businesses should assess, plan and establish if it is working/if things  are going according to plan. √
    Submax. (2)
• Act as needed √
  • Institutionalise the improvement. √
  • Devise strategies on how to continually improve. √
  • If the change was successful, implement it on a wider scale. √ 
  • Continuously revise the process. √
    Submax. (2) 
• Any other relevant answer related to how businesses can use the PDCA  model/cycle to continuously improve their processes and systems. 

NOTE:

1. Do not award marks for the impact of continuous  improvement to processes and systems.
2. The step could be integrated in the explanation.
   Step (1)
   Explanation (1)
   Max. (8) 

[60]

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENT 
6.1 Provisions of the Basic Conditions of Employment Act (BCEA)

• Overtime √ 
• Working hours √ 
• Meal breaks and rest periods √ 
• Leave conditions √ 
• Working on public holidays √ 
• Legal requirements of the employment contract √ 
• Termination conditions of the employment contract √ 
• Remuneration √ 
• Provision for compliance √ 
• Any other relevant answer related to the provisions of the BCEA. 

NOTE:

1. Mark the first THREE (3) only.
2. . Allocate a maximum of ONE (1) mark for an example of a  specific provision. (3 x 1) (3) 

6.2 Steps of strategy evaluation 

• Examine the underlying basis of a business strategy. √√
• Formulate strategies to meet objectives, favourably. √√ 
• Implement strategies using action plans, √√ etc. 
• Look forward and backwards 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 strategic implementation in the internal and  external environments of the business. √√ 
• Any other relevant answer related to the steps in evaluating a strategy.
  NOTE: Mark the first THREE (3) only.
  (3 x 2) (6) 

6.3 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. √
• Covers all employees at the workplace √ if both parties meet all the  necessary safety provisions in the Act. √ 
• 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 dependant(s) will receive financial support. √ 
• Employers are protected from financial burden should an accident occur in  the workplace √ provided that the employer was not negligent. √
• Employees do not have to contribute √ towards this fund.√ 
• Employees receive medical assistance √ provided there is no other party  involved. √ 
• Any compensation to an employee/the family √ is exempt from income  tax. √ 
• The 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/respect √ as businesses view them as  valuable assets and not just as workers. √ 
• Any other relevant answer related to the positive impact 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 of COIDA on  businesses.
  Max. (6) 

BUSINESS VENTURES 
6.4 Factors to consider when making investment decisions 

•  Return on investment (ROI) √ 
• Risk √ 
• Investment term/period √ 
• Tax implications/Taxation √ 
• Inflation rate √ 
• Fluctuations/Volatility of investment markets √ 
• Liquidity √ 
• Personal budget √ 
• Track record/History/Performance of the business √ 
• Any other relevant answer related to factors that must be considered  when making investment decisions
  NOTE: Mark the first THREE (3) only. (3 x 1) (3) 

6.5 Types of shares 
6.5.1 Ordinary shares √√ 
6.5.2 Bonus shares √√ 
6.5.3 Founder shares √√ (3 x 2) (6)

6.6 Advantages of co-operatives 

•  Formed by persons having a common interest √ to allow more members to  work as a team. √ 
• Members may cast their votes to elect committee representatives √ that will  deal with day-to-day administration and can elect the most trustworthy  members. √ 
• Liability to members is limited √ to an amount equal to the nominal value of  the share for which the member has not paid and what he/she holds in the  co-operative. √ 
• Personal properties of members are free from risk √ because of limited  liability. √ 
• There is no middleman between the co-operative and its suppliers/  customers/clients √ which may lead to profit maximisation. √ 
• Easy and less complicated to form this business √ as there is very  little/simple legal requirements. √ 
• Registered co-operatives formed by previously disadvantaged people may  obtain support from the government √ in the form of government tenders. √ 
• It is a legal person apart from its members √ and can enter into contracts in  its own name. √ 
• Auditing financial statements is legally required, √ so trustworthy reports are  prepared in accordance with co-operative principles. √ 
• Any other relevant answer related to the advantages of co-operatives. Max. (6) 

BUSINESS ROLES 

6.7.1 Well-being of employees 

•  DE must ensure fair wages/salaries for workers based on the nature of work  and prevailing economic conditions in the markets. √√ 
• Working conditions must not only consider safety, medical and canteen  facilities, but also benefit like housing leave, retirement etc. √√ 
• Fair bonuses, based on business earnings, should be paid as  acknowledgement for hard work and commitment. √√ 
• Provision for employees’ participation in decision-making that affects  them. √√ 
• Recreation facilities for employees should be provided. √√ 
• Physical, medical assessments should be offered annually to workers. √√ 
• Trauma debriefing, counselling or assistance to any employee who requires  these services should be readily available. √√ 
• Financial assistance may be offered in the case of any hardship caused  unexpected medical costs. √√ 
• Flexible working hours may be allowed to enhance productivity. √√ 
• DE must support the programmes for employees infected and affected by  HIV/Aids may be offered. √√ 
• Childcare facilities should be available on the premises for working mothers  in the business √√ 
• Any relevant answer related to ways in which DE can contribute towards the  well-being of their employees.
  Max. (8)

6.8 Causes of conflict in the workplace 

•  Lack of proper communication between leaders and members √ 
• Differences in backgrounds/cultures/values/beliefs/language √ 
• Limited business resources √ 
• Different goals/objectives for group/individuals √ 
• Personality differences between group/individuals √ 
• Different opinions √ 
• Unfair workload √ 
• Ill-managed stress √ unrealistic expectations √ 
• Poor organisation/leadership/administrative procedures and systems √ 
• Confusion about scheduling/deadlines √ 
• Ignoring rules/procedures √ 
• Misconduct/Unacceptable behaviour √ 
• High/Intense competition/Competitiveness √ 
• Poor communication √ 
• Unclear responsibilities √ 
• Distracted by personal objectives √ 
• Constant changes in the workplace √ 
• Unfair treatment of workers/Favouritism by management/Discrimination √
• Lack of trust amongst workers √
• Any other relevant answer related to the possible causes of conflict in the  workplace.
  NOTE: Mark the first THREE (3) only. (3 x 1) (3) 

6.9 Dealing with difficult people 
OPTION 1 

•  Get perspective from others who have experienced the same kind of  situation to be able to understand the difficult employee. √√ 
• Act pro-actively if possible, as a staff/personnel problem is part of a  manager's responsibilities. √√ 
• Regular meetings with supervisors/departmental heads should help to  identify difficult/problem behaviour. √√ 
• Ask someone in authority for their input into the situation. √√ 
• Identify the type of personality which is creating the problem. √√ 
• Meet privately with difficult employees, so that there are no distractions from  other employees/issues. √√ 
• Make your intentions and reasons for your actions known so that they will  feel at ease. √√ 
• Employees should be told what specific behaviours are acceptable by giving  details about what is wrong/unacceptable and also an opportunity to explain  their behaviour. √√ 
• A deadline should be set for improving bad/difficult behaviour. √√ 
• The deadline date should be discussed with the employee and his/her  progress should be monitored/assessed prior to the deadline. √√ 
• Guidelines for improvement should be given. √√ 
• Do not judge the employee, but try to understand him/her/Understand the  person's intentions and why they react in a certain way. √√ 
• Keep communication channels open and encourage employees to  communicate their grievances to management. √√ 
• Build rapport/sound relations by re-establishing personal connection with  colleagues, instead of relying on e-mails/messaging/social media.√√ 
• Help difficult employees to be realistic about the task at hand. √√
• Remain calm and in control of the situation to get the person(s) to  collaborate. √√ 
• Treat people with respect, irrespective of whether they are capable/ competent or not. √√ 
• Sometimes it may be necessary to ignore but monitor a difficult person. √√
• Identify and provide an appropriate support program to address areas of  weakness. √√ 
• Any other relevant answer related to managing difficult employees.
  NOTE: Mark the first TWO (2) only. (2 x 2) (4) 

AND/OR 
OPTION 2 (Personalities) 

NOTES (applicable to OPTION 2): 

1. Allocate a maximum of TWO (2) marks for only identifying the type  of personality without a strategy. 
2. Allocate TWO (2) marks for indicating the strategy without  identifying the type of the personality/Take particular note of  overlap of strategies.
3. Mark the first TWO (2) only. (2 x 2) (4)

BUSINESS OPERATIONS 
6.10 Remuneration 

NOTE: 

1. The distinction must be clear.
2.  Allocate a maximum of TWO (2) marks if distinction is not  clear./Mark either piecemeal or time-related remuneration  only.
   Max. (4) 

6.11 Impact of TQM if poorly implemented 

• 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 the business. √ 
• 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 of TQM if poorly  implemented.
  Max. (5)

6.12 Quality indicators of the administration function 

•  Fast and reliable data capturing and processing systems. √√
• Supply reliable information to management on time. √√ 
• Make relevant information available for quick decision-making. √√ 
• Handle complaints quickly and effectively. √√ 
• Use modern technology efficiently. √√ 
• Implement effective risk management policies to minimise business  losses. √√ 
• Quality assurance and control evaluations are recorded accurately. √√
• All documentation is kept neatly and orderly in a safe place. √√ 
• Easy to recall/find information/documentation. √√ 
• Financial documents are kept up to date and recorded accurately. √√
• All systems and processes are documented. √√ 
  Any other relevant answer related to quality indicators for the  Administration function. 
  NOTE: Mark the first THREE (3) only. (3 x 2) (6)

[60] 

TOTAL SECTION B: 180

SECTION C 
QUESTION 7: BUSINESS ENVIRONMENT 
7.1 Introduction 

• Many consumers overspend when buying on credit. √ 
• The National Credit Act was put in place to improve the debt of both  businesses and consumers. √ 
• The Act ensures that credit is used in a way that adds value to customers' lives. √ 
• If consumers/customers are not using credit carefully, they may become  over-indebted. √
  Any other relevant introduction relating the National Credit Act.
  Max. (2) 

7.2 Purpose of the National Credit Act 

• Protects the consumer against unfair credit agreements, √ e.g. charging  interest rates well above the maximum stipulated by law. √ 
• Introduces a single functional system of regulations √ that will apply to all  credit activities. √ 
• Ensures that all credit providers and credit consumers √ are treated  equally. √ 
• Encourages responsible √ borrowing. √ 
• Justifies rights and responsibilities √ for consumers and credit providers. √
• Discourages careless granting of credit by service providers √ to  unsuspecting consumers. √
• Regulates the interest rate to be charged by service providers √ to  consumers. √ 
• Makes provision for the establishment √ of the National Credit Regulator  (NCR). √ 
• Makes provision for the establishment √ of a credit register (database). √
  Any other relevant answer related to the purpose of the National Credit Act. Max. (12) 

7.3 Rights of consumer in the National Credit Act 
The right to: 

•  Apply for credit √ and to be free from discrimination. √ 
• Obtain reasons √ for credit being refused.√ 
• Receive pre-agreement documentation √ before concluding any credit  transaction. √ 
• Fair √ and responsible marketing. √ 
• Choose which goods they will buy √ and return such goods if they are not  satisfied. √ 
• Receive Information √ in plain and understandable language. √ 
• Receive documents √ as required by the Act. √ 
• Access and challenge √ credit records and information. √ 
  Any other relevant answer related to consumer rights as stipulated in the  NCA.
  Max. (10)

7.4 Impact of NCA on business 
Positives/Advantages 

• Encourages √ more prudent buying from suppliers. √
• The whole credit process √ is transparent. √ 
• Lower bad debts, √ as credit is granted after proper credit checking. √
• Better cash flow, √ because there is control over debtors. √
• Increases cash sales √ as more customers tend to buy for cash. √
• Gains √ goodwill and loyalty from the consumers. √ 
• Business/Credit provider has the right to assess the creditworthiness √ of  clients/consumers. √ 
• Leads to more consumers through credit sales √ as they are now protected  from abuse. √
  Any other relevant answer related to the positive impact of the National  Credit Act to business. 

AND/OR 
Negatives/Disadvantages 

• Decrease in credit sales √ due to customer loss/economic decline  (downturn). √ 
• May not easily √ be granted overdraft/credit facilities. √ 
• Creditors may not pester customers √ to agree to a credit agreement  telephonically or through visits at home. √ 
• More working capital is needed √ due to higher administrative costs. √
• Businesses profit could decline, √ because they can no longer depend on  customers who had easy access to credit. √ 
• Misinterpretation of the Act √ may lead to huge losses, e.g. increased bad  debts. √
• Failure to abide by all the provisions of the Act √ might result in a lawsuit,  e.g. granting credit to a customer whose name is under review. √
• Paperwork and administrative processes √ are costly and time  consuming. √
  Any other relevant answer related to the negative impact of the NCA to  businesses.
  Max. (14) 

7.5 Compliance with NCA 

• Credit providers must submit an annual compliance report to the National  Credit Regulator. √√ 
• Credit providers also need to have procedures in place to comply with the  provisions of the Financial Intelligence Centre Act. √√ 
• To practice due diligence and inform borrowers of the laws and  consequences that could result from the borrowing money and over extending their credit. √√ 
• Credit providers must conduct a proper assessment of each consumer’s  ability to meet their obligations. √√ 
• Credit providers must provide successful applicants with a pre-agreement  statement. √√ 
• The pre-agreement statement should provide the consumer with enough  information to ensure they understand the obligations under the  agreement. √√ 
  Any other relevant answer related to ways businesses can comply with the  NCA.
  Max. (10)

7.6 Conclusion 

• Customers have the responsibility to take ownership of credit by honouring  the payments. √√
• This Act allows and enables responsible lending and eliminates reckless  borrowing. √√ 
  Any other relevant conclusion relating the National Credit Act.
  Max. (2) 

[40] 

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 

• Business managers need to present information about their business to  stakeholders. √
• A verbal presentation will focus on an oral/spoken presentation to the  directors. √ 
• The purpose of a verbal presentation is to exchange information as it involves  speaking and listening for both the presenter and the audience/ directors. √
• Visual aids combine pictures and sound that will enhance the quality of the  presentation. √ 
• Visual aids can help to convey a large amount of facts in a short time. √
• Choosing the most effective visual aids should capture the attention of the  directors and support the logical flow of the presentation. √
• When responding to questions/remarks, the presenter should not be  aggressive/defensive. √
  Any other relevant introduction related to presentations, visual aids,  responding to feedback and improving presentations.
  Max. (2) 

8.2 Aspects to be considered when designing a multimedia presentation 

• Choose a text/font that is clearly legible. √√
• Select a background that is not distracting/support easy reading. √√
• Choose images that support the facts. √√ 
• Create graphics to illustrate/analyse information. √√ 
• Add special effects to highlight the important facts/capture the attention of the  audience. √√ 
• Create hyperlinks to allow for Web browsing/for easy access to other files. √√
• Avoid using unnecessary/meaningless visual aids. √√ 
  Any other relevant answer related to aspects to be considered when  designing a multimedia presentation.
  NOTE: Mark the first FOUR (4) only. (4 x 2) (8) 

8.3 Evaluate visual aids 
PowerPoint presentation / Data projection 
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. √
• Variation of colour/background/sound immediately captures the attention of  the audience √ and retains their interest throughout the presentation. √
• Slides should only be used √ where they can enhance the facts or summarise  information. √ 
  Any other relevant answer related to the positive evaluation of a data  projector/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 evaluation of a data  projector/Power-point presentation.
  Submax. (8) 

Posters 
Positives/Advantages 

• Useful in promoting √ the logo/vision of the business. √ 
• It should be colourful/eye-catching/creative √ to support the core message  of the presentation. √ 
• May contain large illustrations/pictures/features of the products/key  concepts √ to emphasise detail, e.g. creative jewellery/unique features of  the jewellery. √ 
• Can make impact √ when placed strategically in/outside the venue. √ - Any other relevant answer related to the positive evaluation of posters. 

AND/OR 
Negatives/Disadvantages 

• May overpower/draw attention away from the presentation √ if it is too  big/not placed correctly. √ 
• May not always be useful in a small venue/audience√ as it can create a  'crowded' atmosphere. √ 
• Only focuses on visual aspects √ as it cannot always be combined with  sound/audio. √
  Any other relevant answer related to the negative evaluation of posters.
  Submax. (8)
  Max. (16) 

8.4 Ways to respond to feedback in a professional manner 

• Ann must stand 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. √√
• She must 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. √√
• Ann should address questions in an orderly manner. √√ 
  Any other relevant answer related to how Ann may respond to feedback in a  professional manner.
  Max. (12) 

8.5 Recommendations for improvement 

• Ann should revise objectives that were not achieved. √√ 
• Use humour appropriately. √√
• She should always be prepared to update/keep her information relevant. √√
• Reflect on any problem/criticism and avoid it in future presentations. √√
• Any information that Ann receives as feedback from a presentation should  be analysed and where relevant, incorporated/used to update/amend her  presentation. √√ 
• Reflect on the time/length of the presentation to add/remove content. √√
• Increase/Decrease the use of visual aids or replace/remove aids that did not  work well. √√ 
• Reflect on the logical flow of the format/slides/application of visual aids. √√
  Any other recommendation related to how Ann can improve on her next  presentation.
  Max. (10) 

8.6 Conclusion 

•  A well-prepared presentation creates a good impression and will attract  potential investors.√√
• A good presentation promotes the image of the business/owner/  management.√√ 
• Being professional during a verbal presentation and feedback/questions  session should contribute to the success of the presentation.√√ 
  Any other relevant conclusion related to presentations, visual aids,  responding to feedback and improving presentations.
  Max. (2) 

[40]

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 

• Businesses and their communities are interdependent and the one cannot do  without the other. √ 
• The interdependence can be improved if businesses and communities  recognise their social responsibility. √ 
• A responsible business should contribute towards the upliftment of the  community. √ 
• CSR improves the lifestyle and quality of life of their human resources and  caring for the environment by ensuring that they have the most efficient and  sustainable resources. √
• Businesses are corporate citizens and therefore have a responsibility towards  society. √ 
• CSI is a component of CSR, where social responsibility is the intension and  social investment is the action. √
• Through their CSR programmes businesses can focus on the triple bottom  line, which is making profits, uplifting/supporting the people and their  communities, and caring for the environment/planet. √ 
  Any other relevant introduction related to social responsibility, CSR, CSI and  triple bottom line.
  Max. (2) 

9.2 CSR and CSI 
Corporate social responsibility/CSR 

• The way a business conducts itself ethically and morally, √ regarding the use  of human resources, physical resources and their funds. √
• An business’s obligation √ to protect/promote the welfare of all shareholders,  who have an interest on or that will be affected by a business. √ 
• An obligation by a business to pursue √ sound long term goals for society. √
• Refers to any strategy used by a business to take responsibility √ for their  impact on society and the environment. √ 
• It is not a single action but rather an approach √ to doing business that guides  all decision making in the firm. √ 
• It is the way in which companies manage their business operations √ so that  it does not negatively affect all stakeholders. √
  Any other relevant answer related to Corporate Social Responsibility. Submax. (4) 

Corporate social investment/CSI 

• Refers to the contribution that the company makes √ to uplift, develop and  solve problems in the community. √
• Refer to any project undertaken by an organisation √ which is over and above  the normal business activities of the company and not directly aimed at  increasing profitability. √
• Programmes √ that will benefit the community and/or the environment, into  which time, skills, expertise and money are invested. √
  Any other relevant answer related to Corporate Social Investment. Submax. (4)
  Max. (8)

9.3 Relationship between social responsibility and triple bottom line Profit/Economic √√ 

• Triple Bottom line means that businesses should not only focus on profit/ charge high prices, √ but should also invest in CSI projects. √ 
• Businesses should not make a profit √ at the expense of its community. √
  Any other relevant answer related to the link between profit and social  responsibility.
  Heading (2)
  Explanation (2)
  Submax. (4) 

People/Social √√ 

• Business operations should not have a negative impact on/exploit √ people/ employees/customers. √
• Businesses should engage/invest in sustainable community programmes/  projects √ that will benefit/uplift communities. √ 
• Improve the life style/quality of life √ of their human resources/employees. √
  Any other relevant answer related to the link between people and social  responsibility.
  Heading (2)
  Explanation (2)
  Submax. (4) 

Planet/Environment √√ 

• Businesses should not exhaust resources/harm the environment √ for  production purposes. √
• They may support energy-efficient/eco-friendly √ products/programmes. √
• Recycle/Re-use waste, √ e.g. packaging from recycled material. √
  Any other relevant answer related to the link between the  planet/environment and social responsibility.
  Any other relevant answer related to the key aspect between the  relationship, between social responsibility and the triple bottom line.
  Heading (2)
  Explanation (2)
  Sub-max. (4)
  Max. (12)
  NOTE: The link should be clear in each of the three 'P's (people, planet   and profit).

9.4 Impact of CSR on businesses 
Positives/Advantages 

• Can serve as a marketing strategy √ and promote the image of the  business.√ 
• A company may have a competitive advantage, √ as it leads to good  publicity and an improved reputation. √
• May attract √ experienced employees √ /increase the pool of skilled  labour √ that would increase productivity. √ 
• It helps to attract and retain√ staff √ /Lower √ staff turnover √ as  employees’ health and safety √ are considered √ /Improves √ the health of  its employees.√
• The business enjoys the goodwill √ and support of communities. √
• CSR helps to attract √ investors. √
• If the CSR is aligned with company policies/vision/mission statement, √ it  shows accountability towards all stakeholders. √ 
• Businesses that support CSR through various programmes, √ encourages  and rewards employees √ if they get involved in CSI programmes.
• CSI programmes have better success rate if it is fully supported √ by top  management. √ 
• Sustained environmental consideration programmes may lead to reducing  costs, √ which can make funds available for other business operations. √
• If the corporate sector gets involved voluntarily in CSR, √ it is less likely  that Government will enforce the issue through legislation.√ 
• Businesses may enjoy √ tax rebates from SARS. √
  Any other relevant answer related to positive impact of CSR on  businesses. 

AND/OR 
Negatives/Disadvantages 

• The community may not support √ the enterprise √/ i.e. may not buy √ the  products of the enterprise. √ 
• Difficulty √ in adherence to legislation √ governing CSR. 
• Small and medium enterprises find it difficult √ to implement CSI  programmes. √ 
• CSI activities can distract √ businesses from their core business  functions. √ 
• Social involvement is paid from a company’s profit √ that could have been  used to lower prices to the benefit of customers. √
• Detailed reports must be drawn up, √ which can be time consuming. √
• Social spending reduces √ a company’s economic efficiency and makes it  less competitive. √
• It can increase financial risk, √ as programmes cost money and may  impact negatively on profits. √
• Company directors are accountable to shareholders, √ not to the  communities. √ 
• It is difficult to accurately measure √ the effectiveness of social  investment. √ 
• It is difficult to determine √ the exact needs of the community. √
• Most managers are not trained and lack experience √ to handle social  programmes. √
• Some shareholders/stakeholders might withdraw their support from the  company √ as they feel that social issues should be the government’s  responsibility. √ 
• Providing goods and services that meet the needs of the consumers is, √ according to some stakeholders, already socially responsible. √
• Some CSI programmes will be regarded as a public relations stunt, as  these programmes improve the business’s image √ without having a  sustainable/long term effect. √ 
• Shareholders, as the only real stakeholders, may suffer √ as their profits  are spent on CSR. √ 
• Employees may spend more time working √ on CSI programmes instead  of focusing on their core duties. √ 
  Any other relevant answer related to negative impact of CSR on businesses.
  Max. (16) 

9.5 Ways in which CSR projects can contribute to the community

• Charitable contribution towards NGOs/Businesses can donate blankets to  old age homes/orphanages/running soup kitchens. √√
• Involvement in community education/Build schools in communities/Offer  bursaries to needy students/Donate old computers to less privileged  schools/Provide/Support adult education and training in the local  community. √√ 
• Teach entrepreneurial skills/Offer support to individuals starting new  business ventures. √√
• Conduct skills development/job creation projects/Offering bricklaying  courses. √√ 
• Sponsor art and cultural programmes, such as school choirs. √√ 
• Support youth programmes, such as sport/recreational activities. √√
  Any other relevant answer related to the contribution of corporate social  investment (CSI) projects to the community. 

NOTE:

1. Mark the first FIVE (5) only.
2. Award a maximum of TWO (2) marks if the example  demonstrates the same practical way and contribution of  CSI projects to the community.
3. Award only ONE (1) mark for short/one word responses.
   Max. (10)

9.6 Conclusion 

• Despite challenges, most businesses do take their social responsibility  very seriously and contribute positively to communities/society. √√
• Successful CSI programmes will improve the general standard of living of  the community. √√
• CSI programmes will contribute positively if they are strategically planned  and not just be given hand-outs/contributions randomly. √√
• CSR is an obligation required by law and benefits both business and  society. √√ 
• CSR programmes and CSI projects allow businesses to influence people’s  lives in many ways. √√ 
• Businesses use CSR programmes and CSI projects to comply with the  laws and ethics. √√ 
• Triple bottom line allows businesses to consider the impact of their  operations on people, profit and the planet. √√ 
  Any other relevant conclusion related to social responsibility, CSR, CSI  and triple bottom line.
  Max. (2) 

[40] 

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 

• The human resources manager (HRM) is responsible for selecting and  appointing competent and skilled employees. √ 
• It is important that the HRM follows correct/fair procedures in selecting and  interviewing. √
• The HRM can appoint the best candidate if the selection and interviewing  procedures are properly applied. √ 
• The shortlisted applicants should be interviewed in order to evaluate their  suitability for the job. √
  Any other relevant introduction related to the recruitment, selection, job  description and specification and interviewing.
  Max. (2) 

10.2 Differences between job description and job specification 

Max. (8) 
NOTE:

1. Answer does not have to be in tabular format. 
2. The differences must be clear.
3. Award a maximum of FOUR (4) marks if the differences are not  clear./Mark either job description or job specification only.

10.3 Internal recruitment 
Positives/Advantages 

• The business recruits from existing employees √ through  promotions/transfer from inside the business. √
• Opportunities for promotion reward good work √ and motivate current  employees. √
• Staff morale and productivity increases √ if suitable staff members are promoted regularly. √
• Current employees understand √ how the business operates. √ 
• The business knows the candidate, √ his/her personality, strengths and  weaknesses. √ 
• Reliable/Key staff members are retained √ if they are promoted/  transferred within the business. √ 
• Detailed, reliable information on candidates √ can be obtained from super visors/employee records. √ 
• Recruitment process is faster and less expensive √ if the candidates are  known. √ 
  Any other relevant answer related to positive impact of internal recruitment on businesses. 

AND/OR 
Negatives/Disadvantages 

• Current employees may not bring √ new ideas into the business. √
• Promoting a current employee may cause resentment amongst √ other  employees. √
• The number of applicants is limited √ to current staff only. √
• Employees who do not really have the required skills for the new job √  may be promoted. √
• Current employees may need to be trained/developed before they can be  promoted, √ which can be expensive. √ 
• Staff that is not promoted may feel demotivated √ which may hamper  productivity. √ 
  Any other relevant answer related to negative impact of internal  recruitment on businesses.
  Max. (12) 

10.4 Selection procedure 

• Determine fair assessment criteria √ on which selection will be based. √
• Use the assessment criteria to assess all CVs/application forms √  received during recruitment√/Preliminary screening√ is done by sorting the  applications received according to the criteria for the job. √ 
• Check that applicants are not submitting false documents √ such as  forged certificates/degrees. √ 
• Make a list of all applicants √ who qualify for the post. √ 
• Screen and check reference, √ e.g. check applicants’ criminal records/ credit history/social media, √ etc.
• Conduct preliminary interviews √ to sift out applicants who qualify for the  job. √ 
• Inform all applicants√ about the outcome of the application. √
• Compile a shortlist√ of approximately five people. √ 
• Invite the shortlisted applicants/candidates √ for an interview. √
• Shortlisted candidates may be subjected to various types of selection  tests, √ e.g. skills test. √ 
• A written offer is made √ to the chosen candidate. √
  Any other relevant answer related to the selection procedure. 
  NOTE: Procedure can be in any order.
  Max. (14) 

10.5 Purpose of the interview and role as interviewer 
Purpose of the interview 

• To determine a candidate's suitability for the job. √√ 
• Match the information given by the applicant with the requirements of the  job. √√ 
• To get more information from the applicant. √√
• Evaluate the skills and personal characteristics of the applicant. √√
• Provides the applicant with the opportunity to find out more about the job  and the company/ask questions about the job/salary/working  conditions. √√ 
  Any other relevant explanation of the purpose of an interview.
  Submax. (6) 

Role of the interviewer 

• Peter must develop a core set of questions based on the required skills,  knowledge and ability required. √√ 
• Check the application and verify the CV for anything that may need to be  explained. √√ 
• Book and prepare the venue for the interview. √√ 
• Set the interview date and ensure that all interviews take place on the  same date, if possible. √√ 
• Inform all shortlisted candidates about the date/place of the interview. √√
• Notify all panel members conducting the interview about the date/place of  the interview. √√ 
• Allocate the same amount of time to each candidate. √√ 
• Introduce members of the interviewing panel to each  candidate/interviewee. √√ 
• He should make the interviewee feel at ease. √√ 
• Explain the purpose of the interview to the panel and the interviewee. √√
• 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. √√ 
• Peter must close the interview by thanking the interviewee for attending  the interview. √√ 
  Any other relevant answer related to the role of the interviewer.
  Submax. (6)
  Max. (12)

10.6 Conclusion 

• The goals and objectives of the businesses cannot be achieved without  qualified and skilled employees. √√
• Employees are the most important resource in any business and its  success is strongly influenced by recruiting and appointing quality  employees. √√ 
• A well prepared and organised interview process will results in identifying  and appointing the most suitable and deserving candidate. √√
  Any other relevant conclusion related to the recruitment, selection, job  description and specification and interviewing.
  Max. (2) 

[40] 

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