grade 11 november 2014 business...

NATIONAL SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2014

BUSINESS STUDIES

MARKS: 300 TIME: 3 hours

This question paper consists of 13 pages.

*IBUSTE*

2 BUSINESS STUDIES (NOVEMBER 2014)

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INSTRUCTIONS AND INFORMATION Read the following instructions carefully before answering the questions. 1. This question paper consists of THREE sections and covers all topics. SECTION A: COMPULSORY SECTION B: Consists of FIVE independent questions.

Answer any THREE questions of the five questions in this section.

SECTION C: Consists of FOUR questions. Answer any TWO of the four questions from this section.

2. Read the instructions for each question carefully and take particular note of

what is required.

3. Number the answers carefully according to the numbering system used in

this question paper.

4. Except where other instructions are given, answers must be written in FULL

SENTENCES.

5. Use the mark allocation and the nature of each question to determine the

length of each answer.

6. Start each answer to EACH question on a new page, for example;

QUESTION 2 – NEW PAGE, QUESTION 3 – NEW PAGE, etc.

7. Use the table below as guide to mark and time allocation when answering

questions.

SECTION QUESTION MARKS TIME A Multiple-choice

questions Choose the correct word Matching items COMPULSORY

1 40 30 minutes

B Answer any THREE of the five questions.

2 60 30 minutes 3 60 30 minutes 4 60 30 minutes 5 60 30 minutes 6 60 30 minutes

C Essay questions Answer any TWO of the four questions.

7 40 30 minutes 8 40 30 minutes 9 40 30 minutes

10 40 30 minutes TOTAL 300 180 minutes

(NOVEMBER 2014) BUSINESS STUDIES 3


SECTION A (COMPULSORY) QUESTION 1 1.1 Four possible options are provided as answers to the following questions.

Choose the correct answer and write only the letter (A–D) next to the question number (1.1.1–1.1.10) in the ANSWERBOOK, for example 1.1.11 E.

1.1.1 An ethical theory that states that if an action results in pleasure for

the majority of people, the action is regarded as correct. A Care theory B Utilitarian theory C Virtue-based theory D Deontological theory (2) 1.1.2 Which ONE of the following forms part of the macro environment? A The mission of the business B The economic environment C Customers D Suppliers (2) 1.1.3 A technique used when building a business mall to calculate the

minimum time needed for each task. A Gantt chart B Timeline C Critical patch analysis D Scheduling (2) 1.1.4 When a large manufacturer gets help from experts to forecast

consumer independently from each other, so that they can adjust production levels, they make use of this problem solving technique:

A Empty Chair technique B Force-field analysis C Stepladder technique D Delphi technique (2) 1.1.5 These are forms of business where there is no legal entity, and the

owner or owners pay tax in a personal capacity. A Private company and public company B Partnership and private company C Close corporation and partnership D Sole proprietorship and partnership (2)



1.1.6 The marketing mix consists of the following policies: A Product, price, distribution, advertising and publicity B Personal selling, sales promotion, advertising and publicity C Product development, design, packaging and trade marks D Pricing techniques, price determination, price adjustment and

demand and supply. (2) 1.1.7 The resource-investigator is a team role where the team who fulfils

the role explores opportunities and goes out to bring in new ideas by networking with others. Which team dynamics theory includes this team role?

A Jungian theory B Margerison McCann theory C MRT-1™ approach D Belbin’s role theory (2) 1.1.8 The process by which company representatives talk to applicants

and evaluate their skills, personality and appropriateness for a particular position.

A Recruitment B Selection C Induction D Interview (2)



1.2 Fill in the missing word(s) for each of the following. Write only the word(s) next to the question number (1.2.1–1.2.5) in the ANSWER BOOK.

1.2.1 … is calculated by dividing the total cost by the number of

manufactured goods. 1.2.2 When business support and uplift local communities, it is known

as … 1.2.3 The amount of franchisee pays the franchisor for the effort he or she

made to establish the business and use the idea is known a … 1.2.4 The stage in a team development where teams work together

effectively as a unit is known as … 1.2.5 … are costs that stay the same regardless of the number of units that

have been manufactured. 1.2.6 When a business pays for the use of an asset for a certain period of

time, instead of buying it, it is known as … 1.2.7 A document used to invite the public to buy shares and debentures in

a company is called a … 1.2.8 A … is a group of employees in a particular industry who come

together as a collective. (8 x 2) (16) 1.3 Choose a term from COLUMN B that matches a description in COLUMN A.

Write only the letter (A–F) next to the question number (1.3.1–1.3.4) in the ANSWER BOOK, e.g. 1.3.5 G.

COLUMN A COLUMN B 1.3.1 Procedures for claiming

temporary disablement A South African Bureau of

Standards 1.3.2 Exclusive rights granted to the

creator of an original work B Royalties

1.3.3 The way the body reacts to

situations that a person find difficult to control

C Compensation for Occupational Injuries and Diseases Act (COIDA), no. 61 of 1997

1.3.4 The official quality-assurance

body that sets and maintains standards of products

D Stress

E Labour Relations Act F Copyright (4 x 2) (8) TOTAL SECTION A: 40



SECTION B Answer any THREE questions from the five questions in SECTION B. The answers to EACH question must be on a NEW page. QUESTION 2 2.1 Read the following statement carefully and answer the questions that

follow. “First National Bank recently launched a new prepaid foreign currency

travel card called Traveller Exchange (“Travelling Gold”). South African travellers pay the current exchange rate for all purchases made using foreign currency (Euro, pound or US dollar) during their trip. Customers can pay for any goods and services purchased in any country they visit using the ‘Travelling Gold’ travel card.”

2.1.1 Identify the business environment being discussed in the extract

above. (2) 2.1.2 Name TWO components of the business environment

mentioned in QUESTION 2.1.1, as referred to in the case study. (2 x 2) (4)

2.1.3 Explain the extent of control the business has on the

environment referred to in QUESTION 2.1.1. (2 x 2) (4) 2.2 Read the case study below and answer the questions that follow. The owners of Hoho Plantations have decided to expand their business to

include a furniture manufacturing company, called Unathi Timber Products. They use their own vehicles to transport raw materials and finished goods. They approached their local branch of Nedbank to finance their expansion. The owners also decided to approach the insurance company Metropolitan to inform their workers about insurance.

2.2.1 Classify the enterprises mentioned in the case study according

to the various sectors they operate in. (4 x 2) (8) 2.2.2 Define the various sectors mentioned in QUESTION 2.2.1.

(3 x 2) (6) 2.2.3 Name THREE components of the business environment that

immediately surround the business. (3 x 2) (6)



2.3 “Leasing is one of the avenues of doing business.” Briefly explain the advantages and disadvantages of leasing for the

lessee. (4 x 2) (8) 2.4 Business encounter business related challenges and uncertainties on a

daily basis. To overcome these challenges they form business relationships with other interested parties that have similar problems.

Briefly outline any TWO types of business relationships. (12) 2.5 Tabulate the differences between partnerships and close corporations

under the following subheadings: 2.5.1 Legal formation procedures 2.5.2 Liability 2.5.3 Legal personality 2.5.4 Continuity 2.5.5 Sources of capital (5 x 2) (10) [60]



QUESTION 3 3.1 “The style of packaging used must be able to attract the attention of

prospective consumers.” 3.1.1 Name any TWO types of packaging. (2) 3.1.2 Briefly describe any THREE requirements of good packaging. (12) 3.1.3 “The prices of goods are influenced by the form of the market that the

business operates in.” Name and describe any TWO forms of markets. (8) 3.2 Read the case study of Z.K. Matthews Computers below and answer the

questions that follow. During a meeting on 30 September 2014, members Wilberforce, Patrick and

Nceba decided that certain functions had to be performed to capacitate the business. x The intended close corporation has to be registered by the first week of

October 2014 and additional capital of R20 000 has to be raised by the second week. (Member responsible – Patrick)

x Staffing is still a problem and a sales manager and support staff have to be recruited, interviewed and appointed within three weeks in time for the beginning of the business. (Member responsible – Nceba)

x The business intends to rent a building which has to be fully furnished. The leasing contract, as well as all communication lines (including telephone and internet connections) have to be finalised within two weeks. (Member responsible – Wilberforce)

x Stock has to be purchased, priced and displayed by the second week. (Member responsible – Patrick)

x In-service training will take place from week three to week five. (Member responsible – Nceba)

3.2.1 Study the information above and use it to create a Gantt chart. (12) 3.2.2 Explain the value of a Gantt chart as a tool to help a business achieve

its mission and organisational goals. (4 x 2) (8)



3.3 Read the following conversation and answer the question that follows. Dlamini: “How do you manage your business under such economic

conditions? Look what happened at Marikana. Unions like NUM and AMCO are destabilising our economy.”

Cyril: “My Bachelor of Commerce degree and the knowledge it provides,

is a source of strength and comfort. Also I have the necessary skills of managing and controlling a business and all this contributes to me being a successful businessman.”

What qualities is Cyril referring to? Explain any FIVE of these qualities. (10) 3.4 Explain any FOUR health and safety measures that can be implemented to

safeguard factory workers. (4 x 2) (8) [60]



QUESTION 4: BUSINESS ROLES 4.1 “Different ethical perspectives can affect the way in which business see

environmental sustainability.” 4.1.1 What is the difference between business and personal ethics? (4) 4.1.2 Mention FOUR principles of business ethics. (8) 4.1.3 There are numerous theories on ethics. List any FOUR ethics

theories. (8) 4.2 Give FIVE requirements that if followed, will lead to a successful

presentation. (5 x 2) (10) 4.3 “Problems within the business need to be solved as soon as possible.” 4.3.1 Describe SIX steps that must be followed when solving a problem.

(6 x 2) (12) 4.3.2 Mention any FOUR steps that can be used when applying the

Delphi technique when solving a problem. (4) 4.4 Explain any FOUR reasons why businesses in South Africa are involved in

social community programmes. (8) 4.5 “Good corporate citizenship involves a wide range of activities.” Describe any THREE principles of good business citizenship. (3 x 2) (6) [60]



QUESTION 5 5.1 Study the information below of Nicks Food (PTY) Ltd., a manufacturer of the

best meat-based meals. NICKS FOOD (PTY) LTD PRODUCTION COSTS FOR

OCTOBER 2014 Raw materials R140 000 Labour R185 000 Insurance R30 000 Rent R18 000 Cleaning materials R10 000 Packaging R8 000 Nicks Food manufactured 30 000 ready meals during the month of October

2014. 5.1.1 Calculate the variable costs for the month. (4) 5.1.2 Calculate the fixed costs for the month. (4) 5.1.3 Calculate the total production costs for the month. (3) 5.1.4 Calculate the production cost of one ready meat-meal. (3) 5.2 “The Employment Equity Act requires businesses to appoint people from all

groups to reflect South Africa’s demographics.” Mention any FIVE main purposes of the Employment Equity Act No. 55 of

1998. (5 x 2) (10) 5.3 “Once the applicant has been chosen and has accepted the position offered,

he/she has to be sign an employment contract.” 5.3.1 Describe the term employment contract. (2) 5.3.2 List any FIVE conditions that will be stipulated in the employment

contract. (5 x 2) (10) 5.3.3 Differentiate between job description and job specification. (2 + 2) (4) 5.4 Discuss FOUR causes of conflict which may arise between two or more

employees in the workplace. (12) 5.5 “An induction programme is a programme designed to orientate a new

employee in a workplace or business.” State any FOUR advantages of an induction programme. (4 x 2) (8) [60]



QUESTION 6 6.1 Mention the FOUR elements that can be found in successful teams. (8) 6.2 “Quality control ensures that a product of the right quality is produced

through constant monitoring of the production process.” Discuss FIVE advantages of quality control. (5 x 2) (10) 6.3 Mention any SIX techniques that can be used by leaders to manage

change. (6 x 2) (12) 6.4 “Bruce Tuckerman mentioned that there are four stages for team

development in order to achieve success with a project.” Describe the FOUR stages of team development. (12) 6.5 “Outsourcing is when a business purchases goods and/or services from a

third party rather than producing it themselves.” State any FIVE advantages of outsourcing for a business. (5 x 2) (10) 6.6 Mention any FOUR causes of stress in the workplace. (4 x 2) (8) [60] TOTAL SECTION B: 180



SECTION C Answer any TWO questions from the four questions from this section. NOTE: Start each question on a new page and write the exact number of the

question e.g. QUESTION 11. QUESTION 7 Unathi Timber Products sells furniture to Joy Furniture in King William’s Town. The raw material which is used by Unathi Timber Products is sourced from Hoho Plantations in Keiskammahoek. It is clear that economic sectors are interdependent on each other and do not function in isolation. Discuss each of these sectors and analyse their relatedness with each other in detail. Use examples throughout to support your answer. [40] QUESTION 8 Peter and John are two friends from the rural area of the Eastern Cape. They have studied business subjects. Peter had completed his bachelor of commerce from Rhodes University and John was running a butchery with his father. The two decided to establish their own business undertaking. Both these friends approached you to help them in choosing a suitable form of ownership. Prepare a presentation for them, clearly demonstrating how to choose the most appropriate form of ownership. Suggest a form of ownership where no distinction is made between the owners’ assets and the assets of the business. [40] QUESTION 9 “… although in Hathron’s case Mondi performed well, what will irk unions is that several top earners scored salaries of more than R20-million despite poor company performances.” Explain how trade unions use strikes to achieve better working conditions. Also explain the different types of strikes. What are the functions of a trade union? [40] QUESTION 10 Matsobane Matlwa, the chief executive officer of the South African Institute of Chartered Accountants, is leaving the institute to pursue his personal business interests. You are the human resources manager of the institute. Discuss in detail your recruitment, selection, placement and induction programme for the new chief executive officer. In view of current legislative requirements, briefly explain THREE matters that should be considered when filling this vacancy. [40]

TOTAL SECTION C: 80 GRAND TOTAL: 300

NATIONAL SENIOR CERTIFICATE

GRADE 11

NOVEMBER 2014

BUSINESS STUDIES MEMORANDUM

MARKS: 300

This memorandum consists of 26 pages.



NOTES TO MARKERS 1. Candidates’ responses for SECTIONS B and C must be in full sentences. This

will 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:

x Uses a different expression from that which appears in the memorandum x Comes from another source x Is correct and original x Relates to another applicable topic.

NOTE: There is no alternative answers for SECTION A. 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 as well as calculations.

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 will be penalised.

This is applicable to all the sections of the paper.

SECTION B 8. 8.1 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.

8.2 If two facts are written in one sentence, award the candidate FULL

credit. Point 7 above still applies.

8.3 If candidates are required to provide their own examples/views,

brainstorm this come up with alternative answers.

8.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 8.4.1 All the questions that require candidates to ‘explain/discuss/

describe’ will be marked as follows: x Heading 2 marks x Explanation 1 mark or as indicated in the memorandum The ‘heading’ and ‘explanation’ are given separately to facilitate mark allocation.



8.4.2 If the number of facts is not specified, the candidate must be informed by the nature of the question and the maximum marks allocated.

8.5 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.

SECTION C 10. 10.1 The breakdown of the mark allocation for the essays is as follows: Introduction

Maximum: 32

Content Conclusion Insight 8 TOTAL 40

10.2 Insight consists of the following components: Layout/Structure: (Is there an introduction, body, proper paragraphs

and a conclusion?) 2 Analysis and interpretation: (Learners’ ability to break down the

question/interpret it correctly to show understanding of what is being asked.) 2

Synthesis: (What parts of the question would you have included in the answer? Are there decisions made from a combination of relevant points?) Marks to be allocated using this guide: Mostly irrelevant facts: 0; Some irrelevant facts: 1; No irrelevant facts: 2 2

Originality: (Examples, recency of information, current trends and developments.) 2

TOTAL FOR INSIGHT: TOTAL MARKS FOR FACTS:

TOTAL MARKS FOR ESSAY (8 + 32)

8 32 40

NOTE: 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.

10.3 Indicate insight in the left-hand margin with a symbol e.g.

(‘L, A, S and/or O’).



SECTION A (COMPULSORY) QUESTION 1 1.1 1.1.1 D √√ Deontological theory (2) 1.1.2 B √√ The economic environment (2) 1.1.3 C √√ Critical patch analysis (2) 1.1.4 D √√ Delphi technique (2) 1.1.5 D √√ Sole proprietorship and partnership (2) 1.1.6 A √√ Product, price, distribution, advertising and publicity (2) 1.1.7 D √√ Belbin’s role theory (2) 1.1.8 D √√ Interview (2) 1.2 1.2.1 Unit cost √√ (2) 1.2.2 Corporate social investment √√ (2) 1.2.3 Royalties √√ (2) 1.2.4 Forming √√ (2) 1.2.5 Fixed cost √√ (2) 1.2.6 Leasing √√ (2) 1.2.7 Prospectus √√ (2) 1.2.8 Trade union √√ (2) 1.3 1.3.1 C √√ Compensation for Occupational Injuries and Diseases Act (2) 1.3.2 F √√ Copyright (2) 1.3.3 D √√ Stress (2) 1.3.4 A √√ South African Bureau of Standards (2) TOTAL SECTION A: 40



SECTION B QUESTION 2 2.1 2.1.1 Macro environment √√ (2) 2.1.2 x Economic component √√

x Technological component √√ (2 x 2) (4) 2.1.3 x Business has no control over this environment. √√

x Business can only adapt to these changes. √√ (2 x 2) (4) 2.2 2.2.1 x Hoho Planations √ – Primary sector √

x Unathi Timber Products √ – Secondary sector √ x Nedbank √ – Tertiary sector √ x Metropolitan √ – Tertiary sector √ (4 x 2) (8)

2.2.2 x Primary sector – involves the extraction and cultivation of raw

material from nature. √√ x Secondary sector – involves the processing, transformation of

raw material into useful commodities/products. √√ x Tertiary sector – is responsible for the distribution of goods and

services. √√ (Any 3 x 2) (6) 2.2.3 x Intermediaries √√

x Consumers/Customers √√ x Suppliers/Providers √√ x Competitors √√ x Unions √√ (Any 3 x 2) (6)

2.3 Advantages of leasing for lessee x The lessee can obtain the use of expensive assets without a large

financial outlay. √√ x The leasing company bears the risk of obsolescence and repairs. √√ x The landlord is responsible for maintenance and insurance of the

assets. √√ x The administration of leasing is simple and quick. √√ x Any other relevant advantage for the lessee. √√ (Any 2 x 2) (4)

Disadvantages of leasing for the lessee x The assets remain the property of lessor. √√

x The lessee is bound by the lease contract even when the business may not need the items any longer. √√

x There is a regular amount of rent to be paid. √√ x Any other relevant disadvantage of leasing. √√ (Any 2 x 2) (4)



2.4 Networking √√ x Networking to exchange information. √√

x To decrease duplication √√ x Leads to increased productivity/profit √√ x Entails negotiation and agreements with other influential

business/interested parties √√ x Help people of different levels and background to interact √√ x Serve as a source of encouragement and motivation. √√ x Any relevant answer.

Power relationship √√ x This relationship is beneficial to both parties. √√

x Is an association with individuals/other businesses that is seen as an important/influential entities. √√

x Also refer to the sharing of power/decision-making in a business. √√ x E.g. agreement between management and workers/trade union √√

Lobbying √√ x Attempt to influence conditions to suit their business activities through

other business, organisations and government structures. √√ x When a group of people get together seeking to influence others on a

particular issue. √√ x Communication with influential people to influence their

behaviour/decisions/legislation. √√ x From within business, e.g. workers solidarity on a labour issue and

from outside business, e.g. action groups forcing business to change its business practices. √√

Subheading = 2 marks Explanation = Max. 4 mark (Any 6 x 2) (12)

2.5 CRITERIA PARTNERSHIP CLOSE

CORPORATION 2.5.1 Legal formation No legal

Formalities/Partnership articles √

Founding statement was used. √

2.5.2 Liabilities of

members for debts Partners are jointly and severally liable for the debts of the business √

Limited liability, except where CC has more than ten members for six months or longer √



2.5.3 Legal personality Partners are jointly and severally liable for the debts of the business √

CC has own legal personality. Members have limited liability. √

2.5.4 Continuity No continuity √ Has perpetual

succession i.e. unlimited continuity √

2.5.5 Sources of capital Partners provide own

capital or may borrow capital √

Contribution of members √

(5 x 2) (10) [60] QUESTION 3 3.1 3.1.1 Types of packaging x Speciality packaging √√

x Packaging for double use √√ x Combination packaging √√ x Kaleidoscopic packaging √√ x Packaging for immediate consumption/unit packaging √√ x Packaging for re-sale/multiple packaging √√ x Environmentally friendly packaging √√ (Any 2 x 1) (2)

3.1.2 Requirements of good packaging x Catches the eye of the consumers √√ – young people are

attracted to packaging. √√ x Suits the product √√ – the nature of the product suits the way it

had been packed. √√ x Packaging can be tailor-made √√ – for a specific market. √√ x Promotes the image of the enterprise √√ – the packaging varies

with a popular brand. √√ x Packaging can make a product re-usable and easy to store √√

– meals are packed in an easily storable box. √√ x It should be easily distributed, handle, transport and use √√ –

the way it had been packed it suits any situation. √√ x Any other relevant requirement of packaging. (Any 3 x 4) (12)



3.1.3 Forms of market x Monopoly √√ – there is only one seller who determined the price of

the product √√ e.g. Eskom x Oligopoly √√ – there are only a few sellers of the product dominating

the market, each seller can insist on his own price, √√ e.g. Telkom and Neotel

x Monopolistic competition √√ – one seller rules or leads the market even though there are other sellers selling the same or similar product/services and consumers are often loyal to the seller’s brand. √√

x Perfect competition √√ – there are many sellers and buyers, prices are determined by supply and demand. √√ (Any 2 x 4) (8)

3.2 3.2.1 Gantt chart TASK WEEK

1 WEEK

2 WEEK

3 WEEK

4 WEEK

5 MEMBER RESPONSIBLE

Registration of

CC

√

Patrick √ Raising of

capital

√ Patrick √

Staffing √ Nceba √

Rental contract and commun-ication lines

√ Wilberforce √

Stock √ Patrick √

Training of staff

√ Nceba √ (12)

3.2.2 Value of the Gantt chart x Sets out what needs to be done. √√

x Sets due dates for tasks to be completed. √√ x Shows the people responsible for specific tasks. √√ x Indicates the manner in which tasks must be completed. √√ x Any other relevant value of Gantt charts. (4 x 2) (8)

3.3 Entrepreneurial qualities x Work with people √√

x Have a positive attitude √√ x Have skills, expertise and aptitude √√ x Prepared to take risks √√ x Creative thinker √√ x Self-motivated / passionate / ambitious person √√ x Any other relevant answer related to qualities of the entrepreneur. (Any 5 x 2) (10)



3.4 Health and safety measures x Systematic evaluation of the working environment. √√

x Endorsing preventative measures which eliminate reasons for illnesses in the workplace. √√

x Giving information on the subject of an employee’s health. √√ x Apply good business practices and economic principles for efficient use of

resources. √√ x Provide safety working clothes for workers. √√ x Warning signs to be visible to all users of the industry. √√ x Accept any relevant answer to health and safety measures. (Any 4 x 2) (8)

[60]



QUESTION 4 4.1 4.1.1 Difference between business and personal ethics x Business ethics is about operating a business in a transparent and

responsible manner, where care is taken not to harm the environment and to uplift the community. √√

x Personal ethics involves the individual choosing to conduct his/her life according to the law and in such a way that he/she is respectful, honest, fair and concerned about others. √√ (2 + 2) (4)

4.1.2 Principles of business ethics x Social responsibility √√

x Confidentiality √√ x Avoiding conflict of interest √√ x Looking after the environment √√ x Abiding by international law √√ x Due care √√ x Being objective and impartial √√ x Separate the auditing function from the consulting function √√ x Any other relevant principle for business ethics. (Any 4 x 2) (8)

4.1.3 Ethics theories x Utilitarian theory √√

x Deontological theory √√ x Virtue-based theory √√ x Care theory √√ x Relative theory √√ x Objectivity theory √√ x Rights approach √√ x Justice approach √√ x Consequential theory √√ x Common good approach √√ (Any 4 x 2) (8)

4.2 Requirements for a successful presentation x Must be well prepared √√

x Consider the audience or target group. √√ x Proper planning of the presentation. √√ x Must focus on the topic of the presentation √√ x Identify the method of presentation to be used √√ x Plan format of the presentation – introduction, body and conclusion √√ x Keep audience interested √√ x Include verbal and non-verbal information √√ x Keep to the allocated time √√ x Any other relevant answer related to the requirements of a good

presentation of business related information. (Any 5 x 2) (10)



4.3 4.3.1 Problem-solving steps x Identify and analyse the problem √√

x State desired outcomes / Identify various solutions √√ x Find the cause of the problem √√ x Evaluate these various solutions and choose the most

appropriate √√ x Implement the decision √√ x Evaluate the decision or results after implementation √√ x Accept any order (6 x 2) (12)

4.3.2 Steps in the Delphi technique x Carefully select a panel of experts to answer questionnaire √

x Experts answer the questionnaire anonymous √ x From the answers of the first questionnaire, a second

questionnaire is developed √ x This continues until the answer provided by the experts show that

they agree with one another. √ (Any 4 x 1) (4) 4.4 Social community involvement x Gain the trust of investors √√

x Increasing appeal as an employer √√ x Upliftment programmes can alleviate poverty and other socio- economic

issues. √√ x Establishment of social networks in communities which increases social

integration. √√ x Promotion of communities. √√ x Accept any other relevant reasons for social community programmes.

(Any 4 x 2) (8) 4.5 Good business citizenship x Social responsibility √√

x Environmental sustainability √√ x Economic prosperity √√ x Product stewardship √√ x Procurement √√ x Product access √√ x Dualistic economy, apartheid legacy, poverty and HIV and Aids. √√

(Any 3 x 2) (6) [60]



QUESTION 5 5.1 5.1.1 Variable costs Raw materials R140 000 √ + Labour R185 000 √ + Packaging materials R 8 000 √ = Variable costs R333 000 √ (4) 5.1.2 Fixed costs Insurance R30 000 √ + Rent R18 000 √ + Cleaning materials R10 000 √ = Fixed costs R58 000 √ (4) 5.1.3 Total production costs = Variable cost + Fixed costs Variable costs R333 000 √ + Fixed costs R 58 000 √ = Total production costs R391 000 √ (3) 5.1.4 Production costs per unit Total production costs R391 000 √ ÷ Number of ready meals R 30 000 √ = Unit cost of one ready meal R 13 √ (3) 5.2 Employment Equity Act x Promoting equal opportunities and fair treatment to all employees. √√

x Eliminating unfair discrimination. √√ x Ensuring equal representation of all population groups in all

occupational categories and levels in the workforce. √√ x Redress disadvantages in employment experienced by designated

groups. √√ x Implement affirmative action measures to redress the disadvantages in

employment experienced by designated groups. √√ x It provides for employees to refer unresolved disputes to the CCMA. x Empowers the Director-General to impose fines. √√ x Any other relevant purpose of the EEA. (Any 5 x 2) (10)



5.3 5.3.1 Employment contract x An employment contract is a formal written agreement between

an employer and the employee. √√ x Stating the various terms and procedures etc. regarding his/her

conditions of service and code of conduct. √√ (2) 5.3.2 Details in the employment contract x Name and address of the employer and the employee. √√

x Detailed job description √√ x The employee’s place of work √√ x Basic salary, working hours, and overtime √√ x Deductions from the salary – income tax, pension, UIF etc. √√ x Housing and car allowances √√ x Termination of contract √√ x Code of conduct. √√ x Any other relevant answer related to employment contracts.

(Any 5 x 2) (10) 5.3.3 Differentiate job description and specification x Job description – Describes the duties/job and responsibilities of

the employee specific to the job. √√ x Job specification – The knowledge, skills and experience a

person must have to be able to carry out the tasks described in the job description. √√ (2 + 2) (4)

5.4 Causes of conflict x Scarce resources √√ – when businesses have few resources. √

x Gender bias √√ – when management favours workers of a specific gender conflict can arise. √

x Weak leadership √√ – workers may become disillusioned with management. √

x Social factors √√ – workers from different cultures may have difficult working relationships if they are not properly informed about each other’s culture. √

x Lack of teamwork √√ – if a member of a team believes his views are better to that of colleagues. √

x Poor communication √√ – conflict may arise if workers are not kept informed of developments in the workplace. √

x Discrimination √√ – when one member is treated differently. √ x Unfair treatment √√ – when only one member can benefit from the

business √ x Personality clashes √√ – people who struggle to work together. √ x Different values √√ – working on Sundays √ x Any other relevant to causes of conflict when two or more employees

work together. Heading (2) Explanation/Example (1) (Any 4 x 3) (12)



5.5 Advantages of induction programme x It allows new employees to settle in quickly and become productive and

efficient employees. √√ x It increases motivation and enthusiasm. √√ x It reduces staff turnover, lateness and absenteeism. √√ x It develops leadership and guidance. √√ x It ensures that all rules and regulations are known and understood. √√ x It reduces the need for long-term training and skills development. √√ x Any other relevant answer to the advantages of induction programme.

(Any 4 x 2) (8) [60] QUESTION 6 6.1 Elements of a successful team x Purpose and goals √√

x Interdependence √√ x Commitment √√ x Accountability √√ (4 x 2) (8)

6.2 Advantages of quality control x Production costs are kept low and wastage is reduced. √√

x Customer satisfaction is improved as final goods and services meet quality standards and customer expectations. √√

x Workers are motivated because they know what is expected of them. √√ x Manufacturers provide salary and wages incentives for quality work and

implement strict quality-control measures. √√ x Quality control reveals poor performance by workers and faulty

machines. √√ x Quality assurance further enhances the performance of workers in that

they are motivated to work in an environment where quality is a priority. √√ (Any 5 x 2) (10)

6.3 Techniques to manage change x Involve everyone. √√

x Encourage support. √√ x Access the cultural landscape. √√ x Communicate the message. √√ x Prepare for the unexpected. √√ x Perseverance √√ x Reward. √√ x Transferring ownership to a working team. √√ x Knowing the environment. √√ x Showing a passion for their beliefs. √√ x Building strong teams. √√ x Challenging the existing knowledge within the organisation. √√(Any 6 x 2) (12)



6.4 Stages of team development x Forming √√ – getting to know each other. √

x Storming √√ – true characters starting to show, perhaps with first round of conflict. √

x Norming √√ – settling and reconciliation. √ x Performing √√ – working as a team towards the goal. √

Heading (2) Explanation/description (1)

(4 x 3) (12) 6.5 Advantages of outsourcing for the outsourcing business x The business’s personnel costs are lower. √√

x The outsourcing business does not have to employ expensive specialised staff. √√

x Its taxes are lower because the producers are independent contractors. √√

x Production time is shortened. √√ x There is flexibility to change third-party vendors whenever necessary. √√ x The vendor’s expertise is useful. √√ x The business can save money instead of spending it on specialised

equipment. √√ x Any other relevant advantage of outsourcing to outsource business.

(Any 5 x 2) (10) 6.6 Causes of stress in the workplace x Work overload / unrealistic targets. √√

x A lack of power or influence. √√ x Long working hours. √√ x Lack of finances, human resources or physical resources. √√ x Change in a job description, in management, in technology or in the

economy. √√ x Confrontations and conflict. √√ x An inadequately trained person. √√ x Any other relevant cause of stress in the workplace. (Any 4 x 2) (8)

[60]

TOTAL SECTION B: 180



SECTION C QUESTION 7 7.1 Introduction x There are three sectors involved in production and distribution, namely

the primary, secondary and tertiary sectors. √ x They operate interdependently. √ x All three is necessary for the smooth functioning of trade. √ x Any applicable introduction. (3 x 1) (3)

7.2 Primary sector x Involves the extraction of products / raw materials from natural

resources. √√ x Examples: Agriculture, forestry, fishing and mining. √√ (2 x 2) (4)

7.3 Secondary sector x Involves the processing of raw materials extracted from the primary

sector √√ x It consists of the manufacturing and construction industries. √√ x Goods manufactured in this sector are either finished or semi-finished √√ x Example: Mondi manufactures paper from wood. √√ (Any 2 x 2) (4)

7.4 Tertiary sector x Consists of distributors as well as services √√

x Facilitates the flow of goods and services from primary and secondary sectors to customers √√

x Adds value to goods and services, by bringing them to customers and making them available in the right quantities and at the right time.√√

x Examples: Traders, transport, communication, etc. √√ (4) 7.5 Interrelatedness/Links between the sectors 7.5.1 Primary Sector x In the primary sector, there are farmers who need seed and food

stock produced by other farmers. √√ x The primary sector is also dependent on the secondary sector for

manufactured goods such as machinery, equipment, etc. √√ x The primary sector needs transport and financing provided by the

tertiary sector. √√



7.5.2 Secondary Sector x The secondary sector is dependent on the primary sector for the

raw materials that are processed into more useful products, e.g. wool jackets. √√

x The secondary sector also rely on the tertiary sector for the provision of a variety of services e.g. warehouses for the storage of goods √√

x In the secondary sector, there are manufacturers of components that are used by other manufacturers’ in their final products. √√

7.5.3 Tertiary Sector x In the tertiary sector, retailers are dependent on wholesalers for

the supply of their stocks. √√ x The tertiary sector is also dependent on the secondary sector for

manufactured goods such as office machines, office furniture, stationery, etc. √√

x The various services of transport, communication, financing, insurance and advertising are provided to the primary and secondary sectors. √√

Backward link x Means that businesses in a sector buy products or services from

another sector’s business within the same sector. √√ x Example is foods bought by food manufacturers in the secondary

sector from farmers or coal bought by steel producers from coal mines in the primary sector. √√

x Manufacturer of clothing buys zips and buttons from other manufacturers. √√

Forward link x A forward link means that businesses in a sector sell their

products or services to another sector or to businesses within the same sector √√

x Example: Cotton sold by cotton farmers to spinning and weaving factories. √√

x Example of selling within a sector: Tyre manufacturers sell tyres to car manufacturers. √√ (Maximum of 4 marks per link) (4 x 5) (20)



7.6 Conclusion x Sectors do not operate in isolation. √

x The economy of the country would not operate without this interrelatedness of the economic sectors. √

x The participants in the economy they make sure of the real and money flow to boost our economy. √ (Any applicable conclusion) (Any 2 x 1) (2)

[40] BREAKDOWN OF MARKS Details Maximum Reduced Maximum Total Introduction 3 Sectors 20 Max. 12 30 Max.

32 Interrelatedness 30 Max. 20 Conclusion 2 INSIGHT*(LASO) Layout 2 Analysis,

interpretation 2

Synthesis 2 Originality,

examples 2

TOTAL MARKS 40 *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. [40]



QUESTION 8: BUSINESS OPPORTUNITIES 8.1 Introduction x There are factors which you take into consideration when deciding

about the form of ownership you want to establish. √ x You need also to look at the advantages and disadvantages of

establishing such a business. √ x It is wise to take an informed decision on the form of ownership you

want to establish. √ (Any 2 x 1) (2) 8.2 Factors to be considered before you choose the form of ownership. (2) 8.2.1 Registration of the business √√

x The formation of the form of ownership differs according to the

nature of the business. √ x Look at the complicated documents which must be completed in

order that you can run such a business √ x You need to look on how to register such a business. √ x Example in establishing a sole trader there are no legalities. √.:

8.2.2 Capital √√ x The nature of a business determines the size of the capital

needed to establish such a business. √ x For example with a close corporation the capital is limited to

what the members had contributed. √ 8.2.3 Capacity and growth √√ x Limited capital could restrict the long term growth of the

business. √ x The growth of the business depends on the members of the form

of ownership. √ x Loans can be provided by members, in others debentures can

be sold to gain extra capital. √ 8.2.4 Legislation √√ x The business does not have a separate legal entity, which

implies that the partners might be more cautious and less prepared to take risks.√

x Legislation guides the form of ownership you choose and the route to follow. √ Max. (12)



8.3 PARTNERSHIPS 8.3.1 Description x Formed by two (2) up to twenty (20) people who contribute

capital, skills, and labour, to run the business for the benefit of them all. √√

x No distinction is made between the personal assets of partners and those assets of the business or partnership. √√ Max. (4)

8.3.2 Advantages

x Partners have access to joint knowledge and skills. √√ x Workload and responsibility is shared. √√ x More partners can be added. √ x Resources are shared. √√ x It is cheap and easy to establish a partnership √√ x Up to twenty partners can contribute money or capital. √√ Max. (4)

8.3.3 Disadvantages x Personal savings at risks. √√

x Partners are jointly and severally liable for the debts of the business. √√

x Complicated management between partners. √√ x There can be a lack of capital and cash flow. √√ x Partners have unlimited liability for the debts of the business. √√ x When there is change in the partnership i.e. when one partner

dies the partnership dissolves and a new one must be formed. √√

x A partnership is not a legal person; it can be sued. √√ Max. (4) 8.3.4 Details of the Partnership agreement x Interest paid in capital of each partner. √√

x How disputes will be resolved. √√ x Salaries paid to partners. √√ x Name of partners and partnership. √√ x Type of business it will be. √√ x Proportion in which the profit or losses are to be divided. √√ x Amount of withdrawals and who has withdrawal rights. √√ x Leave agreements. √√ x Duties of each partner. √√ Max. (12)



8.4 Conclusion x A partnership is the suitable form of ownership for two partners. √√

x Choosing the suitable form of ownership is a crucial aspect as you have to consider the advantages and disadvantages. √√ Max. (2)

BREAKDOWN OF MARKS Details Maximum Reduced Maximum Total Introduction 3 Factors to be

considered 12

28 28 Max. 32

Partnership: advantages and disadvantages

12

Formation of the partnership

12

Conclusion 2 2 INSIGHT*(LASO) Layout 2 Analysis,

interpretation 2


examples 2

TOTAL MARKS 40 *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. [40]



QUESTION 9: BUSINESS ROLES 9.1 Introduction

x Workers have more bargaining power when they stand together. √ x Workers use trade unions as a tool for collective bargaining and

negotiating better working conditions. √ x They are the mouthpiece of the working class. √ x Trade unions are established by employees with the aim of regulating

conflict in the workplace. √ (Any 3 x 1) (3) 9.2 Role of trade unions

x Resolve employee grievances and disputes. √√ x Prevent the retrenchment of workers. √√ x Be part of the decision-making processes. √√ x Strengthening union power by increasing membership. √√ x Strikes are used to pressurise the governments or employers to change

policies. √√ x The object of collective bargaining is to obtain an agreement between

the trade union and employer which will prevent strikes. √√ x Strikes are used as a last resort during the negotiation processes. √√

(Any 10 x 1) (10) 9.3 Types of strikes

x Wildcat strike √√ – is where workers strike without the sanction of the

trade unions. √√ x General strike √√ – strikes that involve all workers. √√ x Sympathy strike √√ – is a small scale version of a general strike in

which one group of workers refuses to cross a picket line established by another. √√

x Partial strike or slowdown √√ – is a tactic that is also often used. √√ x Picketing Strike √√ – is when workers go picketing during certain times

to put pressure on negotiations. √√ x Sit-in strike √√ – is where the workers occupy the workplace so that no

working process can takes place. √√ (Any 12 x 1) (12)



9.4 Functions of the trade unions: x Protects the fundamental rights of the employees. √√ x Acts on behalf of members in dispute resolution. √√ x Monitors the implementation of matters affecting legislation. √√ x Trade unions strive to improve the working conditions of employees. √√ x Takes part in the collective bargaining process. √√ x Negotiates on behalf of membership for better wages and other

benefits √√ x Educating shop stewards on how to carry out their tasks in the

unions. √√ (Any 10 x 1) (10) 9.5 Conclusion

x Trade unions are playing an effective role in the well-being of members

or employees. √√ x Membership to the trade union is vital so the workers rights can be

protected. √√ (Any 2 x 1) (2) BREAKDOWN OF MARK ALLOCATION Details Maximum Reduced to Subtotal Total Introduction

28

2 Role of trade

unions 10

Different types

of strikes 12

28

Max. 32

Functions of trade unions

10

Conclusion 2 2 INSIGHT: Layout 2 Analysis,

interpretation

2


examples 2

TOTAL MARKS

40 *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. [40]



QUESTION 10 10.1 Introduction

x Businesses must follow a step-by-step process to ensure that the most

suitable and efficient candidates will be selected for a post. √ x It ensures that the aim and objective of the business are achieved and

proper planning of human resources is done. √ x Human resources management is one of the business functions that

contribute to the success of the business. √ x Any other relevant introduction related to human resource function. (Any 3 x 1) (3)

10.2 Recruitment

x The job analysis must be done, e.g. the job description and job

specification. √√ x Determine the key performance areas of the specific job. √√ x The human resources manager must decide on the specific source to be

used to advertise the position. √√ x The two kinds of sources are internal or external. √√ x The internal source is when the candidate is sourced from within the

business. √√ x The external source is when the business makes use of advertising,

educational institutions, head hunting, etc. √√ x Any other relevant answer about recruitment. (Any 2 x 2) (8)

10.3 Selection x The human resources manager must formulate short-listing criteria for

the applicants. √√ x Read through application forms and curriculum vitae (CV) from

applicants for the post. √√ x The HR manager compiles a short list of all candidates who meet the

requirements for the job. √√ x Inform unsuccessful candidates about the outcome of their

application. √√ x The HR manager invites the candidates who were short-listed to an

interview. √√ x Candidates may also ask to complete certain tests, e.g. personality tests,

aptitude tests and/or skills tests. √√ x The successful candidate is informed in writing, that he/she is

appointed. √√ x The successful candidate will receive a written contract and he/she must

sign it. √√ x Any other related answer to the selection process. (Any 4 x 2) (8)



10.4 Placement x This is the process whereby the new employee is placed in the right

job. √√ x When the employee who is newly appointed, is placed in the right job

he/she is more productive. √√ x Specific responsibilities of the position must be defined. √√ x The newly appointed employee may be required to complete

psychometric tests to determine his/her strengths or weaknesses. √√ x Any other related answer to placement. (Any 4 x 2) (8)

10.5 Induction

x This is the process whereby the newly-appointed employee works

efficiently with other colleagues in the business environment. √√ x Induction aims to create realistic expectations and ensure that he/she

becomes productive. √√ x Give the newly-appointed employee an opportunity to ask questions

about the work environment. √√ x Identify another worker as mentor to the new employee. √√ x Introduce the new-appointed employee to the rules, regulations and

code of conduct of the business. √√ x Any other relevant answer related to the induction process. (Any 4 x 2) (8)

10.6 Recent examples about legislation:

x Basic Conditions of Employment Act (BCEA) √√ e.g. when considering

applicants for a permanent or contract post OR compliance in terms of the act when drawing up an employment contract. √

x Affirmative Action √√ e.g. consider applicants from disadvantaged groups. √

x Employment Equity Act e.g. consider applicants in terms of race, gender and equity.

x Skills Development Act √√ e.g. consider development and training. √ x Any other relevant answer related to current legislation when filing a

vacancy. (Any 3 x 3) (9)



10.7 Conclusion x Businesses spend large amounts of money to ensure that the correct

employee is appointed. √√ x Therefore, the human resources manager must follow the prescribed

steps in order to appoint the most suitable candidate for the job. √√ x Any other relevant conclusion related to the steps in filling a vacancy. (Any 1 x 2) (2)

BREAKDOWN OF MARK ALLOCATION Details Maximum Reduced to Subtotal Total

Introduction 3

Recruitment 8

27

Selection 8

Placement 8 Induction 8 Matters regarding current legislation

9

27 Max. 32

Conclusion 2 INSIGHT Layout 2 Analysis, interpretation

2

Synthesis 2 Originality ,

example 2

TOTAL MARKS

40 *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. [40] TOTAL SECTION C: 80 GRAND TOTAL: 300

grade 11 november 2014 business...

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