You are on page 1of 28

JUNE COMMON EXAMINATION

GRADE 12 PAPER 2

BUSINESS STUDIES

JUNE 2023

MARKING GUIDELINES

This paper consists of 31 pages

Copyright reserved Please turn over


Business Studies P2 2 FS/June 2023

NOTES TO MARKERS

1. Candidates’ responses must be in full sentences for SECTIONS B and C. However,


this would depend on the nature of the question.

2. Comprehensive marking guidelines have 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 marking guidelines.
• Comes from another source.
• Original
• A different approach is used

NOTE: There is only ONE correct answer in 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 for calculation and moderation purposes.

6. 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.

7. In an indirect question, the theory as well as the response must be relevant and
related to the question.

8. Correct numbering of answers or sub-questions is recommended in SECTION A and


B. However, if the numbering is incorrect, follow the sequence of the candidate’s
responses. Candidates will be penalised if the latter is not clear.

9. No additional credit must be given for repetition of facts. Indicate with an R.

10. Note that no marks will be awarded for indicating Yes/No in evaluation type questions
requiring substantiation or motivation. (Applicable to SECTIONS B and C).

11. The differentiation between 'evaluate' and 'critically evaluate' can be explained as
follows:

11.1 When 'evaluate' is used, candidates are expected to respond in either a


positive/negative manner or take a neutral (positive and negative) stance, e.g.

Copyright reserved Please turn over


Business Studies P2 3 FS/June 2023

Positive: 'COIDA eliminates time and costs spent√ on lengthy civil court
proceedings.'√

11.2 When 'critically evaluate' is used, candidates are expected to respond in either
a positive/negative manner or take a neutral (positive and negative) stance. In
this instance, candidates are also expected to support their responses with
more depth, e.g. 'COIDA eliminates time and costs spent√ on lengthy civil
court proceedings√, because the employer will not be liable for compensation
to the employee for injuries sustained during working hours as long as it can
be proved that the business was not negligent.'√

NOTE: 1. The above could apply to 'analyse' as well.


2. Note the placing of the tick (√) in the allocation of marks.

12. The allocation of marks must be informed by the nature of the question, cognitive
verb used, mark allocation in the marking guidelines and the context of each
question.

Cognitive verbs, such as:

12.1 Advise, name, state, mention, outline, motivate, recommend, suggest, (list not
exhaustive) do not usually require much depth in candidates' responses.
Therefore, the mark allocation for each statement/answer appears at the end.

12.2 Describe, explain, discuss, elaborate, compare, distinguish, differentiate,


justify, devise, analyse, evaluate, critically evaluate (list not exhaustive) require
a greater depth of understanding, application and reasoning. Therefore, the
marks must be allocated more objectively to ensure that assessing is
conducted according to established norms so that uniformity, consistency and
fairness are achieved.

13. Mark only the FIRST answer where candidates offer more than one answer for
SECTION B and C questions that require one answer.

14. SECTION B

14.1 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.

NOTE:
1. This only applies to questions where the number of facts is specified.
2. The above also applies to responses in SECTION C (where applicable)

14.2 If two facts are written in one sentence, award the candidate FULL credit. Point
14.1 above still applies.

14.3 If candidates are required to provide their own examples/views, brainstorm this
at the District to finalise alternative answer and consult with the Province for
approval.

Copyright reserved Please turn over


Business Studies P2 4 FS/June 2023

14.4 Use of the cognitive verbs and allocation of marks:

14.4.1 If the number of facts is specified, questions that require candidates


to 'describe/discuss/explain' may be marked as follows:
• Fact 2 marks (or as indicated in the marking guidelines)
• Explanation 1 mark
The 'fact' and 'explanation' are given separately in the marking
guidelines to facilitate mark allocation.

14.4.2 If the number of facts required is not specified, the allocation of marks
must be informed by the nature of the question and the maximum
mark allocated in the marking guidelines.

14.5 ONE mark may be awarded for answers that are easy to recall, requires
one-word answers or is quoted directly from a scenario/case study. This
applies to SECTIONS B and C in particular (where applicable).

15. SECTION C

15.1 The breakdown of the mark allocation for the essays is as follows:

Introduction
Content Maximum: 32
Conclusion
Insight 8
TOTAL 40

15.2 Insight consists of the following components:

Layout/Structure Is there an introduction, body, proper paragraphs and a


conclusion? 2
Analysis and Is the candidate able to break down the question into
interpretation headings/sub-headings/interpret it correctly to show
understanding of what is being asked?
Marks to be allocated using this guide:
All headings addressed: 1 (One ‘A’)
Interpretation (16 to 32 marks): 1 (One ‘A’) 2
Synthesis Are there relevant decisions/facts/responses made based on
the questions?
Option 1 Only relevant facts: 2 marks (No ‘-S)
Where a candidate answers 50% or more (two to
four sub-questions) of the question with only
relevant facts; no ‘-S’ appears in the left margin.
Award the maximum of TWO (2) marks for
synthesis.
Option 2 Some relevant facts: 1 mark (One ‘-S’)
Where a candidate answers less than 50% (only
one sub-question) of the question with only OR
some relevant facts; one ‘-S’ appears in the lefts 2

Copyright reserved Please turn over


Business Studies P2 5 FS/June 2023

margin. Award a maximum of ONE (1) mark for


synthesis.
Option 3 Some relevant facts: 1 mark (One ‘-S’)
Where a candidate answers FOUR sub-questions,
but one/two/three sub-questions with no relevant
facts; one ‘-S’ appears in the left margin. Award a
maximum of ONE (1) mark for synthesis.
Option 4 No relevant facts: 0 MARK (Two ‘-S’)
Where a candidate answers less than 50% (only
one sub-question) of the questions with no relevant
facts; two ‘-S’ appears in the left margin. Award a
Zero-mark synthesis.
Originality Is there evidence of one example per topic/sub-topic based on
recent of information, current trends, and developments? 2
TOTAL FOR INSIGHT: 8
TOTAL MARKS FOR FACTS: 32
TOTAL MARKS FOR ESSAY (8 + 32) 40
NOTE:
- No marks will be awarded for contents repeated from the introduction
and conclusion.
- The candidate forfeits marks for layout if the words INTRODUCTION and
CONCLUSION are not stated.
- No marks will be allocated for layout, if the headings ‘INTRODUCTION
and CONCLUSION are not supported by an explanation.

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


(‘L, A, -S and/or O’).
15.4 The breakdown of marks is indicated at the end of the suggested answer/
marking guidelines to each question.

15.5 Mark all relevant facts until the SUBMAX/MAX mark in a subsection has been
attained. Write SUBMAX/MAX after maximum marks have been obtained.

15.6 At the end of each essay, indicate the allocation of marks for facts and marks
for insight as follows: (L – Layout, A – Analysis, S – Synthesis, O –
Originality) as in the table below.

CONTENT MARKS
Facts 32 (max.)
L 2
A 2
S 2
O 2
TOTAL 40

15.7 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.)

Copyright reserved Please turn over


Business Studies P2 6 FS/June 2023

15.8 If the candidate identifies/interprets the question INCORRECTLY, then


he/she may still obtain marks for layout.

15.9 If a different approach is used by candidates, ensure that the answers are
assessed according to the mark allocation/subheadings as indicated in the
memorandum.

15.10 15.10.1 Award TWO marks for complete sentences. Award ONE mark for
phrases, incomplete sentences, and vague answers.

15.10.2 With effect 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.

15.11 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.

Copyright reserved Please turn over


Business Studies P2 7 FS/June 2023

SECTION A

QUESTION 1

1.1 Multiple choice

1.1.1 B √√
1.1.2 A √√
1.1.3 C √√
1.1.4 C √√
1.1.5 A √√
(5 × 2) (10)

1.2 Complete statements

1.2.1 Road Accident √√


1.2.2 indemnity √√
1.2.3 grievance √√
1.2.4 mourning √√
1.2.5 professionalism √√
(5 × 2) (10)

1.3 Match columns

1.3.1 E √√
1.3.2 D √√
1.3.3 F√√
1.3.4 H √√
1.3.5 I √√
(5 × 2) (10)

TOTAL SECTION A [20]

BREAKDOWN MARK ALLOCATION


QUESTION 1 MARKS
1.1 10
1.2 10
1.3 10
TOTAL 30

Copyright reserved Please turn over


Business Studies P2 8 FS/June 2023

SECTION B

Mark the answers to the FIRST TWO questions only.

QUESTION 2: BUSINESS VENTURES

2.1 Functions of the JSE


- Gives opportunities to financial institutions such as insurance companies to
invest their funds in shares. √√
- Serves as a barometer/indicator of economic conditions in South Africa. √√
- Keeps investors informed on share prices by publishing the share prices daily.
√√
- Acts as a link between investors and public companies. √√
- Shares are valued and assessed by experts. √√
- Small investors are invited to take part in the economy of the country through
the buying/selling of shares. √√
- Strict investment rules √ ensure a disciplined/orderly market for securities. √√
- Raises primary capital by encouraging new investments in listed companies.
√√
- Mobilises the funds of insurance companies and other institutions. √√
- Regulates the market for trading in shares. √√
- Plans, research, and advises on investment possibilities. √√
- Ensures that the market operates in a transparent manner. √√
- Provides protection for investors through strict rules/legislation. √√
- Encourages short-term investment. √√
- Enhances job creation and increases economic growth/development. √√
- Facilitates electronic trading of shares/STRATE. √√
- Any other relevant answer related to the functions of the Johannesburg
Securities Exchange/JSE.
Max (6)

2.2 Differences bonus and founders’ shares


BONUS SHARES FOUNDERS’ SHARES
- Payment in the form of shares√ to - Issued to the founders√ and
shareholders. √ incorporation/promoters of the
company. √
- Issued as compensation√ for unpaid - They receive dividends√ after all
dividends. √ other shareholders were paid. √
- Shareholders will own more shares√ -
and collect more dividends in the future.

- Shareholders receive these shares√ -
without being required to pay for them.

- Any other relevant answer related to - Any other relevant answer
bonus shares. related to founder’s shares.
Sub-max (2) Sub-max (2)
NOTE:
1. The answer does not have to be in tabular format.

Copyright reserved Please turn over


Business Studies P2 9 FS/June 2023

2. The differences do not have to link but must be clear.


3. Award a maximum of TWO (2) marks if the differences are not
clear/Mark either over-insurance or under-insurance.
Max (4)

2.3
2.3.1 INVESTMENT DECISIONS MOTIVATION
Return on investment √√ The management of decided that
they want to receive returns in the
form of capital gains where the
asset appreciates in value over
time. √
Investment period √√ They also realise that the longer the
investment period the higher the
returns. √
Sub-max (4) Sub-max (2)
Max (6)

2.3.2 Investment decisions-making factors

Risk √√
- Refers to the chance that the invested amount may be reduced in
value/lost in total over a period of time√, due to unforeseen
circumstances. √
- The higher the potential return√, the higher the risk of a potential
loss. √
- Investing in shares has a higher risk√ than investing in a fixed
deposit. √
- Shares have low/medium risk√ over a longer investment period. √
- Shares with higher risks √ have a greater potential for higher returns.

- Ordinary shares have the highest risk√ as the investor may lose the
full/part of the investment when the company is
dissolved/bankrupt/liquidated. √
- Preference shareholders' risk is lower√, as they have preferential
claims on the assets of the liquidated company/may receive some
compensation before ordinary shareholders. √
- Share prices are linked to factors such as economic
conditions/operational success of the company√ which investors
cannot always control. √
- Share prices are volatile/unstable/unpredictable/may
increase/decrease sharply within hours√ which contribute to the risk.
- Any other relevant answer related to risk as a factor to be considered
when making investment decisions.
Factor (2)
Discussion (1)
Sub-max (3)

Copyright reserved Please turn over


Business Studies P2 10 FS/June 2023

Inflation rate √√
- Investors/People are affected by a high inflation rate√ because their
money/purchasing power decreases. √
- The return on investment should be higher√ than the inflation rate. √
- Inflation has a positive effect on some investments√ such as
- property/shares where the income will increase as inflation
increases. √
- Any other relevant answer related to inflation rate as a factor to be
considered when making investment decisions.
Factor (2)
Discussion (1)
Sub-max (3)

Liquidity √√
- An amount could be invested in a type of investment√ that can easily
be converted to cash. √
- It is used to describe the ease and speed√ with which investors can
convert an investment into cash. √
- Example: An investment in a savings account/unit trust will be easier
to convert into cash√ than an investment in a fixed deposit which is
usually deposited for a fixed period. √
- Any other relevant answer related to liquidity as a factor to be
considered when making investment decisions.
Factor (2)
Discussion (1)
Sub-max (3)

Taxation √√
- Refers to a compulsory payment√ made by citizens to the
government. √
- A good investment√ will yield good after-tax returns. √
- Income tax implications must be considered√ in order to ensure a
high net after tax return. √
- Tax rates are not necessarily the same√ for different investments. √
- Any other relevant answer related to taxation as a factor to be
considered when making investment decisions.
Factor (2)
Discussion (1)
Sub-max (3)
NOTE: Mark the first TWO factors only.
Max (6)

2.4 Advantages of insurance for businesses


- Transfer of risk is subject to the terms and conditions√ of the insurance
contract. √
- Protects businesses√ against dishonest employees. √
- Protects businesses√ against losses due to death of a debtor. √
- Protects the business against theft/loss of stock and/or damages√ caused by
natural disasters such as floods, storm damage, etc. √

Copyright reserved Please turn over


Business Studies P2 11 FS/June 2023

- Protects businesses from claims made by members of the public√ for


damages that the business is responsible for. √
- Businesses assets, e.g. vehicles/equipment/buildings need to be insured√
against damage and/or theft. √
- Life insurance can be taken on the life of partners in a partnership√ to prevent
unexpected loss of capital. √
- Should the services of key personnel be lost due to accidents/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 such costs. √
- Any other relevant answer related to advantages of insurance for businesses.
Max (4)

2.5
2.5.1 =PxRxT√
= R5 000 x 10% x 2 years √
= R1 000 √√
NOTE: 1. Allocate full marks (4) if the answer is correct and no workings
are shown.
2. If workings were shown correctly, but the final answer is wrong,
award a maximum of ONE (1) mark.
3. If there are no workings shown and the answer is incorrect,
allocate a ZERO mark.
Max (4)

2.5.2 Disadvantages of fixed deposit


- The investor cannot withdraw their funds √ before the maturity date.

- Low returns√ compared to other investments. √
- May not outperform the effect of inflation √ over the long-term. √
- Any other relevant answer related to the negative impact/
disadvantages of fixed deposit as a form of investment.
Max (4)

2.6 Positive impact of unit trusts


- Managed by a fund manager√ who buys shares on the stock exchange/JSE. √
- Easy to cash in √when an investor needs money. √
- A small amount can be invested√ per month. √
- Generally, beats inflation√ on the medium /long term. √
- Safe investments, √as it is managed according to rules and regulations. √
- The investor has a variety to choose from a wider range of shares from lower
to higher degrees of risk. √
- Easy to invest in√ as investors simply complete a few relevant forms or invest
online. √
- Fluctuations in unit trust rates of return are often not so severe√ because of
diversity of the investment fund. √
- Offer competitive returns in the form of capital growth√ and dividend
distribution. √

Copyright reserved Please turn over


Business Studies P2 12 FS/June 2023

- Fund managers are knowledgeable/ reliable/trustworthy√ as they are required


to be accredited to sell unit trust. √
- Any other relevant answer related to the disadvantages of fixed deposits as a
form of investment.

Max (6)

[40]

BREAKDOWN MARK ALLOCATION


QUESTION 2 MARKS
2.1 6
2.2 4
2.3.1 6
2.3.2 6
2.4 4
2.5.1 4
2.5.2 4
2.6 6
TOTAL 40

QUESTION 3: BUSINESS ROLES

3.1 Examples of unethical business practices


- Unfair advertising√
- Pricing of goods in rural area√
- Taxation/Tax evasion√
- Paying employees unfair wages
- Disobeying the law
- Using bribery to gain business
- Engaging in illegal business practices.
- Polluting the environment
- Starting a venture at the expense of someone else
- Any other relevant answer related to examples of unethical practices.
NOTE: Mark the first FOUR (4) only.
Max (4)

3.2 King Code Principles

3.2.1 Transparency √√

3.2.2 Responsibility √√

3.2.3 Accountability √√
Max (6)

Copyright reserved Please turn over


Business Studies P2 13 FS/June 2023

3.3 Professional, responsible, ethical, and effective business practices


- Mission statement should include the values of equality√ and respect. √
- Businesses should develop equity programmes/promote strategies√ to ensure
that all employees are treated equally regardless of status/rank/power. √
- Treat workers with respect/dignity√ by recognising work well done/the value of
human capital. √
- Plan properly√ and put preventative measures in place. √
- Pay fair wages/salaries√ which are in line with the minimum requirements of
the BCEA√/Remunerate employees√ for working overtime/during public
holidays. √
- Engage in environmental√ awareness programmes√/Refrain from polluting the
environment√ such as legally disposing of toxic waste. √
- Refrain from starting a venture using other businesses' ideas√ that are
protected by law. √
- Business decisions and actions must be clear/transparent√ to all stakeholders.

- Businesses should be accountable /responsible√ for their decisions and
actions/patent rights. √
- Hire honest/trustworthy accountants/financial officers√ with good credentials. √
- Regular/Timeous payment√ of taxes. √
- All workers should have access√ to equal opportunities/ positions/ resources.

- Ensure that employees work in a work environment√ that is conducive to
safety/fairness/free of embarrassment. √
- Employers and employees need to comply with legislation√ regarding equal
opportunities/human rights in the workplace. √
- Training/ Information/Business policies should include issues√ such as
diversity/discrimination/harassment. √
- Employers should respond swiftly and fairly√ to reported incidents of
discrimination in the workplace. √
- Orders/Tasks should be given respectfully√ and allow the recipient/employee
to have a say in the way that task should be performed. √
- Draw up√ a code of ethics/conduct. √
- On-going development and training√ for all employees. √
- Performance management systems/Appraisals√ should be in place. √
- Adequate√ internal controls/monitoring/evaluation. √
- Any other relevant answer related to ways in which professional, responsible,
- ethical and effective business practice should be conducted
Max (6)

3.4

3.4.1
PROBLEM SOLVING MOTIVATION
TECHNIQUES
Force Field Analysis √√ FB considered the advantages and
disadvantages of the decision to
change the structure of their
business. √

Copyright reserved Please turn over


Business Studies P2 14 FS/June 2023

Nominal-group technique√√ FB also requested their employees


to generate new ideas and then
share them with their colleagues in
small groups. √
Sub-max (4) Sub-max (2)
NOTE:
1. Award marks for the problem-solving technique even if the
quote is incomplete.
2. Do not award marks for the motivation if the problem-solving
techniques were incorrectly identified.
3. Mark the first TWO (2) problem-solving techniques only.
4. The problem-solving techniques may be in any order.
Max (6)

3.4.2 Force Field analysis


Positives/Advantages
- Employees feel included√ and understood. √
- Employees develop√ and grow with the business. √
- It provides a visual summary of all the various factors√ supporting
and opposing a particular idea. √
- Informed decisions can be made√ as forces for and against are
critically evaluated. √
- Enables businesses to strengthen the driving forces√ and weaken
the restraining forces. √
- Businesses can have an idea√ of the timeline required and the
requirements of additional resources. √
- Any other answer related to the positive impact of Force Field
analysis.

AND /OR

Negatives/Disadvantages
- Requires the participation√ of all business units. √
- It is time consuming since the business must stabilise√ before more
changes can be made. √
- The analysis developed is entirely dependent upon the skill level√
and knowledge of the group working on the analysis. √
- Any other answer related to the negative impact of Force Field
analysis.
Max (6)

OR

Nominal-group technique
Positives/Advantages
- It provides time to think about the question√ in silence before
responding. √
- Voting on the ideas is anonymous√ and may be more
reliable/honest. √
- Strong technique√ for preventing conformity to group pressure. √

Copyright reserved Please turn over


Business Studies P2 15 FS/June 2023

- Each team member has a chance to participate without interference√


from other team members. √
- Everyone in the group is given an opportunity to contribute √ to the
discussion, while avoiding the likelihood of one person dominating
the group process. √
- Enables the group to generate and clarifies many ideas quickly, and
democratically prioritises them. √
- It encourages participants to confront issues through constructive
problem solving√
- Strong technique for preventing conformity to group pressure√
- Any other answer related to the positive impact of Nominal-group
technique.

AND /OR

Negatives/Disadvantages
- Small groups limit participation√ and are pre-selected. √
- Suggestions may not be as creative√ as when a group throws ideas
around. √
- Good ideas can be voted out√ because its potential cannot be
developed further. √
- It minimises discussion, √and thus does not allow the full
development of ideas. √
- Ideas/Inputs made by members√ may not converge and cannot lead
to the same solution (s) √.
- Any other answer related to the negative impact of Nominal-group
technique.
Max (6)

3.5 Communication as the criteria for successful team performance


- A clear set of processes/procedures for teamwork√ ensures that every team
member understands his/her role. √
- Quality feedback improves√ the morale of the team. √
- Open/Honest discussions√ lead to effective solutions of problems. √
- 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 as criteria for successful
team performance.
Max (6)

3.5 Unemployment as one of the benefits paid out by the UIF


- Employees, who become unemployed/retrenched due to restructuring/an
expired contract, may claim within six months after becoming unemployed. √√
- Unemployed employees may only claim if they contributed to UIF. √√
- Unemployed employees enjoy these benefits until the allocated funds are
exhausted. √√
- If a worker voluntary terminates his/her contract, he/she may not claim. √√
- No tax is payable on unemployment benefits. √√
- Any other relevant answer related to unemployment as the criteria for
successful team performance.

Copyright reserved Please turn over


Business Studies P2 16 FS/June 2023

Max (6)

[40]

BREAKDOWN MARK ALLOCATION


QUESTION 2 MARKS
3.1 4
3.2.1 2
3.2.2 2
3.2.3 2
3.3 6
3.4.1 6
3.4.2 6
3.5 6
3.6 6
TOTAL 40

QUESTION 4: MISCELLANEOUS TOPICS

BUSINESS VENTURES

4.1 Examples of non-insurable risks


- Losses caused by war √
- Most risks occurring between placing orders and receiving goods. √
- Changes in fashion. √
- Losses caused by marketing malpractices by the business. √
- Loss of income if stock is not received in time/Time that elapses between the
ordering and delivery of goods. √
- Improvement/advancement/changes in technology/new machinery invention. √
- Nuclear weapons/war. √
- Shoplifting during business hours. √
- Irrecoverable debts. √
- Financial loss due to bad management. √
- Any other relevant answer related to examples of non-insurable risks.
NOTE: Mark the first FOUR (4) only.
Max (4)

4.2 Type of preference shares

4.2.1 Redeemable preference shares √√

4.2.2 Cumulative preference shares √√

4.2.3 Participating preference shares √√


Max (6)
4.3 Advantages of RSA Retail Savings bonds
- Guaranteed returns√, as interest rate is fixed for the whole investment period.

Copyright reserved Please turn over


Business Studies P2 17 FS/June 2023

- Interest rates are market related √ and attract more investors. √


- Interest can be received√ twice a year. √
- Investment may be easily accessible√, as cash may be withdrawn after the
first twelve months. √
- It is an affordable type of investment√ for all levels of income earners including
pensioners. √
- Retail bonds are easily/conveniently obtained√ electronically/from any Post
Office/directly from National Treasury. √
- No charges/costs/commissions payable√ on this type of investment. √
- Interest is usually higher√ than on fixed deposits. √
- Retail bonds are listed√ on the capital bond markets/on the JSE. √
- Investors younger than 18 years/Minors may invest with the help of a legal
guardian√, which encourages saving from a young age. √
- Any other relevant answer related to the positive impact/advantages of RSA
Retail Savings Bonds/Government Retail Bonds on investors
Max (6)

4.4 Meaning of management and leadership


LEADERSHIP MANAGEMENT
- Influences√ human behavior. √ - Guides√ human behavior. √
- Communicates√ by means of inter- - Communicates through
action/behavior/vision/values/ management functions√, e.g.,
charisma. √ line function√
- Encourages new ideas√ to increase - Administers
productivity. √ plans/programs/tasks√ to
reach targets. √
- Inspires staff to trust√ and support - Controls systems and
each other. √ procedures√ to get the job
done. √
- Focuses on what√ and why. √ - Focuses on how√ and when.

- Does the right things. √ - Does things right. √
- Focuses on the horizon√ to take - Focuses on the bottom line√
long term decisions. √ to take short/medium/long
term decisions. √
- Leaders are born√ with natural/ - A person becomes a
instinctive leadership skills. √ manager√ because he/she is
appointed in the position. √
- Guides/Leads people√ to become - Manages the process of
active participants. √ getting things done√ by
exercising authority. √
- Motivational/Inspirational√ in their - Instructional√ in their
approach. √ approach. √
- People orientated. √ - Task orientated. √
- Lead by example/trust/respect. √ - Manage by
planning/organizing/leading/
control. √

Copyright reserved Please turn over


Business Studies P2 18 FS/June 2023

- Any other relevant answer related to - Any other relevant answer


leadership. related to management.
Sub-max (2) Sub-max (2)

NOTE:
1. The answer does not have to be in tabular form.
Max (4)
4.5 Problem-solving steps
- Identify the problem. √
- Define the problem. √
- Identify possible solutions to the problem. √
- Select the most appropriate alternative. √
- Develop an action plan. √
- Implement the suggested solution/action plan. √
- Monitor the implementation of the solution/action plan. √
- Evaluate the implemented solution. √
- Any other relevant answer related to the steps in problem-solving.
NOTE: Mark the first TWO (2) only.
Max (2)

4.6
4.7.1 STAGES OF TEAM MOTIVATION
DEVELOPMENT
Storming √√ Josiah always questioned the other
members' ideas and opinions as
he wanted to be the team leader. √

Norming √√ The team members eventually


reached an agreement and
consensus on the way forward. √
Sub-max (4) Sub-max (2)

NOTE:
1. Do not award marks for motivation if the stages of team
development were incorrectly identified.
2. Award marks for the stages of team development even if the
quote is incomplete.
Max (6)

4.7.2 Other stages of team development


Forming stage √√
- Individuals gather information and impressions about each other
and the scope of the task and how to approach it. √
- This is a comfortable stage to be in.√
- People focus on being busy with routines, such as team
organisation e.g., who does what, when to meet each other√, etc.
- Any other relevant answer related to the forming stage of team
development.
Stage (2)

Copyright reserved Please turn over


Business Studies P2 19 FS/June 2023

Explanation (1)
Sub-max (3)

Performing stage/Working as a team towards a goal √√


- Team members are aware of strategies and aims of the team. √
- They have direction without interference from the leader. √
- Processes and structures are set. √
- Leader’s delegate and oversee the processes and procedures. √
- All members are now competent, autonomous, and able to
handle the decision-making process without supervision. √
- Differences among members are appreciated and used to
enhance the team's performance. √
- Any other relevant answer related to the performing
stage/working as a team towards a goal of team development.
Stage (2)
Explanation (1)
Sub-max (3)

Adjourning/Mourning stage √√
- The focus is on the completion of the task/ending the project. √
- Breaking up the team may be traumatic as team members may
find it difficult to perform as individuals once again. √
- All tasks need to be completed before the team finally dissolves.

- Any other relevant answer related to the adjourning/mourning
stage of team development
Stage (2)
Explanation (1)
Sub-max (3)
NOTE:
1. Mark the first TWO (2) only.
2. Do not allocate marks for Storming/ Norming as identified in
Question 4.3.1
Max (6)

Ways businesses can deal with unfair advertising as an unethical business


practice
- Businesses must know and understand the Code of Advertising as determined
by the Advertising Standard Authority (ASA) and apply its regulations. √√
- Businesses must report unfair advertisements by competitors to ASA. √√
- Businesses should be encouraged to keep their advertising fair and in line with
the constitution. √√
- Advertisements should be honest/legal and not abuse consumer's trust/lack of
knowledge. √√
- Advertisements should not contain anything that is discriminatory/likely to
cause offence/support act of violence. √√
- Any other relevant answer related to ways in which businesses could deal
with unfair advertising as a type of unethical business practice in the
workplace.
Max (6)

Copyright reserved Please turn over


Business Studies P2 20 FS/June 2023

[40]

BREAKDOWN MARK ALLOCATION


QUESTION 2 MARKS
4.1 4
4.2.1 2
4.2.2 2
4.2.3 2
4.3 6
4.4 6
4.5 2
4.6.1 6
4.6.2 6
4.7 6
TOTAL 40

TOTAL SECTION B [80]

Copyright reserved Please turn over


Business Studies P2 21 FS/June 2023

SECTION C

Mark ONE question from this section.

QUESTION 5: BUSINESS VENTURES (MANAGEMENT AND LEADERSHIP)

5.1 Introduction
- The attitude of a leader has an influence on the success and or failure of the
business. √
- Leaders and managers can create opportunities and motivate people to be
productive which leads to successful businesses. √
- Businesses use situational and transformational leadership theories in
different situations to influence employees. √
- Good leaders can also be good managers, as both can inspire/energise
people and bring about change. √
- Many managers are also good leaders with excellent management skills. √
- The transactional leadership style can be used to influence employees
positively. √
- Any other relevant introduction related to the role of personal attitude in
successful leadership / situational and transformational leadership theories /
the impact of the transactional and charismatic leadership styles /application of
transactional leadership style.
(2 × 1) (2)

5.2 Role of personal attitude in successful leadership


- A positive attitude releases leadership potential for personal growth. √√
- A leader's good attitude can influence the success of the business. √√
- Leaders must know their strengths and weaknesses to apply their leadership
styles effectively. √√
- Great leaders understand that the right attitude will set the right atmosphere.
√√
- Leaders' attitude may influence employees'/teams' thoughts/behaviour. √√
- Leaders should model the behaviour that they want to see in team members.
√√
- Successful leaders consider the abilities/skills of team members to allocate
tasks/roles effectively. √√
- Enthusiasm produces confidence in a leader and inspires them to work even
harder. √√
- A positive attitude is critical for good leadership because good leaders will stay
with the task regardless of difficulties/challenges. √√
- Successful leaders and employees have a constant desire to work and
achieve personal/professional success. √√
- Leaders with a positive attitude know that there is always more to learn/space
to grow. √√
- Any other relevant answer related to the role of personal attitude in successful
leadership.
Max (10)

5.3 Situational leadership theory


- Different leadership characteristics are needed √ for different situations. √

Copyright reserved Please turn over


Business Studies P2 22 FS/June 2023

- The task/situation dictates the leadership style that should be applied, √ so


leaders are adaptable/flexible/self-assured. √
- Effective application of this theory may enable leaders √ to accomplish their
goals. √
- Relationships between leaders and employees √ are based on mutual trust/
respect/loyalty/integrity/honesty. √
- Leaders could analyse the situation/get the most suitable people in the right
positions√ to complete tasks successfully. √
- Leaders analyse group members/objectives/time constraints, √ to adopt a
suitable/relevant leadership style. √
- May lead to conflict √ when leaders use different leadership styles/when
managing employees in different situations. √
- The success of this theory depends on the kind of relationship that exists
between the leader and followers/subordinates/employees.
- Any other relevant answer related to the situational leadership theory.
Max (12)

5.4 Impact transactional and charismatic leadership styles of the on businesses

Transactional leadership styles


Positives/Advantages
- Encourages employees to work hard √ because they will receive rewards. √
- Improves employees' productivity √ and morale. √
- The goals and objectives of the business can be achieved √ as workers are
motivated. √
- Employees know what is expected √ of them. √
- Disciplinary action procedures √ are well communicated. √
- Any other relevant answer related to the positive impact/advantages of the
transactional leadership style

AND/OR

Negatives/Disadvantages
- Employees may become bored/lose creativity √ as they must follow rules/
procedures. √
- A transactional leader will have to monitor the work performance of employees
√ to ensure that expectations are met. √
- Managing/controlling employees √ may be time-consuming. √
- Some employees may be demoralised/ unmotivated if they fail to reach/meet
targets √ despite having worked very hard. √
- Not suitable for teamwork as all team members can be punished for poor
performance √ caused by one team member. √
- Any other relevant answer related to the negative impact/disadvantages of the
transactional leadership style.
Sub-max (8)

Charismatic leadership style


Positives/Advantages
- Expert at selling vision √ and achieve excellent results. √
- Employees are motivated √ as the leader is energetic/ inspiring. √

Copyright reserved Please turn over


Business Studies P2 23 FS/June 2023

- Inspires loyalty/hard work √ among employees. √


- Any other relevant answer related to the positive impact/advantages of the
charismatic leadership styles.

AND/OR

Negatives/Disadvantages
- Leader believes more in him/her √ than the team. √
- Projects can collapse √ if the leader leaves the team. √
- Leaders are intolerant of challenges √ and regard themselves as irreplaceable.

- Any other relevant answer related to the negative impact/disadvantages of the
charismatic leadership styles
Sub-max (8)
Max (16)

5.5 Situations in which the transactional leadership style can be applied in the
workplace
- The business wants to maximise employee performance. √√
- Deadlines have to be met on short notice/under pressure. √√
- Workers have low morale. √√
- The strategies/business structures are clear and do not have to change. √√
- Productivity levels are very low/not according to targets. √√
- Any other relevant answer related to situations in which the transactional
- leadership style can be applied in the workplace.
Max (8)

5.6 Conclusion
- Managers can also be successful leaders if they do not only focus on the task
at hand, but also the people/workers who will execute the task. √√
- A leader who is positive/enthusiastic/energetic will inspire his followers to
improve/empower/uplift themselves to achieve their own personal goals. √√
- The transactional and charismatic leadership styles encourage innovative
ideas and boosts the morale of workers. √√
- The style used depends on the personality of the leader and nature of the
business. √√
- Leaders who understand various leadership styles may be able to lead
effective and handle any situation. √√
- Any other relevant conclusion related to the role of personal attitude in
successful leadership / situational and transformational leadership theories /
the impact of the transactional and charismatic leadership styles /application of
transactional leadership style.
Any (1 × 2) (2)

[40]

BREAKDOWN OF MARK ALLOCATION


DETAILS MAXIMUM TOTAL
Introduction 2
The role of personal attitude 10

Copyright reserved Please turn over


Business Studies P2 24 FS/June 2023

Situational leadership theory 12


Impact of the transactional and Max
16
charismatic leadership styles 32
Situations in which the transactional
8
leadership style can be applied
Conclusion 2
INSIGHT
Layout 2
Analysis, interpretation 2 8
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.

Copyright reserved Please turn over


Business Studies P2 25 FS/June 2023

QUESTION 6: BUSINESS ROLES (CONFLICT MANAGEMENT)

6.1 Introduction
- Grievance takes place when an employee is unhappy/ has a
problem/complaint in the workplace. √
- Conflict refers to disagreements between two or more parties. √
- Lack of proper communication between management and workers can lead to
conflict. √
- The business can deal with difficult people by treating them with respect,
irrespective of whether they are capable/ competent or not√
- Any other relevant introduction related to causes of conflict/ how to handle
conflict/ correct procedure of dealing with grievance/ dealing with difficult
people.
Any (2 × 1) (2)

6.2 Causes of conflict in the workplace


- Ignoring rules/procedures√ may result in disagreements and conflict. √
- Management and/or workers√ may have different personalities/ backgrounds.

- Different values/levels of knowledge/skills/experience√ of managers/workers√.
- Little/no co-operation√ between internal and/or external parties/stakeholders. √
- Lack of recognition for good work, √ e.g. a manager may not show
appreciation for extra hours worked to meet deadlines. √
- Lack of employee development√ may increase frustration levels as workers
may repeat errors due to a lack of knowledge/skills. √
- Unfair disciplinary procedures, √ e.g. favouritism/nepotism. √
- Little/no support from management√ with regards to supplying the necessary
resources and providing guidelines. √
- Leadership styles used√, e.g. autocratic managers may not consider worker
inputs. √
- Unrealistic deadlines/Heavy workloads√ lead to stress resulting in conflict. √
- Lack of agreement on mutual matters√, e.g. remuneration/working hours. √
- Unhealthy competition/Inter-team rivalry√ may cause workers to lose focus on
team targets. √
- Lack of commitment/Distracted by personal objectives√ which may lead to an
inability to meet pre-set targets. √
- Constant changes√ may cause instability√
- Lack of clarity√ regarding employees' roles and responsibilities. √
- Any other relevant answer related to the causes of conflict in the workplace.
Max (12)

6.3 How businesses should handle conflict in the workplace


- Acknowledge √ that there is conflict in the workplace. √
- Identify the cause√ of the conflict. √
- Arrange pre-negotiations where workers/complainants√ will be allowed to state
their case/views separately. √
- Arrange time and place for negotiations√ where all employees involved are
present. √
- Arrange a meeting√ between conflicting employers/employees. √

Copyright reserved Please turn over


Business Studies P2 26 FS/June 2023

- Make intentions for intervention clear√ so that parties involved may feel at
ease. √
- Each party has the opportunity√ to express his/her own opinions/feelings√
- Conflicting parties may recognise√ that their views are different during the
meeting. √
- Analyse/Evaluate the cause (s) of conflict√ by breaking it down into different
parts. √
- Blame shifting should be avoided√ and a joint effort should be made. √
- Direct conflicting parties towards√ finding/focusing on solutions. √
- Devise/Brainstorm possible√ ways of resolving the conflict. √
- Conflicting parties agree√ on criteria to evaluate the alternatives. √
- Select and implement√ the best solution. √
- Provide opportunities for parties√ to agree on the best solution. √
- Evaluate/Follow up√ on the implementation of the solution(s). √
- Monitor progress to ensure√ that the conflict has been resolved. √
- Source experts on handling√ conflict from outside the business. √
- Any other relevant answer related to handling conflict in the workplace.
Max (12)

6.4 Correct procedure to deal with grievance in the workplace


- An aggrieved employee must verbally report the incident/grievance to his/her
supervisor/manager√, who needs to resolve the issue within 3 to 5 working
days. √
- Should the employee and supervisor not be able to resolve the grievance√,
the employee may take it to the next level of management. √
- The employee may move to a more formal process√ where the grievance
must be lodged in writing/completes a grievance form. √
- The employee must receive a written√ reply in response to the written
grievance. √
- A grievance hearing/meeting√ must be held with all relevant parties present. √
- Minutes of the meeting must be recorded√ and any resolution passed must be
recorded on the formal grievance form. √
- Should the employee not be satisfied, √ then he/she could refer the matter to
the highest level of management. √
- Top management should arrange√ a meeting with all relevant parties
concerned. √
- Minutes of this meeting should be filed/recorded√ and the outcome/decision
must be recorded on the formal grievance form. √
- Should the employee still not be satisfied√, he/she may refer the matter to the
CCMA who will make a final decision on the matter. √
- The matter can be referred to Labour Court on appeal√ if the employee is not
satisfied with the decision taken by the CCMA. √
- Any other relevant answer related to the correct way of dealing with grievance
in the workplace.
Max (10)

6.5 Dealing with difficult employees in the workplace


- Act pro-actively, if possible, as a staff/personnel problem is part of a
manager's responsibilities. √√

Copyright reserved Please turn over


Business Studies P2 27 FS/June 2023

- 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 intentions and reasons for action known, so that difficult person/people
feel at ease. √√
- Employees should be told what specific behaviours are acceptable by giving
details about what is wrong/ unacceptable and an opportunity to explain their
behaviour. √√
- A deadline should be set for improving bad/difficult behaviour. √√
- The deadline date should be discussed with the difficult employee and his/her
progress should be monitored/ assessed prior to the deadline. √√
- Guidelines for improvement should be given. √√
- Do not judge the person but try to understand him/her/Understand his/her
intentions and why he/she reacts in a certain way. √√
- 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.
√√.
- Sometimes it may be necessary to ignore and only monitor a difficult person.
√√
- Identify and provide an appropriate support program to address areas of
weakness. √√
- Any other relevant answer related to dealing with difficult people in the
workplace.
Max (12)

6.6 Conclusion
- Causes of conflict in the workplace should always be dealt with as soon as
possible to avoid problems from piling up and affecting the operations
negatively. √√
- Different techniques should be used to deal with conflict correctly at the
workplace. √√
- Keep communication channels open/Encourage employees to communicate
their grievances to management. √√
- Get perspective from others who have experienced the same kind of situation
to be able to understand difficult employees. √√
- Any other relevant conclusion related to causes of conflict/ how to handle
conflict/ correct procedure of dealing with grievance/ dealing with difficult
employees in the workplace.
Any (1 х 2) (2)

[40]

Copyright reserved Please turn over


Business Studies P2 28 FS/June 2023

BREAKDOWN OF MARK ALLOCATION


DETAILS MAXIMUM TOTAL
Introduction 2
Causes of conflict 12
Conflict resolution techniques 12 Max
Correct procedure to deal with 32
10
grievance
Dealing with difficult employees 12
Conclusion 2
INSIGHT
Layout 2
Analysis/Interpretation 2 8
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.

TOTAL SECTION C 40

GRAND TOTAL 100

Copyright reserved Please turn over

You might also like