2020 Business Studies Business Studies Grade 12 Paper 2 Exam Kit.

2020
BUSINESS STUDIES
GRADE: 12
PAPER: 2
LEARNER EXAM- KIT
TOPICS:
BUSINESS VENTURES
AND
BUSINESS ROLES
1
THE STRUCTURE OF PAPER 2 OF THE END OF THE YEAR EXAMINATION
DURATION: 2 HOURS
TOTAL MARKS: 150
SECTION PAPER 1 MARKS TIME PER PAPER
A MPULSORY SHORT QUESTIONS 30 MARKS 30 20 MINUTES

Business Ventures (15 marks)
Business Roles (15 marks)
MULTIPLE CHOICE
CHOOSE THE CORRECT WORD
MATCHING ITEM
B CHOOSE ANY TWO QUESTIONS (40 X 2) 80 70 MINUTES
QUESTION 2:
QUESTION 3:
QUESTION 4:
Miscellaneous: (Total of 40 marks) consisting

of: Business Ventures (20 marks)
C SECTION C: ESSAY TYPE QUESTIONS Choose 40 30MINUTES

ONE question (40 x 1)
QUESTION 5:
QUESTION 6:
TOTAL 150 120
2
BUSINESS VENTURES & BUSINESS ROLES: PAPER 2
CLASSIFICATION OF SUBTOPICS ACCORDING TO PAPER 2 MAIN TOPICS
BUSINESS VENTURES BUSINESS ROLES
Management and leadership Ethics and professionalism
Investment: Securities Creative thinking and Problem-solving
Investment: Insurance Social Responsibility, CSR & CSI
Forms of ownership Human rights, inclusivity, and environmental

issues
Presentation and data Response Team performance & conflict
management
TABLE OF CONTENTS FOR BUSINESS VENTURES & BUSINESS ROLES
BUSINESS VENTURES PAGE BUSINESS ROLES PAGE
Multiple choice questions 4-7 Multiple choice questions 47-55
Management and leadership 8-18 Ethics and professionalism 55-60
Investment: Securities 18-28 Creative thinking and Problem- 61-65

solving
Investment: Insurance 29-35 Social Responsibility, CSR & CSI 66-70
Forms of ownership 36-40 Human rights, inclusivity, and 71-78

environmental issues
Presentation and data Response 41-46 Team performance & conflict 79-87
management
3
SECTION A
BUSINESS VENTURES AND BUSINESS ROLES
TYPICAL EXAM QUESTIONS
Multiple choice questions

1.1 Various options are provided as possible answers to the following questions. Choose the answer
and write only the letter (A‒D) next to the question numbers (1.1.1 to 1.1.10) in the ANSWER
BOOK, e.g. 1.1.6 D.
1.1.1 William, the manager of Eden Supermarket, applies the … leadership style when
delegating tasks to followers without supervision.
A autocratic
B democratic
C laissez-faire/free-reign
D charismatic
1.1.2 The … company provides essential services such as water and electricity at reasonable
prices.
A personal liability
B state-owned
C public
D private
1.1.3 An example of a non-verbal presentation is information in the form of a/an …
A written report.
B data projector.
C video conference.
D oral report.
4
1.1.4 Thembi does not accuse Joyce of being wrong but knows her facts. This is an example of
dealing with a/an … personality.
A complaining
B quiet
C aggressive
D expert
1.1.5 Team dynamic theories help businesses to …
A allocate tasks to team members with similar personalities.
B allocate tasks according to the role of each team member.
C establish good relationships with teams.
D promote individual satisfaction. (5 x 2) (10)
1.2 Complete the following statements by using the words provided in the list below. Write only the
word(s) next to the question numbers (1.2. to 1.2.5) in the ANSWER BOOK.
simple interest; problem-solving; health and safety representative; language; decision

making; retirement annuities; age; employer; compound interest; liability policies
1.2.1 Thandeka earned … calculated on the principal amount and accumulated interest.
1.2.2 An investor can only withdraw money from … when he/she reaches a certain age.
1.2.3 A business that appoints an interpreter for meetings is addressing … as a diversity issue.
1.2.4 The responsibility of the … is to provide all the necessary equipment for workers to
perform their duties in a favourable work environment
1.2.5 Sam considered various alternatives before choosing the best solution to solve a business
problem. This is known as … (5 x 2) (10)
5
1.3 Choose a description from COLUMN B that matches a term in COLUMN A. Write only the letter
(A‒J) next to the question number (1.3.1 to 1.3.5) in the ANSWER BOOK, for example 1.3.6 K.
COLUMN A COLUMN B
1.3.1 Creative thinking A only young people are considered for appointments
1.3.2 Interactive whiteboards B useful in brainstorming sessions as suggestions are

summarised
1.3.3 Inclusivity C enables consumers to make loans at financial

institutions
1.3.4 Debentures
D uses routine methods to solve problems
1.3.5 Economic right

E allows employees to have access to healthcare
F enables businesses to make loans from investors
G useful to capture feedback and new ideas
H people from different backgrounds are employed
I uses non-routine methods to solve problems
J allows employees to be paid equally for work of equal

value
(5 × 2) (10)
TOTAL SECTION A: 30
6
TIPS
• Section A is compulsory, and it will include the following questions:
o Multiple-choice questions
o Complete sentences
o Matching type questions
• All sub-topics in business ventures and roles will be equally assessed.
• Candidates must be well conversant with all the sub-topics to answer all the questions in this
section.
• Some questions will be indirect as learners may be required to apply knowledge
• This section will consist of 30 marks.
• Only one answer in section A will be marked in each sub-question
• Learners are advised to spend at least 30 minutes when answering this section
REQUIRED RESPONSES
1.1 Multiple choice questions
1.1.1 C√√
1.1.2 B√√
1.1.3 A√√
1.1.4 D√√
1.1.5 B√√ (5×2) (10)
1.2 Complete statements
1.2.1 Compound interest√√

1.2.2 retirement annuities√√
1.2.3 language√√
1.2.4 employer√√
1.2.5 decision making√√ (5×2) (10)
1.3 Match columns
1.3.1 I√√
1.3.2 G√√
1.3.3 H√√
1.3.4 F√√
1.3.5 J√√ (5×2) (10)
7
SECTION B
TOPIC: MANAGEMENT AND LEADERSHIP

Exam guidelines for management and leadership
Learners must be able to:
MANAGEMENT AND LEADERSHIP
• Define/Elaborate on the meaning of leadership and management

• Differentiate/Distinguish between management and leadership.
LEADERSHIP STYLES
• Outline the differences/Differentiate/Distinguish between the following leadership styles:
o Democratic
o Autocratic
o Liassez-faire/Free-reign
o Charismatic
o Transactional
• Identify the leadership styles from given scenarios/case studies and motivate answers.
• Discuss/Evaluate/Analyse the impact (including positives/advantages and/or negatives/
disadvantages) of each leadership style.
• Suggest/Recommend situations in which each leadership style can be applied in the workplace
LEADERSHIP THEORIES
• Discuss/Explain the following theories of management and leadership.
o Leaders and followers
o Situational leadership
o Transformational leadership
o Transitional leadership
• Explain/ Discuss the role of personal attitude in successful leadership
• Identify the above stated leadership theories from given scenarios/ statements
8
SECTION B: CONTEXTUAL QUESTIONS
TOPIC: MANAGEMENT AND LEADERSHIP

QUESTION 2
2.1 Elaborate on the meaning of management. (4)
Tips
• The verb “elaborate” requires learners to explain a little bit further.
• Learners must be able to write in full as ticks will be split when responses are marked
• Refer to the memo on question 2.1 provided below
REQUIRED RESPONSES
2.1 The meaning of management
• The coordination of Planning, organising, leading and controlling employees√ to achieve goals.√
• A person becomes a manager because of the position√ in which he/she is appointed√
• Managers have power because of the position of authority√ into which they are appointed.√
Max (4)
2.2 Outline the differences between leadership and management. (8)
Tips
• The verb “outline” requires learners to write full sentences, but two ticks will be awarded
at the end of each response.
• Examiners may use the verbs “explain” the differences or “distinguish / differentiate”
between leadership and management. The responses are the same as in question 2.2 but
ticks will be split when this question is marked.
• Learners must refrain from writing one-word answers or incomplete responses.
• Teachers are advised to assists learners in identifying simple facts from the notes.
9
REQUIRED RESPONSES
LEADERSHIP MANAGEMENT
Communicates by means of Communicates through management functions,

interaction/behaviour/vision/charisma.√√ e.g. line function. √√
Influences human behaviour.√√ Guides human behaviour..√√
Innovates/Encourages new ideas to increase Administers plans/programs/tasks to reach

productivity.√√ targets
Motivational/Inspirational in their Instructional in their approach.√√

approach.√√
Sub max (4) Sub max (4)
1. The answer does not have to be in tabular format, but the differences must be clear.
2. Learners will be awarded a maximum of FOUR (4) marks if the differences are not clear /only
leadership OR management will be marked Max (8)
QUESTIONS ON LEADERSHIP STYLES
2.3 Identify the leadership styles that are applicable to the following situations:
2.3.1 Georgina uses her personality to inspire employees to do more than what is normally
expected.
2.3.2 The CEO of Trevor Shuttle Services requested experienced employees to share their
ideas when important decisions need to be made.
2.3.3 The employees of Sizwe Marketing Ltd may choose their own work methods as long as
they do not violate the company's policies. (6)
Tips
• Learners should not confuse the leadership styles with the theories of management
and leadership
• There are FIVE leadership styles and THREE theories of management as stated in the
2020 examination guidelines.
• When the verb “identify” is used, learners will be awarded 2 marks for identify the
concept from given scenarios/statements.
• The charismatic leadership style should not be confused with the transformational
leadership theory.
10
REQUIRED RESPONSES
2.3 Leadership styles from given statements
2.3.1 Charismatic√√
2.3.2 Democratic√√
2.3.3 Laissez faire√√
INDIRECT QUESTIONS ON LEADERSHIP STYLES

2.4 Read the scenario below and answer the questions that follow.
Shawn is a purchasing manager and Tracy is his assistant manager. Shawn does not allow his
employees to participate in decision making. Tracy prefers the laissez-faire or free-reign
leadership style.
2.4.1 Identify the leadership style applied by Shaun. Motivate your answer by quoting from
the scenario above. (3)
2.4.2 Evaluate the effectiveness of the leadership style identified in QUESTION 2.4.1. (6)
2.4.3 Recommend THREE situations in which the laissez-faire or free-reign leadership style can
be applied in the workplace. (6)
Tips
• Evaluate the effectiveness means that learners should either give advantages and/or
disadvantages”
• They must write full sentences to avoid losing marks due to splitting of ticks.
• Learners should not confuse the autocratic leadership style with the democratic
leadership style
• Learners may be asked the following direct middle question on this topic e.g.
o Explain/discuss/evaluate the impact of the leadership styles.
• The responses are the same and will also be marked the same as in question 2.4.2
above
• The verb “recommend” means that two marks will be allocated at the end of each
response
REQUIRED RESPONSES
2.4 Leadership styles
2.4.1 Leadership style from the scenario
Autocratic√√ (2)
Motivation
Shawn does not allow his employees to participate in decision making. √ (1)
NOTE: Learners will be awarded marks for the motivation if the leadership style was not
correctly identified. Max (3)
11
2.4.2 The effectiveness of the autocratic leadership style
Positives/Advantages
• Quick decisions can be taken√ without consulting/considering followers/ employees. √
• Work gets done√ in time/on schedule. √
• Line of command/communication is clear√ as followers know exactly what to do. √
• Direct supervision√ and strict control ensure high quality products/service. √
AND/OR
Negatives/Disadvantages
• Workers can become demotivated√ if their opinions/ideas are not considered. √
• De-motivated workers impact negatively√ on productivity. √
• New/Creative reducing ideas√ may not be used. √ Max (8)
2.4.3 Situations in which the laissez-faire or free-reign leadership style can be applied in the
workplace
• Subordinates are experts and know what they want/can take responsibility for their actions. √√
• The leader is very busy and delegation of tasks will increase productivity. √√
• Team members need to improve/develop leadership skills. √√
• Suitable when employees are highly experienced and know more about the task than the leader.
√√
NOTE: Learners will only be marked the first THREE responses as the number of facts required
is specified in the question. (3x2) (6)
QUESTIONS ON THE ROLE OF PERSONAL ATTITUDE IN SUCCESSFUL LEADERSHIP
MOUNTAIN HOTEL (MH)
Sihle, the owner of Mountain Hotel, applies the democratic leadership style in managing his
employees. He has a positive attitude and knows that there is always more to learn. Sihle models
the behaviour that he wants to see in his followers.
2.5.1 Quote TWO roles of personal attitude in successful leadership displayed by Sihle in the
scenario above. (2)
2.5.2 Discuss other roles of personal attitude in successful leadership. (6)
12
Tips
• Learners should not confuse the above question with the qualities of a good
entrepreneur/leader or suggest strategies to improve leadership
• They should focus on a “positive” personal attitude in successful leadership.
• Positive responses are expected from learners as the focus is on successful leadership
• Learners must be encouraged to write full responses when answering this question as
ticks will be separated when action verbs such as “discuss and explain” are used.
REQUIRED RESPONSES
2.5 The role of personal attitude in successful leadership
2.5.1 The role of personal attitude in successful leadership the scenario
• He has a positive attitude and knows that there is always more to learn
• Sihle models the behaviour that he wants to see in his followers.
NOTE: 1 Only the first TWO responses will be marked.
2 Responses must be quoted as is “verbatim “from the scenario
(2x1) (2)
2.5.2 Other roles of personal attitude in successful leadership
• Positive attitude releases leadership√ potential. √
• Enthusiasm produces√ confidence in a leader. √
• A leader's good/bad attitude can influence√ the success/failure of the business. √
• Great leaders understand that the right attitude√ will set the right atmosphere√.
• Enthusiasm produces confidence√ in a leader. √ Max (6)
QUESTIONS ON LEADERSHIP THEORIES
2.6 Tammy allocates tasks to employees according to their level of maturity.
2.6.1 Name the leadership theory that Tammy is applying. (2)
2.6.2 Describe the leadership theory identified in QUESTION 2.6.1. (8)
2.7 Discuss the transformational leadership theory. (6)
13
Tips
• Learners should be able to identify the leadership theories from given scenarios and
statements.
• Leadership theories should not be confused with leadership styles.
• Split ticks will apply when responses for questions 2.6.2 and 2.7 are marked.
NOTE: The transitional leadership theory has been left on purpose as it is covered by the
transformational theory, as both speak to change.
NOTE: Learners may be asked a following direct middle or high order question on this topic e.g.
• Discuss/Explain the following theories of management and leadership.
o Situational leadership
o Transformational leadership
• Remember that ticks will be split when marking Q2.7 above hence learners’ responses
should be in full sentences
REQUIRED RESPONSES
2.6 Leadership theories
2.6.1 Leadership theory from the scenario

• Situational leadership theory√√ (2)
2.6.2 The situational leadership theory

• Different leadership characteristics are needed√ for different situations. √
• Relationships between leaders and employees√ are based on mutual trust/
respect/loyalty/integrity/honesty. √
• Leaders have the ability to analyse the situation/get the most suitable people in the right
positions√ to complete tasks successfully.√
• The task/situation dictates the leadership style that should be applied√, so leaders are
adaptable/flexible/self-assured.√ Max (8)
2.7 The transformational leadership theory

• Suitable for a dynamic environment, √ where change could be drastic. √
• Leaders have the trust/respect/admiration√ of their followers/subordinates. √
• Encourages followers √to explore/try new things/opportunities. √
• Leaders lead by example√ and make workers interested in their work.√
Max (6)
14
SECTION C: ESSAY QUESTIONS ON MANAGEMENT AND LEADERSHIP
QUESTION 3
Managers and leaders have realised that they need both management and leadership skills for
successful business ventures. They are also in agreement that personal attitude plays an important
role in promoting a good team spirit.
Write an essay on management and leadership in which you discuss the following aspects:
• Outline the differences between management and leadership.
• Discuss the role of personal attitude in successful leadership.
• Analyse the impact of democratic and laissez-faire/free reign leadership styles on businesses.
• Recommend situations in which the above-mentioned leadership styles could be applied in the
workplace. [40]
Tips
• Learners must be advised to write the word “introduction” for Layout.

• The introduction should reflect any one OR two sub questions of the essay
• Advise learners to refrain from repeating words/statements that were used in the
preamble /question paper.
• It is advisable for learners not to write the word BODY on the essay to avoid forfeiting
marks if they write a sub-heading under the introduction.
• Learners must be advised to write the FOUR sub-headings of the essay question so that
they can at least obtain ONE mark for analysis.
• They must also be encouraged to at least obtain 16 marks or more for facts so that they
can obtain another mark for analysis.
• The conclusion should consist of a meaningful fact without repeating facts that were
written in either the introduction or body.
• They will be awarded 2 marks for one complete fact in the conclusion.
NOTE: The maximum marks that can be obtained for facts are 32. This includes the introduction as
well as the conclusion. The other 8 marks is allocated for LASO.
Total mark for the essay is 40.
15
QUESTION 3
REQUIRED RESPONSES
3.1 Introduction
• Good leaders can also be good managers, as both can inspire/energise people and bring about
change.√
• Leaders and managers can create opportunities and motivate people to be productive which
lead to successful businesses.√
• Managers who ignore their leadership role will not be able to motivate people to get the job
done successfully.√
• Leadership styles guide leaders/managers on how to address/manage certain situations.√
Any (2×1) (2)
3.2 Differences between leadership and management

LEADERSHIP MANAGEMENT
Communicates by means of Communicates through management functions,

interaction/behaviour/vision/charisma.√√ e.g. line function. √√
Influences human behaviour.√√ Guides human behaviour..√√
Innovates/Encourages new ideas to increase Administers plans/programs/tasks to reach

productivity.√√ targets
Motivational/Inspirational in their Instructional in their approach.√√

approach.√√
Max (12)
3.3 Roles of personal attitude in successful leadership
• Positive attitude√ releases leadership√ potential. √
• A leader's good/bad attitude can influence√ the success/failure of the business.√
• Great leaders understand that the right attitude√ will set the right atmosphere√.
• Enthusiasm produces confidence√ in a leader. √
• Leaders with a positive attitude know that there is always more√ to learn/space to grow. √
Max (6)
16
3.4 Impact of democratic and laissez-faire/free reign leadership styles on businesses.
3.4.1 Impact of the democratic leadership style on businesses
• Clear/Two way communication ensures group commitment√ to final decision(s).√
• Authority is delegated which can motivate/inspire workers√ to be more productive.√
• Complex decisions can be made√ with inputs from specialists/skilled workers.√
AND/OR
• Incorrect decisions may be made√ if staff is inexperienced/not fully informed.√
• Decision making may be time consuming√ because stakeholders have to be consulted.√
• Employees may feel discouraged√ if their opinions/inputs are not considered √
Sub max (8)
3.4.2 Impact of the Laissez-Faire leadership style on businesses

Positives/ Advantages
• Workers/Followers are allowed to make decisions√ on their own work/ methods.√
• Subordinates have maximum freedom√ and can work independently.√
• Subordinates are experts√ and know what they want/can take responsibility for their actions. √
• Individual team members may improve/develop√ leadership skills. √
AND/OR
Negatives/ Disadvantages
• Lack of clear direction/leadership may be demotivating√ to employees. √
• Employees can be held responsible for their own work√ which may lead to underperformance. √
• Workers are expected to solve√ their own conflict situations. √
• Productivity might be low, √ if employees lack the necessary knowledge or skills.√
Sub max (8)
Max (16)
3.5 Ways in which the democratic and Laissez faire leadership styles can be applied in the workplace
3.5.1 Application of the democratic leadership style

This leadership style can be applied when:
• Group members are skilled and eager to share their ideas. √√
• The leader does not have all the information needed to make a decision and employees have
valuable information to contribute. √√
• Cooperation is needed between a leader and a team. √√
• Decisions need to be looked at from several perspectives√√
Sub max (6)
17
3.5.2 Application of the laissez-faire/ Free reign
This leadership style can be used when:
• Subordinates are experts and know what they want/can take responsibility for their actions.√√
• The leader is very busy and delegation of tasks will increase productivity.√√
• Team members need to improve/develop leadership skills.√√
• Suitable when employees are highly experienced and know more about the task than the
leader.√√
Sub max (6)
Max (12)
3.6 Conclusion
• Managers can also be successful leaders if they not only focus on the task at hand, but also the
people/workers who will execute the task.√√
• Leaders who understand various leadership styles and theories may be able to lead effectively
and handle any situation. √√
Any (1x2) (2)
TOPIC: INVESTMENT SECURITIES

Exam guidelines for investment :securities
Learners should be able to:
• Outline/Explain/Discuss the functions of the JSE.
• Investigate a range of available business investment opportunities.
• Outline/State/Describe/Explain/Discuss the following factors that should be considered when
making investment decisions:
o Return of investment (ROI)
o Risk
o Investment term/period
o Inflation rate
o Taxation
o Liquidity
o Personal budget
o Investment planning factors
o Volatility/Fluctuations on investment markets
• Explain/Discuss the various types of investments opportunities e.g. fixed property, stokvels,
managed portfolio and venture capital etc.
• Explain the risk factor of each type of investment opportunity.
• Explain/Discuss/Analyse/Evaluate (positives/advantages and/or negatives/ disadvantages) of the
following forms of investment:
o Government/RSA retail savings bonds
o Unit trusts
o Shares
o Fixed deposit
18
o Identify the following types of shares from given scenarios/statements:
o Ordinary shares
o Preference shares
o Bonus shares
o Founders shares
o Name/Outline/Explain/Discuss types of preference shares.
o Outline/State the rights of ordinary and preference shareholders.
o Identify types of preference shares from given scenarios/statements.
o Differentiate/Distinguish between ordinary and preference shares.
o Define/Explain the meaning of debentures, dividends, capital gain, simple interest, compound
interest.
o Differentiate/Distinguish between simple interest and compound interest.
o Calculate simple and compound interest from given scenarios.
o Recommend the best investment option based on the calculations.
QUESTIONS ON INVESTMENT SECURITIES
QUESTION 1
1.1 Outline FOUR functions of the JSE. (6)
Tips
• Learners must be able to write the functions of the JSE in full sentences
• Even though 2 marks is allocated at the end of each response, learners
may be awarded part marks for writing incomplete responses, e.g. “Serves
as a link” etc
• Learners must know that when the number of facts is specified as the
question above, only the first FOUR responses will be marked.
NOTE: Learners may be asked a following direct middle order question on this
topic e.g.
o Explain/Discuss the functions of the JSE
• The above question requires the same response as Q1.1 below, however
split tick will be use when learners’ responses are marked.
REQUIRED RESPONSES
1.1 Functions of the JSE

• Acts as a link between investors and public companies.√√
• Shares are valued and assessed by experts.√√
• Provides protection for investors.√√
• Encourages short-term investment.√√
NOTE: Learners will only be marked the first FOUR (4) responses as the number of facts is specified in
the question. (4x1) (4)
19
1.2 Explain the following factors that must be considered when making investment decisions:
1.2.1 Return on investment (4)
1.2.2 Liquidity (4)
1.2.3 Risk (4)
1.2.4 Investment period (4)
Tips
• The focus should be on how the above factors influence the decision to invest.
• Learners should be advised not to only focus on a definition of each decision factor.\
• They may be asked the following direct middle order question on this topic e.g.
o Explain/Describe the factors that must be considered when making
investment decisions.
• The above question requires learners to first name the factor and explain the reason
why this factor influence a decision to invest.
• Learners may also be asked the following question on this content
o Explain how the period of investment and risk may influence the decision to
invest in shares
• The above question requires learners to explain “HOW” these factors influence a
decision to invest.
• They will not be awarded marks for defining the meaning of the above decision
factors.
NOTE: Learners must refer to the other factors that contribute to a decision to invest in
chapter 6 revised notes 2020, pages 4-5. These factors can be assessed in either section A, B
or C.
REQUIRED RESPONSES
1.2 Factors that must be considered when making investment decisions
1.2.2 Return on investment

• Refers to income from the investment, √ namely interest/dividends/increased capital growth on
the original amount invested. √
• High risk investments√ yield higher returns. √
• Generally, there will be a direct link between risk √and return. √ Max (4)
1.2.2 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 of time. √
Max (4)
20
1.2.3 Risk
• Shares have low/medium risk√ over a longer investment period.√
• Shares with higher risk 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.√
Max (4)
1.2.4 Investment period
• This refers to the duration of the investment√ which may influence the return on investment.√
• The longer the investment period√ the higher the returns. √
• The investment period will depend√ on an investor's personal needs.√
Max (4)
1.3 Identify the types of investment opportunities that were used by Prime Plumbers in EACH
statement below:
1.3.1 Prime Plumbers invested R50 000 for six months at 12% interest with a financial
institution
1.3.2 Prime Plumbers received dividends for their portion of ownership in Blue Range Ltd. (4)
1.3.3 Evaluate the impact EACH of form of investment identified in QUESTION 1.3.1 & 1.3.2
(8)
Tips
• The level of difficulty of the above question is high as learners must apply
knowledge.
• This means that they must be able to explain the investment opportunities
in order to be able to identify these opportunities from given statements.
NOTE: Learners may be asked a following direct middle and high order question on
this topic e.g.
o Discuss the impact of the forms of investment (Middle order question)
o Evaluate the impact of the forms of investment (High order question)
The above questions require learners to provide complete sentences as ticks will
be separated to facilitate objective marking.
• Learners must refer to chapter 6 revised notes pages 9-11 on the other
forms of investment
21
REQUIRED RESPONSES
1.3 Types of investment opportunities from statements
1.3.1 Fixed deposit√√
1.3.2 Shares√√ (4)
1.3.3 Impact of fixed deposit and shares
Impact of fixed deposit

• The period of investment√ can be over a short/medium/long term.√
• Investors can choose the investment period√ that suits them.√
• Principal amount plus interest earned is paid out√ on the maturity date.√
AND/OR
• The investor cannot withdraw their funds√ before the maturity date.√
• Low returns compared√ to other investments.√
• May not outperform the effect of inflation√ over long term.√
Max (8)
Impact of shares
• Can be freely transferred/traded√ on the JSE.√
• Shareholders have voting rights √at the annual general meeting (AGM).√
• Investing in shares provides protection√ against inflation.√
• Investing in shares can provide solid returns√ at retirement age.√
AND/OR
• Shareholders may receive less dividends/no dividends√ when company profits are low.√
• Companies have no legal obligation to pay dividends√ to shareholders.√
• Risk may be high, as investment may be lost√ when companies are liquidated.√
Max (8)
1.4 Identify the type of shares represented by EACH statement below
1.4.1 Shares are issued to existing shareholders as compensation for loss of dividends.
1.4.2 Shareholders receive their dividends before others can be paid out.
1.4.3 These shares are issued to shareholders who started the company
1.4.4 These shareholders may receive higher dividends when the company has made large
profits. (8)
22
Tips
• Learners must not confuse the types of shares with the types of preferences
shares
• Teachers must ensure that learners know the explanation of each type of
shares so that they can identity these shares from given statements/scenarios.
NOTE: Learners may be also asked the following questions on shares:

o Name/Discuss types of preference shares.
o Outline/State the rights of ordinary and preference shareholders.
• Teachers must ensure that learners also know how to explain each types of
preference shares as this topic can be asked either section A,B or C.
• Learners may also be asked to identify the types of preference shares from
given statements/scenarios.
REQUIRED RESPONSES
1.4 Types of shares from given statements
1.4.1 Bonus √√
1.4.2 Preference √√
1.4.3 Founders√√
1.4.4 Ordinary √√ (8)
1.5 Read the scenario below and answer the questions that follow
Ronnete wants to invest R30 000 in a fixed deposit for two years. She approached two banks.
Saints Bank offered her 12% simple interest per annum and Caprica Bank 12% compounded
interest per annum.
1.5.1 Calculate the interest amount Ronnete will receive after two years if she invests with
Saints Bank. (3)
1.5.2 Calculate the interest amount Ronnete will receive after two years if she invests with
Caprica Bank. (4)
1.5.3 Recommend the best investment option for Ronnete. Motivate your answer. (3)
23
Tips
• Learners must read scenarios carefully before answering the questions

• They must use the Business Studies formulae for the calculation of simple and
compound interest
• A total of 4 marks may be awarded for simple interest and 5 marks for
compound interest.
• They must be advised to show all the calculations in order to obtain marks for
the workings if the final answer is incorrect.
• Learners may be asked the following middle order questions on simple and
compound interest
o Differentiate/Distinguish between simple interest and compound
interest.
• Teachers are advised to also drill learners on the differences between these
concepts.
REQUIRED RESPONSES
1.5 Simple and compound interest

1.5.1 Calculation of simple interest of the above scenario
FORMULA: Interest = P x R x T √
R30 000√ x 12% x 2 years√ = R7200√ Max (4)
1.5.2 Calculation of Compound interest of the above scenario

Option 1
Year 1: R30 000√ x 12% = R3600 √
Year 2: R33 600 √x 12% = R4032√
Total interest = R7632 √
OR
Option 2
FORMULA: P x (1 + r)n√
R30 000√ x (1+12/100)2 √
R30 000 x (1.12)2 =R37 632√
Total interest = R37 632- R30 000
= R7632√ Max (4)
1.5.3 Recommendation on the best investment option based on the calculations

Compound interest√√ (2)
Motivation
Compound interest yields a higher interest of R7 632 than the simple interest/ Ronnete earns
interest on interest accrued. √ (1)
Max (3)
24
QUESTION 2: ESSAY ON INVESTMENT: SECURITIES
Recently Mpho Car Wash made large profits due to excellent services rendered. Mpho, the owner,
wants to invest his surplus funds in unit trusts and buy shares which are listed on the Johannesburg
Security Exchange Ltd (JSE).
Write an essay on investment securities in which you include the following aspects:
• Discuss the functions of the JSE.

• Explain the following factors that must be considered when making investment decisions.
o Return on investment
o Investment period
o Liquidity
• Describe any FOUR types of preference shares.
• Advise Mpho on the effectiveness of unit trusts as a good investment option.
Tips
• Refer to page 15 above on how learners should respond to essay

questions.
• The word “effectiveness” in this context means “only positive responses
are required as the question ends in a positive note e.g. “ as a good
investment option”
• The action verb “ advise” is a high order verb and require learners to
provide complete responses Therefore, two ticks will appear at the end of
each response.
REQUIRED RESPONSES
2.1 Introduction
• Investors have a range of investment opportunities to choose from.√
• They measure these investment opportunities against criteria for good investment.√
• Investors set financial goals and consider different factors when making these decisions.√
• Entrepreneurs who started business ventures must show a return on their investment.√
Any (2×1) (2)
2.2 Functions of the JSE

• Acts as a link between investors√ and public companies.√
• Shares are valued and assessed√ by experts.√
• Provides protection√ for investors.√
• Encourages short-term√ investment.√ MAX (8)
25
2.3 Factors to be considered when making investment decisions
2.3.1 Return on investment

• Refers to income from the investment, √ namely interest/dividends/increased capital growth on
the original amount invested.√
• High risk investments√ yield higher returns.√
• Generally, there will be a direct link between risk √and return.√ Sub max (4)
2.3.2 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 of time. √
Sub max (4)
2.3.3 Investment period
• This refers to the duration of the investment√ which may influence the return on investment.√
• The longer the investment period√ the higher the returns. √
• The investment period will depend√ on an investor's personal needs.√ Sub max (4)
Max (12)
2.4 Types of preference shares
2.4.1 Participating preference shares√√

Shareholders:
• are guaranteed minimum√ fixed dividends.√
• are entitled to share in any√ surplus company profits.√
• receive higher dividends√ when the company performs well.√
• have preferential rights over ordinary shares√ on repayment when the company closes down.√
Sub max (4)
2.4.2 Non-participating preference shares

Shareholders:
• receive an amount equal to the initial investment√ plus accrued and unpaid dividends upon
liquidation.√
• do not have right to participate in profits√ after equity shareholders have been paid a dividend.√
• will not get extra dividend√ in case of surplus profits.√
• entitled to receive only a fixed rate of dividend√ every year.√ Sub max (4)
26
2.4.3 Cumulative preference shares√√
• Shareholders are compensated for past dividends that were not paid out√ when profits were too
low to declare dividends√/Receive dividends not√ previously paid out.√
2.4.4 Non-cumulative preference shares√√

• Shareholders are not compensated for past dividends√ that were not paid out when profits were
low.√ Sub max (4)
2.4.5 Redeemable preference shares√√

• Shares can be redeemed/bought back at the option of the issuing company√, either at a fixed
price on a specified date/over a certain period of time.√ Sub max (4)
2.4.6 Non-redeemable preference shares√√

• Shares are only bought back when the company closes down√ for reasons other than
bankruptcy.√ Sub max (4)
2.4.7 Convertible preference shares√√

• Shares can be converted into a predetermined number of ordinary shares√ on the date specified
when the preference shares were issued.√ Sub max (4)
2.4.8 Non-convertible preference shares√√

• Shares cannot be converted√ into ordinary shares.√ Sub max (4)
NOTE:Learners will only be marked the first FOUR (4) responses. Max (16)
2.5 Effectiveness/Advantages of unit trusts as a good investment

• Managed by a fund manager who buys shares on the stock exchange/JSE.√√
• Safe investments, as it is managed according to rules and regulations.√√
• A small amount can be invested per month.√√
• Generally beats inflation on the medium/long term.√√
• 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. √√ Max (10)
2.6 Conclusion
• A business that is managed successfully will make a number of investments over a period of
time.√√
• Businesses should invest extra cash to generate more income rather than leaving it in the
business's current account.√√ Any (1x2) (2)
27
TOPIC: INVESTMENT INSURANCE
Exam guidelines for investment insurance:
• Define/Elaborate on the meaning of insurance
NON-COMPULSORY INSURANCE
• Explain/Elaborate on the meaning of non-compulsory insurance
• Explain/Elaborate on the meaning of the following insurance concepts
o Over-insurance
o Under-insurance
o Average clause
o Reinstatement
• Explain the differences between over and under insurance.
• Differentiate/Distinguish between insurance and assurance. Give examples.
• Name/Give examples of short term and long-term insurance.
• Name/State/Explain/Discuss the following principles of insurance:
o Indemnification/Indemnity
o Security/Certainty
o Utmost good faith
o Insurable interest
• Apply the average clause to calculate the compensation in the case of under-insurance.
• Discuss/Explain the advantages/importance of insurance.
• Explain the meaning of insurable and non-insurable risks.
• Outline/State/Give examples of insurable and non-insurable risks.
COMPULSORY INSURANCE
• Explain/Elaborate on the meaning of compulsory insurance.
• Discuss/Explain types of compulsory insurance e.g. Unemployment Insurance Fund (UIF), Road
Accident Fund (RAF)/Road Accident Benefit Scheme (RABS)/Compensation for Occupational
Injuries and Diseases Fund (COIDA).
• Explain the types of benefits paid out by the UIF.
• Identify types of compulsory insurance from given scenarios/statements.
• Explain/Differentiate/Distinguish between compulsory and non- compulsory insurance and give
examples.
• Keep abreast of the changes in legislation from time to time e.g. the RAF is currently changing to
the RABS (Road Accident Beneficiary Scheme).
28
QUESTIONS ON INVESTMENT INSURANCE
QUESTION 1
1.1 List THREE examples of insurable risks. (3)
Tips
o Learners should not confuse the examples of insurable risks with examples
of assets that are insurable. The focus should be on “risk” such as fire/theft
etc.
o Learners will only be marked the first THREE responses as the number of
facts required is stated in the question.
o They may also be required to explain the insurable and non-insurable risks.
o They may also be asked to identify insurable risks from scenarios and
statements.
REQUIRED RESPONSES
1.1 Examples of insurable risks

• Theft√
• Burglary√
• Money in transit√
• Fire√
NOTE: Learners will only be marked the first FOUR examples. (4x1) (4)
1.2 Explain the meaning of the following insurance concepts:

1.2.1 Underinsurance (4)
1.2.2 Over insurance (4)
1.2.3 Average clause (4)
1.2.4 Reinstatement (4)
Tips
• Learner responses must be elaborated instead of only focusing on the
definition as informed by the mark allocation of each concept above.
• They should not confuse the meaning of under-insurance with the
meaning of average clause.
• It should be noted that the average clause applies when goods are under-
insured.
• Learners may be required to identify the above-mentioned insurance
concepts from scenarios/ statements.
29
REQUIRED RESPONSES
1.2 INSURANCE CONCEPTS
1.2.1 Under-insurance
• Occurs when property or assets are insured√ for their full market value. √
• The property/asset is insured for less than the current/actual value√ of the property/assets√
Max (4)
1.2.2 Over insurance

• Over insurance is when the item is insured for more√ than the actual market value.√
• Businesses will not receive a pay-out larger than the value of the loss√ at market value.√
• This means that the extra money paid for the premiums√ will not be paid out to the insurer if
there is a claim for a loss. √ Max (4)
1.2.3 Average clause

• A stipulation set by the insurer√ which is applicable when property/goods is under
insured/insured for less than its market value. √
• The insurer will pay for insured loss/damages√ in proportion to the insured value.√
• This means that the insured is responsible for a part of the risk√ that is not insured.√
Max (4)
1.2.4 Reinstatement
• This stipulation is applicable√ when property/goods are over insured.√
• The re-instatement value will not be higher than the market value√ of the loss.√
• Insured is returned to almost the same financial position√ as before the loss occurred.√
Max (4)
TOP TRADERS (TT)
Top Traders bought stock worth R400 000 but insured it for R300 000. A fire in the warehouse
destroyed stock to the value of R60 000.
1.3.1 Name the insurance clause that is applicable to the scenario above. (2)
1.3.2 Calculate the amount that Top Traders will receive as compensation from the insurer.
Show ALL calculations. (4)
1.3.3 Explain why Top Traders did not qualify for the full amount of damages sustained. (4)
30
Tips
• Learners should know that the average clause only applies to
goods/property that is under-insured.
• Learners should be well conversant with the formula for calculating the
average clause as this will enable them to calculate the correct answer.
REQUIRED RESPONSES
1.3 Insurance concept
1.3.1 Average clause√√ (2)
1.3.2 Calculations on the average clause
FORMULA
Amount insured x Amount of damages/loss√
Value of insured item
R300000√ x R60000√
R400000
=R45000√ Max (4)
1.3.3 Reasons for not qualifying for the full amount of damages
• Peter insured his house for less (R300 000) than the market value
(R400 000). √
• He was underinsured so the average clause had to be activated. √
• He will only receive R45 000 for damages, and not the full amount of the claim
(R60 000). √ Max (4)
1.4 Explain the advantages of insurance for businesses. (8)
Tips
• Learners must be advised that key word “protect” appears four times in
this content and “transfers” appears two times.
• The above-mentioned key words may help them to remember the
advantages of insurance for businesses.
• Teachers are advised to only focus on the advantages of insurance for
businesses.
31
REQUIRED RESPONSES
1.4 Advantages of insurance for businesses

• Transfers the risk from the business/insured to an insurance company/insurer.√√
• 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 businesses from claims made by members of the public for damages that the that the
business is responsible for.√√ Max (8)
1.5 Distinguish between insurance and assurance. (8)
Tips
• Learners must know that both insurance and assurance form part of non-
compulsory insurance.
• Teachers are advised to explain the meaning of the principles of
indemnification and security when explaining the differences between
insurance and assurance.
• This will make it easy for learners to have a better understanding of the
differences between these principles when they are taught in the next sub-
topic.
• Learners should refrain from providing word answers when explaining the
distinction between insurance and assurance.
• They must also know the examples of insurance and assurance as this also
forms part of examples between short- and long-term insurance that must
be taught in the next topic as per the exam guidelines.
REQUIRED RESPONSES
1.5 Distinction between insurance and assurance
INSURANCE ASSURANCE
Based on the principle√ of indemnity√ Based on the principle√ of security/
certainty√
It covers a specified event √ that may√ Specified event is certainty, but the time
occur of the event√ is uncertain√
Applicable to short term insurance√ Applicable to long term insurance√
Examples Examples
Property insurance/money in Life insurance/endowment policies/
transit/theft/burglary/fire√ retirement annuities, √
NOTE: The answer does not have to be in tabular format and do not have to link but the distinction
must be clear. Max (8)
32
1.6 Discuss any TWO principles of insurance. (6)
Tips
• Learners must be able to write the full name of each insurance principle to
avoid losing marks.
• They will only be marked the first TWO responses as the number of facts
required is stated in the question.
• They must know the alternatives answers of the principle of indemnification
and security.
• Learners must also be able to identify the principles of insurance from given
statements/scenarios.
• Teachers must ensure that learners know at least two facts for EACH principle
so that they can obtain better marks in both section B and C.
REQUIRED RESPONSES
1.6 Principles of insurance
1.6.1 Indemnification/Indemnity√√
• Usually applies to short term insurance, as the insured is compensated for specified/proven
harm/loss. √
• Insurer agrees to compensate the insured for damages/losses specified in the insurance
contract, in return for premiums paid by the insured to the insurer. √
• Protects the insured against the specified event that may occur. √ Sub max (3)
1.6.2 Security/Certainty√√
• Applies to long-term insurance where the insurer undertakes to pay out an agreed upon amount in
the event of loss of life. √
• Aims to provide financial security to the insured at retirement/the dependents of the deceased.√
Sub max (3)
1.6.3 Utmost good faith√√
• Both parties/insurer and insured must disclose all relevant facts. √
• Insured must disclose everything that may affect the extent of the risk. √ Sub max (3)
1.6.4 Insurable interest√√

• Insured must prove that he/she will suffer a financial loss if the insured object is
damaged/lost/ceases to exist.√
• An insurable interest must be expressed in financial terms.√
• Insured must have a legal relationship with the insured object in the contract. √ Sub max (3)
NOTE: Learners will only be marked the first TWO (2) responses. (2x3) (6)
33
1.7 Identify the type of compulsory insurance applicable to EACH statement below.
1.7.1 Nathalie broke her leg when her car collided with another car and she is demanding
compensation.
1.7.2 Piet lost his job due to retrenchment and he is claiming compensation from the
Department of Labour.
1.7.3 Jammy LTD ensures that the workplace is safe to avoid unnecessary accidents.
(6)
Tips
• Learners must be well conversant with the description of EACH type of
compulsory insurance so that they are able to answer question 1.7 above.
• They should not confuse a compulsory insurance with the examples of long
-term insurances as stated in the national diagnostics reports.
• Learners must only focus on the benefits offered by the Compensation
Fund/Compensation for Injuries and Diseases Fund to employees.
• Teachers must note that although the exam guidelines makes reference to
COIDA as one of compulsory insurance. However, the correct terminology
is the one stated above.
• Learners must write the full name of each compulsory insurance.
• They will not be awarded marks for “Workman Compensation “instead of
“Compensation Fund/Compensation for Injuries and Diseases Fund”.
• They will also not be awarded marks for “third party” instead of “Road
Accident Fund/RABS.
REQUIRED RESPONSES
1.7 Compulsory insurance from given statements
1.7.1 Compensation Fund/ Compensation for Occupational Injuries and Diseases/COIDA√√
1.7.2 Unemployment Insurance Fund/ UIF√√
1.7.3 Road Accident Fund (RAF)/Road Accident Benefit Scheme (RABS) √√ (6)
1.8 Discuss THREE types of benefits covered by the Unemployment Insurance Fund (UIF). (9)
Tips
• Learners must not confuse the types of UIF with the provisions of the Basic
Conditions of Employment Act covered in paper 1.
• The word “leave” must be replace by the word “benefit” e.g. maternity benefit
• They will not be awarded marks for writing the word “leave” at the end of the
response.
• Learners may also be required to discuss the types of UIF benefits
• Learners should not confuse the benefits of UIF with types of leaves
• The above question requires learners to provide a heading and an explanation as
indicated in the memo below.
34
REQUIRED RESPONSES
1.7 Types of benefits covered by the Unemployment Insurance Fund (UIF)
1.7.1 Maternity benefits√√

• Pregnant employees receive these benefits for up to 4 consecutive months. √
• If an employee had a miscarriage, she can claim for up to six weeks/42 days. √
Sub max (3)
1.7.2 Adoption benefits√√
• Employees may receive these benefits if they adopt a child younger than two years. √
• Only one parent/partner may claim. √
Sub max (3)
1.7.3 Dependants' benefits√√
• Dependants may apply for these benefits if the breadwinner, who has contributed to UIF dies. √
• The spouse of the deceased may claim, whether he/she is employed or not. √
Sub max (3)
1.7.4 Unemployment benefits√√
• 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. √
• If a worker voluntarily terminates his/her contract, he/she may not claim. √
• No tax is payable on unemployment benefits. √ Sub max (3)
1.7.5 Illness benefits/ Sickness/ Disability√√

• Employees may receive these benefits if they are unable to work for more than 14 days without
receiving a salary/part of the salary. √
• Employees may not claim these benefits if they refuse medical treatment. √ Sub max (3)
NOTE: Learners will only be marked the first THREE responses as the number of facts is specified in the
question. Max (9)
35
TOPIC: FORMS OF OWNERSHIP
Exam guidelines for forms of ownership

• Discuss/Explain the characteristics of each form of ownership.
• Explain the meaning of limited liability and unlimited liability.
• Discuss/Explain/Evaluate the impact (positives/advantages and/or negatives/ disadvantages) of
the different forms of ownership.
• Explain/Discuss how the following criteria could contribute to the success and/or failure of each
form of ownership:
o Capacity: Refers to the ability/potential of management to start and operate a business
as planned.
o Tax implications: The tax requirements of each form of ownership determine the impact
of taxation on business success/failure.
o Management: Ownership impacts on management functions which determine the
success/failure of the business.
o Capital: Refers to the ability to obtain capital from various sources (e.g. own/borrowed
capital). The amount of capital that can be sourced will also impact on business
success/failure.
o Division of profits refers to how profit is divided between owner(s)/shareholders/
investors.
o Legislation/Legal requirements for establishment/starting a business impact on the
establishment costs and time before a business can legally do business.
QUESTIONS 1
1.1 Outline THREE characteristics of a private company (6)
Tips
• The action verb “Outline” requires learners to provide a summary of facts.
• Learners will not be awarded marks for one or two words.
• Teachers are advised to recap all forms of ownership that are stated in the
2020 exam guidelines.
• It is also important to note that the maximum number of shareholders of
the private company is now unlimited.
• Teachers are requested to keep abreast with the latest development
regarding the establishment of companies.
36
REQUIRED RESPONSE
1.1 Characteristics of a private company

• Requires one or more directors and one or more shareholders. √√
• Raises capital by issuing shares to its shareholders. √√
• The company name ends with letters (PTY) Ltd.√√
• Investors put capital in to earn profit from shares. √√
NOTE: Only the first THREE (3) learner responses will be marked (3X2) (6)
1.2 Distinguish between a private company and a public company. (8)
Tips
• Learners must provide complete sentences so that they can be awarded
two marks for each fact as ticks will be separated in this regard.
• They must also be advised on how this question will be marked as
indicated in the memo below.
REQUIRED RESPONSES
1.2 Differences between the private and public company

PRIVATE COMPANY PUBLIC COMPANY
Shares are not freely√ transferable√ Shares are freely√ transferable. √
Minimum of one√ director. √ Minimum of three√ directors. √
Name must end with√ Proprietary Name must end with√ Limited/Ltd. √
Limited/(Pty) Ltd. √
NOTE:…1 The answer does not have to be in tabular format.

2 The differences must be clear but not linked.
3 A maximum of FOUR (4) marks will be awarded if the differences are not clear
4 Either the private company or public company will be marked if the differences are not
clear
37
1.3 Discuss the advantages of a state-owned company (SOC) (8)
Tips
• Learners must not confuse the advantages of a state-owned companies

with the advantages of the government.
• It should be noted that state owned companies form part of profit-
companies even though the prices of their goods and services are
reasonable.
• The establishment procedure of state-owned companies is also the same
as the public company.
REQUIRED RESPONSES
1.3 Advantages of a state-owned company (SOC)
• Profits may be used to finance√ other state departments√
• Offer essential services which may not be offered√ by the private sector√
• Wasteful duplication√ of services is eliminated√
• Jobs are created√ for all skills levels. √ Max (8)
KADIJAH PRINTERS (PTY) LTD
Kadijah Printers (Pty) Ltd needed large amounts of capital for expansion. Their management
decided to convert the company into another type of company, so that they would be able to sell
shares to the public on the JSE.
1.4.1 Identify the form of ownership of Kadijah Printers (Pty) Ltd before they were converted to
another type of company. Motivate your answer. (3)
1.4.2 Explain the characteristics of the form of ownership identified in QUESTION 1.4.1 (6)
1.4.3 Name the form of ownership Kadijah Printers (Pty) Ltd was converted to. (2)
Tips
• Teachers are advised to give learners the opportunity to practice

answering the above question.
• Learners must be trained on how to analyse scenarios before answering
questions.
38
REQUIRED RESPONSE
1.4 Forms of ownership
1.4.1 Forms of ownership from the scenario
Private company√√ (2)
1.4.2 Characteristics of a public company

• A minimum of one person is required√ to start a public company. √
• The company name ends√ with letters Ltd√
• Shareholders have a limited√ liability. √
• Has legal personality√ and therefore has unlimited continuity √ Max (6)
1.4.3 Public company√√ (2)
1.5 Advise businesses on how the following criteria could contribute to the success and/or failure of a
partnership.
1.5.1 Management. (4)
1.5.2 Legislation. (4)
Tips
• Learners must know the characteristics, advantages, and disadvantages of

a partnership in order to answer the above question.
• They must be able to justify/or explain how the above-mentioned criteria
contribute to the success and/or failure of a partnership.
• Learners must be advised to refrain from simply writing the characteristics
of a partnership when the above question is asked.
39
REQUIRED RESPONSES
1.5 Criteria that contribute to the success and/or failure of a partnership.
Factor Success AND/OR Failure

Management • Partners are actively involved√ in • Decision making can be time-
management and may use the ideas consuming√ as all partners have to
of other partners. √ be in agreement√
• Partners have access to expertise of • Different personalities/opinions √
other partners√ when difficult could lead to disagreements. √
decisions have to be made√
Max (4)
Legislation • Easy and cheap to establish, √ as • Unlimited liability/ partners are jointly
partners must draw up partnership and severally liable√ for the debts of
agreement. √ the business. √
• Partners are more motivated √ to • If one partner dies or retires, √ the
make a success because of their remaining partners need to draw up a
personal possessions are at risk. √ new agreement. √
Max (4)
40
TOPIC: PRESENTATION AND DATA RESPONSE
Exam guidelines for presentation and data responses
Learners should develop the following skills:
PRESENTATION
• Outline/Explain/Discuss factors that must be considered when preparing for a presentation.
(Before the presentation)
• Outline/Explain factors that must be considered by the presenter while presenting, e.g. maintain
eye contact/use visual aids effectively/move/do not speak fast/use pauses effectively, etc.
(During the presentation)
• Identify factors that must be considered when preparing for a presentation and during the
presentation from given scenarios/case studies.
• Explain how to respond to questions about work and presentations/handle feedback after a
presentation in a non-aggressive and professional manner. (After the presentation)
• Explain/Suggest/Recommend areas of improvement in the next presentation.
DATA RESPONSE
• Discuss/Explain how to design a multimedia presentation, e.g. start with the text/content, select
the background and /choose relevant images/create graphs.
• Give examples of non-verbal presentations, e.g. written reports, scenarios, types of graphs (e.g.
line, pie and bar charts) as well as other non-verbal types of information such as pictures and
photographs.
• Explain/Discuss /Evaluate the impact (positives/advantages and/or negatives/ disadvantages) of
each visual aid.
• Analyse the effectiveness (positives/advantages and/or negatives/disadvantages) of EACH visual
aid.
• Identify visual aids from given scenarios/ statements.
41
QUESTIONS 1
1.1 Describe the factors that should be considered when preparing for a presentation. (6)
WALLY'S PRESENTATION
Wally, a financial manager, presented her financial report during the Annual General
Meeting. He considered the time frame for her presentation. He also rehearsed to ensure a
confident presentation. Wally maintained eye contact with the audience. He also used
appropriate gestures.
1.2.1 Quote from the scenario above TWO factors that Wally considered when preparing for a
presentation and while presenting. (4)
Use the table below as a guide to answer QUESTION 1.2.1

Factors that Wally considered when Factors that Wally considered while
preparing for a presentation presenting
1.
2.
1.2.2 Explain to Wally OTHER factors that must be considered when preparing a presentation
and while presenting. (12)
1.3 Outline FOUR factors to keep in mind when responding to questions in a non-aggressive and
professional manner after the presentation. (8)
1.4 Read the scenario below and answer the questions that follow:
CHERRYL PRESENTATION
Cherryl conducted a presentation on the impact of COVID-19 on her business. She could not
finish her presentation due to many facts in each slide. She also distributed notes at the
beginning of presentation without realising that some of her audience preferred other types
of visual aids. Some of her audience became less attentive while she was doing her
presentation as she was using too much humour.
1.4.1 Quote THREE errors that Cherryl made while presenting from the scenario above. (3)
1.4.2 Advise Cherryl on how she can improve in her next presentation. (6)
1.5 Outline the aspects to be considered when designing a multi-media presentation. (8)
42
Tips
• Learners must be aware that question.1.1 above, refers to factors that
must be considered before doing a presentation.
• They should not confuse Q1.1 with either factors that must be considered
while presenting or when handling feedback in a non-aggressive and
professional manner after a presentation.
• Teachers are advised to identify key words from each fact that will enable
learners to remember each fact.
• Q1.2 1 requires learners to quote verbatim from the scenario
• Learners must be advised on how they will be marked when the action
verb “describe “is used in any assessment task.
• They must be encouraged to always provide complete sentences.
• Note that responding to questions in a non-aggressive and professional
manner takes please immediately after presenting because time is
allocated for questions when the presenter finishes presenting hence it is
categorised as “after the presentation”.
• Presenters improve on future presentation based on the errors they
identified while presenting.
• Learners will be able to answer Q1.4 if they understand the areas for
improvement in the next presentation.
• They should not confuse aspects that must be considered when designing
a multi-media presentation with factors to consider when preparing for a
presentation.
• A multimedia presentation speaks to guidelines on how to design visual
aids.
REQUIRED RESPONSES
1.1 Factors that should be considered when preparing for a presentation
• Fully conversant with the content/objectives√ of the presentation.√
• Information presented should be relevant√ and accurate.√
• Consider the time frame for presentation, √e.g. fifteen minutes allowed√
• Rehearse√ to ensure a confident presentation/effective use of time management√
• Prepare for the feedback session, √ by anticipating possible questions/comments.√ Max (6)
1.2.1 Factors to be considered when preparing and while preparing for a presentation
Factors that Wally considered when preparing Factors that Wally considered while presenting
for a presentation
He considered the time frame for her Wally maintained eye contact with the
presentation. √ audience√
He also rehearsed to ensure a confident He also used appropriate gestures. √
presentation. √
Max (4)
43
1.2.2 Other factors to be considered when preparing for a presentation and when doing a
presentation
Other factors to be considered when preparing for a presentation

• Fully conversant with the content/objectives√ of the presentation.√
• Main aims captured in the introduction/opening statemen√t of the presentation.√
• Information presented should be relevant√ and accurate.√
• Prepare for the feedback session,√ by anticipating possible questions/comments.√
Sub max (6)
Other factors to be considered when doing a presentation
• The presenter should stand throughout√ the feedback session. √
• The presenter should first listen√ and then respond√
• Keep answers short√ and to the point.√
• Be direct/honest/sincere√ when responding to questions.√
Sub max (6)
Max (12)
1.3 Factors to keep in mind when responding to questions in a non-aggressive and professional
manner after a presentation
• The presenter should stand throughout the feedback session. √√
• The presenter should first listen and then respond. √√
• Be polite/confident/courteous when responding to questions. √√
• Ensure that each question/comment is clearly understood before responding/re-phrase
questions if uncertain. √√
• Keep answers short and to the point. √√
• Be direct/honest/sincere when responding to questions. √√
• Always address the questions and not the person√√
• Encourage questions from the audience/investors. √√
• Acknowledge good questions to motivate audience to ask more questions. √√
NOTE: Learners will only be marked the first FOUR (4) responses only. (4x2) (8)
1.4 Areas of improvement in the next presentation

1.4.1 Errors that Cherryl made while presenting from the scenario
• She could not finish her presentation due to many facts in each slide. √
• She also distributed notes at the beginning of presentation without realising that some of her
audience preferred other types of visual aids. √
• Some of her audience became less attentive while she was doing her presentation as she was
using too much humour. √
NOTE: Learners will only be marked the first THREE (3) responses that are quoted from the
scenario. (3×1) (3)
44
1.4.2 Areas of improvement in the next presentation
• Use humour appropriately. √√
• Reflect on the time/length of the presentation to add/remove content. √√
• Increase/Decrease the use of visual aids or replace/remove aids that do not work well. √√
• The presenter should revise objectives that were not achieved√√
• Always be prepared to update/keep the information relevant. √√
• Reflect on any problem/criticism and avoid it in future presentations. √√
• Reflect on the logical flow of the format/slides/application of visual aids. √√
Max (6)
1.5 Aspects to be considered when designing a multi-media presentation
• Start with the text/headings. √√
• Use legible font and font size. √√
• Select the background√√
• Include/Create graphics. √√
• Keep slides/images/graphs simple. √√ Max (8)
QUESTIONS ON VISUAL AIDS

QUESTION 2
2.1 Identify the type of visual aids represented by EACH of the following statements:
2.1.1 It enables two or more people to have a conversation at different places.
2.1.2 Businesses use this visual aid for small groups during a brainstorming session.
2.1.3 A special pen used that allows the presenter to write on the board and capture the
image on the computer. (6)
2.2 Evaluate the impact of impact of hand-outs/flyers/brochures. (8)
Tips
• Learners must have an in-depth knowledge of each visual aid in terms of
advantages and/or disadvantages.
• This will enable them to identify the visual aids from given
scenarios/statements
• Teachers are advised to use demonstration where possible when teaching
this content.
• Learners must not confuse the impact of PowerPoint with the overhead
projector.
45
REQUIRED RESPONSES
2.1 Visual aids from given statements
2.2.1 Video conferencing/ Skype√√

2.2.2 flip charts√√
2.2.3 Interactive whiteboards/ Smartboards√√ (6)
2.2 Impact of impact of hand-outs/flyers/brochures
• Meaningful hand-outs may be handed out at the start of the presentation to attract
attention/encourage participation.
• Notes/Hard copies of the slide presentation can be distributed at the end of the presentation as a
reminder of the key facts of the presentation.
• It is easy to update hand-outs with recent information or developments.
• Notes may be compared with electronic slides to validate the accuracy.
AND/OR
• Handing out material at the start of the presentation may distract/lose audience attention.
• As it only summarises key information, some details might be lost/omitted.
• Printed material is expensive and it is easy to lose hard copies.
• Increases the risk of unauthorised duplication/use of confidential information.
• Hand-outs cannot be combined with audio material, so it only focuses on the visual aspects of
support material. Max (8)
46
BUSINESS ROLES (PAPER 2)
TOPIC: ETHICS AND PROFESSIONALISM

Examination guidelines for ethics and professional
• Define/Elaborate on the meaning of ethical behaviour.
• Give practical examples of ethical and unethical behaviour, e.g. using fair vs. unfair advertising
techniques.
• Define/Elaborate on the meaning of professional behaviour.
• Give practical examples of professional and unprofessional behaviour, e.g. good use of work
time and abuse of work time.
• Outline the differences/Differentiate/Distinguish between ethical and professional behaviour.
• Explain how businesses can apply the King Code principles of transparency, accountability and
responsibility for good corporate governance to improve ethical business conduct.
• Suggest/Recommend ways in which professional, responsible, ethical and effective business
practice should be conducted, e.g. payment of fair wages, providing quality goods and services,
not starting a business venture at someone else's expense, etc.
• Identify the following types of unethical business practices from given scenarios/statements:
o Unfair advertising and examples
o Pricing of goods in rural areas
o Taxation/Tax evasion
• Explain how the above-stated types of unethical business practices pose challenges to
businesses.
• Identify the following types of unprofessional business practices from given scenarios/
statements:
o Sexual harassment
o Unauthorised use of workplace funds and resources
o Abuse of work time
• Explain how the above stated types of unprofessional business practices pose challenges to
businesses.
• Recommend/Suggest ways in which businesses could deal with above stated types of unethical
business practices.
47
QUESTIONS: 1
1.1 Identify the unprofessional business practices illustrated in EACH statement below:
1.1.1 The director of KNZ Consulting uses the business credit card to pay for personal
expenses.
1.1.2 Employees of Zamu Attorneys spend more time on social networks during office hours
than on their duties. (4)
1.2 Name THREE unethical business practices that may pose challenges to businesses. (3)
1.3 Explain the differences between ethical and professional behaviour. (8)
DORFS FINANCIAL SERVICES LTD (DFS)
Dorfs Financial Services Ltd is failing to attract potential investors due to the company's
poor performance. The shareholders discovered from whistle-blowers that the company's
poor performance is the result of a lack of competency in the board of directors. The
directors of DFS are denying this allegation.
1.4.1 Quote TWO examples of poor corporate governance from the scenario above. (2)
1.4.2 Identify the TWO King Code principles for good governance that DFS did not apply. (4)
1.4.3 Advise DFS on how to apply EACH KING code principle identified in QUESTION 1.4.2 to
improve their corporate governance (8)
Use the table below as a guide to answer QUESTION 1.4.1-1.4.3.

POOR CORPORATE KING CODE APPLICATION OF KING CODE
GOVERNANCE PRINCIPLES PRINCIPLES
Q1.4.1 Q1.4.2 Q1.4.3)
1.
2.
48
NATASHA DÉCOR (ND)
The management of Natasha Décor treats their employees with respect by recognising
work well done. ND ensures that all employees have access to equal opportunities. They
engage in environmental awareness programmes.
1.5.1 Quote THREE ways in which ND conducts business professionally, responsibly, and
ethically (3)
1.5.2 Advise ND on other ways in which professional, responsible, ethical, and effective
business practice should be conducted. (6)
Tips
• Teachers are advised to provide a detailed description of ethical and

professional behaviour.
• It should be noted that ethical behaviour has to do with a business
conduct, while professional behaviour with employees conduct.
• Teachers should refer to the 2020 exam guidelines on types of unethical
and unprofessional busines practices.
• Learners must not confuse these business practices.
• Learners must be advised to write complete sentences when they explain
or distinguish the differences between ethical and professional behaviour
as part marking will be applied.
• Learners should not define the King Code principles, but focus should be
on “how” businesses should apply the King Code principles for good
corporate governance.
• Learners may only be able to answer Q1.4.1 above if they understand the
application of the King Code principles for good cooperate governance.
• Remind learners to quote verbatim from the scenario in Q1.5.1
• Q1.4.2 is a low order difficult question therefore learners must be able to
identify these principles from given scenarios.
• Teachers must ensure that learners provide full facts on Q1.5.2 as this is a
high order question, therefore, two ticks must appear at the end of each
response.
• Learners must not separate responses to accommodate each concept in
Q1.5.2 as this topic is regarded as one.
49
REQUIRED RESPONSES
1.1 Unprofessional business practices from given statements

1.1.1 Unauthorised use of workplace funds and resources√√
1.1.2 Abuse of work time√√ (4)
1.2 Types of unethical business practices

• Unfair advertising and examples√
• Pricing of goods in rural areas √
• Taxation/Tax evasion√
NOTE: Learners will only be marked the first THREE (3) responses. (3×1) (3)
1.3 Differences between ethical behaviour and professional behaviour

Ethical behaviour Professional behaviour
• Refers to the principles of right and • Refers to what is
wrong/acceptable√ in society. √ right/wrong/acceptable√ in a busines√s.
• Conforms to a set of values √that are • Set of standards√ of expected behaviour.
morally acceptable. √ √
• Forms part of a code of conduct√ to guide • Applying a code of conduct√ of a
employees to act ethically. √ profession or business. √
• Focuses on upholding the reputation√ of a • Focuses on developing a moral compass√
business/profession. √ for decision making√
Max (8)
NOTE:…..1 The answer does not have to be in tabular format.
4 Either ethical behaviour or professional will be marked if the differences are not clear
50
1.4 Application of King Code principles
POOR CORPORATE GOVERNANCE KING CODE APPLICATION OF KING CODE

Q1.4.1 PRINCIPLES PRINCIPLES
1.4.2 1.4.3
The shareholders discovered from Transparency√√ • Decisions/Actions must be clear to

whistle-blowers that the all stakeholders. √√
company's poor performance is the • Staffing and other processes
result of a lack of competency in should be open and transparent.√√
the board of directors√
The directors of DFS are denying Accountability√√ • There must be regular

this allegation. √ communication between
management and stakeholders. √√
• Businesses should be accountable/
responsible for their
decisions/actions√√
Sub max 2 Sub max (4) Sub max (8)
Max (14)
NOTE: 1 Learners will not be awarded marks for incomplete quotes.
2 The king Code principle must be linked to quotes
3 The recommendations must be linked to the King Code principle
1.5 Effective business practices

1.5.1 Ways in which ND conducts business professionally, responsibly, and ethically
• The management of Natasha Décor treats their employees with respect by recognising work well
done. √
• ND ensures that all employees have access to equal opportunities√
• They engage in environmental awareness programmes. √
NOTE: Learners will only be marked the first THREE (3) responses quoted from the scenario.
(3×1) (3)
1.5.2 Other ways in which ND conducts business professionally, responsibly, and ethically
• Mission statement should include values of equality/respect.√√
• Plan properly and put preventative measures in place√√.
• Pay fair wages/salaries which is in line with the minimum requirements of the BCEA/Remunerate
employees for working overtime/during public holidays. √√
• Training/Information/Business policies should include issues such as diversity/
discrimination/harassment. √√
NOTE: Learners will not be marked for responses that were quoted in question 1.5.1. Max (6)
51
SECTION C: ESSAYS QUESTIONS ON ETHICS AND PROFESSIONALISM
QUESTION 2
According to the King Code principles, businesses are expected to conduct their operations in an
ethical and professional manner. Many businesses develop strategies to address unethical business
practices remain competitive and sustainable.
Write an essay on ethics and professionalism in which you address the following aspects:
• Elaborate on the meaning of ethical behaviour.
• Explain how the following unprofessional business practices can pose a challenge to businesses:
o Sexual harassment
o Unauthorised use of workplace funds and resources
o Abuse of work time
• Recommend ways in which businesses could deal with above mentioned types of unprofessional
business practices.
• Suggest ways in which professional, responsible, ethical and effective business practice should
be conducted. [40]
Tips
• The essay should consist of an introduction, body and conclusion
• The introduction should reflect any of the four subheadings in the essay and will be
allocated 2 marks for two responses.
• It is advisable for learners not to write the word BODY on the essay to avoid forfeiting
marks if they write a sub-heading under the introduction.
• The body should consist of the FOUR sub-headings on the essay
• Learners should conclude their essay with a new meaningful fact that was not mentioned
either the introduction or body
• A total of 2 marks will be allocated for one full sentence in the conclusion.
• The recommendations of unethical and unprofessional business practice should be
correctional/positive strategies that are developmental rather than punitive in nature.
52
REQUIRED RESPONSES
2.1 Introduction
• Ethical behaviour and business practice are expected from every employee in the business.√
• Ethical and professional behaviour means that the highest legal and moral standards are
upheld when dealing with stakeholders.√
• Businesses that adopt professional, responsible and ethical business practices will remain
profitable/sustainable over a long period of time.√ Any (2×1) (2)
2.2 The meaning of ethical behaviour

• Refers to acting in ways consistent with what society√ and individuals think are good values. √
• Ethical behaviour is expected from every employee√ in the business. √
• It means that the highest legal and moral standards are upheld√ when dealing with
stakeholders. √ Max (6)
2.3 Unprofessional business practices posing challenges to businesses:
2.3.1 Sexual harassment

• The affected party may stay away regularly√ from work.√
• Businesses could lose female employees√ and attract/retain less female applicants. √
• Sexual harassment causes discomfort/humiliation√ and negatively affects work relations in
the workplace.√
• A victim may be severely traumatised√ and this may affect other employees' emotionally.√
• The affected party is normally reluctant to report the incident√ due to fear of victimisation
which can reduce productivity.√ Sub max (6)
2.3.2 Unauthorised use of workplace funds and resources

• Fraud increases the cost of doing business√ and undermine the competitiveness of a
business√
• Discourages investors as fraud√ and corruption increases the risk of investment.√
• The business can experience substantial loss√ if it goes unchecked. √ Sub max (6)
2.3.3 Abuse of work time

• It may result in employees' often abusing work√ time. √
• Abuse of work time could result in losing customers√ or not meeting deadlines.√
• Wasting time costs the business money√ and affects productivity.√
• Abuse of work time results in a decline in profits√ which could damage the financial wealth of
the business.√ Sub max (6)
Max (18)
53
2.4 Ways in which businesses could deal with unprofessional business practices
2.4.1 Dealing with sexual harassment in the workplace

• Provide a framework for corrective action. √√
• Educate employees on sexual harassment matters. √√
• Formulate a policy regarding sexual harassment√√
• Implement internal complaints and disciplinary procedures. √√
• Ensure compliance with the law/business code of conduct√√ Sub max (4)
2.4.2 Unauthorised use of workplace funds and resources

• Conduct regular audits. √√
• Identify risk areas/ vulnerable areas√√
• Educate employees about the impact of fraud√√
• Implement/Introduce fraud prevention strategies√√
• Limit the number of employees having access to business funds/assets. √√ Sub max (4)
2.4.3 Abuse of work time

• Speak directly to those employees who abuse work time. √√
• Monitor employees to ensure that tasks are completed on time. √√
• Code of conduct/ethics should contain clear rules about abuse of work time. √√
• Conduct training on the contents of the code of conduct/ ethics. √√ Sub max (4)
Max (12)
2.5 Ways in which professional, responsible, ethical and effective business practice should be
conducted.
• Mission statement should include values of equality/respect.√√
• Plan properly and put preventative measures in place√√.
• Pay fair wages/salaries which is in line with the minimum requirements of the
BCEA/Remunerate employees for working overtime/during public holidays. √√
• Business policies should include issues such as diversity/ discrimination/harassment. √√
Max (10)
54
2.6 Conclusion
• A business code on ethics and conduct should improve relationships and eliminate unethical
business practices.√√
• Employees who do not adhere to a code of ethics and conduct should be disciplined.√√
• Businesses can make use of good corporate governance to address issues that challenge ethical
and professional behaviour.√√ Any (1x2) (2)
TOPIC: CREATIVE THINKING AND PROBLEM SOLVING

Exam guidelines for creative thinking and problem solving
PROBLEM-SOLVING
• Define/Elaborate on the meaning of problem-solving and decision making.
• Explain/Differentiate/Distinguish between problem-solving and decision making.
• Identify/Name/Outline/Explain/Discuss the problem-solving steps.
• Apply the problem-solving steps from given scenarios/case studies.
• Identify/Name the following problem-solving techniques from given scenarios/statements:
o Delphi technique
o Force field analysis
o Brainstorming
o Nominal group technique
• Explain/Advise businesses on how they can apply the above-mentioned problem-solving techniques
to solve complex business problems.
• Discuss/Evaluate/Analyse the impact (positives/advantage and/or negatives disadvantages) of the
above-mentioned problem-solving techniques.
CREATIVE THINKING
• Define/Elaborate on the meaning of creative thinking.
• Explain the benefits/advantages of creative thinking in the workplace.
• Explain/Recommend ways businesses can create an environment that promotes creative thinking.
55
QUESTIONS ON CREATIVE THINKING AND PROBLEM SOLVING
QUESTION 1
1.1 Elaborate on the meaning of problem solving. (4)
1.2 Distinguish between decision making and problem solving. (8)
1.3 State FOUR steps in problem-solving. (4)
1.4 Identify the problem-solving technique represented by EACH statement below:
1.4.1 Carl gives his employees the opportunity to suggest ideas randomly which are then
written on a flip chart.
1.4.2 The management of Tony's Consulting have listed the advantages and disadvantages of
changing their business structure.
1.4.3 The employees of Shoba Fashion Design have been requested to generate quietly as
many ideas as possible and then to share them with other employees. (6)
1.5 Explain how businesses can apply the problem-solving technique identified in QUESTION 1.4.2.
(8)
1.6 Read the scenario below and answer the question that follow.
SMOOTH FURNITURE LTD (SF)
Smooth Furniture Ltd wanted to change the designs of some of their furniture. Employees
were requested to suggest new ideas in a large group without working individually. These
ideas were used to inspire new thoughts. The management of SF evaluated the advantages
and disadvantages of each idea.
1.6.1 Identify TWO problem-solving techniques used by Smooth Furniture Ltd. Motivate your
answer by quoting from the scenario above. (6)
Use the table below as a GUIDE to answer QUESTION 1.6.1

PROBLEM SOLVING TECHNIQUES MOTIVATIONS
1.
2.
1.6.2 Discuss the impact of ONE of the problem-solving techniques identified in QUESTION 1.6.1
on businesses. (6)
1.7 Discuss the advantages of creative thinking in the workplace. (6)
1.8 Recommend ways businesses can create an environment that promotes creative thinking. (4)
56
Tips
• Learners should be able to provide a detailed description of problem
solving.
• Teachers must identify keywords that can be used to explain the
differences between decision making and creative thinking e.g.
“management “versus “group of people”.
• NOTE that the first three problem solving steps focuses on a problem, but
the other steps focus on strategies/solutions.
• Teachers should first explain the meaning of each problem-solving
technique so that learners are able to identify these techniques from given
• Teachers are advised to first do revision on the application of each
problem-solving technique before they move to the impact. This will
enable leaners to understand the link between these aspects.
• Learners should not confuse the application of problem solving with the
impact of EACH problem-solving technique.
• Ensure that learners are well conversant with the meaning of creative
thinking so that they can understand the advantages of creative thinking.
• Teachers are advised to first explain ways in which businesses can create
an environment that promotes creative thinking in the workplace before
teaching the advantage of creative thinking in the workplace.
• When teaching ways in which businesses should create an environment
that promotes creative thinking in the workplace. The focus should be on “
how” businesses should do this.
• NOTE: Problem solving can be regarded as a high impact content as it
consists of many sub-topics.
REQUIRED RESPONSES
1.1 The meaning of problem solving

• It is the process of analysing a situation to identify strategies√ that can be used to change the
situation. Problem solving requires creative thinking.√
• Problem solving is a mental process that involves problem finding, √ which is the ability to
identify the problem. √
• It also involves problem shaping, which is the ability to break-down the problem√ in such a way
that a clear solution can be found.√ Max (4)
57
1.2 Differences between problem solving and decision making
DECISION MAKING PROBLEM SOLVING
-It is often done by one person/a member of -Problems can be solved by a group/ team√ or an
senior management√ who makes it individual team member. √
authoritarian. √
-Various alternatives are considered √before -Alternative solutions are generated/ identified√ and
deciding on the best one. √ critically evaluated. √
-It is part of the problem-solving cycle√ as -Process of analysing a situation√ to identify strategies
decisions need to be taken in each step√. to bring about change. √
Max (8)
4 Either decision making or problem solving will be marked if the differences are not clear
1.3 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. √
• Formulate strategy√
• Implement strategy√
• Evaluate strategy√
NOTE: 1 Learners will only be marked the first FOUR (4) responses. (4x1) (4)
2 Steps may be in any order
1.4 Problem-solving techniques from given statements
1.4.1 Brainstorming√√
1.4.2 Force-field analysis√√
1.4.3 Nominal group technique√√ (6)
58
1.5 Application of the Force-field analysis
• Describe the current situation/problem√ and the desired situation.√
• List all driving/pros and restraining/cons forces√ that will support and resist change.√
• Allocate a score to each force√ using a numerical scale, where 1 is weak and 5 is strong. √
• Weigh up the positives and negatives√ then decide if the project is viable. √
NOTE: The focus should be on “how” businesses should apply Force-field analysis to solve
business problems. Max (8)
1.6. Problem solving techniques from the scenario
1.6.1 Problem solving techniques identified from the scenario
PROBLEM SOLVING TECHNIQUES MOTIVATIONS

Brainstorming√√ Employees were requested to suggest new ideas
in a large group without working individually√
Force-field analysis√√ The management of SF evaluated the advantages
and disadvantages of each idea. √
NOTE: 1 Learners will not be awarded marks for motivations if the problem-solving techniques
were incorrectly identified. Max (6)
1.6.2 Impact of brainstorming and force-field analysis
The impact of brainstorming

• People get ideas from others√ and build on them.√
• Stimulates creative thinking√ in the workplace.√
• Better solutions are developed√ through collective contributions.√
AND/OR
• Some team members may dominate√ discussion.√
• Discussion may result in conflict√ due to differences in opinion.√
• Fear of criticism may prevent full participation√ in brainstorming sessions.√
• It may lead to 'group think'/some individuals√ may not give their opinions.√
Max (6)
OR
59
Impact of the Force-Field Analysis
• Employees feel included√ and understood.√
• Employees develop and grow√ with the business.√
• Informed decisions can be made√ as forces for and against are critically
evaluated.√
AND /OR
• 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. √ Max (6)
1.7 Advantages of creative thing in the workplace

• Unique unconventional ideas/solutions√ are generated.√
• Complex business problems√ may be solved.√
• Improves motivation√ amongst staff members.√
• Management/employees may keep up with fast changing√ technology.√
• Managers/Employees have more confidence√ as they can live up to their full potential.√
Max (6)
1.8 Ways businesses can create an environment that promotes creative thinking in the workplace
• Encourage alternative ways of working/doing things. √√
• Encourage staff to come up with new ideas/opinions/solutions. √√
• Respond enthusiastically to all ideas and never let anyone feel less important. √√
• Place suggestion boxes around the workplace and keep communication channels open for
new ideas. √√ Max (4)
60
TOPIC: SOCIAL RESPONSIBILITY
Exam guidelines for social responsibility
• Define/Elaborate on the meaning of social responsibility.
• Explain the relationship/link between social responsibility and triple bottom line.
• Suggest ways in which a business project can contribute towards the community: charitable
contributions to NGOs involvement in community education and employment, employee volunteer
programmes.
• Identify/Name the following socio-economic issues from given scenarios/statements:
o HIV/Aids
o Unemployment
o Poverty
• Recommend/Suggest ways in which businesses can deal with the above-mentioned socio-economic
issues.
• Explain/Recommend/Suggest ways in which businesses can contribute time and effort in improving
the well-being of employees and communities.
QUESTIONS 1
1.1 Elaborate on the meaning of social responsibility (4)
1.2 Identify the triple bottom line components that were applied Imvula Limited in EACH statement
below.
1.2.1 Imvula Limited distributed food parcels to the local community
1.2.2 They produce eco-friendly products.
1.2.3 Some of their surplus income was used to build a community centre. (6)
1.3 Explain the relationship between social responsibility and the elements of triple bottom line
identified in QUESTION 1.2 (9)
61
GAMA EVENTS ( GE)
Gama Events is a popular business that caters for different social events. The management of GE
uses some of their profits to buy Antiretroviral treatment for their infected employees. They also
use offer entrepreneurial programmes for people who are not economically active in the
community.
1.4.1 Identify TWO socio-economic issues that are applicable to the scenario above. Motivate your
answer by quoting from the scenario. (6)
SOCIO-ECONOMIC ISSUES MOTIVATIONS
1.
2.
1.4.2 Recommend TWO other strategies that GE can use to deal with EACH socio-economic issue
identified in QUESTION 1.4.1 above. (8)
1.5 Read the scenario above and answer the questions that follow.
JUNE TRADERS (JT)
June Traders decided to invest their surplus profit in corporate social investments (CSI) projects.
They invested in communities by donating school uniforms. Sporting facilities were also provided
by JT to promote a healthy lifestyle.
1.5.1 Quote TWO ways in which JT contributed to the well-being of their communities. (2)
1.5.2 Explain other ways in which JT can contribute to the well-being of their communities. (6)
1.6 Suggest ways in which businesses can contribute time and effort in improving the well-being of
employees. (6)
62
Tips
• Learners should not confuse the meaning of social responsibility with the
meaning of CSR or CSI.
• Social responsibility focuses on a meaningful contribution to the
community while ensuring that business operations do not harm the
environment.
• Learners must be able to explain the relationship between social
responsibility and triple bottom line.
• They must also know the examples of each triple bottom line so that they
can identify these elements from given scenario.
• Ensure that learners know that businesses address socio-economic issues
through social responsibility programmes and initiatives.
• They must be advised to only focus on THREE socio-economic issues that
are stated in the exam guidelines.
• NOTE: Learners will not be asked to discuss the negative impact of socio-
economic issues as the focus is on how businesses should deal with each
issue that is stated in the 2020 exam guidelines.
• They should not only focus on providing strategies for HIV/AIDS only, but
also focus on the strategies for unemployment and poverty
• Strategies for dealing with unemployment and poverty are almost similar
and learners should take note of that.
• Learners must be encouraged to provide positive strategies to deal with
EACH socio-economic issue.
• They should not confuse the wellbeing of employees with communities
• The wellbeing of communities should not be confused with the examples
of CSI projects. Learners will not be awarded marks for committing this
error.
REQUIRED RESPONSES
1.1 The meaning of social responsibility
• It is an obligation to work towards improving the welfare√ of society. √
• An ethical view point that says every individual/organisation has an obligation to benefit√
society as a whole.√
• The responsibility of every citizen individual/organisation to contribute towards the well-
being of the community and the environment√ in which they live√.
• It is the duty of all businesses to maintain a balance between the economy√ and the
environment. √ Max (4)
1.2 Triple bottom line components from statements

1.2.1 People/ Social√√
1.2.2 Planet/ Environment√√
1.2.3 Profit/ Economic√√ (6)
63
1.3 The relationship between social responsibility and the elements of triple bottom line
Profit/Economic√√
• Triple Bottom line means that businesses should not only focus on profit/charge high prices, but
should also invest in CSI projects. √
• Businesses should not make a profit at the expense of its community. √
Sub max (3)
People/Social√√
• Business operations should not have a negative impact on/exploit people/
employees/customers/community. √
• Businesses should engage/invest in sustainable community programmes/ projects that will
benefit/uplift communities. √
Sub max (3)
Planet/Environment√√
• Businesses should not exhaust resources/harm the environment for production/profit
purposes.√
• They may support energy-efficient/eco-friendly products/production methods. √
Sub max (3)
Max (9)
1.4 Socio-economic issues from the scenario

SOCIO-ECONOMIC ISSUES MOTIVATIONS
HIV/AIDS√√ The management of GE uses some of their profits to buy

Antiretroviral treatment for their infected employees. √
Unemployment√√ They also use offer entrepreneurial programmes for people

who are not economically active in the community. √
NOTE: Learners will not be awarded marks for the motivations if the socio-economic issues were
incorrectly identified. Max (6)
1.4.2 Strategies to deal with EACH identified socio-economic issue
Strategies to deal with HIV/Aids

• Develop counselling programmes for infected/affected persons/employees. √√
• Conduct workshops on HIV/Aids programmes/campaigns. √√
• Encourage employees to join HIV/Aids support groups. √√
• Develop strategies to deal with stigma and discrimination. √√ Sub max (4)
64
Strategies to deal with unemployment
• Provide skills development programmes through learnerships. √√
• Offer bursaries to the community to improve the level of education. √√
• Create jobs for members of the community. √√
• Support existing small businesses to create more employment opportunities. √√
Sub max (4)
1.5 Wellbeing of communities
1.5.1 Ways in which JT contributed to the well-being of communities from scenario

• They invested in communities by donating school uniforms√
• Sporting facilities were also provided by JT to promote a healthy lifestyle. √
NOTE: Learners will not be awarded marks for responses that were not quoted from the scenario.
(2×1) (2)
1.5.2 Other ways in which JT contributed to the well-being of communities

• Ensure that the products they supply do not harm√ consumers/the environment. √
• Refrain from engaging in illegal/harmful practices√ such as employing children under the legal
age/selling illegal substances, etc. √
• Make ethically correct business decisions, √ e.g. not engage in unfair/misleading advertising,
etc√
• Donate money to a community project/run a project√ to uplift the community. √
Max (6)
1.6 Ways in which businesses can contribute time and effort in improving the well-being of
employees
• Provide recreational facilities for employees.√√
• Allow flexible working hours to enhance productivity.√√
• Provide transport for employees who work unusually long hours.√√
• Provide for employees' participation in decision making that affects them.√√
• Conduct team-building sessions to improve employees' morale.√√
• Offer annual medical assessments to workers.√√ Max (6)
65
TOPIC: CSR AND CSI
Exam guidelines for CSR & CSI
COOPERATE SOCIAL RESPONSIBILITY/CSR

• Define/Elaborate on the meaning of CSR
• Describe/Explain the purpose of CSR
• Identify/Name/Outline the components of CSR: environment, ethical corporate social
investment, health and safety.
• Identify CSR programmes from given scenarios/statements.
• Explain/Discuss/Evaluate/Analyse the impact
(positives/advantages and/or negatives
/disadvantages) of CSR on businesses and communities.
COOPERATE SOCIAL INVESTMENT/CSI

• Define/Elaborate on the meaning of CSI.
• Describe/Explain the purpose of CSI.
• Outline/Name CSI focus areas, e.g. community, rural development, employees, environment
• Explain/Distinguish/Differentiate between CSR and CSI.
• Explain/Discuss/ Evaluate/Analyse the impact (advantages/positives and/or
disadvantages/negatives of CSI on business and communities.
66
QUESTIONS 1
1.1 Define the meaning of the following concepts:
1.1.1 Corporate Social Responsibility/CSR. (4)
1.1.2 Corporate Social Investment/ CSI (4)
1.2 Name FIVE components of corporate social responsibility (CSR). (5)
TERRIKA CHICKEN FARM (TCF)
Terrika Chicken Farm specialises in breeding and selling chickens. Terrika offered a variety of
Corporate Social Investment/CSI projects in the community. He interviewed the community
members about the impact of his projects. Some mentioned that his projects have improved their
welfare and that they have acquired entrepreneurial skills. While others feel that Terrika does not
really care about their need as CSI projects are done to improve his business image. They also
mentioned that his CSI projects were not relevant to their needs.
1.3.1 Quote TWO advantages and disadvantages of CSI for the community from the scenario
above. (4)
Use the table below as a guide to answer QUESTION 1.3.1
Advantages of CSI for the community Disadvantages of CSI for the community
1.
2.
1.3.2 Discuss other impact of CSI on communities. (8)
1.4 Discuss the impact of corporate social investment (CSI) on TCF as a business. (6)
1.5 Distinguish between corporate social responsibility (CSR) and corporate social investment (CSI). (8)
67
Tips
• Learners must know that the concept” Corporate Social Responsibility “is
broader than the meaning of CSI.
• CSR involves various stakeholders while CSI only focuses on communities.
• Learners should not use the examples of CSI projects, CSR components or
CSI focus areas to explain the differences between CSR & CSI.
• The components of CSR should not be confused with CSI focus areas even
though some of these aspects are similar.
• Teachers must ensure that learners know the purpose of CSR and CSI so
that they are able to explain the differences between these concepts.
• NOTE: The impact of CSR/CSI on businesses and communities are the same
and can be used interchangeably.
REQUIRED RESPONSES
1.1 Definition of Corporate Social Responsibility/CSR and Corporate Social Investment/CSI
1.1.1 The meaning of Corporate Social Responsibility

• The way businesses manage their process to affect their stakeholders√ in a positive way. √
• A business voluntarily takes steps to improve the quality of life for employees√ and their
families and communities. √
• Corporate Social Responsibility is an obligation required by law√ and benefits both business
and society. √ Max (4)
1.1.2 The meaning of Corporate Social Investment

• It is when a business commits money, resources and time√ to a specific project that will
improve the lives of people. √
• The projects are not directly for purposes of increasing company profits. √
• It is the money that the business spends on the community√ to improve the standard of living
of the community. √
• These projects have a strong developmental approach√ and utilise company resources to
benefit and uplift communities√. Max (4)
68
1.2 Components of corporate social responsibility (CSR).
• Environment√
• Health and safety√
• Business ethics√
• Employment equity√
• Employees and customers√
• Community√
NOTE: Learners will only be marked the must first FIVE (5) only. (5×1) (5)
1.3 CSR &CSI

1.3.1 Impact of CSI for the community from the scenario
Advantages of CSI for the community Disadvantages of CSI for the community
Some mentioned that his projects have While others feel that Terrika does not really care
improved their welfare √ about their need as CSI projects are done to
improve his business image. √
They have acquired entrepreneurial skills√ They also mentioned that his CSI projects were
not relevant to their needs. √
NOTE: Learners will only be marked the first TWO on the advantages and the disadvantages of
CSI for the community. Max (4)
1.3.2 Other impact of CSI on communities
• Provision of bursaries encourages communities√ to improve their skills. √
• Better educational facilities√ are established in poor communities.√
• The provision of medical infrastructure√ improves the health of communities. √
• Training opportunities in the community√ increase the possibility of appointments of
members of the community. √
AND/OR
• Businesses are not always equipped√ to address social problems. √
• Communities tend to be dependent on CSR programmes√ and struggle to take their own
initiatives. √
• Businesses tend to focus on CSR programmes√ that does not directly benefit the
community.√
• The benefits of the programmes may not filter to the intended persons√ within the
community. √
Max (8)
69
1.4 Impact of corporate social investment (CSI) on TCF as a business
Advantages/Positives of CSR/CSI on businesses

• Promotes customer loyalty√ resulting in more sales.√
• CSI projects promote teamwork√ within businesses.√
• The business enjoys the goodwill/support√ of communities.√
• Gives businesses tax advantages√ such as tax reduction/rebates. √
AND/OR
• It is difficult to accurately measure the effectiveness√ of social investment. √
• Most managers are not trained/lack experience√ to handle social programmes. √
• Detailed reports must be drawn up√, which can be time consuming. √
• CSI activities distract business focus√ from its core business functions√.
Max (6)
1.5 Distinction between (CSR) and (CSI)
CORPORATE SOCIAL RESPONSIBILITY CORPORATE SOCIAL INVESTMENT
The intention is to change√ business Actively committing money and resources√

practices. √ to uplift the community. √
Focus is on increasing image√ and profits. √ Focus is on the upliftment of community√

without return on investment√
Often intended as a marketing√ initiative. √ Intended to benefit and uplift

communities√ through social
development. √

4 Either CSR or CSI will be marked if the differences are not clear
Max (8)
70
TOPIC: HUMAN RIGHTS, INCLUSIVITY AND ENVIRONMENTAL ISSUES
Exam guidelines for human rights, inclusivity, and environmental issues

HUMAN, ECONOMIC, SOCIAL AND CULTURAL RIGHTS
• Outline/Name the following human rights in the workplace:
o Privacy
o Dignity
o Equity
o Freedom of speech and expression
o Information
o Safety, security and protection of life
• Identify the above-mentioned human rights from given scenarios /statements.
• Recommend ways in which businesses could deal with the above-mentioned human rights in the
workplace.
• Outline/Mention the economic rights of employees in the workplace.
• Outline/Mention the social rights of employees in the workplace.
• Recommend ways in which businesses could promote social rights and cultural rights in the
workplace.
• Explain the implication of equality, respect and dignity on businesses.
DIVERSITY
• Define/Elaborate on the meaning of diversity in the workplace.
• Identify/Name the diversity issues from given scenarios/statements:
• Recommend/Suggest ways in which businesses could deal with the above-mentioned diversity issues
in the workplace.
• Discuss the benefits of diversity in the workplace.
ENVIRONMENTAL FACTORS
• Explain the responsibilities of employers in promoting human health and safety in the workplace.
• Outline/Explain/Discuss the roles of the health and safety representatives in protecting the
workplace environment, e.g. checking on the effectiveness of health and safety measures/identifying
potential dangers in the work environment/ investigating workers’ complaints, etc.
• Identify the roles of health and safety representatives from given scenarios.
• Explain the responsibilities of workers/employees in promoting human health and safety in the
workplace.
• Identify the responsibilities of employers and employees/workers in promoting human health and
safety in the workplace from given scenarios.
• Recommend/Suggest strategies businesses may use to protect the environment and human health.
• Assess a business venture on human rights, inclusivity, and environmental issues, using informal
surveys, interviews, etc.
71
QUESTIONS ON HUMAN RIGHTS, INCLUSIVITY AND ENVIRONMENTAL ISSUES
QUESTIONS 1
1.1 Name any FOUR human rights in the workplace. (4)
1.2 Identify the human right that is applicable to EACH statement below:
1.2.1 Employees are not forced to do embarrassing or degrading work.
1.2.2 Managers ensure that employees do not suffer because of discrimination.
1.2.3 Businesses allow open communication channels between management and employees.
1.2.4 Employees are provided with protective clothing.
1.2.5 Employees personal information is kept confidential. (8)
1.3 Outline any THREE economic rights of employees in the workplace. (6)
1.4 Advise businesses on how they could promote the cultural and social rights of employees in the
workplace. (12)
1.5 Explain the implications of equality, respect, and dignity for businesses. (6)
Tips
• Learners should take note that there are only six human rights that they
should know as per the 2020 examination guidelines page 33.
• Each human right should be written in full as learners may lose marks for
omitting some words, e.g. “freedom of speech” instead of “freedom of
speech and expression”.
• Human rights should not be confused with consumer rights as per the CPA
in legislation (Business Environments).
• Learners should be well conversant with ways in which businesses should
promote human rights in the workplace. The focus should be on how
employees should be respected in terms of human rights.
• The economic rights of employees should not be confused with the rights
of employees and employers in terms of the Labour Relations Act that is
covered in paper 1. Some of these rights are similar to economic rights.
• Leaners must not confuse the social rights of employees with social rights
in general. The examples of social rights of employees in the workplace
should be used to explain how businesses should promote these rights in
the workplace.
• Q1.5 requires learners to explain the “implications” what businesses
should do in order to promote equality, respect and dignity for businesses.
The facts for equality, respect and dignity should not be separated.
72
REQUIRED RESPONSES
1.1 Human rights in the workplace
• Privacy √
• Dignity √
• Equity√
• Freedom of speech and expression√
• Information√
• Safety, security and protection of life√
NOTE: Learners will only be marked the first FIVE (5) human rights. (5×1) (5)
1.2 Human rights identified from statements

1.2.1 Dignity√√
1.2.2 Equity√√
1.2.3 Freedom of speech and expression√√
1.2.4 Safety, security and protection of life√√
1.2.5 Privacy√√ (10)
1.3 Economic rights of employees in the workplace

• Free from forced labour√√
• Free to accept or choose work√√
• Join/Form trade unions√√
• Right to participate in a legal strike√√
• Equal pay for work of equal pay√√
• Reasonable limitation of working hours√√
• Safe and healthy working conditions√√
NOTE: Learners will only be marked the first THREE (3) economic rights (3x2) (6)
1.4 Ways in which businesses may promote cultural and social rights of employees in the workplace
1.4.1 Ways to promote cultural rights in the workplace
• Employees should be trained on cultural tolerance. √√
• Employ people from various cultural backgrounds. √√
• Encourage employees to participate in cultural activities. √√
• Provide the environment in which employees are free to use their own language when
interacting with others during their free time. √√ Sub max (6)
1.4.2 Ways in which businesses could promote social rights in the workplace
• Businesses should ensure that employees have access to clean water/social security. √√
• Provide health care services by establishing site clinics to give employees access to basic
medical examinations. √√
• Encourage employees/Provide opportunities for skills training/basic education. √√
• Register workers with UIF to provide adequate protection in the event of
unemployment/illness. √√ Sub max (6)
Max (12)
73
1.5 The implications of equality, respect and dignity for businesses
• Businesses should treat all their employees equally, √ regardless of their race/
colour/age/gender/disability, etc. √
• All workers should have access to equal√ opportunities/positions/ resources. √
• Mission statement should include values√ of equality/respect. √
• Treat workers with respect/dignity√ by recognising work well done/the value of human
capital. √
• Ensure that employees work in an environment that is conducive √to safety/ fairness/free
from embarrassment. √ Max (6)
QUESTIONS ON INCLUSIVITY
QUESTION 2
2.1 Read the following scenario and answer the questions that follow
ELSABE PRINTERS (EP)
Elsabe Printers employ more males than females. Their building does not have facilities for
people who use wheelchairs. English is the only medium of communication allowed in the
workplace, despite the fact that some employees do not understand or speak it.
2.1.1 Identify THREE diversity issues that are applicable in the scenario above. Motivate
your answer by quoting from the scenario above. (9)

DIVERSITY ISSUES MOTIVATIONS
1.
2.
3.
2.1.2 Recommend TWO ways in which EP should deal with EACH diversity issue identified in
QUESTION 2.1.1 (12)
2.3 Discuss the benefits of diversity in the workplace. (8)
74
Tips
• Learners must know the meaning of EACH diversity issue so that they can
identify these issues from given scenarios/statements.
• The focus should be on how businesses should deal with these diversity
issues in the workplace.
• The benefits of diversity in the workplace should not be confused with the
advantages of creative thinking in the workplace.
• Learners should be assisted in identifying simple key words that will be
used to formulate complete sentences on the benefits of diversity in the
workplace .
REQUIRED RESPONSES
2.1 Diversity issues
2.1.1 Diversity issues identified from the scenario
DIVERSITY ISSUES MOTIVATIONS
Gender√√ Elsabe Printers employ more males than females√
Disability√√ Their building does not have facilities for people who use
wheelchairs√
Language√√ English is the only medium of communication allowed in the

workplace, despite the fact that some employees do not
understand or speak it√
NOTE: Learners will not be awarded marks for motivations if the diversity issues were
incorrectly identified. Max (9)
2.1.2 Ways in which EP should deal diversity issue
Gender
• Males and females should be offered equal employment opportunities. √√
• Women should be employed to comply with EEA. √√
• Targets may be set for gender equity in the business. √√
• New appointments should be based on skills and ability. √√
Sub max (4)
75
Disability/Physically challenged/People living with disability
• Business should provide employment opportunities for people who are physically
challenged.√√
• Employees should be trained on how to deal with colleagues with disabilities.√√
• Business should be well informed on how to deal with disabled employees.√√
• Policies and programs should accommodate the needs of people with disabilities.√√
Sub max (4)
Language
• Provide training in the official language of the business.√√
• No worker should feel excluded in meetings conducted in one language only.√√
• Employ an interpreter so that everyone can fully understand what is being said in a
meeting.√√
• Focus on skills/work performance of the disabled worker, rather than his/her
disability/possible problems he/she may pose in future.√√
Sub max (4)
NOTE: Learners will be marked for the first TWO (2) diversity issues
Max (12)
2.3 Benefits of diversity in the workplace

• Diversity in the workforce improves√ morale/motivation. √
• Businesses with a diverse workforce are more likely to have a good public image√ and attract
more customers. √
• Diversified workforce can give businesses a competitive advantage, √ as they can render
better services. √
• Workforce diversity improves the ability of a business to solve problems√ innovate
/cultivate diverse markets√
• A diversified workforce stimulates debate on new/improved ways√ of getting things done.√
Max (8)
76
QUESTIONS ON ENVIRONMENTAL ISSUES
QUESTION 3
LIZEL CLOTHING MANUFACTURER (LCM)
The management of Lizel Clothing Manufacturer has appointed health and safety representatives.
They will be responsible for checking the effectiveness of LCM's health and safety measures. They
must also identify potential dangers in the workplace.
3.1.1 Quote TWO roles of the health and safety representatives from the scenario above. (2)
3.1.2 Describe other roles of health and safety representatives in the workplace. (4)
3.1.3 Explain the responsibilities of workers in promoting human health and safety in the
workplace. (6)
3.1.4 Recommend FOUR ways in which LCM can protect the environment and human health.
(8)
Tips
• Teachers are advised to follow the exam guidelines in the following order:
o Responsibility of the employer
o Roles of the health and safety representatives
o Responsibility of workers
o Ways businesses can protect the environment and human health
• The employer must first put safety systems in place and provide guidelines
on safety measures in the workplace.
• The health and safety representative are elected employees, they do not
provide protective clothing, but they ensure that the employer provides
their members protective clothing.
• Employees also have the responsibility to take care of their own safety in
the workplace.
• Remember that strategies on how to promote health safety in the
workplace are general and apply inside the business as well as outside the
business.
77
REQUIRED RESPONSES
3.1.1 Roles of health and safety representatives from the scenario

• They will be responsible for checking the effectiveness of LCM's health and safety measures√
• They must also identify potential dangers in the workplace. √
NOTE: Learners will be marked the first TWO responses. (2×1) (2)
3.1.2 Other roles of health and safety representatives in the workplace

• Investigating workers’ complaints√
• Ensure that employers comply√ with COIDA√
• Ensure that protective clothing is provided /available√ to all workers. √
• Promote safety training√ so that employees may avoid potential dangers/act pro-actively. √
• Ensure that all equipment that is necessary to perform work are provided /maintained√
regularly.√
• Ensure that dangerous equipment is used under the supervision√ of trained/qualified
workers.√ Max (4)
3.1.3 Responsibilities of workers in promoting human health and safety in the workplace.
• Use prescribed safety√ equipment √
• Report accidents to the employer√ by the end of the shift√
• Report unsafe/unhealthy working conditions√ to the relevant authorities/ management. √
• Inform the employer of any illness√ that may affect the ability to work. √
• Workers should take care of their own health√ and safety in the workplace. √
• Co-operate and comply with the rules and procedures,√ e.g. wear prescribed safety clothing.√
Max (6)
3.1.4 Ways in which LCM can protect the environment and human health
• Machines must be serviced/maintained regularly. √√
• Educate people about hygiene issues. √√
• Encourage employees to do regular health checks√√
• Become involved in environmental awareness programmes. √√
• Water for human consumption should be tested before it is used. √√
• Promote nature conservation by looking after natural resources. √√
NOTE: Learners will be marked for the first FOUR (4) responses only
Max (8)
78
TOPIC: TEAM PERFORMANCE AND CONFLICT MANAGEMENT
Exam guidelines on team performance and conflict management
TEAM PERFORMANCE ASSESSMENT

• Outline/Explain/Discuss the criteria for successful team performance: interpersonal attitudes and
behaviours, shared values, communication and collaboration.
• Identify the above-mentioned criteria from given scenarios/statements.
• Outline/Explain/Discuss the characteristics of successful team performance.
• Identify/Name the following stages of team development from given scenarios/statements:
o Forming
o Storming
o Norming
o Performing
o Adjourning/Mourning
• Explain/Describe/Discuss the above-mentioned stages of team development.
• Describe/Explain/Discuss/Elaborate on the importance of team dynamic theories in improving team
performance e.g. allocating tasks according to the roles of team members.
CONFLICT RESOLUTION
• Mention/Outline/Explain/Describe/Discuss causes of conflict in the workplace.
• Identify causes of conflict from given scenarios/statements
• Explain/Advise businesses on how they should handle conflict in the workplace (Conflict resolution
steps/techniques)
DEALING WITH GRIEVANCES AND DIFFICULT PEOPLE/PERSONALITIES

• Differentiate between grievance and conflict.
• Explain/Discuss the correct procedures to deal with grievances in the workplace.
• Identify/Name the following difficult people/ personalities from given scenarios/statements:
o Complainer
o Indecisive
o Over-agree
o Negativity
o Expert
o Quiet
• Suggest/Recommend ways in which businesses can deal with the above-mentioned difficult
people/personalities in the workplace.
• Explain/Suggest ways in which businesses can deal with difficult employees in the workplace.
79
QUESTIONS ON TEAM PERFORMANCE AND CONFLICT MANAGEMENT
QUESTION 1
1.1 Name the stages of team development. (5)
1.2 Identify the stages of team development applicable to Shiburi Construction team in EACH
statement below:
1.2.1 Team members confront each other's ideas and fight for a leadership position.
1.2.2 The team is aware of its aims and makes decisions without supervision.
1.2.3 Team members gather information about the task that must be performed.
(6)
1.3 Describe TWO other stages of team development. (6)
1.4 Discuss any THREE criteria for successful team performance. (9)
1.5 Explain the characteristics of successful teams in the workplace. (6)
Tips
• Learners should refrain from naming the stages of team development
using numbers such as stage 1, 2, 3 4 & 5.
• Teachers are advised to focus on the five stages of team development that
are stated in the 2020 exam guidelines.
• Ensure that learners have an in-depth knowledge of the meaning of each
stage of development so that they may be able to identify the stages from
scenarios and statements.
• It should be noted that this topic consists many marks especially if learners
are required to discuss/explain the stages of team development.
• Learners should not confuse the criteria for successful team with the
characteristics for successful teams.
• The criteria for successful teams must be written in full as learners will not
be awarded marks for writing incomplete concepts.
• Learners must know the meaning of each criteria as they may be required
to identify these criteria from given statements/scenarios.
• Teachers are advised to only focus on the four criteria for successful teams
as outlined in the 2020 examination guidelines.
• Learners should be advised to provide complete sentences when
explaining EACH stage of team development.
80
REQUIRED RESPONSES
1.1 Stages of team development

• Forming√
• Storming√
• Norming√
• Performing√
• Adjourning/Mourning√ Max (5)
1.2 Stages of team development identified from scenario

1.2.1 Storming√√
1.2.2 Performing√√
1.2.3 Forming√√ (6)
1.3 Other stages of team development identified from statement
1.3.1 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. √
• Leaders 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. √
Sub max (3)
1.3.2 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. √
Sub max (3)
Max (6)
1.4 Criteria for successful team performance
1.4.1 Interpersonal attitudes and behaviour√√

• Members have a positive attitude of support and motivation towards each other. √
• Good/Sound interpersonal relationships will ensure job satisfaction/increase productivity of
the team. √
• Members are committed/passionate towards achieving a common goal/ objectives. √
• Team leader acknowledges/gives credit to members for positive contributions. √
Sub max (3)
81
1.4.2 Shared values/ Mutual trust and support√√
• Shows loyalty/respect/trust towards team members despite differences. √
• Shows respect for the knowledge/skills of other members. √
• Perform team tasks with integrity/pursuing responsibility/meeting team deadlines with
necessary commitment to team goals. √
1.4.3 Communication√√
• A clear set of processes/procedures for team work ensures that every team member
understands his/her role. √
• Efficient/Good communication between team members may result in quick decisions. √
• Quality feedback improves the morale of the team.√
• Open/Honest discussions lead to effective solutions of problems. √
Sub max (3)
1.4.4 Co-operation/ Collaboration√√
• Clearly defined realistic goals are set, so that all members know exactly what is to be
accomplished.√
• All members take part in decision making√
• Willingness to co-operate as a unit to achieve team objectives.√
• Co-operate with management to achieve team/business objectives. √ Sub max (3)
NOTE: Only the first THREE (3) responses will be marked. Max (9)
1.5 Characteristics of successful teams in the workplace

• There is a climate of respect/trust√ and honesty√
• Share a set of team values√ and implement group decisions. √
• Successful teams have sound intra-team relations√
• Teams are accountable and members know the time frame√ for achieving their goals. √
• Teams pay attention to the needs√ of the individual team members. √ Max (6)
QUESTIONS ON CONFLICT MANAGEMENT
QUESTION 2
2.1 Identify the causes of conflict applicable to Siyaya INC in EACH statement below:
2.1.1 The Dream Team is not willing to work with the Khula Team who always receives
awards.
2.1.2 Employees do not complete their tasks effectively as clear instructions are not always
provided.
2.1.3 Employees always argue over the use of equipment to accomplish their tasks.
2.1.4 Some employees cannot cope with the large number of tasks given to them.
82
2.2 Name other FOUR causes of conflict in the workplace. (4)
2.3 Explain the FOUR causes of conflict in the workplace mentioned in QUESTION 2.2. (8)
2.4 Advise businesses on how they should handle conflict in the workplace. (6)
LELETHU SHUTTLE SERVICES (LSS)
Lelethu Shuttle Services provides transport services for tourists in Sharpeville. Albert, a well-
experienced employee in the transport industry, refuses to take instructions from
management. Njabulo, the supervisor at LSS, accepts every idea from top management.
2.5.1 Identify TWO types of difficult personalities displayed by Albert and Njabulo. Motivate
your answer by quoting from the scenario above. (6)

EMPLOYEES TYPES OF DIFFICULT MOTIVATIONS
PERSONALITY
Albert
Njabulo
2.5.2 Recommend TWO strategies that LSS can use to deal with EACH type of difficult
personality identified in QUESTION 2.5.1 (8)
2.6 Recommend TWO strategies that could be used when handling the following difficult
personalities:
2.6.1 Quiet (4)
2.6.2 Complainer (4)
2.7 Suggest ways in which businesses could deal with difficult people in the workplace. (8)
2.8 Advise businesses on the correct procedure to deal with grievances. (8)
83
Tips
• Learners must be able to name or identify the causes of conflict from given
• They must know the explanation of each cause of conflict as they usually
lose marks for vague and incomplete statements when this question is
asked in the NSC exam.
• Teachers must ensure that learners know the meaning of conflict so that
they can understand the steps in handling conflict/conflict resolution.
• The conflict resolution steps should not be confused with problem solving
steps or grievance procedure.
• Teachers are advised to only focus on the different types of personalities
that are stated in the exam guidelines. The focus should be only on the
positive strategies to deal with each personality type.
• The strategies for dealing with difficult personalities should be positive as
the main aim is to correct/modify the behaviour.
• Learners may be asked to identify difficult personalities from scenarios and
statements. They may lose marks on follow-on questions if they are not
able to identify these personalities.
• Teachers are advised to also teach learners ways in which businesses could
deal with difficult people in the workplace.
• NOTE learners may not be awarded marks for strategies ton deal with
difficult personalities instead of discussing dealing with difficult
employees.
• The grievance procedure should not be confused with the conflict
resolution steps.
• NOTE: Conflict involves two or more people and grievance applies to one
person who lodges a complaint to his/her employer.
REQUIRED RESPONSES
2.1 Causes of conflict identified from given statements
2.1.1 High/Intense competition/Competitiveness√√
2.1.2 Confusion about scheduling/deadlines√√
2.1.3 Limited business resources√√
2.1.4 Unfair workload√√ (8)
84
2.2 Other FOUR causes of conflict in the workplace
• Poor communication√
• Differences in backgrounds/cultures/values/beliefs/language
• Leadership styles used Ill managed stress√
• Different values/levels of knowledge/skills/experience Unclear responsibilities√
NOTE: Learners will be marked the first FOUR (4) responses. (4×1) (4)
2.3 Causes of conflict in the workplace mentioned in QUESTION 2.2

• Lack of proper communication√ between management and workers. √
• Management and/or workers may have different√ personalities/ backgrounds. √
• Different values/levels of knowledge/skills/experience√ of managers/workers. √
• Leadership styles used, √ e.g. autocratic managers may not consider worker inputs. √
NOTE: Learners will not be awarded marks for other causes of conflict that are not linked to
question 2.2. Max (8)
2.4 Ways in which businesses on how they should handle conflict in the workplace
• Acknowledge that there is conflict in the workplace. √√
• Identify the cause of the conflict. √√
• Arrange time and place for negotiations where all employees involved are present. √√
• Arrange a meeting between conflicting employers/employees. √√
• Each party has the opportunity to express his/her own opinions/feelings√√
• Analyse/Evaluate the cause (s) of conflict by breaking it down into different parts. √√
• Direct conflicting parties towards finding/focusing on solutions. √√
• Select and implement the best solution. √√ Max (6)
2.5 Types of difficult personalities

2.5.1 Types of difficult personalities identified from scenario
EMPLOYEES TYPES OF DIFFICULT MOTIVATIONS
PERSONALITY
Albert Expert√√ Albert, a well-experienced employee in

the transport industry, refuses to take
instructions from management. √
Njabulo Over-agree√√ Njabulo, the supervisor at LSS, accepts

every idea from top management. √
NOTE: Learners will not be awarded marks for the motivations if the types of personalities
were incorrectly identified. Max (6)
85
2.5.2 Strategies that LSS can use to deal with EACH type of difficult personality identified in
QUESTION 2.5.1.
Strategies to deal with an expert personality

• Be firm and assertive. √√
• Do not accuse them of being incorrect/Do not get caught in their game. √√
• Know your facts. √√ Sub max (4)
Strategies to deal with an over-agreeing personality

• Be firm and do not let them make promises that they cannot keep. √√
• Follow up on their actions√√ Sub max (4)
NOTE: Learners will be marked the first TWO (2) types of difficult personalities only
Max (8)
2.6 Strategies that can be used to deal with a complainer and a quiet personality
2.6.1 Complainer
• Listen to the complaints but do not acknowledge them√√
• Interrupt the situation and move to the problem-solving process√√
NOTE: Learners will be marked the first TWO (2) responses only. Max (4)
2.6.2 Quiet
• Do not fill their silence with words√√
• Wait for their response√√
• Prompt them through the process so that they can give input√√
• Restrict the time of the discussion√√
NOTE: Learners will be marked the first TWO (2) responses only. Max (4)
2.7 Ways in which businesses could deal with difficult people in the workplace
• Act pro-actively if possible, as a staff/personnel problem is part of a manager's
responsibilities. √√
• Ask someone in authority for their input into the situation. √√
• Identify the type of personality which is creating the problem. √√
• A deadline should be set for improving bad/difficult behaviour. √√
• Guidelines for improvement should be given. √√
• Help difficult employees to be realistic about the task at hand. √√
Max (8)
86
2.8 Correct procedure to deal with grievances 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.√√
NOTE: Steps may be in any order. Max (8
87

2020 Business Studies Business Studies Grade 12 Paper 2 Exam Kit.

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

2020 Business Studies Business Studies Grade 12 Paper 2 Exam Kit.

Uploaded by

Copyright:

Available Formats

2020

LEARNER EXAM- KIT

TOTAL MARKS: 150

SECTION PAPER 1 MARKS TIME PER PAPER

A MPULSORY SHORT QUESTIONS 30 MARKS 30 20 MINUTES

Miscellaneous: (Total of 40 marks) consisting

Business Roles (20 marks)

C SECTION C: ESSAY TYPE QUESTIONS Choose 40 30MINUTES

CLASSIFICATION OF SUBTOPICS ACCORDING TO PAPER 2 MAIN TOPICS

BUSINESS VENTURES BUSINESS ROLES

Management and leadership Ethics and professionalism

Investment: Securities Creative thinking and Problem-solving

Investment: Insurance Social Responsibility, CSR & CSI

Forms of ownership Human rights, inclusivity, and environmental

Presentation and data Response Team performance & conflict

TABLE OF CONTENTS FOR BUSINESS VENTURES & BUSINESS ROLES

BUSINESS VENTURES PAGE BUSINESS ROLES PAGE

Multiple choice questions 4-7 Multiple choice questions 47-55

Management and leadership 8-18 Ethics and professionalism 55-60

Investment: Securities 18-28 Creative thinking and Problem- 61-65

Investment: Insurance 29-35 Social Responsibility, CSR & CSI 66-70

Forms of ownership 36-40 Human rights, inclusivity, and 71-78

BUSINESS VENTURES AND BUSINESS ROLES

TYPICAL EXAM QUESTIONS

Multiple choice questions

1.1.3 An example of a non-verbal presentation is information in the form of a/an …

1.1.5 Team dynamic theories help businesses to …

A allocate tasks to team members with similar personalities.

B allocate tasks according to the role of each team member.

C establish good relationships with teams.

D promote individual satisfaction. (5 x 2) (10)

simple interest; problem-solving; health and safety representative; language; decision

1.3.2 Interactive whiteboards B useful in brainstorming sessions as suggestions are

1.3.3 Inclusivity C enables consumers to make loans at financial

1.3.5 Economic right

F enables businesses to make loans from investors

G useful to capture feedback and new ideas

H people from different backgrounds are employed

I uses non-routine methods to solve problems

J allows employees to be paid equally for work of equal

1.1.5 B√√ (5×2) (10)

1.2 Complete statements

1.2.1 Compound interest√√

1.3 Match columns

1.3.5 J√√ (5×2) (10)

TOPIC: MANAGEMENT AND LEADERSHIP

Learners must be able to:

MANAGEMENT AND LEADERSHIP

• Define/Elaborate on the meaning of leadership and management

TOPIC: MANAGEMENT AND LEADERSHIP

2.1 Elaborate on the meaning of management. (4)

2.2 Outline the differences between leadership and management. (8)

Communicates by means of Communicates through management functions,

Influences human behaviour.√√ Guides human behaviour..√√

Innovates/Encourages new ideas to increase Administers plans/programs/tasks to reach

Motivational/Inspirational in their Instructional in their approach.√√

QUESTIONS ON LEADERSHIP STYLES

INDIRECT QUESTIONS ON LEADERSHIP STYLES

QUESTIONS ON THE ROLE OF PERSONAL ATTITUDE IN SUCCESSFUL LEADERSHIP

MOUNTAIN HOTEL (MH)

2.5.2 Discuss other roles of personal attitude in successful leadership. (6)

QUESTIONS ON LEADERSHIP THEORIES

2.6 Tammy allocates tasks to employees according to their level of maturity.

2.6.1 Name the leadership theory that Tammy is applying. (2)