Adele

Adele

RELIGION STUDIES
GRADE 12
PAPER 1 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

MEMORANDUM 

SECTION A (COMPULSORY) 
QUESTION 1 
1.1
1.1.1 Ideology refers to a substitute for the term religion. It is a system  of beliefs supporting a social or political system and secular  system or that which is not an authority. (2) 
1.1.2 Teaching means to give information or to impart the knowledge in  order to enforce belief. It also means to give systematic  information about a subject. (2) 
1.1.3 Parable refers to a story that is told to illustrate a religious  principle or answer a religious question. It is usually very short  and contains a definite moral. (2) 
1.1.4 Myth means fable. It also means reference to religious stories in  which deep truths about life are revealed. (2) 
1.1.5 Belief means a firm opinion. It also means faith or religion. (2) 
NOTE: Each fact carries 2 marks. Any correct fact/points  must be credited. 

1.2
1.2.1 Halaal (2)
1.2.2 Calabash (2)
1.2.3 Torah (2)
1.2.4 Karma (2)
1.2.5 Hebrew (2) 

1.3
1.3.1 Dictionary (2)
1.3.2 Pretoria (2)
1.3.3 Nelson Mandela (2)
1.3.4 Rome (2)
1.3.5 Moses (2)

1.4
1.4.1 FALSE (2)
1.4.2 FALSE (2)
1.4.3 FALSE (2)
1.4.4 FALSE (2)
1.4.5 TRUE (2) 

1.5
1.5.1 D / Kitab-iAqdas (2)
1.5.2 E / China (2)
1.5.3 B / Divine law of Islam (2)
1.5.4 A / Constitution (2)
1.5.5 C / African Traditional Religion (2)

TOTAL SECTION A: 50

SECTION B 
QUESTION 2 
2.1
2.1.1 Identity 

  • Identity means individuality.
  • It means the religion has a certain individuality or a certain 
  • ersonality that distinguishes it from other religion. 
  •  It means the affirmation of the dignity and value of a religion. 
  • It means an exclusive religious identity in which one identifies  strongly with the beliefs and doctrines of the religion and sees these  as defining one’s life. (4) 

2.1.2 Unity 

  • Unity refers to those factors that lead to the sharing of a common  identity.
  • It refers to harmony and concord that exist between religions.
  • It may also refer to the acknowledgement of common ground  among different faith groups. (4)

2.1.3 Uniqueness 

  • It is those features that make the religion different from other  religions. 
  • It is those features that make it identifiable as a different religion. 
  • There is uniqueness in beliefs, practices and normative texts. (4)

2.1.4 Comparability 

  • This means that two or more things are able to be compared.
  • This does not mean that they are similar. 
  • Things can be compared and it is found that they are different. 
  • The other meaning may be that things can be compared because  they are fit to be compared. (4) 

2.1.5 Similarity 

  • It refers to “being alike”. 
  • It is important to specify similarities.
    (Any correct points carries 2 marks (2 x 2 = 4)) (4)

2.2 Role of ancestors in African Traditional Religion. 

  • They are the messengers of the Creator.
  • They are seen by followers as the supervisors of the physical world.
  • They look after the welfare of the living. 
  • They reveal themselves through dreams and sometimes through visions  to communicate with the living. 
  • To communicate with God, the living uses the ancestors – they are their intermediaries. (5 x 2) (10) 

2.3 Internal differences that exist within one religion (Islam as an example) 
2.3.1 Religious teachings 
Shi'a 

  • They believe that the caliphate (successor) should be from the  descendants of the Prophet Muhammad.
  • They claim that these caliphs are divinely-appointed imams with  supernatural knowledge and authority who must lead the faithful. 
  • They follow some Hadith (e.g. recordings of Ali and Fatima) of  Prophet Muhammad and reject others.
  • They commemorate the death of Hussain, whom they believe  was martyred at Karbala. 
  • They share a collective guilt for not coming to his aid when he  was killed. 
  • The Shi'a have two schools of law. 
  • The Shi’a follow the teachings of a modern day imam. 

Sunni 

  • Sunni's believe that the faithful, rather than the descendants,  should elect their leaders, (e.g. Abu Bakr).
  • Sunni refers to 'following' the Sunnah (example) of the Prophet  Muhammad. 
  • All the companions of the Prophet are given equal respect in  Islamic jurisprudence. (Islamic law)
  • The Sunni have four schools of law.
  • The Sunni follow the teachings of the 7th and 8th century  scholars. (10)

2.3.2 Religious practices in Islam 
Sunni  

  • Religious practices are strictly in accordance with the Sunnah  of the Prophet, as laid down in the Hadith. 
  • An 'imam' is simply the leader of the congregational prayer. 
  • 'Imam' does not denote formal training in Sunni Islam. 
  • There are four recognised scholars with regard to legal matters  in Islam. 
  •  They pray five times daily.
  • The concept of Muttah (temporary marriage) is not recognised,  as they contend it was discontinued by the Prophet. 
  • In the event of a dispute, the issue is decided by means of a  consensus.  

Shi'a  

  • Those Hadith from Ali and Fatima, daughter of prophet, are  given more prominence. 
  • The shrine of Hussain in Karbala is an important pilgrimage for  Shi'as.
  • Muttah is allowed. 
  • Shi’a Muslims are allowed to combine some of their five daily  prayers into three.
  • They can pray three times a day.
  • They practise self-mutilation (striking themselves).
  • There are two advisory schools of law, Akbari and Usuli.
  • In the event of a dispute, the issue is decided upon by a central  authority (ayatollah). (10)

[50]

QUESTION 3 
3.1 Features that are fulfilled by the uniqueness of a religion. 

  • It strengthens the believer’s faith.
  • It identifies the religion from amongst other religions. 
  • It guides the believer’s way of life.
  • It helps the believer to unite in the spiritual life as a communion with  other believers. 
  • It assist believers to explain why they chose a particular religion.
  • It helps members to identify who belongs to the faith and who does  not. (10) 

3.2 Uniqueness of any ONE religion. 
African Traditional Religion as an example. 

  • They believe in the existence of a Supreme Being.
  • They communicate with their God through the ancestors.
  • Their communication with the ancestors is through the ritual of animal  sacrifice.
  • Harmony between the living and the ancestors is of great importance.
  • Ancestors can bring illness, misfortune, and also blessings.
  • During the ritual of sacrifice the living call the ancestors to be present.
  • Community solidarity is a pronounced feature in ATR. 
  • The community orientation of African society is clearly reflected in its  rituals.
  • Rituals are rich in symbols, e.g. the goat-hide bracelet (Isipandla)
  • They do not have a special day of worship.
  • There is no founder.
  • There is no written text.
  • There are no sacred buildings, but there are sacred places.
  • There is a great variance of belief among African Traditional  Religions.
    (Any relevant response will be credited.) (10)

3.3 Five beliefs shared by Abrahamic religions 

  • Believe in one God.
  • Believe in the existence and the role of the Devil or Satan.
  • Believe in the existence and the role of angels. 
  • Believe in life after death.
  • Believe in the authority of the sacred texts as the Word of God.
  • They believe in Judgement Day. (10)

3.4 The Role of parables in religious teachings 

  • They provide us with a rich source of religious teaching (wisdom). 
  • They contain religious beliefs, ideas, morals, and warnings.
  • They speak about God, the world, human relationships and the nature  of things. 
  • It conveys moral or philosophical truths.
  • It is a simple story that conveys a deep, spiritual truth. (10)
    NOTE: Other relevant points must be credited. 

3.5 Concept of doctrine 

  • Doctrine is a belief held by a religious group. 
  • It is a synonym for teaching. 
  • It is sometimes used to refer to the entire set of beliefs in a religion.
  • Doctrine is a statement of essential beliefs. 
  • It functions to safeguard what is essential to the religion.
  • They are the essential pillars of the religion.
  • Teaching and doctrine are closely connected to the notion of religious teachings.
    (Any relevant response will be credited.) (10)

[50]

QUESTION 4 
4.1 Yes/No. 
NOTE: This is an open-ended question, and credit must be given to  relevant examples given by learners. (2) 
4.2 YES. 

  • In South Africa, (or other countries) there is equal coverage given to  each religion e.g. TV programme, “Issues of faith”.
  • If religious coverage is not fair, complaints can be made to the  BCCSA or the Human Rights Commission. 
    These are made by individuals or religious bodies such as the  Jewish Board of Deputies, Hindu Maha Sabha, etc. 
  • Representatives of various faiths are interviewed.
  • This allows for different viewpoints to be represented.  

NO. 

  • Research shows this is not the case, as in the extract above.
  • The Catholic Church gets mainly negative coverage regarding  alleged child abuse by its priests. 
  • The media never engages in the promotion of religion or general  religious issues. 
  • Only sensationalist reporting is done.
  • In world media, religion is often depicted as being the cause of wars,  suffering and abuse (e.g. abuse of women). (10) 

4.3

  • The wars in Iraq and Afghanistan have thrust Islam into the limelight.
  • In the West little was/is known about it in the past,
  • There is increased competition among media houses.
  • Wars and conflict often divide people along religious lines. 
  • The coverage is only on issues that sell newspapers, such as  scandals, conflict with secular law, etc. 
  • Religion is seen as big business, in many cases.
  • Examples of this are the Hajj, the ZCC Easter gathering, etc.
    (Any relevant responses must be credited.) (10)

4.4

  • The civil conflict in Nigeria is often shown as conflict between the  Muslim North and Christian South. 
  • There is an effort by Muslims to enforce Shariah law, even on non Muslims. 
  • Muslims fear that they will be ruled by a Christian government.
  • Christians fear that Nigeria would become an Islamic state.
  • There is concern as to who will exert political control over the oil  resources.
  • The oil interests also encourage foreign powers to take sides in the  conflict. 
  • Some Muslim sects have lost faith in the government and have  taken the law into their own hands, e.g. Boko Haram.
  • Boko Haram provides basic services to its supporters, in the  absence of government services. [Mail and Guardian, 2 April 2012,  p.24) (10) 

4.5 E.g. Homosexuality and the Catholic church 

  • The Catholic Church is strongly against homosexuality. 
  • The Catholic Church refers to the Biblical story of Sodom and  Gomorra. 
  • Numerous protests condemning the church's stand get a lot of media coverage. 
  • The church’s view do not get the same coverage in the media as anti-religious sentiments.
  • They ignore the unconditional love of God.
    (Any relevant fact will be credited.) (10)

4.6 E.g. Polygamy in ATR or Islam  

  • Women in polygamous marriages are shown as being abused by  their husbands 
  • Women involved in extra-marital relationships are presented as  more acceptable. 
  • This is evident in the many extra-marital relationships shown on TV.
  • Religious texts are often misquoted by the media to justify the ill treatment of women.
    (Any relevant response will be credited.) (8)

[50]

QUESTION 5 
5.1
5.1.1 Conflict in Darfur 

  • The Darfur conflict in Southern Sudan started more than 100  years ago. 
  • The main divisions were ethnic/tribal and cultural. 
  •  Religion is not a radical source of division. 
  • Most people of Darfur are Sunni Muslims, as is the  government of Khartoum. 
  • There are some Christians and ATR adherents in the south. 
  • Drought has increased competition for limited resources and  brought nomads and farmers into conflict. 
  • In 1983 there was a civil war when the Muslim government  tried to impose Islamic law in the South. 
    (Credit any relevant example.) (10)

5.1.2 Current situation of the conflict in Darfur 

  • In 2005 South Africa brokered a peace deal between the North  and the South.
  • However, conflict continued.
  • In 2006, the President resisted United Nations involvement to  resolve the dispute. 
  • A UN backed referendum in 2011 decided on partition of the  South.
  • The situation is accepted and it is peaceful and calm.
    (Any relevant response will be credited.) (10) 

5.1.3 Role of religion in the conflict 

  • Religion is not a radical source of division.
  • Most people on both sides of the conflict are Sunni Muslim.
  • Religion played an indirect role in the 1983 civil war.
  • Religion have played a major role in trying to help.
  • Two religious organisations involved were the Catholic 
    Agency for Oversees Development and Islamic Relief  Agency.
  • This help include building of clinics and schools and repairing  infrastructure. (10)

5.1.4 Relationship between religious tolerance and religious  freedom 

  • The two terms are closely related.
  • Religious freedom is determined by the government of the  day.
  • Religious tolerance is mainly depended on attitudes of  religious groups or individuals with a given community.
  • It is the acceptance and respect of the religious beliefs and  practices of other people without any preconditions.
  • Religious freedom prepares a good ground for religious  tolerance. 
    NOTE: other relevant points must be credited. (4) 

5.2 5.2.1 For each of the following religions, briefly discuss the  teachings that promote human rights. 
Buddhism 

  • They promote shared humanness. 
  • There is a shared aspiration of gaining happiness and  avoiding suffering. (4)

5.2.2 Christianity 

  • ʽLove thy neighbour as you love yourself’: This teaching  encourage treating everyone equally.
  • Thou shall not kill’: This refers to the sanctity of human life. (4)

5.2.3 Islam 

  • There is no compulsion to convert to Islam − that is,  proclaiming one’s faith should be voluntary and sincere. This  allows for freedom of religion.
  • The institution of zakaat (charity) ensures that basic needs of  food, shelter and clothing are satisfied. (4)

5.2.4 African Traditional Religion  

  • The principle of ubuntu encourages helping one’s community. 
  • The practice of Ilima is one in which the community provides  help to those of its members who are indigent.
    (Any other relevant fact must be credited. Teachings may be  expressed in the learner's own words.) (4) 

TOTAL MARKS SECTION B: 100 
GRAND TOTAL: 150

CONSUMER STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

INSTRUCTIONS AND INFORMATION 

  1. This question paper consists of SIX questions. 

    SECTION 

    MARKS 

    TIME (MINS)

    QUESTION 1: Short questions – (All topics) 

    40 

    20

    QUESTION 2: The consumer 

    20 

    20

    QUESTION 3: Food and Nutrition 

    40 

    40

    QUESTION 4: Clothing 

    20 

    20

    QUESTION 5: Housing 

    40 

    40

    QUESTION 6: Entrepreneurship 

    40 

    40

    TOTAL 

    200 

    180

  2. ALL the questions are compulsory and must be answered in the ANSWER  BOOK. 
  3. Number the answers correctly according to the numbering system used in  this question paper. 
  4. Start each question on a NEW page.
  5. You may use a calculator.
  6. Write in black or blue ink only. 
  7. Pay attention to spelling and sentence construction.
  8. Write neatly and legibly.

QUESTIONS

QUESTION 1 SHORT QUESTIONS 
1.1 Various options are provided as possible answers to the following questions.  Choose the answer and write the letter (A–D) next to the question number  (1.1.1–1.1.20) in the ANSWER BOOK. 
1.1.1 The measure used to determine the increase in price as well as to  calculate the inflation rate: 

  1. Inflation rate
  2. Interest rate 
  3. Consumer Price Index
  4. Repo rate (1)

1.1.2 A false and fraudulent business practice is called: 

  1. Stokvel
  2. Scam 
  3. Pyramid scheme
  4. Grey goods (1)

1.1.3 Tax paid from selling a house is known as … 

  1. estate tax.
  2. capital gains tax.
  3. property tax.
  4. property evaluation tax. (1)

1.1.4 The condition in which the blood glucose level drops abnormally low: 

  1. Hypertension
  2. Hypoglycaemia 
  3. Diabetes
  4. Hyperglycaemia (1) 

1.1.5 Lactose intolerance develops when the body cannot digest the … in  the milk. 

  1. calcium
  2. fat 
  3. carbohydrates 
  4. protein (1) 

1.1.6 … would be the best boost for the immune system for a person who  is HIV positive. 

  1. Guava juice
  2. Tea
  3. Coffee 
  4. Water (1)

1.1.7 The combination of food that will contribute to high cholesterol levels: 

  1. Butter and lamb chops
  2. Low fat milk and ‘lite’ margarine 
  3. Skimmed milk and low fat yoghurt
  4. Sunflower oil and soya beans (1)

1.1.8 The food borne disease that affects the liver: 

  1. Dysentery
  2. E-coli
  3. Gastroenteritis 
  4. Hepatitis A (1)

1.1.9 Brand piracy is … 

  1. unauthorised use of protected trade names.
  2. use of poor quality products that are not sustainable.
  3. copying of counterfeit trade names.
  4. importing goods into a country. (1)

1.1.10 ‘Sportswear has become street wear’. This statement refers to a … 

  1. decline in fashion.
  2. fashion trend.
  3. fashion cycle.
  4. classic fashion. (1)

1.1.11 A signed sales agreement is a contract between a … 

  1. buyer and home owner.
  2. buyer and an estate agent.
  3. home owner and an attorney.
  4. home owner and a tenant. (1)

1.1.12 The money you borrow from a bank to buy a home is … 

  1. loan.
  2. collateral security.
  3. bond registration. 
  4. mortgage bond. (1) 

1.1.13 The monthly bond repayment should be between ... of the  homeowner’s monthly income. 

  1. 20% - 30%
  2. 25% - 30% 
  3. 25% - 35%
  4. 20% - 25% (1)

1.1.14 Mr Hermanus was in an accident and is now permanently wheel chaired bound. The following insurance will cover his home loan  outstanding balance: 

  1. Bond insurance
  2. Long-term insurance
  3. Household insurance
  4. Homeowner’s insurance (1)

1.1.15 The … is the document that proves legal ownership of a property. 

  1. Title Deed 
  2. Deed of Sale
  3. Full title property
  4. Sectional Title (1) 

1.1.16 The following endorsement shows that a household appliance meets  specific criteria: 

  1.  SANF
  2. SABC
  3. SABS 
  4. SANCU (1) 

1.1.17 The amount added to the cost price to cover all expenses and still  make a profit is called the … 

  1. selling price.
  2. start-up.
  3. production cost.
  4. operational cost. (1)

1.1.18 Identify the business that has the most sustainable profitability. 

  1. Suzanne does not always have enough money to buy raw  materials.
  2. Ringani sells more products each month and she opened  another branch.
  3. Thandi had to dismiss two employees as she no longer had  work for them.
  4. Dorothy spends too much of her business income on clothes. (1)

1.1.19 Quality control is … 

  1. the demand for a specialised service.
  2. the process of inspecting products.
  3. the evaluation of the proposed project.
  4. a method used to price products. (1)

1.1.20 The selling price for 5 products is R750.00 and the production cost is  R530,00. Indicate how much profit is made per product. 

  1. R44,00
  2. R56,00
  3. R163,00
  4. R220,00 (1) (20 × 1) (20) 

1.2 Choose the description from COLUMN B that matches a term in COLUMN A.  Write the letter (A–I) next to the question number (1.2.1–1.2.5) in the  ANSWER BOOK.  

COLUMN A 
Term

COLUMN B 
Description

1.2.1 

1.2.2 

1.2.3 

1.2.4 

1.2.5 

Contract 

Cooling-off period 

Exemption  clauses 

Stokvel 

Insurance  contract

A one-sided business practice 

Forms the automatic renewal of contracts 

Goods sold by a business without the  authorisation of the manufacturer 

Liability for personal injuries is excluded 

Allows a direct marketing contract to be  cancelled within five working days 

An agreement with legal implications  between two people 

Saving club where people pledge regular  contributions 

A party is cleared from its liabilities if  he/she fails to deliver goods honoured by  agreement 

The agreement between the party and the  insurance

(5 × 1) (5)
1.3 Choose the term in COLUMN B that matches the description in COLUMN A.  Write the letter (A–H) next to the question number (1.3.1–1.3.5) in the  ANSWER BOOK. 

COLUMN A 
Description

COLUMN B 
Term

1.3.1 

1.3.2 

1.3.3 

1.3.4 

1.3.5 

A new fashion worn by fashion leaders

An illegal copy of a product 

The direction in which the fashion moves 

The specific characteristics that make one  product or item different from another 

Fashion that is always considered tasteful 

Fads 

Trade mark 

Style 

Classic fashion 

Trend 

Brand piracy 

Counterfeit 

High fashion

(5 × 1) (5) 
1.4 Give the correct word/term for each of the description. Write only the  words/terms next to the question number (1.4.1–1.4.5) in your ANSWER  BOOK. 

1.4.1 When all people have access at all times to sufficient safe and  nutritious food 
1.4.2 Natural or chemical substances added to food during processing to  perform a specific function 
1.4.3 Food grown without artificial fertilisers, growth regulators or  pesticides 
1.4.4 Food technology that reduces or eliminates micro-organisms to  improve the shelf life of food 
1.4.5 Food which a gene of another food is implanted to introduce  characteristics of the other food (5 × 1) (5) 

1.5 From the list below, identify FIVE examples of the application of universal  design in household appliances. Write only the letter (A–I) next to the question  number (1.5) in the ANSWER BOOK. 

  1. A child safety lock is attached 
  2. Dialogue display is easy to read with large text
  3. Twin-tubs can take two loads at the same time 
  4. Some washing machines use less water 
  5. The door can open with an 180o angle 
  6. The racks are adjustable and can be removed 
  7. An alarm indicates the end of the programme 
  8. Front loaders need attention during the washing process 
  9. The HEPA filters are hypoallergenic (5 × 1) (5)

[40]

QUESTION 2 THE CONSUMER 
2.1 Define the following terms: 

2.1.1 Guarantee (2)
2.1.2 Inflation (2)

2.2

2.2.1 Explain the meaning of phishing. (2)
2.2.2 Give THREE ways to protect yourself against phishing. (3) 

2.3 Read the following scenario and answer the questions that follow: 

Shaun buys imported cigarettes from a foreigner’s shop. The cigarettes are  very cheap compared to other well-known cigarette brands.  

2.3.1 Describe the type of goods referred to in the scenario. (3)
2.3.2 Identify the type of tax Shaun pays when he purchases cigarettes. (1) 
2.3.3 Explain the reasons why this type of tax is paid by consumers such  as Shaun. (2) 

2.4 Read the scenario below and answer the questions that follow: 

  1. South Africa was hit with severe drought at the end of 2015, beginning 2016. 
  2. Economist warned consumers of possible food shortage, especially maize  meal, maize rice and samp.
  3. The value of the rand also plunged.  

2.4.1 Name TWO items from the scenario that is exempted from value  added tax (VAT). (2) 
2.4.2 Discuss how the information in the scenario will affect consumers’  household budget. (3)

[20]

QUESTION 3 FOOD AND NUTRITION 
3.1 Name TWO foods that cause allergies. (2) 
3.2 State THREE benefits that organically grown food may have for the natural  environment. (3) 
3.3 “Food irradiation is a technology used to improve the safety of food products  such as herbs”. Discuss FOUR reasons why this statement is true. (4) 
3.4 Compare milk allergy with lactose intolerance. Tabulate your answer as  follows: 

Milk allergy   Lactose intolerance  
 (2)  (2)

(4) 
3.5 Explain why coronary heart disease is referred to as lifestyle disease. (3)
3.6 Answer the following questions on cholesterol. 

3.6.1 Describe high cholesterol. (3) 
3.6.2 Describe how regular checking of blood cholesterol levels can benefit  a person suffering from high cholesterol. (3) 
3.6.3 State FOUR dietary guidelines to manage high cholesterol. (4) 

3.7 Differentiate between Type 1 and Type 2 diabetes. Tabulate your answer as  follows: 

Type 1   Type 2 
 (2)  (2)

(4) 
3.8 Read the scenario below and answer the questions that follow: 

Tammy is living with her grandparents in a one-bedroom house. The  grandparents receive a small pension that is too little to provide them with daily  balanced meals. 
They keep a small garden, where they grow spinach, onions, tomatoes, carrots  and cabbage for household use. They also have an orange tree in the yard that  yields oranges during the winter season. 
Two months ago, Tammy’s uncle visited them for two weeks. The uncle is not  well, he coughs a lot, is very thin and permanently tired. Tammy recently started  feeling sick. She developed a severe cough, so much so that she noticed blood  droplets in her sputum. She furthermore, developed chest pains and lost a lot  of weight.  

3.8.1 Explain how the disease could have been transmitted. (2) 
3.8.2 Analyse the impact of the vegetable and fruit on Tammy’s health. (8)

[40]

QUESTION 4 CLOTHING 
4.1 Define the following terms: 

4.1.1 Retrospective fashion (2)
4.1.2 Organic textiles (2)

4.2 Explain how fashion is influenced by technological developments. (3)
4.3 Describe what a basic working wardrobe is. (2)
4.4 Discuss why fashion cycles overlap. (3) 
4.5 Explain why it is important to buy quality clothes when you choose clothes for  work. (2) 
4.6 Read the following information and give your opinion that the role  appearances play in the world of work. 

Corporate clothing should be simple, but classic. Dressing in a corporate  uniform ensures a basic standard of appearance. In this way, clients will listen  to what you have to say. 

 (6)

[20]

QUESTION 5 HOUSING 
5.1 Explain the following terms: 

5.1.1 Transfer duty (2)
5.1.2 Transfer fees (2) 

5.2 Name THREE cost items that must be included in a mortgage bond  repayment. (3) 
5.3 Give the information that must appear on a contract for a builder and owner to  sign. (4) 
5.4 Read the scenario below and answer the questions that follow: 

The Buys family has a son age eight and a daughter fifteen. They bought a flat  in a secured complex. They often used the swimming pool. They spent a lot of  their money on transport to work and school. Mr Buys was transferred to  another town and the family decided to relocate.  
They rented a small apartment for a few months until they found a three  bedroom house that has an alarm and safety doors. The house is near a  school, library and shopping centre. The family decided to buy the property. 

Identify and explain the type of ownership of the Buys family:  

5.4.1 When they bought the house in the new town (3)
5.4.2 When they bought the flat (3)

5.5 Discuss FOUR advantages of renting the apartment. (4)
5.6 Name FOUR advantages of owning a flat in a secured complex. (4)
5.7 Explain why this house is ideal for this family. (3)
5.8 The Buys family intend buying a vacuum cleaner. 

  • Dust retention – 1,5 litres dust capacity
  • Use less energy 
  • Washable filter 
  • Antibacterial protection
  • Extends to reach into awkward corners
  • Smooth running wheels are designed to  prevent damaging of delicate surfaces  

5.8.1 Explain why this vacuum cleaner is considered to be environmentally  friendly. (4) 
5.8.2 Evaluate the suitability of this vacuum cleaner to clean a three  bedroom house with tile floors as well as carpeted floors. (8)

[40]

QUESTION 6 ENTREPRENEURSHIP 
6.1 Name FOUR reasons for packaging products. (4)
6.2 Explain mark-up with regard to small business practices. (2)
6.3 State THREE benefits of training unskilled workers. (3)
6.4 Read the case study below and answer the questions that follow: 

Wendy Smith who has a passion for baking, began a small business from  home. She decided on making healthy breakfast biscuits. She adapted her  aunt’s choc-chip biscuit recipe using raisins instead chocolate and instead of  butter use margarine. She started with basic equipment and an electric  beater. Soon with many orders the business outgrew her home and she had to  move to bigger premises. Today she supplies many shops and her business is  advertised on a commerce website.  

“I am passionate about the design for each biscuit, the way we packed our  product and the way our production process is executed. My number one  priority with leading team’s vision is listening and carrying out ideas and  suggestions from our customers. They have shaped the growth of the  company.” 

Her business in figures: 

  • Start-up costs: R3 000,00
  • Selling price of one biscuit: R23,80 

6.4.1 Wendy came up with an idea and recognised the need for a product  in a given target market. Describe the target market that her product  would appeal to. (2) 
6.4.2 What is the importance of keeping to the product specification? (2) 
6.4.3 Wendy drew up a business plan before launching her business.  People is one of the 5P’s to be combined for successful marketing.  Name the other 4P’s of a marketing plan and explain how Wendy  fulfilled each of these. (8) 
6.4.4 “They have shaped the growth of the company”. Elaborate on the  importance of good customer relations. (3) 
6.4.5 Name the information that should be on the label of the breakfast  biscuits. (4)

6.5 Use the following information with regard to calculating costs in order to  answer the question that follow: 

Jamé’s Florists 

Cost per bouquet

  • Raw materials R120,00
  • Operating Costs R80,00
  • Profit mark-up 75% 

6.5.1 Calculate the selling price of a bouquet. Show ALL calculations. (3) 
6.5.2 Calculate the profit on this specific product for this month if she sold  40 bouquets during this period. (2) 
6.5.3 Analyse how a financial feasibility study will assist Jamé to determine  the sustainable profitability of her business. (7)

[40] 
TOTAL: 200

0CONSUMER STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

MEMORANDUM

QUESTION 1 SHORT QUESTIONS 
1.1 MULTIPLE CHOICE QUESTIONS 

1.1.1 C ✔ (1) Remembering Easy 
1.1.2 B ✔(1) Remembering Easy 
1.1.3 B ✔(1) Remembering Easy 
1.1.4 B ✔ (1) Remembering Moderate 
1.1.5 D ✔ (1) Remembering Easy 
1.1.6 A ✔ (1) Remembering Easy 
1.1.7 A ✔ (1) Remembering Easy 
1.1.8 D ✔ (1) Remembering Easy 
1.1.9 A ✔ (1) Remembering Moderate 
1.1.10 B ✔ (1) Remembering Easy 
1.1.11 A ✔ (1) Remembering Easy 
1.1.12 A ✔ (1) Remembering Easy 
1.1.13 B ✔ (1) Remembering Easy 
1.1.14 C ✔ (1) Remembering Easy 
1.1.15 A ✔ (1) Remembering Easy 
1.1.16 C ✔ (1) Remembering Easy 
1.1.17 C ✔ (1) Remembering Easy 
1.1.18 B ✔ (1) Remembering Easy 
1.1.19 B ✔ (1) Remembering Easy 
1.1.20 A ✔ (1) Applying Moderate (20 × 1) (20) 

1.2

1.2.1 F ✔ (1) 
1.2.2 E ✔ (1) 
1.2.3 H ✔ (1) 
1.2.4 G ✔ (1) 
1.2.5 I ✔ (1) 
Remembering, Easy (5 × 1) (5) 

1.3

1.3.1 B ✔ (1) 
1.3.2 G ✔ (1) 
1.3.3 H ✔ (1) 
1.3.4 C ✔ (1) 
1.3.5 D ✔ (1) 
Remembering, Moderate (5 × 1) (5) 

1.4

1.4.1 Food security ✔(1) 
1.4.2 Food additives ✔(1) 
1.4.3 Organic foods ✔ (1) 
1.4.4 Radiation ✔ (1) 
1.4.5 Genetic modified foods ✔(1) 
Remembering, Moderate (5 × 1) (5) 

1.5

A ✔ (1) 
B ✔ (1) 
E ✔ (1) 
F ✔ (1) 
G ✔ (1) 
(In any sequence) Understanding, Moderate (5 × 1) (5)

[40]

QUESTION 2 THE CONSUMER 
2.1 2.1.1 Guarantee 

  • A guarantee is a promise in writing that the quality and durability of a  product or service will meet certain standards and that if the product  or service does not satisfy the terms of the guarantee, you will be  refunded. 
    OR
  • A guarantee is an assurance that a product will remain in working order  for a particular length of time. A guarantee is a promise from the  manufacturer that they will sort out any problems with a product or  service within a specific fixed period of time.
    Remembering, Easy (2) 

2.1.2 Inflation 

  • Is the rise in prices of goods and services, measured over a specific  period, and subsequently a drop in purchasing power of money.
    OR
  • It is the average increase in prices of goods and services in a year.
    Remembering, Easy (2) 

2.2 2.2.1 Explain the meaning of phishing 

  • Any fake e-mails/websites, phone calls pretending to be the bank or  a financial institution. Designed to steal your money by getting your  personal information or sending a link to retrieve personal  information. 
    Remembering, Easy (2) 

2.2.2 Give THREE ways to protect yourself against phishing. 

  • If you suspect an e-mail is fake or spam, delete it without opening it.
  • Keep anti-spam and antivirus software up to date on your  computer.
  • Never give your personal details by e-mail.
  • Never open attachments on e-mails that claim to come from your  bank – they could contain spay word that could track your  keystrokes and gather your personal information.
  • Check your bank and credit card account statements regularly.
  • If you think that you may have provided financial information such  as credit card number to a phisher, contact your financial  institution or credit card company immediately. 
  • Make sure that you use legitimate websites/e-mails/phone calls.
  • Antivirus programmes secure insecure  websites/spam/codes/pin/passwords used.
    Remembering, Easy (Any 3) (3)

2.3 2.3.1 Describe the type of goods referred to in the scenario.

  • Grey good/parallel goods ✔ are goods that have been imported ✔ into the country through unofficial or unauthorised ✔ distribution  channels. These goods are not illegal goods ✔
    Application, Moderate (3) 

2.3.2 Identify the type of tax Shaun pays when he purchases  cigarettes. 

  • Excise tax/Sin tax ✔
    Remembering, Easy (1) 

2.3.3 Explain the reasons why this type of tax is paid by consumers  such as Shaun. 

  • To decrease  the amount of people that smoke because it is a  health risk ✔
    Remembering, Moderate (2) 

2.4 2.4.1 Name TWO items from the scenario that is exempted from value  added tax (VAT). 

  • Maize meal
  • Maize rice 
  • Samp
    Remembering, Easy (Any 2) (2) 

2.4.2 Discuss how the information in the scenario will affect  consumers’ household budget. 

  • Drought may lead to the maize meal, maize rice and samp  (grains) shortages which will lead to increased prices✔
  • Manufacturing factories may close down due to shortage of grains  to process✔which will lead to job losses
  • This can result in consumers having less disposable income to  purchase grains/other items/luxuries 
  • The weak rand may also result in increased imported grain prices  that will put further strain on household budgets
    Analysing, Difficult (Any 3) (3)

[20]

QUESTION 3 FOOD AND NUTRITION 
3.1 Name TWO foods that cause allergies. 

  • Peanuts, milk, eggs, shellfish, soya beans, wheat
    Remembering, Easy (Any 2) (2) 

3.2 State THREE benefits that organically grown food may have for the  natural environment. 
Organic farmers use natural pesticides to protect the environment. 

  • They concentrate on the sustainable use of resources.
  • It improves the soil quality/prevents soil pollution.
  • It reduces air pollution as very little or no fuel is used to manufacture  organic fertilisers.
  • Protects the water supply. Water remains cleaner because there are no  run-off poisonous chemicals into the water.
    Understanding, Easy (Any 3) (3) 

3.3 “Food irradiation is a technology used to improve the safety of food  products such as herbs”. Discuss FOUR reasons why this statement is  true.  

  • Food is treated with short light or radio waves to improve the safety,  acceptability and shelf life.
  • The rays penetrate deep into the  food/killing/eliminating/reducing/destroying unwanted bacteria/harmful  organisms/insects in food therefore reduced food spoilage.
  • The waves pasteurised and lengthen/extend the shelf life of food.  Unwanted bacteria/organisms are destroyed.
  • It protects people from food-borne diseases.
  • Herbs are safe to use. Herbs can have a high level of bacteria/insect  contamination during production, but after irradiation they are safe to use.
    Applying, Difficult (Any 4) (4) 

3.4 Compare milk allergy with lactose intolerance. 

Milk allergy   Lactose intolerance  
 
  • Involves the immune system ∙ Milk protein is seen as harmful
  • React against/build antibodies  against protein (Any 2)
 
  • Involves the small intestine
  • Intestine secretes too little or no  lactase (enzyme)
  • Does not change lactose into  glucose (Any 2) (4) 

Deduct one mark if not answered in table format.
Understanding, moderate
3.5 Explain why coronary heart disease is referred to as lifestyle disease.

  • It is a disease related to a high intake of saturated fats, especially trans fat  in junk foods.
  • People consume food that contains many hidden fats, that they do not  realise they are eating.
  • There are many lifestyle factors that contribute to the disease such as poor  diet that leads to obesity/overweight, lack of physical activity, excessive  alcohol intake, smoking, stress. 
    Understanding, moderate (Any 3) (3)

3.6 Answer the following questions on cholesterol. 
3.6.1 Describe high cholesterol. 

  • High cholesterol develops when excessive amounts of cholesterol ✔ high density lipoproteins are deposited in the arteries. ✔ This will  narrow/block the arteries increasing the risk of cardiovascular  disease. ✔
    Remembering, Easy (3) 

3.6.2 Describe how regular checking of blood cholesterol levels can  benefit a person suffering from high cholesterol. 

  • Cholesterol accumulates slowly/largely unnoticed/no symptoms,  therefore regular checks are necessary to create awareness, and  only then the condition can be managed. ✔
  • High cholesterol may be genetic/hereditary and regular check-ups  may reveal the condition. ✔
    Understanding, moderate (Any 3) (3) 

3.6.3 State FOUR dietary guidelines to manage high cholesterol.

  • Control the amount of fat/saturated fat/egg yolks/organ  meats/some seafood consumed on daily basis. ✔
  • Eat lots of fibre/soluble fibre/oat bran/legumes.✔
  • Eat lots of fruit and vegetables as they contain very little fat, but a  great deal of vitamins, mineral, fibre, anti-oxidants.
  • Reduce high-fat dairy products/use low-fat dairy products.✔
  • Avoid hidden fat in your diet, e.g. processed foods containing  fat. ✔
    Understanding, moderate (Any 4) (4)

3.7 Differentiate between Type 1 and Type 2 diabetes. 

Type 1   Type 2  
 The pancreas is unable to produce  insulin, ✔ and has to be replaced with  an insulin injection. ✔  (2) The pancreas✔ produces insulin, but  it is not enough/does not work  effectively. ✔ (2)

 Understanding, Easy  (4) 
3.8 Scenario 
3.8.1 Explain how the disease could have been transmitted. 

  • The bacteria are spread through the air, when an infected person  coughs, sneezes, speaks or sings. People breathing the same air for  prolonged periods. (2)
    Applying, Difficult 

3.8.2 Analyse the impact of the vegetable and fruit on Tammy’s  health. 

  • Tammy should consume five to six portions of fruit and  vegetables daily. ✔
  • The vegetables from their garden will help Tammy in her recovery  period. ✔
  • Spinach/oranges/carrots/cabbage provides vitamin A and is an  anti-oxidant which keep Tammy’s lining of her lungs and intestine  intact. ✔ This makes it difficult for the germs to enter the body ✔ and causes infection.
  • Oranges/tomatoes/carrots provide vitamin C which helps Tammy  to recover from infections.
  • Cabbage provide zinc ✔ which protects the immune system ✔ and iron is important as it helps with the formation of red blood  cells ✔ and prevent anaemia/keep the blood healthy ✔ and plays  a role in a healthy immune system. ✔ (Any 7)
    Conclusion: The vegetables and fruit will be beneficial/impact  positively on Tammy’s health ✔ (1) (8)
    Analyse, Difficult 

[40]

QUESTION 4 CLOTHING 
4.1 Define the following terms: 
4.1.1 Retrospective fashion 

  • Retrospective fashion refers to clothes that imitate the style of a  previous era. ✔✔
    Remembering, Easy (2) 

4.1.2 Organic textiles 

  • It is natural fibres that have been grown without any pesticides and  toxic materials, preserving the health of humans and the  environment. ✔✔
    Remembering, Easy (2) 

4.2 Explain how fashion is influenced by technological developments.

  • Technological developments in the textile industry accelerate fashion  change, e.g. improved elasticity or minimal care requirements. ✔
  • Developments in the manufacturing industry, e.g. improved knitting and  sewing machines have speeded up the manufacturing process, saving time  and money. ✔
  • Easier communication allows latest fashion trends to be viewed all over the  world. ✔
  • Improved distribution methods bring new fashion garments to stores within  days. ✔
    Understanding, moderate (Any 3) (3) 

4.3 Describe what a basic working wardrobe is. 

  • A basic working wardrobe is the outfits/garments you wear to work that is  suitable for the work environment. ✔
  • All the clothing items ✔ you choose to wear to work ✔ specific clothes  suited for the daily tasks/work.
    Remembering, Easy (2) 

4.4 Discuss why fashion cycles overlap. 

  • Fashion cycles overlap because consumers are bored with the old trend. ✔
  • Fewer consumers wear the old trend as the interest is decreasing.✔
  • A new trend is introduced/begins/launched/celebrities are photographed  wear the trend. ✔
  • Fewer consumers wear the old trend, until no one wears it any more. ✔
  • While the old trend declines, interest in the new trend increases. ✔
  • By the time a new fashion trend has established itself and is well on its way  to its peak. ✔
    Understanding, Easy (Any 3) (3)

4.5 Explain why it is important to buy quality clothes when you choose  clothes for work. 

  • If you buy quality items from the start, they will last longer. ✔
  • It is a much better investment plan than buying cheap clothes. ✔
    Remembering, Moderate (2) 

4.6 Read the following information and give your opinion that the role  appearances play in the world of work. 

Corporate clothing should be simple, but classic. Dressing in a corporate  uniform ensures a basic standard of appearance. In this way, clients will listen  to what you have to say.   
  • Clothes will send a message to customers about the type of work and the  company one work for. The corporate dress code will also include personal  hygiene and posture to give a better impression when working with  customers. ✔
  • If one wears appropriate clothes the employer and customers will have  confidence in one and ones work because one shows that one is  professional at work. ✔
  • If one dress according to the corporate rules it will show the employer that  one is serious about and respects ones work. ✔
  • Less is more – simple, but classy thus more clothes are not always better  than less classy clothes. ✔
  • A sophisticated corporate look commands respect. ✔
  • One is judged on physical appearance – a corporate uniform ensures a  standardised company image. ✔
    Analysing, moderate (6)

[20]

QUESTION 5 HOUSING 
5.1 Explain the following terms: 
5.1.1 Transfer duty 

  • It is a government tax on the property to transfer it into your name  and is based on the amount to the Receiver of Revenue. ✔ It is  based on the value of the property. ✔
    Remembering, Easy (2) 

5.1.2 Transfer fees 

  • It is paid to the attorney who oversees the transfer process of the  property. ✔✔
    Remembering, Easy (2) 

5.2 Name THREE cost items that must be included in a mortgage bond  repayment. 

  • Payment of capital (amount borrowed) ✔
  • Interest ✔
  • Homeowner’s comprehensive insurance/monthly instalments ✔
  • Homeowner’s premium ✔
  • Administration cost ✔
    Remembering, Easy (Any 3) (3) 

5.3 Give the information that must appear on a contract for a builder and  owner to sign. 

  • A detailed breakdown of all costs, including building and legal cost. ✔
  • The exact dimensions or size of the house, according to house plan. ✔
  • The date by which the building should be completed. ✔
  • The statement of the guarantees provided to ensure that any structural  defects, roof leaks will be fixed. ✔
  • The dates and way in which payments are to be made. ✔
  • A cancellation clause laying down the conditions under which the contract  can be cancelled or suspended. ✔
  • The consequences if either the builder or owner does not fulfil their part of  the agreement. ✔
  • The specification list attached to the plan, which describes all the materials,  finishes and fittings to be used in the construction of the house. ✔ (Any 4) (4)

5.4 Scenario 
Identify and explain the type of ownership of the Buys family:  
5.4.1 When they bought the house in a new town 

  • Full-title ownership ✔
    Remembering, Easy 
  •  The Buys family – the legal owner ✔ of the entire property – the  land and all the structures on it ✔
    Application, Easy (3) 

5.4.2 When they bought the flat 

  • Sectional title ownership ✔
    Remembering, Easy
  • Section title – lawful ✔ owner of a unit or section of a building.
    The sectional title holder also owns a share of all common  properties, including lifts, passages, stairways, garden areas and  pool. ✔
    Application, Easy (3) 

5.5 Discuss FOUR advantages of renting the apartment. 

  • A tenant pays a fixed amount over a specific period. ✔
  • A tenant does not pay land and property tax. ✔
  • A tenant is not responsible for the maintenance of the property
  • A tenant can run a business from the unit if he or she obtains permission  from the property owner and the municipality. ✔
  • From the start, both parties know exactly what is expected it is the  conditions of the lease agreement. ✔
  • It is easy to move after giving due notice. ✔
  • A tenant can have fewer monthly expenses than a house owner, for  example, tenants do not have to pay homeowners insurance. ✔
  • Renting is more affordable for people who cannot afford to buy a home. ✔
    Remembering, Easy (Any 4) (4) 

5.6 Name FOUR advantages of owning a flat in a secured complex.

  • They are the legal owners of the property – can leave in the will for their  children. ✔
  • The owner has a sense of security and independence. ✔
  • Living in a complex could be safer. ✔
  • They can use all common areas in the complex. ✔
  • The owner has less administration to do. ✔ 
  • They can sell the flat at a profit to buy another house.✔
  • The homeowners association administers the property of the sectional tile  block, which means less responsibility for the family. ✔
  • They can make changes to the property. ✔
    Applying, Easy (Any 4) (4)

5.7 Explain why this house is ideal for this family. 

  • The house has three bedrooms/big enough/suitable for the family’s  needs/privacy for the members. ✔
  • It is safe – alarm and safety gates. ✔
  • It is close to the school – save on transport cost; it is also convenient if the  children participates on extramural activities. ✔
  • The shopping centre is nearby, it is convenient for shopping and they will  also save on transport cost. ✔
  • The shopping centres also has entertainment for the family. ✔
    Application, Moderate (Any 3) (3)

5.8 The Buys family intend buying a vacuum cleaner. 

  • Dust retention – 1,5 litres dust capacity
  • Use less energy 
  • Washable filter 
  • Antibacterial protection 
  • Extends to reach into awkward corners 
  • Smooth running wheels are designed to  prevent damaging of delicate surfaces 
 
 

5.8.1 Explain why this vacuum cleaner is considered to be  environmentally friendly. 

  • The dust retention prevent the dust in the air ✔ therefore reduces  air pollution.
  • It uses less energy, therefore has a low impact on the carbon  footprint. ✔
  • Due to the low energy usage it reduces the need for fossil fuels to  burn ✔ in order to create electricity. 
  • Anti-bacterial protection prevent release of dust mites into the air ✔ leaving the air cleaner, makes it a healthier option.
    Applying, Moderate (Any 4) (4) 

5.8.2 Evaluate the suitability of this vacuum cleaner to clean a three  bedroom house with tile floors as well as carpeted floors. 

  • The 1,5 litre dust capacity makes it large enough✔
  • It can extend to reach awkward corners✔ therefore the need to  move furniture around is reduced ✔ this reduced the human  energy consumption. ✔
  • The smooth running wheels make it possible to move it around  with the least amount of resistance ✔ and it causes the least  amount of damage to surfaces✔
  • Suitable to clean carpets and tiles, it is not necessary to have two  different machines. ✔
  • The washable filters reduces the need to replace the filter  therefore saving money in the long-term.✔
  • Use less electricity and results in reduced electricity bill ✔ (Any 7)

Conclusion:

  • The vacuum cleaner is suitable for a three-bed  roomed house  (1) (8)
    Evaluate, Difficult

[40]

QUESTION 6 ENTREPRENEURSHIP 
6.1 Name FOUR reasons for packaging products. 

  • To protect the product ✔
  • Keep the product safe and hygienic ✔
  • It could act as a silent/attract the attention of the consumers ✔
  • Well-designed packaging can reflect well on a business image ✔
    Remembering, Easy (4) 

6.2 Explain mark-up with regard to small business practices. 

  • The amount/percentage added to the cost price✔ of goods to cover overhead  expenses✔/still leave money for profit. (2) 

6.3 State THREE benefits of training unskilled workers. 

  • Better quality work is delivered ✔
  • Increased motivation ✔
  • Increased work satisfaction ✔
  • Ability to work independently ✔
  • Increased productivity ✔
  • Reduction of waste ✔
  • Acquisition of new skills/knowledge ✔
    Remembering, Easy (Any 3) (3) 

6.4 6.4.1 Target market 

  • People who need a quick breakfast ✔
  • People who skipped breakfast ✔
  • Those who want a low kilojoule option ✔
    Application, Moderate (Any 2) (2) 

6.4.2 What is the importance of keeping to the product specification?

  • Ensures that the customer will always get a good quality  product ✔
  • Ensures standardisation/a certain standard is  maintained/product ✔
  • Will always have the same appearance taste ✔
    Remember, Easy (Any 2) (2) 

6.4.3 Marketing Plan 

  • Promotion ✔ – Website ✔
  • Price ✔ – R23,80 per unit ✔
  • Product ✔ – Breakfast biscuit (mini breakfast biscuit) ✔
  • Place ✔ – from home ✔ (not rental premises)
    Applying, Moderate (8) 

6.4.4 Customer relations 

  • Wendy has valued the input from her clients ✔
  • She will be able to maintain a quality product ✔
  • By listening to their needs and responding to their needs she has  ensured loyal customers to her brand ✔
  • Word of mouth ✔
    Applying, Easy (Any 3) (3)

6.4.5 Information on label 

  • Brand name ✔
  • Trade name ✔
  • Ingredient list ✔
  • Contact details ✔
  • Portion size ✔
  • Allergens ✔
  • Serving suggestion ✔
  • Storage instruction ✔
  • Price of the product ✔
  • Net quality of contents ✔
  • Date stamp
    Applying, Easy (Any 4) (4) 

6.5 Calculation 
6.5.1 Calculate the selling price of a bouquet. Show ALL calculations.

  • Selling price = production cost + mark-up
    = (R120,00 + R80,00) ✔ + 75% of R200
    = R200,00 + R150,00 ✔
    = R350,00
    Applying, Moderate (3) 

6.5.2 Calculate the profit on this specific product for this month if she  sold 40 bouquets during this period. 

  • R150,00 × 40 ✔ = R600,00 ✔
    Applying, Moderate (2) 

6.5.3 Analyse how a financial feasibility study will assist Jamé to  determine the sustainable profitability of her business. 

  • Main purpose of a feasibility study is to discover the strengths and  weakness of an existing or new business. Janey’s strength is that  she took over an existing business or new business ✔  She has a  passion✔ for flower arrangements and good human skills. ✔ She  has a vision for the shop. ✔
  • Know all the cost ✔ involved, because she is a financial manager  and realise all the expenditure
  • Estimate potential sales, she looked at opening another section ✔ and supplying undertakers with bouquets. 
  • She will know how much profit they will make every month. ✔
  • She will not need any start-up capital as she took over an existing  business. ✔
  • She will know the type of return on investment (profit) can be  expected. ✔ (Any 6) 

Conclusion:

  • A financial feasibility study will help her to determine  the cost and the selling price of a product  accurately. ✔ (1)
    Evaluating, moderate (7) 

[40] 
TOTAL: 200

ACCOUNTING
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

INSTRUCTIONS AND INFORMATION 
Read the following instructions carefully and follow them precisely.

  1. Answer ALL the questions. 
  2. A special ANSWER BOOK is provided in which to answer ALL the questions.
  3. Show ALL workings to earn part-marks. 
  4. You may use a non-programmable calculator.
  5. You may use a dark pencil or black/blue ink to answer the questions.
  6. Where applicable, show all calculations to ONE decimal place.
  7. A breakdown of the questions is provided. You must attempt to comply with  the suggested time allocation for each question.

QUESTION 1: 40 marks; 25 minutes

Main topic: 

This question integrates:

Reconciliations

Financial Accounting

  • Concepts, Debtors and Creditors Reconciliation Managing resources
  • Internal controls and ethics
QUESTION 2: 40 marks; 25 minutes 

Main topic: 

This question integrates:

Inventory valuation

Managing Resources 

  • Concepts, calculating and interpreting stock information.
  • Internal controls 
QUESTION 3: 50 marks; 30 minutes 

Main topic: 

This question integrates:

Company Financial Statements

Financial Accounting 

  • Concepts, Balance Sheet and notes. 

Managing Resources 

  • Financial reporting and ethics
QUESTION 4: 70 marks; 45 minutes 

Main topic: 

This question integrates:

Financial Statements, Cash flow  and Interpretation

Managerial Accounting 

  • Concepts, Cash Flow Statement calculations, ratio analysis  and interpretation of financial information.
QUESTION 5: 60 marks; 30 minutes 

Main topic: 

This question integrates:

Cost Accounting and Fixed  Assets

Managerial Accounting 

  •  Calculations for the Production Cost Statement ∙ Unit costs concepts; break-even analysis 

Managing resources 

  • Fixed Assets management.
QUESTION 6: 40 marks; 25 minutes

Main topic: 

This question integrates:

Budgeting

Managerial accounting 

  • Completing a Cash Budget; interpreting budget information Managing resources
  • Internal control processes.

QUESTIONS

QUESTION 1: RECONCILIATIONS (40 marks; 25 minutes) 
1.1 Choose the correct answer from the words provided within brackets. Write only  the answer, next to each number (1.1.1–1.1.4) in the ANSWER BOOK. 

1.1.1 A stale cheque, one that is more than 6 months old, must be cancelled  in the (Cash Receipts Journal/Cash Payments Journal). 
1.1.2 A (debit/credit) balance on the bank statement indicates an overdraft.  
1.1.3 A (debit note/credit note) is the source document for goods returned  by a debtor. 
1.1.4 A (cash discount/trade discount) is offered when accounts are settled  within a certain time. (4) 

1.2 DEBTORS RECONCILIATION AND AGE ANALYSIS 
The information below, relates to JT Traders for June 2017. 
REQUIRED: 

1.2.1 Calculate the correct Debtors Control balance on 30 June 2017. (4) 
1.2.2 Calculate the correct balances for the debtors listed in the ANSWER  BOOK. (12) 
1.2.3 Refer to the Age Analysis (Information C): 

    • Calculate the percentage of debtors that are not complying with the  30 days credit terms. (3)
    • Explain TWO internal control measures that JT Traders can use to  ensure that only reliable clients are granted credit. (4) 

INFORMATION: 
A. Balances on 30 June 2017 (before errors and omissions): 

Debtors Control balance 

R74 600

Debtors list 

70 000

N. Pillai  21 600 
Y. Bosman 12 400
C. Tele 24 900
A. Botha 

B. Errors and omissions discovered: 

  1. The Debtors Journal was overcast by R3 500. 
  2.  An allowance of R800 granted to Pillai for damaged goods  dispatched was entered in the wrong side of her account. 
  3. Goods sold on credit to Botha for R6 300 was posted incorrectly to  his account as R3 600. Posting to the General Ledger was correct.
  4. A cheque for R2 500 received from Tele was recorded in the  account of Bosman in error.
  5. A cheque for R4 230 received from Pillai was returned by the bank  marked “R/D – insufficient funds”. A discount of R270 was granted  when this cheque was received. This has not yet been recorded.

C. DEBTORS AGE ANALYSIS 

AMOUNT  OWING 

CURRENT MONTH 

30 DAYS 

60 DAYS 

More than 60 DAYS

R70 000 

12 600 

21 000 

28 000 

8 400

Debtors are allowed 30 days to settle their accounts. 

1.3 CREDITORS RECONCILIATION 
Marge Traders buys goods on credit from Simpson Suppliers. The information  presented is for July 2017. 
REQUIRED: 

  • Reconcile the Creditors Ledger account of Simpson Suppliers in the books of  Marge Traders with the statement received.
  • Commence with the opening balances as provided in the ANSWER BOOK. (13)

INFORMATION: 
A. Creditors Ledger of Marge Traders 
Simpson Suppliers (CL6) 

DATE 

 

DETAILS 

FOL 

DEBIT 

CREDIT 

BALANCE

July 

Balance 

b/d 

   

34 200

 

Invoice No. 443 

CJ 

 

4 770 

38 970

 

10 

Cheque No. 2810 

CPJ 

15 000 

 

23 970

   

Discount 

CPJ 

750 

 

23 220

 

12 

Invoice No. 568 

CJ 

 

5 640 

28 860

 

18 

Debit Note No. 114 

CAJ 

980 

 

27 880

 

28 

Invoice No. 667 

CJ 

 

7 120 

35 000

             

B. Statement received from Simpson Suppliers 

SIMPSON SUPPLIERS

DATE 

DETAILS 

DEBIT 

CREDIT 

BALANCE

June 

28 

Account rendered 

   

38 830

 

30 

Invoice No. 376 

3 370 

 

42 200

July 

Receipt No. 1144 

 

8 000 

34 200

 

Invoice No. 443 

7 740 

 

41 940

 

10 

Receipt No. 1328 

 

15 000 

26 940

 

12 

Invoice No. 568 

6 640 

 

33 580

 

18 

Credit Note No. 743 

980 

 

34 560

 

22 

Invoice No. 772 

3 860 

 

38 420

Includes transactions up to 25th of each month

C. Differences noted: 

  1. Invoice No. 443 was recorded incorrectly in the creditors ledger. 
  2. The statement did not reflect the discount for early payment on the  10th. This will be rectified on the next statement.
  3. It was discovered that Invoice No. 568 on the statement included  goods valued at R1 000 ordered by the warehouse manager. The  manager is facing disciplinary action.
  4. Goods valued at R980 were returned on the 18th. It is shown as a  debit entry in both the creditor’s ledger account as well as the  statement of account. 
  5. Invoice No. 772 on the statement was for goods sold to a different business. This will be corrected on the next statement. 
  6. The statement was received on 25 July 2017. 

40

QUESTION 2: INVENTORY VALUATION (40 marks; 25 minutes) 
2.1 Choose the stock system/method from the list provided, that is best described by  each of the statements below. Write only the stock system/method next to each  number (2.1.1–2.1.5) in the ANSWER BOOK. 

First-in-first-out (FIFO); weighted average; perpetual;  specific identification; periodic  

2.1.1 Similar value, low cost stock items are valued by taking into account the  total cost of the items divided by the number of items available for sale. 
2.1.2 The closing stock value of goods is determined by assuming that the goods  bought first, are sold first. 
2.1.3 Cost of sales is recorded at the point of sale and stock records are adjusted  accordingly. 
2.1.4 The closing stock figure to be used to calculate the cost of sales, is  determined by a physical stock count at the end of an accounting period. 
2.1.5 Sales and cost of sales records are maintained for the individual items sold  due to these being high value goods. (5) 

2.2 COMRADES LTD 
Comrades Ltd sells sporting equipment. The information relates to the tracksuits  and vests departments for the financial year ended 30 April 2017. 

REQUIRED: 

2.2.1 Calculate the selling price per unit for tracksuits. (2)
2.2.2 Calculate the cost of sales of tracksuits using the FIFO method. (7)
2.2.3 Calculate the stock turnover rate of tracksuits (use the average stock). (5) 
2.2.4 It was discovered that vests were missing from the June 2016 delivery.  Calculate the number and value of the missing vests. (7) 
2.2.5 Calculate the Gross Profit made by the vests department. Note that this  department uses the weighted average method to value stock. (8) 
2.2.6 The owner is not satisfied with the performance of the vests department.  Identify TWO problems, other than the missing vests, in this department.  Quote figures. In each case, provide a solution to the problem. (6)

INFORMATION: 

 

TRACKSUITS 

VESTS

Working days per year 

264 days 

264 days

Days worked by department 

250 days 

172 days

Stock turnover rate 

2.2.3 

2 times

     

Sales 

UNITS 

AMOUNT 

UNITS 

AMOUNT

 

515 

R296 125 

298 

?

Selling price per unit 

2.2.1 

R140

     

Stock 

UNITS 

UNIT  

PRICE

AMOUNT 

(R) 

UNITS 

UNIT  

PRICE

AMOUNT 

(R)

Opening stock 

125 

 

40 000 

160 

 

13 760

     

Purchases: 

500 

 

170 450 

340 

 

33 740

June 2016 

120 

R330 

39 600 

75 

R92 

6 900

August 2016 

150 

R340 

51 000 

160 

R95 

15 200

November 2016 

130 

R345 

44 850 

60 

R110 

6 600

January 2017 

100 

R350 

35 000 

45 

R112 

5 040

     

Returns 

10 units of the January 2017  purchases

 

Closing stock 

96 

186 

17 670

40

QUESTION 3: AUDIT REPORTS AND COMPANY FINANCIAL STATEMENTS  (50 marks; 30 minutes) 
3.1 AUDIT REPORTS 
Choose the audit opinion from COLUMN B that best describes the audit report in  COLUMN A. Write the letter only (A–C) next to the numbers (3.1.1–3.1.3) in the  ANSWER BOOK. (3) 

COLUMN A 

COLUMN B

3.1.1 Qualified audit  report 
3.1.2 Unqualified  audit report 
3.1.3 Disclaimer  report 

  1. We were not able to obtain sufficient evidence to  provide for an audit opinion. Accordingly, we do not  express an opinion on the financial statements of  Raman Ltd for the year then ended
  2. Except for the effect of the unauthorised bonus to  the Chief Executive Officer, the annual financial  statements present fairly, in all material respects,  the financial position of Wyne Ltd
  3. The annual financial statements fairly present, in all  material respects, the financial position of Uve Ltd

3.2 RUHI LTD 
Ruhi Ltd is a listed company with an authorised share capital of 800 000 ordinary  shares. The information provided is for the financial year ended 28 February 2017. 
REQUIRED: 

3.2.1 Prepare the Retained Income note to the Balance Sheet. (10) 
3.2.2 Complete the Balance Sheet on 28 February 2017. Show all workings in  brackets. Some amounts are provided in your ANSWER BOOK. (26) 
3.2.3 The CEO, Bakkies Spencer, owns 42% of the issued shares on  28 February 2017. The Board of Directors wants to issue the unissued  shares in the next financial year. 

    • Do a calculation to show the number of shares that Bakkies must buy  to gain control of the company. (5)
    • Bakkies wants to buy the shares at the current net asset value without  advertising them to the public. As an existing shareholder, why would  you not be satisfied with this arrangement? Explain. Provide TWO  points. (4) 

3.2.4 Ruhi Ltd is planning to spend R300 000 on staff development and training  over the next two years. How will this expense be explained (disclosed) in  the published annual report? Give ONE point. (2)

INFORMATION: 
A. The following balances/totals were extracted from the company records on  28 February 2017: 

 

R

Ordinary share capital 

?

Retained income (20 January 2017) 

7 480

Fixed assets at carrying value 

4 060 545

Fixed Deposit: Londa Bank 

415 000

Loan: Dube Bank 

766 400

Inventory (all Trading Stock) 

222 600

Trade and other payables 

231 920

SARS: Income tax (provisional tax payments) 

280 000

Cash in bank 

212 400

B. Share Capital and Dividends: 

  • On 1 March 2016, 80% of the authorised share capital was in issue.
  • On 20 January 2017, the company repurchased 40 000 shares at R1,25 above the average share price of R6,00. This transaction was recorded.
  • An interim dividend of R179 200 was paid on 30 August 2016.
  • A final dividend of R210 000 was declared on 28 February 2017. 

C. Fixed Deposit: 

  • R165 000 of the fixed deposit matures on 30 June 2017. The balance matures  in 2020. 

D. Loan: Dube Bank 
The loan statement received reflected the following: 

Balance on 1 March 2016 

R920 000

Total of monthly repayments (including interest) 

153 600

Interest capitalised 

65 400

Balance on 28 February 2017 

?

A portion of the loan will be settled during the next financial period.

E. Profit and tax: 

  • The net profit after tax amounted to R681 720. 
  • Income tax is calculated at 31% of the net profit. 

F. Financial indicators on 28 February 2017: 

Solvency ratio 

4 : 1

Current ratio 

1,5 : 1

Net asset value (NAV) 

650 cents

Market price (Securities Exchange) 

710 cents

50

QUESTION 4: FINANCIAL STATEMENTS, CASH FLOW AND INTERPRETATION (70 marks; 45 minutes) 
4.1 CONCEPTS: MATCHING 
Choose an accounting concept from COLUMN B that best matches the questions  in COLUMN A. Write only the letter (A–D) next to the number (4.1.1–4.1.3) in the  ANSWER BOOK. 

 COLUMN A 

COLUMN B

4.1.1 To what extent does the business rely on borrowed funds?
4.1.2 Can the business pay off all its debts? 
4.1.3 Is the business able to pay its short-term debts in the next financial year? 

 
  1. Liquidity 
  2. Solvency
  3. Profitability
  4. Risk and gearing

(3)  

4.2 MANI LTD 
Information for the financial year ended 30 June 2017 is provided.  REQUIRED: 

4.2.1 Prepare the Share Capital note to the Balance Sheet on 30 June 2017. (10) 
4.2.2 Calculate the following amounts to be used in the Cash Flow Statement:
Use brackets to indicate amounts that represent an outflow of cash. 

    • Dividends paid (4)
    • Income tax paid (4)
    • Change in investment (2)
    • Change in loan (2) 

4.2.3 Calculate the cost of the additional equipment purchased. (6) 
4.2.4 Complete the net change in cash and cash equivalents section of the  Cash Flow Statement. (5) 
4.2.5 Calculate the following financial indicators on 30 June 2017:

    • Gross profit percentage (mark-up percentage) (4)
    • Net asset value per share (NAV) (3)
    • Return on average shareholders’ equity (6) 

4.2.6 Were the directors justified in increasing the loan? Explain. Quote TWO  financial indicators (with figures) in your answer. (7) 
4.2.7 Explain why the shareholders are not satisfied with: 

    • Dividend pay-out policy
    • Their return earned
      Quote financial indicators (with figures) in your explanation. (8) 

4.2.8 Comment on the price paid to re-purchase the shares on 31 March 2017. 
Quote TWO financial indicators (with figures) in your comments. (6)

INFORMATION: 
A. Extracts from the Income Statement on 30 June 2017: 

 

R

Sales 

11 440 000

Gross Profit 

4 290 000

Depreciation 

510 000

Interest expense 

132 000

Net profit before income tax 

1 048 000

Income tax 

314 400

B. Extracts from the Balance Sheet on 30 June: 

 

30 JUNE 2017 

30 JUNE 2016

Fixed assets (carrying value) 

9 806 000 

8 410 800

Investments 

80 000 

120 000

Shareholders’ equity 

8 801 400 

7 821 800

Ordinary share capital  8 412 800 
Retained income 388 600
Loan: Viva Bank  1 250 000  950 000
Cash and cash equivalents 2 500  98 500
Bank overdraft  65 300  -
SARS: Income tax  22 300 (Cr) 31 000 (Dr)
Shareholders for dividends  264 000 320 000

C. Share Capital: 
The authorised share capital comprises 1 200 000 shares. 

1 July 2016 

Issued share capital comprised 800 000 ordinary shares

1 October 2016 

Additional shares issued at R9,80 per share

31 March 2017 

120 000 shares repurchased at R10,00 per share

30 June 2017 

Closing balance comprised 880 000 ordinary shares

D. Dividends: 

  • Total dividends for the year amounted to R514 000. 
  • An interim dividend was paid on 1 December 2016 and a final dividend was  declared on 30 June 2017. Only shareholders on the share register were  entitled to dividends. 

E. Fixed assets: 

  • Extensions to the warehouse were completed at a cost of R1 800 000.
  • Equipment at carrying value of R440 400 was disposed and new equipment  was purchased, to upgrade the present administration section.

F. The following financial indicators were calculated on 30 June: 

 

2017 

2016

Debt/equity ratio 

0,1 : 1 

0,1 : 1

Current ratio 

1,2 : 1 

1,3 : 1

Acid test ratio 

0,6 : 1 

0,6 : 1

Earnings per share 

80 cents 

78 cents

Dividends per share 

55 cents 

75 cents

Net asset value per share 

978 cents

Return on average capital employed 

12,5% 

11,3%

Return on average equity 

7,9%

Market price of shares (JSE) 

1120 cents 

1100 cents

Interest rate on loans 

13% 

13%

Interest rate on fixed deposits 

9% 

9%

70

QUESTION 5: COST ACCOUNTING AND FIXED ASSETS (60 marks; 30 minutes) 
5.1 Indicate whether the following statements are True or False. Write only the answer  next to the question numbers (5.1.1–5.1.3) in the ANSWER BOOK. (3) 

5.1.1 The salary of the factory cleaner is regarded as an indirect labour cost.
5.1.2 Depreciation on factory plant and equipment is a variable cost. 
5.1.3 Prime cost is calculated by adding direct material cost and indirect  material cost. 

5.2 TS FINE-WEAR 
Thandi and Sindy own TS Fine-wear, a clothing manufacturing business that  makes a single style winter jacket for schools.  
REQUIRED: 

5.2.1 Calculate the direct labour cost. (7) 
5.2.2 Refer to Information C: 
Calculate the amounts for (a) and (b) on the note for Factory Plant and  Equipment. (13) 
5.2.3 Prepare the Factory Overhead Cost note. (12)
5.2.4 Calculate the cost of sales for the year ended 31 December 2017. (5) INFORMATION: 

A. Stock balances: 

 

31 DECEMBER 2017 

1 JANUARY 2017

Raw material 

R56 800 

R87 400

Work-in-process 

50 000 

20 000

Finished goods 

41 000 

46 000

Factory consumable stores 

8 760 

9 420

B. Details of factory personnel:

Factory foreman and  Maintenance staff

R300 000 

Salary package is inclusive of benefits.

 

Workers in production:

Number of workers 

5

Normal time 

1 800 hours per annum per worker.

Normal time rate 

R70 per hour

Overtime hours worked 

A total of 660 hours recorded as per register

Overtime rate 

1,6 times the normal rate

   

The employer’s contribution amounts to 9% of basic wage

C. Factory Plant and Equipment 

Cost (1 January 2017) R420 000 
Accumulated Depreciation (1 January 2017) (198 000)
Carrying value (1 January 2017) 222 000 
Movements:   
Additions 76 000 
Disposals (a)
Depreciation (b)
Carrying value (31 December 2017)   
Cost (31 December 2017) 436 000
Accumulated Depreciation (31 December 2017)   
  • Old equipment were sold on 1 September 2017 for R6 500 cash,  resulting in a loss on sale of asset of R2 500. 
  • New equipment were purchased on 1 October 2017 to replace the  equipment sold.
  • Equipment is depreciated at 15% p.a. on cost. 

D. Factory consumables used amounted to R52 750. 
E. The following expenses (amongst others) appeared in the pre-adjustment  trial balance on 31 December 2017: 

Insurance 

R 32 300

Water and electricity 

98 700

Rent expense 

102 000

Depreciation 

116 000

Factory sundry expenses 

19 150

  • 2/3 of the water and electricity expense relates to the factory.
  • The insurance total includes an annual premium of R4 200 entered  into and paid in full on 1 September 2017. 
  • 60% of the insurance must be allocated to the factory.
  • Rent expense is shared by the factory, sales and office departments  in the ratio 5 : 2 : 1.  

F. The business produced 29 500 jackets at a cost of R60 each.

5.3 PASS MANUFACTURERS 
PASS Manufacturers makes a single brand sports jacket and caps. 
The owner requested a cost analysis for the last two financial years and was  presented with the information below. 
REQUIRED: 
5.3.1 Do a calculation to prove that the break-even point for jackets in 2017  is correct. (4) 
5.3.2 Comment on the break-even points and the level of production for both  products. (4) 
5.3.3 The owner decided to increase the selling price of caps in 2017.

  • Calculate the percentage increase in the selling price. (4)
  • Provide ONE reason why the owner felt it necessary to increase the  selling price. (2) 

5.3.4 Identify ONE variable cost for jackets and ONE variable cost for caps  that were not well controlled. Provide figures. In each case, provide a  solution/advice to address the problem. (6) 
INFORMATION: 

 

JACKETS 
Unit cost (R)

CAPS 
Unit cost (R)

 

2017 

2016 

2017 

2016

Variable cost 

73,00 

63,90  

39,80

33,70

Direct material cost 

40,00 

32,00   15,00

14,00

Direct labour cost 

22,50 

21,40 

15,50 

12,50

Selling and distribution cost 

10,50 

10,50

9,30

7,20 

Fixed cost  41,20  35,30 20,80  20,30 
Factory overhead cost  26,00  21,80  11,00  10,80

Administration cost 

15,20  

13,50

9,80

9,50 

Units produced and sold  15 000 15 000  9 500  9 500

Break-even units 

14 715 

10 362 

7 134 

9 500

Selling price per unit 

R115,00 

R115,00 

R67,50 

R54,00

60

QUESTION 6: BUDGETING (40 marks; 25 minutes)
6.1 Explain why: 

6.1.1 Depreciation and bad debts will not appear in a Cash Budget. (2)
6.1.2 A cash budget is different from a Projected Income Statement. (2) 

6.2 KWT DISTRIBUTORS LTD 
You are provided with information for the budget period November and  December 2017. 
REQUIRED: 

6.2.1 Complete the Debtors Collection Schedule. (12)
6.2.2 Calculate the missing amounts denoted by (i) to (v) on the Cash Budget. (20) 
6.2.3 Comment on the internal controls regarding the collection from debtors  and the payment to creditors. Provide TWO points. (4) 

INFORMATION: 

  1. Cash sales amount to 40% of total sales.
    Goods are marked-up by 25% on cost. 
  2. Debtors are granted credit terms of 30 days. The actual collection trend  revealed that: 
    • 50% of debtors pay in the month of sale to receive 5% discount. 
    • 30% is received in the month following the month of sales;
    • 18% is collected in the second month after the sale;
    • 2% of debtors is written off thereafter.
  3. Stock is replaced in the month sold (a base stock is maintained)
  4. Rent income will increase by 8% in December 2017.
  5. 80% of stock is bought on credit. Creditors are paid in full in the month  following the month of purchases.
  6. Salaries and wages are expected to remain the same for the budget period.  Staff members on leave in December will receive their pay, totalling  R35 600, during November. 
  7. A loan will be received from a director, Thabo, on 1 November 2017 at  13%p.a. interest. Interest is not capitalised. A fixed monthly instalment and  interest will be paid at the end of each month. 
  8. The company will pay interim dividends during December.
  9. Incomplete Debtors Collection Schedule: 

    MONTH 

    CREDIT SALES 

    NOVEMBER 

    DECEMBER

    September 

    180 000 

    ?

     

    October 

    186 000 

    55 800 

    ?

    November 

    92 625 

    ?

    December 

    210 000 

     

    ?

    TOTAL   ? ?
  10. Information from the Projected Income Statement: 
     

    NOVEMBER 2017

    Sales 

    325 000

    Cost of sales 

    260 000

    Commission income 

    24 800

    Depreciation 

    12 600

    Interest expense 

    1 625

  11. Incomplete Cash Budget for 2017: 

RECEIPTS 

NOVEMBER 

DECEMBER

Cash sales 

130 000 

(i)

Cash from debtors

   

Commission income 

24 800 

26 000

Rent income 

(ii) 

19 710

Loan from director Thabo 

150 000 

0

TOTAL RECEIPTS

 

PAYMENTS

   

Cash purchases of stock 

52 000 

56 000

Payments to creditors 

(iii) 

208 000

Directors fees 

20 000 

20 000

Salaries and wages 

180 600 

(iv) 

Loan instalment (including interest) 

13 625 

(v)

Interim dividends 

86 500

Sundry expenses 

15 875 

16 510

TOTAL PAYMENTS     

40 
TOTAL: 300

ACCOUNTING
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

MARKING PRINCIPLES: 

  1. Penalties for foreign items are applied only if the candidate is not losing marks elsewhere in the  question for that item (no foreign item penalty for misplaced items). No double penalty applied.
  2. Penalties for placement or poor presentation (e.g. details) are applied only if the candidate is earning  marks on the figures for that item.
  3. Full marks for correct answer. If the answer is incorrect, mark the workings provided.
  4. If a pre-adjustment figure is shown as a final figure, allocate the part-mark for the working for that  figure (not the method mark for the answer). 
  5. Unless otherwise indicated, the positive or negative effect of any figure must be considered to award  the mark. If no + or – sign or bracket is provided, assume that the figure is positive.
  6. Where indicated, part-marks may be awarded to differentiate between differing qualities of answers  from candidates.
  7. This memorandum is not for public distribution, as certain items might imply incorrect treatment. The  adjustments made are due to nuances in certain questions 
  8. Where penalties are applied, the marks for that section of the question cannot be a final negative.
  9. Where method marks are awarded for operation, the marker must inspect the reasonableness of the  answer before awarding the mark.
  10. 'Operation' means 'Check operation'. 'One part correct' means 'Operation and one part correct'. 
  11. In awarding method marks, ensure that candidates do not get full marks for any item that is incorrect  at least in part. In such cases, do not award the method mark. Indicate by way of ⌧
  12. Be aware that some candidates provide valid alternatives beyond the memorandum.
  13. Codes: f = foreign item; p = placement/presentation. 

MEMORANDUM

QUESTION 1: RECONCILIATIONS 
1.1 Choose the correct answer from the words provided within brackets.  Write only the answer, next to each number. 

1.1.1 

Cash Receipts Journal (CRJ) ✔

1.1.2 

Debit ✔

1.1.3 

Credit note ✔

1.1.4 

Cash discount ✔     (4)

1.2 DEBTORS RECONCILIATION 
1.2.1

Calculate the correct Debtors Control balance on 30 June 2017. 

  • 74 600 – 3 500 ✔ + 4 500 ✔✔ = 75 600 ? one part correct 
                               (4 230 + 270) 

(4)

1.2.2 Calculate the balances for the following debtors: 

Pillai 21 600 ✔ – 1 600 ✔✔ + 4 500 ? 1.2.1 

24 500 ?*

Tele 24 900 ✔ – 2 500 ✔ 

22 400 ?*

Botha 11 100 ✔✔ + 2 700 ✔ 

13 800 ?*

* One part correct
(12)

1.2.3 

 Calculate the percentage of debtors that are not complying with the  30 days credit terms.   
   36 400 ✔ 
28 000 + 8 400 x 100 = 52% ? one part correct 
      70 000 ✔

(3)

Explain TWO internal control measures that JT Traders can use to  ensure that only reliable clients are granted credit. 
Any TWO control measures ✔✔ ✔✔ 

  • Perform credit checks (references / listing / credit bureau) to check credit worthiness.
  • Check employment history and salary advice to check if they can afford it.
  • Contact details (residential/postal address and contact numbers) to get in touch with  them if necessary.

(4)

1.3 CREDITORS RECONCILIATION  

NO.

CREDITOR’S LEDGER  
ACCOUNT BALANCE 

STATEMENT BALANCE

Balance 

35 000 

38 420

(i) 

2 970 
7 740 – 4 770✔✔

 

(ii) 

 

(750) ✔✔

(iii) 

1 000 ✔✔

 

(iv) 

 

(1 960) 
980 + 980 (1 mark each)✔✔

(v) 

 

(3 860) ✔✔

(vi) 

 

7 120 ✔✔

TOTAL 

38 970 ? for both totals

38 970

(13)

Allocate 1 mark for the amount and 1 mark for the sign (accept brackets,  negative sign)

Q1:  
TOTAL MARKS 

40                                 

QUESTION 2: INVENTORY VALUATION 
2.1. 

2.1.1 

Weighted average ✔

2.1.2 

FIFO ✔

2.1.3 

Perpetual ✔

2.1.4 

Periodic ✔

2.1.5 

Specific identification ✔

(5)

2.2 COMRADES LTD 
2.2.1

Calculate the selling price per unit for tracksuits. 

296 125 = R575 ✔✔               (2 marks or 0) 
   515  

(2)

2.2.2

Calculate the cost of sales of tracksuits using the FIFO method. 

                                                                      33 570              (2 marks) one part correct 
40 000 ✔ + 170 450 ✔– 3 500 ✔ – (31 500 ✔ + 2 070 ?✔) = 173 380 ? one part correct 
                                                           90 x 350   6 x 345

 (7)

2.2.3

Calculate the stock turnover rate of tracksuits (use the average stock). 

                             2.2.2 
                       173 380 ?                 = 4,71 / 4,7 times ? one part correct 
½ ✔(40 000 ✔ + 33 570 ?)2.2.2 
                   36 785 (three marks) 

(5)

2.2.4

It was discovered that vests were missing from the June 2016 delivery.  Calculate the number and value of the vests missing. 
NUMBER MISSING:  
(160 ✔ + 340 ✔) – 298 ✔ – 186 ✔ = 16 ? one part correct 

VALUE:  
16 x R92 ✔ = R1 472 ? one part correct 

(7)

2.2.5 

Calculate the Gross Profit made by the vests department.
Note that this  department uses the weighted average method to value stock.

Sales 298 ✔ x R140 ✔  41 720 ?*  
Cost of sales 13 760 ✔ + 33 740 ✔ – 17 670 ✔ 29 830 ?*
Gross profit 11 890 ?*

 *one part correct

(8)

2.2.6 Identify TWO problems other than the missing vests in the VESTS department. Quote figures. In each case, provide a solution to the  problem.

PROBLEM 
Problem identified ✔ ✔ Figure ✔ ✔

SOLUTION ✔ / ADVICE ✔ 

Problem 1: 
Days worked (172/264)

  • Investigate the reason for the low  number of days worked.
  • Monitor opening and closing times  and the employees’ leave-taking.
  • Do cost-benefit analysis to  determine whether to keep this  department.
  • Pay workers only for days worked.

Problem 2: 
Stock turnover rate (2 times)
OR 
Lower sales (298/500 units)
OR 
Stockpiling (186 units on hand)

  • Use an ordering system and buy  according to orders.
  • Sacrifice profit (lower mark-up) to  increase sales.

(6)

Q2:  
TOTAL MARKS 

40                                 

QUESTION 3: COMPANY FINANCIAL STATEMENTS  
3.1 

3.1.1 

B ✔

3.1.2 

C ✔

3.1.3 

A ✔

(3)

3.2 RUHI LTD 
3.2.1 RETAINED INCOME 

Balance on 1 March 2016 (7 480 ✔ + 50 000 ?#) 

57 480?one part  

correct

Funds used to repurchase shares (40 000 x 1,25) 

(50 000) #✔✔

Net profit after income tax 

681 720 ✔

Ordinary share dividends 

(389 200) ✔

Interim dividend 179 200 ✔
Final dividend  210 000 ✔ 
Balance on 28 February 2017 300 000 ?
  operation
(10)

3.2.2 BALANCE SHEET AS AT 28 FEBRUARY 2017 

 

ASSETS

 
 

Non-current assets operation 

4 310 545 ✔

  Fixed assets 4 060 545
  Fixed Deposit (415 000 – 165 000) 250 000 ✔✔ 
  Current assets CL x 1,5 889 455 ✔✔
   ✔ Inventories (Trading Stock)  222 600 ✔
  ✔ Trade and other receivables balancing figure  289 455 ? 
  Cash and cash equivalents
                                (212 400 ✔ + 165 000 ✔) 
377 400 ✔ 
13 TOTAL ASSETS          Total Equity + Liabilities 13  5 200 000 ? 
  EQUITY AND LIABILITIES  
  Shareholders’ equity operation  3 900 000 ?*
   Ordinary share capital balancing figure 3 600 000 ?
   Retained income refer 3.2.1 300 000 ? 
  Non-current liabilities 707 030 
 

Loan: Dube Bank (831 800 ✔?* – 124 770 ?) 
           (920 000 – 153 600 + 65 400) see CL 

707 030 ?* 
  Current liabilities 592 970
  Trade and other payables 231 920 
  Shareholders for dividends see 3.2.1 210 000 ?
  SARS: Income tax (306 280 ✔✔ – 280 000 ✔) 26 280 ?*
  Current portion of loan balancing figure 124 770 ? 
13  TOTAL EQUITY AND LIABILITIES 

5 200 000 

(26)

-1 foreign items (-2 max.) Misplaced items must be marked wrong. Current liability items may be combined *one part correct

3.2.3

Do a calculation to show the number of shares that Bakkies must buy  to gain control of the company. 

800 000 x 50% + 1 = 400 001 or (50% + 100 = 400 100) ✔✔ 
                                                                              Shares are normally sold in batches (lots) of 100.
600 000 x 42% = 252 000 ✔✔ 
Bakkies must buy 148 001 / 148 100 shares ? one part correct  

  • Accept: 800 000 x 51% = 408 000 (in this case Bakkies must buy 156 000 shares) 

(5) 

Bakkies wants to buy the shares at the current net asset value without  advertising them to the public. As an existing shareholder, why would  you not be satisfied with this arrangement? Explain. Provide TWO  points. 
TWO valid points ✔✔ 

  • It is illegal and unethical to act against the law as prescribed by the Companies  Act.
  • Companies Act requires that shares be advertised to the public (prospectus).
  • He wants to pay less than the market price – this would disadvantage the  company (investors are willing to pay more).  

(4)

3.2.4

Ruhi Ltd is planning to spend R300 000 on staff development and  training over the next two years. How will this expense be explained  (disclosed) in the published annual report? Give TWO points. 
TWO valid points ✔ ✔  

  • The directors will include this in the directors’ report stating the company’s  commitment to community/employee skills development.
  • This will form part of their corporate social responsibilities. 
  • It will highlight the company’s compliance with the King Code.
  • Emphasis on the triple bottom line.

(2)

Q3:  
TOTAL MARKS 

50                                       

QUESTION 4: FINANCIAL STATEMENTS, CASH FLOW AND INTERPRETATION 4.1 CONCEPTS: MATCHING 

4.1.1 

D ✔

4.1.2 

B ✔

4.1.3 

A ✔

(3)

4.2 MANI LTD 
4.2.1 SHARE CAPITAL 
Authorised share capital 

 1 200 000 ordinary shares  

Issued share capital 

800 000 

Ordinary shares on 1 July 2016 

7 600 000 ?*

200 000 ?* 

Shares issued at R9,80 each 

1 960 000 ✔✔

(120 000) ✔ 

Shares repurchased (ASP: R9,56 ✔✔) 

(1 147 200) ? 

880 000 ✔ 

Ordinary shares on 30 June 2017 

8 412 800 ✔
    *balancing figures
(10)

4.2.2 Amounts for the Cash Flow Statement.  
(Final answer must show INFLOW or OUTFLOW of cash) 

WORKINGS 

ANSWER

 

Dividends paid 
320 000 ✔ + 514 000 ✔ – 264 000 ✔ 

Or 320 000 (one mark) + 250 000 (two marks) 
Accept alternative presentations (signs reversed or GL)

(570 000) ? 
one part correct and  outflow

(4)

Income tax paid 
31 000 ✔ + 22 300 ✔ – 314 400 ✔ 
Accept alternative presentations (signs reversed or GL)

(261 100) ? 
one part correct and  outflow 

(4)

Change in investment 
120 000 – 80 000 

40 000 ✔? 
one part correct and inflow

(2)

Change in loans 
1 250 000 – 950 000 

300 000 ✔? 
one part correct and inflow

(2)

Accept alternative presentation of information such as signs reversed, ledger accounts etc.
4.2.3

 Calculate the cost of the additional equipment purchased. 
                                                                                                                one part correct
9 806 000 ✔+ 440 400 ✔+ 510 000 ✔– 8 410 800 ✔– 1 800 000 ✔ = 545 600 ? 
–9 806 000 ✔– 440 400 ✔– 510 000 ✔+ 8 410 800 ✔+ 1 800 000 ✔ = –545 600 ?
Accept alternative presentation of information such as signs reversed, ledger accounts etc.  

(6)

4.2.4

NET CHANGE IN CASH AND CASH EQUIVALENTS   (161 300) ✔  
Cash balance on 1 July 2016   98 500 ✔
Cash balance on 30 June 2017 2 500 ✔– 65 300 ✔

(62 800) ?*

(5)

 -1 for poor presentation (No or incorrect details) *one part correct 

4.2.5

Calculate the gross profit percentage (mark-up percentage). 
  4 290 000   ✔ x 100 = 60% ? one part correct 
7 150 000 ✔✔ 

(4)

Calculate the net asset value per share (NAV). 
8 801 400 ✔ x 100 = 1 000 cents ? one part correct 
  880 000 ✔

(3)

Calculate the return on average shareholders’ equity. 
              733 600 
     (1 048 000 – 314 400)       ✔✔ x 100 = 8,8% ? one part correct  ½ ✔
(7 821 800 ✔ + 8 801 400 ✔) 
             8 311 600 

(6)

4.2.6

Were the directors justified in increasing the loan? Explain. Quote TWO  relevant financial indicators (with figures) in your answer. 
YES or NO: ✔ 

Financial Indicators: ✔✔ ✔✔ 

  • Debt/Equity ratio : consistent over the year at 0,1 : 1
  • ROTCE: increase from 11,3% to 12,5% 

Explanation: ✔✔ 

  • The company is lowly geared (using more own capital than borrowed capital).
  • The return on capital employed however shows that the company is negatively  geared (earning less than the interest rate of 13%). 

(7)

4.2.7

Explain why the shareholders are not satisfied with the dividend pay out policy and their return earned. Quote financial indicators (with  figures) in your explanation. 
Dividend pay-out policy: 

  • 2016: 75/78 = 96,1% ✔✔
  • 2017: 55/80 = 68,8% ✔✔ 

Return earned: 

  • ROSHE increased from 7,9% to 8,8% (refer 4.2.5) ✔✔ 

Explanation: ✔✔ 

  • The shareholders may be dissatisfied with their dividends as the company decided  to retain a larger percentage of the earnings than last year (last year distributed  96% of EPS compared to 69% this year). The directors may have explained their  strategy in the annual reports.
  • Although their return on investment increased, it is still below the return on  alternative investments. 

(8) 

4.2.8

Comment on the price paid to repurchase the shares on 31 March 2017.  Quote TWO financial indicators (with figures) in your comments. 
Financial indicators ✔✔ figures ✔✔ comment ✔✔ 
NAV: R9,78 at the beginning of the year. 
Market price was R11,00 on 1 July 2016 and shows an upward trend (R11,20). The company paid R10,00. 
The price paid was therefore fair.  
It did not compromise the company or the shareholders. 

(6)

Q4:  
TOTAL MARKS 

70                              

QUESTION 5: COST ACCOUNTING AND FIXED ASSETS 
5.1 

5.1.1 

True ✔

5.1.2 

False ✔

5.1.3 

False ✔

(3)

5.2. TS FINE-WEAR 
5.2.1

Direct labour cost 
Normal time 5 x 1 800 x R70                630 000 ✔?* 
Overtime 660 x R112 ✔✔                      73 920 ?* 
Contributions 630 000 x 9%                  56 700 ? (9% of normal time)
                                                             760 620 ?* 
                                                                              *one part correct 

(7)

5.2.2 

 

WORKINGS 

ANSWER

 

(a) 

6 500 ✔ + 2 500 ✔✔ 

9 000 ?

(4)

(b)

            420 000 + 76 000 – 436 000 
SOLD: 60 000 ✔✔ x 15% x 8/12 = 6 000 ?
NEW: 76 000 x 15% x 3/12 = 2 850 ✔✔
OLD: (420 000 ✔ – 60 000 ?) x 15% = 54 000 ?

 

62 850 ?

(9)

5.2.3 Factory overhead cost 

Indirect labour 

300 000 ✔

Indirect material 

52 750 ✔

Water and electricity 98 700 x 2/3 

65 800 ✔?*

Insurance (32 300 ✔ – 2 800 ✔✔) x 60% 

17 700 ?*

Rent expense 102 000 x 5/8 

63 750 ✔?*

Depreciation See 5.2.2 (b) 

62 850 ?

Factory sundry expenses 

19 150

 

 

  582 000 ?*
   *one part correct
(12)

5.2.4

Calculate: Cost of sales 
                                            29 500 x R60 
Cost of sales: 46 000 ✔ + 1 770 000 ✔✔ – 41 000 ✔ = 1 775 000 ? 
                                                                                                      one part correct
Accept alternative calculations including the Finished Goods Stock Account. 

(5) 

5.3 PASS MANUFACTURERS 
5.3.1

Do a calculation to prove that the break-even point for jackets in 2017  is correct.
          618 000  
41,20 ✔ x 15 000 ✔ = 14 714/14 715 units 
   115 ✔ – 73 ✔ 
              42 

(4)

5.3.2 Comment on the break-even points and the level of production for both  products. Quote figures. 

Jackets: 

                               Comment: ✔ figures ✔ 

  • The BEP shows an increasing trend (10 362 to 14 715 units) whilst  the level of production remains constant (15 000 units). Decrease in profitability.

Caps: 

            Comment: ✔ figures ✔ 

  • The level of production is constant at 9 500 units but the BEP  dropped from 9 500 units to 7 134 units.
  • No profit was made in 2016. 2017 showed a profit.

(4)

5.3.3

Calculate the percentage increase in the selling price. 

        13,50 ✔✔ 
67,50 – 54,00 x 100 = 25% ? one part correct 
     54,00 ✔ 

 (4)

Provide ONE reason why the owner felt it necessary to increase the  selling price. 
One valid reason ✔✔ 

  • He did not make a profit or loss in 2016 (broke even; units produced equal  to the BEP)
  • An increase in selling price would invariably lead to a lower BEP if costs stays the same. 

(2)

5.3.4 

 

COST IDENTIFIED 
(with figures) 
✔✔ ✔✔

ADVICE OR SOLUTION
One valid point per cost item 
✔ ✔ 

Jackets

Cost: 

  • Direct material cost increased by 25%  (from R32 to R40 per unit)

Look for cheaper suppliers. 

  • Take advantage of bulk discounts. Investigate wastage – train staff.

Caps

Cost: 

  • Direct labour cost increased by 24%  (from 12,50 to 15,50)
    Or
  • Selling and distribution increased by  29% (from 7,20 to 9,30)

Control overtime. 

  • Train staff to be more efficient.
  • Give sales persons commission. Identify costs and monitor use.
  • Reduce advertising.
  • Maintain this strategy.
    *The above may have contributed to the  better profits

Q5:  
TOTAL MARKS 

60                                        

QUESTION 6: BUDGETING  
6.1 Explain why: 
6.1.1

Depreciation and bad debts will not appear in a Cash Budget.
Any valid explanation ✔✔ 

  • Non-cash items are not included in a cash budget.
  • A cash budget would only include cash receipts and cash payments.

(2)

6.1.2

A cash budget is different from a Projected Income Statement. 
Any valid explanation ✔✔ 

  • A cash budget includes receipts and payments and shows plans for cash  management. It shows the surplus/deficit and the bank balance.
  • The PIS shows income and expenses (including non-cash items) and projects the  profit or loss per month (for the budget period). 

(2)

6.2 KWT DISTRIBUTORS LTD 
6.2.1 

MONTHS 

CREDIT SALES 

NOVEMBER 

DECEMBER

September 

180 000 

32 400 ✔✔

 

October 

186 000 

55 800 

33 480 ✔✔

November 

195 000 ✔✔ 

92 625 

58 500 ??
30% of 195 000 

December 

210 000 

 

99 750 ✔✔

Total collection from debtors 

180 825 ✔ 

191 730 ?

    (12)

6.2.2 Calculate:

 

WORKINGS 

ANSWER

(i) 

Cash sales for December: 
210 000 x 40/60 

140 000 ✔✔ 

(ii) 

Rent income amount for November: 
19 710 ✔ x 100/108 ✔ 

18 250 ? 
 one part correct 

(iii) 

Payments to creditors for November: 
186 000 x 100/60 = 310 000 ✔✔ 
310 000 x 100/125 = 248 000 ✔✔ 
                                       248 000 x 80% ✔

198 400 ? 
 one part correct

(iv) 

Salaries and wages for December: 
180 600 ✔ – 35 600 ✔ – 35 600 ✔ 

109 400 ? 

 one part correct 

(v) 

Loan instalment (including interest) for December: 
                                        138 000 ✔? ✔
(13 625 – 1 625) + (150 000 – 12 000) x 13% x 1/12 
         12 000 ✔                                     1 495 (three marks) 

13 495 ? 
 one part correct 

    (5)

6.2.3

Comment on the internal controls regarding the collection from debtors  and the payment to creditors. Provide TWO points. 
Any TWO valid points ✔✔ ✔✔ 

  • Only 50% of the debtors comply with the credit terms.
  • The cash from debtors do not cover the payments to creditors (per month).
  • 80% of stock is bought on credit / only 20% cash purchases of stock. 
  • As cash
  • Sales is a greater percentage of total sales, it may be wise to increase the percentage of cash purchases.
  • Taking advantage of short-term credit is only beneficial if it eases cash-flow  problems. 

(4)

Q6:  
TOTAL MARKS 

40                                                

TOTAL: 300

BUSINESS STUDIES
GRADE 12
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

INSTRUCTIONS AND INFORMATION 
Read the following instructions carefully before answering the questions.

  1. This question paper consists of THREE sections and covers all main topics.
    SECTION A: COMPULSORY
    SECTION B: Consists of FIVE questions.
    Answer any THREE of the five questions in this section.
    SECTION C: Consists of FOUR questions.
    Answer any TWO of the four questions in this section.
  2. Read the instructions for each question carefully and take particular note of what  is required.
  3. Number the answers carefully according to the numbering system used in this  question paper. No marks will be awarded for answers that are numbered  incorrectly. 
  4. Except where other instructions are given, answers must be written in full  sentences.
  5. Use the mark allocation and nature of each question to determine the length and  depth of an answer. 
  6. Use the table below as guide for mark and time allocation when answering each  question. 

SECTION 

QUESTION 

MARKS 

TIME

A: Objective-type  questions 
COMPULSORY

40 

30 minutes

       

B: FIVE direct/indirect type questions 

CHOICE (Answer any  THREE.)

60 

30 minutes

60 

30 minutes

60 

30 minutes

60 

30 minutes

60 

30 minutes

       

C: FOUR essay-type  questions 

CHOICE (Answer any  TWO.)

40 

30 minutes

40 

30 minutes

40 

30 minutes

10 

40 

30 minutes

       

TOTAL 

 

300 

180 minutes

  1. Begin the answer to EACH question on a NEW page, for example  QUESTION 1 – new page, QUESTION 2 – new page, et cetera. 
  2. You may use a non-programmable calculator.
  3. Write neatly and legibly.

QUESTIONS 

SECTION A (COMPULSORY) 
QUESTION 1 
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 number  (1.1.1–1.1.10) in the ANSWER BOOK, for example 1.1.11 E. 
1.1.1 Workers are entitled to ... consecutive days’ annual leave per year. 

  1. 19
  2. 20 
  3. 21 
  4. 22 

1.1.2 This strategy does not form part of the intensive strategies. 

  1.  Product penetration
  2. Product development 
  3. Market development 
  4. Market penetration 

1.1.3 The main purpose of the Labour Relations Act (LRA) (No. 66 of 1995) is to … 

  1. ensure that employees work in a more suitable and less  dangerous environment. 
  2. promote equal opportunity and fair treatment in the workplace.
  3. promote economic development, social justice, labour peace  and democracy in the workplace. 
  4. ensure that qualified people from designated groups have  equal opportunities in the workplace. 

1.1.4 A partnership has ... 

  1. limited liability and limited continuity.
  2. unlimited liability and unlimited continuity.
  3. limited liability and unlimited continuity. 
  4. unlimited liability and limited continuity. 

1.1.5 The return on an investment in shares is called ... 

  1.  dividends.
  2. interest. 
  3. capital gain.
  4. profit.

1.1.6 The … clause is applied to determine the amount that the insurer  will pay out, when goods are underinsured. 

  1. excess 
  2. reinstatement
  3. subrogation
  4. average 

1.1.7 ... means valuing each other regardless of status, culture or  disability. 

  1. Discrimination
  2. Leadership
  3. Diversity
  4. Inclusivity 

1.1.8 Team dynamic theories help businesses to … 

  1. allocate tasks to team members with similar personalities.
  2. allocate tasks according to the roles of team members. 
  3. promote total satisfaction. 
  4. establish good relationships with teams. 

1.1.9 This function creates a favourable image of the business. 

  1.  General management
  2. Human resources 
  3. Public relations 
  4. Purchasing 

1.1.10 Quality circles usually form part of the … TQM element. 

  1.  continuous improvements of processes and systems.
  2. top management involvement. 
  3. teamwork. 
  4. monitoring and evaluation of quality processes.
    (10 x 2) (20)

1.2 Complete the following statements by using the word(s) in the list below. Write  only the word(s) next to the question number (1.2.1–1.2.5) in the ANSWER  BOOK. 

JSE; empty chair; tertiary; screening; compulsory; secondary; CSR;  brainstorming; shortlisting; fringe  

1.2.1 The ... sector includes all industries that offer services to other  businesses and consumers. 
1.2.2 The ... gives opportunities to financial institutions to invest their funds  in shares. 
1.2.3 ... is a creative thinking problem-solving technique in which several  people think about a single problem and suggest ideas that could lead  to a solution. 
1.2.4 ... is to eliminate the unsuitable candidates for the position. 1.2.5 Medical aid is an example of ... benefits. (5 x 2) (10)

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 (1.3.1–1.3.5) in the  ANSWER BOOK, e.g. 1.3.6 K. 

COLUMN A 

COLUMN B

1.3.1 Employment  Equity Act 
1.3.2 Reinstatement
1.3.3 Conflict 
1.3.4 Economic right
1.3.5 Quality control 

  1. Right to belong to a trade union
  2. A complaint from an employee over something  believed to be wrong or unfair in the workplace
  3. Inspection of the final product to ensure that it  meets the required standards
  4. A stipulation set by the insurer that is  applicable when property or goods are insured  for more than their market value 
  5. Differences in opinions, values and attitudes
  6. A stipulation whereby the insurer may replaces lost or damaged property or goods instead of  reimbursing
  7. Inspections is carried out during and after the  production process to ensure required  standards have been met at every stage of the  process
  8. Implement affirmative action to prevent unfair  discrimination
  9. Enhance the economic participation of black  people
  10. Right to healthcare

(5 x 2) (10) 

TOTAL SECTION A: 40

SECTION B 
Answer any THREE questions from the five questions in SECTION B. Start EACH  question on a NEW page. 
QUESTION 2: BUSINESS ENVIRONMENT 
2.1 Identify the element of Porter’s Five Forces model that applies to each of the  following statements: 

2.1.1 Royal Clothing attracts more customers than Pro Clothing because  they offer lower prices. 
2.1.2 Local Plastics is the only place where retailers can buy plastic  shopping bags. 
2.1.3 Handsome Stores want to start an exclusive fashion boutique that  requires huge capital investment to cover the high establishment  costs and expensive stock. 
2.1.4 Medi-Care has a few regular customers who always place large  orders. 
2.1.5 Customers prefer warmer coats to more expensive, formal jackets. (5 x 2) (10) 

2.2 Name THREE business sectors. (3)
2.3 Describe the strategic management process. (6)
2.4 Read the article below and answer the questions that follow. 

THE ROLE OF SETAS 

There are 25 Sector Education and Training Authorities (SETAs) in South  Africa and each is classified according to economic sectors. The functions and  responsibilities of SETAs are set out in the Skills Development Act (SDA),  1998 (Act 97 of 1998). The Act states that the role of a SETA is to develop a  sector skills plan, implement the plan, develop and administer learnerships.  SETA’s also support the implementation of the National Qualifications  Framework and undertake quality assurance. 

[Adapted from Mail & Guardian, 23 October 2003] 

2.4.1 Quote THREE roles of SETAs mentioned in the article above. (3) 
2.4.2 Explain the purpose of the Skills Development Act (SDA), 1998  (Act 97 of 1998). (6) 

2.5 Explain THREE defensive strategies that businesses can use to overcome  their challenges. (9)
2.6 Discuss any THREE consumer rights as stipulated in the Consumer  Protection Act (CPA), 2008 (Act 68 of 2008). (9) 
2.7 Read the following statement and answer the questions that follow. 

The primary purpose of the Broad-Based Black Economic Empowerment Act (BBBEE), 2003 (Act 53 of 2003) (amended in 2013) is to address and enhance  the economic participation of Black people in the South African economy. This  is achieved by implementing the following pillars: ownership, management  and control, skills development, enterprise and supplier development and  socio-economic development. 

2.7.1 Quote the primary purpose of the BBBEE Act from the statement  above. (1) 
2.7.2 Identify any THREE pillars of BBBEE mentioned in the statement above. (3) 
2.7.3 Justify the introduction of the BBBEE Act. (4) 
2.7.4 Evaluate the impact of the BBBEE Act on businesses. (6)

[60]

QUESTION 3: BUSINESS VENTURES 
3.1 Identify the form of ownership which is applicable to each of the following  statements below. 

3.1.1. The name ends in (Pty) Ltd. 
3.1.2 This company raises capital by selling shares to the public.
3.1.3 Relies on grants and donations from fundraising as source of capital. 
3.1.4 The Government owns 50% of the shares in this company. (4 x 2) (8) 

3.2 Define the following insurance concepts: 

3.2.1 Excess (2)
3.2.2 Premium (2)

3.3 Explain the importance of insurance to businesses. (5) 
3.4 Distinguish between insurance and assurance. Support your answer by  providing ONE example of each. (6) 
3.5 Read the scenario below and answer the questions that follow. 

Frank wants to invest R25 000 in a fixed deposit for three years. The bank  offers him 15% simple interest or 10% compound interest after the end of three  years.  

3.5.1 Name the type of investment mentioned in the scenario above. (1) 
3.5.2 Analyse the risk factor of the type of investment identified in  QUESTION 3.5.1. (3) 
3.5.3 Calculate the amount that Frank’s investment would be worth at the  end of three years if he chooses the compound interest option. (6) 
3.5.4 Differentiate between simple and compound interest. (4)

3.6 Read the scenario below and answer the questions that follow.

MEDI-AWAY LTD 

Medi-away LTD specialises in removing medical waste from hospitals and  private surgeries. Gavin Moore, the owner of the business, follows all the  organisational rules and policies systematically. He also makes sure that  employees adhere strictly to the rules.   

3.6.1 Identify the type of leadership style that is applicable to the scenario  above. Motivate your answer by quoting from the scenario. (3) 
3.6.2 Evaluate the impact of the leadership style identified in  QUESTION 3.6.1 on leadership and management. (6)

3.7 Discuss the advantages of the transactional leadership style. (6) 
3.8 Describe how the following factors may lead to the success and/or failure of a  personal-liability company: 

3.8.1 Capital (4) 
3.8.2 Management (4)

[60]

QUESTION 4: BUSINESS ROLES 
4.1 Name any THREE stages of team development. (3)
4.2 Explain the advantages of creative thinking in the workplace. (6) 
4.3 Read the scenario below and answer the questions that follow.

TRUE BLUE SPORTS (TBS) 

Roy, the owner of True Blue Sports, does not record all the transactions of his  business as required by South African Revenue Services. He was criticised  for not conducting his business in a professional, responsible and ethical  manner. 

4.3.1 Identify the unethical business practice in the scenario above. Motivate your answer by quoting from the scenario. (3) 
4.3.2 Name any FOUR other unethical business practices. (4) 
4.3.3 Recommend THREE ways in which TBS should conduct business  professionally, responsibly and ethically. (6) 

4.4 Describe THREE criteria for successful teams. (9) 4.5 Explain the differences between ethics and professionalism. (6)
4.6 Read the scenario below and answer the questions that follow. 

GO TRAVELS 

Go Travels is a travel agency that offers transport and accommodation  bookings for international sporting teams. They are finding that more teams are arranging their own bookings and are concerned that they will be out of  business one of these days. The management of Go Travels decided to  request a group of business experts to complete questionnaires to help solve  their problem. 

4.6.1 Identify the problem-solving technique used by Go Travels to solve  their problem. Motivate your answer. (3) 
4.6.2 Explain to Go Travels the advantages of the problem-solving  technique identified in QUESTION 4.6.1. (6) 

4.7 Discuss the benefits of diversity in the workplace. (6) 
4.8 Suggest ways in which the businesses can deal with the following diversity  issues in the workplace: 

4.8.1 Age (4) 
4.8.2 Disability (4)

[60]

QUESTION 5: BUSINESS OPERATIONS 
5.1 Name THREE methods of external recruitment. (3) 
5.2 Outline the placement procedure that should be considered when placing an  employee in his/her new position. (6) 
5.3 Explain the benefits of an induction programme on businesses. (6)
5.4 Read the scenario below and answer the questions that follow. 

REAL CLEAN LTD 

Real Clean LTD has employed Jane as a cleaner. Real Clean LTD signed an employment contract with Jane which regulates their employment  relationship. Real Clean LTD gave Jane the details of the termination of the  employment contract. 

5.4.1 Identify the employer and employee in the employment contract.  Support your answer by quoting from the scenario. (4) 
5.4.2 Mention FOUR aspects that must be included in an employment  contract. (4) 
5.4.3 Advise Jane on the reasons of the termination of the employment  contract. (6) 

5.5 Explain the benefits of a good quality management system. (6)
5.6 Distinguish between quality performance and quality management. (8)
5.7 Read the scenario below and answer the questions that follow. 

JP CLOTHING LTD 

JP Clothing LTD manufactures designer clothing for mothers and toddlers.  Jabu, the owner and manager, knows that the quality of her clothing determines her sales. Customers always speak very highly of the quality of  the clothing.  

5.7.1 Identify the Total Quality Management (TQM) element applicable to  the scenario above. Motivate your answer by quoting from the  scenario. (3) 
5.7.2 Discuss the impact of the TQM element identified in  QUESTION 5.7.1, has on JP Clothing LTD as a large business. (6) 

5.8 Advise businesses on how to apply the PDCA cycle to improve the quality of  products and services. (8)

[60]

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENT 
6.1 Name THREE provisions of the Basic Conditions of Employment Act, 1997  (Act 75 of 1997). (3) 
6.2 Outline any THREE steps in evaluating a strategy. (6) 
6.3 Evaluate the impact of the Compensation for Occupational Injuries and  Diseases Amendment Act (COIDA), 1997 (Act 61 of 1997) on businesses. (6) 

BUSINESS VENTURES 
6.4 Name any THREE factors that should be considered when making investment  decisions. (3) 
6.5 Identify the types of shares represented by EACH statement below. 

6.5.1 These shareholders may receive higher dividends when the company has made larger profits. 
6.5.2 Shares are issued to existing shareholders as compensation for loss  of dividends. 
6.5.3 These shares are issued to shareholders who started the company. (3 x 2) (6) 

6.6 Explain the advantages of co-operatives. (6)

BUSINESS ROLES 
6.7 Read the scenario below and answer the question that follows. 

DEEP EARTH (DE) 

The vision of Deep Earth, one of the world’s largest mining groups, is inspired  by a statement made by the company’s founder. He said, “The aim of this  group have always been to make a profit and a permanent contribution to the  well-being of our employees”.  

Advise Deep Earth on how to contribute towards the well-being of their  employees. (8) 
6.8 State any THREE possible causes of conflict in the workplace. (3)
6.9 Suggest TWO ways in which businesses can deal with difficult people. (4)

BUSINESS OPERATIONS 
6.10 Differentiate between piecemeal and time-related remuneration. (4) 
6.11 Discuss the negative impact of Total Quality Management if it is poorly  implemented by business. (5) 
6.12 Suggest THREE quality indicators of the administration function. (6)

[60] 
TOTAL SECTION B: 180

SECTION C 
Answer ANY TWO questions in this section. 
NOTE: Clearly indicate the QUESTION NUMBER of each question that you  choose. The answer to EACH question must start on a NEW page, for  example QUESTION 7 on a new page, QUESTION 8 on a NEW page, et  cetera. 
QUESTION 7: BUSINESS ENVIRONMENT  

The National Credit Act, 2005 (Act 34 of 2005) (NCA) protects the consumer in the  credit market and make credit and banking services more accessible. The Act helps  to enhance control for a better and more responsible credit practices and industry.  

With reference to the statement above: 

  • Discuss the purpose of the National Credit Act
  • Explain the rights of consumer as outlined in this Act
  • Analyse the impact of this Act on businesses
  • Suggest ways in which businesses can comply with this Act [40]

QUESTION 8: BUSINESS VENTURES 

Ann Watson, the new Chief Executive Officer (CEO) for Main Tech has to prepare  and present the annual financial results to the Management Board.  

Advise Ann on her presentation of the financial results. You must include the  following aspects in your answer: 

  • Outline FOUR aspects that must be considered when designing a multimedia  presentation
  • Evaluate the use of a PowerPoint presentation and posters as suitable visual  aids that may support her presentation
  • Propose ways in which Ann may respond to feedback in a professional manner ∙ Advise Ann on how she can improve her next presentation [40]

QUESTION 9: BUSINESS ROLES  

READ MORE BOOKS (RMB) 

Read More Books (RMB) is a well-established book shop. RMB wants to improve  their image, and contribute towards the well-being of the community and the  environment by focussing on social responsibility. 

RMB contacted you as a business advisor to assist them with their corporate social  responsibility (CSR) and corporate social investment (CSI) challenges. Your advice  must include the following: 

  • Elaborate on the meaning of CSR and CSI
  • Explain the relationship between social responsibility and triple bottom line
  • Evaluate the impact of CSR on businesses
  • Suggest FIVE practical ways in which RMB’s Corporate Social Investment (CSI)  projects can contribute to the community [40] 

QUESTION 10: BUSINESS OPERATIONS 

The financial manager of Wow (Pty) Ltd recently announced his retirement. Peter,  the human resources manager, needs to find a new financial manager. Peter had to compile a job description and job specification of the position before advertising  the position. He has advertised the position on the business’s notice board. He is  also responsible for the arrangements during the selection process. 

Refer to the scenario above and write an essay in which you include the following  aspects: 

  • Explain the differences between job description and job specification
  • Discuss the impact of internal recruitment on businesses
  • Explain the selection procedure that Peter should follow to identify the most  suitable candidate
  • Advise Peter on the purpose of the interview and his role as an interviewer [40] 

TOTAL SECTION C: 80 
GRAND TOTAL: 300

BUSINESS STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

NOTES TO MARKERS 

  1. Candidates’ responses for SECTIONS B and C must be in full sentences; however this would depend on the nature of the question. 
  2. A comprehensive memorandum has been provided but this is by no means  exhaustive. Due consideration should be given to an answer that is correct but: 
    • Uses a different expression from that which appears in the memorandum
    • Comes from another source 
    • Original
    • A different approach is used
      NOTE: SECTION A: 
      • There are no alternative answers.
      • Each question has only one correct answer.
  3. Take note of other relevant answers provided by candidates and allocate  marks accordingly. (In cases where the answer is unclear or indicates some  understanding, part-marks should be awarded, for example, one mark instead  of the maximum of two marks.) 
  4. The word ‘sub-max’ is used to facilitate the allocation of marks within a  question or sub-question. 
  5. The purpose of circling marks (guided by ‘max.’ in the breakdown of marks) on  the right-hand side is to ensure consistency and accuracy in the marking of  scripts. 
  6. In an indirect question, the theory as well as the response must be relevant  and related to the question. 
  7. Incorrect numbering of questions or sub-questions in SECTIONS A and B  will be severely penalised. Therefore, correct numbering is strongly  recommended in all sections.
  8. No additional credit must be given for repetition of facts. Indicate with an R.
  9. Subtotals to questions must be written in the right-hand margin. Circle the  subtotals as indicated by the allocation of marks. This must be guided by ‘max’  in the marking guideline. Only the total for each question should appear in the  left-hand margin next to the appropriate question number.
  10. SECTION B 
    10.1 If, for example, FIVE facts are required, mark the candidate’s FIRST  FIVE responses and ignore the rest of the responses. Indicate by  drawing a line across the unmarked portion or use the word ‘Cancel’.
    NOTE: This only applies to questions where the number of facts is  specified.
    10.2 If two facts are written in one sentence, award the candidate FULL  credit. Point 10.1 above still applies.
    10.3 If candidates are required to provide their own examples/views,  brainstorm this to come up with alternative answers.
    10.4 USE OF THE COGNITIVE VERB AND ALLOCATION OF MARKS 
    10.4.1 Where the number of facts are specified questions that require  candidates to ‘explain/discuss/describe’ will be marked as  follows:
    • Heading 2 marks
    • Explanation 1 mark (or as indicated in the marking  guideline).
      The ‘heading’ and ‘explanation’ are given separately to  facilitate mark allocation.
      10.4.2 If the number of facts is not specified, the candidate must be  informed by the nature of the question and the maximum  marks allocated.
      10.5 ONE mark will be awarded for answers that are easy to recall,  requires one-word answers, or is quoted directly from  scenario/case study. This applies to SECTIONS B and C in  particular.
  11. SECTION C
    11.1 The breakdown of the mark allocation for the essays is as follows:

Introduction

Maximum: 32

Content 

Conclusion

Insight 

8

TOTAL 

40

11.2 Insight consists of the following components: 

Layout/Structure 

Is there an introduction, body, proper paragraphs and a  conclusion? 

2

Analysis and  interpretation

Is the candidate able to breakdown the question into  headings/sub-headings/interpret it correctly to show  understanding of what is being asked? 

2

Synthesis 

Are there relevant decisions/facts/responses made  based on the questions?  
Marks to be allocated using this guide: 

  • No relevant facts: 0 (Two ‘-S’)
  • Some relevant facts facts: 1 (One ‘-S’)
  • Only relevant facts: 2 (No ‘-S’) 

NB:

  1. If there is no ‘-S’ allocated, award the  maximum of TWO (2) marks. 
  2. Where a candidate answers less than 50%  of the question with relevant facts, no ‘-S’  appears in the left margin. In this case  award a maximum of ONE (1) mark.
 

2

 

Originality 

Is there evidence of examples, recency of information,  current trends and developments? 

2

TOTAL FOR INSIGHT: 
TOTAL MARKS FOR FACTS: 
TOTAL MARKS FOR ESSAY (8 + 32)


32
40

NOTE: 

    1. No marks will be awarded for contents repeated from the  introduction and conclusion.
    2. The candidate forfeits marks for layout if the words  INTRODUCTION and CONCLUSION are not stated.
    3. No marks will be allocated for layout, if the headings  ‘Introduction, Conclusion,’ etc. in ‘Insight’ is not supported by an  explanation.
    4. With effect from November 2017 a candidate will be awarded a  maximum of ONE (1) mark for headings/sub-headings and ONE  (1) mark for interpretation (16 or more out of 32 marks). This  applies specifically to the analysis and interpretation part of  insight. 

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

CONTENT 

MARKS

Facts 

32 (max.)

2

2

2

2

TOTAL 

40

11.7 When awarding marks for facts, take note of the sub-maxima indicated,  especially if candidates do not make use of the same subheadings.  Remember headings and sub-headings are encouraged and contribute to  insight (structuring/logical flow/sequencing) and indicate clarity of thought. (See MARKS BREAKDOWN at the end of each question.) 
11.8 If the candidate identifies/interprets the question INCORRECTLY, then  he/she may still obtain marks for layout. 
11.9 If a different approach is used by candidates, ensure that the answers are  assessed according to the mark allocation/subheadings as indicated in the  marking guideline. 
11.10

11.10.1 Award TWO marks for complete sentences. Award ONE mark  for phrases, incomplete sentences and vague answers. 
11.10.2 With effect of from November 2015, the TWO marks will not  necessarily appear at the end of each completed sentence. The  ticks (√) will be separated and indicated next to each fact, e.g.  “Product development is a growth strategy/where businesses  aim to introduce new products √ into existing markets.”√ This will be informed by the nature and context of the question,  as well as the cognitive verb used. 

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

MEMORANDUM 

QUESTION 1  
1.1

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

1.2

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

1.3

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

TOTAL SECTION A: 40

BREAKDOWN OF MARKS

1.1 

20

1.2 

10

1.3 

10

TOTAL 

40

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

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

2.2 Business sectors 

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

2.3 Strategic management process 
OPTION 1 

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

OPTION 2 

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

2.4.1 Roles of SETAs from the scenario 

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

2.4.2 Purpose of SDA 

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

2.5 Defensive strategies 
Retrenchment:√√ 

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

Divestiture/Disinvestment: √√ 

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

Liquidation:√√ 

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

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

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

Right to privacy and confidentiality √√ 

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

Right to fair and honest dealings √√ 

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

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

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

Right to fair/responsible marketing/promotion √√ 

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

Right to fair value/good quality and safety √√ 

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

Right to accountability from suppliers √√ 

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

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

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

Right to equality in the consumer market place√√ 

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

2.7.1 Primary purpose of the BBBEE Act quoted from the scenario

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

2.7.2 Pillars of BBBEE quoted from the scenario 

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

2.7.3 Introduction of the BBBEE Act 

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

2.7.4 Impact of the BBBEE Act on businesses 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

[60]

BREAKDOWN OF MARKS

2.1 

10

2.2 

3

2.3 

6

2.4.1 

3

2.4.2 

6

2.5 

9

2.6 

9

2.7.1 

1

2.7.2 

3

2.7.3 

4

2.7.4 

6

TOTAL 

60

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

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

3.2.2 Premium 

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

3.3 Importance of insurance to businesses 

  •  Transfers the risk from the business/insured √ to an insurance  company/insurer. √ 
  • The transfer of the risk is subject to the terms and conditions √ of the  insurance contract. √ 
  • Protects the business against theft and loss of stock and/or damages√  caused by natural disasters such as floods, storm damage, etc. √ 
  • The business will be compensated √ for insurable losses. √ 
  • Valuable business assets √ e.g. vehicles/equipment/buildings need to  be insured against damage and/or theft. √ 
  • Business is protected against the loss of earnings √ e.g. strikes by  employees result in losses worth millions of rands.√ 
  • Protects the business against deeds of dishonesty √ by employees. √ 
  • Insurance can be taken against the life of partners’ √ in a partnership.√
  • Should the services of key personnel be lost due to accidents or  death, √ the proceeds of an insurance policy can be paid out to the  business/beneficiaries. √ 
  • Replacement costs for damaged machinery/equipment are very  high, √ therefore, insurance can reduce/cover these costs. √ 
  • Protects the business against losses √ due to the death of a debtor. √ - Any other relevant answer related to the importance of insurance to  businesses.
    Max. (5)

3.4 Distinction between insurance and assurance 

INSURANCE 

ASSURANCE

Based on the principle of  indemnity. √√

 Based on the principle of  security/certainty. √√

Is a form of risk management in  which the insured transfers the  cost of potential loss to another  entity for monetary compensation  known as a premium. √√

It is a contract where the  insurer undertakes to pay an  agreed sum of money after a  certain period has expired/on  the death of the person,  whichever occurs first. √√

 It covers a specified event that  may occur. √√

Specified event is certain,  although the time of event is  uncertain. √√

 Applicable to short term  insurance. √√

Usually applicable to long term  insurance. √√

Any other relevant answer related  to the definition of insurance.

Any other relevant answer  related to the definition of  assurance.

Submax. (2) 

Submax. (2)

Example: property  insurance/money in  transit/theft/burglary/fire. √ 
 Any other relevant example of  insurance.

Example: life  insurance/endowment  policies/retirement annuities. √ 
Any other relevant example of  assurance.

Submax. (1) 

Submax. (1)

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

  1. The answer does not have to be in a tabular format but  the distinction must be clear. 
  2. Award a maximum of TWO (2) marks if the distinction  is not clear./Mark either insurance or assurance only. 

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

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

NOTE:

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

3.5.4 Differences between simple and compound interest 

SIMPLE INTEREST 

COMPOUND INTEREST

Calculated on the original/principal  amount √ invested. √

Calculated each period on the  original/principal amount √  including all interest accumulated  during past periods. √

Accumulated interest from prior  periods √ is not used in calculations  for the following period. √

Accumulated interest from prior  periods √ is used in calculations for  the following period. √

Interest charged remain fixed √ for  the full period of investment. √ Money charged by the borrower √  on the fixed amount for a certain  period. √

Based on the concept of adding  accumulated interest to the  original/principal amount √ and  interest is earned on interest. √

Any other relevant answer related to simple interest.

Any other relevant answer related  to compound interest.

Submax. (2) 

Submax. (2)

Max. (4) 
NOTE:

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

3.6.1 Type of leadership style 

  • Bureaucratic √√ (2)

Motivation 

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

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

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

AND/OR 
Negatives/Disadvantages 

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

3.7 Advantages of the transactional leadership style 

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

3.8 Personal-liability company (PLC) 
3.8.1 3.8.2 

Capital

Success 

Failure

  • A large amount of capital can be  raised √ since there is no limit on  the number of shareholders. √ 
  • Large amount of capital enhances √  growth and advancement in  technology for the PLC. √ 
  • The company can access long term  capital √ and therefore has good  long term growth opportunities. √ 
  • Any other relevant answer related to  how capital can contribute to the  success of a PLC.
  • Shares are not freely  transferable, √ so less capital  can be raised/Prohibited by its  Memorandum of Incorporation  (MOI) from offering its shares to  the public, √ which limits the  amount of capital that can be  raised for expansion. √ 
  • Restrictions on transferability of  shares √ may discourage  people from joining the  company. √ 
  • If the company fails √ to attract  financially strong shareholders,  it may hamper its growth  opportunities. √ 
  • Any other relevant answer  related to how capital can  contribute to the failure of a  PLC.

Max. (4) 

Management

Success 

Failure

  • Management is in the capable  hands of a board of directors √ who  have skills, knowledge and  abilities. √ 
  • Shareholders can vote for/appoint √  the most capable directors to  manage their company. √ 
  • Directors are jointly and severally  liable for all company's debts and  liabilities incurred.√ This forces  them to act responsibly and work  harder √ towards the success of a  company. √ 
  • One director may be able to make √  quick decisions. √ 
  • Any other relevant answer related to  how management can contribute to  the success of a PLC.
  • Directors may not have a direct  interest in the company, √  which can hamper growth and  profit maximisation. √ 
  • PLC and its shareholders are  compelled to budget a larger  amount for directors'  remuneration √ to attract the  best directors. √ 
  • Directors' fees increase the  company's expenses √ which  reduces net profit. √ 
  • Any other relevant answer  related to how management  can contribute to the failure of a  PLC.

Max. (4) 

[60]

BREAKDOWN OF MARKS

3.1 

8

3.2 

4

3.3 

5

3.4 

6

3.5.1 

1

3.5.2 

3

3.5.3 

6

3.5.4 

4

3.6.1 

3

3.6.2 

6

3.7 

6

3.8.1 

4

3.8.2 

4

TOTAL 

60

QUESTION 4: BUSINESS ROLES 
4.1 Stages of team development 

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

4.2 Advantages of creative thinking in the workplace 

  •  Starts/Ignites business's process of problem solving, √ as there are  usually more problems and not enough solutions. √ 
  • Better/Unique/Unconventional ideas/solutions √ is generated. √ 
  • May give a business a competitive advantage √ if unusual/unique  solutions/ideas/strategies are implemented. √ 
  • Complex business problems √ may be solved. √ 
  • Productivity increases √ as business's management/employees may  quickly generate multiple ideas to utilise time and money more  effectively. √ 
  • Managers/Employees have more confidence √ as they can live up to  their full potential. √ 
  • Managers will be better leaders √ as they will be able to handle/manage  change(s) positively and creatively. √ 
  • Managers/Employees can develop a completely new outlook, √ which  may be applied to any task(s) they may do. √ 
  • Leads to more positive attitudes √ as managers/employees feel that they  have contributed towards problem solving. √ 
  • Improves motivation √ amongst staff members. √ 
  • Managers/Employees have a feeling of great accomplishment √ and they  will not resist/obstruct once they solved a problem/contributed towards  the success of the business. √ 
  • Business's management/employees may keep up √ with fast changing  technology. √ 
  • Stimulates brain function of employees/managers, √ as they are  continuously pushed out of their comfort zone. √ 
  • Creativity may lead to new inventions √ which improves the general  standard of living. √ 
  • Any other relevant answer related to the advantages of creative thinking in the workplace.
    Max. (6) 

4.3.1 Unethical business practice 

  •  Tax evasion√√ (2)

Motivation 

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

4.3.2 Unethical business practices 

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

4.3.3 Professional, responsible, ethical and effective business practice

  • True Blue Sports should not start other business ventures at the  expense of others. √√ 
  • They should pay fair wages. √√ 
  • All employees should be treated equally. √√ 
  • Appoint honest/trustworthy accountants with a good reputation. √√
  • Staffing and other processes should be open and transparent. √√
  • Draw up a code of ethics. √√ 
  • Managers must set the tone for professional/responsible/ethical  behaviour. √√ 
  • There must be adequate internal control systems in place. √√ 
  • There should be honesty in all relationships/transactions in the  business. √√ 
  • Employees should understand ethical business practices through  effective communication/training. √√ 
  • Seminars on business ethics should be held for managers and the  employees to help them understand the importance of the ethical work  culture of the business. √√ 
  • Management must consider the impact of their decisions/actions on all  stakeholders. √√ 
  • Regulations applicable to environmental protection should be taken  seriously. √√ 
  • They should charge fair prices in rural areas. √√ 
    Any other relevant recommendation related to ways in which TBS  should conduct business professionally, responsibly and ethically.
    NOTE: Mark the first THREE (3) only.
    (3 x 2) (6) 

4.4 Criteria for successful teams 
Interpersonal attitudes and behaviour √√ 

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

Shared values/Mutual trust and support √√ 

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

Communication √√ 

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

Co-operation/Collaboration √√ 

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

NOTE: 

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

4.5 Difference between ethics and professionalism 

ETHICS 

PROFESSIONALISM

  • Set of standards √ of expected  behaviour. √ 
  • Set of values √ that are  morally acceptable. √
  • Knowledge and skills √ of a  profession. √
  •  Acceptable √ to society/group/  community. √
  • Used for the good √ of the  employees/individuals. √
  • Forms part of the employees' √ code of conduct. √
  •  Apply a code of conduct √ set by the  profession or business. √
  • Focus is on developing a  moral compass √ to use in decision-making. √
  • Focus is on upholding the reputation √ of the business/ profession. √
  • Seeks to avoid harm √ while  promoting benefit to others. √
  • Conforms to a specific standard in  terms of quality and competence √  while also being legal and ethical. √
  • Any other relevant answer  related to ethics.
  •  Any other relevant answer related to  professionalism

Submax. (3) 

Submax. (3)

NOTE:

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

4.6.1 Problem-solving technique 

  •  Delphi technique √√ (2) 

Motivation 

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

4.6.2 Advantages of the Delphi technique 

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

4.7 Benefits of diversity in the workplace 

  •  Workforce diversity improves the ability of a business √ to solve  problems/innovate/ cultivate diverse markets. √ 
  • Employees value each other's diversity √ and learn to  connect/communicate across lines of difference.√ 
  • Diversity in the workforce improves √ morale/motivation. √ 
  • Employees demonstrate greater loyalty to the business √ because they  feel respected/accepted/understood. √ 
  • A diversified workforce can give businesses a competitive advantage √  as they can render better services. √ 
  • Being respectful of differences/demonstrating diversity √ makes good  business sense/improves profitability. √ 
  • Diverse businesses ensure that its policies/practices √ empower every  employee to perform at his/her full potential. √ 
  • Customers increasingly evaluate businesses √ on how they manage  diversity in the workplace. √ 
  • Employees from different backgrounds √ can bring different  perspectives to the business. √ 
  • A diversified workforce stimulates debate √ on new and improved ways  of getting things done. √ 
  • Employees represent various groups √ and are therefore better able to  recognise customer needs and satisfy consumers. √ 
  • Businesses with a diverse workforce are more likely to have a good  public image √ and attract more customers. √ 
  • Any other relevant answer related to the benefits of diversity in the  workplace.
    Max. (6) 

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

  •  Promotions should not be linked to age, but rather to specific skills  set. √√ 
  • A business must not employ children aged 15 or younger. √√ 
  • The ages of permanent workers should vary from 18 to 65 to include all  age groups. √√ 
  • A business may employ a person who is older than the normal  retirement age provided that person is the most suitable candidate. √√
  • Businesses must encourage older employees to help young employees  to develop their potential. √√ 
  • Young employees must be advised to respect and learn from older  employees. √√ 
  • The business should encourage employees to be sensitive to different  perspectives of various age groups. √√ 
  • Any other relevant answer related to the way in which businesses can deal with age as a diversity issue in the workplace.
    Max. (4)

4.8.2 Disability 

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

[60]

BREAKDOWN OF MARKS

4.1 

3

4.2 

6

4.3.1 

3

4.3.2 

4

4.3.3 

6

4.4 

9

4.5 

6

4.6.1 

3

4.6.2 

6

4.7 

6

4.8.1 

4

4.8.2 

4

TOTAL 

60

 QUESTION 5: BUSINESS OPERATIONS 
5.1 Methods of external recruitment 

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

NOTE:

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

5.2 Placement procedure 

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

5.3 Benefits of induction programme 

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

5.4.1 Employment contract 

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

Motivation 

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

5.4.2 Aspects of an employment contract 

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

5.4.3 Reasons for terminating an employment contract 

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

5.5 Benefits of a good quality management system 

  •  Effective customer service will be rendered, √ resulting in increased  customer satisfaction. √ 
  • Time and resources √ are used efficiently. √ 
  • Productivity increase √ through proper time management √ and using high  quality resources. √ 
  • Products and services are constantly improved, √ resulting in greater  customer satisfaction. √ 
  • Vision and mission √ may be achieved. √ 
  • The business may achieve a competitive advantage √ over its  competitors. √ 
  • Continuous training √ will continuously improve the quality of employees’  skills and knowledge. √ 
  • Employers and employees will have a healthy working relationship, √  which results in happy workers. √ 
  • Increased market share √ and profitability. √ 
  • Any other relevant answer related to the benefits of a good quality control  system.
    Max. (6) 

5.6 Distinction between quality performance and quality management 

QUALITY PERFORMANCE 

QUALITY MANAGEMENT

Total performance of each  department measured √ against specified standards. √

 It is techniques/tools√ used to  design/improve the quality of a  product.√

Can be obtained if all departments  work together√ towards the same  quality standards. √

 Can be used for accountability√  within each of the business  function.√

Quality is measured√ through  physical product/statistical output  of processes/surveys of the users  and/or buyers of goods/services.√

Aims to ensure that the quality of  goods/services√ is consistent√/ Focuses on the means√ to  achieve consistency. √

Any other relevant answer related  to quality performance.

Any other relevant answer related  to quality management.

Submax. (4) 

Submax. (4)

NOTE: 

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

5.7.1 TQM element 

  •  Total Client/customer satisfaction √ (2)

Motivation 

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

5.7.2 Total client/customer satisfaction 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

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

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

NOTE:

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

[60]

BREAKDOWN OF MARKS

5.1 

3

5.2 

6

5.3 

6

5.4.1 

4

5.4.2 

4

5.4.3 

6

5.5 

6

5.6. 

8

5.7.1 

3

5.7.2 

6

5.8 

8

TOTAL 

60

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

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

NOTE:

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

6.2 Steps of strategy evaluation 

  • Examine the underlying basis of a business strategy. √√
  • Formulate strategies to meet objectives, favourably. √√ 
  • Implement strategies using action plans, √√ etc. 
  • Look forward and backwards into the implementation process. √√ 
  • Compare the expected performance with the actual performance. √√
  • Measure business performance in order to determine the reasons for  deviations and analyse these reasons. √√ 
  • Take corrective action so that deviations may be corrected. √√ 
  • Set specific dates for control and follow up. √√
  • Draw up a table of the advantages and disadvantages of a strategy. √√
  • Decide on the desired outcome. √√
  • Consider the impact of the strategic implementation in the internal and  external environments of the business. √√ 
  • Any other relevant answer related to the steps in evaluating a strategy.
    NOTE: Mark the first THREE (3) only.
    (3 x 2) (6) 

6.3 Impact of COIDA on businesses 
Positives/Advantages 

  •  Promotes safety √ in the workplace. √ 
  • Creates a framework √ for acceptable employment practices/safety  regulations. √ 
  • Supply administrative guidelines/mechanisms √ for dealing  with/processing claims. √ 
  • Eliminates time and costs spent √ on lengthy civil court proceedings. √
  • Covers all employees at the workplace √ if both parties meet all the  necessary safety provisions in the Act. √ 
  • Employees are compensated financially for any injury/disability √ resulting  from performing their duties at their workplace. √ 
  • In the event of the death of an employee as a result of a work-related  accident/ disease, √ his/her dependant(s) will receive financial support. √ 
  • Employers are protected from financial burden should an accident occur in  the workplace √ provided that the employer was not negligent. √
  • Employees do not have to contribute √ towards this fund.√ 
  • Employees receive medical assistance √ provided there is no other party  involved. √ 
  • Any compensation to an employee/the family √ is exempt from income  tax. √ 
  • The processes √ are relatively simple. √ 
  • Makes businesses more socially responsible √ as they cannot just employ  workers at random in dangerous working conditions. √ 
  • Workers are treated with dignity/respect √ as businesses view them as  valuable assets and not just as workers. √ 
  • Any other relevant answer related to the positive impact of COIDA on  businesses. 

AND/OR 
Negatives/Disadvantages 

  •  Claiming processes/procedures √ can be time consuming. √ 
  • Processes/ Procedures required by this Act may be costly √ as paperwork  places an extra administrative burden on businesses. √ 
  • Employers have to register all their workers/make annual contributions to  COIDA, √ which may result in cash flow problems. √ 
  • Employers may be forced to pay heavy penalties √ if they are found guilty  of negligence/not enforcing safety measures. √ 
  • Workers who are temporarily/permanently employed in foreign countries √  are not covered. √ 
  • Domestic/Military workers √ are not covered. √ 
  • Any other relevant answer related to the negative impact of COIDA on  businesses.
    Max. (6) 

BUSINESS VENTURES 
6.4 Factors to consider when making investment decisions 

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

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

6.6 Advantages of co-operatives 

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

BUSINESS ROLES 

6.7.1 Well-being of employees 

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

6.8 Causes of conflict in the workplace 

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

6.9 Dealing with difficult people 
OPTION 1 

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

AND/OR 
OPTION 2 (Personalities) 

Type of personality 

Strategy to deal with a personality

Complainer √ 

  • Listen to the complaints but do not acknowledge  them. √
  • Interrupt the situation and move to the problem solving process as soon as possible. √

Indecisive √ 

  • Guide them through alternatives. √ 
  • Stay in control and emphasise the importance of  making a decision. √ 
  • Help them make the decision or solve the  problem. √

Over agree √ 

  • Be firm and do not let them make promises that  they cannot keep. √ 
  • Follow up on their actions. √

Negativity √ 

  • Be firm with them and do not let them draw you  into their negativity. √ 
  • Listen to them but do not agree with them. √

Expert √ 

  • Be firm and assertive. √ 
  • Do not accuse them of being incorrect and do not  get caught in their game. √ 
  • Know your facts. √

Quiet √ 

  • Do not fill their silence with words. √
  • Wait for their response. √ 
  • Prompt them through the process so that they  give input. √ 
  • Restrict the time of the discussion. √

Aggressive √ 

  • Allow them time to speak and blow off. √ 
  • Be firm, but do not attack them. √ 
  • Do not allow them to be hostile towards others. √

NOTES (applicable to OPTION 2): 

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

BUSINESS OPERATIONS 
6.10 Remuneration 

PIECEMEAL/PIECE RATE/PIECEWORK

TIME-RELATED

  • Remunerated for a specific piece of  work, √ regardless of hours worked/  time taken to produce items. √
  •  Remunerated for the time/  period worked, √ usually monthly  or weekly. √
  • Calculation based on √ the piece of  work/number of items produced. √
  • Calculation based on √ an  agreed hourly rate. √
  • Any other relevant answer related to  piecemeal/piece rate/piece work  remuneration.
  • Any other relevant answer  related to time related  remuneration.

Submax. (2) 

Submax. (2)

NOTE: 

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

6.11 Impact of TQM if poorly implemented 

  • Setting unrealistic deadlines √ that may not be achieved. √ 
  • Employees may not be adequately trained √ resulting in poor quality  products. √ 
  • Decline in productivity, √ because of stoppages. √
  • Businesses may not be able to make necessary changes √ to satisfy the  needs of customers. √ 
  • The reputation of the business √ may suffer because of faulty goods. √ 
  • Customers will have many alternatives to choose from √ and the impact  could be devastating to the business. √ 
  • Investors might withdraw investment, √ if there is a decline in profits. √
  • Bad publicity √ due to poor quality products supplied. √
  • Decline in sales, √ as returns from unhappy customers' increase. √
  • High staff turnover, √ because of poor skills development. √
  • Undocumented quality control systems/processes √ could result in error or  deviations from pre-set quality standards. √
    Any other relevant answer related to the negative impact of TQM if poorly  implemented.
    Max. (5)

6.12 Quality indicators of the administration function 

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

[60] 

BREAKDOWN OF MARKS

6.1 

3

6.2 

6

6.3 

6

6.4 

3

6.5 

6

6.6 

6

6.7 

8

6.8 

3

6.9 

4

6.10 

4

6.11 

5

6.12 

6

TOTAL 

60

TOTAL SECTION B: 180

SECTION C 
QUESTION 7: BUSINESS ENVIRONMENT 
7.1 Introduction 

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

7.2 Purpose of the National Credit Act 

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

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

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

7.4 Impact of NCA on business 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

7.5 Compliance with NCA 

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

7.6 Conclusion 

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

[40] 

BREAKDOWN OF MARKS 

Details 

Maximum 

Total

Introduction 

2

Max. 32

Purpose of the National Credit Act 

12

Rights of consumer in the NCA 

10

Impact of NCA on businesses 

14

Compliance 

10

Conclusion 

2

INSIGHT

   

Layout 

 

2

Analysis, interpretation 

 

2

Synthesis 

 

2

Originality/Examples 

 

2

TOTAL MARKS 

 

40

*LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all.

QUESTION 8: BUSINESS VENTURES 
8.1 Introduction 

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

8.2 Aspects to be considered when designing a multimedia presentation 

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

8.3 Evaluate visual aids 
PowerPoint presentation / Data projection 
Positives/Advantages 

  • Graphic programmes have the capacity to convey ideas √ and support what  the presenter says. √
  • Easy to combine √ with sound/video clips. √ 
  • Simple/Less cluttered slides √ may capture the interest of the audience. √
  • Video clips can provide variety √ and capture the attention of the audience. √
  • Variation of colour/background/sound immediately captures the attention of  the audience √ and retains their interest throughout the presentation. √
  • Slides should only be used √ where they can enhance the facts or summarise  information. √ 
    Any other relevant answer related to the positive evaluation of a data  projector/PowerPoint presentation.
    AND/OR

Negatives/Disadvantages 

  • Unprofessional handling of the data projector/PowerPoint presentation  material √ may lead to irritation/may result in the audience losing interest. √
  • Less effective √ to people with visual impairments. √
  • Simply reading off the slides √ makes a presentation boring/meaningless. √
  • Unable to show slides √ without electricity/data projector. √
    Any other relevant answer related to the negative evaluation of a data  projector/Power-point presentation.
    Submax. (8) 

Posters 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

8.4 Ways to respond to feedback in a professional manner 

  • Ann must stand throughout the feedback session. √√ 
  • Be polite, confident and courteous/humorous. √√ 
  • Listen and then respond. √√ 
  • Make sure that you understand the question/s before responding. √√
  • Acknowledge good questions. √√ 
  • Rephrase questions if uncertain. √√ 
  • Do not get involved in a debate. √√ 
  • Do not avoid the question, if you do not know the answer, refer the question  to the audience or the employees √√ /Rectify if incorrect answers are  given. √√ 
  • Address the whole audience and not only the person asking the  question. √√
  • Provide feedback as soon as possible after the observed event. √√
  • Be direct, honest, sincere. √√
  • She must use simple language and support what you say with an example/ keep the answer short and to the point. √√
  • Presenter must encourage questions from the audience. √√ 
  • Do not allow any one member of the audience to dominate the discussion.√√
  • Note/write down the questions asked to be able to respond correctly. √√
  • Ann should address questions in an orderly manner. √√ 
    Any other relevant answer related to how Ann may respond to feedback in a  professional manner.
    Max. (12) 

8.5 Recommendations for improvement 

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

8.6 Conclusion 

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

[40]

BREAKDOWN OF MARK ALLOCATION 

Details 

Maximum 

Total

Introduction 

2

Max. 32

Aspects of designing a multimedia 

8

Use of visual aids 

16

Ways to respond to feedback in a  

professional manner 

12

Recommendations for improvement 

10

Conclusion 

2

INSIGHT

   

Layout 

 

2

Analysis, interpretation 

 

2

Synthesis 

 

2

Originality/Examples 

 

2

TOTAL MARKS 

 

40

*LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all.

QUESTION 9: BUSINESS ROLES 
9.1 Introduction 

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

9.2 CSR and CSI 
Corporate social responsibility/CSR 

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

Corporate social investment/CSI 

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

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

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

People/Social √√ 

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

Planet/Environment √√ 

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

9.4 Impact of CSR on businesses 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

9.5 Ways in which CSR projects can contribute to the community

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

NOTE:

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

9.6 Conclusion 

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

[40] 

BREAKDOWN OF MARK ALLOCATION 

DETAILS 

MAXIMUM 

TOTAL

Introduction 

2

Max. 32

CSR and CSI 

8

Relationship between social responsibility and  triple bottom line 

12

Impact of CSR on businesses 

16

Ways in which CSR project contribute 

10

Conclusion 

2

INSIGHT

   

Layout 

 

2

Analysis, interpretation 

 

2

Synthesis 

 

2

Originality/Examples 

 

2

TOTAL MARKS 

 

40

*LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all.

QUESTION 10: BUSINESS OPERATIONS 
10.1 Introduction 

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

10.2 Differences between job description and job specification 

JOB DESCRIPTION 

JOB SPECIFICATION

  • Describe duties/responsibilities √ of a  specific job √/Summary √ of the  nature/type of the job. √
  • Specifies the minimum acceptable  personal  qualities/skills/qualifications √  needed for the job. √
  • Written description of the job √ and its  requirements. √
  • Written description of specific  qualifications/skills/experience √  needed for the job. √
  • Describe key performance areas/tasks  for a specific job. √ e.g. job  title/working conditions/relationship of  the job with other jobs in the business, √ etc.
  • Describes key requirements for the  person who will fill the position, √ e.g. formal qualifications/willingness to  travel/work unusual hours, √ etc.
  • Any other relevant answer related to  job description.
  • Any other relevant answer related  to job specification.

Submax. (4) 

Submax. (4)

Max. (8) 
NOTE:

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

10.3 Internal recruitment 
Positives/Advantages 

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

AND/OR 
Negatives/Disadvantages 

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

10.4 Selection procedure 

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

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

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

Role of the interviewer 

  • Peter must develop a core set of questions based on the required skills,  knowledge and ability required. √√ 
  • Check the application and verify the CV for anything that may need to be  explained. √√ 
  • Book and prepare the venue for the interview. √√ 
  • Set the interview date and ensure that all interviews take place on the  same date, if possible. √√ 
  • Inform all shortlisted candidates about the date/place of the interview. √√
  • Notify all panel members conducting the interview about the date/place of  the interview. √√ 
  • Allocate the same amount of time to each candidate. √√ 
  • Introduce members of the interviewing panel to each  candidate/interviewee. √√ 
  • He should make the interviewee feel at ease. √√ 
  • Explain the purpose of the interview to the panel and the interviewee. √√
  • Do not misinform/mislead the interviewee. √√ 
  • Avoid discriminatory/controversial types of questions, e.g. asking a female  candidate about family planning/having children. √√ 
  • Provide an opportunity for the interviewee to ask questions. √√ 
  • Peter must close the interview by thanking the interviewee for attending  the interview. √√ 
    Any other relevant answer related to the role of the interviewer.
    Submax. (6)
    Max. (12)

10.6 Conclusion 

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

[40] 

BREAKDOWN OF MARK ALLOCATION 

Details 

Maximum 

Total

Introduction 

2

Max. 32

Job description and job specification 

8

Internal recruitment 

12

Selection procedure 

14

Purpose of interview and role of the interviewer 

12

Conclusion 

2

INSIGHT

   

Layout 

 

2

Analysis, interpretation 

 

2

Synthesis 

 

2

Originality/Examples 

 

2

TOTAL MARKS 

 

40

*LASO – For each component: 

  • Allocate 2 marks if all requirements are met.
  • Allocate 1 mark if only some of the requirements are met.
  • Allocate 0 marks where requirements are not met at all. 

TOTAL SECTION C: 80 
GRAND TOTAL: 300

GEOGRAPHY
GRADE 12
PAPER 1  
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

ANNEXURE

FIGURE 1.1: FEATURES ASSOCIATED WITH A COASTAL LOW 


[Source: Adapted from www.1stweather.com] 

FIGURE 1.2: DRAINAGE BASIN FEATURES 
DRAINANGE BASIN FEATURES
[Source: Adapted from http://www.google.co.za]

FIGURE 1.3: A TROPICAL CYCLONE IN ITS MATURE STAGE 
TROPICAL CYCLONE
[Source: Adapted from http://www.google.co.za/images

FIGURE 1.4: VALLEY IN THE NORTHERN HEMISPHERE
VALLEY IN THE NORTHERN HEMIS
 [Source: Adapted from Windows of the world]
FIGURE 1.5: DRAINAGE PATTERNS 
DRAINAGE PATTERNS
[Source: http://www.google.co.za/images
FIGURE 1.6: RIVER IN A HIGHLYING AREA 
RIVER IN A HIGHFLYING AREA
 [Source: http://www.google.co.za/images
FIGURE 2.1: AIR PRESSURE SYSTEMS IN SOUTH AFRICA 
AIR PRESSURE SYSTEMS IN SA
[Source: http://www.google.co.za/images]  
FIGURE 2.2: FLOW PATTERNS OF RIVERS 
FLOW PATTERNS OF RIVERS
[Source: http://www.google.co.za/images]
FIGURE 2.3: SYNOPTIC WEATHER MAP AND WEATHER FORECAST FOR CAPE TOWN
SYNOPTIC WEATHER MAP OF CAPE TOWN
[Source: Adapted from Study Master Geography]
FIGURE 2.4: CLIMATIC CONTRASTS BETWEEN URBAN AND RURAL AREAS 

Climatic element   Differences between urban  and rural areas  
Insolation   13-17% less than the surrounding rural areas 
Air temperature   
(a) Annual mean 0,5 – 1,0 °C higher than in the surrounding rural areas 
(b) Winter minimum  1,0 – 2,0 °C higher than in the surrounding rural areas 
Relative humidity  2–3% less than in surrounding rural areas 
Precipitation   
(a) Annual mean  5–10% more than in surrounding rural areas 
(b) Thunderstorms  More than over surrounding rural areas 
Cloudiness 5–10% more than in surrounding rural areas 

[Source: New Windows on the World] 
FIGURE 2.5: A MEANDERING RIVER 
A MEANDEING RIVER
[Source: Physical Geology – Earth Revealed/google images]
FIGURE 2.6: RIVER CAPTURE 
RIVER CAPTIRE
[Source: Adapted from www.orangesenqurak/org/river aspx] 
FIGURE 3.1: BUSINESS DISTRICTS 
BUSINESS DISTRICTS
[Source: Adapted from X-kit Grade 12]
FIGURE 3.3: SETTLEMENT PATTERN 
SETTLEMENT PATTERN
[Source: http://www.google.co.za/images
FIGURE 3.4: TRAFFIC CONGESTION  
TRTAFFIC CONGETION
  [Source: http://www.google.co.za/images]
FIGURE 3.5: KEY SECTORS OF SOUTH AFRICA’S ECONOMY 
KEY SECTORS OF SA ECONOMY
[Source: Statssa.co.za] 
FIGURE 3.6: SOUTH WESTERN CAPE INDUSTRIAL REGION 
SOUTH WESTERN
[Source: Focus on Geography/Grade 12 – Earl, et al]
FIGURE 4.2: TYPES OF SECTORS OF EMPLOYMENT IN SOUTH AFRICA A B 
LABOR SECTORS IN SA
[Source: http://www.google.co.za/images
FIGURE 4.3: LAND RESTITUTION 

The Macleantown case study on land restitution 

The benefits of land restitution appear to be more symbolic than material. 
Our study showed that beneficiaries remain poor 17 years after being given their land back. Most  are unable to generate a livelihood from agriculture and depend on state social grants for  survival. Beneficiaries were able to rejoice at having their land back, but they have been unable  to escape poverty.This is particularly worrying since one of the main motives for pursuing land  reform was to create self-sufficient farmers able to generate a decent livelihood from their  land.Our findings show that land beneficiaries have been virtually neglected by the government.  They have a strong desire to grow crops but lack the support needed to start ploughing.One  respondent said she could not farm because she did not have money to fence her yard or keep  livestock. Farming would therefore be a waste of time as cattle would walk onto her land and eat  her crops. 

[Source: Mzingaye Brilliant Xaba and Monty J. Roodt / 9 December 2016 00:05]

FIGURE 4.4: LAND USE ZONE IN AN URBAN AREA 
LAND USE IN SA
[Source: http://www.google.co.za/images/urban landuse] 
FIGURE 4.5: MANUFACTURING IN SOUTH AFRICA 

Manufacturing in South Africa 

South Africa has developed an established, diversified manufacturing base that has shown its  resilience (staying power) and potential to compete in the global economy.The manufacturing  sector provides a locus for stimulating the growth of other activities, such as services, and  achieving specific outcomes, such as employment creation and economic empowerment. This  platform of manufacturing presents an opportunity to significantly accelerate the country’s growth and development 

[Source: www.brandsouthafrica.com]

FIGURE 4.6: THE MAPUTO DEVELOPMENT CORRIDOR 

The Maputo Development Corridor is one of the most ambitious and exciting initiatives  undertaken within the Southern African region, stretching from Gauteng in South Africa, to  Maputo in Mozambique. The corridor includes the Mpumalanga province with its rich minerals  and aesthetic beauty. 

MAPUTO DEVELOPMENT CORRIDOR

[Source: Extract adapted from News 24]

 

GEOGRAPHY
GRADE 12
PAPER 2 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

MEMORANDUM

SECTION A 
QUESTION 1: MULTIPLE-CHOICE QUESTIONS 
1.1 C ✔
1.2 C ✔
1.3 B✔
1.4 D✔
1.5 C✔
1.6 B✔
1.7 B ✔
1.8 A ✔
1.9 B ✔
1.10 D ✔
1.11 B✔
1.12 B✔
1.13 A✔
1.14 C✔
1.15 C ✔ (15 x 1) (15)

[15]

SECTION B 
QUESTION 2: MAPWORK CALCULATIONS AND TECHNIQUES  
2.1 FIGURE 2.1 represents an incomplete cross section between points 4 and 5 on the orthophoto map. 

2.1.1 Complete the cross section. 
2.1.2 Label the position of spot height 203. 
LABELLED
Marks allocated to: 

  • Outline of slope finished. ✔
  • Spot height 203 (203 m) within the dotted lines. ✔  
    (2 x 1) (2) 

2.1.3 Why is there no intervisibility between points 4 and 5 on the cross  section? 

  • There is an obstruction between 4 and 5. ✔
  • There is higher land (spot height 203) which blocks 4 from 5 from  being seen. ✔
    [Any ONE] (1 x 1) (1)

2.1.4 Calculate the vertical exaggeration of the cross section.  Show ALL calculations. Marks will be awarded for calculations. 
Formula: VE =     Vertical scale (VS)   
                        Horizontal scale (HS)

  •  VS = 5 mm = 5 (x 1 000) [1 : 1 000] 
     VS  = 1: 1 000 ✔
    HS = 1 ∶10 000 ✔
     VE =   1    ÷       1       
            1 000      10 000 
    = (1/1×10/1) ✔ OR (1 /1 000 × 10 000 / 1) ✔
    = 10 / 
    = 10 times ✔
    (Learner must indicate unit.) 
    (4 x 1) (4) 

2.1.5 Provide ONE reason why the vertical scale in a cross section is  exaggerated (made bigger). 

  • It allows for the relief features to be seen more clearly. ✔
  • If the vertical scale is not exaggerated, the relief feature will be flat. ✔
    [Any ONE] (1 x 1) (1)

2.2
2.2.1 Calculate the average gradient between the trigonometric station  (block G5) to trigonometric station (block H2) on the topographic map.  Show ALL calculations. Marks will be awarded for calculations. 
Formula: Gradient =      Vertical interval (VI)         
                                 Horizontal equivalent (HE)  

  • VI = 726,5 m – 200,3 m                                VI = 726,5 m – 200,3 m  
      = 526,2 m ✔                                                       = 526,2 m ✔
    HE = 7,5 cm x 500                 OR                       HE = 7,5 cm x 50 000
                                   [Range 7,4 – 7,6]                                    500
    = 3 750 m ✔                                                            = 3 750 m ✔
                            [Range 3 700 – 3 800]
     G = (526,2 /3 750 )✔                                        G = (526,2 /3 750 )✔
    [Mark allocated for substitution] 
    = 1/ 7,1                                                                  = 1 / 7,1 
    = 1 : 7,1 / 1 in 7,1✔                                          = 1 : 7,1 / 1 in 7,1 ✔
                             [Range 1 : 7,0 – 1 : 7,3]
    (4 x 1) (4) 

2.2.2 With reference to the answer in QUESTION 2.2.1, is the gradient a  true reflection of the actual landscape?  
Give a reason for your answer. 
No. ✔
Reason: 

  • We are calculating the average gradient and not the actual  gradient. ✔
  • From trigonometric station 94 to trigonometric station 138 there is a  sharp change in gradient from mountainous area to a flat plain. ✔
    [Any ONE] (2 x 1) (2)

2.3
2.3.1 Refer to the demarcated area in RED on the topographical map,  which represents the orthophoto map. Use the demarcated area to  calculate the surface area of the orthophoto map in km². Show ALL  calculations. Marks will be awarded for calculations.  
Formula: Area = length (L) x breadth (B)  

  • Length = 9,3 cm ✔ x 0,5 = 4,65 km (Range 4,6 – 4,7) 
    (9,2 cm – 9,4 cm)
    [Accept other formulas to calculate length.] 
    Breadth = 7,4 cm ✔ x 0,5 = 3,7 km (Range 3,65 – 3,75) 
     (7,3 cm – 7,5 cm)
    [Accept other formulas to calculate breadth.]
    = 4,65 km ✔ x 3,7 km ✔
    = 17,2 km² ✔
    Range: 16,7 km² – 17,7 km²
    [Accept other calculation methods.]
    (5 x 1) (5) 

2.3.2 Explain why the area covered by the orthophoto on the topographic  map looks smaller than the orthophoto itself. 

  • The orthophoto map has a larger scale ✔
  • Scale of orthophoto map is 5 times larger than the topographic  map✔
  • Scale of orthophoto map is 1 : 10 000 and the scale of the topographic  map is 1 : 50 000 ✔
    [Concept] (1 x 1) (1) 

[20]

SECTION C 
QUESTION 3: APPLICATION AND INTERPRETATION 
3.1 Refer to the graph below, the information on page 3 and the topographical  map to answer the questions that follow.  

 

[Source: https://en.climate-data.org/location/23402
3.1.1 Calculate the average monthly rainfall (mm) for Citrusdal. 

  • 315 ÷ 12 = 26,25 mm ✔   (1 x 1) (1) 

3.1.2 State the type of climate that this type of rainfall is associated with. 

  • Mediterranean climate ✔ (1 x 1) (1) 

3.1.3 Given the above rainfall data (graph) and Citrusdal’s location,  suggest ONE reason why there are many non-perennial streams in  the area. 

  • Long dry summer – below average rainfall ✔
  • Location on the SW coast dominated by cold Benguela current 
  • Area experiences seasonal rain ✔
    [Any ONE] (1 x 1) (1)

3.2 Grade 12 learners on a field trip to Citrusdal, discovered that the temperature  at 12:00 (midday) at the caravan park labelled A, is a few degrees lower than  the temperature near the industrial area labelled G, on the topographic map.  Give reasons for the difference in temperature between the caravan park  and the industrial area.  
Caravan park is colder because: 

  • It is situated on the outskirts/far from the build-up area ✔✔
  • It is close to water/Oliphant’s River. ✔✔
  • There is a lot of vegetation nearby therefore more transpiration and lower  temperatures. ✔✔
  • There is less pollution or less activities that cause pollution. ✔✔  

Industrial area is warmer because: 

  • It is situated in a built-up area – generating own heat. ✔✔
  • There is less vegetation nearby. ✔✔
  • There is more pollution (dome) such as dust and soot that absorb and retain  heat for longer. ✔✔ 
    [Any TWO]  (2 x 2) (4) 

3.3 Provide TWO pieces of evidence to justify that the site of the Oliphant’s River  valley, situated on the west of the topographic map, is ideal for agriculture. 

  • Flat land / gentle slope / contour lines far apart ✔✔
  • Close to water source / irrigation possible ✔✔
  • Fertile soil / arable land ✔✔
    [Any TWO] (2 x 2) (4) 

3.4 There are numerous dams in the agricultural region of the area covered by  the topographic map. Of what importance are these dams to the farmers  during the dry seasons? 

  • Irrigation of cultivated lands / orchards and vineyards ✔✔
  • Availability of water to live-stock ✔✔
  • Water for domestic use ✔✔ 
    [Any ONE] (1 x 2) (2) 

3.5 Refer to the Oliphant’s River in block I2 on the topographic map. 
3.5.1 Identify the stream channel pattern. 

  • Braided stream ✔ (1 x 1) (1)

3.5.2 Provide evidence from the topographic map to support your answer  to QUESTION 3.5.1. 

  • Gentle gradient slows river velocity resulting in deposition. ✔✔
  • The orchards on the sandbanks indicate that the sandbanks are  above the level of water. ✔✔
  • Shallow river splits into smaller rivulets (streams) around  sandbanks. ✔✔
    [Any TWO] (2 x 2) (4) 

3.6 Refer to the town of Citrusdal. 
3.6.1 Is Citrusdal a recreation, mining or gap town? 

  • Gap town ✔(1 x 1) (1) 

3.6.2 Give evidence from the topographic map to support your answer. 

  • Situated between mountain ranges. ✔✔
  • Situated between the Cederberg and Oliphant mountains. 
    [Any ONE] (1 x 2) (2) 

3.6.3 Explain the economic advantage of Citrusdal’s’ location.  

  • Tourism - Western Cape Fold mountains / Natural hot springs found  there. ✔✔
  • Agriculture – Citrus farming and vineyards contribute to the  economy. ✔✔
  • Employment in primary, secondary and tertiary sectors ✔✔
  • Close to Cape Town and market. ✔✔
  • Provides services for people travelling through the area. ✔✔
    [Any TWO] (2 x 2) (4) 

[25]

QUESTION 4: GEOGRAPHICAL INFORMATION SYSTEMS (GIS) 
4.1 During the 2008 floods, accessibility to the Oliphant’s River Valley was limited  to determine the extent of the damage. A GIS specialist used remote sensing  to access flooded areas along the Oliphant’s River Valley. 
4.1.1 Define the term remote sensing. 

  • Refers to the observation of the earth from a distance using satellites to  gather information without having direct contact with an area. ✔
    [Concept] (1 x 1) (1) 

4.1.2 State TWO reasons as to why the GIS specialist chose remote sensing. 

  • Data can be collected from inaccessible areas. ✔
  • Large areas can be captured as images. ✔
  • Can be made available at short notice especially in times of floods (disaster management). ✔
  • It can be used to track changes and development in an area over time. ✔
    [Any TWO] (2 x 1) (2) 

4.1.3 The GIS specialist also found that farming had a negative impact on the  Oliphant’s River. He/she suggested that buffering should take place  around the Oliphant’s River. Evaluate how this would prevent the  mismanagement of the river. 

  • Limits pollution from pesticides wastes been deposited. ✔✔
  • Leave areas around the river clear from farming expansion. ✔✔
  • Prevents riverbank erosion. ✔✔
  • Limits the negative effect on aquatic life of the river. ✔✔
    [Any TWO] (2 x 2) (4) 

4.2 Define the term spatial data. 

  • Refers to the location and shape of geographical features. ✔
    [Concept] (1 x 1) (1) 

4.3 Classify each of the following spatial objects in block E5, as a point, line or  polygon (area).  

  1. Non-perennial river / hiking trail: (line) ✔ 
  2. Spot height: (point) ✔
  3. Dam / cultivated lands: (polygon) ✔
    (3 x 1) (3)

4.4 The diagram below illustrates the concept of data integration found in block A10  on the topographic map. Study the diagram and answer the questions below: 

 

[Source: Examiner] 
4.4.1 Define the term data integration. 

  • Combining different types of data for decision-making. ✔
  • Linking information from a variety of sources. ✔
    [Concept] (1 x 1) (1) 

4.4.2 Mention ONE problem that was experienced with data integration as  shown in the diagram / figure prior to the introduction of GIS. 

  • Maps have different scales ✔
  • First map 1 : 30 000, second map 1 : 80 000, third map 1 : 60 000, fourth  map 1 : 50 000 [learner only needs to compare scales of two maps] ✔
    [Any ONE] (1 x 1) (1)

4.4.3 State TWO ways, in which data integration could have assisted the  farmer in making his farm at Kleinplaas, block E8, economically viable. 

  • Availability of water ✔
  • Fertility of soil ✔
  • Relief of the land (slope) ✔
  • Microclimate ✔
  • Access to infrastructure ✔
  • Access to transport ✔
    [Any ONE] (2 x 1) (2) 

[15] 
TOTAL: 75

GEOGRAPHY
GRADE 12
PAPER 1 
NSC PAST PAPERS AND MEMOS
SEPTEMBER 2017

MEMORANDUM 

SECTION A: CLIMATE, WEATHER AND GEOMORPHOLOGY 
QUESTION 1 
1.1

1.1.1 C (off shore) ✔ 
1.1.2 D (1012) ✔ 
1.1.3 B ✔ 
1.1.4 A (Winter) ✔ 
1.1.5 D (southwest) ✔ 
1.1.6 B (weaker) ✔ 
1.1.7 C (southeast) ✔ (7 x 1) (7)

1.2

1.2.1 Confluence ✔ 
1.2.2 Interfluve ✔ 
1.2.3 Water table ✔ 
1.2.4 River system ✔ 
1.2.5 Watershed ✔ 
1.2.6 Abstraction ✔ 
1.2.7 Stream orders ✔ 
1.2.8 Infiltration ✔ (8 x 1) (8) 

1.3

1.3.1

  • Warm moist air. ✔
  • Ocean temperatures above 26,5 °C. ✔ (2 x 1) (2) 

1.3.2

  1. A – Eye ✔
    B – Eye wall ✔ (2 x 1) (2)
  2. The air is descending at A, and rising/ascending at B. ✔✔  (1 x 2) (2) 
  3. A – High pressure in the upper layers of the atmosphere is causing some of the air to descend. ✔
    B – Convergence of air on the surface because of low  pressure is forcing the air to rise. ✔ (2 x 1) (2)

1.3.3
1.1.3

  •  1 mark for air pressure below 1 000 hPa
  • 1 mark for name
  • 1 mark for sign of the eye (3 x 1) (3) 

1.3.4

  • Fishing industry will suffer because the boats cannot go out to sea ✔✔
  • Harbour will be destroyed and repairs will have to be done ✔✔
  • Businesses and Industries will suffer severe losses ✔✔
  • Property and Infrastructure will be damaged ✔✔
  • Tourism industry will suffer loses ✔✔
  • Flooding will have a negative ripple effect on farming ✔✔
  • Destruction will lead to unemployment ✔✔
    (Any TWO) (2 x 2) (4)

1.4

1.4.1 Temperature inversion ✔ (1 x 1) (1) 
1.4.2

  • During clear, windless nights, air on the high grounds at the sides  of the valley, cools down ✔✔
    This is due to terrestrial radiation ✔✔
    Cold air drains down the slopes and accumulates at the valley  bottom, ✔✔ forcing warmer air to rise ✔✔
    The rising warm air forms a thermal belt midway up the valley ✔✔
    This causes a temperature inversion layer, where temperature  increases with height ✔✔ (Any TWO) (2 x 2) (4) 

1.4.3Slope A is in the shadow zone and therefore experience less  evaporation, with the moisture content of the soil higher  encouraging faster and lusher growth of vegetation. ✔✔ (1 x 2) (2) 
1.4.4 Reasons for the temperature at B 

  • Sunrays strike the area more slanted/obliquely, therefore less heating  during the day ✔✔
  • Larger area to be heated ✔✔
  • Sunrays penetrates a denser atmospheric layer causing more heat to  be absorbed or dispersed, before it reaches the slope, therefore less  heating ✔✔
  • Katabatic flow during the night causes cold air to accumulate on the  valley floor
  • Temperatures drop to below freezing point (0 °C) ✔✔
    Influence on crops 
  • Oranges are frost resistant, therefore they are grown on the valley  floor where cold air accumulates ✔✔
    (Any FOUR – BOTH REASONS FOR TEMPERATURE AND  INFLUENCE ON CROPS MUST BE MENTIONED.) (4 x 2) (8) 

1.5

1.5.1 The manner in which the streams are arranged in a particular drainage  basin. ✔ (Concept) (1 x 1) (1) 
1.5.2 

  1. – Rectangular ✔
  2. – Trellis ✔ (2 x 1) (2)

1.5.3

  1. – The mainstream and its tributaries have right angled bends ✔✔ 
  2. – The mainstream flows in a valley area and the tributaries join the  mainstream at right angles from a high lying area. ✔✔ (2 x 2) (4) 

1.5.4

  • Developed due to underlying horizontally layered igneous rocks which  has cracked or jointed. ✔✔
  • The cracks and joints are exposed to erosion, and the water from  stream/river will flow/incise along the cracks and joints. ✔✔ (2 x 2) (4) 

1.5.5 

  1. – Hard resistant rocks are causing less channels to be eroded  and fewer streams in the basin will result in low density. ✔✔
  2. – Softer less resistant rocks can easily be eroded as a result  more channels are created for stream flow and higher drainage  density is the result. ✔✔ (2 x 2) (4)

1.6

1.6.1 Upper course ✔ (1 x 1) (1)
1.6.2 Narrow ✔ (1 x 1) (1)
1.6.3

  1. Turbulent ✔ (1 x 1) (1)
  2. Resistant layer or outcrop is dipping upstream. ✔✔
    The bedrock upstream and downstream is less resistant and is  easily eroded, exposing the outcrop. ✔✔
    The slope created on the more resistant bedrock is causing  the stream water to flow faster. ✔✔
    (Any TWO) (2 x 2) (4) 

1.6.4

  • In the upper course of the river, there will be downward erosion and  deep, V-shaped valleys occurs. ✔✔
  • Temporary base levels of erosion like rapids and waterfalls will be  eroded away through headward erosion. ✔✔
  • In the middle course lateral erosion dominates. ✔✔
  • This will widen the river valley and will remove the remaining spurs  and other high lying areas. ✔✔
  • The lower course is dominated by deposition. ✔✔
  • The area is relatively flat in the lower course and this gentle gradient is maintained through deposition. ✔✔
    (Any FOUR) (4 x 2) (8)

[75]

QUESTION 2 
2.1

2.1.1 B to A ✔ 
2.1.2 B ✔ 
2.1.3 A ✔ 
2.1.4 A ✔ 
2.1.5 B ✔ 
2.1.6 A ✔ 
2.1.7 B ✔ 
2.1.8 A ✔ (8 x 1) (8)

2.2

2.2.1 Laminar ✔ 
2.2.2 Turbulent ✔ 
2.2.3 Turbulent ✔ 
2.2.4 Laminar ✔ 
2.2.5 Turbulent ✔ 
2.2.6 Turbulent ✔ 
2.2.7 Laminar ✔ (7 x 1) (7)

2.3

2.3.1 Winter ✔ (1 x 1) (1)
2.3.2 Mid-latitudes are low pressure systems ✔ (1 x 1) (1) 
2.3.3

  • From Friday to Monday heavy rain and cold conditions are  forecasted. ✔✔
  • As one mid latitude cyclone moves away from Cape Town another  approaches ✔✔
  • This results in continuous frontal conditions. ✔✔
    (Any TWO) (2 x 2) (4) 

2.3.4 
any 1 (Any ONE) 
(2 x 1) (2) 

2.3.5

  1. Backing ✔ (1 x 1) (1)
  2. The wind changes in an anti-clockwise direction in a system  where the air movement is clockwise. ✔✔ (1 x 2) (2)
  3. During Monday the warm sector is dominated by North westerly  winds driven by the westerly wind belt ✔✔
    As the cold front moves over the area is dominated by the cold  sector, with south westerly winds which is driven by the Polar  easterlies ✔✔ (2 x 2) (4) 

2.4

2.4.1 Direct short wave sunrays ✔ /Incoming solar radiation ✔ (CONCEPT) (1 x 1) (1) 
2.4.2 Urban areas receive 13–17% less insolation. ✔✔ (1 x 2) (2) 
2.4.3

  • Insolation is less in urban areas because of more smoke, dust and  pollution particles reflecting sunrays away from the surface. ✔✔
  • The dust particles also limits terrestrial radiation ✔✔
  • Artificial surfaces, artificial production of heat units, high buildings etc.  either absorbs or creates more heat over the urban areas. ✔✔
    (Any TWO) (2 x 2) (4) 

2.4.4 Higher precipitation 

  • Urban areas have more condensation nuclei (dust and pollution  particles) around which condensation occur. ✔✔
  • Greater thermal convection due to heat island effect is causing higher  rainfall. ✔✔
  • When the wind hits the tall buildings it rises, cools off and condense  to form clouds and eventually rainfall. ✔✔ 

Lower relative humidity 

  • Less vegetation over urban areas decreases the transpiration rate  ✔✔
  • Storm water drainage systems carries runoff away, therefore  evaporation decreases ✔✔
    (Any FOUR – MUST MAKE MENTION OF BOTH.) (4 x 2) (8)

2.5

2.5.1 Meander neck ✔ (1 x 1) (1) 
2.5.2

  1. X – Erosion ✔
    Y – Deposition ✔ (2 x 1) (2)
  2.                             
    • The river flows faster at the outer bank and is undercutting the  area ✔✔
    • Repetition of undercutting will eventually cause the top part of  the bank to tumble ✔✔
    • The bank will start to retreat ✔✔
      (Any TWO) (2 x 2) (4)

2.5.3

  • The river bend in STAGE 2 is very pronounced reducing the speed of  the river, hence causing water to build-up because of the delay and  will eventually overflow. ✔✔
  • A straighter channel in STAGE 4 will increase the speed of the river,  therefore no accumulation of water takes place. ✔✔ (2 x 2) (4) 

2.5.4

  • During heavy rainfall periods or flooding the river will cut through the  neck of the meander. ✔✔
  • Deposition next to the bank will eventually block off the meander  completely. ✔✔ (2 x 2) (4) 

2.6

2.6.1 

  1. – Wind gap ✔ 
  2. – Elbow of capture ✔ (2 x 1) (2)

2.6.2

  1. Watershed ✔ (1 x 1) (1)
  2. Due to headward erosion the watershed will be removed or  lowered ✔✔
    River at D will eventually cut through the watershed due to  headward erosion ✔✔
    (Any ONE) (1 x 2) (2) 

2.6.3 Transport routes can be constructed through the gap in the  mountain, which was the result of river capture. This will shorten the  distance to either side of the mountain. ✔✔ (1 x 2) (2) 
2.6.4

  • The environment will be negatively affected
  • Biodiversity will be destroyed ✔✔
  • Aquatic life will be reduced or will totally disappear ✔✔
  • Ecosystems disturbed ✔✔
  • Natural habitats will be destroyed ✔✔
  • The river will eventually dry up if extensive periods of low rainfall  occur ✔✔
  • The water table will be lowered ✔✔
    (Any FOUR) (4 x 2) (8)

[75]

QUESTION 3 
3.1

3.1.1 Ribbon development ✔ 
3.1.2 CBD ✔ 
3.1.3 Regional shopping centre ✔ 
3.1.4 Isolated shops ✔ 
3.1.5 CBD ✔ 
3.1.6 Outlying business centre ✔ 
3.1.7 Neighbourhood shopping centre ✔ (7 x 1) (7)

3.2

3.2.1 Gross Domestic Product ✔ 
3.2.2 Informal sector ✔ 
3.2.3 Beneficiation ✔ 
3.2.4 Footloose ✔ 
3.2.5 Import replacement ✔ 
3.2.6 Food security ✔ 
3.2.7 Decentralisation ✔ 
3.2.8 Foreign Exchange ✔ (8 x 1) (8) 

3.3

3.3.1 It is unifunctional because primary economic activities dominate ✔ (1 x 1) (1) 
3.3.2 Isolated / Dispersed ✔ (1 x 1) (1) 
3.3.3

  • Relief 
    Hilly and mountainous areas influenced the isolated pattern. ✔✔ 
  • Water availability 
    When water is readily and easy available it encourages dispersed  settlements. ✔✔ (2 x 2) (4) 

3.3.4

  • Its extensive because a large area is being used for farming ✔✔
    AND ANY ONE OF COMMERCIAL
    • It is commercial because outbuildings for the storage of either  equipment or products can be identified ✔✔
    • It is commercial because the farm area is divided into camps to reduce  soil erosion ✔✔
      [LEARNERS MUST REFER TO BOTH ASPECTS TO OBTAIN  MAXIMUM MARKS.] (2 x 2) (4) 

3.3.5

  • Farmer can use his machinery extensively ✔✔
  • The farmer does not need to share any of his equipment ✔✔
  • The farmer’s land is not fragmented ✔✔
  • The farmer decides on his own how he want to manage the farm ✔✔
  • Makes his own decisions ✔✔
    (Any TWO) (2 x 2) (4)

3.4

3.4.1 It is a situation on the public roads that occurs because of more  vehicles than the road can handle. ✔ (Concept) (1 x 1) (1) 
3.4.2

  • Separation between residence and workplace ✔
  • Commuter population
  • Overconcentration of activities in the CBD of cities ✔
  • Outdated street plan and pattern ✔
  • Rapid urbanisation ✔
  • Rural-urban migration ✔
    (Any TWO) (2 x 1) (2) 

3.4.3 If people used public transport it would decrease traffic congestion ✔✔ The driver expects others to use public transport when he himself is  not ✔✔ (1 x 2) (2) 
3.4.4

  1. Road rage / Frustration / Anger
    (ANY NEGATIVE EMOTION) (1 x 1) (1)
  2. Health problems like heart attacks, respiratory problems etc. may  occur. ✔✔
    Because of frustration more accidents may happen ✔✔
    Conflict between drivers may result in violence ✔✔
    (Any ONE) (1 x 2) (2) 

3.4.5

  • Building of ring roads around the congested area ✔✔
  • Synchronised robots ✔✔
  • One way streets ✔✔
  • Subsidise public transport so that more people are encouraged to use  it ✔✔
  • Designated lanes for busses and other public transport services to  encourage faster travelling ✔✔
  • Use of flexitime for businesses to encourage different start and closing  times to regulate the in- and outflow of traffic in the CBD ✔✔
  • Encourage lift clubs ✔✔
  • Park and ride schemes ✔✔
    (Any FOUR) (4 x 2) (8)

3.5

3.5.1

  1. 2014 ✔ (1 x 1) (1)
  2. Construction ✔ (1 x 1) (1)

3.5.2

  1. Decrease ✔ (1 x 1) (1)
  2. 1,8% ✔ (1 x 1) (1)
  3. Negative growth rate because both the primary and secondary  sectors experienced a huge (14%) negative growth rate ✔✔ compared to the 1,1% positive growth rate of the tertiary sector ✔✔ (2 x 2) (4)

3.5.3

  • There might have been more imports than exports ✔✔
  • Exports decreased because of decrease in primary and secondary  production ✔✔
    (Any ONE) (1 x 2) (2) 

3.5.4 Food prices will increase and will affect the poorest the most ✔✔ Increased unemployment because of job losses directly linked  to agriculture ✔✔ (2 x 2) (4)
3.6

3.6.1 Rooibos tea✔ (1 x 1) (1)
3.6.2

  1. Koeberg nuclear power plant (1 x 1) (1) 
  2.  Cheaper electricity is available if the industry is stationed near  Koeberg ✔✔
    Decreases production costs of goods ✔✔
    Koeberg’s nuclear energy provides alternative energy as coal  generated energy is expensive ✔✔
    (Any ONE) (1 x 2) (2) 

3.6.3

  • The cold Benguela current is causing upwelling, bringing nutrients to  the water surface ✔✔
  • Increases phytoplankton and zooplankton which attracts larger fish ✔✔
  • Fishing flourishes because of this upwelling ✔✔
  • Huge shoals pass along the Cape coast ✔✔
    (Any TWO) (2 x 2) (4) 

3.6.4

  • There is a lack or shortage of minerals ✔✔
  • The region is very far from the power stations of Mpumalanga,  making electricity very expensive despite Koeberg being in the  region ✔✔
  • Initial slow development caused lack of job opportunities for the fast  growing population ✔✔
  • High transport costs and the large distance to the Gauteng market  places disadvantages the SW Cape compared to the other industrial  regions ✔✔
  • The availability of fresh water can become a problem in the future ✔✔ The region has not attracted new industries because salaries are  generally lower, and the buying power of the growing population is  reduced ✔✔
  • Large, flat industrial sites are limited close to Cape Town, and  therefore land is expensive ✔✔
  • Many of the sites set aside for industrial use have been taken over by  informal settlements ✔✔
    (Any FOUR) (4 x 2) (8)

[75]

QUESTION 4 
4.1

4.1.1 F (Specialisation) ✔ 
4.1.2 K (Rural depopulation) ✔ 
4.1.3 J (Rural-urban migration) ✔ 
4.1.4 E (Mechanisation) ✔ 
4.1.5 G (Market orientated) ✔ 
4.1.6 H (Push factors) ✔ 
4.1.7 A (Fragmentation) ✔ 
4.1.8 C (Consolidation) ✔ (8 x 1) (8)

4.2

4.2.1 A ✔ 
4.2.2 B ✔ 
4.2.3 A ✔ 
4.2.4 A ✔ 
4.2.5 B ✔ 
4.2.6 B ✔ 
4.2.7 A ✔ (7 x 1) (7) 

4.3

4.3.1 The process of compensating people for the land they lost due to  forced removals ✔ (Concept) (1 x 1) (1) 
4.3.2

  • To redress the injustices of apartheid ✔
  • For national reconciliation and stability ✔
  • To promote economic growth ✔
  • To alleviate poverty ✔
    (Any TWO) (2 x 1) (2) 

4.3.3

  • Beneficiaries have been neglected by the government ✔
  • The people lack support to start ploughing ✔
  • The people do not have the finances ✔ (3 x 1) (3) 

4.3.4

  • People were given land simply to redress the injustices of past  policies, but no support to generate income and make an adequate  and meaningful living ✔✔ (1 x 2) (2)

4.3.5

  • Provide financial assistance to make sure that farmers can buy the  basic equipment ✔✔
  • Have workshops and training services available to make sure that  the skills in farming and business management is on par ✔✔
  • Help the farmers understand how the labour policies should be  implemented ✔✔
  • The development of local community forums so that the community  can discuss how land should be developed and maintained ✔✔
  • Provision of proper infrastructure like roads, electricity, computer  literacy etc. ✔✔
  • Government/NGO support ✔✔
    (Any FOUR) (4 x 2) (8)

4.4

4.4.1 Rural-urban fringe ✔ (1 x 1) (1)
4.4.2 Area in the photo has mixed functions of rural and urban ✔ (1 x 1) (1) 
4.4.3

  • Land is cheaper ✔
  • There is more space for further expansion ✔
  • Factory will be near to raw materials ✔
  • Close to labour force ✔
  • Close to transport networks ✔
    (Any TWO) (2 x 1) (2) 

4.4.4

  • The market is nearby so transport costs of products will  decrease ✔✔
  • The farmer has the advantages of the urban services, without paying  for it ✔✔
  • Demand/competition for land increases the land value ✔✔
    (Any TWO) (2 x 2) (4) 

4.4.5

  • Rural areas and life will be destroyed and could result in a decrease  in food production ✔✔
  • Biodiversity and aesthetic appeal will be destroyed ✔✔
  • The balance of climatic conditions may be destroyed ✔✔
  • Informal settlements may develop, which can increase the social  and economic problems in the area ✔✔
  • To prevent neighbouring towns from merging into one another ✔✔
  • To preserve the special character of historic rural life ✔✔
    (Any THREE) (3 x 2) (6) 

4.5
4.5.1 When raw materials are being transformed into finished goods on a  large scale/Add value to an article ✔ (Concept) (1 x 1) (1)
4.5.2 Secondary sector ✔ (1 x 1) (1) 
4.5.3

  • Employment creation ✔
  • Economic empowerment ✔
    (Any ONE) (1 x 1) (1)

4.5.4

  • Upgrading of skills and knowledge in the production of manufactured  goods ✔✔
  • More beneficiation of raw materials improving the quality of  manufactured goods ✔✔
  • Foreign exchange can be earned ✔✔
  • Creation of higher paid employment opportunities ✔✔
    (Any TWO) (2 x 2) (4) 

4.5.5 Labour supply 

  • South Africa consists of a very large unschooled labour force, with  very few entrepreneurs ✔✔
  • Production per worker in South Africa is very low ✔✔
  • Strikes and stay away actions for higher wages and salaries hinders  production ✔✔ 

International competition 

  • South Africa finds it very difficult to compete against countries like China, which produces low cost products ✔✔
  • South Africa in some instances has had to implement trade  restrictions in order to protect local markets, which hinders trade  relationships ✔✔
    (Any FOUR)
    [LEARNER MUST MENTION AT LEAST ONE FACT FROM  LABOUR SUPPLY OR INTERNATIONAL COMPETITION.] (4 x 2) (8) 

4.6

4.6.1 It is an integrated network of infrastructure within a geographical area  designated to stimulate economic development and growth ✔ (Concept) (1 x 1) (1)
4.6.2 Swaziland ✔ (1 x 1) (1) 
4.6.3

  • Maputo is the nearest export harbour to Johannesburg ✔
  • To strengthen relationships between South Africa and Mozambique ✔
    (Any ONE) (1 x 1) (1) 

4.6.4 The upgrading of infrastructure made it easier to visit major tourist  destinations along the corridor ✔✔ (1 x 2) (2) 
4.6.5

  • To rehabilitate the core infrastructure along the corridor ✔✔
  • To maximise investment with the corridor area ✔✔
  • To ensure development in previously disadvantaged communities ✔✔
  • To promote sustainable job creation for people living in underdeveloped areas along the corridor ✔✔
    [Any THREE] (3 x 2) (6)

4.6.6

  • A large bulk of the coal mined in Mpumalanga is exported to the  Maputo harbour ✔✔
  • The corridor passes through vast primary and industrial production  areas ✔✔
  • Mpumalanga has many international tourist destinations through  which the corridor passes ✔✔
  • The largest national conservation area, the National Kruger Park can  also be found along the corridor ✔✔
    (Any TWO) (2 x 2) (4)

[75] 
GRAND TOTAL: 225