BUSINESS STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
FEBRUARY/MARCH 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 correctly 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 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 a guide for mark and time allocation when answering  each question. 

   SECTION	QUESTION	MARKS	TIME (minutes)
   A: Objective-type  questions  COMPULSORY	1	40	30
   B: FIVE direct/indirect-type  questions CHOICE   (Answer any THREE.)	2	60	30
   	3	60	30
   	4	60	30
   	5	60	30
   	6	60	30
   C: FOUR essay-type  questions  CHOICE   (Answer any TWO.)	7	40	30
   	8	40	30
   	9	40	30
   	10	40	30
   TOTAL		300	180

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

QUESTIONS 

SECTION A (COMPULSORY) 
QUESTION 1 
1.1 Various options are provided as possible answers to the following questions.  Write down the question number (1.1.1–1.1.10), choose the answer and make  a cross (X) over the letter (A–D) of your choice in the ANSWER BOOK. 

1.1.1 Employers pay 1% as a skills development levy if their annual salary  expense exceeds ...  

1.  R50 000.
2. R500 000.
3. R1 000 000. 
4. R100 000. 

1.1.2 The process whereby a business stops operating and sells all assets  to pay off debts: 

1. Retrenchment
2. Market development 
3. Divestiture 
4. Liquidation 

1.1.3 Which ONE of the following businesses can be classified under the  tertiary sector? 

1. Solly Training & Development CC
2. Trust Furniture Manufacturers
3. TRIX Coal Mine
4. Nandi Sugar Cane Growers 

1.1.4 A minimum of R1 000 must be invested in this form of investment: 

1. Unit trusts 
2. Shares 
3. Fixed deposit 
4. RSA Retail Savings Bonds 

1.1.5 Unlimited liability means … 

1. owners' personal assets are protected in the event that the  business becomes insolvent. 
2. owners stand to lose their personal assets in the event that the  business becomes insolvent. 
3. owners cannot lose more than what they have invested in the business in the event that the business becomes insolvent. 
4. owners are not entitled to share in the profits of the business.

1.1.6 Businesses apply this management and leadership theory to change,  develop and motivate employees over a short period of time: 

1. Situational theory
2. Trait theory 
3. Transformational theory 
4. Leaders and followers 

1.1.7 The right of employees to join trade unions is known as freedom of … 

1. association. 
2. expression. 
3. movement. 
4. speech. 

1.1.8 Businesses protect the environment through … 

1. recycling programmes. 
2. dumping toxic waste in rivers and dams. 
3. air pollution. 
4. non-compliance with environmental legislation. 

1.1.9 A human resources activity where the competency of the employee is  matched with his/her position: 

1. Interview 
2. Induction 
3. Placement 
4. Screening 

1.1.10 The production manager for BAC Beverages conducts regular  inspections on final goods to ensure that the required standards are  met. This process is known as quality … 

1. circles. 
2. planning. 
3. assurance. 
4. control. (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. Each word should only be used ONCE. 

1.2.1 … forces businesses to disclose more information about their  products and processes. 
1.2.2 … have authority because of their position in the company. 
1.2.3 … is usually applied to reduce the number of employees due to  restructuring in the business.  
1.2.4 … requires creative thinking skills to generate and evaluate alternative solutions. 
1.2.5 … salary determination is used to pay employees when agreed upon parts of a project are completed. (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, for example 1.3.6 K. 

(5 x 2) (10) 
TOTAL SECTION A: 40

SECTION B 
Answer ANY THREE 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 2 on a NEW page, QUESTION 3 on a NEW page, et cetera. 
QUESTION 2: BUSINESS ENVIRONMENTS 
2.1 Name the SIX components of the PESTLE analysis. (6) 
2.2 List THREE business environments and state the extent of control that  businesses have over each environment. (9) 
2.3 Explain the meaning of learnerships. (4)
2.4 Read the scenario below and answer the questions that follow. 

2.4.1 Identify the type of integration strategy that GSS applied in the  scenario above. Motivate your answer. (3) 
2.4.2 State TWO other integration strategies. (2) 
2.4.3 Give THREE reasons why businesses may use integration strategies. (6) 

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

2.5.1 Quote TWO ways from the scenario above in which QCF is not  complying with the National Credit Act (NCA), 2005 (Act 34 of 2005). (2) 
2.5.2 Recommend ways in which QCF can comply with this Act. (8) 

2.6 Discuss the impact of the Broad-Based Black Economic Empowerment  (BBBEE) Act, 2003 (Act 53 of 2003) (amended in 2013) on businesses. (10) 
2.7 Justify the effectiveness of the Employment Equity Act (EEA), 1998 (Act 55 of  1998) on businesses. (10)

[60]

QUESTION 3: BUSINESS VENTURES 
3.1 State FOUR factors to be considered when responding to questions at the  end of a presentation. (8) 
3.2 Identify the type of shares represented by EACH statement below. 

3.2.1 Shares are issued to existing shareholders as compensation for loss  of dividends. 
3.2.2 Shareholders receive their dividends before others can be paid out.
3.2.3 These shares are issued to shareholders who started the company. 
3.2.4 These shareholders may receive higher dividends when the company  has made large profits. (8) 

3.3 Outline the functions of the Johannesburg Securities Exchange Ltd (JSE). (8)
3.4 Elaborate on the importance of investing in fixed deposits. (3)
3.5 Tabulate the differences between compound and simple interest. (8)
3.6 Read the scenario below and answer the questions that follow. 

3.6.1 Name the leadership style that Ms Green is applying in the scenario  above. Motivate your answer. (3) 
3.6.2 Discuss the impact of Ms Green's leadership style identified in  QUESTION 3.6.1 on Baloyi Traders. (8) 
3.6.3 Advise Ms Green on the benefits of using the situational leadership  theory in the workplace. (6) 

3.7 Explain how the following factors can contribute to the success and/or failure  of a non-profit company: 

3.7.1 Capital (4) 
3.7.2 Management (4)

[60]

QUESTION 4: BUSINESS ROLES 
4.1 List FIVE economic rights of employees in the workplace. (5)
4.2 Explain how businesses should handle conflict in the workplace. (8) 
4.3 Identify the unethical or unprofessional business practice illustrated in each  of the following scenarios: 

4.3.1 Masakhane Stores charges more for the same goods in the village  than in the city. 
4.3.2 The director of KNZ Consulting uses the business credit card to pay for personal expenses. 
4.3.3 Employees of Zamu Attorneys spend more time on social networks during office hours than on their duties. (6) 

4.4 Describe how businesses can apply the brainstorming technique to solve their  business problems. (8) 
4.5 Discuss the following criteria for assessing successful team performance:

4.5.1 Interpersonal attitude and behaviour (2)
4.5.2 Communication (2) 

4.6 Elaborate on the importance of team dynamic theories in improving team  performance. (4) 
4.7 Discuss the benefits of diversity in the workplace. (8)
4.8 Read the scenario below and answer the questions that follow. 

List the THREE ways in which ND conduct business professionally,  responsibly and ethically. Quote from the scenario to support your answer.  Use the table below to present your answer. 

(9) 
4.9 Recommend ways in which businesses may create an environment that  promotes creative thinking in the workplace. (8)

[60]

QUESTION 5: BUSINESS OPERATIONS 
5.1 Name FIVE methods of external recruitment. (5)
5.2 State THREE aspects that should be included in the induction programme. (6)
5.3 Read the scenario below and answer the questions that follow. 

5.3.1 Identify the challenges with regard to Mr Du Preez's employment  contract. Make recommendations for improvement. (9) 
5.3.2 Outline any TWO other legal requirements of the employment  contract. (4) 

5.4 Discuss the selection procedure as one of the activities of the human  resources function. (8) 
5.5 Identify the total quality management (TQM) element illustrated in EACH  statement below. 

5.5.1 The management of JKM Fresh Fruits ensures that customer complaints are handled within 24 hours. 
5.5.2 The employees of Tumi's Consulting regularly attend training courses  on service delivery. 
5.5.3 Home Appliances Manufacturers uses modern production technology  to ensure their products are in line with the latest innovations. 
5.5.4 The managing director of Themba's Holiday Lodge allows the staff to  make inputs during strategic planning sessions. 
5.5.5 Duncan Computers can afford to employ two additional experts in  their Information Technology department. (10) 

5.6 Explain how total quality management (TQM) can reduce the cost of quality. (6)
5.7 Distinguish between quality performance and quality management. (4)
5.8 Suggest TWO quality indicators for EACH of the following business functions: 

5.8.1 Marketing function (4) 
5.8.2 Administration function (4)

[60]

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENTS 
6.1 Read the scenario below and answer the questions that follow.

6.1.1 Compile a SWOT analysis for DDS. (4) 
6.1.2 Suggest ONE strategy to handle each weakness and threat identified  in QUESTION 6.1.1. (4) 

6.2 Discuss the advantages of the Compensation for Occupational Injuries and  Diseases Act (COIDA), 1993 (Act 130 of 1993) (amended in 1997). (6) 

BUSINESS VENTURES 
6.3 Give TWO examples of non-verbal presentation methods. (2) 
6.4 Explain how return on investment and risk may influence the decision to invest  in shares. (4) 
6.5 Compare a partnership and a personal-liability company as forms of  ownership in terms of the following criteria: 

6.5.1 Continuity (4)
6.5.2 Taxation (4) BUSINESS ROLES 

6.6 Outline any FOUR problem-solving steps. (4)
6.7 Identify the King Code principle illustrated in EACH statement below. 

6.7.1 Rocky Traders publishes the value of their shares in their financial  reports. (2) 
6.7.2 The directors of John Shoes Ltd take responsibility for their decisions  and actions. (2) 

6.8 Mr Nel is employed as a sales representative. He is subjected to unfair  treatment in the workplace. Explain the correct procedure that he should  follow to deal with his grievance. (8)

BUSINESS OPERATIONS 
6.9 Read the scenario below and answer the questions that follow. 

6.9.1 Name TWO types of fringe benefits offered by CB. (2)
6.9.2 Discuss the advantages of fringe benefits for CB. (6) 

6.10 Analyse the negative impact on businesses if TQM is poorly implemented. (8)

[60] 
TOTAL SECTION B: 180

SECTION C 
Answer ANY TWO questions in this section. 
NOTE: Clearly indicate the QUESTION NUMBER of the chosen question.  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 ENVIRONMENTS (LEGISLATION)  

As a labour relations expert, provide a detailed report on the following aspects of the  Labour Relations Act: 

• Outline the rights of employers and employees according to the LRA.
• Discuss the purpose of the Labour Relations Act. 
• Evaluate the impact of this Act on businesses. 
• Recommend ways in which businesses can comply with the LRA. [40]

QUESTION 8: BUSINESS VENTURES (INSURANCE AND PRESENTATION) 

 Mr Funa needs details on the following aspects to be included in his presentation. He requires you to:  

• Distinguish between compulsory and non-compulsory insurance. Give TWO  practical examples of each. 
• Explain the importance of insurance for businesses. 
• Discuss THREE principles of insurance. 
• Advise him on how he can improve his next presentation. [40]

QUESTION 9: BUSINESS ROLES (SOCIAL RESPONSIBILITY AND  CORPORATE CITIZENSHIP) 

Support the above argument by referring to the following aspects: 

• Describe differences between CSR and CSI. 
• Evaluate the impact of CSI on businesses. 
• Explain the relationship between social responsibility and triple bottom line. 
• Recommend FIVE ways in which businesses can contribute time and effort to  advance the well-being of their employees. [40] 

QUESTION 10: BUSINESS OPERATIONS (HUMAN RESOURCES AND QUALITY  OF PERFORMANCE) 

Provide a detailed report on the following aspects: 

• Explain the recruitment procedure that SML should follow to fill the vacancy.
• Advise SML on the benefits of inducting the production manager. 
• Elaborate on the advantages of monitoring and evaluating SML's quality processes as a TQM element. 
• Recommend ways in which the general manager of SML can contribute to the quality of performance of the business. [40] 

TOTAL SECTION C: 80
GRAND TOTAL:  300