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. 

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.  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. 

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. 

(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. 

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. 

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. 

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.

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.

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. 

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. 

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. 

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. 

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  

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 

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  

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 

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