BUSINESS STUDIES
GRADE 12 
NSC PAST PAPERS AND MEMOS
FEBRUARY/MARCH 2018

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

  1. This question paper consists of THREE sections and covers all FOUR 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 

    40 

    30 

           

    B: FIVE direct/indirect-type questions
    CHOICE: 
    Answer any THREE. 

    60 

    30 

    60 

    30 

    60 

    30 

    60 

    30 

    60 

    30 

           

    C: FOUR essay-type questions 
    CHOICE: 
    Answer any TWO.

    40 

    30 

    40 

    30 

    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.  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 D. 
1.1.1 The … makes provision for the establishment of the CCMA and  bargaining councils.  

  1. National Credit Act, 2005 (Act 34 of 2005)
  2. Consumer Protection Act, 2008 (Act 68 of 2008)
  3. Employment Equity Act, 1998 (Act 55 of 1998)
  4. Labour Relations Act, 1995 (Act 66 of 1995) 

1.1.2 Comfort Furniture specialises in the distribution of office furniture.  It operates in the … sector. 

  1. primary
  2. secondary
  3. tertiary
  4. public 

1.1.3 Clinton invested R2 000 in a savings account at ABC Bank at 8% simple interest per year. He will earn … interest after two years. 

  1. R160
  2. R320
  3. R2 160
  4. R2 320 

1.1.4 The government holds the majority of shares in this form of  ownership: 

  1. Sakhisizwe SOC Ltd
  2. Neil (Pty) Ltd
  3. Johns Ltd
  4. Zamani and Son 

1.1.5 Team members gather information and impressions about each other in this stage of team development: 

  1. Mourning/Adjourning
  2. Storming
  3. Norming
  4. Forming

1.1.6 The right to choose and practise a religion is an example of ... rights. 

  1. economic
  2. social
  3. consumer
  4. cultural 

1.1.7 Creative thinking in the workplace means … to solve business  problems. 

  1. using old ways
  2. generating innovative ideas 
  3. using routine thinking 
  4. allowing one employee  

1.1.8 The process of matching a new employee's skills and abilities with  the requirements of a job: 

  1. Selection
  2. Job analysis
  3. Placement
  4. Recruitment 

1.1.9 The … function ensures that accurate information is available to  management for decision-making. 

  1. financial
  2. administration
  3. public relations
  4. marketing 

1.1.10 The role of the interviewer is to … 

  1. know the job specification and job description.
  2. explain how he/she has dealt with past mistakes.
  3. know his/her strengths and weaknesses and be prepared to  discuss it. 
  4. ask the same candidates different questions. (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. 

dispute; National Skills; manager; fixed deposits; grievance;  leader; RSA Retail Savings Bonds; forced combinations; quality management; public relations  

1.2.1 The … Development Strategy guides the responsibilities of education  and training stakeholders in South Africa. 
1.2.2 Gert inspires his workers to do their best. He is therefore a good … 
1.2.3 An employee lodges a … through a formal, written complaint to senior  management. 
1.2.4 The National Treasury of South Africa offers … as a secure  investment option. 
1.2.5 Business operations meet the required standards through ... (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. 

COLUMN A 

COLUMN B

1.3.1 SETA 
1.3.2 Fronting 
1.3.3 Security 
1.3.4  Force-field analysis 
1.3.5  Involvement of all  employees/People-based  management
  1. an amount paid out due to loss of  life 
  2. keep staff informed of latest quality  standards
  3. solve business problems by  consulting experts individually
  4. ensures equity in the workplace
  5. an amount paid out below market  value
  6. appointing black people in  managerial positions 
  7. solve business problems by  considering the pros and cons
  8. misrepresentation of a company's  BEE status
  9. pays grants to businesses based on  their workplace skills plans
  10. keep shareholders satisfied with the  quality standard 

(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 List the THREE types of integration strategies. (3) 
2.2 Name THREE types of business environments and state the extent of control  businesses have over EACH environment. 
Redraw the table below in the ANSWER BOOK to answer this question.  (9) 

BUSINESS ENVIRONMENTS 

EXTENT OF CONTROL

(a)

 

(b)

 

(c) 

 

2.3 Explain the provisions of the Basic Conditions of Employment Act (BCEA), 1997 (Act 75 of 1997) in terms of: 
2.3.1 Sick leave  
2.3.2 Annual leave  
2.3.3 Maternity leave (3 x 2) (6)
2.4 Read the scenario below and answer the questions that follow.

BARKER INCORPORATED (BI) 

An employee of Barker Incorporated lost his hand due to an injury sustained  while performing his duties. The management of the company is refusing to  submit the claim to the Compensation Fund as they did not register the  employee with the commissioner of the Compensation Fund. 

2.4.1 Identify the Act that allows employees to claim for workplace injuries.  Motivate your answer by quoting from the scenario above. (3) 
2.4.2 Discuss the penalties that Barker Incorporated may face for not  complying with the Act identified in QUESTION 2.4.1. (6)
2.5 Read the scenario below and answer the questions that follow. 

ROYAL STAR HOTEL (RSH) 

The management of Royal Star Hotel want to improve their strategic  management process. They conducted an environmental scan and identified  the following challenges: 

  • Many workers are late for work.
  • The new Dawn Hotel charges lower prices for similar services. 
  • RSH is located in an area where the unemployment rate is high.  

2.5.1 List the THREE industrial analysis tools that could be applied during  the environmental scan. For EACH tool, quote ONE challenge from  the scenario above. (9)
2.5.2 Advise RSH on how to conduct their strategic management process. (6) 
2.6 Recommend ways in which the business may comply with the Employment  Equity Act (EEA), 1998 (Act 55 of 1998). (8) 
2.7 Evaluate the impact of the Skills Development Act (SDA), 1998 (Act 97 of 1998) on businesses. (10) [60] 

QUESTION 3: BUSINESS VENTURES  
3.1 Identify the type of visual aid presented in EACH case below:  
3.1.1 The financial manager is using slides to present financial reports to  stakeholders. 
3.1.2 The sales manager listed figures for November, December and  January in columns to indicate sales turnover. 
3.1.3 PSP Auditors are using web cameras on laptops and tablets to  conduct meetings with stakeholders at distant locations. (3 x 2) (6) 
3.2 Name FOUR factors that the presenter should consider during a presentation. (8) 
3.3 Explain the differences between the democratic leadership style and the  autocratic leadership style. (8) 
3.4 Elaborate on the meaning of compound interest. (4)
3.5 Read the statement below and answer the questions that follow. 

Insuring assets against theft, damage, fire and burglary is essential for every  business. Businesses should also plan carefully for risks which are not  insurable.  

3.5.1 Quote THREE examples of insurable risks from the scenario above. (3) 
3.5.2 Explain the term non-insurable risks and give ONE example of such a  risk. (3) 
3.5.3 Advise businesses on the importance of insurance. (8) 
3.6 Discuss THREE types of benefits covered by the Unemployment Insurance  Fund (UIF). (9) 
3.7 Read the scenario below and answer the questions that follow. 

MAPULE HAIRDRESSING SALON (MHS) 

Mapule Hairdressing Salon specialises in the latest unisex hair styles. Mapule  is the only owner of the business and is also responsible for all business risks. 

3.7.1 Identify the form of ownership of MHS. Motivate your answer by  quoting from the scenario above. (3) 
3.7.2 Explain how division of profits and legislation may influence the  success and/or failure of the form of ownership identified in  QUESTION 3.7.1. (8) [60] 

QUESTION 4: BUSINESS ROLES  
4.1 Name FOUR human rights in the workplace. (4) 
4.2 Indicate in EACH case below whether it represents an unethical or  unprofessional business practice. 
4.2.1 JJ Motors advertised a second-hand vehicle as new. 
4.2.2 The receptionist of Mano's Consulting is using the office telephone for  personal calls. 
4.2.3 The owner of Timmy Shuttles did not keep his promise to deal with the complaints of the clients. 
4.2.4 Getz Manufactures used some of the ideas of Fanon Manufactures in  the design of their new products. 
4.2.5 Lessing Engineers did not declare all their income to SARS. (5 x 2) (10)

4.3 Discuss the disadvantages of corporate social investment (CSI) for communities. (8) 
4.4 Explain the implications of equality, respect and dignity for businesses. (6)
4.5 Read the scenario below and answer the questions that follow. 

DORFS FINANCIAL SERVICES LTD (DFS) 

Dorfs Financial Services Ltd is failing to attract potential investors due  to the company's poor performance. The shareholders discovered from whistle-blowers that the company's poor performance is the result of a lack of  competency in the board of directors. The directors of DFS are denying this allegation. 

Redraw the table below in the ANSWER BOOK and then answer the  questions that follow. 

POOR CORPORATE  GOVERNANCE 

(4.5.1)

KING CODE PRINCIPLE 

(4.5.2)

APPLICATION  

(4.5.3)

(a)

   

(b)

   

4.5.1 Quote TWO examples of poor corporate governance from the  scenario above. (2) 
4.5.2 Identify the TWO King Code principles for good corporate governance  that DFS did not apply. (4) 
4.5.3 Advise DFS on how to apply each King Code principle identified in  QUESTION 4.5.2 to improve their corporate governance. (8) 
4.6 Evaluate the impact of the Delphi technique in solving business problems. (8) 
4.7 Suggest ways in which businesses could protect the environment and  promote human health in the workplace. (10) [60] 

QUESTION 5: BUSINESS OPERATIONS 
5.1 State FIVE aspects that should be included in an induction programme. (5) 
5.2 Discuss the purpose of an interview as an activity of the human resources  function. (6) 
5.3 Explain screening as part of the selection procedure. (4)
5.4 Read the scenario below and answer the questions that follow.

SMART CONSTRUCTION (SC) 

Gail and Chris are employees of Smart Construction. Gail is remunerated  according to the number of hours spent at work and Chris according to the  number of houses built. Gail's employment contract has recently been  terminated due to regular absence from work. 

5.4.1 Name the methods of remuneration applicable to Gail and Chris.  Motivate your answer by quoting from the scenario above. 
Redraw the table below in the ANSWER BOOK and then answer this  question.  (6) 

METHODS OF REMUNERATION 

MOTIVATION

Gail:

 

Chris:

 

5.4.2 Quote the reason for the termination of Gail's employment contract from the scenario above. (1)
5.4.3 Give TWO other reasons for terminating an employment contract. (4)
5.5 Distinguish between job description and job specification. (8)
5.6 Read the scenario below and answer the questions that follow. 

HUGO SHOE FACTORY (HSF) 

Hugo Shoe Factory bought raw materials from Simba Suppliers who did not  deliver on time. This resulted in delays in the manufacturing process. HSF is  concerned about their productivity levels.
Redraw the table below in the ANSWER BOOK and then answer the  questions that follow. 

BUSINESS FUNCTIONS 

(5.6.1)

QUALITY INDICATORS 

(5.6.2)

(a)

 

(b)

 

5.6.1 Identify TWO business functions that are directly affected by the  challenges in the scenario above. (4) 
5.6.2 Advise HFL on the quality indicators for EACH business function  identified in QUESTION 5.6.1. (8) 
5.7 Explain the differences between quality control and quality assurance. (8) 
5.8 Advise businesses on the role of quality circles in improving the quality of their products and services. (6) [60]

QUESTION 6: MISCELLANEOUS TOPICS 
BUSINESS ENVIRONMENTS 
6.1 Identify the relevant pillar of the Broad-Based Black Economic Empowerment  Act (BBBEE), 2003 (Act 53 of 2003) that Abil Bricks & Tiling Ltd complied with in EACH case below. 
6.1.1 Thandi and Tsego were promoted to senior positions.  
6.1.2 Previously disadvantaged employees were invited to buy shares in  the company. 
6.1.3 Employees are encouraged to attend training sessions regularly. 
6.1.4 The human resources manager ensures that everyone is given an  equal opportunity to apply for a vacancy. (4 x 2) (8) 
6.2 Explain the differences between market development and product  development. (8) 

BUSINESS VENTURES 
6.3 Discuss situational leadership as a management and leadership theory. (8)
6.4 Read the scenario below and answer the questions that follow.

KAY BED & BREAKFAST (KBB) 

Kay Bed & Breakfast insured their property for R600 000, but the property is  valued at R800 000. Fire destroyed part of the property and damages  amounted to R500 000. 

6.4.1 Identify the insurance clause that will be applied to KBB's claim for  damages. (2) 
6.4.2 Calculate the amount that the insurer will pay KBB for damages  incurred. (4) 

BUSINESS ROLES 
6.5 Name FOUR components of corporate social responsibility (CSR). (4) 
6.6 Explain the responsibilities of workers in promoting human health and safety  in the workplace. (4) 
6.7 Recommend ways in which businesses can contribute to the well-being of  their employees. (6)

BUSINESS OPERATIONS 
6.8 Give FOUR examples of fringe benefits in the workplace. (4)
6.9 Read the scenario below and answer the questions that follow. 

JULIA CLOTHING MANUFACTURERS (JCM) 

Tudo has started working at JCM as a forklift operator recently. He was  requested to read and sign the employment contract, which included his  remuneration and details on the termination of the contract. 

6.9.1 Quote TWO aspects from the scenario above, included in Tudo's  employment contract. (2) 
6.9.2 Advise JCM on any other TWO aspects that must be included in the  employment contract. (4) 
6.10 Explain how total quality management (TQM) may impact on the reduction of  the cost of quality. (6) [60] 

TOTAL SECTION B: 180

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

The Consumer Protection Act (CPA), 2008 (Act 68 of 2008) promotes consumer rights. The National Credit Act (NCA), 2005 (Act 34 of 2005) was introduced to ensure that  businesses address the needs of the consumer credit market. These Acts are  beneficial to both businesses and consumers.  

You are an expert in consumer legislation. Write an essay on the following aspects: 

  • Discuss FOUR consumer rights according to the Consumer Protection Act (CPA).
  • Explain the purpose of the National Credit Act (NCA).
  • Evaluate the impact of the NCA on businesses.
  • Recommend ways in which businesses can comply with the NCA. [40] 

QUESTION 8: BUSINESS VENTURES (INVESTMENT: SECURITIES)

MPHO CAR WASH 

Recently Mpho Car Wash made large profits due to excellent services rendered. Mpho,  the owner, wants to invest his surplus funds in unit trusts and buy shares which are  listed on the Johannesburg Security Exchange Ltd (JSE). 

Write an essay to guide Mpho on the following investment aspects:  

  • Discuss the functions of the JSE.
  • Explain the following factors that must be considered when making investment  decisions:
    • Return on investment 
    • Investment period
    • Liquidity
  • Describe FOUR types of shares.
  • Advise Mpho on the effectiveness of unit trusts as a good investment. [40]

QUESTION 9: BUSINESS ROLES (DIVERSITY AND CONFLICT MANAGEMENT) 

Businesses employ people who have different ways of doing things, which may lead to conflict. It is important that businesses identify diversity issues and find ways to deal  with them. Businesses should be well informed about handling conflict in the  workplace.  

Write an essay on the following aspects: 

  • Discuss the benefits of a diverse work force.
  • Suggest ways in which businesses may deal with language and age as diversity  issues in the workplace.
  • Explain the causes of conflict in the workplace.
  • Advise businesses on how they should handle conflict in the workplace. [40] 

QUESTION 10: BUSINESS OPERATIONS (QUALITY MANAGEMENT)

ZAMALEK LTD (ZL) 

Zamalek Ltd (ZL) lost customers due to the poor quality of their products.  Their management does not know how to implement total quality management (TQM)  to ensure the continuous provision of quality products and services to their customers. 

Consider the statement above and provide a detailed account on the following aspects: 

  • Explain the negative impact on ZL if TQM is poorly implemented.
  • Discuss the benefits of a good quality management system.
  • Evaluate the impact of the following TQM elements on ZL:
    • Total client/customer satisfaction 
    • Continuous skills development/Education and training
  • Advise ZL on how they should apply the PDCA model/cycle in order to improve the  quality of their products. [40] 

TOTAL SECTION C: 80 
GRAND TOTAL: 300

Last modified on Wednesday, 04 August 2021 13:52