Business Studies
June Common Exam 2013
GRADE 12 JUNE COMMON EXAM 2013
SUBJECT
:
BUSINESS STUDIES
CODE
:
BSTD
TASK
:
COMMON EXAMINATION
TIME
:
3 HOURS
MARKS
:
300
This paper consists of 15 pages
1
This assessment task consists of 5 pages
Business Studies
June Common Exam 2013
INSTRUCTIONS AND INFORMATION
Read the following instructions carefully before answering the questions.
1.
This paper consists of THREE sections.
SECTION A: COMPULSORY
SECTION B: Consists of THREE COMPULSORY questions.
SECTION C: Consists of THREE questions. Answer any TWO of the three
questions from this section.
2.
2
Read the instructions for each question carefully.
3.
Number the answers correctly according to the numbering system used in
this question paper.
4.
Begin the answer to EACH new question on a NEW PAGE, for example,
Question 1 – new page, Question 2- new page, etc.
5.
Non-programmable calculators may be used.
6.
Write neatly and legibly.
7.
Answers must be written in full sentences, except where stated otherwise.
8.
Use the mark allocated to each question to determine the length of an
answer.
9.
Use the table below as a guide to the time allocation when answering each
question:
Business Studies
QUESTION
1
2
3
4
5
6
7
3
June Common Exam 2013
SECTION
A-COMPULSORY
B-COMPULSORY
MARKS TIME
40
30
60
30
60
30
60
30
C- ESSAY
40
30
ANSWER TWO QUESTIONS
40
30
40
30
Business Studies
June Common Exam 2013
QUESTION 1: MULTIPLE-CHOICE QUESTION
1.1.
Various options are given as possible answers to each question. Choose the correct
answer and write only the letter (A - D) next to the question number (1.1.1.-1.1.10.) in
the ANSWER BOOK.
1.1.1. High crime rates prevent many businesses from extending their trading hours.
This challenge relates to the ____ component of the _____environment.
A. corporate culture, Micro
B. social, Macro
C. legal, Macro
D. opportunity, Market
1.1.2. A problem solving technique where the forces for and against a potential solution
are evaluated.
A. Delphi
B. Nominal group technique
C. Force-field analysis
D. Brainstorming
1.1.3. Crosse & Blackwell have added Chakalaka Sauce to their product range. Crosse
& Blackwell is an example of a business in the _______ sector.
A. primary
B. public
C. secondary
D. tertiary
1.1.4. A manager who makes decisions without consultation illustrates the ______
leadership style.
A. participative
B. democratic
C. autocratic
D.consultative
1.1.5. This form of ownership has members with a fixed percentage interest in the
business:
A. Partnership
B. Private Company
C. Close Corporation
D. Public Company
4
Business Studies
June Common Exam 2013
1.1.6. Which one of the following legislations in South Africa promotes inclusivity?
A. Skills Development Act
B. Black Economic Empowerment Act
C. Basic Conditions of Employment Act
D. Employment Equity Act
1.1.7. An example of a non-insurable risk would be:
A. changes in technology
B. hail damage
C. money-in-transit
D. dishonesty of Employees
1.1.8. Businesses must use natural resources sustainably. This refers to:
A. social Responsibility
B. pollution
C. environmental Responsibility
D. equity
1.1.9. A positive conflict in a business:
A. Is always destructive
B. Is unnecessary
C. Can destroy the business
D. always leads to solutions to business challenges
1.1.10 The return for an investment in shares:
A. interest
B. taxation
C. dividends
D. royalties
5
(10x2) (20)
Business Studies
1.2.
June Common Exam 2013
Provide the correct term for each of the following descriptions. Choose the correct
term from the words in brackets and write only the answer in your answer books.
1.2.1. A plan of action to achieve objectives of the business. (Goal/Strategy)
1.2.2. A method used by trade unions to influence government to intervene on
particular issues. (Networking/ Lobbying)
1.2.3. Persons responsible for the management of a company. (Promoters/
Directors)
1.2.4. A group of representatives made up of employees with the main aim of
giving input in decision making. (Task Team/ Workplace Forums)
1.2.5. A logical way to end conflict because the mediation process has
deadlocked. (Conciliation/ Arbitration)
(5x2) (10)
1.3.
Indicate whether the following statements are True or False. If the statement is
False, correct the underlined words to make it True.
1.3.1. Vodacom forms part of the tertiary sector.
1.3.2. The best graph to depict percentage distribution of sales over four
quarters would be a line graph.
1.3.3. Retrenchment is an example of an integration strategy.
1.3.4. The interest rate charged by the South African Reserve Bank to
commercial banks is the prime rate.
1.3.5. Ordinary shareholders have the last claim on assets of the company in the
event of liquidation.
(5x2) (10)
TOTAL SECTION A: 40
6
Business Studies
June Common Exam 2013
SECTION B (COMPULSORY)
QUESTION 2
2.1. Read the article below and answer the questions that follow.
MONDI GETS SOCIAL-NOT JUST ON PAPER
Corporate Social Responsibility at Mondi goes further than simply ensuring that all the
boxes on the scorecard are ticked. Mondi’s Food 4 Forests programme started in 2009
as part of an initiative to improve the health and safety of people working in the group’s
plantations.
“A study showed that a lot of the workers out in the forests are nutritionally deficient,”
said Ron Traill, CEO of Mondi South Africa.
“There are high HIV/Aids prevalence rates and nutritional deficiency just makes the
situation so much more dire. The Mondi board felt it was the right thing to do to at the
very least provide a hot meal with sufficient calorie intake for hard labour.”
The Food 4 Forests programme provides a daily meal to about 8 000 forestry workers.
“A recent survey has shown improvements in the general health and wellbeing of
workers and their families,” Traill said.
Adapted from an article in the Business Times, November 2012
2.1.1 Define the term Corporate Social Responsibility
(2)
2.1.2 Identify any TWO aims of Mondi’s Food 4 Forests programme.
(4
2.1.3. Explain TWO positive impacts of social responsibility programme on Mondi.
(4)
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Business Studies
June Common Exam 2013
2.1.4 Identify the socio-economic issue mentioned in the article.
(2)
2.1.5. Which business sector does forestry belong to?
(2)
2.1.6. The article mentions that the Food 4 Forests programme has led to improvement
in the “wellbeing of workers”. Name TWO other methods that Mondi could use to
improve the wellbeing of their workers.
(4)
2.1.7. Discuss any THREE pillars that Mondi could implement to ensure that they are
B.B.B.E.E. compliant.
2.2
The questions below (2.2.1.-2.2.4.) are based on the various legislations that
impact on South African businesses.
2.2.1 Explain any TWO ways in which the government can ensure successful
implementation of the Employment Equity Act.
(4)
2.2.2 Mention TWO ways in which the National Credit Act will impact positively on
businesses.
(4)
2.2.3 Which Act makes provision for collective bargaining?
(2)
2.2.4 Identify THREE groups of people that are considered previously disadvantaged
according to the Affirmative Action clause in the Employment Equity Act. (3)
2.3
Identify the type of integration strategy in each of the examples below.
2.3.1 A supermarket buys another supermarket within the city of Pietermaritzburg
(2)
2.3.2 A clothing manufacturer takes over the zip manufacturer that supplies them with
zips for their clothing.
(2)
2.3.3 A citrus farmer buys a farm stall.
8
(2)
Business Studies
2.4
June Common Exam 2013
Study the graph below which depicts the Sale of Heaters for 2012, and answer
the questions that follow.
QUANTITY SOLD (IN THOUSANDS)
SALE OF HEATERS:2012
45
40
35
30
25
20
15
10
5
0
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2.4.1 Identify the graph depicted above.
(2)
2.4.2 Which month showed the highest sales?
(2)
2.4.3 Calculate the total sales for 2012.
(2)
2.4.4 Calculate the average annual sales for 2012.
(2)
2.4.5 Outline THREE requirements of an effective business presentation.
(6)
[60]
9
Business Studies
June Common Exam 2013
QUESTION 3
3.1
Explain THREE reasons why businesses require insurance.
(6)
3.2
Study the following scenario regarding insurance and answer the questions that
follow.
Patrick Mokaba owns a retail outlet at Maponya Mall in Soweto. He sells imported
clothing. The business is insured against fire for R800 000 while the market value is R1
000 000. A fire breaks out and causes damages to the amount of R300 000.
3.2.1 Calculate the compensation that Patrick will receive from the insurance company.
(4)
3.2.2 What clause did you apply to arrive at your answer in Q 3.3.1.?
3.3
(2)
Patrick is not sure about a few matters regarding insurance and has approached
you to provide the meaning of the concepts described below:
3.3.1 Two examples of insurable risks
(4)
3.3.2 When taking out an insurance policy, the insured must be honest and truthful and
disclose all relevant facts.
(2)
3.3.3 Insurance which protects employers against losses due to dishonesty of
employees.
(2)
3.3.4 Using an insurance policy as security for a loan.
(2)
3.3.5. The sharing of a large risk among several insurance companies.
(2)
3.4
Explain how the following factors impact on the success or failure of a sole
proprietorship:
3.4.1 Capital
(4)
3.4.2. Management
(4)
3.5.
(10)
10
Mention FIVE steps involved in the process of problem solving.
Business Studies
June Common Exam 2013
3.6. Read the scenario below and answer the questions that follow:
Thandeka Tshabalala is from Lily Farm in Mpumalanga. Her understanding of English is
limited as it is not her home language. She recently applied to Densa Furnishers for
credit to purchase a new lounge suite. The manager of the store insisted that she fill out
the forms in English. She later was informed that her credit application was
unsuccessful due to incorrect information on her application form. She was advised to
seek credit elsewhere.
3.6.1 Which Thandeka’s right was violated in terms of the National Credit Act? (2)
3.6.2 List TWO other rights that Thandeka is entitled to according to the National
Credit Act.
(4)
3.7
Using examples, explain how businesses can address Human Rights, Inclusivity
and Environmental Issues.
(12)
[60]
11
Business Studies
June Common Exam 2013
QUESTION 4
4.1. Read the Case Study below and answer the questions that follow.
The Story of Paula’s Floral Design Business
Paula Peters always dreamed of owning her own floristry business. Her passion for
flowers began when she worked weekends and during school holidays for a local florist.
When she completed Grade 12, she decided to use her experience and skill to pursue
her dreams.
She entered a national flower arrangement competition and won. She decided to use
her winnings to start making flower arrangements on order for the local community.
Word quickly spread about her talent and unique flower arrangements. Pala always
purchased good quality flowers so that her customers would be assured that the flowers
would last longer. She marketed her business using social networks such as Facebook
and Blackberry Messenger Services as well as printing flyers.
Paula faces many challenges such as unsatisfied clients due to not always being able to
supply customers with their choice of flowers due to market availability. In the winter
months, flower prices increase and this creates cash flow problems for Paula. Many
people were also reluctant to order flowers from her as they felt that she was young and
therefore inexperienced. Although Paula is talented with flowers, she lacks knowledge
of bookkeeping and finances. High unemployment has also resulted in decreased
purchasing power, which negatively affects the demand for flowers as it is considered a
non-essential.
However, this spirited and determined young entrepreneur does not allow these
challenges to get her down. Paula has aspirations of joining catering companies and
entering the wedding planning industry. Her advice to other budding entrepreneurs is to
dream big and reach for the stars.
4.1.1 Identify THREE entrepreneurial qualities Paula possesses from the case study.
(6)
4.1.2 Identify any THREE success factors of Paula’s business.
12
(6)
Business Studies
June Common Exam 2013
4.1.3 What is Paula’s vision for her business?
(2)
4.1.4. Suggest TWO ways in which creative thinking is crucial for Paula’s type of
business.
(4)
4.1.5. Identify ONE challenge for each business environment in Paula’s Floral Design
and suggest a possible strategy for each of the challenges.
Answer the question according to the headings in the table below.
BUSINESS
ENVIRONMENT
CHALLENGE
SUGGESTED STRATEGY
FOR CHALLENGE
MICRO ENVIRONMENT
MARKET ENVIRONMENT
MACRO ENVIRONMENT
(12)
4.1.6 Since Paula is planning on joining the wedding planning industry and teamwork
is an essential part of wedding planning businesses, advice Paula on any THREE
factors that contribute to successful teams.
(6)
4.2.
Describe THREE causes of conflict in businesses.
(6)
4.3
Differentiate between Mediation and Arbitration.
(4)
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Business Studies
June Common Exam 2013
4.4Study the following cartoon and answer questions below.
4.4.1 Identify and explain the leadership style depicted in the cartoon above.
(6)
4.4.2 Suggest any TWO situations in which the above mentioned leadership style can
be used Provide an example of a situation when this style can be applied
effectively
(4)
4.5
Explain TWO functions of workplace forums.
(4)
[60]
TOTAL SECTION B: 180
14
Business Studies
June Common Exam 2013
SECTION C
ANSWER ANY TWO ESSAYS IN THIS SECTION.
QUESTION 5
The Skills Development Act has had a crucial role to play in alleviating unemployment in
South Africa.
Discuss the purposes and sources of funding for this Act, and the role that SETA’s play
in achieving its goals. Also include a discussion of the implications that this Act will have
on businesses.
[40]
QUESTION 6
Businesses, in their quest for profit, have engaged in many unethical practices which
impact negatively on their image and relationships with various stakeholders.
Discuss King’s Code of Best Practices for Corporate Governance and discuss the
issues that pose ethical challenges to businesses. Make ONE recommendation for the
improvement of each issue. Use examples where appropriate to enhance the quality of
your essay.
[40]
QUESTION 7
Taking steps towards wealth creation is crucial to ensure security for the future,
therefore more individuals and businesses are recognizing the wisdom behind
investing money for a better future.
Discuss the importance of investments and explain the factors that influence choice of
investments. Also discuss FOUR types of investments and evaluate the risk factor
attached to each type of investment.
[40]
15
TOTAL SECTION C:
80
GRAND TOTAL:
300