1
Western Cape Education Department
Directorate: Curriculum FET
BUSINESS STUDIES
REVISION BOOKLET
2023 TERM 1
Grade 10
This revision program is designed to assist you in revising the critical content and skills covered during the
1st term. The purpose is to prepare you to understand the key concepts and to provide you with an
opportunity to establish the required standard and the application of the knowledge necessary to succeed
in the Final NSC examination.
The revision program covers the following topics:
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Micro-environment
Market environment
Macro environment
Business Functions
Interrelationship between the environments
Concept of Quality
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INDEX PAGE
Contents
1
2
3
4
5
6
7
8
Page numbers
Micro-environment
Market environment
Macro environment
Business Functions
Interrelationship between the environments
Concept of Quality
Solutions to activities
Examination Tips
2–5
6–8
9 – 10
11 – 17
18 – 19
20 – 22
23
24
This revision booklet covers the SIX topics that were taught in Term 1.
The first topic we will focus on is:
1. MICRO-ENVIRONMENT
1.1
Meaning of micro-environment
Lower Order Question
Middle Order Question
Higher Order Question
1
2
3
Define/Elaborate on the meaning of the term micro-environment
The use of the action verb determines the responses required and the marking
principles that will be applied when assessing your responses.
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Define and Elaborate: Split marking will be applied. One mark will be awarded for the fact and an
additional mark for explanation of the fact
Let’s look at an example:
Elaborate on the meaning of the term micro-environment – Split marking will be applied
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Refers to the internal environment✓ in the organisation ✓
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Consists of the activities✓ within the business itself. ✓
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Management has complete control ✓of the micro-environment ✓
1.2
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Components of the micro-environment
Vision, mission, goals, and objectives
Organisational culture
Organisational resources
Management and leadership
Organisational structure
3
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Eight business functions
1.3
Indicate which of the following refers to Objectives; Goals; Vision or Mission statement of McDonald’s
CONCEPT
DESCRIPTION
EXAMPLE
1.3.1
The dream that the business
wants to achieve
McDonald's
To be the world's best quick service
restaurant
1.3.2
Vision
statement
Clear directives for how the
business intend to achieve its
vision
McDonald's
To provide outstanding quality, service,
cleanliness, and value, so that we make
every customer in every restaurant smile
1.3.3
Goals
Long-term plans of what the
business wants to achieve
McDonald's
To dominate the fast-food industry
globally within the next five years
1.3.4
Objectives
Short-term aims that the business
wants to meet to achieve its long-term
goals
McDonald's
To employ an additional 1 000 people by
the end of the month
You should be able to identify a vision/mission statement, goals, and objectives from given
scenarios.
You should be able to formulate/evaluate a vision/mission statement, goals, and objectives
of any business.
1.4 Purpose of organisational culture
Lower Order Question
Middle Order Question
Higher Order Question
1
2
3
Outline/Explain/Discuss the purpose of the organisational culture.
The use of the action verb determines the responses required and the marking principles
that will be applied when assessing your responses.
●
Outline: Full marks will be awarded for correct responses in full sentences.
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Explain/Discuss: Split marking will be applied
4
Let's look at an example:
Outline the purpose of the organisational culture.
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Refer to the … of the organization. ✓✓
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Organizational culture consists of different … of everyone working in the business. ✓✓
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Influence the way people in the organization interact with each other as well as with … ✓✓
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The organizational culture influences people's … and attitudes. ✓✓
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A positive culture helps staff to be … and productive. ✓✓
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A negative culture will … workers and make them feel unimportant which may cause conflict. ✓✓
1.5
Organisational resources
Lower Order Question
Middle Order Question
Higher Order Question
1
2
3
Name/State the organisational resources
Action verbs like “state” or “name” require responses that will only be awarded one mark
Let's look at an example:
Name the organisational resources
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Human resources
✓
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Physical resources
✓
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Financial resources
✓
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Technological resources ✓
Icon
1
2
Organisation Resource
5
3
4
You should be able to identify the organisational resources from given
statements/scenarios.
1.6
Importance of business organisational structure
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Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
The organisational structure shows the
different departments in the
organisation and how
they are organised. is also known as
an organogram
Outline/Explain/Describe\Discuss the purpose/importance of a
business organisational structure with specific reference to an
organogram.
Every business must be organized in a structure.
Each person's tasks and level of authority and responsibility must be indicated.
The structure should indicate the flow of assignments and the feedback.
The flow of communication in the business should be clearly indicated
The organizational structure is also called an organogram.
Example of a business organisational structure/organogram
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2. MARKET ENVIRONMENT
The next topic that this booklet covers relate to the market environment
2.1
Market environment
Lower Order Question
Middle Order Question
Higher Order Question
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2.2
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2.3
1
2
3
Define/Elaborate on the meaning of the market-environment.
It is the environment immediately … the business.
Market environment … the micro-environment.
Management has no control, but can … the environment
Components of the macro environment
Consumers
Suppliers
Intermediaries
Competitors
Other organisations / Civil Societies
o Non-government organisations [NGOs]
o Regulators
o Strategic allies
o Unions
Components of the market environment
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Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Consumers
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Suppliers
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Intermediarie
s
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Competitors
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Regulator
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Outline/Describe/Explain/Discuss the components of the market
environment
Customers / Buyers are the final users of the product /services.
A consumer who buys products or services from a business is that business’s
customer
Consumer market can be subdivided into markets for:
o Durable products, e.g., T.V sets.
o Semi-durable products, e.g., furniture
o Non-durable product, e.g., newspaper
o Services, e.g., repairs
Suppliers include factories / suppliers of goods / services with whom businesses
acquire / buy goods to run their businesses.
Individuals or agents who provide resources such as raw- materials, products, or
services.
For a business to survive in a competitive environment the supplier must provide
the right quantity at the right time, right price, and credit terms.
Intermediaries / Agents who help promote, sell, and distribute products to
consumers.
Bridge the gap between the manufacturer and the consumer.
Intermediaries bring the products and services within reach of the consumer.
Marketing intermediaries are wholesalers, retailers, spazas, agents, brokers, and
representatives.
Financial intermediaries are banks, insurance companies, etc.
Competitors who sell the same / similar products / services can have a greater
impact on the market or the business. e.g., Shoprite & Pick ‘n Pay
● Analysing competitors helps management to understand the strength,
weaknesses, and capabilities of competitors
Strategic
allies
A regulator is an organization with official power to control an activity and makes
sure it is done satisfactorily,
● Responsible for making rules that businesses in the various industries must adhere
to.
● Strategic allies refer to two or more businesses working together to enable them
to acquire expertise from another business that they do not have.
Trade unions
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Trade unions are the employee organizations that aim to improve the working
conditions of its members.
You should be able to identify the components of the market environment from
given scenarios/statements/case studies/cartoons/pictures and motivate your
answer
2.4
Examples of other organisations/civil society.
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Lower Order Question
Middle Order Question
Higher Order Question
1
2
3
Give examples of other organisations/civil society.
Explain/Outline examples of other organisations/civil society.
The question could be posed as either a lower order or a middle order
Question. Give examples of other organisations/civil society will be lower order
questions and Explain/Outline examples of other organisations/civil society.
will be a middle order question.
Unions
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NGOs
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Regulators
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Community
Based
Organisations
(CBO)
2.5
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Trade unions are … associations of employees formed to promote and
protect their interests through collective actions.
These are basically associations of workers formed with the aim of
protecting the workers against … by their employers and improving their
living conditions.
Examples: COSATU, FEDUSA and SADTU; SOLIDARITY
NGOs are non-profit organisations that do not … under the control of
government
Examples: Gift of the Givers; Save the Children South Africa; Read
Educational Trust
Organisations that ensure that the code of … and rules of fair business are
adhered to.
Example: NERSA [National Energy Regulator of South Africa]
These are organisations that operate within communities with the aim of
improving the … conditions within the communities.
These organisations are non-profit bodies, and their sole purpose is to
render a … to society.
SHAWCO; Haven Night Shelter; Domestic Animal Rescue Group
Opportunities and threats in a business context
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Opportunities in a
business context
Explain the meaning of opportunities and threats in a business
context and give practical examples of each.
● Opportunities are any factors in the external environment that will
contribute or is already contributing to the … of the business.
● Businesses need to constantly seek opportunities in their external
environment in order to remain ...
Examples:
o Decrease in taxes
o Closing of a competitor’s business
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o Decrease in interest rates
● Threats are any factors in the external environment that will stand in the
way or are already standing in the way of businesses achieving their ...
● Businesses have a challenge of constantly identifying threats in the
external environment and devising … to turn them into opportunities
otherwise they will not be successful.
Threats in a business
context
Examples:
o Increase in taxes
o New business offering similar product is established
o Increase in interest rates
You should be able to Identify opportunities and threats from given
scenarios/case studies/statements.
3. MACRO ENVIRONMENT
3.1 Meaning of macro environment
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Lower Order Question
1
Middle Order Question
2
Higher Order Question
3
Define/Elaborate on the meaning of the macro-environment
The macro environment refers to … of the business with everything … of the business.
The macro environment is also known as the … environment.
Business has … control over this environment.
3.2 Components of the macro environment
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Political
Economic environment
Social
Technological environment
Legal
Environmental
PESTLE
You should be able to identify the components of the macro environment from given
scenarios/statements/case studies/cartoons/pictures
3.3 Reasons why the macro environment can be a challenge to businesses
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Lower Order Question
1
Middle Order Question
2
Higher Order Question
3
Briefly explain the reasons why the macro environment can be a
challenge to businesses
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Businesses have … control over the macro environment.
This environment is always … and therefore leads to … for businesses.
● A change in one of the environments in the macro environment can affect any of the other
environments, which will have an … on businesses.
● An increase in interest rates, that is in the … environment will cause prices to rise, thus affecting
people’s ability to purchase basic goods and increase poverty levels in the … environment.
3.4.
Practical examples of each component/feature of the macro environment
Lower Order Question
1
Middle Order Question
2
Higher Order Question
3
Component of
macro environment
1 Political
2 Economic
3 Social
4 Technological
5 Legal
6 Environmental
3.5
Give practical examples of each component/feature of the macro
environment
Define practical examples of each component/feature of the macro
environment
Practical examples
Policies and laws made by the government; Strikes and protests;
Corruption
Interest rates; Changes in tax rates; Changes in exchange rates; Inflation
Unemployment; Crime; Gangsterism; Poverty
3D printing; Wireless communication; smartphone applications; Cloud
storage
BCEA; LRA; NCA; CPA; BBBEE
Pollution; Electric cars; Plastic taxes
Reasons why each component/feature poses a challenge to businesses.
Lower Order Question
1
Middle Order Question
2
Higher Order Question
3
Component of
macro
environment
1 Political
Briefly explain the reason why each component/feature poses a challenge
to businesses.
Challenge to businesses
● Changes in government often result in … changes that may affect
businesses.
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● Strikes/protests cause political … and delays in productivity.
2 Economic
● Rising costs due to inflation/petrol price could affect business … and
profitability.
● High interest rates mean that … will become more expensive.
● Fluctuations in foreign currency may restrict ...
3 Social
● Customers may not be able to afford products because of low … levels.
● Social issues affect … spending and business profitability.
4 Technological
● Businesses may not be able to keep up with/be aware of the … technology
● Employees may not be … to operate new technology
5 Legal
● NCA: The business must do … checks on clients, which may be costly and
time-consuming.
● CPA: The business must give … on the ingredients of the product.
6 Environmental
● Pollution poses a threat to the … of a business.
● Measures to dispose of … material may also be expensive.
4. BUSINESS FUNCTIONS
4.1
Differences between management and leadership.
Lower Order Question
1
Middle Order Question
2
Higher Order Question
3
MANAGEMENT
LEADERSHIP
Direct human behaviour
Influence human behaviour
Manage tasks to reach
targets.
Encourage new ideas
to increase
productivity.
People orientated
Task orientated
Management by planning /
organization
/ leadership / control
Instructional approach.
4.2
Outline/Explain/Discuss the differences between management and
leadership.
Lead by example / trust / respect.
Motivational / Inspiring approach
Eight business functions
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General Management
Purchasing
Production
Marketing
A business function refers to
the various activities
performed by business.
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Human resources
Public Relations
Administration
Financial
Use the first letter of the eight functions to make a phrase or sentence that will help
you remember them. This study technique is known as a mnemonic. For example:
Good People Play Music Honest People Admit Failure
4.3
The three levels of general management.
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Levels of management
Top level management
Explanation
● Oversees the activities of the other functions so that the business can
State/Outline/Explain/Discuss/Describe the three levels of general
management.
achieve its …
● Determine the … of the business.
● Make … decisions
Middle level management
● Responsible for specific … within the business.
● Take medium-term … decisions.
● Execute the organisational … in conformance with the organisation's
policies.
Lower-level management
● Focus on controlling and … the activities of employees
● Responsible for a high level of productivity, technical assistance, and
… employees.
● Take short-term … decisions
You should be able to identify the levels of management from given
scenarios/statements
4.4.
Management tasks
Lower Order Question
Middle Order Question
1
2
Explain/Discuss/Describe the management tasks of a business
13
Higher Order Question
1. Planning
3
2. Organising
3. Leading
4. Controlling
5. Risk management
Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you.
You should be able to identify the management tasks from given
scenarios/statements
4.5
Factors that influence the organisation structure
Lower Order Question
Middle Order Question
Higher Order Question
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4.6.
1
2
3
Name the factors that influence organisation structure
the size of the company
technology
resources,
strategic goals of the business.
Three types of organisational structures
Lower Order Question
Middle Order Question
Higher Order Question
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1
2
3
Name three types of organisational structures
Explain/Discuss/Describe three types of organisational structures
Functional
Project
Matrix structures
Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you.
4.7.
Activities of the administration function
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Activities of the
administration
Outline/Explain/Describe/Discuss the activities of the administration
function
Explanation
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function
Management of
information
● Accounting records, which can be used to draw up financial statements and
reports
● Keeping all business transactions up to date
● Budgets, which is a plan of estimated expenses and income for a specific period
● Collecting and classifying data
Handling of
information
● Information is collected from both outside and inside the business.
● Correct and reliable information should be available for meaningful decision
making and to run the business successfully.
Office practice
● Office practice refers to how the administrative staff should handle their duties.
● It covers matters such as proper filing of documents; telephone etiquette;
internet usage by staff
Information
technology (IT)
● IT is the use of electronic equipment to assist with various administrative tasks.
● Technology is used to communicate and handle information and is referred to as
ICT (information and communication technology).
You should be able to identify these activities of the administrative function from
given statements/ scenarios/case studies
4.8
Purpose of the financial function.
Lower Order Question
Middle Order Question
Higher Order Question
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4.9
1
2
3
Outline/Explain/Discuss the purpose of the financial function.
The financial function determines how much … the business needs.
Establishes the … for acquiring the capital.
Decides how to … the funds in the business.
Ensures that the business can generate enough … to cover the cost of raising capital.
Prepare … statements to present to the bank/investors to convince them that the business is financially
healthy.
Types and sources of financing
Lower Order Question
Middle Order Question
Higher Order Question
1. Bank loans
1
2
3
Define/Explain/Describe the types and sources of financing
2. Bank overdrafts
5. Receivable finance
3. Assets based loans
4. Grants
6. Angel funding
7. Venture capital
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Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you.
You should be able to identify the types and sources of financing from given scenarios/case
studies/statements/ pictures/cartoons
4.10
Differences between a fixed and working capital
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Explain the differences between fixed and working capital.
Complete the table below:
Fixed Capital
4.11
Working Capital
Explain the differences between own and borrowed capital
Complete the table below:
Own Capital
4.12
Borrowed Capital
Purpose of the purchasing function
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
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Outline/Explain/ Discuss the purpose of the purchasing function
Manage stock to ensure adequate … of stock to carry out business operations.
Continuously looking for the best/reputable …
Make regular contact with other business departments to determine their …
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4.13
Send … goods back to the suppliers and see to it that it is replaced.
Receive confirmation that all goods were according to … and the price invoiced
as the quoted price.
Negotiate the best possible term of … with suppliers.
Activities of the purchasing function
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Outline the activities of the purchasing function
Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you.
4.14
The purchasing procedure.
Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you..
4.15
Importance of stock Control.
Lower Order Question
1
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Middle Order Question
2
Higher Order Question
3
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4.16
Explain/Discuss the importance of stock control.
Enables businesses to determine the … of stock.
Businesses can check the cost and selling … of products
Ensure that there is enough stock to meet the normal … of customers.
Keep the correct levels of … on hand.
Keep a … of the cost prices and selling prices of stock
Identify … in the business when physical stock count is compared with the electronic stock
control system.
Purpose/Nature of the National Credit Act and the Consumer Protection Act.
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Outline/Explain/Describe/Discuss the purpose/nature of the National
Credit Act and the Consumer Protection Act.
Complete the table below:
National Credit Act
4.17
Consumer Protection Act
Impact (positives /negatives) of the CPA / NCA on businesses
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Discuss/ Analyse the impact (positives /negatives) of the CPA /NCA on
businesses
Evaluate the impact (positives /negatives) of the CPA on businesses
When you are required to answer questions on the impact you could either provide
only the advantages (positives); only disadvantages (negatives)/ or sufficient facts that
cover both the advantages (positives) and disadvantages (negatives).
Refer to the WCED 2023 Gr. 10 Learner Book or the Gr. 10 Business Studies textbook issued to you.
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4.18
Importance of the public relations
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
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4.19
Outline/Explain/Describe/Discuss the importance of the public relations
Businesses get … for promotional events and information through media.
Businesses could … community events.
Produce annual reports that … business activities and achievements.
Brochures can be used to distribute ...
Attend … events and talk about the business product.
External and internal public relations
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Differentiate/Distinguish between external and internal public relations
Complete the table below:
External public relations
4.20
Internal public relations
Methods of carrying out public relations
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Outline/Explain/Discuss the methods of carrying out public relations
1. Media
2. Direct contact
3. Brochures
5. Social Responsibility
6. Transit advertising
7. Use of telephone
4. Exhibitions
You should be able to identify methods of carrying out public relations from given
scenarios/case studies/statements/ pictures/cartoons
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5. INTERRELATIONSHIP BETWEEN THE ENVIRONMENTS
5.1
Relationship between the components of the micro-environment.
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Relationship
between
components
1. Business
functions
Explain/Describe the link/relationship between the features/components of
the micro-environment
Explanation
● The eight functions within the business depend on each to achieve their goals
and objectives.
● The general management function consults the administration function to
obtain the relevant information that it requires to run the affairs of the
business.
● The general management function coordinates all the other functions in the
business in an efficient and effective way to achieve the mission and vision of
the business.
● It constantly seeks information and advice from all the departmental heads to
make decisions and develop strategies for the business.
2. Departments
● The departments within the business depend on and influence each other
when they perform their duties and responsibilities.
● The production department will have to inform the purchasing department
about the type, quality, and quantity of raw materials they need to produce
the goods required.
● The marketing department also provides the production department with
feedback from customers so that the production department could produce
goods that will meet consumers expectations.
3. Employer and
employee
● The employer depends on the employees to perform certain duties and
responsibilities in return for a remuneration
● Employers also consult their employees when it comes to devising strategies to
achieve the goals and objectives of the business.
● Some employers provide their employees with education and training
resources to improve the skills of their workers.
5.2
Reasons why competition poses a challenge to businesses.
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Explain the reasons why competition poses a challenge to businesses.
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5.3
5.4
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Competition as one of the components of the market environment poses a challenge to businesses
because it is not within the … of the business.
Consumers will buy from the business where they get the most … for money
Businesses could find that they are unable to make a viable … when the demand is not high enough.
Businesses could find it hard to … itself from its competitors to gain a competitive advantage.
Interrelation between micro (internal) and market environments
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Explain the interrelation between micro (internal) and market environments
Business and consumers
● Goods and services are advertised to potential consumers.
● Market research is carried out on consumers to determine their
preferences and tastes.
● The public relations department ensures that customers remain loyal.
Business and suppliers
● Using the best supplier ensures the best quality at the best price.
● Business communicates with suppliers about the latest technology and
products.
● Business ensures that the suppliers have adequate stock to meet the
demand of customers.
● Businesses pay their suppliers as they are also their customers
Business and
intermediaries
● Business must maintain a good relationship with intermediaries.
● Intermediaries help the business to access consumers and they influence
sales.
● Businesses must access reliable transport and marketing for their
products.
Business and competitors
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Businesses must be aware of competitors’ products and prices.
Business must keep abreast of the latest trends.
Businesses must keep up to date with advertising and marketing trends.
Businesses must be creative to change competition into something
positive.
Relationship between micro, market, and macro environments
Lower Order Question
Middle Order Question
1
2
Higher Order Question
3
Explain/Discuss the relationship between micro, market, and macro
environments
There is constant interaction between the business and the elements present in all three business
environments.
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An entrepreneur uses the factors of production to produce goods and services.
An entrepreneur wants to satisfy the needs of consumers to make a profit.
During this process, the entrepreneur is exposed to challenges that of, among others, competitors, as
well as the government of.
Entrepreneurs must face labour crises, BEE claims and affirmative
action handle.
MICRO
It is a complicated process, and many influences are present.
A business has full control over the elements in the microenvironment.
A business cannot control or influence the elements in the macro
environment.
A business must adapt to challenges of the macro environment and be
able to formulate strategies to deal with these challenges.
The three business environments are interrelated.
MARKET
MACRO
6. CONCEPT OF QUALITY
At the end of this topic, learners should be able to:
•
Define/elaborate on the meaning of quality, quality control, and quality assurance
•
Explain/distinguish the difference between quality control and quality assurance
•
Outline/explain/discuss the importance of quality for businesses
•
Explain how quality relates to the following business functions:
o human resource’s function
o administration function
o financial function
o general management
•
Outline/explain/suggest quality indicators of the business function
•
Explain/discuss the correlation between management and the success of the business
Introduction
Quality is critical to satisfying customers and retaining their loyalty to ensure that they continue buying in the
future. Quality products make an important contribution to long-term revenue and profitability. The quality
indicators in a business function work together to contribute to the quality of the final product.
6.1 The meaning of quality
Quality refers to how goods/services satisfy customer’s needs and expectations continuously. It refers to the
characteristics of a product/service that meets the customer’s requirements. Quality guarantees the degree of
excellence to which a product or service meets the required needs of customers.
6.2 The meaning of quality control
Quality control involves the inspection of a final product to ensure that it meets the required standards. It includes
setting targets/measuring performance and taking corrective measures.
Raw materials/employees/machinery/workmanship/ production are checked to ensure that high quality standards
are maintained.
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6.3 Differences between quality control and quality assurance
6.4 Importance of quality for the business
• The quality enables businesses to have a good reputation and promotes brand awareness.
• Consumers associate the image of the business with the quality of the product.
• Quality products increase sales, profits, business growth and attracts prospective investors.
• The business gains goodwill and support from the community.
6.5 Quality in products
Methods used to indicate quality include the following:
• Trademarks: brand names, a slogan, or a logo used by manufacturers.
• Samples: a small sample product intended to show the customers how the real product will look.
• Grades: a particular level that is used to rank the quality of the product.
• Commercial Standards: The South African Bureau of Standards (SABS) approves commercial standards
of products.
Quality indicators of the business functions
6.6 Quality indicators of the human resources function
• The recruitment policy should attract the best candidates for available post within a business.
• HR should follow a fair and equitable selection process.
• A low rate of staff turnover in the business.
• A healthy relationship between employees and employers is maintained.
• Market-related salaries should be offered.
• Fair remuneration packages that are aligned to the industry should be provided.
6.7 Quality indicators of the administration function
• The administration function should collect data that can be used in decision-making and store it safely.
• All documentation should be kept neatly and orderly in a safe place.
• Vital information should be available to management when needed.
• The relevant information should be available to make a quick decision.
• The latest technology should be used.
• Complaints should be handled quickly and effectively.
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6.8 Quality indicators of the financial function
• The financial function has to obtained capital from the most suitable sources.
• They should negotiate a lower/better interest rate to keep financial costs as low as possible.
• They should draw a budget to ensure sufficient allocation of cash to prevent wastage.
• The financial records should be kept up to date at all times and should be accurate in order for the
business to be tax compliant.
• Accurate financial statements should be drawn up so that management can see the performance of
the business.
• Surplus funds should be invested to save for future projects/expansion/growth.
6.9 Quality indicators of the general management function
The general management function should develop and monitor effective strategic plans.
• They should:
– continuously learn and understand changes in the business environment.
– take responsibility for setting direction and prioritising responsibilities.
– communicate and share vision and values effectively.
– set an example of the expected behavior in terms of ethics and professionalism.
– ensure that employees have the necessary resource to do the work and allocate resources effectively.
6.10 The correlation between management and the success of a business in achieving its objectives,
strengths, and weaknesses
• Management plays a key role in making the correct decisions and motivating employees to be productive.
• Poor management can result in ineffective employees and loss of productivity.
• Businesses require ongoing decision-making and problem-solving.
• Problems that cannot be solved and decisions that are not made appropriately can lead to a decrease in
productivity
Consolidation Question:
QUESTION 1
1.1 Name any TWO methods used to indicate quality in products. (2)
1.2 Outline the quality indicators of the general management function. (4)
1.3 Read the scenario below and answer all questions that follow:
1.3.1 Identify FOUR business functions applicable to TBD. Motivate your answer by quoting from the
scenario above. (12)
Use the table below as a GUIDE to answering QUESTION 1.2.1
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QUESTION 2
2.1 Explain how the quality of performance of the following business functions can contribute to the
success of a business:
2.1.1 Human Resources (4)
2.1.2 Administrative
(4)
2.2 Discuss the correlation between management and the success of the business. (4)
[30]
7. SOLUTIONS TO ACTIVITIES
Choose answers from the following
1.3
Mission; Goals; Objectives; Vision
1.4
motivated; personality; beliefs; discourage; action’s; stakeholders
1.5
Physical resources; Technological resources; Human resources; Financial resources
2.1
surrounds; influence; outside
3.1
outside; no; interaction; external
3.3
social; impact; economic; changing; no; challenges;
3.5
loans; waste; consumer; sustainability; sales; skilled; information; imports; policy; instability;
income; latest; background;
4.3
departments; strategic; tactical; directing; objectives; vision; operational; plans; motivating;
4.8
sources; financial; income; capital; invest;
4.10
Finance the short-term capital needs of the business; Finance the short-term capital needs
of the business; Funds that pay for fixed assets; Funds that pays for day-to-day expenses;
Examples: capital markets & selling shares; Examples: money market & credit allowed by
suppliers
4.11
Liability for the business; Not a liability for the business; Obtained from financial institutions;
Owner provides capital; Return on capital is profit; Return on capital is paid in the form of
interest
4.12
suppliers; specification; needs; payment; damaged; levels;
4.15
price; record; demand; theft; stock; amount;
4.16
Promotes the development of the credit market; Encourages responsible buying; Promotes
responsible consumer behaviour; Strengthens a culture of consumer rights and
responsibilities; Ensures that the consumer have the information required to make informed
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decisions; Discourages reckless credit granting by credit providers; Empowers consumers to
take legal action is their rights are not upheld; Educate the consumer on making right
choices when applying for credit; Establishes national standards to protect consumers;
Provides guidelines within which different credit transactions must take place;
4.18
sponsor; networking; review; publicity; information;
4.19
Creates a good business image and awareness to employees inside the organization; Creates
a good business image and awareness to those outside the organization; Deals with
communication outside the business; Refer to those who work and have a role to play in an
organization;
5.2
differentiate; value; profit; control;
8. EXAMINATION TIPS
Section A-Type Questions
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Type of questions: Multiple-choice, matching, choosing the correct concept/terminology, etc. (short and
objective questions):
These types of questions require you to have a thorough knowledge of the subject and exercise logic and
good insight.
The recommended approach to multiple-choice questions is to read and analyse the statement carefully
Thereafter, study the alternatives carefully and eliminate the incorrect options.
Review the remaining possible answers and choose the correct one.
Section B-Type Questions
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Paragraph style, case studies and source-based questions – shorter type questions:
Read and understand the information presented.
Questions can be direct or indirect. These include source-based questions and case studies.
You must possess a broader/deeper understanding of the broad topics and sub- topics to be able to
motivate, evaluate, analyse, recommend, suggest, advise etc.
You will be required to provide their opinion, solve problems, and make recommendations related to the
question.
Questions range from easy to difficult in terms of cognitive levels and levels/degrees of difficulty.
Section C: Essay-type Questions
Examination Tips
Introduction
● Start with the word “Introduction” as a heading
● Write an opening statement that links to the
instructions of the essay question
● Give TWO meaningful facts to obtain maximum 2
marks [2 x 1=2]
● Do not repeat or use the words that are in the
preamble.
Body
● Use information in the bullet points below the scenario
as headings in the body
● Break up the information into logical parts, making use
of heading and subheadings
● The maximum marks obtained for the body = 32 marks
● Don’t repeat facts, get to the point Responses must be
bulleted and in full sentences
● Put your statements in context
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Conclusion
LASO
● Start with the word “conclusion” as a heading.
● Briefly summarise the main points and focus of the
essay
● End your essay with a meaningful fact – not
repeating what was said in the introduction or
body
● Give at least one meaningful closing statement [1x2=2]
● Write the words Introduction and Conclusion to obtain
full marks for layout.
● Write sub-headings that appear in the question paper
to obtain ONE mark for analysis.
● Ensure that you write as many correct facts as you can
that amount to at least 16 marks or more in the body
to obtain another ONE mark for analysis.
● Write only responses relevant to the questions asked
to obtain two marks for synthesis.
● Use at least TWO current examples to elaborate on
facts to obtain two marks for originality.